The European Commission's proposed allowing member states to pay a one-off lump sum to farmers and agri-food businesses impacted by rising costs.
Increases in prices, notably for energy, fertiliser and animal feed are disrupting the agricultural sector and rural communities, according to the commission.
It says this is leading to liquidity and cash flow problems for farmers.
Once the policy is adopted, selected farmers could receive up to 15,000 euro, while SMEs could get up to 100,000 euro.
Commission Spokesperson Miriam Garcia Ferrer outlines details of the proposals: