The European Commission has proposed mobilizing €500 million ($577 million) in support for farmers facing higher fertilizer costs, warning that rising prices could discourage planting and pose risks to food production.
The proposal would draw on the agricultural reserve under the EU's Common Agricultural Policy, which currently holds around €200 million. The commission also wants EU member states and the European Parliament to approve an additional €300 million for the fund.
EU Agriculture Commissioner Christophe Hansen said the impact of rising fertilizer prices had so far been limited because many farmers built up stocks late last year. However, some are now reconsidering whether to sow winter crops because of higher costs, instead weighing participation in environmental schemes that may offer higher returns while requiring less fertilizer use.
The commission announced a support package in May but had not previously disclosed the amount of funding to be made available.
Hansen told dpa that reduced planting of winter crops could pose a risk to the EU's food supply.
Fertilizer prices, particularly for nitrogen-based products, have risen sharply as natural gas costs increased following the conflict in the Middle East and the closure of the Strait of Hormuz.
The commission is pursuing measures aimed at securing affordable fertilizer supplies, reducing greenhouse gas emissions and lowering the bloc's dependence on imports. These include incentives to increase the use of fertilizers derived from organic sources.
The EU has also suspended standard import duties on several key nitrogen fertilizers and related raw materials until the end of May 2027. According to the commission, the move could save importers around €60 million in tariffs.
