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# EU agriculture ministers held meeting in Brussels as fertilizer price crisis tops agenda

Publication Date: 2026-05-27T13:00:00-04:00
Last Updated: 2026-06-25T00:04:20-04:00

Author: Dmitry Savinsky (https://www.fertilizerdaily.com/author/dsavinsky/)

Categories: [Trade &amp; Policy](https://www.fertilizerdaily.com/trade-and-policy/), [Markets](https://www.fertilizerdaily.com/markets/)

![Brussels, Belgium - March 8, 2025: Facade of the European Parliament. The European Parliament is the parliamentary institution of the European Union directly elected by citizens](https://www.fertilizerdaily.com/wp-content/uploads/2026/05/brussels-belgium-march-8-2025-facade-of-the-european-parliament-the-european-parliament-is-the-parliamentary-institution-of-the-european-union-directly-elected-by-citizens-stockpack-istock-scaled.jpg)

Commissioner Hansen warned limited fertilizer access could force European farmers to reduce or abandon production, as the bloc's energy and input costs remain at elevated levels from the Hormuz crisis.

EU agriculture ministers gathered in Brussels on Tuesday for a Council of the European Union meeting placing soaring fertilizer costs front and center, with European Commission officials warning that the bloc's food production is at risk unless access to affordable fertilizers improves.

European Commissioner for Agriculture Christophe Hansen acknowledged the situation facing the sector was "very serious," telling ministers that limited access could force farmers to reduce fertilizer use or abandon production of nutrient-intensive crops altogether. Europe is heavily dependent on imports of natural gas and ammonia — the two principal feedstocks for nitrogen fertilizer production — and farmers have been squeezed by prices that have surged since the Strait of Hormuz effectively closed to commercial shipping in late February.

The meeting, held under the Cyprus presidency, heard calls from Greece, Ireland and Cyprus for immediate action to safeguard agricultural output. Ireland's agriculture minister said Dublin supports a temporary suspension of the EU's Carbon Border Adjustment Mechanism (CBAM) — which has imposed additional costs on imported fertilizers since the start of 2026 — to reduce the combined financial burden on farmers. Officials cautioned, however, that a CBAM waiver would only take effect from 2027 onward, not immediately.

Germany acknowledged pressure on fertilizer and energy prices but urged caution about measures that could undermine the bloc's long-term decarbonization commitments. Poland called for stronger crisis management tools and greater flexibility in EU support mechanisms. Ministers broadly backed the direction of travel but differed on pace and ambition.

The European Commission confirmed that a Fertilizer Action Plan is being finalized. Officials said the plan will address both the immediate supply shock from the Hormuz crisis and longer-term structural vulnerabilities in Europe's fertilizer supply chain, including diversification of ammonia sources and support for domestic nitrogen production capacity.

Source: [Bloomberg](https://www.bloomberg.com/news/newsletters/2026-05-26/eu-discusses-impact-of-fertilizer-price-rise-due-to-middle-east-war)

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## What to Know About the EU Fertilizer Crisis Response

### Why are European fertilizer prices so high right now?+

The Strait of Hormuz has been effectively closed since late February 2026, disrupting approximately one-third of global seaborne fertilizer trade. The Middle East is a major exporter of ammonia and urea — key inputs for European nitrogen fertilizer production. With those supply routes severed, prices for nitrogen and phosphate-based fertilizers have climbed sharply. The EU's Carbon Border Adjustment Mechanism, which took effect in January 2026, has added a further levy on fertilizer imports, compounding the price pressure on farmers.

### What is CBAM, and how does it affect European fertilizer costs?+

CBAM is the EU's Carbon Border Adjustment Mechanism — a carbon tariff on imports of carbon-intensive goods including fertilizers from countries without equivalent carbon pricing. It requires EU importers to buy certificates covering the embedded carbon cost of foreign-made products. For nitrogen fertilizers, this adds cost depending on production method and country of origin. Ireland and other member states are calling for a temporary CBAM suspension for fertilizers given the current supply crisis, though officials say such relief would only take effect from 2027.

### What is the EU Fertilizer Action Plan?+

The EU Fertilizer Action Plan is a package being finalized by the European Commission to address both the current Hormuz supply shock and longer-term structural dependencies. Key elements are expected to include measures to diversify ammonia and nitrogen supply sources, support for strategic fertilizer stockpiling, regulatory flexibility for farmers and incentives for European domestic fertilizer production capacity. Commissioner Hansen has indicated it will be published in the coming weeks. No formal release date has been confirmed.

### Which EU countries are most exposed to the fertilizer price crisis?+

Countries with large cereal and oilseed sectors are most affected, including France, Germany, Poland and the Baltic states. Fertilizers account for 15–30% of farm production costs depending on the crop and member state. Cereal growers have the least ability to pass cost increases on to buyers, making them the most financially squeezed group. Ireland stressed domestic food security risks, while Greece and Cyprus highlighted particular vulnerability as smaller agricultural economies with no domestic fertilizer production capacity.

### What happens if no relief measures are agreed?+

Without relief, European farmers face a second consecutive year of severely constrained margins. Commissioner Hansen warned directly that limited fertilizer access could force farmers to reduce application rates or abandon nutrient-intensive crop production altogether. A sustained reduction in fertilizer use across the EU would lower cereal and oilseed yields, tightening European food supply and potentially amplifying global food price pressure into 2027. Ministers have asked the Commission to expedite the Fertilizer Action Plan to provide a clearer near-term response.

Tags: [ammonia](https://www.fertilizerdaily.com/tag/ammonia/), [CBAM](https://www.fertilizerdaily.com/tag/cbam/), [European Union](https://www.fertilizerdaily.com/tag/european-union/), [fertilizer prices](https://www.fertilizerdaily.com/tag/fertilizer-prices/), [food security](https://www.fertilizerdaily.com/tag/food-security/), [Middle East](https://www.fertilizerdaily.com/tag/middle-east/), [nitrogen fertilizer](https://www.fertilizerdaily.com/tag/nitrogen-fertilizer/), [Strait of Hormuz](https://www.fertilizerdaily.com/tag/strait-of-hormuz/)

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