On Wednesday 10 June, the European Commission adopted a draft amending budget providing for an additional €300 million for the agricultural sector, in order to support farms facing liquidity pressures, notably because of rising fertiliser costs (see EUROPE 13874/4).
This increase in the crisis reserve, promised by Commissioner for Agriculture Christophe Hansen, is included in the Commission’s draft amending budget No. 2 for 2026 (see EUROPE 13885/27).
The €300 million envelope will top up the agricultural crisis reserve, an instrument of the common agricultural policy (CAP) intended to provide exceptional and targeted aid in the event of market disruptions or shocks to producers’ incomes. As around €200 million remains in the 2026 crisis reserve, the total amount that can be mobilised to support farmers in crisis amounts to €500 million.
This mobilisation is intended to respond to “severe liquidity challenges” faced by European farmers. The text must still be examined by the European Parliament and the Council of the EU as part of the budgetary procedure.
Mixed reaction from Copa-Cogeca. According to Copa-Cogeca, the proposal to increase the agricultural crisis reserve to €500 million, as part of its action plan on fertilisers, is a first positive step in response to soaring prices. Member States will also be able to supplement this allocation with national subsidies of up to 200% of the amounts received. However, Copa-Cogeca is calling for caution. Spread across millions of farmers, the aid will remain insufficient to offset the additional costs associated with fertilisers in the short and medium term. The organisation also highlights the Carbon Border Adjustment Mechanism (CBAM) applied to fertilisers, the cost of which (borne solely by farmers) is estimated at €820 million from 2026 onwards. This burden is set to persist and increase, even after the crisis in the Strait of Hormuz.
Finally, Copa-Cogeca regrets that the Commission has not chosen to temporarily suspend the CBAM, a measure which, in its view, could provide immediate relief to European farmers.
Draft budget plan: https://aeur.eu/f/ma3 (Original version in French by Lionel Changeur)