Agriculture and the agri-food industry are central to fostering economic growth and the Sustainable Development Goals' targets. However, to meet the world's future development, it is necessary to make the agri-food system more resource-efficient. The transition towards the circular economy (CE) paradigm is commonly seen as a promising strategy to overcome the critical issues affecting the sector. However, different theoretical and practical problems still need to be solved. Specifically, the CE performance measurement of specific sectors or national systems is crucial as it helps to identify and correct any deviation from the vision set out for achieving the sustainable development objectives. This article aims to contribute to CE research, focusing on European agriculture and the agri-food sector. Drawing on the EE-MRIO database EXIOBASE v3.7, this paper estimates the level of circularity in the European Union countries and the role of agriculture and agri-food in determining circularity. Results showed that circularity in the EU is low and significant differences between countries exist. Agriculture contributes to 80.5% of the entire amount of recycled materials in Europe. Vice versa, the contribution provided by the agri-food sector is limited to 1%. Some policy implications derive from this study.

Agriculture and livestock farming significantly contribute to the success of all United Nations Sustainable Development Goals of Agenda 2030 and are pivotal in the sustainability transition of the European agri-food sector. However, those sectors have been criticized for generating negative environmental externalities. In this context, adopting indicators able to evaluate agriculture and sheep farming sustainability is essential for fostering sustainable development in the primary sector and defining appropriate policies to support it. Such indicators are crucial for understanding if European Union policies striving to realize win–win opportunities based on synergy between farms’ environmental and economic dimensions are realistic. This paper focuses on this wave of interest and has two aims. First, it intends to investigate the existence of synergies or trade-offs between those dimensions using a trade-off analysis. To this end, a significant set of economic and environmental farm indicators was selected, and two composite indicators were created. Second, it aims to investigate the relationship between those two indicators and some pivotal structural and socio-demographic variables. This study was carried out on 219 Sardinian sheep farms included in the Italian Farm Accountancy Data Network. The findings showed a low synergy between the economic and environmental spheres, a relationship between economic indicators and farmers’ ages and organic production variables, and no relationships between the environmental dimension and the analyzed variables.