The Council of the European Union has approved “urgent and targeted financial support” to farmers struggling with high fertiliser prices as a result of the war in the Middle East.
An extra €300 million will be injected into the EU’s agricultural reserve meaning half a billion Euro will be available to support farmers.
“Recent disruptions to global supply chains and soaring fertiliser prices have placed significant pressure on our agricultural sector,” said Ireland’s Minister for Agriculture, Martin Heydon, who is chairing a meeting of EU agri ministers in Brussels today.
“Today’s decision demonstrates that the European Union is determined to respond swiftly and decisively to support European farmers and our food security,” he added.
European fertiliser prices remain volatile, driven by soaring gas prices and Middle East supply disruptions.
Nitrogen prices have spiked significantly, prompting the EU to temporarily suspend import duties on ammonia and urea and inject extra funding into the agricultural reserve.
The EU is worried that food prices could be driven up next year if farmers cut back on fertiliser supplies.
“The new liquidity scheme can be co-financed by up to 65 percent from the European Agricultural Fund for Rural Development (EAFRD) and it can include unused funds that may otherwise be lost,” the Council of the European Union said.
Member states will be able to add national financing of up to 200 percent.
“To ensure rapid delivery and reduce the administrative burden, the support can be paid as a fixed amount per hectare and implemented through the CAP strategic plans.”
The Council said ministers were acting to respond to rapidly “evolving geopolitical challenges, support European farmers, strengthen the resilience of the agricultural sector, and protect food security across the EU.”