EU Commission proposes €540M relief package for farmers facing fertilizer crisis
The European Commission has proposed a €540M relief package to help farmers cope with surging fertilizer costs, the first concrete funding step under its Fertilizer Action Plan.
The Commission will channel €300M of fresh money from the 2026 EU budget into the agricultural reserve, on top of remaining funds, bringing the total to €540M. Member states may top up the support with national funds by up to 200%, raising the potential package to €1.5B.
Alongside the direct aid, the Commission proposed targeted changes to the Common Agricultural Policy. These include a new crisis liquidity scheme under the rural development program, the option for member states to bring forward direct payments, and higher advance payment rates before October 16 to ease farm cash flow.
Fertilizer prices have climbed sharply since the Middle East conflict disrupted nitrogen supply. Nitrogen fertilizer prices in April 2026 ran 71% above the 2024 average, according to Commission data, while the bloc imports 40% to 45% of the fertilizers its farmers use.
“Now is the time to choose our food security, our strategic autonomy and our competitiveness,” said Agriculture Commissioner Christophe Hansen.
The agricultural reserve proposal goes to member states for a vote, with final adoption scheduled by the end of July.
Source: European Commission
What to know about the EU’s €540 million fertilizer relief package
The Commission has proposed €540 million in EU-level relief, made up of €300 million in fresh money from the 2026 EU budget added to remaining agricultural reserve funds. Member states can top this up with national funds by as much as 200%, which would bring total support to a potential €1.5 billion.
The funds are drawn from the agricultural reserve, a crisis fund within the Common Agricultural Policy, reinforced by €300 million from the 2026 EU budget. The support would be distributed to member states through national envelopes specified in the Commission’s proposal.
The Commission proposed a new crisis liquidity scheme under rural development, the option for member states to pay direct payments earlier, and higher advance-payment rates before October 16. Member states would also gain flexibility to adjust their direct-payment allocations for calendar year 2027.
Geopolitical tensions and the Middle East conflict have tightened nitrogen and ammonia supply, with disruptions in the Strait of Hormuz adding pressure. Commission data show nitrogen fertilizer prices in April 2026 were 71% above the 2024 average, and the EU imports 40% to 45% of the fertilizers its farmers use.
The agricultural reserve proposal will be submitted for a vote to member states in the Committee on the Common Organisation of the Markets, with final adoption targeted by the end of July 2026. The accompanying CAP legislative amendments require approval from the European Parliament and the Council.
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