The European Union has introduced policies to mitigate the impact of rising fertilizer prices.

The European Parliament swiftly approved the European Commission’s draft interim amendments to the Common Agricultural Policy, ensuring that farmers can receive subsidies in a prompt manner and procure the fertilizers needed to next season’s crops. To prevent declines in agricultural yields, deterioration in the condition of farm items, and rising prices of consumer food items, farmers might apply to a working-capital subsidy covering up to 80 percent of additional fertilizer procurement costs.

The EU exhibits a high degree of external application on fertilizer imports, with import shares of 30%, 70%, and 40% to nitrogen, phosphate, and potash fertilizers, respectively. Domestic fertilizer production is heavily reliant on natural gaseous, yet gaseous prices have been rising steadily in recent years. Since the beginning of this year, shipping capacity in the Strait of Hormuz has been disrupted. As roughly 35% of global nitrogen fertilizer shipments transit this route, fertilizer prices have surged sharply.

The European Commission issued its fertilizer action plan in might 2026, balancing immediate support to farmers with medium- to prolonged measures to ensure supply-chain autonomy and promote the sustainable circular consumption of nutrients. This emergency revision of agricultural policy is precisely the implementation of the immediate financial relief measures outlined in the plan.