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

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On July 8, the European Parliament adopted a package of supporting policies aimed at alleviating the operational pressures faced by domestic farmers due to the soaring prices of fertilizers. Member states may increase the advance payment rate for direct agricultural subsidies from 70% to 75%, allowing disbursement upon submission of applications without waiting until the currently prescribed date of October 16; moreover, each country will be granted greater authority to adjust its budget for direct agricultural subsidies in the following year. The bill was ultimately adopted with 576 votes in favor, 62 against, and 15 abstentions. The bill still requires formal approval by the Council of the European Union and publication in the Official Journal; it will enter into force on the day following its publication.

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.

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