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The European Union Tightens Measures in the Face of Surging Fertilizer Prices

l’Opinion (avec AFP)

Strasbourg – The European Union is preparing to release funds on Tuesday to help farmers cope with the surge in fertilizer prices, a trend that has only intensified since the outbreak of the conflict in the Middle East. To put pressure, agricultural organizations planned a rally in front of the European Parliament in Strasbourg in the morning, where the Commission is set to unveil its action plan. “Farmers are approaching the next fertilizer purchasing season in a climate of extreme uncertainty, both in terms of cost and actual fertilizer availability,” warns Copa-Cogeca, which brings together the main European agricultural unions. Before the conflict in the Middle East, 30% of the world’s fertilizers passed through the Strait of Hormuz. Since the end of February, fertilizer prices have soared in Europe. Nitrogen-based fertilizers now cost around 500 euros per ton, compared to about 380 euros last winter. In addition, the rising cost of diesel for tractors has led many countries to open their checkbooks to limit the bill. The European Commission, which had promised measures in favor of farmers long before this war, is now under immense pressure. The war “has led to an awareness of the strategic nature of the fertilizer sector.” The European action plan is of “significant political importance,” points out Tiffanie Stephani, at Yara, one of the largest fertilizer producers in Europe. Short-term measures include tapping into the “agricultural reserve,” European funds intended for crisis situations to support the sector. There are still around 200 million euros in this envelope for the year 2026. The situation is particularly difficult for cereal producers. Heavy users of fertilizers, they have been in the red for three years due to a combination of a catastrophic wheat harvest in 2024 and a 2025 season marked by very expensive fertilizers and wheat prices below 200 euros per ton in France, facing increased international competition. Carbon tax not up for debate In addition to addressing the immediate crisis, the European Union, which imports 60% of the fertilizers it consumes, promises to act in the longer term with two key strategies: diversification of supplies and increased European production. Brussels could also relax its rules on nitrates to allow farmers to use more digestate, residues from the anaerobic digestion of organic waste used as alternatives to chemical fertilizers. This relaxation raises concerns among environmental organizations, who fear water pollution. Despite calls from several countries, including France, and from farmers, the European executive has no intention of suspending its Carbon Border Adjustment Mechanism (CBAM) on fertilizers, in place since January 1 to decarbonize the sector and support European producers. On this front, the Commission has “already taken steps to help farmers,” insists a spokesperson, with a temporary suspension of duties on fertilizers, excluding those from Russia and Belarus, and an adjustment of the carbon tax to “significantly mitigate its impact.” Challenging this tax would create a loophole in a mechanism that also involves other polluting sectors such as steel, aluminum, cement, electricity, and hydrogen. And it would benefit European manufacturers, who are trying to increase their production. The European mechanism is “truly essential to ensure fair competition for our sector,” claims Tiffanie Stephani. The European Union will also not backtrack on the gradual increase in taxes on Russian and Belarusian fertilizers, which Brussels would like to permanently abandon in order to cut off Moscow’s resources that fund the war in Ukraine. Faced with Europe’s persistent dependence on imports, one of the major challenges is the development of alternative, low-carbon fertilizers. So far, this ambition has stumbled over production costs that are often very high, mainly due to energy prices. Several projects have been abandoned, including an initiative in Austria called “Green Ammonia Linz.” Adrien DE CALAN © Agence France-Presse