As farmers face a fertiliser crisis, the European Commission is offering €540 million in financial aid
The European Commission (EC) has announced that it has introduced measures designed to help farmers facing rapidly rising fertiliser costs and to support Europe’s food security. It is reported that the Commission aims to mobilise a total of €540 million in financial support for the EU’s agricultural sector over the coming weeks.
The EC states that it has also proposed increasing the agricultural reserve by a further €300 million from the 2026 EU budget, supplementing the remaining available funds. It is reported that EU Member States will be able to top up the amount by up to 200 per cent of national funds, meaning that the total financial support available could reach €1.5 billion.
“This support must reach those who need to buy fertiliser for the next sowing season and secure their future harvest,” – said Christophe Hansen, the European Commissioner for Agriculture and Food, as quoted in the statement.
The EC has also proposed amendments to the Common Agricultural Policy (CAP) to enable EU Member States to provide support to farmers more quickly and flexibly, so that they can access fertiliser. It is reported that these measures include a new liquidity scheme under the rural development programme, designed to provide support in the event of a crisis, the option for Member States to pay direct payments to farmers earlier, and the option for Member States to adjust their 2027 budget for direct payments.
According to the Commission, the new liquidity scheme may be co-financed up to 65 per cent by the European Agricultural Fund for Rural Development (EAFRD) and may draw on unused funds that would otherwise be lost. EU Member States may also provide additional national funding of up to 200 per cent. It is added that, in order to ensure the rapid delivery of support and to minimise the administrative burden as much as possible, support may be paid as a fixed amount per hectare or in accordance with CAP strategic plans.
EU Member States will have the option, until 16 October, to grant farmers higher advance payments, thereby helping to improve cash flow.
The proposal will also give EU Member States greater flexibility to mitigate the impact of high fertiliser prices by adjusting the 2027 appropriations for direct payments.
The targeted amendments to CAP legislation proposed by the European Commission will now be forwarded to the European Parliament (EP) and the Council of the EU for approval.
The proposal on the agricultural reserve, comprising a total of €540 million in financial support, will be put to a vote by EU Member States in the Committee on the Common Organisation of Agricultural Markets, with the relevant specific national packages set out in the proposal. If EU Member States give their approval, the proposal is expected to be finally adopted by the end of July 2026.
The EC states that it will seek to continue implementing the Action Plan on Fertilisers in order to mitigate the impact of future crises on farmers and, through these measures, strengthen the EU’s food security, strategic autonomy and competitiveness.
