Nitrogen fertilizer prices in May were about 70 percent higher than the 2024 average. Phosphorus fertilizer prices were 22 percent above average. This has forced farmers to rethink their plans, said Kaie Laaneväli-Vinokurov, head of agricultural policy at the Estonian Chamber of Agriculture and Commerce.

"We see the impact across Europe. It is changing farmers' decisions. For example, Spain and France have already reduced the acreage of crops that require a lot of fertilizer. In Spain, some areas have increased sunflower fields, which need much less fertilizer, by nearly 40 percent in certain regions," Laaneväli-Vinokurov said.

She added that corn, which has a very high fertilizer demand, is seeing lower yields. In Spain, corn production is expected to drop by 30 to 35 percent this year. Romania has reduced grain acreage.

"In Estonia, we know farmers are using less fertilizer, and the same is true across Europe. We see the results in yields, quality, and decisions to sow less grain and fewer crops that require more fertilizer simply to cut costs," Laaneväli-Vinokurov said.

"There have already been reports that some farmers are leaving land fallow because the numbers do not add up when input costs are so high and there is no sign that market prices will compensate," the chamber representative said, adding that this is not yet widespread in Estonia, but early signs exist.

The European Commission has proposed crisis aid from the agricultural reserve. The scheme is based on direct payment ceilings, and under it Estonia would receive €3.1 million, with the option for the state to add up to 200 percent more. Estonia argues that the scheme does not reflect farmers' actual costs.

"We do not agree with this distribution because Estonia has some of the lowest direct payments in the European Union, and the current level does not reflect the additional costs caused by rising fertilizer and fuel prices," said Kristel Maidre, head of the agricultural policy department at the Ministry of Regional Affairs and Agriculture.

Maidre said the real situation in each member state should be considered. "If we have one of the lowest livestock densities and a high dependence on fertilizer imports, then the distribution of support should take into account the country's specific conditions."

The higher a country's livestock density, the easier it is to replace mineral fertilizer with manure. It is also easier for countries that produce fertilizer themselves. Estonia is therefore one of the countries most affected by rising fertilizer prices.

Laaneväli-Vinokurov noted that countries can also support farmers directly. "Earlier, when the crisis began, state aid rules were eased, meaning member states can support producers from their national budgets. They can cover energy costs and fertilizer costs," she said, pointing out that France supports producers with energy cost compensation and Spain has allocated €500 million from its national budget to cover fertilizer costs.

"This already creates unequal competition in our single market because some countries with stronger budgets support their producers while others do not."

Estonia has not discussed direct support for farmers, and it is unclear whether the state will add to the €3 million and how much. Maidre said this will be discussed once the crisis aid proposal is approved.

A fast-track vote will take place on July 17. If Estonia's proposals are not accepted, the country will abstain. Maidre does not believe changes will be made at this stage.

"The vote will take place next week because the issue is urgent. This is emergency aid meant to be delivered quickly so farmers have some certainty that additional costs will be compensated and will have less impact on their production decisions for the next period," Maidre said.

--

Follow ERR News on Facebook and X and never miss an update!