EU ministers have adopted new rules allowing member states to give targeted financial support to farmers facing higher fertiliser and other input costs linked to the recent crisis in the Middle East.
The regulation gives national governments options to provide urgent help to farmers dealing with rising production costs and cash-flow pressures, the Council of the EU announced on Monday.
“Recent disruptions to global supply chains and soaring fertiliser prices have placed significant pressure on our agricultural sector,” said Martin Heydon, Ireland’s Minister for Agriculture, Food and the Marine.
Under the new rules, member states can set up a new crisis liquidity scheme under rural development.
Rural development is one part of the EU’s Common Agricultural Policy, which funds agriculture and rural areas.
Countries will also be able to bring forward direct payments to farmers, and adjust their direct payment allocations for 2027 to reflect national needs and priorities.
How the new funding can work
The new liquidity scheme can be co-financed by up to 65% from the European Agricultural Fund for Rural Development, and can include unused money that might otherwise be lost, according to the Council.
Member states can add national financing of up to 200%, it added.
To speed up delivery and reduce administration, support can be paid as a fixed amount per hectare and implemented through national CAP strategic plans.
The regulation is the final step in the legislative process and will enter into force the day after it is published in the EU’s Official Journal.
The proposal was put forward by the European Commission on 12 June 2026 as part of a wider package responding to the impact of the Middle East crisis on agricultural markets.
That package includes an additional €300 million for the agricultural reserve from the EU budget for 2026.
