EU allocates a package of aid to farmers for the purchase of fertilizers

The European Commission (EC) adopted a Fertilizer Action Plan on May 19, which provides financial support to farmers and reduces Europe’s dependence on imports.

According to the EC press service, the initiative will contribute to ensuring food security and strengthening the bloc’s strategic autonomy, while contributing to the achievement of ambitious climate and environmental goals.

It is noted that recent disruptions in fertilizer supplies and price fluctuations have put farmers across Europe in a difficult situation, exposing their vulnerability to external shocks. Therefore, the adopted action plan combines immediate support measures that will ensure availability and security of supply with long-term measures to strengthen domestic fertilizer production. The plan also provides for accelerating the transition to bio-, low-carbon and circular fertilizers.

It is noted that the EC will provide targeted emergency support to European farmers using existing instruments within the framework of the EU’s agricultural policy. The EU budget is proposed to mobilise a significant replenishment of the agricultural reserve. This financial package will be presented by the summer to provide farmers with liquidity relief ahead of the next production cycle and to help support agricultural production.

In addition, the EC will develop a targeted legislative package that will allow Member States to make full use of the support available under their current Common Agricultural Policy (CAP) Strategic Plans. The initiative will include a new cash-flow aid scheme, more flexibility for advance payments and stronger incentives for efficient farming practices that reduce and optimise fertiliser use.

The EC also plans to support the European fertiliser industry to prevent deindustrialisation, guarantee stable supplies and reduce import dependency. This concerns the wider use of organic fertilizers based on bio-based materials and alternatives to traditional mineral products (algae biomass, soil improvers, microbial solutions, biostimulants and the recovery of nitrogen and phosphorus from sewage sludge).

In addition, the European Commission plans to strengthen control over the circulation of fertilizers, as well as create reserves of necessary substances.

Tags: subsidies, EU, fertilizers