European commission announces aid package for farmers amid supply chain disruption

Since early 2026, global trade instability due to conflicts in the Middle East has caused food price increases of 2 to 3% in the European Union. While consumer prices remain relatively stable compared to previous crises, agricultural producers face severe income pressure due to rising costs for energy, fertilizers, and plant protection products. To address this, the European Commission announced a support package on Friday to ensure food security and lower production costs. The initiative includes mobilizing 540 million euros for fertilizer support and adding 300 million euros to the 2026 agricultural reserve. With national co-financing of up to 200%, the total support could reach 1.5 billion euros. Furthermore, the Commission is introducing flexibility within the Common Agricultural Policy, allowing faster direct payments and a new co-financed liquidity plan for farmers. These measures aim to mitigate future inflationary pressures and protect the economic viability of the agricultural sector.