Agriculture & Fishing

PAC 2026 Advances: EU Flexibilizes Payments to Farmers Amid Fertilizer Crisis

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Equipo Editorial CambiosLegales
03 Aug 2026 6 min 24 views

Key data

RegulationCommission Implementing Regulation (EU) 2026/1906 of July 31, 2026
Modified regulationImplementing Regulation (EU) 2022/128
PublicationAugust 3, 2026
Entry into forceJuly 31, 2026
Affected partiesFarmers, livestock breeders and CAP aid paying agencies in Spain and the EU
CategoryAgriculture and Fisheries
Year2026
ReasonIncrease in fertilizer prices due to the Middle East crisis
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European farmers and livestock breeders are experiencing direct liquidity pressure: fertilizer prices have risen significantly as a result of the Middle East crisis, which translates into higher operating costs even before receiving CAP aid. To alleviate this cash flow tension, the European Commission has approved the Implementing Regulation (EU) 2026/1906, published on August 3, 2026 and effective from July 31, 2026.

The regulation amends the Implementing Regulation (EU) 2022/128, which regulates the procedures of CAP paying agencies, to introduce more flexible conditions for advance payments. In practice, this means that Member States—including Spain through FEGA and regional paying agencies—can accelerate aid with fewer administrative and financial obstacles.

What does this regulation establish?

Regulation 2026/1906 introduces a specific but relevant modification on how advance aid payments are managed within the Common Agricultural Policy framework. The specific changes are:

AspectBefore (Regulation 2022/128)Now (Regulation 2026/1906)
Conditions for advancesStandard, more restrictive rulesTemporarily flexibilized conditions
Capacity of Member StatesLimited by usual requirementsExpanded to accelerate payments with fewer restrictions
Application contextOrdinary situationEconomic emergency situation due to fertilizer crisis
Measure validityTemporary, linked to the economic emergency in the sector

The flexibilization does not eliminate controls by paying agencies, but it does reduce the barriers that under normal conditions delay or limit access to advances. The objective is for money to reach farms faster, especially smaller ones, which are the most vulnerable to liquidity problems.

Economic and operational impact

The most direct impact of this regulation is on the cash flow of agricultural farms. The rise in fertilizer prices—an essential input for most crops—forces farmers to spend more money before harvest, without having yet received their CAP aid for the year.

With the new regulation, national and regional paying agencies can advance part of CAP aid under less restrictive conditions, which has immediate practical effects:

  • Improved cash flow for farms, especially small and medium-sized ones.
  • Reduced need for short-term bank financing to cover fertilizer purchases.
  • Lower risk of non-payment to agricultural input suppliers.
  • Operational relief for farms that were already adjusting their campaign plan due to lack of liquidity.

The negative impact falls on paying agencies, which will need to adapt their internal procedures to apply the new flexibilized conditions, with the additional management risk that entails.

Who does it affect?

  • Farmers beneficiaries of direct CAP aid in Spain and the rest of the EU.
  • Livestock breeders who receive CAP-associated payments and use fertilizers on their farms.
  • National paying agencies (in Spain, FEGA—Spanish Agricultural Guarantee Fund) responsible for processing and advancing payments.
  • Regional paying agencies in autonomous communities with delegated competencies in CAP aid management.
  • Agricultural advisors and managers who process CAP aid applications on behalf of their clients.
  • Agricultural cooperatives that group applications and manage advances for their members.

Practical example

A medium-sized cereal farm in Castilla y León has a pending CAP aid advance for the 2026 fiscal year. With fertilizer prices skyrocketing due to the Middle East crisis, it needs to buy fertilizer for the next planting before the regular payment arrives.

Under the previous rules of Regulation 2022/128, the regional paying agency had to meet a series of stricter conditions before it could advance that payment, which delayed the availability of funds for the farmer.

With the new Regulation 2026/1906, the paying agency can process that advance under more flexible conditions, allowing the farmer to receive part of their CAP aid earlier than usual, cover the cost of fertilizers without needing to resort to a short-term bank loan, and maintain their campaign plan without cuts.

The effect is especially relevant for smaller farms, where the difference between receiving the advance in October or December can determine whether fertilizer can be purchased on time or not.

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What should companies do now?

  1. Contact the regional paying agency to confirm whether it has already adapted its procedures to the new conditions of Regulation 2026/1906 and when flexibilized advances will be available.
  2. Review the 2026 CAP application to ensure it is correctly submitted and there are no issues that could block the advance.
  3. Calculate liquidity needs for the next campaign, taking into account the updated cost of fertilizers, and estimate whether the CAP advance can cover that gap.
  4. Consult with your agricultural advisor or manager about the documentation needed to benefit from the new advance conditions, as specific procedures will be set by each Member State.
  5. Follow FEGA communications and the corresponding agriculture ministry, which will publish operational instructions for implementing the flexibilization in Spain.

Frequently asked questions

What exactly changes with Regulation (EU) 2026/1906 regarding CAP advances?

Regulation 2026/1906 amends Implementing Regulation (EU) 2022/128 to allow Member States to advance CAP aid payments under less restrictive conditions than usual. The measure is temporary and is linked to the economic emergency caused by rising fertilizer prices resulting from the Middle East crisis.

When does the flexibilization of CAP advances come into force?

The regulation came into force on July 31, 2026, although it was published in the EU Official Journal on August 3, 2026. The specific procedures for applying it depend on each Member State and paying agency.

Which farmers can benefit from the new CAP advances?

All farmers and livestock breeders who are beneficiaries of Common Agricultural Policy aid in Spain and the rest of the EU. The measure has particularly relevant impact on smaller farms, which are the most vulnerable to liquidity problems due to rising fertilizer prices.

What should I do to apply for the CAP advance under the new conditions?

You should contact the corresponding regional paying agency (or FEGA at the national level) to learn about the procedures adapted to the new regulation. Make sure your 2026 CAP application is correctly submitted and without issues, and consult with your agricultural advisor about the required documentation.

Is this flexibilization permanent or does it have an end date?

The measure is temporary and is expressly linked to the economic emergency situation in the agricultural sector resulting from the increase in fertilizer prices due to the Middle East crisis. No specific end date is established in the available data, but its validity is conditioned to the persistence of that emergency situation.

Official source

View complete regulation at official source

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://eur-lex.europa.eu/./legal-content/AUTO/?uri=OJ:L_202601906



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