According to Bauernzeitung, the additional €300 million would come from uncommitted budget funds within the current EU agricultural budget.
The measure is intended to allow EU countries to draw on the fund to deal with different crisis situations and cushion their impact on the agricultural sector, both at national and regional level. At the same time, Brussels aims to give Member States greater room for manoeuvre to support their farmers through national aid.
More scope for national aid
Some Member States, including France and Spain, have already made use of this type of support mechanism, according to the Flemish agricultural news service VILT. Measures applied include, for example, support for the purchase of agricultural diesel.
The European Commission’s proposal comes against a backdrop of sharply rising prices for nitrogen fertilisers, directly linked to higher gas prices. This situation once again places production costs at the centre of concerns for the European agricultural sector.
Pressure on fertilisers
The increase in fertiliser prices is taking place in a particularly unstable international context. Rising energy costs, together with tensions stemming from the conflict in the Middle East, are affecting the availability and price of strategic inputs for agriculture.
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Added to this is the logistical importance of the Strait of Hormuz, through which around 30% of the world’s synthetic fertilisers are transported. Its blockade since the start of the war in Iran adds another factor of pressure to the international fertiliser market.
A stronger tool for agricultural crises
By increasing the reserve, the European Commission aims to provide the sector with a more powerful instrument to respond to disruptions that may affect production, costs or the stability of farms.
The expansion of the agricultural crisis reserve reflects growing concern over the sector’s vulnerability to external factors, from energy prices to geopolitical tensions and supply chain difficulties.
For European farmers, access to more flexible support mechanisms could prove crucial at a time when production costs continue to affect the profitability of many holdings.
