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EU farmers face falling produce prices as fuel and fertiliser costs rise

By staffOctober 2, 20262 Mins Read
EU farmers face falling produce prices as fuel and fertiliser costs rise
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EU farmers received lower prices for their products on average in the second quarter of 2026, while the prices of supplies used in agriculture increased, according to Eurostat.

Agricultural output prices fell by 5.8% compared with the same period in 2025, the statistics office said. It was the third consecutive quarter of year-on-year decline.

Meanwhile, average prices for goods and services consumed in agriculture, such as energy, fertilisers and animal feed rose by 4.7%.

Ministers for agriculture, who met on 28 September, highlighted high production costs, particularly for fertilisers and energy, alongside lower output prices and pressure on farmers’ profit margins.

Milk prices fall as energy costs climb

Milk prices recorded a particularly sharp fall, with the average price farmers received being 16.6% lower than a year earlier. Cereal prices fell by 5.6%.

On the other side of the balance sheet, energy and lubricant prices rose by 22%, while fertilisers and soil improvers became 13.4% more expensive.

Average agricultural output prices fell in 20 EU countries, with Denmark recording the steepest decline, at 17.2%, followed by Ireland at 16.2%.

Input prices rose in every member state, with the largest increases in Lithuania, at 16.4%, and Romania, at 11.7%. These country comparisons also cover the second quarter of 2026 against the same quarter in 2025.

Farming groups have responded with anger over rising fuel prices, with Spanish farmers demanding urgent aid for rising diesel and fertiliser costs at a meeting with agriculture minister Luis Planas on 22 September, warning of protests if the government failed to act.

In France, record fuel prices have prompted demonstrations by farmers and blockades by fishermen, while the government has announced the expansion of targeted fuel relief measures.

What is the EU doing?

On 17 July, the European Commission announced a €540 million allocation to compensate the farmers most affected by economic losses linked to higher fertiliser and energy costs arising from the Middle East crisis.

France was allocated approximately €107.1 million and Spain €50.2 million. National authorities are responsible for deciding how to target the funding at the farmers and sectors most affected.

Ministers also discussed longer-term measures under the Commission’s fertiliser action plan on 28 September. Published in May, the plan aims to improve fertiliser affordability and availability and strengthen the EU’s domestic supply resilience.

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