End to EU tariffs on fertilisers. €100 million in tax credits in Italia
The issue of rising costs was the focus of the G7 agriculture ministers’ meeting in Paris. D’Eramo (MASAF): Italia is allocating €100 million to support agricultural businesses with their purchases
by Giorgio dell’Orefice
Key points
In Europe, tariffs on the main nitrogen fertilisers used in agriculture have been suspended, and at national level, €100 million has been allocated to farms in the form of a tax credit for the purchase of fertilisers and fuel. These are the measures adopted immediately following the extraordinary meeting of G7 agriculture ministers in Paris today, concerning the consequences of the conflict in the Middle East and, in particular, fertiliser prices.
A crisis triggered by the blockade of the Strait of Hormuz
The meeting aimed to take stock of the current difficulties faced by farmers and to consider ‘joint actions’, against a backdrop of soaring fertiliser prices since the start of the conflict in Iran in early February and the near-total blockade of the Strait of Hormuz, through which around 30% of the world’s fertilisers pass. The meeting, organised by the French G7 presidency, was also attended by representatives from the OECD, the FAO and the Agricultural Market Information System.
D’Eramo (Masaf): an immediate response, but also structural policies
Italia was represented by the Under-Secretary of State for Agriculture, Luigi D’Eramo. “It is essential,” commented D’Eramo, “to develop a strategy that combines immediate response measures with structural policies. Following the blockade of the Strait of Hormuz, Italia, through Minister Francesco Lollobrigida, took immediate action, both at European level to request the suspension of tariffs on the main nitrogen fertilisers used in agricultural production, and at national level, by allocating €100 million to support the primary sector through the provision of tax credits to farms for the purchase of fertilisers and fuel.”
During the meeting, the importance of diversifying sources of raw materials and encouraging the production of innovative fertilisers – including those derived from the recovery of by-products – in line with the principles of the circular economy was also highlighted.
A coordinated effort is needed to strengthen food systems
“The challenges highlighted today,” added the undersecretary, “require a coordinated effort by our countries to strengthen the resilience of food systems. We all have a moral and political duty to respond to emergencies not only with declarations of principle, but also with urgent and concrete action, through sustainable policies geared towards the future of the next generations.”
