Fertilizer Prices in Europe Remain 60% Above 2020 Levels Amid Tariff Suspension Proposal

The European Commission has proposed a temporary suspension of tariffs on fertilizers in an effort to support the agricultural sector across the European Union. The proposal was discussed during an informal meeting of agriculture ministers from the 27 EU member states, where officials also addressed the future framework and budget of the Common Agricultural Policy (CAP) and other challenges facing European farmers.

The meeting took place under the leadership of Maros Sefcovic, European Commissioner for Trade and Economic Security; Christophe Hansen, Commissioner for Agriculture and Rural Development; and Olivér Várhelyi, Commissioner for Health and Animal Welfare. During the session, the Commission presented several measures aimed at helping producers, including a temporary suspension of tariffs on ammonium and urea. These nitrogen-based fertilizers are widely used in European agriculture and are considered essential for growing cereals, vegetables, and forage crops.

The tariffs in question are Most-Favored Nation (MFN) duties, which are applied uniformly to all non-EU countries under World Trade Organization rules. The Commission’s goal is to lower import prices by suspending these tariffs temporarily. Officials emphasized that safeguards would be put in place to ensure that the benefits of this measure reach farmers directly, rather than being absorbed by intermediaries or distributors.

Christophe Hansen told reporters after the meeting that keeping fertilizers affordable is crucial for farmers’ incomes and for Europe’s food security. He stressed the need to diversify supply sources and strengthen domestic production capacity. According to Maros Sefcovic, fertilizer prices remain about 60 percent higher than they were in 2020, putting pressure on profit margins for European farms.

The Commission also highlighted the importance of boosting local production to reduce dependency on external suppliers. In addition to discussing fertilizer tariffs, agriculture ministers reviewed the multi-year budget framework for the CAP, global competitiveness in the agricultural sector, and ways to simplify administrative processes for farmers.

Discussions focused on concerns about increased volatility and uncertainty in global markets. The need to maintain a strong competitive position for European farmers was a central theme throughout the talks. The Commission stated that these measures are part of broader efforts to address both immediate pressures on farmers and long-term challenges facing European agriculture.