The European Commission has today (Wednesday, November 9) published a communication document outlining how it plans to tackle rising fertiliser costs.
The commission said that high gas prices, the war in Ukraine and the dependence on a limited number of suppliers, including Russia, has jeopardised the availability and affordability of fertilisers and put food security at risk.
Although fertilisers remain available in the EU, the commission said that their affordability is a challenge for farmers.
The price of nitrogen (N) fertilisers in September 2022 increased by 149% compared to the same month last year.
The commission said that the short-term actions being proposed “should alleviate the difficulties EU farmers and fertiliser producers face” while reducing dependence on imports from Russia.
It said that the current crisis is an opportunity to accelerate the transition away from synthetic fertilisers to a sustainable agriculture and food system, while also ensuring an adequate and affordable fertiliser supply for farmers.
EU Commission
The commission document outlined that amendments to the Temporary Crisis Framework for state aid means that EU member states can provide specific supports for both farmers and fertiliser producers.
The communication suggests that public authorities could purchase fertilisers and then offer them at lower prices to farmers.
Funds generated from capping the profits of electricity companies could also be used for national support schemes.
The commission, along with member states, will examine the possibility of using the EU agricultural reserve fund, worth €450 million, to help farmers impacted by high input costs in 2023.
However, the commission has ruled out lifting anti-dumping duties on fertiliser imports.
A new market observatory will be established next year which the commission hopes will improve transparency in the EU fertiliser market.
The document outlines that EU member states can prioritise access to natural gas for fertiliser producers in their national emergency plans in the event of gas rationing.
In the first quarter of 2023, the commission is set to adopt an Integrated Nutrient Management Action Plan aiming to promote more efficient use of nutrients.
Member states will also be asked to examine how their Common Agricultural Policy (CAP) Strategic Plans can help farmers use fertilisers more efficiently and sustainably.
Fertiliser
The commission plans to promote better access to organic fertilisers and support the conversion of the European nitrogen fertiliser industry to ammonia produced using renewable and fossil-free hydrogen.
To reduce dependence on Russia, the EU will support the diversification of imports.
The commission pledged to continue to work with member states and European financial institutions in the response to global food insecurity.
The EU will also work to improve global market transparency in fertilisers, by contributing to initiatives such as the G20’s Agricultural Market Information System (AMIS).
Frans Timmermans, executive vice-president for the European Green Deal, commented: “Russia’s weaponisation of gas has negative repercussions on the global fertiliser market, impacting farmers and affecting food security across the world.
“The commission is taking measures to reduce the pressure on farmers inside the EU as well as outside.
“The sustainable way forward is to focus on efficiency and alternatives. This will also help ease pressure on global fertiliser supplies.
“Likewise, we should seize the opportunity to expand production of green ammonia, produced with renewable energy.
“The more efficient we are and the faster we switch to alternatives for mineral fertilisers, the less we depend on fossil fuels and the more resilient our food system will be,” he said.
In advance of the publication of the fertiliser communication, the European Commissioner for Agriculture, Janusz Wojciechowski, said on Twitter that “the challenge for harvest 2023 has already begun”.
“The main purpose of today’s communication is to provide guidance to member states on the actions we can take, to lead co-ordination, and to set the direction for the future,” he said.
He noted that half of the world’s food production currently relies on nitrogen, phosphorous, and potassium.