EU fast-tracks farm subsidies as fertiliser costs threaten food security

EU fast-tracks farm subsidies as fertiliser costs threaten food security
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EU lawmakers have backed fast-tracked changes to farm support rules to help farmers cope with rising fertiliser prices ahead of the next growing season.

MEPs voted to speed up amendments to the EU’s Common Agricultural Policy (CAP) — the bloc’s main system for farm subsidies — following a proposal from the European Commission, the European Parliament announced on Tuesday.

Under the measures, farmers would be able to receive liquidity support worth up to 80% of the additional fertiliser costs they incur.

EU countries would also be able to raise advances on direct payments to farmers from 70% to 75%, and pay them to affected farmers as soon as they apply rather than only after 16 October under current rules.

The changes were approved by 576 votes in favour, 62 against and 15 abstentions.

Member states would also be given more flexibility to adjust their direct payments budgets for next year.

Why fertiliser prices matter for food production

Fertilisers account for up to 16% of farmers’ input costs, the European Parliament said.

The EU relies on imports for 30% of the nitrogen-based fertilisers and 70% of the phosphatic fertilisers used in agriculture. EU fertiliser production depends on natural gas.

Both fertiliser and energy prices have been rising due to recent geopolitical events, including Russia’s war against Ukraine and, more recently, the situation in the Middle East and the closure of the Strait of Hormuz.

The text still needs formal approval by the Council and publication in the EU’s Official Journal before it can enter into force the day after.


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