Fertiliser prices: European Parliament approves support for farmers

The European Parliament adopted on July 7 measures designed to alleviate the impact on EU farmers of rising fertiliser prices.

The rules proposed by the European Commission (EC) were adopted with 576 votes in favour, 62 against and 15 abstentions.

MEPs decided to fast-track the changes to the EU common agricultural policy (CAP) as proposed by the EC, to ensure farmers get aid in time to buy fertilisers for the next growing season.

To prevent a decline in production or food quality and growing prices for consumers, farmers will be able to receive liquidity support worth up to 80 per cent of the additional fertiliser costs they incur.

EU countries will also have the possibility to increase advances on direct payments from 70 per cent to 75 per cent and pay them to affected farmers directly after they apply for them (and not only after October 16 as defined by the current rules).

Member states will also have more flexibility to adjust their direct payments budgets for next year.

Fertiliser prices have a direct impact on food production as fertilisers account for up to 16 per cent of input costs for farmers.

The EU relies on imports for 30 per cent of the nitrogen-based fertilisers and 70% of the phosphatic fertilisers used for agricultural production.

EU fertiliser production meanwhile relies on natural gas.

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

(Photo: Darla Hueska/ Unsplash)