Frankfurt/Main – September 08, 2026 -- Germany's fertilizer industry association IVA has warned that a planned flat-rate hectare premium for EU fertilizer aid will not drive the early purchasing decisions farms need to secure supply for spring 2026.
IVA says hectare premium misses fertilizer action plan's core goal
The Industrieverband Agrar e.V. (IVA) criticized the German Federal Ministry of Agriculture, Food and Home Affairs' plan to disburse EU fertilizer subsidies as a flat hectare payment, arguing the approach undermines the original intent of the European Fertiliser Action Plan to support farmers specifically in purchasing fertilizer. IVA Managing Director Frank Gemmer said the payout structure lacks the steering effect needed to encourage timely buying, and called instead for direct financial support tied to fertilizer purchases.
Last year's Hormuz disruption showed the value of early contracting
When the Strait of Hormuz closure rattled global markets, roughly 80 percent of Europe's required fertilizer volumes had already been sold or pre-contracted, according to IVA. That early positioning allowed European producers to keep supplying agriculture reliably and to help stabilize the market during the disruption.
Rising gas reserve demand threatens to push fertilizer costs higher this spring
IVA pointed to continued European gas reserve build-up as an added strain on energy markets, which could raise costs for energy-intensive fertilizer production and increase the risk of higher fertilizer prices heading into spring. Many farms currently lack the liquidity to build fertilizer stocks ahead of the season, a gap IVA says targeted aid should have addressed.
IVA maintains that German and European fertilizer manufacturers have sufficient capacity to meet spring demand, provided farms can plan and secure purchases early. The association argues that limited Agrarreserve funds should have been directed toward supporting early fertilizer purchases and storage rather than distributed as a uniform area-based payment.