BRUSSELS (dpa-AFX): The European Commission intends to increase the amount of EU funds advanced to farmers in response to rising fertilizer costs. The Brussels-based authority is proposing that Member States be permitted to pay higher advances earlier this year. Furthermore, EU nations would be allowed to adjust their direct payment plans for the coming year.
According to the proposal, certain unspent funds from the EU Common Agricultural Policy (CAP) should also be deployed rapidly to provide crisis support. For these changes to take effect, they must receive approval from both the European Parliament and the Member States.
Theoretically up to €1.5bn possible
The Commission already proposed this week to deploy just over €500m to assist farmers with fertilizer purchases. According to the EU Commission, Member States could supplement this amount by up to 200 percent using national funds. This could, in theory, bring the total support to €1.5bn.
The EU Commission announced a support package for affected farmers in May and presented a medium-term plan for fertilizer supply. The price of nitrogen fertilizer, in particular, is heavily dependent on natural gas and has risen significantly in light of the conflict in the Middle East and the closure of the Strait of Hormuz.
Tariffs suspended
To help farmers access certain imported fertilizers more affordably, standard tariffs on imports of several key nitrogen fertilizers and their precursors have already been suspended until the end of May 2027. According to the European Commission, this measure could save approximately €60m in import duties./wea/DP/stk
