Arable farmers 'shock absorber' in supply chain, says NFU response to Defra

The NFU has called for urgent reform of the UK combinable crops supply chain, warning that without fairer treatment for growers the long-term viability of many arable farms is at risk.

The union made the call as it set out its official response to Defra’s review into supply chain fairness, following a consultation launched in December aimed at addressing long-standing concerns in the sector.

The NFU has been campaigning for the crops industry to be brought in line with reforms already introduced in dairy and pigs, arguing that arable farmers continue to face an uneven balance of power in the marketplace.

Defra’s consultation sought views on issues including contract clarity, standards, sampling and testing procedures, supply volumes, data sharing and dispute resolution.

The department said fairness within the agricultural supply chain is a key priority, with proposals expected to support clearer contracts and stronger protections for producers.

NFU Combinable Crops Board chair Jamie Burrows said the review represents a rare opportunity to deliver lasting change.

He described it as a “once-in-a-generation opportunity to enact positive change for a sector in which the scales have been tipped against growers for far too long”.

“This is about the very survival of our farms,” he said.

Mr Burrows said arable farmers often carry the greatest share of risk, from volatile input costs and unpredictable markets to challenging weather, while receiving the smallest share of the final value.

Growers are almost always the “shock absorber” for the supply chain, he warned, particularly when disputes arise over grain specifications, deductions or quality testing at intake.

In its response, the NFU is calling for reforms to the AIC No.1 Contract, which governs the vast majority of grain sales from farm and sets the terms between growers and purchasers.

The union wants clearer definitions, a fairer balance of power, and greater transparency, including preventing buyers from varying contracts unless expressly agreed at each point of sale.

It is also seeking changes to grain sampling procedures, arguing farmers should have greater involvement and the ability to take representative samples before or during loading.

The NFU said this would help ensure fairer payment decisions and provide independent evidence in the event of disputes.

Another key ask is for immediate feedback of intake data to become a requirement of all contracts, allowing farmers to respond quickly if specification issues arise before further loads are delivered and additional costs incurred.

Mr Burrows said the union’s response reflects widespread concern among growers.

“Our response… 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,” he said.

He added that clearer and more consistent contracts are essential if farmers are to make long-term decisions and invest confidently in the future of the industry.

“A long overdue change of culture will help establish a more resilient, thriving and profitable UK arable sector,” he said.

Defra is expected to consider consultation responses before setting out next steps for the crops supply chain review later this year.