On 13 July 2026, the Council adopted a Regulation amending the Common Agricultural Policy (CAP) rules to provide exceptional temporary support to farmers affected by severe fertiliser price increases resulting from the Middle East crisis. The new rules also allow higher advance payments for direct payments in 2026 and enable Member States to adjust their direct payments allocations for 2027.
The Regulation introduces a new crisis intervention under the European Agricultural Fund for Rural Development (EAFRD), allowing Member States to grant exceptional temporary support to active farmers most affected by fertiliser price spikes. The support covers additional fertiliser costs incurred from market developments starting 1 March 2026, calculated as the difference between a representative price and a benchmark price based on an average over at least three consecutive months between 1 January 2025 and 28 February 2026. Support rates are set at up to 50% of additional costs, rising to 80% for farmers with commitments to reduce fertiliser use under certain CAP eco-schemes. Payments must be made by 30 June 2027, and Member States must set a maximum amount or maximum hectares per beneficiary to avoid overcompensation. The EAFRD contribution rate is up to 65% of eligible public expenditure, with a financial ceiling limiting total EAFRD expenditure for crisis payments to the sum of indicative allocations for financial years 2026 and 2027.
Additionally, the Regulation increases the maximum advance rate for direct payments from 70% to 75% for 2026 and allows Member States to pay advances earlier than 16 October 2026, with such payments deemed made in November 2026 for reimbursement from the 2027 budget. Member States may also adjust their direct payments allocations for calendar year 2027 by up to the limits set in a new Annex XVI, via a strategic amendment request submitted by 31 August 2026.
The new intervention is excluded from the obligation to contribute to result indicators in Annex I of the CAP Strategic Plan Regulation, and it shall not increase limits on land application of fertilisers under the Nitrates Directive. The Regulation enters into force the day after its publication in the Official Journal of the European Union.
Stakeholder impact The Regulation provides direct financial relief to EU farmers facing higher fertiliser costs, particularly those in arable and livestock sectors heavily reliant on synthetic fertilisers. The higher advance payment rate (75%) and earlier payment dates improve farmers' cash flow in 2026. However, the support is capped and temporary, and the requirement to avoid overcompensation may limit the total aid received. National authorities face administrative burdens in calculating additional costs, setting maximum amounts, and ensuring compliance with no-overcompensation rules. The flexibility to adjust 2027 direct payments allocations gives Member States more control over their CAP budgets but may lead to uneven support across the EU. Environmental groups may welcome the higher support rate (80%) for farmers with fertiliser-reduction commitments, while noting that the crisis intervention does not increase limits under the Nitrates Directive.
Institutional follow-up The Regulation, adopted by the European Parliament and the Council, amends existing CAP regulations and is directly applicable in all Member States. Member States must now implement the new crisis intervention through their CAP Strategic Plans, submitting amendment requests by 31 August 2026 for the direct payments allocation adjustments. The European Commission will oversee compliance and may issue further guidance on calculating additional costs and avoiding overcompensation.