EU's fertilizer plan seeks to avert farm unrest

The European Commission's Fertiliser Plan

The European Commission is set to unveil a fertiliser plan aimed at preventing another wave of rural unrest ahead of critical negotiations on the bloc’s agricultural budget. This comes as the ongoing conflict in the Middle East continues to drive up fertiliser prices, creating a challenging environment for farmers across the EU.

Over the past two years, rural unrest has shaken several European capitals, including Belgium, France, and Germany. Brussels is now increasingly concerned that rising energy and fertiliser costs could lead to renewed backlash against the EU’s climate agenda. High fertiliser prices could potentially reduce crop yields, lower food production, and deepen resentment towards green policies, especially in regions where far-right and populist parties are gaining ground.

Key Components of the Fertiliser Plan

In the draft fertiliser plan, which may undergo slight changes before its official presentation, farmers are expected to benefit from emergency EU agriculture funds and advance payments. However, this support comes with conditions: farmers must adopt more sustainable practices, such as reducing synthetic fertiliser use and embracing bio-based alternatives.

While no new funds for farmers are anticipated in the Commission’s plan, it proposes short-term actions to "improve access" to affordable fertilisers. This implies a reallocation of EU agricultural funds under the Common Agricultural Policy (CAP). Christophe Hansen, the European Commissioner for Agriculture, mentioned that €200 million remains in the CAP’s crisis reserve and expressed intentions to "at least double this amount" to support farmers.

A senior Commission official told reporters that targeted "exceptional support" will be provided to the most affected farmers. More money will also be mobilised under the EU budget to reinforce agriculture research. However, the exact figures are still under discussion.

Environmental Concerns and Criticisms

Environmentalists have raised concerns about the EU’s CAP proposal under the 2027-2034 budget, calling it "highly problematic." They argue that the proposal fails to boost funding for protecting and restoring nature and agroecosystems. A joint statement from four Brussels-based environmental NGOs questioned how real change can be achieved without dedicated funding for these areas.

The EU has an annual agricultural crisis reserve of at least €450 million to help farmers cope with market disturbances, animal diseases, and extreme weather events. The CAP fund is currently split into two parts: one for active farmers and another for rural villages. However, the Commission proposed dismantling the traditional farming budget in the next seven-year budget and merging it into a single, larger fund worth €6.3 billion over seven years—a move that farmers have resisted.

Farmers’ Resistance and Budget Deadlines

Copa Cogeca, an industry group, called the Commission’s CAP funding proposal "unacceptable," advocating for alternatives that respect the nature of the CAP. They want it to remain a "stand-alone policy with two pillars, a secure and independent budget and inflation-proof funding."

EU leaders have set a strict deadline of late 2026 to agree on the exact total amount of cash available under the CAP for the seven-year budget.

Boosting Domestic Production

The Commission’s plan also focuses on boosting domestic fertiliser production, which remains 10-15% below pre-Ukraine invasion levels. The bloc’s fertiliser dependency became evident during the 2022 energy crisis when several plants scaled back or shut down due to unprofitable conditions.

With global markets facing turmoil due to the closure of the Strait of Hormuz, the Commission noted that domestic EU production has been "highly impacted" by energy prices, particularly for nitrogen fertilisers, where prices are now 70% above the 2024 average.

Commissioner Hansen acknowledged the current limitations in domestic fertiliser production. He highlighted that some farmers have to pay to get rid of their farm litter because of restrictions on nitrate and nitrogen use. He suggested that if the crisis continues, the limits on these substances might need to be reviewed.

Bio-Based Solutions and Global Competition

Nicoló Giacomuzzi-Moore, executive director at the Commission-backed Circular Bio-Base Europe Joint Undertaking, pointed out that bio-based fertilisers could replace a significant share of synthetic nutrients. Studies suggest that substituting just 20-40% of synthetic fertiliser use could reduce costs during price spikes while offering environmental benefits.

However, even with growing interest in bio-based solutions, they are more costly than traditional fertilisers. Giacomuzzi-Moore warned that Europe is not alone in this race, with third countries investing heavily and ready to compete to bring prices down.

"We are certainly among the best in research and innovation," he said. "Now we must become the best at ensuring a reliable path to market and we have to do it urgently."

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