The European Commission on Friday proposed a financial support package worth EUR 540 million for farmers in the European Union who are struggling with rising fertilizer prices. One of the reasons for the price increase is the crisis in the Middle East.
— Today we are fulfilling our commitment to support farmers facing skyrocketing fertilizer costs. I can confirm that we have proposed an EU financial support package worth EUR 540 million, which Member States will be able to complement with national funds to mobilize a total of up to EUR 1.5 billion in aid for farmers, said Christophe Hansen, EU Commissioner for Agriculture and Food.
The European Commission responds to the crisis in the Middle East
According to the EC, in recent months, geopolitical tensions and disruptions in supply chains have led to an increase in fertilizer prices across Europe. As a result, rising costs may limit their use by farmers, which in turn may translate into lower yields, a decline in farm income and an increase in food prices. The Commission has proposed two short-term support instruments.
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Firstly, financial assistance is provided for farmers who have to buy fertilizers. In the coming weeks, the EC wants to release a total of EUR 540 million, while member states will be able to increase this pool through national funds to a total of EUR 1.5 billion.
Earlier this week, the Commission also proposed increasing the so-called agricultural reserve by an additional EUR 300 million from the EU budget for 2026, above and beyond the remaining funds available.
The second element of the package are changes to the Common Agricultural Policy (CAP), which are intended to enable Member States to support farmers in access to fertilizers more quickly and more flexibly. They include, among others: possibility of earlier payment of direct payments and flexibility in direct payment budgets for 2027.
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The EC also proposed the so-called a new liquidity instrument under rural development for crisis support. It is to be co-financed up to 65%. from the European Agricultural Fund for Rural Development (EAFRD). Member States will be able to supplement it with national financing of up to 200%. The support is to be paid in the form of a lump sum per hectare.
Farmers with support. This is what the support procedure will look like
Proposals for legislative changes will now go to the European Parliament and the Council of the EU (member states). In turn, a financial support package of EUR 540 million is to be put to a vote by member states, and its final approval is planned by the end of July 2026.
About 30 percent EU demand for nitrogen fertilizers comes from imports. Their production is also a very energy-intensive process, which is largely based on the import of natural gas, used both as a raw material and as an energy source.
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In addition, 70 percent EU demand for phosphorus fertilizers is covered by imports of phosphate rock. Most of the world's resources of these raw materials are located in a few countries outside the EU, especially Morocco. This makes the EU largely dependent on supplies from abroad.
The EU is less dependent on potassium imports – about 40%. demand is covered by imports. A significant part of mining is carried out in the EU, especially in Germany and Spain.
