The European Commission has proposed €540 million in EU funding and changes to farm support rules to help farmers facing higher fertiliser costs.
The Commission intends to mobilise €540 million “in the coming weeks” to support farmers who need to buy fertilisers for upcoming crops, it informed in a statement on Friday.
Member states would be able to add up to 200 per cent in national funding, taking the potential total to €1.5 billion.
The EU executive said it had earlier proposed boosting the agricultural reserve by an additional €300 million from the 2026 EU budget, alongside remaining funds.
Fertiliser is a major cost for farms and is used to improve crop growth. Prices have risen in recent months because of geopolitical tensions and supply disruptions.
Faster payments and a new liquidity scheme
Alongside the funding package, the Commission proposed targeted adjustments to the Common Agricultural Policy, the EU’s main framework for farm payments, to allow quicker and more flexible support for access to fertilisers.
The proposed changes include a new crisis “liquidity scheme” under rural development support, the option for member states to pay some direct payments earlier than usual, and the possibility to adjust their direct payment budgets for calendar year 2027.
Under the new liquidity scheme, support could be co-financed up to 65 per cent from the European Agricultural Fund for Rural Development, with member states able to add national financing of up to 200 per cent.
Member states would also be able to pay advance direct payments before 16 October at a higher advance rate to help farmers’ cashflow.
The proposed legislative changes to the CAP will be sent to the European Parliament and the Council for approval.
The agricultural reserve proposal would be put to a vote of member states in the Committee on the Common Organisation of the Markets, with final adoption scheduled by the end of July 2026 if agreed.
