One of the greatest opportunities and threats of our time is artificial intelligence (AI) and its appropriate use. Most sectors already use digital solutions and AI-based tools, but their actual widespread adoption is still pending. In agriculture, a number of tools have been in use for several years now that not only address labour shortages with their digital solutions, but also detect plant and animal diseases with their preventive signals, while increasing the production capacity of farms. In our analysis, we review the technological readiness of Hungarian agriculture and also take a look at the two largest agricultural countries in the EU, Germany and France.
Why is it worth investing in digital solutions in agriculture?
Many people still view agriculture as a sector that uses medieval tools. Despite this, a significant proportion of farms are increasingly using innovative solutions in their work that not only facilitate but also increase production and its results. Investing in infrastructure, technology and knowledge can create a flexible and productive agricultural sector. Capital accumulation is essential for this, as it enables developments to be made towards sustainable agriculture. With adequate capital accumulation, productivity can be increased, new technologies can be introduced, greater resilience can be developed, and economic results can also improve. However, for this to happen, the farm in question must have sufficient capital, so the level of development is fundamentally determined by the amount of resources available (Serra, et.al., 2009; Sckokai – Moro, 2009; Femenia et al., 2021). In addition to the farms themselves, state assistance is also necessary to achieve this, as smaller farms can only obtain the financing required for equipment development with such assistance.
The end result is beneficial for both parties (the farm and the state), as the increase in agricultural output has a positive effect on the entire national economy, and technological developments can improve the country’s development indicators. Developments also increase competitiveness, thus having a significant impact not only on internal economic performance but also on the regional or global position of the country concerned (Davydenko et al., 2024). For this reason, the development of agriculture requires that the agricultural policies of individual countries create mechanisms that provide optimal conditions for financing investments. This includes investment incentives that improve the economic performance of farms (Czubak – Pawłowski, 2020; Pawłowski, et.al., 2021.; Czubak, et.al., 2021), as well as low-interest loans (Bojnec – Fertő, 2016).
Research to date shows that farms can improve their performance in almost all areas by using precision farming and digital technology solutions. According to calculations by Papadopoulos et al., precision farming technologies such as variable rate technology (VRT) and remote sensing monitoring (RSM) can result in significant yield increases. For example, the use of VRT can increase yields by up to 62% (Papadopoulos, et.al., 2024). By optimising the use of fertilisers, pesticides and water, precision farming can significantly reduce production costs. For instance, VRT has resulted in a 60% reduction in fertiliser use (Papadopoulos, et.al., 2024).
Another advantage of precision farming is that it enables efficient use of water, reducing water consumption by 20-50% and optimising other resources such as fuel and labour (Farmonaut, 2025). Labour productivity is 3.5 times higher on farms that use precision methods, which can also reduce farmers’ additional production costs (Zhang-Zhu, 2025). According to a study examining agricultural investments in Poland, farms that made larger investments in modernising their equipment saw their profitability triple over a 13-year period (Czubak – Pawłowski, 2024). On the other hand, the research also found that the lack of investment led to a loss of capital in equipment (-6.7% per year), which also affected land sales (-1.5% per year) (Czubak – Pawłowski, 2024). Overall, crop yields could increase by up to 62% and the amount of inputs used (fertilisers, pesticides, water) could be reduced by 80%, while profitability and sustainability could be significantly improved through the use of digital technologies and precision farming.
According to a report by the Food and Agricultural Organization (FAO), between 2016 and 2020, global gross fixed capital formation (GFCF) in agriculture, forestry and fisheries grew by 2.3% per year, from USD 526 billion to USD 577 billion, calculated at constant 2015 prices (FAO, 2021). Among the regions, Asia grew the fastest (an average of +3.1 per cent per year), followed by Europe (+2.7 per cent), the Americas (+1.2 per cent) and Africa (+0.3 per cent); Oceania experienced a decline (FAO, 2021). The report also points out that the global net capital stock of agriculture, forestry and fisheries reached USD 6.4 trillion in 2020, compared to USD 3.7 trillion in 2000 (FAO, 2021). In two decades, the global net capital stock of the sector has thus nearly doubled, which supports the factors already identified.
Technological readiness in Hungarian agriculture – causes and results
According to data from the Hungarian Central Statistical Office (KSH), approximately 92,400 people were employed in the agricultural sector (agriculture, forestry and fisheries combined) in Hungary in 2024 (KSH, 2025a). This accounted for 2.4% of total Hungarian employment in that year. However, this high figure does not mean that the sector is not affected by labour shortages: according to an earlier survey, although the number of people in employment in Hungary increased by 4.1% between 2015 and 2020, annual labour utilisation in certain sectors of agriculture fell by 24% during the same period (AKI, 2020). Data from KSH show similar results: in 2024, the annual labour unit in agricultural labour utilisation was 9.7% lower than in 2023 (KSH, 2025b).
Due to labour shortages, many employers hire guest workers or seasonal employees in order to prevent a radical decline in production capacity. However, this is not a stable solution in the long term, as the number of workers who can be hired for each season is often unpredictable, their professional knowledge is not always sufficient, and the additional costs of employing them (accommodation, meals, travel expenses, etc.) place an additional burden on farmers.
It is therefore no coincidence that, due to labour shortages and the negative consequences of climate change, many countries are already using technological solutions that are capable of maintaining production at the appropriate level without human labour, even in the face of adverse weather conditions. Below, we briefly review the state of technological development in Hungary from an agricultural perspective.
Technological and digital solutions have been present in agriculture for a relatively long time. In recent years, the number of farms in Hungary that have implemented some form of digital or innovative solution in agricultural production has gradually increased. At the same time, there is still a significant gap compared to the level of development in Central and Western European countries. Since 2013, the proportion of farms with agricultural machinery has increased significantly (KSH, 2023). The proportion of farms using their own soil cultivation machinery has increased the most (by 21 percentage points) compared to 2013. In 2023, 40% of farms used their own tractors, totalling 145,000 units, which is 25% higher than the tractor stock 10 years ago (KSH, 2023).
Figure 1: Proportion of farms with agricultural machinery in Hungary in 2013 and 2023 (expressed in percentage). Source of data: KSH, Agrárium, 2023.
In addition to traditional agricultural machinery, more and more farms are also introducing precision farming tools and technologies. The use of digital tools, machines and equipment is advancing not only in order to eliminate labour shortages, but also to facilitate work processes and reduce costs. In 2023, 9.8% of Hungarian farms used precision farming tools (KSH, 2023). The most commonly used tool is line guidance or automatic steering, which was present in 5.4% of farms (KSH, 2023). This figure for 2023 is 1.4 percentage points higher than the data from three years earlier, in 2020. Between 2020 and 2023, there was an increase in the use of differentiated work operations (4.5%), robots (1.8%) and fleet tracking (2.1%) (KSH, 2023). The use of drones decreased, and the proportion of farms using yield mapping and crop condition assessment also declined compared to 2020 (KSH, 2023). According to KSH’s survey, the tools and technologies used for precision farming were primarily used by arable and mixed crop farms in 2023 (KSH, 2023).
The census data collected by the KSH also confirm that although technological development is gradually taking place in Hungarian agriculture, the use of precision tools is still relatively low-intensity. The reasons for this are manifold: 55% of the farms participating in the 2023 survey believed that they did not need such tools for production (KSH, 2023). According to 13% of respondents, they do not use the tools for farming because of their high price. This reveals two directions that significantly influence and determine the extent to which farms are able to use precision tools. However, the survey also highlights that since 2020, it has become less common (decreased by 25 percentage points) for farms not to use digital technologies because they do not need them for production, while the high price of digital tools has become an increasingly significant obstacle (increased by 7.3 percentage points).
Figure 2: What are teh reasons why farms that do not use precision tools do not use digital technology in Hungary? (expressed as a percentage). Source of data: KSH, Agrárium, 2023, final.
In addition to the reasons already presented, since 2020 there has been a decrease in the proportion of those who do not use such tools for farming due to a lack of knowledge. In 2020, 14.4% of respondents lacked the knowledge to use precision tools, while in 2023 this proportion fell to 9.5% (KSH, 2023). At the same time, the proportion of those who would use training and consulting but have limited access to it either for themselves or in their location increased by 0.9 percentage points (KSH, 2023). This also points to the fact that the willingness to use such tools is growing, but education and consulting are also in greater demand.
The data in Figure 2 also confirm that, among Hungarian farms, it is mainly crop production farms, and arable and mixed crop farms in particular, that use precision tools at the highest rate. The other major agricultural sector, animal husbandry, uses such equipment to a lesser extent. Among the machines and equipment used for animal husbandry, the most widespread were feed grinders and feed mixers, which were used by 32% of livestock farms in 2023 (KSH, 2023). 3.7% of livestock farms had an automatic feeding system, 2.0% had automated temperature control in their barns, while the use of air purification equipment, milking robots and other robots (e.g. feed distributors, manure spreaders, etc.) amounted to less than 1% (KSH, 2023).
In addition to the tools presented, farms using precision farming and automated animal husbandry must also store and use administrative tasks and data collection with the help of specific programmes and software. 81% of farms collect data generated during farming in some form, 70% of them on paper, while 13% use general software (e.g. Excel, Access), 2.0% use specialised software, and 19% have an accountant perform this task (KSH, 2023). The collection of data generated during farming was most common in farms specialising in arable crop production in 2023, with 92% collecting data in some form, compared to only 53% of specialised plantation production farms (KSH, 2023). The use of management information systems remains low: 8.7% of the farms surveyed used this type of system (KSH, 2023). Even fewer farms, 2.2%, use enterprise management or administrative software in their work, and only 1.6% use decision support software (KSH, 2023).
Overall, over the past decade, there has been an increase in agricultural digitalisation and the number of precision farms, but there is still much room for improvement in Hungarian agriculture. The biggest deterrent to the use of more advanced technologies is the high price of the equipment and the fact that many farms have not properly assessed the possibilities for digitalisation.
International overview – digitalisation solutions on French and German farms
Among the European Union member states, French and German production values are outstanding. France and Germany account for 35-40% of the EU’s average grain production, so the technological solutions used in these countries can have an impact not only on their own internal production, but also on the performance of the entire community.
Figure 3: Grain harvest in Germany and France compared to EU 27 total data for 2020-2023 (in 1,000 tonnes). Source of data: Eurostat, 2025.
In addition to crop production, German and French farms also play a prominent role in the EU 27 in the production of dairy and animal products. In 2023, nearly 40% of beef, 23.3% of poultry and more than 30% of pork came from these two countries.
Figure 4: Share of German and French meat production in the EU in 2023 (expressed in percentage). Source of data: Eurostat, 2024.
The ownership structure in both the French and German economies is dominated by family farms, which means their production is small-scale. French and German crop and livestock production data are therefore remarkable because they are mainly generated by small farms. For this reason, the technical equipment of farms is of particular importance, as they operate at high capacity with a relatively small workforce.
According to a large-scale survey, 47% of farms in Germany explored the use of artificial intelligence-based solutions in 2024 (DLG, 2024). In 2022, one in ten farms (9% of the farms surveyed) already used this type of technology, and 38% planned to introduce it in the near future (DLG, 2024). The survey also looked at the extent to which the size of the farms can influence the demand for new technologies. According to the survey, 27% of farms between 20 and 49 hectares use or plan to use such solutions (DLG, 2024). For farms between 50 and 99 hectares, the proportion is 38%, and for farms of 99 hectares or more, it is 52% (DLG, 2024). This also indicates that the size of an estate is directly proportional to the use of new technologies, including artificial intelligence-based solutions. This can also be explained by the higher proportion of agricultural work, as the same task can be performed faster and more easily with the help of machines and robots than with human labour.
The German survey also looked at how widespread software and office applications are in farms. Of the farms that already use, plan to use or are discussing the use of artificial intelligence, 54% use or would use the softwares for climate and weather forecasts, 36% for market analysis or price forecasts, and 28% for harvest and production planning or yield forecasting (DLG, 2024). In addition, 46% of the farms surveyed would use AI for plant protection, i.e. disease diagnosis, and 20% would use it for health monitoring in animal husbandry (DLG, 2024). According to the census, 4 out of 10 farms, or 39%, use some form of AI solution for office administrative tasks (DLG, 2024).
In addition to possibly speeding up production processes and reducing the amount of administrative tasks for farms, artificial intelligence-based technologies also offer solutions in business. The vast majority of German farmers (79%) see digitalisation as a business opportunity. Only 15% see it as a risk, while 6% believe that digitalisation has no impact on their business activities. The greatest benefits experienced by farmers as a result of digital applications in their farms are time savings (69%) and greater production efficiency (61%), followed by physical relief (57%) (DLG, 2024).
The survey on digitalisation in Germany also showed that the number and proportion of farms using such technology increased significantly between 2022 and 2024. GPS-controlled agricultural machinery is also the most widespread here, with 69% of survey participants using it in their businesses (DLG, 2024). Compared to the 2022 results, this represents an increase of more than 10% in two years. 68% of farms, or 5% more than in 2022, also use digital field maps and cow or sow planning software in animal husbandry (DLG, 2024). The use of herd management systems has also increased: in 2022, 32% used such software in their work, and in 2024, this figure rose to 46% (DLG, 2024).
In addition to positively influencing planning and organisation options and production capacity, digitalisation also offers solutions for sustainability in agriculture. 36% of German farms rely on site-specific fertiliser applications, and 30% use this type of technology for pesticide application too. 28% use sensor technology in animal husbandry and crop production. Predictive maintenance, for example for agricultural machinery, is used by a quarter (25%) of farms, while 24% use automatic feeding systems or intelligent feeding systems. 23% of farms use drones and 12% use robots in their work (DLG, 2024). Overall, 90% of businesses use at least one digital solution on their farms (DLG, 2024).
As with the digital readiness of Hungarian agriculture, financing and the high cost of purchasing equipment are extremely important factors in Germany too. According to the survey, high procurement and investment costs are an obstacle to the application of digitalisation for 75% of the farms surveyed (DLG, 2024). This is followed by increased bureaucracy (61%) and concerns about the networking of insufficiently standardised interfaces and systems (59%). Half of the farms (52%) complain about the lack of participation in the planning of policy measures. 51% cite inadequate internet coverage as one of the biggest obstacles. This is followed by concerns about the loss of data sovereignty and the high complexity of digital systems, both at 49%. 47% of farmers are concerned about IT security, while 41% consider the lack of digital skills to be an obstacle. A third of respondents (34%) have already participated in training on agricultural digitalisation, while a further 43% are interested in it. Only a quarter (24%) are not interested in such training.
In France, the organisation of the digital ecosystem is focused on three activities:
- mapping the spread of digital agriculture in the country;
- creating and encouraging the development of a digital agricultural innovation ecosystem;
- testing and demonstrating digital technologies in real-world conditions, and raising awareness among advisors (Tey – Brindal, 2012).
There is still significant “rivalry” between agricultural work done with digitalisation and traditional labour in France. As the EU’s largest agricultural producer, the country wants to remain competitive globally while maintaining the high quality of its products. Many people are still wary of digital solutions because they believe that they are not sufficiently precise and could therefore compromise the high quality of the product. Although this opinion has been contradicted by numerous outcomes, it can still have a negative impact on the spread of digitalisation in French agriculture.
The most widespread digital technology among French farmers is the use of the satellite navigation system (GNSS) in agriculture (Bellon-Maurel, et al., 2023). 50% of farmers use this type of software for sowing and harvesting. At least 50% of farms also use at least three applications that are well suited to agriculture: in addition to GNSS, weather forecasting software and configuration programmes for various equipment and tools are the most commonly used (Bellon-Maurel, et.al., 2023). Only 25% of farmers consider farm management programmes worthwhile, and only 22% use yield monitoring software in the production process. Only 1% of farms use soil mapping (Bellon-Maurel, et.al., 2023).
The majority of farms growing arable crops (~75%) are equipped with traceability systems, as this is required by their downstream partners for regulatory reasons, while practically none of the small farms engaged in direct sales or short supply chains have such a system (Bellon-Maurel, et al., 2023). Agricultural robots have become widespread in France primarily in the livestock sector. According to a 2018 survey, approximately 9,000 milking robots and 2,000 other types of robots (e.g., feeding and barn cleaning robots) were in use on dairy farms. This also means that only 10% of dairy farms in the country had the robots listed above. These figures have most likely increased since 2018, as confirmed by a later study in which 70% of dairy farms indicated that they would purchase some type of robot in the near future. In 2018, the use of robots in the crop production sector was much more limited than in animal husbandry. According to the survey, a total of 150 robots were used, mainly in vegetable production. The second most important sector where this technology is used in France is viticulture. In this sector, digital labour is mainly used for mechanical weeding.
In recent years, more and more innovative solutions have appeared in French agriculture, which farmers can use not only for preventive purposes but also in the name of sustainability. In the livestock sector, for example, dairy farms can use collars that monitor the health of cows (INRAE, 2023). In the event of a problem, an alarm is triggered, so farmers do not have to constantly return to their animals to check on their health. This is a step forward for both animal welfare and farmers, who no longer have to perform so many laborious and mentally demanding tasks (INRAE, 2023). There has also been a significant technological advance in French beekeeping, with an innovation that has been used by the company BeeGuard since 2016 (INRAE, 2023). The company sells and installs systems that monitor the behaviour of hives and pollinators. This allows beekeepers to monitor the proper functioning of the hive without disturbing it, checking indicators such as temperature, humidity and the rate of return to the hive. Information on the comings and goings of bees allows beekeepers to monitor the resource levels in the surrounding area and receive alerts about unexpected increases in mortality rates. Hives equipped in this way can serve as an early warning system in terms of environmental quality (INRAE, 2023).
In the crop production sector, French agriculture places particular emphasis on preventive tools when it comes to innovative solutions. Early detection of diseases and accurate location of infected plants helps to optimise plant management (INRAE, 2023). At the farm level, disease detection and water shortage management programmes have been developed, such as the program developed by the Bordeaux-based company Chouette, which uses facial recognition principles to detect the first signs of powdery mildew on grape leaves. The camera-equipped drone is connected to GPS, providing vineyard owners with a map showing the exact location of infected plants. This allows grape growers to take early action and target only the infected areas. This system not only reduces the spread of disease by enabling early action and facilitating targeted treatment, but also reduces the use of phytopharmaceuticals (INRAE, 2023).
Overall, the technology is becoming increasingly widespread in French and German agriculture, but there are still a number of shortcomings. Despite the large agricultural areas in these countries and their high level of economic development, digital developments in agriculture may require significant expansion. For French and German farmers too, the biggest deterrent is the high purchase price of equipment and its maintenance (software updates, subscriptions). As mentioned earlier, smaller family farms predominate in European economies, including France and Germany, and their revenues are significantly lower than those of large agricultural companies. Both European Union and national subsidies would have a major impact on the further spread of technological developments, as would further expansion of education. All this would bring more advantages than disadvantages, not only for the countries concerned, but also for farms overall.
Summary, conclusion
According to a GTAI survey, Europe had the most agricultural robot manufacturers in 2021. 32 companies contributed to the land cultivation sector, 12 to milk and dairy production, 11 to other animal husbandry robotics, and 9 to equipment manufacturing serving other agricultural sectors (GTAI, 2023). Nevertheless, such solutions are still significantly underrepresented in European agriculture, which can be attributed to financial and educational reasons. The situation in Hungary has improved significantly over the past 4-5 years, but there is still untapped potential in many areas. The French and German examples show that innovative solutions can increase production, ensuring that plants and animals can thrive in better conditions and with higher yields. They can also be an appropriate response to labour shortages and to changing production structures due to climate change. Overall, artificial intelligence and digitalisation can open up new opportunities for agriculture, but this requires a decisive approach on the part of the countries concerned and the European Union to ensure that as many farms as possible can take advantage of these solutions.
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