Brussels wants to add 300 million euros to the financial reserves still available in the agricultural disaster fund. This would bring the total amount to about 500 million euros. The European Commission expects EU countries to add additional funds through their own support measures.
Expensive fertilizer
The reason for the intervention is the sharply increased prices of fertilizer. According to the European Commission, these have risen considerably since 2024. Recent developments in the Middle East and disruptions of key trade routes via the Persian Gulf have played an important role. Producing fertilizer requires a lot of energy, such as oil and gas, most of which comes from the Middle East.
For many farms, fertilizer costs make up a large part of total expenses. The price increases therefore put direct pressure on operations. Some farmers struggle to absorb the higher costs, while they cannot always pass these on to buyers.
Promotion
Advances
Besides financial support, the Commission wants to offer more flexibility within the Common Agricultural Policy. EU countries should be able to more easily pay advances to farmers. Work is also underway on a new scheme to help farms cope with liquidity problems.
The support measures are part of a broader approach. The Commission previously presented plans to reduce dependence on imported fertilizer. This includes exploring opportunities to stimulate the production of alternative and more sustainable fertilizers within Europe.
Not enough
At the same time, calls for additional measures are growing. Agricultural organizations point out that current price increases affect many farming businesses and fear that prolonged high costs could impact agricultural production. They therefore ask for further steps that can be implemented quickly. For example, the CBAM import levy on fertilizer from non-EU countries could be abolished.
According to the Commission, it is important to prevent pressure on farms from increasing further. The economic position of many farmers is under strain and persistently high costs could have consequences for food production in Europe.
Before the proposed measures can take effect, they must still be approved by the European co-legislators. Only then can the additional funds actually become available for the agricultural sector.