AGP Executive Report

EU trade & sanctions: Russia has extended its ban on imports of a wide range of agricultural and food products from the EU, UK and others through Dec 31, 2028, while EU summer crop yield forecasts have slipped after heat and drought. Fertiliser & farm inputs: Ireland’s DAFM reports fertiliser sales down 5.5% in the first three quarters of the fertiliser year, with nitrogen, phosphorus and potassium all lower. Nature policy pushback: Ireland’s INHFA warns farmers will resist Nature Restoration Law-linked land designations unless funding and compensation are secured, urging a pause ahead of 2027 implementation. Armenia market access: EU Enlargement Commissioner Marta Kos urged shoppers to buy Armenian products as the EU finalised temporary trade liberalisation for about 80% of Armenian exports for two years. Water & climate risk: WMO’s 2025 State of Global Water Resources highlights worsening hydrological extremes, with implications for European farming resilience. Food prices watch: Wheat prices in Europe eased as traders assessed cautious progress toward Black Sea grain export resumption.

EU–US Diesel Tensions: The European Commission urged Washington not to restrict U.S. diesel exports, warning any disruption could tighten fuel supplies and push up costs on both sides of the Atlantic. Bulgaria Livestock Health: Bulgaria has published a sheep and goat pox vaccination plan for public consultation, with thresholds and a timeline set ahead of a final working group review. EU Organic Spotlight: Bulgarian organic processor Bio Bulgaria won an EU Organic Award for best small/medium enterprise processing organic food, highlighting short supply chains and support for local farmers. Armenia Trade Deal: The EU Council formally adopted temporary trade-liberalisation measures suspending duties on about 80% of Armenian exports to support flows after Russian restrictions, with safeguards for EU producers. Farm Costs Pressure: Bulgaria’s agriculture minister said fuel-price measures are designed to benefit more than just top producers, using an EU-linked compensation mechanism. EU Agri Research Funding: A €10m project aims to strengthen agri-advice networks across Europe. Food System Policy Signal: An EU-backed push links CAP model choices to food security outcomes.

EU CAP & public support: A new Eurobarometer survey finds 95% of Europeans say agriculture and rural areas matter for the EU’s future, with 93% stressing stable food supply and strong backing for the Common Agricultural Policy (CAP), including on food security, fair prices and climate/environment goals. Water stress in farming: France’s drought remains severe, with 77 departments in the highest “crise” water restriction level and 16 more in “alerte renforcée,” as soils are drier than typical for September. EU research push: Commissioner Hansen opened the EU AgRI 2040 agricultural research and innovation conference, signaling continued focus on farm innovation. Grain market watch: International grain prices held steady in the week to Sept. 18, with traders balancing Black Sea export hopes against concerns over the French maize crop and uncertainty in US harvest progress. Fresh produce trade: Spain’s Fruit Attraction (Oct 6–8) expects 2,500 exhibitors and 121,000 trade visitors, reinforcing Europe’s role in global fruit and vegetable supply chains. Seeds and policy cooperation: FAO is finalising a partnership agreement with Azerbaijan focused on agricultural policy support and seed production, tied to a new Azerbaijani seed law.

CAP and farm budgets: Ireland’s Budget 2027 is being watched closely for how it treats agriculture, with CAP funding and internal national control of where money goes likely to shape rural priorities. Energy costs for farmers: France extends fuel subsidies (including farmers) at €450m, while Germany cuts petrol/diesel taxes and talks about a possible fuel-price cap—moves aimed at easing the energy-cost squeeze. Organic push: The EU targets 25% of farmland under organic management by 2030; Greece already has 17.2% of agricultural land organic, but officials stress linking production to market demand and farm incomes. Food security and war: Russia’s Black Sea blockade is again in focus as 51 countries back Ukraine’s call for a Black Sea initiative, warning grain exports are being choked. Innovation for lower inputs: Arevo reports independent trials of its Arginex corn seed treatment delivering up to +4.3% grain yield while cutting standard nitrogen by up to 30% across multiple European countries. Animal health: Northern Ireland farmers are urged to stay vigilant as bluetongue cases rise. Livestock genetics trade: Goulding Legacies’ online sale (25–29 Sept) offers 60+ lots of Hereford and Angus heifers plus frozen genetics.

Precision Farming & Water Saving: A new Italian study finds drone- and sensor-guided irrigation can cut water use for tomatoes and table grapes by up to 15% while boosting yield and fruit quality. UK Energy Costs & Farming Pressure: The OECD says the UK outlook is improving as inflation falls and new support measures kick in, but fuel-price strain remains a live issue for rural businesses. Succession Planning in Ireland: Teagasc is rolling out free “Transferring the Family Farm” clinics from October, pairing farmers with solicitors, accountants and advisors to tackle generational renewal. Renewables on Farms: Suffolk Fresh’s floating solar array is already reducing imported energy for glasshouses, showing how on-farm power can help growers manage costs. Agri-Food M&A in Europe: Scandi Standard’s €127m Glenhaven Foods deal clears the final Irish competition hurdle, paving the way for completion around 9 October. Food Security & Trade Risks: Russia-Ukraine strikes continue to hit oil and diesel supply chains, adding pressure to global food and fuel prices.

Climate & Heat Risk: New research tied Shell’s pollution to nearly a quarter of global heatwaves, renewing pressure on European leaders to treat fossil-fuel harm as a public issue, not just a corporate one. Energy Costs for Farmers: Diesel prices are surging on both sides of the Atlantic as wars disrupt supply, with knock-on effects for European farm inputs and harvest logistics. EU Trade & Food Markets: The EU and the Philippines say they’ve reached a substantial free-trade agreement, with potential knock-on benefits for farmers and supply chains. Livestock & Food Security: A new FAO study says livestock systems supply about one-third of global protein and are shifting toward more resilient feed sources and mixed production. Food Safety: EU regulators flagged unauthorized GM material in multiple Chinese rice products, including rice sticks, crackers and miso, via the RASFF system. One Health in Agrifood: An FAO keynote urged “One Health” to move from policy to action, linking human, animal and ecosystem health to resilient agrifood livelihoods.

Diesel shock hits European farming: Diesel prices are spiking across Europe, with Belgium set to push above €2.50/l from Sept. 22, adding fresh pressure to farm fuel bills and transport costs as supply tightens and geopolitical risks linger. Farm costs and margins under strain: A separate report links the wider diesel squeeze to higher logistics charges and squeezed margins, a pattern likely to ripple through agri-food supply chains. Livestock biosecurity tech: A new high-airflow MERV 16 filtration system is being promoted for swine operations, aiming to cut airborne disease risk in barns. Plant nutrition trade politics: US President Donald Trump says Washington is working on a deal to buy potash from Belarus at a lower price than Canada—an issue that could affect fertilizer pricing and availability for farmers. EU agriculture diplomacy: Moldova is weighing a potential stop to exports to Belarus and Russia, with reorientation toward EU markets on the table. Food supply and climate stress: Reports highlight how heat and drought are damaging European potato harvests, threatening fry supply and raising prices. Bio-based fuel momentum: A study flags fast growth in biomethane for transport, noting Europe’s large plant base and adaptation potential for renewable gas.

Drought hits UK dairy supply: Scotland’s Mossgiel Organic Dairy shipped about 56,000 litres of organic milk south to England as England and Wales grapple with record heat, drought and grazing shortfalls. Food standards at risk: Northern Ireland’s UFU is urging the EU to keep poultry import standards tight after a European Commission audit flagged systemic shortcomings in Thailand’s export controls, including traceability and veterinary checks. Protected agriculture push: The EU is rolling out a research-and-innovation push for AgRI 2040 and Food 2040, aiming to help farmers adopt tools for drought resilience, disease detection and smarter resource use. Protected pollinators: Ireland’s Inishturk native honeybee sanctuary has been nominated for a European Bee Award for its real-time digital hive monitoring and open-data approach. Farm sector confidence: Teagasc says Ireland’s suckler herd decline appears to have stabilised, supported by better prices and farmer confidence. EU energy backdrop: Germany’s grid and policy uncertainty is shaping renewables finance, even as European Energy secured support for 89.6 MW of onshore wind in a German auction.

Drought Pressure on Balkan Farms: Bosnia and Herzegovina’s farmers’ association is urging cantonal governments to declare a natural disaster over prolonged drought, saying crop yields have fallen by more than 50% in places and that rising fuel, fertilizer and seed costs are squeezing producers ahead of autumn planting. Diesel Shock Across Europe: Europe’s diesel crisis is deepening, with France hitting a new record average of nearly €2.41/litre as Middle East fighting and refining disruptions tighten supplies—an issue that directly hits freight, farm machinery and food logistics. Olive Oil Price Watch: Greece’s 2026/27 olive oil season is starting with lower prices, but producers are watching Spain closely: drought and heat have already cut Spain’s expected output, and a bigger-than-expected Spanish harvest could push international prices down further. CBAM Safeguard Fight: Ireland’s Seán Kelly says support for a proposed CBAM safeguard remains strong despite the European Parliament voting to scrap it, setting up tense Council trilogue talks over whether fertiliser imports could be temporarily shielded. EU Water Data Matters: A new push argues that faulty environmental data can lead to flawed pollution and climate policies, with real-world gaps risking wasted spending and regulatory blind spots.

EU Food Policy & Retail Competition: Labour is pushing to break up supermarket power by forcing Woolworths and Foodstuffs to run independent wholesale businesses, aiming to lower costs for smaller grocers and make it easier for new supermarkets to enter. UK Farming Pressure: Sinn Féin MPs met the Ulster Farmers’ Union to discuss inheritance tax for family farms, bovine TB, nutrients rules, and fears over Brazilian beef and Mercosur imports. Livestock & Trade Rules: The UK NFU says major retailers have reassured it they will keep sourcing British beef and poultry for fresh meat lines after new EU antimicrobial resistance rules. Climate Stress on Crops: EU potato production is under strain as heat and drought are reported to have wiped out millions of tons of EU potatoes, pushing fry prices up. Weather Disruption in Europe: Italy is hit by intense rain and thunderstorms, with severe flooding reported around Agrigento and Rome. Agri-Industry Innovation: Uzbekistan plans to shift 10,000 hectares in Karakalpakstan into melon production with on-site processing and export-focused investment.

CAP Focus: Ireland’s young farmers group Macra urged the EU agriculture commissioner to back “productive” active farmers, warning against support that mainly rewards landowners who aren’t producing. Climate Pressure on Farms: Thousands protested in Switzerland over climate inaction, with drought impacts flagged as a direct threat to agriculture and water supplies. Water Security: The EU-backed Renature Time programme in Brussels will run 19 Sept–18 Oct with 100+ free nature and biodiversity events, including an urban farm visit—aimed at boosting local resilience. Crop Protection Deal: Corteva and Belgium’s Globachem agreed a 50/50 joint venture to develop and commercialize new crop protection products for Europe and the Americas, as Corteva prepares its crop protection spin-off. Dairy Market Volatility: Ireland’s Dairy Industry Ireland warned the country is “exceptionally exposed” to global dairy swings because most milk must be exported, keeping prices tied to international markets.

Milk Markets: European milk prices kept climbing in July for a third straight month, with the EU average base price rising to €38.35/100kg (+€0.15) and processors paying €40.26/100kg once bonuses are included, though it still sits well below last year. Drought & Livestock Resilience: A UK grazing expert urged livestock farmers to rethink pasture management under hotter, drier conditions, calling for “summer dry grazing” planning rather than waiting for the old weather patterns to return. EU Policy & Food Costs: Spain is negotiating how to extend cost-of-living support beyond 30 September, with extra attention on transport and the agri-food chain as inflation and fuel prices pressure households. Energy Pressure on Agriculture: Eurozone ministers met in Dublin amid renewed oil and gas price spikes and discussed a potential windfall tax, warning higher energy costs could feed back into inflation. Sanctions Touching Farm Machinery: Switzerland expanded Belarus sanctions, adding bans on a range of industrial goods including certain lubricants, rubber products, and industrial tractors over 130 kW (forestry tractors excluded). Biodiversity for Farms: Campaigners highlighted the role of bees and pollinators, stressing habitat loss, climate change, intensive farming and pesticide pressure as key threats.

EU Energy Shock: EU finance ministers discussed a bloc-wide windfall tax on oil firms as fuel and gas prices stay near record highs, with Germany’s diesel and petrol hitting fresh peaks and leaders pushing the Commission for proposals. Heat Impacts on Food: A study links this summer’s extreme weather to major EU potato losses (about 3.1m tons), raising expectations of smaller harvests and higher fry prices. CAP & Farm Funding Pressure: Ireland’s agriculture minister warned proposed CAP payment cuts would be “devastating,” as EU budget talks intensify. Olive Sector Costs: Spain’s table-olive municipalities association (AEMO) published 2026 production-cost ranges of €0.71–€1.23 per kilo, aiming to improve farm profitability decisions. EU Water & Biodiversity: The EU launched a Water Resilience Platform and Water Academy, while England’s Kent Wildlife Trust secured £1.28m to boost beavers on the River Stour. Agri-Policy Cooperation: Azerbaijan took part in an FAO dialogue on greening agrifood systems, including field visits to regenerative landscape examples in Hungary.

EU–Canada Dealmaking: European Commission President Ursula von der Leyen proposed Canada as the EU’s first “associate member” in Strasbourg, aiming at deeper cooperation in defence, tech, energy and critical minerals—though the legal meaning is still undefined and negotiations will be political, not automatic. EU Budget Pressure on Farm Money: EU long-term budget talks for 2028–2034 are intensifying, with member states and the European Parliament clashing over funding for industrial competitiveness, security and traditional cohesion/agriculture as elections in Italy, Spain, Poland and France loom. CAP Admin Row in Ireland: Irish farm groups told Commissioner Christophe Hansen that paperwork and advisory red tape are “killing” services, while the Commission points to CAP simplification targets. Heat Stress on Crops: New wheat research finds early-season heat waves can hit yields more than later ones, but earlier heat can also “prime” plants to better handle later heat. Soil Pollution Risk: An EU-funded study reports microplastics in all tested agricultural fields across 11 countries, with links to pesticides, veterinary drugs and antibiotic resistance. Ag Tech Scaling in Europe: Hungary-based ABZ Innovation opened a major civilian drone factory expansion, targeting higher output and promoting precision spraying to cut water and chemical use. Water Scarcity & Dry Rivers: A Mediterranean project focuses on biodiversity in “dry rivers” to improve drought-era water management and ecological assessment. Market/Trade Signals: Spain is extending cost-of-living support with attention to transport and agri-food, as inflation and energy costs keep pressure on household budgets.

Heatwave Damage to Potatoes: Europe and the UK face one of their smallest potato harvests on record after successive heat waves and drought cut yields and acreage, with analysts warning of higher prices and tighter supply. CAP Funding Tensions: EU farm funding is under pressure as MEPs debate CAP budget cuts and an emergency brake on carbon-tax rules for fertiliser imports, while ministers warn reduced payments could be “devastating” for some countries. Fertiliser Use Push: A new global study maps crop-by-crop fertiliser application rates from 1980-2022, highlighting where Europe and other regions can cut pollution while still boosting food output. EU–Canada Trade Uncertainty: Canada’s proposed “associate membership” with the EU is being treated as unclear and potentially substance-light by diplomats, even as leaders pitch deeper cooperation. Settlement Goods Ban: France and Canada follow the UK in announcing bans on goods linked to illegal Israeli settlements, targeting companies and services tied to settlement expansion.

CAP Budget Pressure in Ireland: Connacht farmers warn the next CAP round could cut up to €460m, with IFA urging urgent talks and lobbying to protect family farms and rural economies. Food Supply Shock: Europe faces a potato shortage after heatwaves, with estimates of millions of tonnes lost and fries likely to get smaller and pricier. Animal Health Biosecurity: EFSA and the European Commission back practical #NoBirdFlu steps for farms and backyard flocks as migratory birds raise avian influenza risk. Plant-Based Label Fight: MEPs push to expand the EU plant-based “meaty words” ban after record heatwaves, aiming to widen restrictions beyond the current list. Trade and Sanctions: The UK, France and others move to ban goods linked to illegal Israeli settlements, targeting companies and services tied to expansion. Ports and Exports Watch: Egypt reports strong Mediterranean and Red Sea activity, including corn imports and outbound food shipments like molasses. EU–Canada Alliance Push: Von der Leyen proposes Canada as the EU’s first associate member, while Trump threatens “serious tariffs” if he deems it hostile.