Strengthening of the position of farmers in the food supply chain

It affects farmers, producer organisations, agricultural buyers, processors, distributors, retailers, and consumers buying food marketed as fair, equitable, or from short supply chains.

• Requires written contracts for most farmer deliveries to processors, distributors, or retailers, with limited exemptions.
• Contracts over six months must include a farmer-triggered revision clause and production-cost-sensitive pricing factors.
• Reserves “fair”, “equitable”, and “short supply chain” terms for products meeting specified commercial conditions.
• Expands producer organisation bargaining powers and increases CAP support for selected operational programmes.

Takes effect

It enters into force on the twentieth day after publication in the Official Journal.

Transitional law

Rules on optional fair and short-supply-chain terms apply after two years; written-contract rules apply after 18 months.

• Regulation (EU) No 1308/2013 (32013R1308)
  • art. Part II, Title II, Chapter I, Section 1: inserts new Subsection 3a on optional terms after Subsection 3
  • art. 88a: inserts new Article 88a on optional terms for commercial modalities
  • art. 148: replaces Article 148 on contractual relations in milk and milk products sector
  • art. 152(1): amends definition, initiative, and objectives of producer organisations
  • art. 152(1a): replaces first subparagraph on producer organisations negotiating contracts
  • art. 152(1b): inserts second subparagraph allowing recognised associations to carry out activities under conditions
  • art. 153(2): replaces point (c) on democratic scrutiny by farmer members
  • art. 153(2a): replaces paragraph on member contact with purchasers and concentration of supply
  • art. 153(3): replaces paragraph excluding milk and milk products producer organisations
  • art. 157(1): adds point (xvii) promoting optional terms under Article 88a
  • art. 168: replaces Article 168 on contractual relations for agricultural products
  • art. 210a(3): adds sustainability objectives for small farms, young producers, and working conditions
  • art. 210a(6): replaces paragraph on Commission opinions about sustainability agreements
  • art. 222(1): replaces paragraph on crisis derogations from competition rules and reserve support
  • art. Annex X, Point I: replaces points 1 and 2 on written delivery contracts and revision clause
  • art. Annex X, Point II: adds paragraph to point 2 on sugar beet price calculation factors
  • art. Annex X, Point III: adds paragraph requiring force majeure rules in delivery contracts
  • art. Annex X, Point IXa: inserts new Point IXa on registering written sugar beet delivery contracts
• Regulation (EU) 2021/2115 (32021R2115)
  • art. 52(3): adds point (i) on low producer organisation degree in fruit and vegetables sector
  • art. 52(5a): inserts paragraph increasing Union financial assistance for young and new farmers’ investments
  • art. 52(7): adds paragraph increasing assistance for programmes affected by climatic events or pests
  • art. 68(2a): inserts paragraph applying Article 52 provisions mutatis mutandis
  • art. 88(7): replaces paragraph on using up to 6% of direct payment allocations for other sectors
• Regulation (EU) 2021/2116 (32021R2116)
  • art. 16(1): replaces second subparagraph point (b) to include Article 222 exceptional measures