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Temporary CAP support to help farmers cope with high fertiliser prices
Temporary CAP support to help farmers cope with high fertiliser prices
Nikolina Šajn, Members' Research Service
Summary
On 12 June 2026, the European Commission put forward a proposal for a regulation on temporary common agricultural policy (CAP) support and direct payment advances to help farmers deal with the rising fertiliser prices caused by the crisis in the Middle East. As farmers need to make prompt decisions on buying fertilisers for the next year, Parliament decided to use the urgent procedure, with no report. The vote on the proposal itself is expected during the July 2026 plenary session.
Background
EU farming is heavily reliant on fertilisers, which present significant costs for farmers. According to the Commission, fertilisers account for between 7 % and 8 % of the whole EU agricultural sector's total input costs, and substantially more for arable crops. However, fertiliser prices have been highly volatile since the start of the war in Ukraine, and were, at the end of 2025, more than 60 % above the 2020 level. They increased sharply again due to the crisis in the Middle East and the closure of the Strait of Hormuz. Nitrogen fertiliser prices were up 40 % in April 2026 compared with December 2025, fuelling fears that farmers could either pass on the increased cost to consumers, or reduce fertiliser use and cultivated areas for next year, leading to decreased production and quality.
European Commission proposal
The Commission's proposal includes targeted amendments to the CAP Strategic Plans Regulation and the CAP Horizontal Regulation. It would introduce a new type of rural development intervention to provide exceptional and temporary liquidity support to farmers most affected by the increase of fertiliser prices. The support could cover up to 50 % of additional fertiliser costs, and 80 % for farmers taking part in eco-schemes or agri-environment and climate commitments (AECCs) designed to reduce the use of chemical fertilisers. Up to 65 % of the support could be paid from the rural development funds, while Member States could match that with up to 200 % in national financing. They would also have the possibility to increase advances on direct payments from 70 % to 75 % and pay them before 15 October (which is not possible under the current rules). While the measures would be funded from the existing CAP envelopes, Member States would get more flexibility to move funds between years and CAP pillars.
European Parliament position
On 16 June 2026, the European Parliament decided to consider the proposal using the urgent procedure with no report (Rule 170(6) of the Rules of Procedure). During the July 2026 part-session, Parliament is expected to vote on the proposal itself.
First-reading report: 2026/0150(COD); Committee responsible: AGRI. For further information, see the Legislative Train Schedule.
Classification
Policy areas: Agriculture and Rural Development
Committees: Agriculture and Rural Development (AGRI)
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