An Irish MEP has called on the European Commission to establish a dedicated EU fertiliser support mechanism, funded by Carbon Border Adjustment Mechanism (CBAM) revenues.

Independent Ireland MEP Ciaran Mullooly said this could help farmers cope with soaring fertiliser costs.

Mullooly said the commission’s response to the fertiliser crisis was welcome, but "did not go far enough to address the scale of the pressure now facing farmers across Europe".

"Across the EU, farmers expected the commission to bring forward a serious and effective response to the dramatic rise in fertiliser prices," Mullooly said.

"While the measures announced are welcome, they do not confront the core problem.

"They need decisive European intervention and, regrettably, they did not get it."

Mullooly said the crisis is "European in scale" and should not be left to individual member states to manage alone.

"Once again, the EU has effectively left member states to manage a crisis that is clearly European in scale," Mullooly said.

"This is a European crisis affecting European food production and food security, and it requires a coordinated European response."

Fertiliser prices

Mullooly warned that fertiliser prices remain at unsustainable levels for farmers.

"The facts are stark. Fertiliser prices have increased by around 70%," he said.

"Before the war, urea cost roughly €500 per tonne. Today, farmers are paying over €850 per tonne. No farmer can absorb increases of that magnitude."

He told the commission that if the EU is not prepared to suspend the CBAM levy as a temporary crisis measure, then CBAM-related revenues should be channelled directly back to farmers.

"All CBAM-related revenues collected should be channelled directly back to farmers through a dedicated EU fertiliser support mechanism,” Mullooly said.

"If the EU is unwilling or unable to suspend the CBAM levy as a temporary crisis measure, then the least we can do is ensure that this money flows straight back to those who need it most."

In response, Mullooly said the commission acknowledged that the fertiliser market situation is complex and pointed to measures already taken, including the one-year suspension of customs tariffs on key nitrogen-based fertilisers, adopted by the European Council in May.

A review of CBAM is upcoming, and Mullooly said the commission expects it will examine questions around free allocations, auctioning and how revenues could benefit the further development of the sector.

CBAM

Mullooly said the commission response "showed that the issue of CBAM revenues is now firmly on the table".

“My message is very clear: farmers must be at the centre of that discussion," the MEP said.

Mullooly warned that failure to act now could leave farmers facing another serious crisis later this year and into next spring.

"If we do not act, we will have another crisis on our hands next autumn, next winter and next spring," he said.

"Because this time our farmers have not been in a position to buy stock in advance, we will have a serious problem. The EU must act now before this crisis deepens further."