Temporary support and payment of advances regarding the increased fertiliser prices due to the Middle East crisis
Regulation (EU) 2026/1768 amends the Common Agricultural Policy (CAP) rules to provide exceptional temporary support to farmers affected by increased fertiliser prices resulting from the Middle East crisis, including the de facto closure of the Strait of Hormuz. It also gives Member States greater flexibility for direct-payment allocations and advance payments in 2026.
Exceptional support for fertiliser costs
The Regulation amends Regulation (EU) 2021/2115 to create a new intervention financed by the European Agricultural Fund for Rural Development (EAFRD). Member States may grant exceptional temporary support to active farmers most affected by fertiliser price increases.
Support may cover part of the additional fertiliser costs arising from market developments from 1 March 2026. Member States must calculate these costs by comparing a representative fertiliser price with a benchmark price based on average prices over at least three consecutive months between 1 January 2025 and 28 February 2026. Support may be provided as a unit cost per hectare, differentiated by sector or production system, or on the basis of actual costs incurred.
The support rate may cover up to 50% of additional fertiliser costs. It may reach 80% for farmers subject to commitments or requirements to reduce fertiliser use. Member States must set either a maximum amount per beneficiary or a maximum number of eligible hectares. Payments to farmers must be made by 30 June 2027.
Member States must ensure that beneficiaries have access to knowledge and information on optimising the sustainable use of fertilisers. They must also prevent overcompensation and double funding where this support is combined with other national or Union measures. The intervention does not alter fertiliser application limits established under nitrate-pollution action programmes.
Funding and CAP Strategic Plans
The EAFRD contribution may cover up to 65% of eligible public expenditure for the new support. Up to 25% of each Member State’s annual amount reserved for crisis payments and this fertiliser-price support may be used for the new intervention. Total EAFRD expenditure is capped by the indicative allocations for financial years 2026 and 2027 included in Member States’ financial plans and approved by the Commission.
Member States may provide additional national financing of up to 200% of the EAFRD financing allocated to this intervention. Financial instruments, including standalone working capital, may be used; the normal support-rate limits do not apply to standalone working-capital finance.
EAFRD expenditure for this intervention may be eligible from 22 July 2026, even before a Member State submits the related amendment to its CAP Strategic Plan. Requests to introduce the intervention do not count towards the annual limit on strategic-amendment requests. A new output indicator records the number of farmers receiving support following the fertiliser-price increase.
Direct-payment allocations for 2027
By 31 August 2026, Member States may request a strategic amendment to increase or decrease their direct-payment allocations for calendar year 2027. Adjustments must remain within the Member State-specific maximum amounts set out in the new Annex XVI to Regulation (EU) 2021/2115.
The Commission may amend Member States’ allocations through delegated acts to reflect these adjustments. Requests linked to the 2027 allocation adjustments do not count towards the annual limit on CAP Strategic Plan amendment requests.
Earlier and higher direct-payment advances
The Regulation amends Regulation (EU) 2021/2116 to allow Member States, for claim year 2026, to pay advances of up to 75% of direct payments, instead of the usual maximum of 70%. These advances may be paid before 16 October 2026, including directly after the support application.
Advances paid before 16 October 2026 are deemed to have been made in November 2026 and must be declared accordingly for Commission reimbursement. Member States remain responsible for adapting their management and control systems, carrying out appropriate checks and recovering any undue payments.
The Regulation was adopted under the ordinary legislative procedure. The European Parliament adopted its position on 7 July 2026, and the Council decided on 13 July 2026.
It was published in the Official Journal on 21 July 2026 and entered into force on 22 July 2026. It is binding in its entirety and directly applicable in all Member States.
"This summary was AI-generated and human-reviewed."