The European Commission presented decisive measures last Friday to help those farmers affected by the sharp rise in fertilizer costs and to support Europe’s food security, as part of the recently announced Action Plan on Fertilizers.
In recent months, geopolitical tensions and supply disruptions have driven up fertilizer prices across Europe. To address this situation, the Commission proposes two concrete measures. First, the Commission is providing financial aid to help farmers purchase fertilizers and thus ensure their upcoming harvests. In the coming weeks, the Commission plans to mobilize a total of 540 million euros.
Earlier this week, the Commission proposed to strengthen the agricultural reserve with an additional 300 million euros from the EU budget for 2026, in addition to the remaining funds. Member States will be able to complement it with up to 200% of national funds, which would raise the total potential to 1.5 billion euros.
Secondly, the Commission proposes specific adjustments to the common agricultural policy that allow Member States to provide farmers with faster and more flexible support to access fertilizers. These measures include a new liquidity scheme under rural development as support in the crisis, the option for Member States to make direct payments to farmers earlier, and the possibility for Member States to adjust their budget for direct payments in 2027.
The new liquidity plan can be co-financed up to 65% by the European Agricultural Fund for Rural Development (EAFRD) and include unused funds that could otherwise be lost. Member States can add national funding of up to 200%. To ensure rapid delivery and minimize administrative burdens, aid can be paid as a fixed amount per hectare and applied through the CAP strategic plans.
Regarding the early direct payments to farmers, Member States will have the option to grant them a higher percentage of advances before October 16, which will help them improve their cash flow.
Finally, the proposal will grant Member States greater flexibility to address the impact of high fertilizer prices by adjusting their direct payment allocations for the calendar year 2027.
