2026-08-03
The European Commission has approved emergency measures to help farmers cope with a sharp rise in fertilizer costs, opening the way for faster aid payments and new liquidity support across the bloc as agricultural producers face pressure from geopolitical tensions, the Middle East crisis and supply chain disruptions.
Italy’s agriculture minister, Francesco Lollobrigida, said the decision marked a concrete step by the European Union in support of farmers after months of pressure from Rome to address the issue in Brussels. The measures fall under the Common Agricultural Policy and are meant to ease cash flow strains at a time when production costs have climbed and many farms are under financial stress.
At the center of the package is a new crisis liquidity scheme within rural development programs. The support can be co-financed up to 65% by the European Agricultural Fund for Rural Development, including unused funds that might otherwise lapse. Member states will also be allowed to add national financing of up to 200%, significantly increasing the amount available to farmers. The aid may be distributed through fixed sums per hectare, a format intended to speed delivery and reduce administrative burdens.
The Commission is also allowing member states, until October 16, to pay direct aid advances to farmers at a higher rate than in previous years. That change is designed to improve farm cash flow before the main payment calendar is completed. Brussels has also granted more flexibility in how member states manage resources earmarked for direct payments in 2027, giving governments room to adjust spending to soften the impact of higher fertilizer prices.
Lollobrigida said Italy had raised the fertilizer issue at every meeting of EU agriculture ministers since January, before the current crisis fully escalated. He described the Commission’s approval as confirmation of what Italy had been seeking: stronger use of the CAP crisis reserve and, above all, earlier direct payment advances. He said Italy had already moved quickly on advance CAP payments, distributing €1.67 billion to farmers, and would seek to use as much leverage as possible from the crisis reserve.
For Italy, the measure provides €45.6 million in EU funding. With national co-financing of up to 200%, that amount could rise to nearly €137 million. Farm group Confagricoltura welcomed the regulation, saying it comes at a moment when primary agriculture is under heavy pressure and linking higher production costs closely to the fallout from the Middle East crisis.
According to Confagricoltura, the aid will be granted using objective criteria tied to actual economic losses suffered by farmers. The organization also said the support can be combined with other financial assistance financed through the first pillar of the CAP or through rural development programs, which could broaden its effect for eligible producers.
The new measures fit into a wider EU response on fertilizers and agriculture. They complement an exceptional €540 million financial support package adopted on July 27 under the bloc’s fertilizer action plan. The broader goal is to limit the damage from rising input costs while strengthening food security, strategic autonomy and competitiveness across the European Union.
Although the package is aimed at agriculture as a whole, it could matter for beverage producers as well because vineyards, barley growers and other crop suppliers that feed wine, beer and spirits production are exposed to many of the same fertilizer costs. If some of that pressure eases, it may help stabilize farm finances in parts of Europe’s drinks supply chain, though any effect will depend on how quickly national governments deploy the funds and how broadly growers qualify for support.
The Commission’s move reflects growing concern in Europe that input inflation is no longer a short-term problem but a threat to farm viability and food production capacity. By combining faster payments, emergency liquidity tools and room for national top-ups, Brussels is trying to give member states more flexibility to respond before higher costs translate into deeper losses in fields and orchards across the continent.