Investment rate in French agriculture rises sharply

The investment rate in French agriculture averaged 37.5% of the sector's value added between 2020 and 2024, according to a study by the National Institute of Statistics and Economic Studies (Insee). This is a significant increase from 23.4% between 1990 and 1994, and it exceeds the investment rate in all non-financial enterprises, which rose from 19.0% to 21.7% over the same period.

Agricultural machinery dominates investment

Agricultural machinery accounted for 64.5% of the sector's investment between 2020 and 2024, surpassing buildings, which made up 20.8%. Specialized machines, such as harvesting and soil preparation equipment, represented 41.0% of gross fixed capital formation (GFCF), compared to 23.5% for tractors and other vehicles.

Information technology grows, but slowly

Information technology has spread more rapidly in agriculture, but its share in investment remains small. Computer hardware accounts for 0.7% of investment, and software for 0.2%. The low share is partly due to falling computer prices. Meanwhile, investment in plantings and breeding stock has declined by 34.3% in volume over thirty years.

Agricultural employment drops sharply

Agricultural employment in France has decreased by 50.9% between 1990 and 2024, reaching 696,100 full-time equivalents. Non-salaried employment dropped by 65.9%, while salaried employment decreased by only 8.8%. Salaried workers now make up 44.4% of agricultural employment, compared to 20.0% in 1990.

Fewer farms, more investment per worker

The number of farms in Metropolitan France has dropped from 924,000 in 1990 to 349,600 in 2023. Investment per non-salaried employee has increased by 221.7% in real terms over thirty years, outpacing the 124.6% increase in gross profit per non-salaried employee. This trend reflects the modernization and consolidation of farms.

Price increases drive investment growth

Over thirty years, the increase in agricultural investments in value is mainly due to price rises (+62.3%), rather than volume growth (+16.5%). Building prices have risen by 81.9%, and tractor prices by 61.4%. Despite slower volume growth, capital renewal remains a key focus for farms.

Recent data shows a decline in average farm investments

Despite long-term growth in agricultural investment, recent data from the statistical service of the Ministry of Agriculture shows a decline in average investments per farm in 2024, especially in arable crops and viticulture. This contrasts with the Insee study, which looks at long-term trends, while Agreste focuses on the economic performance of individual farms.