NFU seeks sampling improvements in future grain contracts
© Tim Scrivener The NFU has called for a major overhaul of combinable crop contracts, claiming the scales have been “tipped against growers for far too long”.
It has submitted its official response on behalf of NFU members to Defra’s consultation on contract fairness across the combinable crops sector.
NFU Combinable Crops Board chairman Jamie Burrows said: “For many years, arable farmers have shouldered the largest burden of risk while receiving the smallest share of the final value.
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“Whether it is volatile input costs, challenging weather or unpredictable global markets, the arable farmer is almost always the ‘shock absorber’ for the entire supply chain.”
One of the major NFU demands is for the industry to adapt the AIC No.1 contract to improve transparency and provide greater clarity over specific contract terms and definitions.
The NFU also called for changes to grain sampling, with farmers taking a representative sample either before or at the point of loading, in case of disputes over quality.
Luke Cox, NFU combinable crops senior policy adviser, said that samples are currently taken at intake, once the lorries have left the farm.
He added that this resulted in growers having no visibility of how the sample is taken and some members had suggested that merchants should return to pre-movement sampling on farm, as they used to in the past.
The NFU also pressed for immediate feedback of data to growers at intake as standard on all contracts.
Mr Burrows said: “Our response to the consultation, based on what many of our members have told us, outlines the urgent need to see a marketplace that is operating with integrity and transparency, where data is being shared openly and fairness is promoted.
“Above all, a marketplace where growers’ contracts are clear and consistent, provide fair returns to growers and give us the confidence to make long-term business decisions and invest in the future of the industry.”
Feedback from merchants
Defra’s consultation was open for eight weeks for growers, merchants, processors and other supply chain stakeholders, and closed on 4 February.
Major agronomy and grain trading group Frontier Agriculture responded to Defra’s consultation, highlighting the importance of clear contracts and timely feedback of information for growers to help them make informed decisions.
Frontier Agriculture called for a “proportionate approach” to ensure greater fairness and transparency for growers without creating unintended operational burdens for the supply chain.
Diana Overton, managing director at Frontier Agriculture, said: “This is an important opportunity to share evidence and constructive input on how contracts work in practice across the supply chain.
“We support steps that improve clarity, consistency and confidence for growers, while recognising the need for a supply chain that remains responsive to weather, logistics and customer demand and quality standards.”