Europe
29 July 2026
EU unveils support for farmers hit by fertilizer costs
Written by Natalie Noor-Drugan
The Council of the EU has adopted a regulation giving member states new tools to support farmers hit by sharply higher fertilizer and input costs linked to the recent crisis in the Middle East. The measures aim to ease liquidity pressures, stabilise production and underpin food security across the bloc.
“Recent disruptions to global supply chains and soaring fertilizer prices have placed significant pressure on our agricultural sector,” said Martin Heydon, Ireland’s Minister for Agriculture, Food and the Marine. “Today’s decision demonstrates that the European Union is determined to respond swiftly and decisively to support European farmers and our food security.”
New tools under the CAP
The regulation amends the EU’s Common Agricultural Policy (CAP) Strategic Plans Regulation and the CAP Horizontal Regulation on financing, management and monitoring to allow urgent, targeted financial support for the farmers most affected by increased fertilizer and other input costs. Member states will be able to:
• Launch a new rural development liquidity scheme for crisis support.
• Pay direct payments to farmers earlier, to ease short term cash flow needs.
• Adjust their direct payment allocations for 2027 to reflect national needs and priorities.
The liquidity scheme can be co financed by up to 65% from the European Agricultural Fund for Rural Development (EAFRD), including unused funds that might otherwise be lost. National co financing can reach up to 200%, and support may be paid as a fixed amount per hectare and implemented through CAP strategic plans to speed delivery and reduce administrative burden.
Incentives on fertilizer efficiency
Alongside immediate support, the regulation strengthens incentives for more efficient farming practices that reduce and optimise fertilizer use and encourage a shift to bio based fertilizers. The aim is to combine short term economic relief with longer term efficiency and environmental sustainability, promoting more resource efficient nutrient management and accelerating uptake of bio based, low carbon and circular fertilizer products.
Part of a wider crisis package
Adoption of the regulation is the final step in the legislative process; once published in the Official Journal, it will enter into force the following day. The proposal was tabled by the European Commission on 12 June 2026 as part of a broader package responding to the impact of the Middle East crisis on agricultural markets. That package includes an extra €300 million ($327 million) for the agricultural reserve in 2026, as well as measures to strengthen Europe’s domestic fertilizer production, improve supply resilience and accelerate deployment of bio based, low carbon and circular fertilizers.
