European Commission moves to support farmers on fertilisers: 540 million euros and CAP flexibility

Brussels – The European Commission proposed today (12 June) 540 million euros in financial support for the purchase of fertilisers and targeted adjustments to the Common Agricultural Policy (CAP). These two measures enable EU Member States to provide farmers with faster, more flexible support to access these products, in a bid to help farmers facing a sharp rise in fertiliser costs and bolster European food security.

 The Commission noted that recent geopolitical tensions and supply disruptions have caused fertiliser prices to soar across Europe, making these two measures necessary. “The Commission is today proposing a total allocation of 540 million euros to support farmers facing high fertiliser prices. This is a key part of the recently announced Fertiliser Action Plan,” said Louise Bogey, the Commission’s spokesperson for Agriculture and Taxation, during the daily press briefing. “Our aim is for this support to reach farmers before the next sowing season, to help them purchase the fertilisers they need. This financial aid will be supplemented by the flexibilities provided for under the Common Agricultural Policy (CAP). For example, Member States will be able to propose a new liquidity scheme as part of their CAP strategic plans. For crisis support, they will also have the option of disbursing CAP income support as early as the beginning of this year,” she added. Both proposals will now be examined by the co-legislators, the EU Council and the Parliament, from whom “we are calling for a swift agreement to ensure this support is delivered quickly to our farmers.”

 Earlier this week, the Commission proposed increasing the agricultural reserve by a further 300 million euros in the 2026 EU budget, in addition to the funds already available. Member States will be able to top up this reserve by up to 200 per cent of national funds, bringing the total financial support available to a potential 1.5 billion euros.

The targeted adjustments to the CAP, on the other hand, 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 Commission explained. 

In particular, the new liquidity scheme can be co-financed up to 65 per cent by the European Agricultural Fund for Rural Development (EAFRD) and include unused funds that may otherwise be lost. Member States may add national funding up to 200 per cent. “To ensure rapid delivery and minimise administrative burdens, support can be paid as a fixed amount per hectare and implemented through the CAP Strategic Plan,” the Commission specified. Regarding advanced direct payments to farmers, Member States will have the option to provide them before 16 October at an increased advance rate, thereby improving cash flow. 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,” the Commission concluded.