EU Proposes €540M Aid for Farmers Amid Fertiliser Crisis

European Commission

Today, the European Commission presents measures to help farmers facing sharply rising fertiliser costs and to support Europe's food security, delivering on the recently announced Fertiliser Action Plan . In recent months, geopolitical tensions and supply disruptions have pushed prices of fertilisers up across Europe.

To address this situation, the Commission is proposing two concrete short-term measures. Firstly, 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.

Secondly, 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 have the possibility 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.

Next steps

The Commission's proposed targeted CAP legislative amendments will now be sent 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.

The Commission will continue to deliver on the Fertiliser Action Plan to reduce farmers' exposure to future crises and, through these actions, strengthen EU food security, strategic autonomy and competitiveness.

Background

Fertilisers are essential for agricultural production and represent a significant share of farmers' costs. In recent months, geopolitical shocks and supply disruptions have driven fertiliser prices up, placing increasing pressure on farmers across Europe. As a result, rising costs may force farmers to use less fertiliser, risking lower quality and yields. If farmers cannot afford the fertilisers they need, this may affect harvests, farm incomes, wider food supply and ultimately also food prices.

On 19 May 2026, the Commission presented the Fertiliser Action Plan to support farmers facing rising fertiliser costs and scarcity, reinforce domestic production and reduce Europe's dependency on imports. The Plan combines immediate support measures aimed at supporting affordability and security of supply, with longer-term action to strengthen domestic fertiliser production, improve supply resilience and accelerate the transition to bio-based, low-carbon and circular fertilisers.

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