This study presents an innovative approach to measuring the impact of EU CAP direct payments on the economic resilience of agriculture at a sectoral level. The construct of resilience is approached from the perspective of the resilience of the main functions of the sector. The overall level of direct payments impact on sectoral economic resilience is seen as a weighted sum of the payments’ impact on the resilience of the main economic functions of the sector. Such an approach, allowing for a comprehensive estimate of subsidy impact on the most essential areas of agriculture, is universal and can be adapted to measure economic resilience of other economic sectors. For the empirical application we used panel data from 27 EU countries over the period 2005–2019. The results revealed that the overall impact of direct payments on the economic resilience of agriculture across EU-27 was positive. However, the influence of the payments on different key functions of the sector diverged. The most evident and alarming negative changes in the economic resilience levels were observed in terms of efficiency of farms. Negative impact on separate indicators may pose a risk that the influence of direct payments on economic resilience of agriculture may not be sustainable in the longer run.

Digitalization of agriculture is one of the priorities of the EU’s rural development strategy “From Field to Table”, which promotes the creation of more added value and climate change mitigation in agriculture. A growing body of the literature argues that digitalization enables better information management, reduces production costs, and increases the potential for farm income growth, but only a few papers provide empirical studies on how digitalization improves the performance of small farms. To fill this gap in the literature, this paper presents a case study as empirical evidence of the impact of digital innovation on smallholder performance through a sustainable development lens. This paper reports research based on a pilot digitalization project implemented on a small organic farm. It examines the identification of logical links between the digitalization processes introduced and the impact of digitalization on the economic, social, and environmental performance of the small farm. The case study data were collected through semi-structured interviews and based on the results of a pilot project. The findings of this study provide evidence that the introduction of digital technologies has improved the economic performance of the farm, including a reduction in labor costs, improved customer relations, improvements in farmers’ investment planning, and process redesign. Based on this study, recommendations are made to policymakers on how to promote the uptake of digital technologies in smallholder farming.