With fertiliser costs now 70% higher than a year ago, the European Commission is racing to shield farmers from volatile global markets. Its plan aims to cut the EU’s dependence on imported fertilisers and boost domestic alternatives.
“I recently met a cereal farmer in France who has a farm of 400 hectares. He told me that if the situation does not improve, he will not plant anything on half of it to avoid using expensive fuel for his tractor and buying fertilisers.”
With these words, Agriculture Commissioner Christophe Hansen painted a clear picture of the troubles faced by European farmers.
“And this seems to be the general thinking among farmers, big and small,” he added during a press conference on Tuesday.
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Hansen argued that the situation threatens not only farmers, but also EU food security and competitiveness. Warning that “dependencies are vulnerabilities,” Hansen said the EU’s structural reliance on imported fertilisers leaves the bloc exposed to volatility on global markets and insisted that “the time to act is now.”
He backed up his argument with figures.
“It is simple: the more expensive energy gets, the more expensive fertilisers get. Fertilisers already cost 70% more now than in 2024. And they were already too expensive in 2024.”
Although there is not a continuing shortage of major fertiliser products‚ the biggest issue is price volatility․
Funding expected by summer
In response, the Commission promised to submit a “substantial financial support package to affected farmers” before the summer. In addition‚ it plans to relax the use of funds distributed under the Common Agricultural Policy (CAP) budget‚ allowing member states to redirect unused funds towards liquidity schemes while easing administrative conditions on advance payments․
The Commission is also proposing to double a reserve fund available for crisis situations in the agricultural sector from just over €200mn to almost €400mn. However, Hansen said, this would need to be agreed by member states and the European Parliament․
Push for domestic and organic alternatives
The Commission’s ambitions go beyond funding. The plan also highlights the importance of expanding domestic alternatives to imported chemical fertilisers, particularly organic and bio-based products. The Commission identified digestates from biogas production, algae, microbial solutions and nutrient recovery from sewage sludge as key tools to strengthen Europe’s strategic autonomy.
“We must reduce our dependence on imported fertilisers by making it easier to develop and use European alternatives.”
— Christophe Hansen, Commissioner for Agriculture and Food
In response to EU Perspectives’ question on how the EU could replace fertiliser imports without passing on the cost to EU farmers in the short term‚ Hansen said the Commission was looking for both short-term and long-term solutions: advanced CAP payments‚ retargeting unspent rural development funds and precision farming pilot schemes․
Hansen also stated that Europe was failing to use potentially helpful organic fertilisers available within its borders‚ such as manure‚ digestates and animal byproducts․ He went on to say that the Commission estimates that current use of organic fertilisers could replace around 20 per cent of chemical fertilisers imported into Europe․
CBAM stays
The Commission also does not plan to relax or pause the EU’s Carbon Border Adjustment Mechanism (CBAM), which places a levy on the greenhouse gas content of selected imported goods, including fertilisers. Brussels argues that weakening the mechanism would put European fertiliser producers at a competitive disadvantage.
The Commission will also consider the option of voluntary and compulsory labeling or minimum blending with low-carbon or bio-based fertilisers․ An EU fertiliser value chain partnership involving producers‚ farmers and member states will also be established to promote market transparency and coordination․
