EU launches fertiliser action plan after Hormuz closure and Iran war disrupt supply

The European Commission has proposed an action plan on fertilisers in response to soaring prices and scarcity linked to the closure of the Strait of Hormuz and the Iran war. The plan is aimed at supporting farmers facing higher input costs and at reinforcing domestic fertiliser production. It was launched in Strasbourg on Tuesday by agriculture commissioner Christoph Hansen and cohesion and reform commissioner Raffaele Fitto.

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The Commission said recent supply disruptions and price volatility had put farmers across Europe under increasing pressure. It said the measures were intended to help ensure food security and strengthen Europe's strategic autonomy while maintaining climate and environmental goals. Commission president Ursula von der Leyen said the initiative was designed to support a stronger European fertiliser industry, European farmers and innovation in sustainable, home-grown solutions.

The action plan comes after the Commission said it would make EU state aid rules more flexible to allow member states to address the immediate impact of the energy crisis. That flexibility is now being directed towards the fertiliser sector. Member states will also be encouraged to increase funding within existing CAP envelopes for new eco and climate schemes, with the aim of improving fertilisation efficiency, stimulating the use of recycled nutrients and strengthening farm resilience.

The proposal matters because fertiliser is a key agricultural input and price shocks can quickly feed through to farm costs and food production. The Commission said the plan would directly help food security and Europe's industrial resilience. It also framed the move as part of a wider effort to reduce dependence on foreign imports and to build more domestic production capacity.

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The issue has also become linked to wider trade and climate policy. The Irish Government has lobbied for an exemption for fertiliser from the EU's carbon border adjustment mechanism, which applies to carbon-heavy goods imported into the single market from external suppliers. That tax came into effect on 1 January and, according to farming groups, has added to the cost burden on farmers.

The Commission's latest plan suggests it is trying to balance industrial support, climate policy and agricultural affordability at the same time. What remains unclear is how quickly member states will use the new flexibility and how much support will reach farmers in practice. It is also not yet clear whether the Commission will change the carbon border tax treatment of fertiliser.

The response from farming groups suggests the debate over costs, imports and resilience is likely to continue in the coming weeks.

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