EU Agriculture Commissioner Phil Hogan remains determined that EU farmers should start to see lower fertilizer prices.

“If their input costs are going down, it should be passed on the producers,” he told the Irish Farmers Journal.

In recent weeks, EU officials have examined the issue and note that European gas prices have not yet fallen in line with oil prices, mainly due to contracts of three to nine months in duration.

“Prices in new contracts should go down to follow oil,” an official said. Europe is heavily dependent on imported gas from Russia.

Officials commented that there are effectively three gas prices in the world: Japan (high), Europe (medium) and US (low).

“Gas price in the US is now pegged to coal rather than oil, due to the shale gas revolution,” sources said.

In 2014, Irish farmers spent €565m on fertilizer, so any reduction in prices would have a significant impact on profit margins.