The European Commission adopted, on Wednesday 9 November, a communication suggesting a series of measures to counteract the effects of the war in Ukraine triggered by Russia on the availability of fertilisers for agricultural production.
Janusz Wojciechowski, the European Commissioner for Agriculture, said that this communication was “very important for our farmers, who have been hit hard by high fertiliser prices, which have increased in one year (from September 2021 to September 2022) by 149% (nitrogen fertilisers), 254% (phosphate rock) and 141% (potash)”.
The rise in input prices is fully offset by a rise in agricultural product prices only in three countries (Estonia, Romania and the Czech Republic), the Commissioner said.
Janusz Wojciechowski listed a series of short-term measures to provide immediate availability of fertilisers, such as “giving priority to fertiliser producers for access to natural gas”.
To alleviate the immediate difficulties of farmers, no miracle cure is proposed in the communication. Mr Wojciechowski referred to the crisis framework for State aid, which has already been used to the tune of €3.5 billion for the agricultural sector.
Crisis reserve. In addition, the Commission will discuss with Member States the appropriateness of using the agricultural crisis reserve - amounting to €450 million for the year 2023 - for farmers affected by high input costs. The Commissioner spoke of “exceptional measures financed” by this reserve.
Medium to long-term measures are also suggested.
The Common Agricultural Policy (CAP) Strategic Plans can be used to “reduce farmers’ dependence on chemical and mineral fertilisers” by using precision farming.
At this stage, the Commission has approved 13 strategic plans and the Commissioner was “disappointed” that this priority is only present in six of the strategic plans. If a country asks to change its strategic plan for actions in this area, “we will be ready to approve, in a fast-track procedure, those changes that allow us to reduce our dependence on chemical fertilisers”, said Janusz Wojciechowski.
The Commission will work with Member States to ensure that relevant interventions, such as nutrient management plans, improved soil health, precision farming, organic farming, use of legumes in crop rotation plans, are widely adopted by farmers.
Improving market transparency. The Commission will launch a fertiliser market observatory in 2023 to share data on production, use, prices and trade.
Organic fertilisers. Replacing mineral fertilisers with organic fertilisers wherever possible will reduce the EU’s dependence on gas and the sector’s carbon footprint.
The Fertiliser Products Regulation already ensures better market access for fertilisers made from recovered waste and for green and circular alternatives to natural gas.
The Horizon Europe programme has also invested €180 million in projects on nutrient balance optimisation, alternative fertilisers and nature-based solutions for nutrient management.
The Commission will adopt as well in 2023 an action plan for integrated nutrient management to promote more efficient use of nutrients, taking into account the starting points of the Member States and the Zero Pollution Action Plan.
Transition to more environmentally friendly fertilisers. The Commission will encourage Member States to support investments in renewable hydrogen and biomethane for ammonia production.
Furthermore, the Commissioner defended “a strong agricultural sector and a well-funded CAP, because the CAP provides more stability for our farmers, more sustainability for our future and more food security for our citizens”.
Responding to questions from the press, the Commissioner said that the Commission had considered lifting the anti-dumping measures on fertilisers, but had decided not to do so. “This might be effective in the short term, but we need fertiliser production here in the EU. We cannot risk our industry being affected by the lifting of these measures”, he argued.
EU agricultural organisations and cooperatives are disappointed. “A new communication for (almost) nothing” is the critical reaction of the EU agricultural organisations and cooperatives (Copa-Cogeca) to the communication. For Copa-Cogeca, “the disappointment is as great as the expectations: this new communication simply failed to provide concrete answers to the shortcomings faced by European farmers”. Copa-Cogeca suggested in particular to extend the suspension of import duties to all nitrogen and phosphate fertilisers and suspending the application of the 60 mg/kg cadmium limit for phosphate fertilisers in order to allow delivery from North African countries (Morocco) instead of Russia. The organisation also suggested a derogation from the limits set by the Nitrates Directive and the facilitation of administrative rules related to imports. “We also deeply regret that the use of RENURE materials has not been simplified”, says Copa-Cogeca. On this last subject, “we will think about it when we present the action plan for integrated nutrient management in 2023”, Mr Wojciechowski replied. Fertilizers Europe welcomes the recognition of the European Commission that urgent and targeted action is required to improve current conditions for the European fertiliser industry and European farmers. “When it comes to the long-term future of the European industry and EU food security, a more comprehensive strategy is needed. This strategy should also include measures to support the transition to a low-carbon fertiliser industry”.
Link to the communication: https://aeur.eu/f/3z9 (Original version in French by Lionel Changeur)