The European Commission today approved a package of measures to help agricultural businesses cope with rising fertilizer costs. These include using the Common Agricultural Policy’s crisis reserve, with member states able to co-finance aid by up to 200%, the possibility of advancing CAP payments at higher rates before October 16, and several measures under rural development plans. Member states will also be able to co-finance this aid by up to 65%.

New flexibility within national CAP strategic plans is also envisaged. The practical issue is liquidity: bringing forward CAP payments and expanding national co-financing could ease pressure on agricultural budgets before the new season. For businesses and cooperatives, however, the impact will depend on the decisions taken by individual states, the timetable for launching procedures and the criteria applied.

It will also be necessary to assess how much of the additional resources will offset the actual increase in fertilizer costs without passing further price rises down the food supply chain. The new measures follow the €540 million aid package announced under the European Fertilizer Action Plan and adopted on July 27. “The green light on fertilizers announced today by the European Commission is another step by Europe in support of farmers, and it comes thanks to the work Italy has been carrying out in Brussels for months,” Minister Francesco Lollobrigida commented. “Since January, when the crisis had not yet erupted, we have raised the issue of high fertilizer costs at the Brussels negotiating table. Today we have confirmation of what we were asking for: strengthening and using the CAP crisis reserve and, above all, the possibility of advancing direct payments before October 16, a measure with a major impact for farmers.”