(1)

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.

(1)

The agricultural sector, in particular farmers, who ensure food security , face a range of challenges. The Covid-19 pandemic , growing instability in world trade, increasingly extreme weather events 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, and face a significant regulatory burden due to overregulation . Many consumers, dealing with an increased cost of living, have also directed their consumption patterns towards less expensive food products. All the above factors have further destabilised the distribution of value added along the food supply chain and has increased the degree of uncertainty in which farmers , notably small and medium-sized farms, operate, fuelling protests and mistrust. It is thus appropriate to adopt measures to tackle those challenges and to restore fairness and the trust of the actors in the food supply chain, as well as protecting farmers’ incomes and increasing young people’s confidence in the farming profession .

(1a)

To strengthen the position of farmers in the agri-food supply chain, it is necessary to strengthen the role of producer organisations and cooperatives as generators of added value, through public policies that contribute to improving the cost-effectiveness, visibility and competitiveness of the products of their members, as well as to improve the bargaining power of those farmers.

(3)

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 Council (5).

(3)

In the interest of increased trust and fairness along the food supply chain, the terms ‘fair’, ‘equitable’ or equivalent terms, should be used only with the prior and informed consent of the farmer 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 Council (5). It is essential therefore to guarantee transparent pricing, and that value is distributed proportionally along the food chain and reflects the efforts made, and risks assumed, by each party, particularly farmers, who represent the most vulnerable link in that chain.

(3a)

To strengthen the Union’s food sovereignty, support farm incomes and ensure sustainable systems, a European preference for Union agricultural products should be promoted, including in public procurement and storage arrangements. This preference should help reduce dependency on imports and should result in production that adds value being ‘reshored’ within the Union.

(4)

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.

(4)

The term ‘short supply chain’ should be used with the prior consent of the farmer and only to designate commercial modalities where a direct connection or a limited number of intermediaries exists between the farmer, cooperatives or producer organisation and consumers that allows to 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 exists between farmers and consumers , including in the form of online sales, or where geographic proximity exists between them, including in cross-border contexts . Geographic proximity should be measured in terms of reduced transport distance or time . 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. It should apply to products produced in, and paced on, the single market. This tool will contribute to increased transparency and economic justice and to the revitalisation of rural areas, without prejudice to the functioning of the single market.

(5)

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 Council (6).

(5)

In light of market conditions, evolving consumer expectations, advances both in marketing standards and in relevant international standards, 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 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 . It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making (5a). In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(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.

(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 or add regulatory burden for farmers, especially small and medium-sized farms .

(8)

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.

(8)

The use of written contracts plays an important 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 and respecting pricing that ensures fair remuneration for farmers. At the same time, the use of written contracts is crucial for the prevention of frequent abusive trading practices such as late payments, unilateral cancellation of orders and the retroactive amendment of terms of contract. Those practices particularly affect small producers, who do not have the legal means to defend themselves . 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. Implementing these measures will therefore create a framework for agricultural producers, providing them with the necessary protection to capitalise upon and plan their production and, hence contributing to the development of the local economy.

(9)

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. Moreover, to enhance collaboration between organic product producers , the 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.

(9)

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. Moreover, organic product producers are able to use the existing possibility for the establishment and recognition of producer organisations to enhance their collaboration . The criteria for the recognition of producer organisations and their statutes should also provide that producer organisations are established at the initiative of farmers or, in the case of fruit and vegetables, of producers, and are controlled in accordance with rules that enable farmer members to scrutinise democratically their organisation and decisions.

(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’.

(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’. In addition, promoting the use of such terms could help educate consumers on the impact of their consumption choices on social fairness and economic sustainability in the agri-food sector.

(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 Council (7), including concentrating supply and placing their members’ products on the market.

(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, in accordance with national law, for some or all of their production provided that these organisations have already lodged an application for recognition with a Member State within a maximum period of five years after submitting the application for recognition . 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 Council (7), 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 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.

(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 , except for fruit and vegetables unless expressly requested by the associations of producer organisations . 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 association does not exceed 33 % of the total national production of any given Member State or 5 % of production in the Union as a whole . 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.

(12a)

To strengthen the position of recognised producer organisations and of recognised associations of producer organisations, they should be given the legal certainty and predictability necessary to carry out their activities in accordance with the objectives laid down in Article 39 TFEU. To that end, Article 152(1a) of Regulation (EU) No 1308/2013 should be amended to specify the activities falling within the scope of the derogation from Article 101(1) TFEU, in accordance with the judgment of the Court of Justice of 14 November 2017 in Case C-671/15.

(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.

(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. In parallel, it is recommended that, besides standardised digital tools, farmers should also have the benefit of easily-completable standard contract formats which are available at national level and which can be sent by email, in order to reduce red tape. Moreover, Member States should provide easily accessible online training courses and instructions for the drafting and registration of contracts.

(13a)

Central purchasing bodies operating at transnational level are exerting increasing pressure on agricultural prices, exploiting regulatory and social disparities between the Member States. Those bodies should be regulated as a matter of urgency to protect agricultural producers from abusive contractual practices, the capture of value added and unfair competition as a result of the Union’s social and environmental legislation.

(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.

(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. Member States should, at the request of an interbranch organisation or an organisation deemed to be largely representative of an agricultural sector, be able to decide whether to exempt certain specific sectors from the requirement for 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.

(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 producers 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. This flexibility should be applied without compromising the protection of farmers, while the exceptions should be clearly defined in order to prevent abusive interpretations and the circumvention of contractual obligations.

(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.

(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. However, Member States should not be prevented from taking stricter measures to combat unfair trading practices within the agricultural and food supply chain, provided that those measures are appropriate and proportionate to their objectives, and are compatible with Directive (EU) 2019/633. Simplification of the contracting process, notably by means of standardised and digitalised templates and formats that can be sent by email, is key in order to ensure effective and fair application of these rules, especially in the case of small producers, while sufficient flexibility should be ensured to properly account for the diversity of the farming sector.

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

(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 . Those mediation mechanisms should remain entirely voluntary for all parties. Member States should ensure that when there is no agreement on the formalisation, interpretation or fulfilment of a contract, the parties are able to request mediation . Member States should inform the Commission about the mediation legal framework or mechanisms in place in their territory, and the Commission may facilitate exchanges of best practices about those legal frameworks or 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.

(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. The final price should cover the full production costs including fair remuneration of producers and total costs for additional services. The EU Agri-Food Chain Observatory (AFCO) might be used to provide information on prices in the agri-food chain, cost structures, as well as of distribution of margins and added value, while adhering to confidentiality and competition rules. Wholesale markets could play an important role in building prices mechanisms. They are accredited structures that can ensure prices transparency and contribute to a more balanced distribution along the value chain.

(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.

(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 and 12 months for sectors that trade in future markets 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. It should be possible for those contracts to be revised in the light of unforeseen circumstances, such as extreme weather events, animal disease outbreaks, geopolitical tensions, or any other reason that prevents the agreed price from covering the farmers’ costs, which would contribute to better protection of farmers against market volatility and their better adaptation to economic realities.

(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.

(21)

To enhance contractual transparency and contribute to fairer trading practices, Member States should be able to require , where justified, 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.

(22)

Certain vertical and horizontal cooperation initiatives concerning agricultural and food products, which aim to apply requirements that could be more stringent , in ethical and social terms, 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 socio-economic and sustainable development of rural areas in 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.

(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, while ensuring feasibility and avoiding negative impact on direct payments. In that regard, the Commission should also make available other Union funding sources, if necessary . Member States should also be able to allocate additional national resources.

(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 Council (8) should be 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.

(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 Council (8) should be 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 , while ensuring feasibility and avoiding negative impact on direct payments .

(26a)

In order to enhance the competitiveness and sustainability of producers, operational fund co-financing should be primarily directed towards investments directly linked to agricultural production, collective actions benefiting all members of the producers organisations and digitalisation. The administrative and bureaucratic burden on producers organisations in the implementation of operational programmes should be significantly reduced, in order to encourage engagement by beneficiaries.

(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.

(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 while ensuring feasibility and avoiding negative impact on direct payments .

(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 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.

(32)

With a view to ensuring that Union resources from the agricultural reserve can be made available to the Member States in a fair and transparent manner in order to support collective actions by private 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 while ensuring feasibility and avoiding negative impact on direct payments .

(-1)

in Article 1(2), the following point is inserted:

(la)

vinegar, Part XIIa;

(-1a)

in Article 7, paragraph 2 is replaced by the following:

(-1b)

in Article 11, the following points are added:

‘(ea)

white sugar;

(eb)

sheep meat falling within CN code 0104 10 30 or 0204 ;

(ec)

pigmeat, fresh, chilled or frozen, falling within CN code 0203 ;

(ed)

chicken, fresh, chilled or frozen, falling within CN code 0207 .’

(-1c)

in Article 15, the following paragraph is added:

(-1d)

Article 75 is amended as follows:

(a)

paragraph 1 is replaced by the following:

(b)

in paragraph 3, point (j) is replaced by the following:

“(j)

the place of farming and origin;”;

(a)

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

(a)

stability , including through contracts between producers and buyers to limit the impact of economic uncertainties, traceability and transparency in the relations of farmers with purchasers along the supply chain;

(aa)

promoting the development of democratically managed collective organisations of farmers;

(ab)

payment of an additional amount to the producer, in particular to fund joint projects;

(b)

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

(b)

a price considered equitable and remunerative by participating farmers for their products and work also on the basis of the indications provided by the EU Agri-Food Supply Chain Observatory (AFCO);

(c)

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

(c)

collective and socio-economic initiatives pursuing one or several of the United Nations Sustainable Development Goals contributing to the development of rural communities .

(a)

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

(a)

a direct connection or a limited number of intermediaries between the farmer , cooperative or producer organisation and the final consumer of the product, or

(b)

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

(b)

a close connection , and geographical proximity , understood as a short distance or short travelling time, including cross-border contexts, between the farmer , cooperative or producer organisation and the final consumer of the product.

a)

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;

a)

the delivery of milk and milk products by producers that are not covered by paragraph 1 shall be covered by a written contract;

b)

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 .

b)

producer organisations, associations of producer organisations or farmers shall make a written offer for a contract for the delivery of milk and milk products to the first purchasers .

(b)

be made in writing, and

(b)

be made in writing, whether on paper or in digital form, and

(i)

the price payable for the delivery, which shall:

(i)

the price payable for the delivery with explicit indication of all payments, including applicable discounts , which 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 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;

—

be calculated by combining various objective, verifiable and non-manipulable 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, inflation, full production costs , including the remuneration of farmers, total costs for additional services , the quantities delivered and the quality or composition of the milk and milk products delivered.

(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 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;

(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 with a minimum duration longer than six months and the contract shall include a revision clause that may be triggered by the farmer, a producer organisation or an association of producer organisations on the basis of unforeseen circumstances, such as extreme weather events, animal disease outbreaks, geopolitical tensions, or any other reason that prevents the agreed price from covering the farmers’ costs ;

(iv)

details regarding payment periods and procedures;

(iv)

details regarding payment periods , procedures and the point in time in which the ownership and risk transfer ;

(a)

the milk or the milk products concerned are delivered by a member of a producer organisation or cooperative to 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;

(a)

the milk or the milk products concerned are delivered by a member of a producer organisation or cooperative to 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 objectives as the provisions set out in paragraph 4;

(b)

the first purchaser of milk or milk products is a micro or small-sized enterprise within the meaning of Recommendation 2003/361/EC (10);

(c)

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

(a)

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 ;

(a)

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 4 000 ;

(aa)

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

(ab)

the delivery and the payment for the milk or milk products take place simultaneously or at the latest within 5 working days;

(2a)

In Article 149(2), point (c) is amended as follows:

(a)

point (i) is replaced by the following:

(i)

the volume of raw milk covered by such negotiations does not exceed 4 % of total Union production,

“(i)

the volume of raw milk covered by such negotiations does not exceed 10 % of total Union production,”

(ii)

the volume of raw milk covered by such negotiations which is produced in any particular Member State does not exceed 33 % of the total national production of that Member State, and

(b)

point (ii) is deleted.

(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);

(a)

are constituted by producers in one or several sectors listed in Article 1(2), and are controlled by farmer members, or, in the case of the fruit and vegetables sector, producers, in accordance with Article 153(2), point (c);

(b)

are formed on the initiative of farmers and carry out at least one of the following activities:

(b)

are formed on the initiative of farmers , or, in the case of the fruit and vegetables sector, producers, and carry out at least one of the following activities:

(ba)

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

(d)

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.

(d)

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 or 5 % of the production of the Union as a whole .

(-a)

in paragraph 1, point (b) is replaced by the following:

(b)

be members of only one producer organisation for any given product of the holding; however Member States may derogate from this condition in duly justified cases where producer members hold two distinct production units located in different geographical areas;

“(b)

be members of only one producer organisation for any given product of the holding; however , Member States may derogate from this condition in duly justified cases where producer members hold two distinct production units located in different geographic areas or where producer members entrust different producer organisations with the marketing of their products, other than the products listed in Parts IX and X of Annex I, intended for different uses, and where these organisations do not therefore compete with each other ;”

(-aa)

in paragraph 1, the following point is added:

“(ca)

refrain from any direct contact with purchasers where those individual steps are likely to compromise the collective objectives pursued by the producer organisation, in particular as regards planning, negotiation or placing on the market. Any practice by a purchaser that aims to, or has the effect of, circumventing a producer organisation by directly approaching one or more of its members, where the purchaser is already engaged in negotiations or in a contract with that producer organisation, shall be prohibited and shall be regarded as an unfair commercial practice.”

(c)

paragraph 3 is replaced by the following:

(a)

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,

(a)

the delivery of agricultural products by producers that are not covered by paragraph 1 shall be covered by a written contract,

(b)

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 .

(b)

producer organisations, associations of producer organisations or farmers shall make a written offer for a contract for the delivery of agricultural products to the first purchasers .

(b)

be made in writing, and

(b)

be made in writing, whether on paper or in digital form, and

(i)

the price payable for the delivery, which shall:

(i)

the price payable for the delivery with explicit indication of all payments, including applicable discounts , which 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 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.

—

be calculated by combining various objective, verifiable and non-manipulable 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 , inflation, full production costs , including the remuneration of farmers, the total costs for additional services , the quantities delivered and the quality or composition of the agricultural products delivered; to that effect, Member States or regional authorities may determine indicators , that shall be published online for use in contract , in accordance with objective criteria based on studies carried out on production and the food supply chain , data provided by the interbranch organisations recognised in accordance with Article 157(1), or data from the EU Agri-Food Chain Observatory . The parties to the contracts shall be free to refer to these indicators or any other indicators which they deem relevant.

(iii)

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;

(iii)

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 and 12 months for sectors that trade in future markets , 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 , on the basis of unforeseen circumstances, such as extreme weather events, animal disease outbreaks, geopolitical tensions, or any other reason that prevents the agreed price from covering the farmers’ costs ;

(iv)

details regarding payment periods and procedures,

(iv)

details regarding payment periods , procedures and the point in time in which the ownership and risk transfer ,

(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;

(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 objectives as the provisions set out in points (a), (b) and (c) of paragraph 4;

(b)

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

(c)

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

(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 ;

(a)

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 4 000 ;

(aa)

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

(ab)

the delivery and payment of the agricultural products concerned take place simultaneously or at the latest within 5 working days;

(6a)

Article 172b shall be replaced by the following:

(6b)

In Article 188, the following paragraph is added:

(6c)

in Article 189, paragraph 1 is replaced by the following:

(a)

raw true hemp falling within CN code 5302 10 00 meeting the conditions laid down in Article 32(6) and in Article 35(3) of Regulation (EU) No 1307/2013

(a)

raw true hemp falling within CN code 5302 10 00 meeting the conditions laid down in Regulation (EU) 2021/2115;

(b)

seeds of varieties of hemp falling within CN code ex 1207 99 20 for sowing accompanied by proof that the tetrahydrocannabinol level of the variety concerned does not exceed that fixed in accordance with Article 32(6) and in Article 35(3) of Regulation (EU) No 1307/2013 ;

(b)

seeds of varieties of hemp falling within CN code ex 1207 99 20 for sowing accompanied by proof that the tetrahydrocannabinol level of the variety concerned does not exceed that fixed in accordance with Regulation (EU) No 2021/2115 ;

(c)

hemp seeds other than for sowing, falling within CN code 1207 99 91 and imported only by importers authorised by the Member State in order to ensure that such seeds are not intended for sowing.

(c)

hemp seeds other than for sowing, falling within CN code 1207 99 91 and imported only by importers authorised by the Member State in order to ensure that such seeds are not intended for sowing;

(ca)

hemp flowering tops accompanied by proof that the tetrahydrocannabinol level of the variety concerned does not exceed the level set in accordance with Regulation (EU) No 2021/2115 and imported only by importers authorised by the Member State.’

(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 1217/2009 (11) that shall not exceed 100 000 EUR;

(d)

supporting the economic viability of small and family farms with a standard output as defined in Article 2, point (8), of Council Regulation (EC) No 1217/2009 (11) that shall not exceed 100 000 EUR;

(fa)

promoting local agricultural production;

(fb)

joint management of waste directly related to agricultural production and a better use of livestock effluents and energy production;

(fc)

guaranteeing a stable and fair income that covers production costs and a strong position throughout the value chain for farmers;

(fd)

applying investments for the use of water resources;

(fe)

contribution to the diversification of activities promoting the rural economy, to the development and attractiveness of rural areas;

(ff)

promoting cultural and gastronomic heritage to foster education on topics relating to balanced diets;

(fg)

preserving traditional production practices food security and food sovereignty;

(7a)

the following article is inserted:

(7b)

in Article 219, the following paragraph is added:

(a)

the support shall be granted on the basis of applications submitted by producers in their Member State of establishment, using the method established by the Member State in question;

(b)

in order to ensure that this system is effectively and properly implemented, the Commission shall establish, on the basis of data provided by AFCO:

(i)

the maximum total volume or quantity of deliveries to be reduced at Union level under the reduction scheme;

(ii)

the duration of the reduction period and, if necessary, its prolongation;

(iii)

the amount of support, based on the volume or quantity of the reduction and the arrangements for its financing;

(iv)

the eligibility criteria applicable to applicants and applications;

(v)

the specific conditions for implementing the system.

(a)

market withdrawal or free distribution of their products;

(a)

market withdrawal or free distribution of their products including to charity bodies ;

(aa)

declassifying surplus organic products for conventional markets;

(g)

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

(g)

temporary planning of production taking into account the specific nature of the production cycle , in particular of perishable products .

(8a)

in Article 222a, paragraph 2 is replaced by the following:

(8b)

The following Article is inserted:

(8c)

In Annex I, the following part is inserted:

(8d)

In Annex II, the following part is inserted:

(8e)

In Annex II, the following part is inserted:

1.

2.

3.

4.

(8f)

In Annex VIII, the following part is added:

1.

2.

3.

—

Steak

—

Escalope

—

Sausage

—

Burger

—

Hamburger

—

Egg yolk

—

Egg white.

4.

The poultry products and cuts defined in Regulation (EU) No 543/2008 laying down detailed rules for the application of Council Regulation (EU) No 1234/2007 as regards the marketing standards for poultrymeat shall be reserved exclusively for the edible parts of animals and products containing poultrymeat.

5.

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.

2.

The duration of the delivery contracts may be pluriannual.

(b)

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.

(b)

the investments referred to in point (a) are made at the premises of these young farmers or new farmers or in the case of the fruit and vegetables sector, producers, who join a producer organisation recognised under Regulation (EU) No 1308/2013 for the first time, as part of their first operational programme and during the 7 years following the date on which young farmers or new farmer joined the producer organisation .

(ca)

the following paragraph is added: