Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulations (EU) No 1308/2013, (EU) 2021/2115 and (EU) 2021/2116 as regards the strengthening of the position of farmers in the food supply chain
Date: 2024-12-10
Institutions: Directorate-General for Agriculture and Rural Development, European Commission
Subjects: EU financing arrangements, aid to agriculture, common agricultural policy, contract, farmer, operational programme, producer organisation, supply chain, sustainable agriculture, young farmer

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   EUROPEAN COMMISSION  Brussels, 10.12.2024  COM(2024) 577 final 2024/0319 (COD)  Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulations (EU) No 1308/2013, (EU) 2021/2115 and (EU) 2021/2116 as regards the strengthening of the position of farmers in the food supply chain  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

Through  successive  reforms,  the  Common  Agricultural  Policy  (‘CAP’)  has  shifted  towards 
income support and market orientation with free formation of prices for agricultural products. 
Those  reforms  mainly  responded  to  endogenous  challenges,  surpluses  and  crises.  However, 
most  of  the  challenges  of  the  agricultural  sector  are  driven  by  factors  that  are  external  to 
agriculture and require a broader policy response.  

The  CAP  already  provides  for  certain  measures  that  aim  at  strengthening  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.  

The Covid-19 pandemic and Russia’s ongoing war of aggression against Ukraine have led to 
an unprecedented increase of energy-related agricultural inputs costs and a prolonged period 
of  high  inflation,  affecting  farmers’  costs  and  food  prices.  In  parallel,  farmers  continue  to 
undertake efforts to make their production more sustainable in line with EU standards.  

Moreover,  many  consumers,  dealing  with  an  increased  cost  of  living,  have  directed  their 
consumption patterns towards less expensive food products. This has further destabilised the 
distribution of value added along the food supply chain, creating instability in the allocation 
of profits and costs between the actors of the chain, fuelling protests and increasing mistrust. 

On 15 March 2024, the Commission put forward a reflection paper in which it announced a 
set  of  measures  intended  to  enhance  the  position  of  farmers  in  the  food  supply  chain.  A 
targeted  amendment  of  Regulation  (EU)  No  1308/2013  and  related  CAP  Regulations  was 
included in the set of measures that the Commission announced.   

The Agriculture and Fisheries Council of 26 March 2024 supported the measures announced 
in the reflection paper.  

The  Political  Guidelines  for  the  next  European  Commission  2024-2029 emphasise  the  need 
for farmers to have a fair and sufficient income and the need to correct existing imbalances, 
strengthen farmers’ position and further protect them against unfair trading practices. 

Moreover,  the  Strategic  Dialogue  on  the  Future  of  EU  Agriculture,  announced  by  the 
President  of  the  European  Commission  in  her  State  of  the  Union  Address  on  13 September 
2023 and launched in January 2024, which brought together 29 major stakeholders from the 
European agri-food sectors, civil society, rural communities and academia in its final report1 
called  for  adjustments  to  the  farmers’  position  in  the  value  chain.  The  Guiding  Political 
Principles of the Strategic Dialogue report clearly highlight that market conditions must allow 
for  decent  revenues  for  farmers  and  other  food  chain  actors  and  that  power  relations  in  the 
food  chain  must  be  well  balanced.  The  first  chapter  of  recommendations  of  the  Strategic 
Dialogue deals  with  a  fair and competitive food  value chain  through strengthening farmers’ 
position in the food value chain. Recommendations refer, in particular, to contracts, inviting 
to  consider  data  on  production  costs  and  prices  as  relevant  elements  in  contractual 
negotiation, and the possibility to open up negotiations in case of an exceptional cost increase. 
They  also  mention  the  importance  of  mediation  mechanisms.  Concerning  cooperation,  they 

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Strategic Dialogue on the Future of EU Agriculture. 

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call  for  reinforcement  of  Producer  Organisations  (POs),  Associations  of  Producer 
Organisations  (APOs),  as  well  as  simplification  of  their  recognition  process  and  targeted 
support in their favour. The Strategic Dialogue recognises that economic, environmental, and 
social dimensions of sustainability are of equal importance for European societies in general 
and  the  agri-food  systems  in  particular,  and  that  the  CAP  should  promote  positive 
environmental  and  social  outcomes  and  support  the  diversification  of  sustainable  business 
model, including for example short supply chains. 

In  line  with  the  recommendations  of  the  Strategic  Dialogue  report,  it  is  thus  appropriate  to 
take  measures  to  strengthen  the  contractual  position  of  farmers  and  restore  the  trust  of  the 
actors in the food supply chain. 

• 

Consistency with existing policy provisions in the policy area 

Article 39 TFEU sets out the objectives of the CAP: 

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to increase agricultural productivity by promoting technical progress and by ensuring 
the rational development of agricultural production and the optimum utilisation of the 
factors of production, in particular labour; 
thus to ensure a fair standard of living for the agricultural community, in particular by 
increasing the individual earnings of persons engaged in agriculture; 
to stabilise markets; 
to assure the availability of supplies; 
to ensure that supplies reach consumers at reasonable prices. 

This proposal is consistent with those objectives and with the general philosophy of the CAP 
Regulations  currently  in  force  (the  Common  Market  Organisation  Regulation2,  the  CAP 
Strategic Plan Regulation3, and the Regulation on the Financing, management and monitoring 
of the CAP4).  

• 

Consistency with other Union policies 

This  proposal  amends  a  limited  number  of  provisions  of  the  CAP  Regulations  currently  in 
force,  without  altering  their  essence.  As  those  provisions  are  consistent  with  other  Union 
policies, the proposal is also consistent with those policies.  

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The legal basis for this proposal is the first subparagraph of Article 42 and Article 43(2) of the 
Treaty on the Functioning of the European Union (TFEU)  because:  (i) the proposal amends 

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Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 
establishing  a  common  organisation  of  the  markets  in  agricultural  products  and  repealing  Council 
Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001  and (EC) No 1234/2007, (OJ L 
347 20.12.2013, p. 671, ELI: http://data.europa.eu/eli/reg/2013/1308/2024-05-13). 
Regulation  (EU)  2021/2115  of  the  European  Parliament  and  of  the  Council  of  2  December  2021 
establishing rules on support for strategic plans to be drawn up by Member States under the common 
agricultural  policy (CAP  Strategic  Plans)  and  financed  by the  European  Agricultural  Guarantee  Fund 
(EAGF)  and  by  the  European  Agricultural  Fund  for  Rural  Development  (EAFRD)  and  repealing 
Regulations  (EU)  No  1305/2013  and  (EU)  No  1307/2013,  (OJ  L  435  6.12.2021,  p.  1,  ELI: 
http://data.europa.eu/eli/reg/2021/2115/2024-05-25). 
Regulation (EU) 2021/2116 of the European Parliament and of the Council of 2 December 2021 on the 
financing,  management  and  monitoring  of  the  common  agricultural  policy  and  repealing  Regulation 
(EU)  No  1306/2013,  (OJ  L  435  6.12.2021,  p.  187,  ELI:  http://data.europa.eu/eli/reg/2021/2116/2022-
08-26). 

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Regulation (EU) No 1308/2013, Regulation (EU) 2021/2115 and Regulation (EU) 2021/2116, 
which are  all  based on  Article 43(2)  TFEU;  and (ii)  Regulation  (EU)  No 1308/2013  is  also 
based on the first subparagraph of Article 42 TFEU and this proposal also contains provisions 
that regulate the (non)application of competition rules.    

• 

Subsidiarity (for non-exclusive competence)  

This proposal amends existing Regulations adopted at the EU level and that are applicable in 
all Member States.  

The amendments seek to strengthen the position of farmers in the agri-food supply chain by: 
(i) simplifying the rules on recognition of producer organisations; (ii) reinforcing the rules on 
contractualisation; (iii) setting out rules on the use of cross-sectoral optional terms for “fair”, 
“equitable”  and  equivalent  terms,  as  well  as  for  “short  supply  chains”;  (iv)  introducing  the 
possibility  to  grant  Union  financial  support  to  Member  States  for  measures  undertaken  by 
operators  in  periods  of  severe  market  imbalances;  and  (v)  improving  the  degree  of 
organisation  of  the  farming  sector    in  Member  States  by  supporting  producer  organisations 
implementing operational programmes, and improving the take-up of sectoral interventions in 
the other sectors as referred to in Article 42(f) of Regulation (EU) 2021/2115.  

The  amendments  maintain  the  level-playing  field  between  producers  and  the  degree  of 
harmonisation  already  achieved  by  the  existing  Regulations.  It  is  therefore  considered  that 
they cannot be implemented by Member States acting alone. 

• 

Proportionality 

The proposal amends existing Regulations only to the extent strictly necessary to achieve the 
objectives outlined above, while ensuring that the amendments remain targeted and providing 
for appropriate flexibilities.  

The proposed amendments modify only specific aspects of a limited number of provisions in 
the  existing  Regulations.  They  enhance  and  further  strengthen  existing  provisions  regarding 
contracts involving farmers and their organisations with other actors in the chain, as well as 
reinforce  the  bargaining  power  of  producer  organisations  and  their  associations,  reduce  the 
administrative burden for their recognition, and establish an inducive framework for voluntary 
schemes and agreements aimed at improving farmers’ remuneration and social sustainability 
initiatives. 

• 

Choice of the instrument 

Since  this  proposal  amends  existing  Regulations  of  the  European  Parliament  and  of  the 
Council, the amendments must also be introduced by a Regulation of the European Parliament 
and of the Council.  

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

The proposal for targeted changes to the CMO Regulation and other CAP-related Regulations 
is  one  of  the  measures  announced  in  the  Commission’s  reflection  paper  of  15  March  2024. 
Due  to  the  urgency  to  respond  to  the  pressing  challenges  that  the  agricultural  sector  is 
currently  facing  and  the  urgency  to  act  to  respond  to  farmer  protests,  no  ex-post 
evaluation/fitness check of existing legislation was conducted. 

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• 

Stakeholder consultations 

Due to the urgency to act to respond to the pressing challenges of the European agricultural 
sector,  no  call  for  evidence  or  public  consultation  have  been  conducted.  However,  relevant 
stakeholders were consulted through targeted meetings (see ‘Collection and use of expertise’).  

• 

Collection and use of expertise 

While no call for evidence or public consultation were conducted due to the urgency to act, 
the  Commission  has  presented  the  proposed  measures  several  times  to  the  Council,  an 
enlarged Civil Dialogue Group meeting with the relevant stakeholders, the European Network 
of  the  Competition  authorities  and  in  bilateral  meetings  involving  all  relevant  EU  based 
associations within the agri-food supply chain, including consumers.  

• 

Impact assessment 

In view of the urgency to act to respond to the pressing challenges that the agricultural sector 
is currently facing, no impact assessment could be conducted. 

However,  the  measures  proposed  have  been  developed  on  the  basis  of  input  received  from 
stakeholders, in particular the enlarged Civil Dialogue Group meeting, the European Network 
of  the  Competition  authorities  and  in  bilateral  meetings  involving  all  relevant  EU  based 
associations  within  the  agri-food  supply  chain,  including  consumers,  as  well  as  from  the 
Chairman of the European Parliament’s Committee for agriculture and rural development.  

They  are  also  in  line  with  the  relevant  recommendations  of  the  Strategic  Dialogue  on  the 
Future of EU Agriculture of September 2024. 

The  impact  of  the  proposal  will  depend  on  the  take-up  of  certain  voluntary  measures  by 
farmers and buyers of agricultural products, as well as on the decisions of Member States to 
make use of the options and derogations provided.  

A  staff  working  document  will  be  produced  within  three  months  after  the  adoption  of  the 
proposal. It will clearly describe the issues addressed, the targeted changes proposed and their 
likely impact, as well as a summary of stakeholder feedback received. 

• 

Regulatory fitness and simplification 

The present proposal is one of the measures announced in the Commission’s Reflection Paper 
of  15  March  2024  as  part  of  the  Simplification  Package.  Quantification  of  the  reduced 
administrative burden will be presented in the staff working document, to the extent possible. 

• 

Fundamental rights 

This  proposal  respects  the  fundamental  rights  and  observes  the  principles  recognised  by,  in 
particular, the Charter of Fundamental Rights of the European Union. 

4. 

BUDGETARY IMPLICATIONS 

This proposal does not have any quantifiable budgetary impact. 

While  measures  12-17  (listed  under  Point  5  Other  elements  –  Detailed  explanation  of  the 
specific  provisions  of  the  proposal)  may  accelerate  the  implementation  of  operational 
programmes by producer organisations and consequently increase the expenditure, any related 
expenditure will remain under the EAGF sub-ceiling. 

As regards the agricultural reserve funded under EAGF, the proposal does not provide for any 
changes  to  its  overall  amount.  While  the  use  of  the  reserve  to  finance  measures  adopted 
pursuant  to  Article  222  CMO  may  have  consequences  regarding  the  possible  allocation  of 

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amounts  for  other  exceptional  measures  in  a  given  year,  these  cannot  be  quantified  at  this 
stage. 

The  Union  financial  assistance  of  fruit  and  vegetables’  producer  organisations  approved  by 
Member States for the implementation of operational programmes will be limited to a certain 
percentage  (from  4.1  %  to  5.5  %  depending  on  the  type  of  beneficiaries  and  the  objectives 
pursued) of the value of marketed production of those producer organisations.  

The proposal contains provisions giving Member States a degree of flexibility in relation to 
the financial allocations for types of intervention in form of direct payments and for types of 
intervention  in  ‘other’  sectors.  The  funds  made  available  for  Union  financial  assistance  to 
producer  organisations  operating  in  ‘other’  sectors  will  be  limited  to  amounts  transferred 
(within the limits of the related legal provision) from direct payments decided by the Member 
States and approved by the Commission. In case Member States decide to use that flexibility, 
it  will  impact  solely  the  allocations  of  direct  payments  and  ‘other’  sectors,  and  the  change 
remains within EAGF. The impact cannot be quantified at this stage. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

The  present  proposal  amends  Regulation  (EU)  No  1308/2013,  Regulation  (EU)  2021/2115 
and  Regulation  (EU)  2021/2116.  Therefore,  the  implementation  plan  and  monitoring, 
evaluation and reporting arrangements remain the same as under the current framework. 

• 

Explanatory documents (for directives) 

Not applicable (the legal text is a Regulation) 

• 

Detailed explanation of the specific provisions of the proposal 

First, minimum requirements for the use of terms describing commercial modalities ensuring 
the fair allocation of value-added to farmers should be established. The aim is to increase the 
transparency  and  reliability  of  the  use  of  those  terms  to  ensure  the  fair  allocation  of  value-
added  along  the  food  supply  chain,  to  prevent  the  misuse  of  such  terms  and  to  ensure  that 
consumers have reliable information  about  the fair allocation of value-added to  farmers and 
short supply chains.  

Second, each delivery of agricultural products should be covered by a written contract, subject 
to  certain  exceptions  and  to  the  possibility  for  the  Member  States  to  exempt  certain 
agricultural products from that requirement.  

Third,  written  contracts  should  include  certain  elements  ensuring  transparency  and 
predictability in the calculation of the final price.  

Fourth, contracts with a duration of more than six months should include a revision clause to 
allow farmers, producer  organisations or  associations  of producer organisations to  request  a 
revision  of  the  contract,  in  particular  in  situations  where  the  price  would  no  longer  cover 
production costs and to terminate the contract if such request is refused.   

Fifth, Member States should establish a mediation mechanism and make it available to parties 
that wish to use it.  

Sixth,  existing  rules  on  the  definition  and  recognition  of  producer  organisations  should  be 
simplified.  Moreover,  to  enhance  collaboration  between  organic  product  producers,  the 

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establishment and recognition of producer organisations by  those producers should be made 
explicitly possible.  

Seventh, existing rules on producer organisations should be clarified to ensure that producer 
organisations are established at the initiative of farmers and are controlled in accordance with 
rules  that  enable  farmer  members  to  scrutinise  democratically  their  organisations  and  the 
decisions of such organisations. 

Eighth,  it  should  be  permitted  for  non-recognised  producer  organisations,  including 
cooperatives, to negotiate contract terms, on behalf of their members for some or all of their 
production.  

Ninth, recognised associations of producer organisations should be able to negotiate contract 
terms on behalf of their recognised producer organisations members.  

Tenth,  the  promotion  of  the  use  of  initiatives  with  optional  terms  used  to  designate 
commercial modalities, such as ‘fair’, ‘equitable’ or their equivalent terms and ‘short supply 
chain’ should be included in the list of objectives that a recognised interbranch organisation 
can pursue.  

Eleventh,  vertical  and  horizontal  cooperation  initiatives  concerning  agricultural  and  food 
products, which aim to apply certain social sustainability requirements that are more stringent 
than  the  mandatory  requirements,  should  not  be  subject  to  the  application  of  Article  101(1) 
TFEU.  

Twelfth, Regulation (EU) 2021/2115 should be amended as regards the types of interventions 
in  certain  sectors.  Moreover,  the  Union  financial  assistance  to  operational  programmes  in 
certain sectors should be increased. 

Thirteenth, the Union financial support to operational programmes implemented by producer 
organisations  in  the  fruit  and  vegetable  sector  in  Member  States  in  which  the  degree  of 
organisation  of  producers  is  below  10  %  for  three  consecutive  years  preceding  the 
implementation of the operational programme should be increased from 50 % to 60 %. 

Fourteenth, a specific incentive should be granted to young farmers and new farmers joining a 
recognised  producer  organisation  and  who  undertake  investments  implemented  at  their 
premises. 

Fifteenth, the Union financial support to producer organisations and associations of producer 
organisations in the event of adverse meteorological events, natural disasters, plant diseases or 
pest infestations should be increased from 50 % to 70 % of the actual expenditure incurred, 
under certain conditions.   

Sixteenth, Member States should be allowed, as of 2025, to use up to 6 % of their allocations 
of direct payments to support the sectors set out in Article 1(2), points (a) to (h), (k), (m), (o) 
to  (t)  and  (w),  of  Regulation  (EU)  No  1308/2013  and  sectors  covering  products  listed  in 
Annex VI to Regulation (EU) 2021/2115. 

Seventeenth,  Regulation  (EU)  2021/2116  should  be  amended  to  enable  the  use  of  the 
agricultural  reserve  in  support  of  specific  categories  of  collective  actions  by  certain  private 
operators  adopted  with  a  view  to  stabilise  the  sectors  concerned  by  a  severe  market 
imbalance. 

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2024/0319 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Regulations (EU) No 1308/2013, (EU) 2021/2115 and (EU) 2021/2116 as 
regards the strengthening of the position of farmers in the food supply chain 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 42, first subparagraph, and Article 43(2) thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Having regard to the opinion of the Court of Auditors1, 
Having regard to the opinion of the European Economic and Social Committee2, 
Having regard to the opinion of the Committee of the Regions3, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

The agricultural sector, in particular farmers, face a range of challenges. The Covid-19 
pandemic  and  Russia’s  ongoing  war  of  aggression  against  Ukraine  have  led  to  an 
unprecedented  increase  of  energy-related  agricultural  input  costs  and  a  prolonged 
period of high inflation, affecting farmers’ costs and food prices. In parallel, farmers 
continue  to  undertake  efforts  to  make  their  production  more  environmentally 
sustainable.  Many  consumers,  dealing  with  an  increased  cost  of  living,  have  also 
directed  their  consumption  patterns  towards  less  expensive  food  products.  This  has 
further destabilised the distribution of value added along the food supply chain and has 
increased  the  degree  of  uncertainty  in  which  farmers  operate,  fuelling  protests  and 
mistrust. It is thus appropriate to adopt measures to tackle those challenges and restore 
the trust of the actors in the food supply chain.  

Various  operators  within  the  agricultural  and  food  supply  chain,  active  at  different 
stages  of  production,  processing,  marketing,  distribution,  and  retail,  have  developed 
schemes and  labels  to  promote  commercial modalities  ensuring  the fair  allocation of 
value  added  to  farmers  and  the  creation  and  maintenance  of  short  supply  chains. 
Establishing  minimum  requirements  for  the  use  of  optional  terms  describing  those 
commercial modalities is necessary to increase the transparency and reliability of the 
use  of  those  terms  in  the  food  supply  chain,  complementing  existing  food  labelling 

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OJ C, … 
OJ C, … 
OJ C, … 

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(3) 

(4) 

(5) 

(6) 

rules, in particular Regulation (EU) No 1169/2011 of the European Parliament and of 
the Council4.  

In  the  interest  of  increased  trust  and  fairness  along  the  food  supply  chain,  the  terms 
‘fair’,  ‘equitable’  or  equivalent  terms,  should  be  used  only  to  designate  commercial 
modalities  that  ensure  stability  and  transparency  in  commercial  relations  between 
farmers and purchasers and pricing considered equitable by participating farmers, and 
that  support  and  contribute  to  the  United  Nations  Sustainable  Development  Goals, 
including in a manner that is consistent with Annex I of Directive (EU) 2024/1760 of 
the European Parliament and of the Council5. 

The term ‘short supply chain’ should be used only to designate commercial modalities 
where  a  direct  connection  exists  between  farmers  and  consumers  that  allows  to 
directly  exchange  on  the  production  process  and  the  product,  including  by  means  of 
distance communication and/or via an intermediary who ensures such exchange at the 
moment  of  sale.  Alternatively,  this  term  may  also  be  used  where  a  close  connection 
between farmers and consumers within their geographic proximity exists, including in 
cross-border  contexts.  This  will  incentivise  consumers  to  pay  prices  that  fairly 
remunerate  farmers  for  what  they  produce,  strengthen  and  contribute  to  the 
development of rural areas, improve transparency regarding the origin and production 
methods of the products. 

In  light  of  market  conditions,  evolving  consumer  expectations,  advances  both  in 
marketing  standards  and  in  relevant  international  standards,  implementing  powers 
should be conferred on the Commission to ensure uniform conditions for the use of the 
optional terms designating commercial modalities related to the fair allocation of value 
added  to  farmers  and  the  creation  and  maintenance  of  short  supply  chains.  Those 
powers should be exercised in accordance with  Regulation (EU) No 182/2011 of the 
European Parliament and of the Council6. 

For those same reasons, the power to adopt acts in accordance with Article 290 of the 
Treaty  on  the  Functioning  of  the  European  Union  should  be  delegated  to  the 
Commission  in  respect  of  additional  optional  terms  that  are  equivalent  to  the  terms 
‘fair’ or ‘equitable’.  

(7)  While  Member  States  may  retain  or  introduce  national  provisions  stipulating 
supplementary requirements for the use of optional terms for commercial modalities, 
those  provisions  should  not  hinder,  limit,  or  obstruct  the  use  of  these  terms  for 
products legally produced or marketed in another Member State. 

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Regulation (EU) No 1169/2011 of the European Parliament and of the Council of 25 October 2011 on 
the  provision of food information to consumers, amending Regulations (EC) No 1924/2006 and (EC) 
No  1925/2006  of  the  European  Parliament  and  of  the  Council,  and  repealing  Commission  Directive 
87/250/EEC, Council Directive 90/496/EEC, Commission Directive 1999/10/EC, Directive 2000/13/EC 
of the European Parliament and of the Council, Commission Directives 2002/67/EC and 2008/5/EC and 
Commission  Regulation 
(OJ  L  304,  22.11.2011,  p.  18,  ELI: 
http://data.europa.eu/eli/reg/2011/1169/oj). 
Directive (EU) 2024/1760 of the European Parliament and of the Council of 13 June 2024 on corporate 
sustainability due diligence and amending Directive (EU) 2019/1937 and Regulation (EU) 2023/2859, 
(OJ L, 2024/1760, 5.7.2024, ELI: http://data.europa.eu/eli/dir/2024/1760/oj).   
Regulation  (EU)  No  182/2011  of  the  European  Parliament  and  of  the  Council  of  16  February  2011 
laying down the rules and general principles concerning mechanisms for control by the Member States 
of  the  Commission's  exercise  of  implementing  powers  (OJ  L  55,  28.2.2011,  p.  13,  ELI: 
http://data.europa.eu/eli/reg/2011/182/oj). 

(EC)  No  608/2004 

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(8) 

(9) 

The  use  of  written  contracts  plays  a  crucial  role  in  the  accountability  of  operators, 
raising awareness about the importance of market signals, adapting supply to demand, 
improving  price  transmission  within  the  supply  chain,  enhancing  transparency  and 
preventing and addressing unfair trading practices. The rules on contractual relations 
in  the  milk  and  milk  products  sector  should  therefore  be  extended  to  cover  products 
other than raw milk, while ensuring alignment with the rules on contractual relations 
applicable to other agricultural sectors. 

to  enhance  collaboration  between  organic  product  producers, 

In  order to  increase  flexibility  for Member States and simplify the procedure for  the 
recognition  of  producer  organisations,  thereby  reducing  transaction  costs  and 
improving  efficiency,  the  rules  on  producer  organisations  should  allow  for  their 
recognition  following  a  single  request  covering  multiple  sectors  and  products. 
the 
Moreover, 
establishment and recognition of producer organisations by organic product producers 
should  be  explicitly  provided  for.  The  criteria  for  the  recognition  of  producer 
organisations  and  their  statutes  should  also  provide  that  producer  organisations  are 
established at the initiative of farmers and are controlled in accordance with rules that 
enable farmer members  to  scrutinise democratically their  organisation and decisions. 
This should not preclude other producers that are not farmers, and non-producers from 
joining producer organisations.  

(10)  To  promote  further  sustainable  development,  which  is  a  core  principle  of  the  Treaty 
and  a  priority  objective  for  the  policies  of  the  Union,  and  to  ensure  transparency, 
stability  and  fairness  in  commercial  relations  between  farmers  and  purchasers 
throughout  the  supply  chain,  Member States  should  be  able  to  recognise  producer 
organisations that pursue specific aims with optional terms for commercial modalities, 
such as ‘fair’, ‘equitable’ or equivalent terms, and ‘short supply chain’. 

(11)  To ensure a fair standard of living for farmers, enhance their bargaining position vis-à-
vis processors and other actors in the supply chain and provide for a fairer distribution 
of added value along the supply chain, the possibility of negotiating contract terms on 
behalf of their members should be extended to non-recognised producer organisations, 
including cooperatives, for some or all of their production. To ensure equal treatment 
with members of recognised producer organisations, this possibility should be subject 
to  appropriate  limits.  In  particular,  non-recognised  producer  organisations  benefiting 
from that possibility should comply with the recognition criteria set at Union level and 
engage  in  the  activities  set  out  in  Regulation  (EU)  No  1308/2013  of  the  European 
Parliament  and  of  the  Council7,  including  concentrating  supply  and  placing  their 
members’ products on the market.   

(12)  To  strengthen  the  negotiating  position  of  recognised  producer  organisations  and  to 
ensure  the  viable  development  of  agricultural  production,  recognised  associations  of 
producer organisations should be allowed to negotiate contract terms on behalf of their 
members,  including  price,  for  some  or  all  of  their  members’  production.  This 
possibility should be allowed, subject to the safeguard that the organisations which are 
members  of  those  associations  are  not  also  members  of  another  association  of 
producer  organisations  and  the  volume  of  products  covered  by  the  activities  of  the 

7 

Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 
establishing  a  common  organisation  of  the  markets  in  agricultural  products  and  repealing  Council 
Regulations (EEC) No 922/72,  (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007 (OJ L 
347, 20.12.2013, p. 671, ELI: http://data.europa.eu/eli/reg/2013/1308/oj). 

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association does not exceed 33% of the total national production of any given Member 
State.  In  order  to  maintain  effective  competition  on  the  market,  recognised 
associations of producer organisations should also not be allowed to negotiate contract 
terms where those associations include non-recognised producer organisations.  

(13)  To  prevent  purchasers  from  undermining  the  bargaining  position  of  producer 
organisations,  appropriate  safeguards  should  be  established  for  contacts  between 
purchasers  and  members  of  those  producer  organisations.  While  purchasers  may 
contact  members of producer organisations, those contacts  should  not  undermine the 
objectives of the producer organisations, or the concentration of supply and placing of 
products on the market.  

(14) 

Interbranch organisations play an important role in facilitating dialogue between actors 
in the supply chain, and in promoting best practices, market transparency, stability and 
fairness  in  commercial  relations  between  farmers  and  purchasers  throughout  the 
supply chain. It is therefore appropriate to include the promotion of initiatives for the 
inclusion  of  optional  terms  for  commercial  modalities,  such  as  ‘fair’,  ‘equitable’  or 
equivalent  terms,  and  ‘short  supply  chain’  in  the  list  of  objectives  that  a  recognised 
interbranch organisation may pursue.  

(15)  Certain Member States have decided that all deliveries of agricultural products in their 
territory are to be covered by written contracts between the parties. Where the Member 
States  do  not  make  use  of  this  possibility,  farmers,  producer  organisations  or 
associations  of  producer  organisations  can  request  the  use  of  written  contracts. 
However, due to the weaker bargaining position of farmers and the fear of commercial 
retaliation by purchasers, it can be difficult for farmers and their associations to make 
such a request. To increase trust, transparency, and efficiency within the supply chain 
and  to  enable  all  farmers,  producer  organisations  and  associations  of  producer 
organisations  to  benefit  from  the  use  of  written  contracts,  deliveries  of  agricultural 
products  in  the  Union  by  a  farmer,  a  producer  organisation  or  an  association  of 
producer  organisations  to  a  processor,  distributor  or  retailer  should  be  covered  by  a 
written contract.   

(16)  To  better  take  into  account  the  signals  of  the  market  and  to  improve  price 
transmission, Member States should be able to require the use of written contracts for 
the  delivery  of  agricultural  products  by  producers  other  than  farmers,  by  producer 
organisations or associations of producer organisations, and to require that purchasers 
make use of written offers for contracts for the delivery of agricultural products. In the 
interests  of  simplicity  and  reduction  of  transaction  costs,  this  Regulation  should  lay 
down certain  exceptions to  the required  use of  written contracts  or written offers for 
contracts and allow Member States to exempt certain deliveries from the required use 
of written contracts or written offers, while leaving farmers and their associations the 
possibility of requesting the use of written contracts or written offers when there is no 
such obligation.  

(17)  The required use of written contracts for the delivery of agricultural products and the 
basic conditions for their use should be laid down at Union level, while ensuring that 
the  right  of  the  parties  to  negotiate  all  elements  of  their  contracts  is  not  restricted 
beyond what is strictly necessary.   

(18)  To  encourage  parties  to  reach  an  amicable  settlement  in  case  of  disputes  over  the 
conclusion or review of a written contract, Member States should establish mediation 
mechanisms.  Member  States  should  inform  the  Commission  about  the  mediation 

EN 

10 

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mechanisms in place in their territory or the establishment of those mechanisms, and 
the Commission may facilitate exchanges of best practices about those mechanisms.  

(19)  To facilitate  the functioning  of price transmission mechanisms, where the final  price 
payable  for  the  delivery  of  agricultural  products  is  calculated  by  combining  various 
factors set out in the contract, those factors should include objective indicators, indices 
or methods of calculation that are easily understandable by the parties. To avoid that 
farmers  are  forced to sell systematically  below their production costs, the  indicators, 
indices and methods of calculation of the final price should reflect changes in market 
conditions and production costs of the agricultural products delivered.  

(20)  Considering  the  vulnerable  negotiating  position  of  farmers  and  their  organisations, 
recent instances of significant volatility in agricultural input costs and  market prices, 
and the need for a more efficient price transmission within the supply chain, contracts 
with  a duration of more  than  6 months  should include a revision  clause that  may be 
triggered by the farmers and their organisations. Such a clause should permit farmers 
to request after the 6 months at any moment a revision of the elements of the contract 
and  permit  them  to  end  the  contract  in  case  no  agreement  on  a  revision  is  reached, 
without interfering with the right of the parties to negotiate other possibilities for the 
revision of the contract. 

(21)  To  enhance  contractual  transparency  and  contribute  to  fairer  trading  practices, 
Member  States  should  be  able  to  require  the  registration  of  written  contracts  for  the 
delivery of agricultural products. 

(22)  Certain vertical and horizontal cooperation initiatives concerning agricultural and food 
products, which aim to apply requirements that are more stringent than the mandatory 
requirements,  can  have  positive  effects  on  the  objective  of  the  common  agricultural 
policy  to  ensure  a  fair  standard  of  living  for  the  agricultural  community  and  on  the 
objective  of  sustainable  development  of  the  Union.  Therefore,  under  specific 
circumstances,  such  initiatives  should  not  be  subject  to  the  application  of  Article 
101(1) of the Treaty on the Functioning of the European Union. 

(23) 

In  periods  of  severe  market  imbalance,  specific  categories  of  collective  actions  by 
private  operators  can  contribute  to  stabilise  the  sectors  concerned.  With  a  view  to 
ensuring  that  private  operators  have  the  necessary  resources  to  implement  these 
actions, the Commission should be able to  make  available  Union  resources from  the 
agricultural  reserve  to  support  these  actions.  Member  States  should  also  be  able  to 
allocate additional national resources. 

(24)  To  enable  sugar  beet  growers  to  benefit  from  enhanced  contractual  clarity  and  to 
ensure a harmonised contractual framework while taking account of the specificity of 
the sugar beet sector, purchase terms in contracts for the delivery of sugar beet should 
be  aligned  with  the  conditions  for  the  use  of  written  contracts  in  other  agricultural 
sectors.  

(25)  Regulation (EU) No 1308/2013 should therefore be amended accordingly.  

(26)  To strengthen the position of farmers in  the food supply chain,  several  provisions of 
Regulation (EU) 2021/2115 of the European Parliament and of the Council8 should be 

8 

Regulation  (EU)  2021/2115  of  the  European  Parliament  and  of  the  Council  of  2  December  2021 
establishing rules on support for strategic plans to be drawn up by Member States under the common 
agricultural  policy (CAP  Strategic  Plans)  and  financed  by the  European  Agricultural  Guarantee  Fund 
(EAGF)  and  by  the  European  Agricultural  Fund  for  Rural  Development  (EAFRD)  and  repealing 

EN 

11 

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amended as regards the types of intervention in certain sectors. These amendments aim 
to  support  farmers  to  become  or  remain  members  of  producer  organisations  or 
associations  of  producer  organisations  recognised  under  Regulation  (EU)  No 
1308/2013,  in  light  of  the  positive  role  these  organisations  and  associations  play  in 
strengthening the bargaining power of producers. Moreover, to ensure a more efficient 
and  targeted  support  of  producer  organisations  through  the  CAP  Strategic  Plans,  the 
possibility of an increase of the Union financial assistance to operational programmes 
in certain sectors should be provided for. 

(27)  The  value  of  production  of  fruit  and  vegetables  marketed  by  producer  organisations 
compared  to  the  total  value  of  the  fruit  and  vegetable  production  remains  in  certain 
Member States far below the Union average. Among the financial incentives available, 
Member  States  can  already  provide  national  financial  assistance  as  provided  for  in 
Article 53 of Regulation (EU) 2021/2115 to producer organisations located in certain 
regions  where  the  degree  of  organisation  is  significantly  below  the  Union  average. 
With  a  view  to  enhancing  competitiveness,  strengthening  farmers’  positions  in  the 
value chain and setting up new producer organisations, a financial incentive consisting 
in an increase of 10 % of the Union financial assistance should be granted to producer 
organisations  in  Member  States,  in  which  the  degree  of  organisation  of  producers  is 
below  10  %  for  3  consecutive  years  preceding  the  implementation  of  the  relevant 
operational programme. 

(28)  With  a  view  to  facilitating  the  generational  renewal  in  the  farming  sector  and 
encouraging entrance of new producer members in producer organisations in the fruit 
and  vegetables  sector  and  in  other  sectors  as  referred  to  in  Article  42,  point  (f),  of 
Regulation (EU) 2021/2115, a particular incentive should be granted to young farmers 
and new farmers who join a producer organisation recognised under Regulation (EU) 
No  1308/2013.  Consequently,  a  possible  increase  of  10  %  of  the  Union  financial 
assistance  for  expenditure  related  to  investments  made  at  the  premises  of  a  young 
farmer  or  a  new  producer  who  joins  a  recognised  producer  organisation  for  the  first 
time should be made available. 

(29)  Given  the  recurrence  of  adverse  climatic  events,  natural  disasters,  plant  diseases  or 
pest  infestations  in  recent  years,  it  has  proven  useful  for  producer  organisations  and 
associations  of  producer  organisations  to  be  able  to  redirect  funds,  including  Union 
financial  assistance  within  the  operational  fund,  to  interventions  required  to  address 
the  consequences  of  those  events.  It  is  therefore  necessary  to  provide  for  the 
possibility  of increasing  the Union  financial  assistance laid  down in Article 52(1) of 
Regulation  (EU)  2021/2115  from  50%  to  70%  of  the  actual  expenditure  incurred, 
under certain conditions.  

(30) 

In order to support the setting-up of types of intervention in the other sectors referred 
to  in  Article  42,  point  (f),  of  Regulation  (EU)  2021/2115,  Member  States  should  be 
allowed, as of 2025, further flexibility to adjust the allocation of funds to these sectors 
by using up to 6 % of their allocations for direct payment. 

(31)  Regulation (EU) 2021/2115 should therefore be amended accordingly, 

(32)  With  a  view  to  ensuring  that  Union  resources  from  the  agricultural  reserve  can  be 
made available to the Member States in order to support collective actions by private 

Regulations  (EU)  No  1305/2013  and  (EU)  No  1307/2013,  (OJ  L  435,  6.12.2021,  p.  1,  ELI: 
http://data.europa.eu/eli/reg/2021/2115/oj). 

EN 

12 

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operators in periods of severe market imbalance, the possibility to use the agricultural 
reserve should be extended to the support of collective actions when the Commission 
decides that competition rules do not apply to those actions. 

(33)  Article  16  of  Regulation  (EU)  2021/2116  of  the  European  Parliament  and  of  the 

Council9 should therefore be amended accordingly. 

(34) 

In  order  to  give  the  market  operators  the  necessary  time  to  adapt  and  to  allow  the 
Commission to  assess existing  national  schemes  and practices, the  application of the 
rules  relating  to  the  reservation  of  the  optional  terms  ‘fair’,  ‘equitable’  and  their 
equivalent  terms,  and  the  term  ‘short  supply  chains’,  should  be  deferred  by  2  years 
after  the  entry  into  force  of  this  Regulation.  Additionally,  in  order  for  operators  to 
adapt their contractual relations to the new rules on written contracts,  the application 
of those rules should be deferred by 18 months after its entry into force. 

HAVE ADOPTED THIS REGULATION: 

Article 1 
Amendments to Regulation (EU) No 1308/2013 

Regulation (EU) No 1308/2013 is amended as follows: 

(1) 

In  Part  II,  Title  II,  Chapter  I,  Section  1,  the  following  subsection  is  inserted  after 
Subsection 3: 

Use of optional terms for products in all sectors listed in Article 1(2) 

‘Subsection 3a  

Article 88a    

Optional terms for commercial modalities  

1. 

The  terms  ‘fair’,  ‘equitable’  or  terms  equivalent  to  these  terms  may  be  used  only, 
alone  or  in  combination  with  other  terms,  on  the  labelling,  in  the  presentation,  on 
advertising material or on commercial documents of a product of the sectors listed in 
Article 1(2) that is placed on the market, provided that these terms are used to inform 
purchasers about existing modalities for the organisation of production, distribution, 
or placing on the market, which contribute  at least to:   

(a) 

stability and transparency in the relations of farmers with purchasers along the 
supply chain,  

(b) 

a price considered equitable by participating farmers for their products, and   

9 

Regulation (EU) 2021/2116 of the European Parliament and of the Council of 2 December 2021 on the 
financing,  management  and  monitoring  of  the  common  agricultural  policy  and  repealing  Regulation 
(EU) No 1306/2013, (OJ L 435, 6.12.2021, p. 187, ELI: http://data.europa.eu/eli/reg/2021/2116/oj). 

EN 

13 

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2. 

3. 

4. 

5. 

(c) 

collective initiatives pursuing one or several of the United Nations Sustainable 
Development Goals. 

The term ‘short supply chain’ may be used only, alone or in combination with other 
terms, on the labelling, in the presentation, on advertising material or on commercial 
documents  of  a  product  of  the  sectors  listed  in  Article  1(2)  that  is  placed  on  the 
market, provided that the term is used to inform purchasers about existing modalities 
for  the  organisation  of  production,  distribution,  or  placing  on  the  market,  which 
provide for:    

(a) 

(b) 

a direct connection between the farmer and the final consumer of the product, 
or   

 a  close  connection  and  geographical  proximity  between  the  farmer  and  the 
final consumer of the product.   

The  Commission  may  adopt  implementing  acts  to  specify  further  the  conditions 
referred to in paragraph 1, points (a), (b) and (c), and in paragraph 2, points (a) and 
(b), taking into account any relevant international standard.  

Those  implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 229(2).  

The  Commission  is  empowered  to  adopt  delegated  acts  in  accordance  with  Article 
227,  amending  paragraph  1  to  add  terms  that  are  equivalent  to  the  terms  ‘fair’  or 
‘equitable’, when such equivalent terms are used on the market to inform purchasers 
1. 
about 

commercial  modalities 

paragraph 

referred 

the 

to 

in 

Member  States  may  adopt  or  maintain  national  rules  laying  down  conditions 
additional to those referred to in paragraph 1, points (a), (b) and (c) and in paragraph 
2,  points  (a)  and  (b),  for  the  use  of  the  terms  referred  to  in  paragraphs  1  and  2 
respectively.  Such  rules  shall  not  prohibit,  restrict  or  impede  the  use  of  the  terms 
referred to in paragraphs 1 and 2 for products that are legally produced or marketed 
in another Member State under the terms referred to in paragraphs 1 and 2. 

6.  

This Article shall be without prejudice to the rules laid down in Regulation (EU) No 
1169/2011.’;   

(2) 

Article 148 is replaced by the following:  

‘Article 148 

Contractual relations in the milk and milk products sector 

1. 

Every  delivery  in  the  Union  of  milk  and  milk  products  by  a  farmer,  a  producer 
organisation  or  an  association  of  producer  organisations,  to  a  processor,  collector, 
distributor or retailer shall be covered by a written contract between the parties. 

EN 

14 

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Such contract shall fulfil the conditions laid down in paragraphs 4 and 8. 

For  the  purposes  of  this  Article,  a  "collector"  means  an  undertaking  that  transports 
raw  milk  from  a  farmer  or  another  collector  to  a  processor  of  raw  milk  or  another 
collector, where the ownership of the raw milk is transferred in each case. 

2. 

Member States may also decide that: 

a) 

b) 

the  delivery  of  milk  and  milk  products  by  a  producer  other  than  a  farmer,  a 
producer  organisation  or  an  association  of  producer  organisations  to  a 
processor,  collector,  distributor  or  retailer  shall  be  covered  by  a  written 
contract; 

 the first purchasers of milk and milk products shall make a written offer for a 
contract  for the delivery of  milk and milk products  by the farmer, a producer 
organisation or an association of producer organisations. 

Such  a  contract  or  offer  for  a  contract  shall  fulfil  the  conditions  laid  down  in 
paragraphs 4 and 8. 

3. 

Member States shall establish a mediation mechanism to cover cases in which there 
is no mutual agreement to conclude a contract referred to in paragraphs 1 and 2 or to 
revise such a contract. 

Member  States  shall  inform  the  Commission  of  the  mediation  mechanisms 
established in their territory.  

4. 

The contract or the offer for a contract referred to in paragraphs 1 and 2 shall: 

(a) 

be made in advance of the delivery, 

(b)  be made in writing, and 

(c) 

include, in particular, the following elements: 

(i) 

the price payable for the delivery, which shall: 

– 

– 

be static and set out in the contract; or 

be calculated by combining various factors set out in the contract, 
which  shall  include  objective  indicators,  indices  or  methods  of 
calculation  of  the  final  price,  that  are  easily  accessible  and 
comprehensible  and  that  reflect  changes  in  market  conditions  and 
production  costs,  the  quantities  delivered  and  the  quality  or 
composition of the milk and milk products delivered. To that effect, 
Member  States  may  determine  indicators,  in  accordance  with  
objective criteria based on studies carried out on production and the 
food supply chain. The parties to the contracts shall be free to refer 
to these indicators or any other indicators; 

(ii) 

the  volume  of  raw  milk  or  the  quality  and  quantity  of  milk  or  milk 
products to be delivered, and the timing of such deliveries; 

(iii) 

the duration of the contract, which may include a definite duration or an 
indefinite  duration  with  a  termination  clause.  In  the  case  of  a  contract 

EN 

15 

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with  a  minimum  duration  longer  than  six  months,  the  contract  shall 
include a revision clause that may be triggered by the farmer, a producer 
organisation or an association of producer organisations; 

(iv)  details regarding payment periods and procedures; 

(v) 

arrangements for collecting or delivering milk or milk products; and 

(vi) 

rules applicable in the event of force majeure. 

5. 

By way of derogation from paragraphs 1 and 2, a written contract or a written offer 
for a contract shall not be required in the following cases: 

(a) 

(b) 

(c) 

(d) 

the  milk  or  the  milk  products  concerned  are  delivered  by  a  member  of  a 
producer  organisation  or  cooperative 
the  producer  organisation  or 
cooperative of which it is a member provided that the statutes of that producer 
organisation  or  cooperative  or  the  rules  and  decisions  provided  for  in,  or 
derived  from,  these  statutes  contain  provisions  having  similar  effects  to  the 
provisions set out in paragraph 4; 

to 

the first purchaser of milk or milk products is a micro or small-sized enterprise 
within the meaning of Recommendation 2003/361/EC10; 

the  delivery  and  the  payment  for  the  milk  or  milk  products  take  place 
simultaneously; 

the delivery is made for free or in the context of  the disposal of milk or milk 
products which are no longer fit for sale.  

6. 

Member  States  may  decide  that  a  written  contract  or  a  written  offer  shall  not  be 
required in one or more of the following cases:  

(a) 

(b) 

(c) 

the delivery  concerns products  of a value equal  to  or  below a threshold  to be 
determined by the Member State, which shall not exceed EUR 10 000;   

the  delivery  concerns  milk  and  milk  products  that  are  subject  to  seasonal 
supply or demand fluctuations or perishability;  

the delivery concerns milk and milk products that are subject to traditional or 
customary selling practices.  

Where  pursuant  to  paragraph  5,  points  (b),  (c)  and  (d),  or  paragraph  6,  a  written 
contract  or  a  written  offer  for  a  contract  is  not  required,  a  farmer,  a  producer 
organisation, or an association of producer organisations may require that a delivery 
of milk or milk products be the subject of a written contract or of a written offer for a 
contract. Such a contract or offer for a contract shall fulfil the conditions laid down 
in paragraph 4 and paragraph 8, first subparagraph. 

All  elements  of  contracts  for  the  delivery  of  milk  or  milk  products  concluded 
between  farmers,  producer  organisations  or  associations  of  producer  organisations 
and collectors, processors,  distributors or retailers, including  the elements and their 
components referred to in paragraph 4, point (c), shall be freely negotiated between 
the parties.  

Commission Recommendation of 6 May 2003 concerning the definition of micro, small and medium-
sized enterprises, (OJ L 124, 20.5.2003, p. 36, http://data.europa.eu/eli/reco/2003/361/oj). 

7. 

8. 

10 

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Member States may establish one or more of the following: 

(a) 

in respect of the written contracts referred to in paragraph 1 of this Article:  

(i) 

an  obligation  for  the  parties  to  agree  on  a  relationship  between  a  given 
quantity of milk or milk products delivered and the price payable for that 
delivery; 

(ii) 

a  minimum  duration  which  shall  be  at  least  six  months  and  shall  not 
impair the proper functioning of the internal market; 

(b) 

in  respect  of  the  written  offers  referred  to  in  paragraph  2,  point  (b),  an 
obligation  that  the  written  offer  shall  include  a  minimum  duration  for  the 
contract,  set  by  national  law.  Such  a  minimum  duration  shall  be  at  least  six 
months and shall not impair the proper functioning of the internal market. 

Farmers, producer organisations or associations of producer organisations may refuse 
in writing the minimum duration imposed pursuant to the second sub-paragraph. 

Member  States  may  require  the  purchaser  of  milk  or  milk  products  to  register  the 
written contracts referred to in paragraph 1 prior to the delivery of the milk or milk 
products  concerned  by  the  farmer,  a  producer  organisation  or  an  association  of 
producer  organisations  to  a  collector,  processor,  distributor  or  retailer  in  their 
territory.   

Member States that make use of the options referred to in  paragraphs 2, 6, 8 and 9 
shall notify the Commission of how they are applied. 

The Commission may adopt implementing acts laying down measures necessary for 
the uniform application of paragraphs 4 and 5 and measures relating to notifications 
to  be  made  by  the  Member  States  in  accordance  with  paragraph  10.  Those 
implementing  acts  shall  be  adopted  in  accordance  with  the  examination  procedure 
referred to in Article 229(2).’; 

9. 

10. 

11. 

(3) 

 Article 152 is amended as follows:   

(a) 

paragraph 1 is amended as follows: 

(i) 

point (a) is replaced by the following: 

‘(a) are constituted by producers in one or several sectors listed in Article 1(2) 
or by producers of organic products in one or several sectors listed in  Article 
1(2), and are controlled by farmer members, in accordance with Article 153(2), 
point (c);’;  

(ii) 

in point (b), the introductory sentence is replaced by the following: 

‘(b)  are  formed  on  the  initiative  of  farmers  and  carry  out  at  least  one  of  the 
following activities:’; 

(iii)  point (c)(vi) is replaced by the following: 

‘(vi)  promoting  and  providing  technical  assistance  for  the  use  of  production 
standards, improving product quality and developing products with a protected 

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designation of origin, with a protected geographical indication or covered by a 
national quality label, carrying out initiatives promoting short supply chains or 
the use of the optional terms referred to in Article 88a;’; 

(b) 

in paragraph 1a, the first subparagraph is replaced by the following: 

‘1a.  By  way  of  derogation  from  Article  101(1)  TFEU,  a  producer  organisation 
recognised under paragraph 1 of this Article, or a producer organisation, including a 
cooperative,  that  has  not  been  recognised  as  a  producer  organisation  by  a  Member 
State, but meets the requirements set out in paragraph 1 of this Article and of Article 
154,  may  plan  production,  optimise  the  production  costs,  place  on  the  market  and 
negotiate contracts for the supply of agricultural products, on behalf of its members 
for all or part of their total production.’; 

(c) 

in paragraph 1b, the following second subparagraph is inserted:  

‘By way of derogation from paragraph 1a and the first subparagraph, an association 
of  producer  organisations  recognised  under  Article  156(1)  may  also  carry  out  the 
activities referred to in paragraph 1a, first subparagraph, provided that:  

(a) 

(b) 

(c) 

(d) 

its members have been recognised in accordance with paragraph 1 of this 
Article, 

its  members  are  not  members  of  another  recognised  association  of 
producer organisations for any given product, 

 its  members  comply  with  the  conditions  of  paragraph  1a,  second 
subparagraph, points (a) and (b), 

 the volume of products  covered by the activities referred to  in  the first 
subparagraph of paragraph 1a does not exceed 33% of the total national 
production of any given Member State.’; 

(4) 

Article 153 is amended as follows: 

(a) 

in paragraph 2, point (c) is replaced by the following:  

‘(c) rules enabling the farmer members to scrutinise democratically their organisation 
and its decisions as well as its accounts and budgets;’; 

(b)  paragraph 2a is replaced by the following:  

‘2a.  The  statutes  of  a  producer  organisation  may  provide  for  the  possibility  of 
members  being  in  direct  contact  with  purchasers,  provided  that  such  direct  contact 
does  not  jeopardise  the  objectives  pursued  by  the  producer  organisation,  or  the 
concentration  of  supply  and  placing  of  products  on  the  market  by  the  producer 

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organisation.  Concentration  of  supply  shall  be  deemed  to  have  been  ensured  if  the 
essential elements of the sales such as price, quality and volume are negotiated and 
determined by the producer organisation.’; 

(c) 

paragraph 3 is replaced by the following: 

‘3. Paragraphs 1 and 2 shall not apply to producer organisations in the milk and milk 
products sector.’; 

(5) 

in Article 157(1), point (c), the following point is added: 

‘(xvii) promoting the use of the optional terms referred to in Article 88a.’;  

(6) 

Article 168 is replaced by the following: 

‘Article 168 

Contractual relations 

1. 

Every  delivery  in  the  Union  of  agricultural  products  from  a  sector  listed  in  Article 
1(2),  other  than  milk  and  milk  products  and  sugar,  by  a  farmer,  a  producer 
organisation or an association of producer organisations to a processor, distributor or 
retailer, shall be covered by a written contract between the parties. 

Such contract shall fulfil the conditions laid down in paragraphs 4 and 8.  

2. 

Member States may also decide that:  

(a) 

(b) 

the  delivery  of  agricultural  products  by  a  producer  other  than  a  farmer,  a 
producer  organisation  or  an  association  of  producer  organisations  to  a 
processor, distributor or retailer shall be covered by a written contract,  

the first  purchaser  of the agricultural  product  shall  make a written offer  for a 
contract  for  the  delivery  of  agricultural  products  by  the  farmer,  a  producer 
organisation or an associations of producer organisations. 

Such  a  contract  or  offer  for  a  contract  shall  fulfil  the  conditions  laid  down  in 
paragraphs 4 and 8. 

3. 

Member States shall establish a mediation mechanism to cover cases in which there 
is no agreement to conclude such a contract referred to in paragraphs 1 and 2 or to 
revise such a contract. 

Member  States  shall  inform  the  Commission  about  the  mediation  mechanisms 
established in their territory.  

4. 

The contract or the offer for a contract referred to in paragraphs 1 and 2 shall: 

(a) 

be made in advance of the delivery, 

(b)  be made in writing, and 

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(c) 

include, in particular, the following elements: 

(i) 

the price payable for the delivery, which shall: 

– 

– 

be static and set out in the contract or 

be calculated by combining various factors set out in the contract, 
which  shall  include  objective  indicators,  indices  or  methods  of 
calculation  of  the  final  price,  that  are  easily  accessible  and 
comprehensible  and  that  reflect  changes  in  market  conditions  and 
production  costs,  the  quantities  delivered  and  the  quality  or 
composition  of  the  agricultural  products  delivered;  to  that  effect, 
Member  States  may  determine  indicators,  in  accordance  with 
objective criteria based on studies carried out on production and the 
food supply chain. The parties to the contracts shall be free to refer 
to  these  indicators  or  any  other  indicators  which  they  deem 
relevant. 

(ii) 

(iii) 

the  quantity  and  quality  of  the  agricultural  products  concerned  which 
may or must be delivered and the timing of such deliveries, 

the duration of the contract, which may include either a definite duration 
or  an  indefinite  duration  with  a  termination  clause.  In  the  case  of 
contracts with a minimum duration longer than six months, the contract 
shall also include a revision clause that may be triggered, in particular, by 
the  farmer,  a  producer  organisation  or  an  association  of  producer 
organisations; 

(iv)  details regarding payment periods and procedures, 

(v) 

arrangements for collecting or delivering the agricultural products,  

(vi) 

rules applicable in the event of force majeure. 

5. 

By way of derogation from paragraphs 1 and 2, a written contract or a written offer 
for a contract shall not be required in the following cases: 

(a)  The agricultural products concerned are delivered by a member of a producer 
organisation  or  cooperative  to  the  producer  organisation  or  cooperative  of 
which  they  are  a  member  provided  that  the  statutes  of  that  producer 
organisation  or  cooperative  or  the  rules  and  decisions  provided  for  in,  or 
derived  from,  these  statutes  contain  provisions  having  similar  effects  to  the 
provisions set out in points (a), (b) and (c) of paragraph 4; 

(b) 

(c) 

(d) 

the first  purchaser of the agricultural  products  concerned is  a micro or small-
sized enterprise within the meaning of Recommendation 2003/361/EC; 

the  delivery  and  payment  of  the  agricultural  products  concerned  take  place 
simultaneously; 

the  delivery  is  made  for  free  or  in  the  context  of  the  disposal  of  -products 
which are no longer fit for sale. 

6. 

Member  States  may  decide  that  a  written  contract  or  a  written  offer  shall  not  be 
required in one or more of the following cases:  

(a) 

the delivery concerns products of a value equal to or below a certain threshold 
of  value  to  be  determined  by  the  Member  State,  and  which  shall  not  exceed 
EUR 10 000;  

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7. 

8. 

9. 

10. 

11. 

(b) 

(c) 

the delivery concerns agricultural products that are subject to seasonal supply 
or demand fluctuations or perishability; 

the  delivery  concerns  agricultural  products  that  are  subject  to  traditional  or 
customary selling practices. 

Where  pursuant  to  paragraph  5,  points  (b),  (c)  and  (d),  or  paragraph  6,  a  written 
contract  or  a  written  offer  for  a  contract  is  not  required,  a  farmer,  a  producer 
organisation  or  an  association  of  producer  organisations,  may  require  that  any 
delivery of agricultural products to a processor, distributor or retailer be the subject 
of a written contract between the parties or of a written offer for a contract. Such a 
contract  or  offer  for  a  contract  shall  fulfil  the  conditions  laid  down  in  paragraph  4 
and paragraph 8, first subparagraph. 

All elements of contracts for the delivery of agricultural products concluded between 
farmers,  producer  organisations  or  association  of  producer  organisations,  and 
processors,  distributors,  or  retailers  including  those  elements  and  their  components 
referred to in paragraph 4, point (c), shall be freely negotiated between the parties.  

Member States may establish one or more of the following: 

(a) 

in respect of the written  contracts  referred to in paragraph 1 of this Article, a 
Member State may establish: 

(i) 

an obligation for the parties to agree on a relationship between the given 
quantity of agricultural products delivered and the price payable for that 
delivery; 

(ii) 

a  minimum  duration,  which  shall  be  at  least  six  months  and  shall  not 
impair the proper functioning of the internal market; 

(b) 

in  respect  of  the  written  offers  referred  to  in  point  (b)  of  paragraph  2,  an 
obligation  that  the  written  offer  shall  include  a  minimum  duration  for  the 
contract, set by national  law for this purpose. Such a minimum duration shall 
be at least six months and shall not impair the proper functioning of the internal 
market. 

Farmers, producer organisations or associations of producer organisations may refuse 
in writing the minimum duration imposed pursuant to the second sub-paragraph. 

Member  States  may  require  the  purchaser  of  agricultural  products  to  register  the 
written  contracts  referred  to  in  paragraph  1  prior  to  the  delivery  of  the  agricultural 
products  concerned  by  the  farmer,  a  producer  organisation,  or  an  association  of 
producer organisations to a processor, distributor or retailer in their territory.   

Member States that make use of the options referred to in paragraphs 2, 6,  8 and 9 
shall notify the Commission of how they are applied. 

The Commission may adopt implementing acts laying down measures necessary for 
the uniform application of paragraphs 4 and 5 and measures relating to notifications 
to  be  made  by  the  Member  States  in  accordance  with  paragraph  10.  Those 
implementing  acts  shall  be  adopted  in  accordance  with  the  examination  procedure 
referred to in Article 229(2).’; 

(7) 

Article 210a is amended as follows: 

(a) 

in paragraph 3, the following points are added: 

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‘(d) supporting the economic viability of small farms predominantly relying on 
family  labour  with  a  standard  output  as  defined  in  Article  2,  point  (8),  of 
Council Regulation (EC) No 1217/200911 that shall not exceed 100 000 EUR;  

(e) attracting and supporting young producers of agricultural products; or  

(f)  improving  working  and  safety  conditions  in  agricultural  or  processing 
activities.’; 

(b)  paragraph 6 is replaced by the following: 

‘From  8  December  2023,  producers  as  referred  to  in  paragraph  1  may  request  an 
opinion from the Commission concerning the compatibility of agreements, decisions 
and  concerted  practices  as  referred  to  in  paragraph  1  with  regard  to  the 
implementation of sustainability standards aiming to contribute to one or more of the 
objectives laid down in paragraph 3, points (a), (b) and (c), with this Article.  

From [entry into force +2 years], producers as referred to in paragraph 1 may request 
an  opinion  from  the  Commission  concerning  the  compatibility  of  agreements, 
decisions  and  concerted  practices  as  referred  to  in  paragraph  1  with  regard  to  the 
implementation of sustainability standards aiming to contribute to one or more of the 
objectives laid down in paragraph 3, points (d), (e) and (f), with this Article.  

The Commission shall send the applicant its opinion within four months of receipt of 
a complete request. 

If  the  Commission  finds  at  any  time  after  issuing  an  opinion  that  the  conditions 
referred to in paragraphs 1, 3 and 7 of this Article are no longer met, it shall declare 
that  Article  101(1)  TFEU  shall  apply  in  the  future  to  the  agreement,  decision  or 
concerted practice in question and inform the producers accordingly. 

The Commission may change the content of an opinion at its own initiative or at the 
request  of  a  Member  State,  in  particular  if  the  applicant  has  provided  inaccurate 
information or misused the opinion.’; 

(8) 

in Article 222, paragraph 1 is replaced by the following:  

‘1.  During  periods  of  severe  imbalance  in  markets,  the  Commission  may  adopt 
implementing  acts  to  the  effect  that  Article  101(1)  TFEU  is  not  to  apply  to 
agreements  and  decisions  of  farmers,  farmers'  associations,  or  associations  of  such 
associations,  or  recognised  producer  organisations,  associations  of  recognised 
producer organisations and recognised interbranch organisations in any of the sectors 
referred  to  in  Article  1(2)  of  this  Regulation,  provided  that  such  agreements  and 
decisions do not undermine the proper functioning of the internal market, strictly aim 
to  stabilise  the  sector  concerned  and  fall  under  one  or  more  of  the  following 
categories:  

11 

Council Regulation (EC) No 1217/2009 of 30 November 2009 setting up the Farm Sustainability Data 
Network (OJ L 328 15.12.2009, p. 27, ELI: http://data.europa.eu/eli/reg/2009/1217/oj). 

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(a)  market withdrawal or free distribution of their products; 

(b) 

transformation and processing; 

(c) 

storage by private operators; 

(d) 

joint promotion measures; 

(e) 

(f) 

agreements on quality requirements; 

joint  purchasing  of  inputs  necessary  to  combat  the  spread  of  pests  and 
diseases  in  animals  and  plants  in  the  Union  or  of  inputs  necessary  to 
address the effects of natural disasters in the Union; 

(g) 

temporary planning of production taking into account the specific nature 
of the production cycle;  

Where  the  Commission  adopts  implementing  acts  in  accordance  with  the  first 
subparagraph  of  this  Article,  it  may  decide  to  make  Union  support  from  the 
agricultural reserve referred to in Article 16 of Regulation (EU) 2021/2116 available 
to  the  Member  States  concerned.  Such  financial  support  shall  provide  the  means 
necessary for the implementation of these agreements and decisions by the operators 
concerned.  

The  Commission  shall  specify  in  implementing  acts  the  scope  of  the  derogation  of 
the first subparagraph, subject to paragraph 3 of this Article, the period for which the 
derogation  applies,  and,  where  applicable,  the  amount  of  the  agricultural  reserve 
allocated to the Member State concerned under the second subparagraph. 

Those  implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 229(2).’; 

(9) 

Annex X is amended as follows: 

(a) 

in Point I, point 1 is replaced by the following: 

‘1.  Delivery  contracts  shall  be  made  in  advance  of  the  delivery,  in  writing  for  a 
specified quantity of beet.’; 

(b) 

in Point I, point 2 is replaced by the following: 

‘2. The duration of the delivery contracts may be pluriannual. In the case of contracts 
with  a  minimum  duration  longer  than  six  months,  the  contract  shall  include  a 
revision  clause  that  may  be  triggered  by  the  farmer,  a  producer  organisation  or  an 
association of producer organisations.’; 

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(c) 

in Point II, point 2, the following paragraph is added: 

‘The  price  shall  be  calculated  by  combining  various  factors  set  out  in  the  contract, 
which  shall  include  objective  indicators,  indices  or  methods  of  calculation  of  the 
final price, that are easily accessible and comprehensible and that reflect changes in 
market  conditions  and  production  costs,  the  quantities  delivered  and  the  quality  or 
composition  of  sugar  beet  delivered.  To  that  effect,  Member  States  may  determine 
indicators,  in  accordance  with  objective  criteria  based  on  studies  carried  out  on 
production and the food supply chain. The parties to the contracts are free to refer to 
these indicators or any other indicators which they deem relevant.’; 

(d) 

in Point III, the following paragraph is added: 

‘Delivery contracts shall contain rules applicable in the event of force majeure.’;  

(e) 

the following Point IXa is inserted: 

‘POINT IXa 

‘Member  States  may  require  the  sugar  undertaking  to  register  the  written  delivery 
contracts prior to the delivery of the sugar beet.’.   

Article 2 
Amendments to Regulation (EU) 2021/2115 

Regulation (EU) 2021/2115 is amended as follows: 

(1) 

Article 52 is amended as follows: 

(a) 

in paragraph 3, the following point (i) is added: 

‘(i)    the  producer  organisation  or  association  of  producer  organisations  implements 
an operational programme in a Member State in which the degree of organisation of 
producers  in  the  fruit  and  vegetables  sector  has  been  less  than  10  %  for  three 
consecutive years preceding the implementation of the operational programme. The 
degree  of  organisation  shall  be  calculated  as  the  value  of  fruit  and  vegetable 
production  that  was  obtained  in  the  Member  State  concerned  and  marketed  by 
producer  organisations  or  associations  of  producer  organisations  recognised  under 
Regulation (EU) No 1308/2013, divided by the total value of the fruit and vegetable 
production that was obtained in that Member State.’; 

(b) 

the following paragraph 5a is inserted: 

 ‘5a.  The  50  %  limit  provided  for  in  paragraph  1  shall  be  increased  to  60  %  for 
expenditure linked to the objectives referred to in Article 46, points (a), (b) or (c), if 
the following conditions are fulfilled: 

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(a) 

(b) 

the expenditure is related to investments in tangible and intangible assets 
as referred to in Article 47(1), point (a), made by young farmers or new 
farmers,  who  join  a  producer  organisation  recognised  under  Regulation 
(EU) No 1308/2013 for the first time; 

the investments referred to in point (a) are made at the premises of these 
young  farmers  or  new  farmers  as  part  of  their  first  operational 
programme.’; 

(c) 

the following paragraph 7 is added: 

‘7. 
 The 50 % limit provided for in paragraph 1 shall be increased to 70 % of the 
actual expenditure incurred in a given year for operational programmes implemented 
by  producer  organisations  or  associations  of  producer  organisations  and  affected  in 
this  given  year  by  adverse  climatic  events,  natural  disasters,  plant  diseases  or  pest 
infestations to be identified by the Member States.’; 

(2) 

in Article 68, the following paragraph 2a is inserted: 

‘2a.  Article  52(3),  points  (a)  to  (d)  and  (f)  to  (h),  and  Article  52(5a)  of  this 
Regulation shall apply mutatis mutandis.’; 

(3) 

in Article 88, paragraph 7 is replaced by the following: 

‘7.  As of 2025, Member States may review their decisions referred to in paragraph 
6  as  part  of  a  request  for  amendment  of  their  CAP  Strategic  Plans  made  in 
accordance  with  Article  119  and  decide  to  use  up  to  6  %  of  their  allocations  for 
direct payments set out in Annex V, where relevant after deduction of the allocations 
for cotton set in Annex VIII, for types of intervention in other sectors referred to in 
Title III, Chapter III, Section 7. 

The amount corresponding to the percentage of Member States’ allocations for direct 
payments referred to in the first subparagraph of this paragraph and used for types of 
intervention  in  other  sectors  for  a  certain  financial  year  shall  be  considered  to  be 
Member  States’  allocations  per  financial  year  for  types  of  intervention  in  other 
sectors.’. 

Article 3 
Amendment of Regulation (EU) 2021/2116 

In Article 16(1), second subparagraph, of Regulation (EU) 2021/2116, point (b) is replaced by 
the following: 

‘(b) exceptional measures under Articles 219, 220, 221 and 222 of Regulation (EU) 
No 1308/2013.’. 

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Article 4 
Entry into force and application 

This Regulation shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

Article 1, point (1), shall apply from [+2 years]. 

Article 1, points (2) and (6), shall apply from [+18 months]. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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