Estonian farmers are facing significant challenges due to a sharp rise in fertilizer prices triggered by the Middle East crisis. Nitrogen fertilizer costs in May were 70% higher than the 2024 average, while phosphorus fertilizer prices surged 22% above average. This surge has forced farmers across Europe to adjust their planting strategies. For example, Spain and France have reduced acreage for high-fertilizer crops like corn, with Spain increasing sunflower fields by nearly 40% in some regions.
In Estonia, farmers are using less fertilizer, leading to lower yields and quality. Some are even leaving land fallow as input costs outpace market prices. Kaie Laaneväli-Vinokurov, head of agricultural policy at the Estonian Chamber of Agriculture and Commerce, noted that these changes are widespread across Europe. The European Union plans to allocate €540 million from the agricultural crisis reserve to support farmers, but Estonia argues the distribution favors larger producers.
The EU's proposed crisis aid scheme would grant Estonia €3.1 million, with an option for the state to add up to 200% more. However, Estonia contends that the scheme does not reflect the actual costs faced by local farmers. Kristel Maidre, head of the agricultural policy department at the Ministry of Regional Affairs and Agriculture, emphasized that Estonia's low livestock density and high dependence on fertilizer imports should be considered in the distribution of support.
Countries like France and Spain are providing additional support to their farmers through national budgets, creating unequal competition within the EU market. Estonia has not yet discussed direct support, and it remains unclear whether the state will supplement the €3 million. A fast-track vote on the crisis aid proposal is scheduled for July 17, but Estonia plans to abstain if its proposals are not accepted.