BRUSSELS, June 12 (Xinhua) -- The European Commission on Friday proposed a package of measures, including 540 million euros (625 million U.S. dollars) in financial support and targeted changes to the European Union's (EU) Common Agricultural Policy (CAP), to help farmers cope with rising fertiliser prices driven by geopolitical tensions and recent supply disruptions.
According to a statement issued by the Commission, the funding would provide emergency support to farmers most affected by the fertiliser crisis. EU member states may add national funding worth up to twice the amount they receive from the EU. If fully utilized, total available support could reach 1.5 billion euros (1.7 billion U.S. dollars).
The Commission also proposed targeted changes to the CAP to enable member states to deliver support to farmers more quickly. The measures include establishing a new liquidity support mechanism under rural development programs, increasing advance direct payments to farmers and adjusting the 2027 direct payment budget.
Under the proposal, the new liquidity support mechanism could receive up to 65 percent co-financing from the European Agricultural Fund for Rural Development (EAFRD). Member states would also be able to redirect unused EU agricultural funds that might otherwise lapse at the end of the current budget period. To accelerate payments and reduce administrative burdens, some support could be provided as a fixed amount per hectare.
The proposal to mobilize the agricultural reserve still requires approval by EU member states. If endorsed, it is expected to be formally adopted by the end of July. The proposed CAP amendments must also be approved by the European Parliament and the Council of the European Union.
Christophe Hansen, European Commissioner for Agriculture and Food, said the proposed measures would make CAP support more flexible, helping improve farmers' cash flow and providing greater financial certainty.
"Now is the time to choose our food security, our strategic autonomy and our competitiveness. Europe is standing firmly by the side of its farmers and taking decisive action to safeguard the foundations of our food production," Hansen said.
Geopolitical tensions and supply disruptions have pushed up fertiliser prices in recent months, adding to production costs for EU farmers. The Commission warned that higher costs could force farmers to reduce fertiliser use, affecting crop quality and yields, farmers' incomes, food supplies and ultimately consumer prices.
The Commission also said it would continue implementing the Fertiliser Action Plan published on May 19. The plan is intended to help farmers cope with higher costs and tighter supplies, while boosting fertiliser production within the EU and reducing reliance on imports.
The plan includes short-term measures to safeguard fertiliser affordability and supply, as well as longer-term actions to promote bio-based, low-carbon and circular fertilisers.
The Council of the European Union decided in May to suspend customs tariffs for one year on key nitrogen-based fertilisers used in EU agricultural production, including inputs such as urea and ammonia. The suspension does not apply to products imported from Russia or Belarus. ■