Responding to geopolitical tensions and supply disruptions, the EU Commission has presented measures to help farmers facing sharply rising fertiliser costs, with the aim of supporting Europe’s food security.
The Commission is proposing two concrete short-term measures. First, the Commission is providing financial relief to help farmers who need to buy fertilisers to guarantee their next crops. In the coming weeks, the Commission aims to mobilise €540 million in total. Earlier this week, the Commission proposed to boost the agricultural reserve with an additional €300 million from the EU budget 2026 on top of the remaining funds. The Member States will be able to top it up by up to 200% of national funds, bringing the total available financial support to a potential total of €1.5 billion.
Second, the Commission proposes targeted adjustments to the Common Agricultural Policy (CAP) enabling Member States to provide farmers with faster and more flexible support to access fertilisers. These measures include:
- a new liquidity scheme under rural development for crisis support,
- the option for Member States to pay direct payments to farmers earlier,
- and the possibility for Member States to adjust their direct payment budget for calendar year 2027.
The new liquidity scheme can be co-financed up to 65% from the European Agricultural Fund for Rural Development (EAFRD) and include unused funds that may otherwise be lost. Member States may add national financing of up to 200%. To ensure rapid delivery and minimise administrative burdens, support can be paid as a fixed amount per hectare and implemented through the CAP Strategic Plans.
Regarding advanced direct payments to farmers, Member States will be able to provide them before 16 October with an increased rate of advances, helping them to improve cashflow.
Finally, the proposal will give Member States further flexibility in addressing the impact of the high fertiliser prices, by adjusting their allocations for direct payments for calendar year 2027.
The Commission’s proposed targeted CAP legislative amendments will now go to the European Parliament and the Council for their approval.
The agricultural reserve proposal with overall financial relief of €540 million will be submitted for a vote to Member States in the Committee on the Common Organisation of the Markets, with the corresponding national envelopes specified in the proposal. If agreed by Member States, final adoption is scheduled by the end of July 2026.
Ensuring availability and affordability of fertilisers – Agriculture and rural development
Fertilisers – Agriculture and rural development – European Commission (Fertilisers market Observatory)
