Brussels reinforced the European Union's agricultural reserve with an additional 300 million euros for 2026, but this allocation is already exhausted, according to a letter sent by the European Commissioner for Agriculture, Christophe Hansen, to the Member States. European agriculture is facing a new front of pressure, after the rise in fertilizer and energy costs, now compounded by a severe and prolonged drought threatening harvests in several regions. The agricultural reserve has an annual allocation of 450 million euros.
In July, the Member States also approved the mobilization of 540 million euros to support farmers affected by increased fertilizer and energy costs, following the crisis in the Middle East. Portugal received 9.46 million euros in this package, and Member States can complement this support by up to 200% with national funds.
In the letter, Hansen asks governments to use the available instruments through the Common Agricultural Policy Strategic Plans and national budgets, considering that recourse to the agricultural reserve should be considered a last resort. Among the possibilities is a new CAP crisis intervention mechanism to compensate for production losses caused by adverse climatic phenomena, including drought, when losses reach at least 30%.
The Commissioner acknowledges that the problem is structural, arguing that the response cannot be limited to compensating losses after they occur. Brussels recommends investments in adapting agriculture to climate change, including more heat- and drought-resistant crops, more efficient irrigation systems, water reuse, and digital solutions. The situation will be discussed at the next informal meeting of EU Agriculture Ministers in Dublin, between 6 and 8 September.
