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Image header Agence Europe
Europe Daily Bulletin No. 13862
WAR IN MIDDLE EAST / Agriculture

European Commission planning two-stage strategy for fertilisers

A provisional version of the European Commission’s fertiliser action plan, dated 27 April and obtained by Agence Europe, reveals a two-stage strategy for tackling the crisis: emergency measures for 2026 and a reform aimed at reducing dependence on imports and speeding up the green transition.

The Commission is due to adopt this action plan on 19 May (see EUROPE 13857/2).

Since the beginning of 2026, European farmers have been hit by a new wave of fertiliser price rises. According to Commission data, in April 2026, nitrogen fertilisers cost 70% more than their average for 2024, following a 40% rise between February and April.

The crisis in the Middle East has disrupted global supplies, as this region accounts for 20-30% of ammonia and urea exports.

The draft action plan describes a European industry in difficulty.

Ammonia production capacity has fallen by 10% in recent years, in the face of international competition (United States, Trinidad and Tobago, Russia).

The Commission is proposing a strategy to improve the accessibility and affordability of fertilisers in the short term, to strengthen strategic autonomy and resilience through domestic production and decarbonisation, and to improve transparency and dialogue.

Emergency measures. The Commission mentions financial support for farmers through the mobilisation of Common Agricultural Policy (CAP) funds: advance payments and transfers between Pillars I (direct aid) and II (rural development), eco-schemes to improve fertilisation efficiency, and increased funding for investment in precision farming (sensors, drones). The draft refers to the temporary State aid framework designed to support farmers affected by the crisis in the Middle East.

Trade measures. The Commission is talking about suspending customs duties. Since 20 February 2026, there has been a one-year exemption from Common Customs Tariff duties for ammonia, urea and other nitrogen fertilisers (excluding Russia and Belarus), with estimated savings of €60 million.

With regard to the Carbon Border Adjustment Mechanism (CBAM), the Commission notes the mark-up reduced to 1% for fertilisers (compared with 10 to 30% for other products in 2026-2028) and mentions a review of the default values planned by December 2027.

Diversification of supplies. The Commission mentions the creation of green ammonia corridors between the EU, Africa and the Middle East (Global Gateway and Team Europe) as well as the evaluation of strategic storage facilities for essential fertilisers.

Transparency and cooperation. A Memorandum of Understanding could be adopted by the third quarter of 2026, committing producers, farmers and other stakeholders to ensuring the availability and accessibility of fertilisers while decarbonising the industry. The Commission also suggests that the Internal Market Emergency and Resilience Act (IMERA) could be activated in vigilance or emergency mode, with fertilisers designated as ‘critical goods’, allowing for enhanced surveillance and grouped purchases.

Biogas and digestates. The Commission is considering: - support for biogas and biomethane projects through the Recovery and Resilience Facility and cohesion policy to reduce dependence on mineral fertilisers and create additional income for farmers; - the use of digestates (organic fertilisers produced from biogas) as an alternative to mineral fertilisers.

Structural measures (2026-2034). The Commission is proposing to strengthen domestic production and resilience. With regard to the decarbonisation of industry, it highlights:

- green ammonia, supported by the Innovation Fund, the Hydrogen Bank and the future Industrial Decarbonisation Bank;

- bio-based fertilisers, with the definition of a regulatory framework through the future Biotech Act to recognise them as substitutes for fossil fertilisers.

The Commission is also planning a revision of Regulation 2019/1009 on fertilisers to harmonise the rules on low-carbon and bio-based fertilisers, and a reduction in cadmium limits in phosphate fertilisers.

Agricultural transition. Financial support for farmers is envisaged through a redistribution of revenues from the Emissions Trading System (ETS) to finance the transition to bio-based, low-carbon fertilisers. 

The Commission is also planning better nutrient management (transfer between surplus and deficit regions), increased support for precision farming in the future CAP 2028-2034 (satellites, drones, sensors) and the promotion of nitrogen-fixing crops.

Transparency and follow-up. The European fertiliser market observatory will be strengthened by systematic data collection (prices, stocks, production).

The Commission also plans to continue the high-level dialogue between industry, farmers and political decision-makers, with quarterly meetings.

Finally, an assessment of the impact of CBAM and ETS on agricultural prices is planned for the fourth quarter of 2026. (Original version in French by Lionel Changeur)

Contents

SOCIAL AFFAIRS - EMPLOYMENT
ECONOMY - FINANCE - BUSINESS
WAR IN MIDDLE EAST
EXTERNAL ACTION
SECTORAL POLICIES
Russian invasion of Ukraine
INSTITUTIONAL
NEWS BRIEFS