The European Union (EU) has prepared a financial support package of 540 million euros to provide support to farmers due to increasing fertilizer prices.
The EU Commission made a statement about the new measures it has taken to relieve the pressure of rising fertilizer costs on farmers due to geopolitical tensions and disruptions in supply chains and to protect food security.
In the statement, it was stated that the EU Commission will provide 540 million euros for the purchase of fertilizers to guarantee the harvest of farmers, in addition, it can provide an additional contribution of up to 200 percent from the national funds of EU member countries and the total support can reach up to 1.5 billion euros.
In the statement, it was stated that the EU Commission aims to provide faster and more flexible support to the farmers of the member countries by proposing targeted changes in the Common Agricultural Policy (CAP), and it was stated that among the suggestions are the creation of a new liquidity mechanism for crisis support within the scope of rural development funds, earlier payment of direct agricultural supports to farmers and the ability of member countries to make adjustments to the 2027 direct payment budgets.
In the statement, it was stated that member countries can provide advances for direct payments to farmers before the normal date of October 16 and at higher rates.
In order for these regulations to come into force, the approval of the European Parliament and the EU Council is required.
Conflicts in the Middle East, uncertainties in the Strait of Hormuz, rise in energy prices and restrictions on fertilizer imports from Russia and Belarus have significantly increased fertilizer costs in Europe.
The EU is dependent on foreign sources for fertilizer. The Union meets approximately 30 percent of its nitrogenous fertilizer needs and approximately 70 percent of its phosphate-based fertilizer needs through imports. This makes Europe more vulnerable to external shocks in times of crisis.
