The European Commission will find half a billion Euro to try and fend off a farming fertiliser crisis.
The war in the Middle East is causing fertiliser supply issues.
The price of some fertilisers has risen by as much as 70 percent over the past two years. The Gulf region accounts for approximately 35 percent of global nitrogen fertiliser exports. Gas from the Middle East is also used to make more fertiliser in Europe.
The EU insists that whilst European farmers have enough stock for the current growing season, they will soon need to make decisions for the next one.
Christophe Hansen, the European Agriculture Commissioner, warned last month that if farmers plant less due to fear of insufficient fertiliser, there will be less produce and food prices will be forced up.
Following last month’s Fertiliser Action Plan, the European Commission has now more than doubled the agricultural crisis reserve from €200 million to €500 million.
The European farming union, Copa Cogeca, said it was “an initial positive step”, but more will need to follow.
“In fact, the amount announced by the Commission, when spread across the millions of European farmers affected, will fall far short of compensating for the additional costs generated by soaring fertiliser prices in the short and medium term,” the union warned.
The Agricultural Reserve is an emergency fund within the EU’s Common Agricultural Policy (CAP) designed to support farmers during market disruptions, price volatility, or exceptional crises affecting production and distribution.
Copa Cogeca pointed out that the fertiliser issue was not the only crisis facing farmers and the reserve would likely be needed to offset other emergencies too.