EU farmers set to benefit from €540m fertiliser support plan

Farmers across the EU are set to receive a substantial support package from the EU Commission to help mitigate the impact of exceptionally high fertiliser prices linked to conflict in the Middle East.

Financial relief of €540m (£467m) is being made available to help growers purchase fertiliser ahead of next year.

EU member states are also able to make direct payments to farmers earlier than planned through the Common Agricultural Policy, to help ease cashflow issues for farm businesses.

See also: Farm income figures confirm ‘up horn, down corn’ for 2025

EU  agriculture commissioner Christophe Hansen said the EU was delivering on its commitment to support farmers facing soaring fertiliser costs.

 “I can confirm that we have proposed a €540m EU financial support package, which member states will be able to top up with national funds to mobilise up to €1.5bn [£1.3bn] in relief for farmers on the ground,” he said.

“This support must reach those who need to buy fertilisers for the next sowing season and secure their future harvests.”

Crisis reserve 

An EU Agricultural Crisis Reserve will also be increased from €200m (£173m) to €500m (£432m), and member states will be able to supplement this with national support of up to 200% of their national allocation.

Mr Hansen added: “Now is the time to choose our food security, our strategic autonomy and our competitiveness.

“Europe is standing firmly by the side of its farmers and taking decisive action to safeguard the foundations of our food production.”

Response 

The support has generally been welcomed by farming groups, with EU farmer and co-operative group Copa-Cogeca calling it an “initial positive step”, though it added that the proposals failed to match the “magnitude of the crisis” that the agricultural sector could face in the coming months.

A spokesman said: “Farmers facing soaring input costs today need support that reaches them quickly, not after lengthy policy cycles.  

“At a time when fertilisers remain one of the largest production costs in European agriculture – and the single largest input cost for many arable crop farmers – delays in delivering effective support risk undermining farm viability, food production and the affordability of food for European consumers.”

The group is calling for the proposed measures to be adopted as soon as possible.

Co-funding call

The Irish Farmers Association has called on agricultural minister Martin Heydon to implement the 200% co-financing element as soon as possible.

IFA president Francie Gorman said: “At a time when farmers are facing sky rocketing input costs and falling output prices, it is absolutely imperative that the minister delivers on the maximum 200% member state co-financing permitted by the commission.

“It is also vital that any scheme developed is available across all sectors and will deliver money to farmers efficiently, with the lowest level of administrative burden possible.”

Middle East talks

The aid package comes as a deal has reportedly been agreed between Iran and the US to end the war and re-open the Strait of Hormuz, a major global shipping route for commodities, such as fertiliser.

Karin Strom, vice-president at global procurement and supply chain consultancy Proxima, said: “The draft agreement calls for the lifting of the naval blockade within 30 days, restoring passage through a route that carries a significant share of the world’s oil.

“Public statements suggest the strait will be effectively ‘open’ from the moment the deal is signed.

“In practice, implementation is conditional and dependent on events that have yet to unfold.”

Brent crude oil prices fell to just $82 a barrel on Monday (15 June) in response to the prospect of a peace deal.