Nitrogen prices will double by 2030 as a result of the EU’s continued application of the Carbon Border Adjustment Mechanism (CBAM) and the phasing out of carbon emissions allowances for imported fertilisers.
A new economic assessment claims CBAM will hit agricultural output right across the EU and cut Irish farm incomes by at least 12% between now and the end of the decade.
Irish fertiliser usage is projected to fall by at least 16% in the south and east as a result of the higher nitrogen prices, with up to 30% of a reduction forecast for the west.
A 7.7% drop in farm incomes is estimated for the EU as a whole, as a result of the hike in fertiliser costs.
Usage of mineral N fertilisers is projected to drop by 22% across the EU as a consequence of the higher prices, with application levels of phosphorus (P) and potassium (K) expected to contract by 13% and 19% respectively.
Higher nitrogen prices will result in a 21% decline in EU fertiliser production and a 37% drop in fertiliser imports.
SHARING OPTIONS