EU proposes €540 million in farm relief amid fertiliser crisis
CAP adjustments would give member states faster, more flexible support
15 June 2026
2 minute read
By: The European Commission has proposed measures to help farmers facing sharply rising fertiliser costs and to support Europe's food security, according to a release from the Commission.
The Commission is proposing two concrete short-term measures. First, it is providing financial relief to help farmers who need to buy fertilisers to guarantee their next crops, aiming to mobilise €540 million (US$609 million) in total in the coming weeks. The Commission proposed earlier this week to boost the agricultural reserve with an additional €300 million (US$338 million) from the EU budget 2026 on top of remaining funds. Member states will be able to top it up by up to 200% of national funds, bringing the total available financial support to a potential €1.5 billion (US$1.69 billion).
Second, the Commission proposes targeted adjustments to the Common Agricultural Policy (CAP) enabling member states to provide farmers with faster and more flexible support to access fertilisers. These measures include a new liquidity scheme under rural development for crisis support, the option for member states to pay direct payments to farmers earlier, and the possibility for member states to adjust their direct payment budget for calendar year 2027.
The new liquidity scheme can be co-financed up to 65% from the European Agricultural Fund for Rural Development (EAFRD) and include unused funds that may otherwise be lost. Member states may add national financing of up to 200%. Support can be paid as a fixed amount per hectare and implemented through CAP Strategic Plans.
Member states will also have the possibility to provide advanced direct payments to farmers before Oct. 16 with an increased rate of advances, helping them to improve cashflow.
The Commission's proposed targeted CAP legislative amendments will be sent to the European Parliament and the Council for approval.
The agricultural reserve proposal will be submitted for a vote to member states in the Committee on the Common Organisation of the Markets. If agreed, final adoption is scheduled by the end of July 2026.
Fertilisers represent a significant share of farmers' costs. In recent months, geopolitical shocks and supply disruptions have driven fertiliser prices up, placing increasing pressure on farmers across Europe. Rising costs may force farmers to use less fertiliser, risking lower quality and yields, which may affect harvests, farm incomes, wider food supply and ultimately food prices.
On May 19, 2026, the Commission presented its Fertiliser Action Plan to support farmers facing rising fertiliser costs and scarcity, reinforce domestic production and reduce Europe's dependency on imports.
