Fertilizer needs for the current harvest year appear to be “covered” according to the European Commission.
But 2027 is a completely different matter – as Agriculture and Food Commissioner Christoph Hansen said today (Tuesday 19 May) summer is coming and “this is the time when farmers will decide what to grow and how much fertilizer they want to buy.”
Today, the committee adopted a new resolution Fertilizer business planIt said it was “an initiative to support farmers facing high fertilizer costs and scarcity, boost domestic production and reduce Europe’s dependence on imports.”
According to Commissioner Hansen, this action plan “is about securing Europe’s food production, competitiveness and strategic independence.”
He said today that the Commission will provide a “major financial” support package to farmers affected by high fertilizer prices before the summer.
The commissioner added, “This is our commitment and we will present it in June with the amended budget.”
But the big question revolves around what is the value of this financial support to farmers?
According to the Commissioner, there are currently more than 200 million euros in the EU agricultural reserve, but he believes that “we can at least double this amount.”
This has not yet been agreed by the European Parliament and member states, so the amount of 400 million euros is still a long way off.
However, according to Commissioner Hansen, the Commission is also set to introduce “targeted legislative proposals on the existing CAP to give more flexibility to Member States in how they manage their CAP plans.”
“We will provide them with options to redirect their unused funds into new liquidity plans and pay their annual CAP payments in advance, with less bureaucracy,” he added in Strasbourg today.
According to the Commission, this could take the form of greater flexibility for down payments and “stronger incentives for more efficient agricultural practices that reduce and improve fertilizer use, switch to biofertilizers, and invest in farm resilience where needed.”
The Commissioner expressed his confidence that “combining these measures with agricultural reserves and flexibility in national plans will provide sufficient cash flows to operate farms and continue production.”
Nitrates
Aside from the cash support, there was an indication today that the European Commission would support “the proportionate implementation of the Nitrates Directive when it comes to so-called calendar farming, which are periods when farmers can or cannot spread manure.”
“Climate conditions are changing,” Commissioner Hansen said.
“The Commission will provide further clarifications to member states, which will allow them to adapt these rules to the reality of agriculture and climatic conditions in their countries.”
Will this help farmers save money in the long term, perhaps, but there appears to be no immediate relief when it comes to the Carbon Border Adjustment Mechanism (CBAM).
The Fertilizer Action Plan states that the committee will prepare a report assessing how “costs related to CBAM and the Emissions Trading System (ETS) are passed through to fertilizer prices paid by farmers and ultimately to food prices.”
Meanwhile, Commissioner Hansen emphasized that “money does not grow on trees or fields.”
Fertilizer business plan
Overall, the European Commission today proposed a number of “short-term” measures to support farmers including:
- Big financing package for farmers before summer;
- Greater flexibility under CAP rules – new measures would help Member States better use existing CAP tools that can achieve:
- Launching a new EU Fertilizer Partnership between fertilizer producers, farmers and Member States to improve market stability and predictability;
- Short-term steps to facilitate the use of digestate materials under the Nitrates Directive;
- Increase market transparency by providing updated data on fertilizer availability and prices;
- Support for biogas and biomethane to help scale up projects and remove barriers;
- The EU may consider using emergency market measures if the situation requires it;
- A joint information package for Member States on common agricultural policy tools, nutrient management and biofertilizers, as well as stronger advisory support;
- Temporary aid bases can be used to support farmers affected by the Middle East crisis, in addition to existing support tools.
