The European Union’s Fertiliser Action Plan has not impressed farmer and co-op representatives.

The stated aims of the package, launched by European Commissioner for Agriculture Christophe Hansen on Tuesday, include increasing the short-term availability and affordability of fertiliser, and strengthening transparency through the supply chain.

However, while the proposals include cutting unnecessary red tape and market barriers, there will be no change to the Carbon Border Adjustment Mechanism (CBAM) in the short-term.

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There will be a review of free allocations under the emissions trading scheme, which could see CBAM abated.

However, this process will take some time.

CBAM is forecast to cost European farmers €800m in 2026, rising to €12bn by 2034.

“The Commission will quickly propose to mobilise the EU budget to increase the agricultural reserve for a substantial amount to provide fast relief for the farmer,” said Hansen.

He also pledged to free up state aid rules to allow member states support their farmers, and to facilitate early payout of direct payments.

“Fertilisers are not only an agricultural issue, it’s a question of Europe’s food resilience, strategic autonomy and capacity to act,” he said.

“The prices are constantly increasing. Farmers need reliable access to affordable fertilisers. Insufficient fertilisers lead to problems with food affordability in Europe and food security globally”.

Hansen acknowledged the volatility that has affected fertiliser markets since 2020.

Nitrogen fertiliser prices are about 70% higher than the 2024 average, and significantly higher than pre-COVID-19 levels.

The Russian invasion of Ukraine caused massive fertiliser price increases in 2022, mirrored this year by rises due to the US/Iran conflict.

In January of this year, fertiliser prices were hiked further by the introduction of CBAM.

It is projected to cost Irish farmers over €11m in its first year of operation and will rise significantly each year to 2034.

Urea products have been most affected, despite protected urea being the preferred product for farmers to use from a carbon emissions viewpoint.

“It’s hard to overstate how far off the pace the Commission is when it comes to the fertiliser issue in Ireland and across the EU,” said Irish Farmers Association (IFA) president Francie Gorman.

He was part of a Copa-Cogeca protest in Brussels on Tuesday.

“Unless the Commission intervene, we are looking at a very serious situation in terms of food production. It’s inexplicable that this is not getting the attention it should be getting,” he added.

ICOS is calling for the Government to introduce a €40m state aid package, making use of temporary EU flexibility, to incentivise fertiliser procurement in 2026 to ensure adequate supply for 2027.

It estimates the CBAM levy on non-EU CAN at €115/t in 2026, and like the IFA, wants CBAM suspended immediately.