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Farmers across the European Union are set to receive financial assistance after the European Parliament approved emergency measures aimed at easing the burden of soaring fertilizer costs before the next planting season.
The package, adopted on Tuesday, fast-tracks changes to the EU's Common Agricultural Policy (CAP) proposed by the European Commission. The goal is to ensure farmers have access to funding in time to purchase fertilizers and maintain agricultural production.
MEPs backed the proposal by 576 votes to 62, with 15 abstentions. All six Cypriot Members of the European Parliament voted in favor.
Under the new rules, eligible farmers can receive liquidity support covering up to 80 percent of the extra money they have had to spend on fertilizers. EU lawmakers say the funding is intended to help farmers continue producing food without sacrificing output or quality while limiting pressure on consumer prices.
Member states will also be able to increase advance direct payments from 70 percent to 75 percent. The revised rules allow affected farmers to receive those payments immediately after submitting their applications instead of waiting until after October 16 under the existing system.
Governments will also have additional flexibility when allocating next year's budgets for direct farm payments.
The European Parliament said the new support measure will be monitored through the existing reporting framework for the CAP Strategic Plans Regulation. The changes to advance payments and budget allocations will not alter the current monitoring, evaluation, or reporting requirements.
Before the legislation can take effect, it must receive formal approval from the Council of the European Union and be published in the Official Journal of the European Union. The measures will become law the day after publication.
Fertilizer costs remain a significant expense for European farmers, accounting for as much as 16 percent of production costs. The EU imports around 30 percent of the nitrogen fertilizers and 70 percent of the phosphate fertilizers used in agriculture. At the same time, fertilizer production within the bloc depends heavily on natural gas.
Recent geopolitical developments have pushed up both fertilizer and energy prices. These include Russia's war against Ukraine and instability in the Middle East, particularly the closure of the Strait of Hormuz, which has added to pressure on global supply chains and production costs.
