Commission welcomes political agreement on strengthening farmers’ position

The European Commission welcomes the political agreement reached yesterday between the European Parliament and the Council on the proposal for specific amendments to the legislation governing thecommon organisation of the markets in agricultural products (CMO)and other related provisions of the EU’s agricultural policy. These changes will strengthen the position of farmers in the food supply chain and restore trust between actors in the chain. In particular, these measures will strengthen the position of farmers in negotiations with processors and other actors, ensuring a fairer distribution of the added value of products throughout the supply chain.

The political agreement includes the following improvements:

• Strengthening rules on contracting by requiring farmers to use written contracts, providing them with predictability and transparency;
• Strengthening the position of producer organisations by increasing their capacity to organise in the market, in particular by simplifying the rules for the recognition of associations of producer organisations (APOs);
• Establishing rules on the use of optional terms for expressions such as ‘fair’, ‘equitable’ and equivalents, as well as for ‘short supply chains’;
• Introduce the possibility forthe EU to provide additional financial support to Member States for measures taken in periods of serious market imbalances.

The agreement also includes the protection of terms related to cuts or species of meat, which will now only be used to designate meat products and will exclude, among others, products derived from cell or tissue cultures. Preparations such as hamburgers or sausages, which may be meat-based or contain other products of plant origin, will not be covered by this protection.

The provisional agreement retains the essence ofthe proposal presented by the Commission in December 2024and is also in line with the recommendations ofthe Strategic Dialogue on the Future of EU Agricultureof September 2024.

Next steps

The political agreement will need to be confirmed by the co-legislators as soon as possible.

The impact of the proposal will depend on the adoption of certain voluntary measures by farmers and purchasers of agricultural products, as well as on the decision of Member States to make use of the options and exceptions provided for.

Background

The agricultural sector, and farmers in particular, face a number of challenges. The destabilised distribution of added value along the food chain has increased the uncertainty in which farmers operate, fuelling mistrust. Pressure on agricultural incomes is expected to continue, as farmers face increasing risks and rising input costs.

The European Commission’s Policy Guidelines 2024-2029emphasise the need for farmers to have fair and sufficient incomes, as well as the need to correct existing imbalances, strengthen their position and better protect them against unfair trading practices. The Commission therefore presented a proposal to amend some of the rules of the common organisation of the markets in agricultural products (CMO) in order to strengthen the position of farmers in the food chain.

More information: European Commission