The EU is preparing financial aid for farmers amid the fertilizer crisis
The European Union is preparing emergency financial measures to support farmers affected by the sharp rise in fertilizer prices, which followed the escalation of tensions in the region around Iran and supply disruptions through the Strait of Hormuz. Brussels recognizes the risks to the planting season and food security and plans to expand aid instruments for farmers, Reuters reports.
The European Union is preparing a new support package for farmers facing pressure from soaring fertilizer prices, a direct consequence of instability in global energy and transport markets following the escalation of tensions around Iran.
According to Reuters, the European Commission is considering the possibility of allocating additional emergency aid, as disruptions to shipments through the Strait of Hormuz have already triggered a chain reaction in the market: not only are fertilizer raw materials becoming more expensive, but so is natural gas, a key component in their production. Officials in Brussels emphasize that nearly a third of global fertilizer trade previously passed through this strait, so any disruption to logistics is immediately felt in Europe, which remains one of the largest importers of agricultural chemicals and energy resources.
The European Commission states that it will present concrete proposals for additional support for farmers by summer and also plans to increase the reserve fund under the EU’s Common Agricultural Policy to respond more quickly to price shocks, although the exact amounts of funding have not yet been disclosed.
Separately, the EU is discussing the possibility of expanding tools for member state governments, including advance payments to farmers and funding for technologies that would reduce dependence on traditional fertilizers or facilitate a transition to biological alternatives, which could partially stabilize the market in the long term. Other ideas include creating strategic fertilizer reserves to prevent similar crises in the future, as well as expanding the use of digestate—a byproduct of biogas production that contains nutrients but is currently restricted by European regulations due to the risk of nitrogen excess.
However, environmental organizations are already warning that relaxing the rules could backfire and lead to soil and water pollution, emphasizing that quick economic solutions must not undermine long-term environmental safety.
The EU notes that state aid rules were already amended last month, allowing countries to more actively support companies and farmers affected by rising fertilizer prices, and this mechanism could be expanded further if the market situation does not stabilize.
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