EU Council backs measures for farmers facing high fertiliser costs

The European Council has today (Monday, July 13) adopted targeted measures to support farmers facing high fertiliser costs.

Farmers across Europe have been hit with a sharp increase in fertiliser and other input costs driven by the recent crisis in the Middle East.

The new regulation will allow member states to provide urgent and targeted financial support to farmers most affected by the rising costs.

This will be done by amending the Common Agricultural Policy (CAP) strategic plans regulation and the horizontal regulation.

Fertiliser

The adopted measures include a new liquidity scheme under rural development for crisis support.

Member states will have the option to pay direct payments to farmers earlier, in a bid to help farmers manage their short-term cash-flow needs.

In addition, member states will be able to adjust their direct payment allocations for 2027, to reflect national needs and priorities.

The new liquidity scheme can be co-financed by up to 65% from the European Agricultural Fund for Rural Development (EAFRD) and it can include unused funds that may otherwise be lost.

Member states will be able to add national financing of up to 200%.

The council said that "to ensure rapid delivery and reduce the administrative burden, the support can be paid as a fixed amount per hectare and implemented through the CAP strategic plans".

As recently reported by Agriland, Ireland has been allocated a potential €15.3 million share of the European Commission's proposed €540 million fertiliser support package.

The regulation will also strengthen incentives for more efficient farming practices that reduce and optimise fertiliser use, along with a move towards bio-based fertilisers.

Farmers

According to the Council, the measures will "provide member states with the necessary tools to swiftly support farmers facing rising production costs and liquidity pressures".

Today’s adoption marks the final step of the legislative process.

After it is published in the Official Journal, the regulation will enter into force the following day.

Minister for Agriculture, Food and the Marine Martin Heydon said the council's "swift adoption" of the regulation highlights the EU’s and member states' determination to respond rapidly to evolving geopolitical challenges.

"Recent disruptions to global supply chains and soaring fertiliser prices have placed significant pressure on our agricultural sector.

"Today's decision demonstrates that the European Union is determined to respond swiftly and decisively to support European farmers and our food security," he said.

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