Defra review targets fairer returns for growers

Arable farmers have been given a “real opportunity to reset the balance of power” in the crops supply chain after Defra launched a consultation on contract fairness across the combinable crops sector.

Farming minister Dame Angela Eagle said the review will examine pricing transparency, testing and sampling, supply volumes, data sharing and dispute resolution, with reforms aimed at delivering clearer contracts and fairer returns.

Defra said the crops sector underpins UK food, feed and fuel production and that improved fairness is vital to resilient supply.

See also: Farmers’ fair dealing regs scepticism fading, says adjudicator

Dame Angela said farmers “should have confidence that the contracts they sign are fair and transparent and work as they should,” with stronger protections helping secure domestic production.

Defra says fairness in the agricultural supply chain remains a key priority, backed by fair dealings regulations and enforced by the agricultural supply chain adjudicator, Richard Thompson.

Long wait for action

NFU Combinable Crops Board chairman Jamie Burrows said growers had waited years for action on contractual imbalance.

“For too long, there has been an imbalance of power within the combinable crops supply chain, with growers being treated unfairly and shouldering the largest burden of risk,” he said.

“This review is a chance to give arable farmers a stronger voice, better protection, and fairer returns for the food they produce.”

He said clearer, more transparent and enforceable contract terms – a central demand in the NFU’s Harvesting Growth strategy – would give growers the confidence to plan and invest.

“This must include clear, fair and transparent contracts which would boost farm business confidence and allow us to make informed decisions that improve profitability and drive long-term investment,” he said.

“Fairness and trust must be paramount if UK growers are to continue producing sustainable food for 70 million consumers.”

Opaque pricing structures

NFU members regularly report opaque pricing structures, inconsistent testing procedures and disputes weighted towards buyers. Many growers receive the smallest share of value despite carrying the greatest risk.

Mr Burrows urged growers to respond, saying: “This is a fantastic opportunity to set out our case for a change of culture and build a better future for the UK combinable crops sector.”

The consultation, which goes live at 9.30am, is open for eight weeks to growers, merchants, processors and other supply chain stakeholders.