The European Commission plans to allocate €500 million to support farmers hardest hit by high fertiliser prices, announced European Commissioner for Budget Pyotr Serafin on Wednesday.
The Commission had already promised financial support for the agricultural sector last month when it presented an action plan, but had not yet specified an amount.
Now, it is aiming for "a support package of €500 million to support the hardest-hit farmers before the end of this year," said Serafin.
To this end, the Commission intends to draw on the remaining €200 million in the crisis reserve for the agricultural sector. Additionally, it is asking the Member States and the European Parliament to release a further €300 million from the European budget.
Prices for nitrogen-based fertilisers have risen sharply because gas prices, which are crucial for fertiliser production, have skyrocketed due to the war in the Middle East and the closure of the Strait of Hormuz.
Threat to food supply
According to European Commissioner for Agriculture Christophe Hansen, some farmers are even questioning whether they should sow winter crops at all. For them, it might be more cost-effective to participate in environmental programmes and thus save on fertilisers.
"And that, of course, poses a huge threat to our food supply," Hansen told the German news agency dpa.
The Commission intends to launch various initiatives to secure the supply of affordable fertilisers in the short and long term, reduce greenhouse gas emissions and decrease dependence on imports. Among other things, it plans to offer incentives for greater use of organic fertilisers.
The EU had previously also scrapped customs duties on imports of nitrogen-based fertilisers until the end of May 2027, with the exception of those from Russia and Belarus.
According to the Commission, this could save importers up to €60 million.
