Agriculture Council gives final approval to aid to tackle the EU’s high fertiliser costs

Brussels – The first Agriculture Council under the Irish Presidency has taken an important step towards tackling the crisis in the Middle East. Ministers today (13 July) adopted the regulation providing support to European Union farmers affected by high fertiliser prices. According to the Irish Minister Martin Heydon, the adoption of this regulation demonstrates that the European Union “is determined to respond swiftly and decisively to support European farmers and our food security.”

The text provides a range of measures to help farmers cope with rising fertiliser costs and address price volatility. These problems have all been caused by the crisis in the Middle East and the closure of the Strait of Hormuz. The European Union plans to offer farmers support through a new liquidity scheme under the rural development programme for crisis support, which may be co-financed up to 65 per cent by the European Agricultural Fund for Rural Development (EAFRD) and may include unused funds that might otherwise be lost. 

Member States may also decide to provide additional funding of up to 200 per cent. Finally, the regulation provides Member States with the possibility of making direct payments to farmers in advance, helping them manage their short-term cash-flow needs. Finally, the regulation includes the option for Member States to adjust their direct payment allocations for 2027 to reflect national needs and priorities.

The regulation is part of a broader package of measures to address the impact of the Middle East crisis on agricultural markets. This package includes a boost to reserves, with an additional 300 million in the 2026 budget earmarked for agriculture. The package also includes other measures to boost domestic fertiliser production, improve supply chain resilience, and accelerate the adoption of bio-based, low-carbon, and circular fertilisers.

MEPs approved the regulation in the last plenary session in Strasbourg; it has now cleared the final stage of the legislative process and will enter into force the day after its publication in the EU Official Journal.