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Estonian agriculture has undergone significant growth and structural change since the 1990s in a policy and regulatory environment that has been mostly supportive of investment. The implementation of the Common Agricultural Policy has contributed to the modernisation of the country's agriculture, leading to high productivity growth with relatively limited environmental pressure. High educational levels and strong public research institutions have also provided a fertile environment for innovation in Estonia, although Estonian agri-food companies struggle to participate in food and agricultural research activities. Attracting and retaining people in the agriculture sector at a time of growing labour and skills shortages in rural areas is an increasing challenge. Further innovation and adaptation will be needed to sustain and expand agriculture and food in Estonia.