The European Union will release emergency funds to support farmers facing soaring fertiliser costs linked to disruptions caused by the Iran war, according to measures presented in Strasbourg on Tuesday, May 19th.
Brussels has faced pressure to act as rising fertiliser prices threaten to increase food costs across the bloc.
EU agriculture commissioner Christophe Hansen declared
We will support European farmers so they can buy the fertilisers they need for the next harvesting season.
About a third of fertilisers shipped by sea pass through the Strait of Hormuz, which has been effectively closed due to the Iran war. The World Trade Organization has warned that the disruption threatens global food security, particularly in Africa and South Asia.
As a first step, the European Commission will release about €200 million from its agricultural crisis reserve, amid plans to increase the fund before the summer.
Nitrogen fertiliser prices in Europe have risen from €380 to about €500 per tonne, according to Commission data. EU farming lobby group Copa-Cogeca stated that
European farmers are facing the wall and can’t wait any longer.
Fertilisers account for more than 7% of input costs for the EU farming sector in general, rising to 16% for arable crop farmers, according to Brussels. EU officials said they are also working to diversify fertiliser supply chains and increase domestic production capacity to reduce dependence on imports. They added that further measures could follow depending on market conditions and the evolution of global energy and food prices in the coming months.
Following months and months of agricultural protests, new proposals from Brussels and Strasbourg could struggle to find credibility among European farmers.
