This article first appeared on ‘Supply Chain Strategy’ here
Neil Pein, CEO at BNP Paribas Leasing Solutions explains why Europe’s farmers have been dealt a tricky hand, battling economic pressures, population growth, climate change, and rising sustainability demands. He argues that embracing Product-as-a-Service (PaaS) models can democratise access to cutting-edge technology with financial flexibility, paving the way for a resilient and circular future for farming.
‘Empty shelf syndrome’ has become all too familiar for shoppers across Europe. Shortages are an almost everyday occurrence in food supply – from olive oil, to honey, and more recently, cauliflower and broccoli. But this empty shelf space is more than just a supply chain hiccup: this is a symptom of deeper-rooted problems in farming.
The farming community is no stranger to hardship – braving unpredictable weather, tight finances, rising production costs, and the demands of the land. Incomes are dropping, and many are being forced to close shop altogether. The European Union (EU) has seen a huge 37% drop in farms since 2005, with 5.3 million farms disappearing over just 15 years.
At the same time, farmers are facing growing heat to invest in more sustainable farming practices, while many are struggling to make ends meet.
Tightening regulations, new policy changes, and green subsidies are changing ways of working on farms. Many are racing to play their part in building a more sustainable future – and the stakes are far greater than just keeping shelves full.
A PaaS-ing trend?
Farmers are now looking in other directions to manage business risks and costs, while having to tighten their belts. Product-as-a-Service (PaaS) business models are stepping in as a solution to respond to the challenges of modern farming. PaaS models allow customers to pay for the services and outcomes a product can provide, rather than paying for the ownership of the asset itself. For farms, this opens the door to modern, sustainable, and expensive assets which may otherwise be out of reach – such as ground-based sensors, drones, autonomous tractors, or GPS technology. These costs are spread over the contract’s duration, providing financial flexibility, predictable expenses, and the freedom to reinvest in growth.
PaaS is a win-win for manufacturers, too. Offering PaaS contracts can unlock predictable revenue streams for manufacturers by offering services that span the entire lifecycle of farm machinery. It’s a well-known fact that machinery, like combine harvesters and tractors, comes with a hefty price tag. With long asset lifespans, moving away from one-time sales helps manufacturers to diversify their revenue opportunities and build long-term relationships with farmers.
The future of farming is circular
Traditionally, the high cost of equipment has made it tough for farmers to modernise and invest in new, sustainable tools, with steep upfront costs being a major barrier. PaaS solutions are emerging as a way to democratise access to the tools they need to adapt and succeed. The EU’s ‘Farm to Fork’ (F2F) strategy, introduced under the European Green Deal, has added urgency to updating outdated farm machinery and lean into circular economy principles. The F2F strategy aims to shift the current EU food system towards a sustainable model, with ambitious goals to halve the use of pesticides and fertilisers, reduce food loss and waste, and promote more sustainable production and consumption habits.
Under these goals, pay-per-use contracts for advanced equipment like seeders and sprayers can add real value for farmers. By keeping upfront costs low, PaaS enables farmers to use precision farming methods that comply with the F2F strategy, help manage rising fertiliser costs, as well as protect water, soil, and air quality.
What’s more, PaaS agreements support sustainability aims by letting manufacturers reclaim valuable materials at the end of a machine’s life. They can also offer options like maintenance and spare parts. This not only supports the circular economy, but also provides a buffer against raw materials price fluctuations and supply chain disruptions.
Giving farmers tools at their fingertips
Farmers are familiar with the risk and disruption facing the sector. Across Europe, farmers have been taking to the streets to protest issues like EU subsidy delays and bureaucracy, while in the UK, thousands marched against upcoming inheritance tax changes on agricultural assets over £1mn starting April 2026.
Pinching pennies, compounded by the growing impacts of climate change – like natural disasters and unpredictable weather patterns – are pushing the adoption of digital tools to the forefront, promising to lower operating costs and improve precision and accuracy. PaaS models leverage digital asset management, giving farmers the data insights to monitor equipment usage and performance like never before. This can span soil moisture levels, temperature fluctuations, and livestock behaviour – offering data at their fingertips to better manage crops, minimise waste, and weather the challenges ahead.
The future of farming is rooted in a combination of financial flexibility and sustainable practices. With access to cutting-edge tools without the burden of high upfront costs, farmers can meet more stringent sustainability regulations, meet the food security needs of a growing population, and reduce operating costs – ensuring stocked shelves become the norm, rather than the exception.
The Heavy-Duty Vehicle (HDV) industry plays a crucial role in global logistics, supporting supply chains and meeting the rising demand for deliveries fuelled by e-commerce growth. However, HDVs contribute significantly to greenhouse gas (GHG) emissions, accounting for over a quarter of road transport emissions in the EU. As sustainability pressures mount, the industry must adopt new solutions that balance growth with environmental responsibility.
A New Approach: Truck-as-a-Service
Truck-as-a-Service (TaaS) is an innovative business model that shifts the way fleets are procured and managed. Rather than purchasing trucks outright, businesses pay for vehicle usage through flexible contracts, often based on mileage or operational needs. This eliminates the need for high upfront capital investment, making fleet modernisation more accessible.
TaaS contracts often include value-added services such as maintenance, repairs, and fleet management solutions. By bundling these services, operators can reduce operational costs, improve efficiency, and focus on core business functions. This shift not only benefits fleet owners but also allows manufacturers to generate recurring revenue through long-term service agreements.
A Rapidly Evolving Industry
Technological advancements are reshaping the HDV industry, introducing innovations that enhance fleet performance and safety. Digital solutions optimise vehicle usage, reduce fuel consumption, and help prevent collisions. TaaS enables fleet operators to integrate these technologies without the financial strain of purchasing new vehicles.
One key innovation is telematics, which allows manufacturers to monitor vehicle performance in real time. This data-driven approach enables predictive maintenance, minimizing downtime and reducing unexpected repair costs. By integrating telematics into TaaS contracts, operators gain greater visibility into fleet health, while manufacturers benefit from long-term service engagements.
A Transition to Net Zero HDV Fleets
Truck electrification is also becoming an urgent priority for the industry as it seeks to meet ESG compliance requirements and tackle market challenges, such as volatile oil and gas prices. TaaS models can increase demand for electric vehicles, as they help operators to avoid the upfront capital investment of buying a new fleet, by spreading the costs over the lifetime of the vehicles.
TaaS contracts can also simplify the EV transition by bundling EV batteries, charging infrastructure, installation, and maintenance into one end-to-end contract. Some manufacturers are even extending their TaaS services to offer installation of hydrogen or electric powertrains in existing vehicles as part of innovative refurbishing programmes that extend the life of vehicles and reduce their impact.
Toward a Circular Economy
While still evolving, TaaS shows tremendous potential to improve efficiency, reduce costs, and enhance sustainability. By embracing service-based models, fleet operators can modernise their assets, decrease emissions, and align with circular economy principles – creating a more sustainable future for the transportation industry.