Agriculture is a key sector in the European Union (EU), contributing to food security, economic stability and rural livelihoods. Although the sector is significantly affected by climate change, it is also contributes approximately 10 % to total greenhouse gas (GHG) emissions in the EU, mainly through the release of methane and nitrous oxide. The application of digital technologies and tools represents a significant advance in the management of animal and crop production and can contribute to reducing greenhouse gas emissions in the sector.

Technological benefits for the environment and efficiency

Digital tools include a wide range of solutions such as precision farming technologies, Internet of Things (IoT) devices, remote sensing and artificial intelligence (AI). These technologies enable data-driven decision-making to optimize productivity and resource efficiency.

In crop production, the application of precision agriculture technologies contributes to a reduction in fuel consumption by 10–15 % and reduces the use of fertilizers and pesticides by 10–30 %. Specifically, the introduction variable application technology (VRT) for fertilization and irrigation has been shown to reduce fertilizer consumption by 10-40 % and pesticide use by up to 90 %. This directly leads to lower fossil fuel emissions and reduces nitrous oxide emissions.

In animal production, especially in dairy production, the introduction of precision livestock farming (PLF) technologies, such as automated milking systems and sensor-based health monitoring, is leading to increase production by 10 – 15 % and reducing feed waste by 5-10 %. For drought-prone regions such as Spain, the digitalization of irrigation is key. Smart irrigation systems integrating soil moisture sensors and climate prediction tools results in water savings of an average of 20–40 %.

Challenges, inequality and the risk of a digital divide

The adoption of digital technologies in the EU is uneven and faces social and economic barriers. There is a significant digital divide, with northern and western European countries showing higher adoption rates than southern and eastern countries.

The largest farms with higher capital and economies of scale benefit the most from digitalization. For small farmers High investment costs are a barrier, with many unable to economically justify the investment due to limited land area and longer return on investment (ROI) times.

Digitalization is also transforming rural labor markets. While robotics and automated machines are replacing low-skilled labor, it is also growing. demand for hybrid skills, which combine analog agricultural knowledge with digital prowess. This trend is driving a bifurcation of the labor market, where highly skilled workers benefit from higher wages while low-skilled workers face job losses.

The key economic risk is market consolidation in the agri-tech sector. A handful of dominant firms can gain influence over digital services and hardware, locking farmers into closed ecosystems („vendor lock-in“). Centralization of farm data by enterprise platforms compromises farmers’ control over their own operational information.

Roadmap for inclusive transformation

Targeted policy interventions are needed to ensure that digitalisation is inclusive and supports sustainability. EU case studies show important lessons:

• Estonia demonstrates that a strong e-government system and the principle of „"once and for all"“ (once-only) significantly reduce bureaucracy and build farmers' trust in technology.
• IN Spain The key was a combination of strong political commitment and public investment, especially in modernizing irrigation systems.
• IN Germany it turned out that digitalization should be a means, not an end, and that economic, environmental and social benefits go hand in hand.

Policies need to support access to digital infrastructure in rural areas and strengthen targeted schemes for small and young farmers. It is also crucial creating robust data management frameworks, which protect farmers' rights and ensure fair and transparent use of agricultural data, thereby increasing trust in digital solutions. Digitalisation in agriculture thus offers huge potential to reduce GHG emissions and increase efficiency, but only if managed inclusively and with an emphasis on balanced environmental, social and economic pillars of sustainability. JRi