Press release - Fertiliser prices: MEPs approve support for farmers

MEPs decided to fast-track the changes to the EU common agricultural policy (CAP) as proposed by the Commission, to ensure farmers get aid in time to buy fertilisers for the next growing season.

To prevent a decline in production or food quality and growing prices for consumers, farmers will be able to receive liquidity support worth up to 80% of the additional fertiliser costs they incur. EU countries will also have the possibility to increase advances on direct payments from 70% to 75% and pay them to affected farmers directly after they apply for them (and not only after 16 October as defined by the current rules). Member States will also have more flexibility to adjust their direct payments budgets for next year.

The rules proposed by the Commission were adopted with 576 votes in favour, 62 against and 15 abstentions.

Next steps

The text now needs to be formally adopted by Council and published in the Official Journal before it can enter into force the day after.

Background

Fertiliser prices have a direct impact on food production as fertilisers account for up to 16% of input costs for farmers.

The EU relies on imports for 30% of the nitrogen-based fertilisers and 70% of the phosphatic fertilisers used for agricultural production. EU fertiliser production meanwhile relies on natural gas. Both fertiliser prices and energy prices have been rising due to recent geopolitical events, such as Russia’s war of aggression against Ukraine and, more recently, the situation in the Middle East, and in particular the closure of the Strait of Hormuz.