The escalation of conflict in the Middle East and disruptions to raw material supplies have pushed fertiliser prices higher, causing serious difficulties for farms across Europe. This week, the Council of the European Union approved a support mechanism for farmers. According to Poland’s Ministry of Agriculture, the country is set to receive more than €66 million, while the total support package could reach PLN 850 million once national funding is added. Some Members of the European Parliament, however, argue that the proposed assistance remains insufficient.
“For several months, we have been working to ensure that Polish farmers receive support following the outbreak of the conflict between the United States and Iran and the resulting price increases, particularly in gas, which in turn led to a dramatic rise in fertiliser prices. We have succeeded. A solution has now been adopted under which farmers will be able to benefit from special per-hectare payments financed with both European and national funds,” Krzysztof Hetman, a Polish People’s Party MEP and member of the European People’s Party group, told the Newseria news agency.
During an urgent July session, Members of the European Parliament approved changes to the EU’s Common Agricultural Policy proposed by the European Commission in order to provide assistance to farmers. The measures were formally approved by the Council of the EU on 13 July and will enter into force after publication in the Official Journal of the European Union.
Under the new rules, farmers will be eligible for liquidity support covering up to 80% of the additional fertiliser costs they have incurred. Member states will also be allowed to increase advance payments under direct payment schemes from 70% to 75% and pay them to affected farmers immediately after an application is submitted, rather than waiting until 16 October, as required under the current rules.
Countries will also receive greater flexibility in adjusting their direct payment budgets for the following year.
“Poland will receive the largest allocation of all the member states. We are talking about tens of millions of euros,” Hetman said.
Poland Could Mobilise More Than PLN 850 Million
The European Commission plans to mobilise a total of €540 million, of which Poland is expected to receive €66.6 million. Member states will be able to supplement the assistance with national funding amounting to as much as 200% of their EU allocation.
Across the European Union, this could increase the total amount of available assistance to €1.5 billion. On 10 July, Poland’s Ministry of Agriculture announced that the country would use the full amount of permitted national co-financing. As a result, once state budget funding is added, the Polish support package could exceed PLN 850 million.
“If national funds are added, I am convinced that we will be able to offset the dramatic increase in prices faced by farmers,” the EPP politician said.
Waldemar Buda, a Law and Justice MEP and member of the European Conservatives and Reformists group, is more sceptical about the effectiveness of the measures.
“I do not claim that these solutions will have a significant impact on fertiliser prices, including in Poland. Much of the assistance consists of allowing governments to provide state aid, subsidies or other forms of reimbursement for farmers’ fertiliser costs. We are aware that the Polish government is not willing to support farmers to an extent that would be adequate and meaningful from the point of view of the price they ultimately pay. I therefore regard this as a diagnosis of the problem, but not as a solution,” Buda said.
Fertiliser Costs Have Risen Sharply
Fertilisation is one of the most important costs in agricultural production. In 2023, it accounted for approximately 16% of the total expenditure incurred by arable farmers.
According to the justification accompanying the regulation, fertiliser costs paid by EU farmers in the fourth quarter of 2025 were 62% higher than in 2020. In April 2026, nitrogen fertiliser prices increased by a further 40% compared with December 2025.
“When these tens of millions of euros allocated to Poland are calculated per tonne or per farmer, the resulting amounts are very small. It is therefore impossible to describe this as genuine assistance for farmers,” Buda said.
“They will certainly continue to face difficulties because of fertiliser prices, since the problems affecting supply and production costs cannot be resolved over such a short period.”
The European Commission has warned that the worsening affordability of fertilisers could encourage farmers to reduce their use. This could negatively affect crop quality and yields, lead to a reduction in cultivated land and ultimately weaken agricultural production across the European Union.
The European Parliament notes that the EU depends on imports for 30% of the nitrogen fertilisers and 70% of the phosphate fertilisers used in agricultural production.
Tariffs on Russian and Belarusian Fertilisers
“One of the measures we managed to introduce was prohibitive tariffs of 50% on Russian and Belarusian fertilisers, which effectively removed them from the market. This gave our fertiliser plants and chemical industry some breathing space,” Hetman said.
“Farmers expected fertilisers produced by the domestic chemical industry to be available at affordable prices. That would certainly have been possible had it not been for the conflict between the United States and Iran. Farmers now expect greater stability. This is why we are introducing measures such as fertiliser subsidies.”
The EU fertiliser industry relies heavily on natural gas. In the production of nitrogen fertilisers, gas accounts for between 60% and 80% of total production costs.
The sector is therefore particularly vulnerable to geopolitical events, including Russia’s invasion of Ukraine and the closure of the Strait of Hormuz.
“Poland has the necessary production capacity, but the problem is that production is extremely expensive because gas prices are currently very high,” Buda said.
“The price of fertiliser is determined primarily by the cost of the gas used in production. Russian gas was once a cheap component, but sanctions are now in place, and rightly so. This means that production has become extremely expensive.”
“In addition, many countries that previously produced fertilisers using Russian gas are now importing them from Central and Eastern Europe. This creates shortages and increases production costs. These are the consequences we are seeing.”
Higher EU Tariffs Entered into Force in 2025
An EU regulation increasing tariffs on fertilisers imported from Russia and Belarus entered into force on 1 July 2025.
In addition to the existing customs duty of 6.5%, an additional charge of between €40 and €45 per tonne was introduced. The supplementary tariff will gradually increase to between €315 and €430 per tonne by 2028.
