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Europe Daily Bulletin No. 13887
SECTORAL POLICIES / Agriculture

European Commission proposes financial relief and support for EU farmers over fertiliser

On Friday 12 June, the European Commission presented a series of emergency measures aimed at supporting European farmers facing a fresh surge in fertiliser prices, exacerbated by geopolitical tensions in Middle East.

On Friday, the Commission proposed an amendment to the regulations governing the national strategic plans implementing CAP. The text notably introduces a new type of exceptional and temporary intervention, financed by the European Agricultural Fund for Rural Development (EAFRD), and intended to provide targeted liquidity support to the farms most affected. This liquidity scheme may be co-financed up to 65% from the EAFRD, supplemented by national financing of up to 200%, and paid in the form of lump sums per hectare, in order to speed up its deployment and limit administrative burdens.

Another proposed lever is the possibility for Member States to make advanced direct payments, with an increased rate of advances, before 16 October 2026, in order to quickly ease farmers’ cash-flow pressures. The European Commission is also opening the way to a reallocation of direct payment envelopes for 2027, offering Member States greater flexibility in the final year of implementation of the CAP strategic plans.

The draft proposal will now be examined by the European Parliament and the Council of the EU.

These measures are intended to avoid a drop in fertiliser use, which could lead to lower yields, deterioration in crop quality and, ultimately, tensions in food supply and prices.

The proposal forms part of the action plan on fertilisers presented last May, which combines immediate aid with a longer-term strategy aimed at strengthening European production and reducing dependence on imports.

In addition, the European Commission has stated that activation of the agricultural crisis reserve will have to be approved by EU Member States by the end of July 2026. It intends to mobilise a total of €540 million, including €300 million from a draft amending budget for 2026 (see EUROPE 13885/12), to strengthen the agricultural reserve, in addition to funds still available, which is estimated to be €240 million. The European Commission has also specified that Member States may supplement this amount with national funding of up to 200%, bringing total potential financial support to €1.5 billion.

Read the proposal on CAP strategic plans: https://aeur.eu/f/mbo (Original version in French by Lionel Changeur)

Contents

SECTORAL POLICIES
ECONOMY - FINANCE - BUSINESS
EXTERNAL ACTION
SECURITY - DEFENCE
COURT OF JUSTICE OF THE EU
FUNDAMENTAL RIGHTS - SOCIETAL ISSUES
COUNCIL OF EUROPE
NEWS BRIEFS