Luxembourg farmers have so far managed to weather increasing fertiliser prices driven by the war in the Middle East.

The war, which began over a month ago when the United States and Israel began a bombing campaign against Iran, has caused an almost total blockade of the Strait of Hormuz. Around one third of global fertiliser trade passes through the waterway, which sits between the Persian Gulf and Gulf of Oman.

The conflict has driven fertiliser prices up around Europe, and according to Christian Wester, a farmer in Alzingen and the president of the Luxembourg Farmers’ Union. Costs of fertiliser have risen by around 30% to 35% in the Grand Duchy, compared to the previous autumn.

“Prices were already high in the autumn, which meant that farmers reserved less quantity than usual. As a result, if you haven’t yet reserved all your fertiliser, you’ll have to buy it at the new prices, which will create a squeeze on production costs,” explained Wester.

However, the full impact of these higher costs has remained limited in Luxembourg, according to Roger Barthelmy, the director of the rural economy department at the agriculture ministry.

“70% to 80% of the fertiliser for the 2026 growing season was purchased in the autumn and winter and has already been delivered, as farmers have already started fertilising,” he said. “However those who need to buy their supplied now will be affected.”

Christian Wester is a farmer in Alzingen and president of the Luxembourg Farmers’ Union. © Photo credit: Marc Wilwert/Archives

Spain has announced an aid package of €877 million for farmers and France will spend €70 million to subsidise the price of fuel for farmers, logistics companies and fishermen from April 1 until the end of the month. But so far Luxembourg has no plans to introduce special measures.

“For the time being, we are not discussing any special measures, but the government is keeping a close eye on the situation and will decide on measures if necessary,” Barthelmy said.

Luxembourg farmers are “not yet on red alert”, said Wester, but “rather yellow, or even orange”.

“The finance minister has indicated that he will release funds if it becomes urgent for agriculture, but for the moment, we’re not in a crisis situation,” he said, but believes, however, that preventative measures would be beneficial. “Sometimes, it’s better to anticipate and avoid falling into a crisis like the one we experienced during Covid, rather than trying to fix the situation afterwards.”

Despite most farmers avoiding higher fertiliser prices, they could be hit by an increase in diesel costs.

“Those who have no reserves on their farms will have to buy it at a high price,“ said Barthelmy. “But for the average farm, diesel accounts for less than 1% of production costs.”

(This article was originally published by Virgule, translated using AI and edited by Kate Oglesby.)