Farmers hit by ‘locked capital’ trap as machinery risks losing value faster, BNP research warns

European farmers are facing significant growth constraints due to capital being locked in expensive machinery, with rapid technological advancements accelerating equipment obsolescence and making long-term returns uncertain. Many farmers wish to reinvest in sustainable technologies but are hindered by financial rigidity and concerns over end-of-life equipment management. While there is growing openness to leasing and flexible usage models, barriers such as limited supplier options and unfamiliarity persist. The sector is undergoing a structural shift in financing, with increasing demand for next-generation, future-proof equipment and a move away from traditional ownership models.