European Commission proposes 200 million euros emergency aid for farmers amid fertilizer price surge

The European Commission has proposed emergency support for farmers facing soaring fertilizer costs, a crisis driven by the closure of a key shipping route amid Middle East conflict. The plan, unveiled Tuesday, aims to stabilize the agricultural sector and prevent a broader food security crisis.

Fertilizer prices have surged due to the effective closure of the Strait of Hormuz, a vital maritime chokepoint through which about a third of global seaborne fertilizer shipments pass. The disruption has compounded existing pressures on farmers already grappling with high energy costs linked to the war in Ukraine. In Europe, the price of nitrogen fertilizers has risen to approximately 500 euros per tonne, up from 380 euros last winter.

The Commission's immediate response involves disbursing roughly 200 million euros remaining in the European Union's agricultural crisis reserve. Officials said they intend to propose increasing that reserve by a substantial amount before the summer, with one commissioner suggesting the goal is to at least double it. The support will be targeted at the most affected farmers, such as cereal producers who require vast amounts of fertilizer.