- EU to propose a substantial budget-backed liquidity package for farmers before summer, plus CAP flexibility including a new liquidity scheme and advanced payments
- Measures to boost domestic and circular supply cover ammonia and urea tariff relief, wider use of organic/bio-based fertilisers, digestates, and nutrient recovery from sewage sludge, with cohesion funds for biogas/biomethane and wastewater investments
- ETS review may grant fertiliser-sector flexibility conditional on decarbonisation and increased bio-based/circular fertiliser output, with incentives combining CAP, the European Competitiveness Fund and ETS revenue
- Launch an EU fertilisers value‑chain Partnership, strengthen the Fertilisers Market Observatory, require CBAM/ETS pass‑through reporting, and assess stockpiling or joint procurement to secure key fertilisers
Overview
The European Commission adopted a Fertiliser Action Plan combining immediate measures and longer-term steps to support farmers, reinforce domestic supply, and accelerate low‑carbon and circular fertilisers.
Immediate support for farmers
The Commission will propose before summer a substantial budget boost to the agricultural reserve and targeted exceptional support via CAP instruments, plus a legislative package for CAP flexibility including a liquidity scheme, advanced payments, incentives for nutrient‑efficient practices and wider use of bio‑based fertilisers; measures will also promote nutrient management, Farm Advisory Services, facilitated use of digestates with safeguards and clarified Nitrates Directive implementation.
Domestic production, circularity and decarbonisation
Actions will promote organic and bio‑based fertilisers, alternatives such as algae biomass, soil enhancers, microbial solutions and biostimulants, and nutrient recovery from sewage sludge; cohesion funds may support biogas/biomethane and wastewater investments; the ETS review could offer sector flexibility conditional on decarbonisation and increased bio‑based/circular output, and incentives for carbon farming may combine CAP, national funds, the European Competitiveness Fund and ETS revenue.
Market transparency, preparedness and international engagement
The plan launches an EU fertilisers value‑chain Partnership and a first policy dialogue, strengthens the Fertilisers Market Observatory and early‑warning monitoring, will report on CBAM/ETS pass‑through to prices, and will assess stockpiling, seasonal/minimum stocks or joint procurement while pursuing international cooperation to diversify supplies and investment partnerships.
Context
Fertiliser price volatility and supply shocks risk lower application rates and yields; prior steps include a CBAM exception (1% markup) and proposals in Feb 2026 for temporary duty‑free TRQs for ammonia and urea, plus a temporary State aid framework and stakeholder dialogue in April 2026.
