European farmers forced to rethink planting plans due to soaring fertilizer costs

Soaring nitrogen fertilizer prices, triggered by war-related energy disruptions, are forcing European farmers to reduce fertilizer use and reconsider their planting plans for the 2026/27 season. Crops that require high nitrogen inputs, particularly corn and wheat, are under the greatest pressure, raising concerns about yields and future grain supplies.

According to Platts, the spike in European natural gas prices caused granular urea in Italy to jump from €530/mt on February 26 to €700/mt on March 12, directly influencing farmers’ decisions on crop allocation. High nitrogen costs are prompting growers to reduce application rates and shift toward less input-intensive crops.

Corn is bearing the brunt of the fertilizer squeeze. In Italy, farmers are increasingly favoring soybeans over corn due to high fertilizer costs. Total corn planting area in Italy is expected to decline to around 480,000 hectares, down from 541,000 hectares in the previous season. Similar reductions are projected in Poland, France, and Spain.

Wheat is also affected by rising fertilizer costs. In Romania, farmers face difficult decisions amid negative profit margins. Urea prices in Constanta rose to $590/mt in February, up from $520/mt in December and January. Reduced fertilizer use increases the risk of lower yields and diminished grain quality, which is particularly important for export markets.

In Bulgaria and the Balkans, farmers continue to plant corn and wheat but are reducing fertilizer intensity or switching to cheaper alternatives such as calcium ammonium nitrate (KAN), which may also affect yields.

The changes are already being felt in the livestock sector. As relative crop values shift, feed producers are beginning to replace corn with feed wheat, adjusting rations according to economic viability.

Tags: EU, prices, wheat, margin, fertilizers, corn