LŪS head: Farmers live in uncertainty over fertilizer prices

Lithuanian farmers are experiencing significant uncertainty as fertilizer prices continue to climb, a situation driven by new European Union regulations and global supply chain disruptions. The cost of fertilizers began increasing at the start of the year with the implementation of the EU's Carbon Border Adjustment Mechanism (CBAM). This was further complicated by the crisis in the Strait of Hormuz, which led to supply problems.

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Prices have risen sharply. Some fertilizers were already scarce in the spring, therefore some farmers fertilized less than they planned. This means that the predicted harvest may also be smaller.

G. Špakauskas, head of the Lithuanian Farmers' Union (LŪS), explained that prices have risen sharply. Some fertilizers were already scarce in the spring, forcing farmers to use less than planned, which could result in lower predicted crop yields. He noted that some farmers are considering reducing or completely abandoning fertilization in the autumn due to a lack of working capital. The situation is compounded by grain and milk purchase prices remaining similar to a decade ago, despite a significant increase in production costs.

Špakauskas highlighted a current shortage in the fertilizer market, stating that if all farmers were to purchase the necessary amount for autumn sowing, the available supply would be insufficient. "We are living in uncertainty about what will happen next. We are waiting for autumn and the European Commission's decisions on aid measures. Investments are also a concern – many farmers are halting or postponing them," he said.

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What will happen next, we live in uncertainty. We are waiting for autumn and the European Commission's decisions on aid measures. Investments are also a concern – many farmers are halting or postponing them.

He warned that a decrease in harvest yields this year, due to reduced fertilization and unfavorable weather conditions, could eventually affect food product prices. "If it becomes clear that the harvest is smaller, processors may begin to prepare for a possible shortage of raw materials and adjust prices accordingly. It is still too early to say if this will happen, but such a risk exists," Špakauskas added.

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If it becomes clear that the harvest is smaller, processors may begin to prepare for a possible shortage of raw materials and adjust prices accordingly. It is still too early to say if this will happen, but such a risk exists.

Regarding state support, Špakauskas acknowledged the positive signal of an additional 100 million euro loan facility through the national development bank ILTE. However, he stressed that this is currently insufficient, calling it "a drop in the bucket." While welcoming the government's efforts, he emphasized the urgent need for aid to reach farmers quickly. He noted that ILTE is still learning how to work with farmers and process applications efficiently, and a lack of speed is currently an issue. Farmer organizations are actively seeking dialogue with institutions for further solutions to help farms survive this difficult period.

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This is a good start, but for now – a drop in the bucket. It is welcome that the state is looking for solutions and has started working in this direction. However, for farmers, the most important thing is that the help reaches them quickly. (...) ILTE is still learning how to work with farmers, is just trying to adapt the measures, filters, how to do everything faster, how to evaluate applications, etc. (...) True, there is still a lack of speed at the moment.