The European Commission proposes a support package of 540 million euros for farmers affected by the strong increase in fertilizer prices, with the possibility for member states to supplement the funds up to a total of 1.5 billion euros. The measures include short-term financial support, flexibility in the Common Agricultural Policy, advance direct payments, and a new liquidity scheme to help farmers purchase the necessary fertilizers for the upcoming crops.
The European Commission proposes 540 million euros in financial support for farmers affected by the strong increase in fertilizer prices, in a package that can reach 1.5 billion euros through national contributions. The measures aim to help farmers purchase the necessary fertilizers for the upcoming crops and to reduce risks to crops, agricultural incomes, and European food security.
In short
1. The European Commission proposes mobilizing 540 million euros for farmers affected by the increase in fertilizer prices.
2. Member states will be able to supplement the support with national funds up to 200%, which could bring the total package to 1.5 billion euros.
3. The proposal includes a new liquidity scheme in rural development, advance direct payments, and flexibility for direct payment budgets for 2027.
4. The liquidity scheme can be co-financed up to 65% from the European Agricultural Fund for Rural Development and applied through the CAP strategic plans. 5. The European Commission states that the measures are part of the Fertilizer Action Plan, presented on May 19, 2026, to reduce Europe’s dependence on imports.
The European Commission links the package to geopolitical tensions and supply disruptions that have pushed up fertilizer prices in Europe in recent months. The European executive warns that high prices may lead farmers to use less fertilizer, posing risks to the quality and level of agricultural production.
The first proposed measure is direct financial support for farmers who need to purchase fertilizers for the upcoming crops. The Commission intends to mobilize 540 million euros, after having proposed earlier this week to supplement the agricultural reserve with an additional 300 million euros from the EU budget for 2026, alongside remaining funds.
Member states will be able to add national funds up to 200%, which could raise the total available support to 1.5 billion euros. The Commission states that this support must reach farmers who need to purchase fertilizers for the next planting season and to ensure their future harvests.
The second measure is a targeted adjustment of the Common Agricultural Policy to allow member states to provide faster and more flexible support. The proposal includes a new liquidity scheme within rural development, the possibility of making direct payments to farmers earlier, and the option to adjust the direct payment budget for the calendar year 2027.
The new liquidity scheme will be co-financed up to 65% from the European Agricultural Fund for Rural Development and may include unused funds that could otherwise be lost. Member states will be able to add national funding up to 200%, and support can be paid as a fixed amount per hectare, through the strategic plans of the Common Agricultural Policy.
For advance direct payments, member states will be able to provide farmers with money before October 16, with a higher advance rate, to improve their cash flow. The Commission also proposes additional flexibility for direct payment allocations for the calendar year 2027, so that member states can better respond to the effects of high fertilizer prices.
The European Commissioner for Agriculture and Food, Christophe Hansen, stated that the European executive is committed to supporting farmers affected by high fertilizer costs. "We have proposed a EU financial support package of 540 million euros, which member states will be able to supplement with national funds to mobilize up to 1.5 billion euros in support for farmers on the ground," Hansen said.
Hansen urged co-legislators to treat the proposals regarding the flexibility of CAP support "as a matter of urgency," so that assistance can be delivered without delay. He stated that the current moment calls for prioritizing food security, strategic autonomy, and Europe’s competitiveness, asserting that the European Union "stands firmly with farmers."
The legislative proposals to amend the Common Agricultural Policy will be sent to the European Parliament and the Council of the European Union for approval. The proposal regarding the agricultural reserve, which includes the financial support of 540 million euros, will be put to a vote by member states in the Committee for the Common Organization of Markets, and final adoption is scheduled for the end of July 2026 if member states give their consent.
The European Commission presented on May 19, 2026, the Fertilizer Action Plan, designed to support farmers affected by costs and shortages, to strengthen domestic production and to reduce Europe’s dependence on imports. The plan combines immediate measures for accessibility and supply security with longer-term actions for domestic production, supply chain resilience, and the transition to bio-based fertilizers, with reduced carbon emissions and circularity.
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