Significant Changes in European Agricultural Policies: February Update

In February, Europe’s agricultural policy landscape experienced critical shifts, introducing new rules on nutrient recycling, export promotion funding, trade disputes, and efforts aimed at simplifying Common Agricultural Policy (CAP) administration. These adjustments are poised to impact everything from farm input markets to compliance technology adoption, market access, and innovations linked to sustainability.

New RENURE Rules: Advancing Manure-Based Fertiliser Use

The EU has officially adopted its long-anticipated RENURE (REcovered Nitrogen from manURE) rules. This change aims to lower fertiliser costs and enhance the bloc’s strategic autonomy.

Under the new framework, Member States can allow the use of RENURE beyond existing manure limits. This will enable farms to replace a larger proportion of mineral fertilisers with nutrient-recycled products. RENURE materials—produced through advanced processing of livestock manure—promote quicker crop absorption and minimize the risk of water contamination compared to traditional slurry.

Mandatory environmental safeguards have also been established to prevent nitrate pollution, with national authorities in charge of enforcement. Environmental Commissioner Jessika Roswall termed the rules a significant achievement in circular economy practices, stating, “Europe is turning waste into value.”

Record Promotion Budget for 2026: “Enjoy, It’s from Europe” Campaign

Brussels has announced its promotional policy for 2026, allocating €205 million to co-finance campaigns that showcase premium sustainable EU agri-food products in both domestic and international markets. Notably targeting include the UK, Japan, South Korea, China, Singapore, and North America.

The massive funding represents the largest budget for product promotion to date. This change is expected to align export growth priorities with opportunities for traceability providers, quality-assurance platforms, and digital tools for supply-chain management and sustainability verification.

EU-Mercosur Trade Deal: A Flashpoint for Farmers

The EU-Mercosur trade agreement, recently approved, is proving divisive. This deal reduces tariffs for over 90% of bilateral trade and promises €4 billion annually for EU exporters, yet agricultural associations warn of significant competitive distortion.

Farmers express concerns about an influx of cheaper imports from South America, produced under laxer regulations on pesticides, labor, and animal welfare. The entry of these products could depress EU farmgate prices and compromise sustainability standards, leading to heightened protests, particularly in France.

Response to Wine Sector Challenges

The European Parliament has approved a robust reform package for the wine sector, aiming to equip the industry with better crisis-management tools along with climate resilience support and enhanced export promotion efforts. Key measures include:

• Additional EU support post-extreme weather or disease outbreaks
• Funding to remove unproductive vines to stabilize supply
• Up to 60% EU co-financing for marketing and export activities
• Extended programme terms up to nine years

Rapporteur Esther Herranz García noted that these measures will provide a timely response to current challenges in the wine sector.

CAP Simplification: A Positive Shift for Farmers

The European Commission has launched significant CAP changes aimed at reducing compliance burdens for farmers and national authorities, which could result in an estimated €215 million in annual savings and a potential 20% reduction in paperwork. Key reforms include:

• Streamlined requirements for Integrated Administration and Control System (IACS)
• Remote-sensing checks utilizing Copernicus data for specific eligibility criteria
• Reduced requirements for recording pesticide usage

CBAM Fertiliser Exemption Pressure from France and Italy

France and Italy are advocating for the suspension of the Carbon Border Adjustment Mechanism (CBAM) for fertiliser imports set for 2026. Concerns are growing that implementing CBAM could inflate fertiliser costs by 25%, exacerbating financial pressures on farmers in an already fragile market.

Weaknesses in Olive Oil Traceability Systems Identified

A recent report from the European Court of Auditors (ECA) highlights significant inconsistencies across Member State olive oil control systems. Key concerns include:

• Inconsistent national verification checks
• Weak blending and origin verification processes
• Inadequate contaminant testing

As the leading producer, consumer, and exporter of olive oil, the EU must address these lapses to maintain trust in its flagship industry. Agtech solutions that provide digital traceability and authenticity testing are anticipated to meet the emerging demand.