Council of European Union approves negotiating mandate to strengthen farmers' position in food supply chain; proposal includes mandatory written contracts, revision clauses for long-term agreements

May 19, 2025 (press release) –

Today member states' representatives in the Special Committee on Agriculture (SCA) approved the Council’s negotiating mandate on a targeted amendment of the regulation on the common market organisation of agricultural products (CMO) and of the two other acts governing the common agricultural policy. These changes aim to address the growing challenges faced by farmers and boost their position within the food supply chain.

The proposed rules are designed to give farmers a stronger negotiating position so that powerful actors in the food supply chain do not impose unfavourable conditions on them. By empowering farmers, the updated rules will contribute to stabilising their incomes and ensuring fairer livelihoods in agriculture.

Farmers play a vital role in our lives, but they remain the weakest link in the agrifood supply chain. The new rules aim to improve their bargaining power, ensuring they can make a fair and dignified living from their hard work. The ultimate goal is to restore trust throughout the food supply chain.

Czesław Siekierski, Polish Minister for Agriculture and Rural Development

Main elements of the proposal

The proposed amendments to the CMO regulation focus on several key areas, in order to strengthen the role of farmers in the food supply chain by:

• making written contracts a general obligation between farmers and buyers and by improving the way long-term contracts take into account market developments, fluctuations of costs and economic conditions
• introducing a revision clause in long-term contracts, to better protect farmers in the long run and to ensure they are not locked into unfavourable terms
• streamlining the rules for the legal recognition of producer organisations
• strengthening producer organisations and their associations by allowing member states to grant them more financial support through CAP sectoral interventions
• encouraging young and new farmers to join recognised producer organisations through incentives
• defining the conditions of use of optional terms like 'fair', 'equitable', and 'short supply chain' when marketing agricultural products

Main changes agreed by the Council

The Council supports the main elements and the overarching goals of the proposal but suggests a series of improvements in its negotiating mandate.

Written contracts

The Commission proposed introducing compulsory written contracts for each delivery of agricultural products, with certain exceptions.

In its mandate, the Council suggested a series of amendments clarifying who is covered by the obligation for written contracts. It also introduced further exceptions, with the aim of granting more flexibility to member states in adjusting the obligation to their specific needs, depending on the sector and product.

In particular, member states will be able to decide that a written contract is not necessary if the first purchaser of agricultural products is a micro or small-sized enterprise, the delivery of goods takes place and payment is made at the same time, or if the value of deliveries does not exceed a maximum of €20 000.

Revision clause for contracts

Furthermore, farmers would be able to trigger the revision clause for long-term contracts after 12 months, instead of the six months proposed by the Commission. This aims to guarantee predictability and stability in the supply chain, while ensuring that farmers are protected, in particular in situations where the price they receive for their products no longer covers production costs.

Mediation mechanism

The Commission proposed establishing mandatory mediation mechanisms between farmers and their buyers to encourage parties to reach an amicable settlement in the event of disputes over the conclusion or review of a written contract.

In order to reduce the administrative burden and respect the specific situation of member states, the Council agreed that the mediation mechanisms should be voluntary, meaning that it would be up to the member states to decide whether to establish them.

Entry into force

The Council agreed that there would be a transition period of two years, compared with the 18 months provided by the proposal. This will allow the agrifood sector to adapt and prepare for the new rules.

Next steps

With this agreement, the presidency is ready to start negotiations with the European Parliament, once the latter has reached its position.

Background

The CAP already provides for certain measures that aim to improve the position of farmers in the food supply chain. However, the pressure on agricultural incomes is expected to continue as farmers face increasing risks, rising input costs and more stringent production requirements.

On 10 December 2024, the Commission put forward its proposed amendments to the current legal framework set in the regulation establishing a common market organisation of agricultural products.

The proposal directly reflects several recommendations of the strategic dialogue on the future of EU agriculture and responds to some of the most pressing challenges that the agricultural sector is facing, including Russia's ongoing war of aggression against Ukraine, rising input costs and increasing production requirements.

• Commission proposal
• The common agricultural policy explained (background information)

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