Fertilisers are critical for crop growth, yield stability and quality. Farmers need reliable access to affordable fertilisers. The Fertiliser Action Plan adopted by the Commission focuses on ensuring fertilisers’ affordability, predictability in supply and resilience for agricultural production.
On 17 July 2026, EU countries approved the Commission's plan to allocate €540 million in financial relief to farmers impacted by the Middle East crisis due to increased fertiliser and energy costs.
Why fertilisers matter?
Mineral (inorganic) or bio-based (organic) fertilisers provide essential plant nutrients such as nitrogen (N), phosphorus (P), and potassium (K). Nitrogen fertilisers, in particular, play a vital role in growing cereals, vegetables and arable crops, directly supporting the EU’s agricultural competitiveness and self-sufficiency.
Fertilisers are a strategic input to agriculture and food production. Further to the adoption of the fertiliser action plan, the Commission has published an outline of good practices for improving nutrient management. This overview presents the main actions planned in the CAP Strategic Plans towards this objective.
Fertilisers are important for EU agricultural productivity
EU farming is heavily reliant on fertilisers, which provide the necessary nutrients for crops to thrive. In the absence of fertilisers, crop yields would decrease substantially, emphasising the critical need for these substances in agricultural production.
Fertilisers cost increases affect EU farmers' competitiveness
Fertiliser costs represent 7 to 8% of the total input costs of the whole EU agricultural sector, but much more for certain sectors. Farmers need reliable access to affordable fertilisers.
- When fertiliser prices go up, EU farmers usually cannot charge higher prices to cover the extra cost, so their profits fall. To cope with this, many farmers use less fertiliser than needed, which leads to lower crop yields.
- Over time, higher input costs impact competitiveness in comparison to lower-cost producers in other countries outside the EU.
- Since 2021, the EU fertiliser market has faced persistent volatility.
- After the Russian invasion of Ukraine and the 2022 energy crisis that followed, prices eased but did not return to the pre-COVID levels. They rose again in 2025, aggravated in February 2026 by the Middle East crisis.
- April 2026, overall nitrogen fertiliser prices were 71% higher than the 2024 average.
- Fertiliser affordability (ratio of fertiliser prices and cereal prices) is at its lowest since 2022. This is partially led by lower cereal prices compared to 2022.
Supply chain challenges
The EU remains reliant on imports for mineral fertilisers and key raw materials, such as urea and ammonia.
This increases the sector’s exposure to global market disruptions and price volatility.
- EU fertiliser production relies strongly on natural gas, which is both a key raw material and an important energy source for nitrogen fertiliser production.
- Natural gas availability determines about 70% of the costs.
What happened in 2026?
The closure of the Strait of Hormuz in 2026 has led to disruption in supply chains for fertilisers. This situation has led to increases in fertiliser and energy prices and affected the availability of key raw materials for EU fertiliser production.
The Middle East accounts for about 35% of global nitrogen fertiliser exports. Despite the EU’s limited direct dependence on the region (about 3% of ammonia imports and between 1-2% of nitrogen fertiliser imports), fertilisers are global commodities, so disruptions push prices up. Disruptions in the region risk tightening global supply and increasing competition for alternative sources.
Fertiliser Action Plan
On 19 May 2026 the Commission adopted the Fertiliser Action Plan. The Plan includes actions to support both EU farmers and the domestic industry.
- Bringing together fertiliser producers, farmers and EU countries.
- Ensuring the availability and affordability of home-grown fertilisers.
- Improving predictability for producers and users and support the decarbonisation.
- Predictable supplies for farmers
- Predictable demand for fertilisers producers
- Predictable policy conditions for investment
- Immediate liquidity relief for farmers ahead of the next production cycle.
- Targeted CAP package made available under EU countries' current CAP Strategic Plans, including a new liquidity scheme, more flexibility for advanced payments and promotion of environmental payments which improve fertilisation efficiency and strengthen farm resilience where needed.
- Encouraging farmers to use eco-schemes and agricultural advisory services to improve nutrient management efficiency.
- Reinforcing of EU production and encouraging diversification of supply to reduce dependencies on raw materials.
- Ensuring sustainable nutrient management by:
- accelerating the transition to decarbonisation, low fossil and circular fertilisers;
- supporting the development and uptake of organic fertilisers and alternatives to conventional inorganic fertilisers, in particular bio-based fertilisers, through nutrient recycling, phosphorus and nitrogen recovery, biomethane and biogas pathways, digestate valorisation, microbial solutions and other innovative technologies.
- Addressing regulatory and market barriers to create a more integrated Single Market for inorganic fertilisers, and lead markets for bio-based and low-carbon fertilisers.
- Assessment of stockpiling and other options for key fertilisers and inputs, including seasonal or minimum stocks, joint procurement or other instruments to increase resilience and to stabilise price volatility.
- Enhancing fertiliser market transparency through a systematic reporting framework integrated in the Fertiliser Products Regulation.
- Strengthening monitoring through the Fertilisers Market Observatory as a platform for market intelligence, price and stocks.
- Monitoring competition in the EU fertiliser market and apply competition law instruments where appropriate.
Today, the European Commission adopted the Fertiliser Action Plan: an initiative to support farmers facing rising fertiliser costs and scarcity, reinforce domestic production and reduce Europe's dependency on imports.
Timeline
- 17 July 2026
Adoption of the EUR540 million emergency package
- 19 May 2026
Fertiliser Action Plan
- 29 April 2026
The European Commission adopted a new State aid framework to enable Member States to support the EU economy in the context of the Middle East crisis. The framework applies also to farmers to compensate for high fertiliser and fuel prices.
- April 2026
The Commission hosted a high-level dialogue on fertilisers in order to listen, exchange and explore policy options with key actors across the chain. The results of the Dialogue fed into the Fertilisers Action Plan.
- February 2026
The closure of the Strait of Hormuz has led to further disruption in supply chains.
- February 2026
The Commission proposed temporary duty-free tariff rate quotas for several key nitrogen fertilisers and inputs for their production (ammonia, urea).
- End of 2025
The Commission adopted an exception to the standard calculation rules, to reduce the impact of the Carbon Border Adjustment Mechanism (CBAM) on fertilisers.
- 2022
At the start of the Russian war of aggression against Ukraine, the Commission adopted a Communication which presented a wide range of actions and guidance on how to tackle the challenges that EU farmers and industry, as well as developing countries, are facing.
