The French government today announced financial support for farmers to buy nitrogen fertilizers, with payments of at least €50/t for purchases until the end of September.
The scheme aims to offset price increases since the start of the war in the Middle East, and to "preserve our productive capacities and secure the 2027 harvests", the government said.
The announcement already triggered increased farmer buying of fertilizers today.
Farmers will receive at least €50/t for purchases of straight nitrogen fertilizers. Where fertilizers account for more than 10pc of a farmer's operating costs, the payments rise to €70/t.
Payments are capped at 50pc of farmers' nitrogen consumption from 2025.
The scheme applies to purchases between 1 June and 30 September. At the end of the period, a report will review the fertilizer price development.
The European Commission has allocated €107mn for the payments, which France may top up to a total of €145mn.
Nitrogen fertilizer prices in Europe rose significantly after the start of the war. French granular urea prices rose by 50pc between the end of February and mid-April, to an average of €753/t fca. Prices then fell below pre-war prices again, to €470/t fca by 2 July, but are now once again on the rise.
