France Introduces Emergency Fertiliser Aid Amid Global Supply Concerns
France's Response to Fertiliser Supply Disruptions
Background: Rising Costs and Global Tensions
PARIS, July 9 (Reuters) - France will provide emergency aid for fertiliser purchases and support domestic production, the government said on Thursday, as Middle East tensions drive up costs for farmers already struggling with low crop prices and extreme weather.
Fertiliser prices have jumped following the near closure of the Strait of Hormuz through which around one-third of the global fertiliser trade passes.
Details of the Emergency Aid Package
European Union and National Support
• The French plan comes as part of a wider European Union aid package for farmers worth €540 million ($625.4 million), of which France will receive €107 million. France plans to top up this support to around €145 million, French Agriculture Minister Annie Genevard said.
Direct Financial Assistance to Farmers
• Farmers will receive €50 per metric ton of nitrogen fertiliser, capped at half their 2025 consumption. The rate will rise to €70 per ton for farmers whose fertiliser costs account for more than 10% of their charges, she said.
• The measure is intended to revive stalled fertiliser purchases, preserve farm cash flow and secure the 2027 harvest.
Government Commitment and Rationale
• "We refuse to let an international geopolitical crisis lead our farmers to give up producing. Supporting fertiliser purchases today means preserving tomorrow's harvests and protecting farmers' incomes," Genevard told reporters.
Long-Term Investments in Domestic Fertiliser Production
Industrial Investment Programme
• France will also support a €2 billion industrial investment programme over 10 years, including €620 million in public backing, to modernise existing sites and develop new low-carbon nitrogen fertiliser capacity.
Production Increase Targets
• The investments should increase French nitrogen fertiliser production by 20% by 2032, the agriculture ministry said.
Future Market Reviews and Additional Measures
Monitoring and Potential Adjustments
• France will review fertiliser market conditions on October 1, including any impact of the ceasefire negotiated between the U.S. and Iran, and decide on further measures if prices remain persistently high, Genevard said.
Reporting
(Reporting by Sybille de La Hamaide; Editing by Joe Bavier)
