Morrisons is giving an extra 1p per egg back to farmers so more biodiverse farmland can be created for free range hens.
The money raised from the sales of Morrisons For Farmers ‘Chuckle Eggs’ will be used to spearhead farmers' environment projects.
Twelve pence from every pack, which was first launched in 2015, will go back to the farmers who produced the eggs.
The money could be used for projects to plant and manage more woodland and wildflowers on farms, or create new or adapted buildings for birds.
Farms will also be encouraged to set aside land for wild bees and insects to increase their numbers.
The British Egg Industry Council (BEIC) welcomed the retailer's move, as it was 'very important' to encourage hens to fully explore the range.
Mark Williams, BEIC CEO said: “The British Lion Scheme encourages farmers to plant trees that give a natural canopy for the hens, helping the birds to feel protected, alongside activities that encourage the birds to come outside and enjoy the natural environment.”
Free-range hens cost farmers more to keep as they need large outdoor areas to roam in, along with enriched nesting boxes and undercover areas.
They also require an indoor environment with more space and light, nest boxes with wide perches, and spaces for scratching and dust bathing.
Sophie Throup, head of agriculture at Morrisons said: “Improving animal welfare and looking after our farmed and natural environment is important for us and our customers.
"By giving back to our egg farmers, they can create the highest welfare outside and indoor conditions for their hens.
"Planting woodland, pollen and nectar rich habitats will also bring huge and wider benefits to our countryside, and support sustainable food production into the future.”