EU boosts liquidity and advance payments to ease fertiliser crisis

The proposed measures were first announced by the Commission in its fertiliser action plan. They include a liquidity scheme and advanced direct payments for farmers to help them pay banks and suppliers. Member States would also be able to adjust their allocations for direct payments for 2027 to avoid farmers who have not yet purchased fertilisers changing their crop choices for the next sowing season.

Parliament is expected to vote on the substance of the proposal during the July plenary session.

Background

The EU relies on imports for 30% of the nitrogen-based fertilisers and 70% of the phosphatic fertilisers used for agricultural production, while production in the EU relies on natural gas. Prices of both, together with energy prices, have been growing due to recent geopolitical events, such as the closure of the closure of the Strait of Hormuz and Russia’s war of aggression against Ukraine.