European farmers have been footing the bill as fertiliser prices surge in the wake of the Middle East crisis. The Council has now backed an emergency plan to ease the cash crunch, unlocking early payments and targeted aid for the hardest-hit producers. Talks with the European Parliament begin next.
The measure would give member state governments greater flexibility to support farmers most affected by the price spike. It would also allow Common Agricultural Policy payments to start earlier and at a higher rate in 2026. This would help farms cover short-term liquidity needs and protect EU food production.
“The Council has acted swiftly to help farmers facing rising fertiliser costs. We will now work closely with the European Parliament to deliver this support without delay,” said Maria Panayiotou, Cyprus’ Minister of Agriculture, Rural Development and Environment.
Why Brussels is moving now
Fertilisers are essential to agriculture and represent one of the biggest costs in farming operations. The Middle East conflict has pushed up both energy and fertiliser prices, reducing farm incomes in every EU country. The Commission says prices remain well above pre-crisis levels.
The closure of the Strait of Hormuz has disrupted global fertiliser supply chains. The Middle East accounts for roughly a quarter of global ammonia and urea exports. By April 2026, nitrogen fertiliser prices in the EU had risen 40 per cent above December 2025 levels. No new money is on the table. The plan reshuffles existing CAP funds rather than injecting fresh cash.
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The measure is intended to help farmers continue producing and guarantee a stable food supply across the bloc. The proposal is part of a broader Commission package addressing the impact of the Middle East crisis on agricultural input markets. It was presented on 12 June. The Council presidency will now engage with the European Parliament to secure a first-reading agreement. Both institutions have flagged the file as urgent.
What farmers can expect
For 2026, the plan would allow member states to release targeted aid to farmers most affected by the price spike. CAP direct payments could also be advanced and paid at a higher rate than usual. This would give farms faster access to cash they would otherwise receive later in the year.
We will now work closely with the European Parliament to deliver this support without delay.
— Maria Panayiotou, Cyprus’ Minister of Agriculture, Rural Development and Environment
For 2027, governments would gain additional room to tailor direct payment allocations to their national circumstances. The measures are temporary. They draw on funding already built into existing CAP spending plans, with no new money added.
