An organisation representing young farmers in the EU is calling on heads of state and government to take action on the increasing cost of fuel and other farm inputs.

CEJA, the umbrella group of young farmers and rural youth organisations (of which Macra is a member) claimed that "market speculation" is the main driver behind the current price volatility.

Ahead of a meeting of EU heads of state and government in the European Council this week, CEJA has called for "coordinated action", that is efficient and consistent, to address the crisis.

The group called for close market monitoring and swift action to "bring young farmers the confidence boost they need to face and mitigate the effects on their farms".

According to CEJA, market speculation is causing a sharp increase in energy costs, namely gas, oil and diesel, which is increasing farm production costs.

The organisation also said that, while fertiliser supplies are secure in most regions for the coming sowing seasons due to stockpiling strategies, this is only a short-term situation, due to fall of transit through the Straits of Hormuz in the Persian Gulf, which is largely closed off due to conflict in the region.

CEJA said there is a "high risk" of a coming "supply shock" because of this, with "potentially disastrous, long-standing consequences both on availability and prices of fertilisers".

CEJA also said that the humanitarian crisis unfolding because of the conflict, as well as the effects of energy costs on the purchasing power of consumers, are "of primary concern".

The farm organisation called on the agri-food value chain to "show resilience and solidarity".

According to CEJA, the effects of the Middle East conflict "shed light once again" on structural challenges in the sector relating to input reliance.

CEJA has proposed a number of measures to address the issues.

In the short term, the group has called for price volatility and speculation to be addressed as a "top priority" by establishing close marker monitoring through the EU Fertilisers Market Observatory, and by ensuring transparency on energy pricing practices.

CEJA called on the European Commission and member states to start preparing financial support measures and temporary flexibility to tax rules.

The organisation called for targeted compensation outside of the Common Agricultural Policy (CAP), allowing for short term liquidity support.

CEJA said that energy cost relief systems are necessary to reduce or adjust taxes, including on agricultural fuel and gas.

In the medium term, the young farmer group called for measures to support stockpiling and other storage strategies that would allow for the support of risk mitigation measures implemented by farmers.

CEJA also called on EU decision makers to reconsider a suspension of the Carbon Border Adjustment Mechanism (CBAM) to "guarantee supply accessibility".

In the long term, CEJA called for developing fertiliser production in the EU to reduce reliance on imports, and to accelerate energy transition in agriculture to reduce reliance on fossil fuels.

"Europe's young farmers call on the European Commission and member states to coordinate their action and maintain a strong vision in the handling of the crisis," CEJA said.