Brussels unveils £1.3bn package to protect harvests

European farmers could receive up to €1.5 billion (£1.3 billion) in support as Brussels moves to protect harvests from soaring fertiliser costs.

The European Commission has set out short-term measures to help farmers hit by sharp rises in fertiliser prices and supply disruption.

The proposals follow the Commission’s Fertiliser Action Plan, which is designed to improve affordability, support supply and reduce Europe’s reliance on imports.

While UK farmers will not be eligible for the EU package, the proposals highlight the continuing pressure fertiliser costs are placing on growers on both sides of the Channel.

For UK arable producers, fertiliser prices remain a key factor in crop planning, cashflow and margins ahead of future sowing seasons.

The Commission said geopolitical tensions and supply disruption had pushed fertiliser prices higher in recent months, increasing pressure on growers ahead of future sowing seasons.

If farmers cannot afford the fertiliser they need, they may be forced to cut use, risking lower yields, poorer crop quality, weaker farm incomes and pressure on food supplies.

The Commission is proposing €540 million (£467 million) in EU financial relief to help farmers buy fertiliser for their next crops.

Member States would be able to add national funding of up to 200%, potentially lifting the total package to €1.5 billion (£1.3 billion).

Earlier this week, the Commission proposed adding €300 million (£259 million) from the 2026 EU budget to the agricultural reserve, alongside remaining funds already available.

The Commission is also proposing changes to the Common Agricultural Policy to allow Member States to deliver faster and more flexible help.

These include a new rural development liquidity scheme for crisis support, the option to make direct payments to farmers earlier, and greater flexibility over direct payment budgets.

The new liquidity scheme could be co-financed by up to 65% from the European Agricultural Fund for Rural Development.

Unused rural development funds that might otherwise be lost could also be used, while Member States would be able to add national financing of up to 200%.

To speed up delivery and cut administration, payments could be made as a fixed amount per hectare through CAP Strategic Plans.

Member States would also be able to make advance direct payments before 16 October at an increased rate, helping farmers improve cashflow.

Christophe Hansen, European Commissioner for Agriculture and Food, said the proposals showed Brussels was acting on its commitment to farmers.

“Today, we are delivering on our commitment to support farmers facing soaring fertiliser costs,” he said.

He said the proposed package would provide €540 million in EU financial support, with national top-ups able to increase relief to €1.5 billion for farmers.

“This support must reach those who need to buy fertilisers for the next sowing season and secure their future harvests,” Mr Hansen said.

He added that the proposed CAP flexibilities should help improve cashflow and provide greater certainty.

The proposed CAP legislative changes will now be sent to the European Parliament and the Council for approval.

The agricultural reserve proposal, covering the €540 million (£467 million) in EU financial relief, will be submitted to Member States for a vote.

If approved, final adoption is expected by the end of July 2026.

The wider Fertiliser Action Plan was presented on 19 May 2026 and combines immediate support for affordability and supply with longer-term action to strengthen domestic fertiliser production.

It also aims to improve supply resilience and accelerate the shift towards bio-based, low-carbon and circular fertilisers.

The Commission said the package was intended to reduce farmers’ exposure to future fertiliser shocks, while strengthening food security and Europe’s domestic fertiliser supply.