A fair deal for farmers: are we any closer?

This week, Sustain submitted evidence to an ongoing EFRA select committee inquiry into supply chain fairness. With yet more farmer protests at the weekend, Georgina Edwards takes stock of progress towards getting farmers a fairer deal for the food they produce.

Scarecrow protest outside Parliament. Credit: Riverford Organic FarmersScarecrow protest outside Parliament. Credit: Riverford Organic Farmers

Blogs Sustainable Farming Campaign

Published: Friday 24 January 2025

Why are farmers struggling?

Farmers are facing significant challenges, with narrow profit margins exacerbated by rising operating costs, the impact of geopolitical shocks, and unpredictable harvests due to extreme weather. DEFRA Minister Steve Reed has acknowledged that changes to inheritance tax, including the abolition of agricultural property exemptions, have further strained farmers. Farmers feel overlooked by the government, especially as agri-environment subsidies are delayed, and public funding for agriculture has declined in real terms since the Autumn budget

In addition to these financial pressures, farmers are grappling with an unfair supply chain.

For every pound spent in the supermarket, farmers often receive less than 1p for the food they produce.

Profits are siphoned off by monopolistic suppliers and retailers. Despite managing 70% of UK land, farmers struggle to balance food production, nature conservation, and climate action when their efforts aren't fairly rewarded in the marketplace.

Are big retailers to blame?

Research by Riverford reveals that 61% of farmers believe they will have to abandon their farms in the next 18 months. Just 24% think that supermarket claims to support British farmers are credible.

Public trust in supermarkets is also dwindling. A survey found that 67% of shoppers were frustrated to learn that the word ‘farm’ can be used by supermarkets, even when the food doesn’t come from a real farm. Furthermore, 74% of shoppers want more transparency about food origins. The lack of clarity is eroding trust among consumers and suppliers alike.

Can’t farmers complain about unfair dealing?

Farmers can lodge complaints with the Groceries Code Adjudicator (GCA), an independent body tasked with regulating supermarket-supplier relationships. However, many are reluctant to approach the GCA for fear of retaliation, such as losing contracts or being de-listed by retailers. This puts farmers in a tough spot – either accept unfair practices or risk losing their income by speaking out.

What’s the solution?

Sustain, along with the Groceries Code Action Network (GCAN), has written a briefing for policymakers, recommending several actions to address the imbalance of power between farmers, processors, and supermarkets:

  1. Stronger regulation to deter unfair practices and promote fairness in the supply chain.
  2. Greater transparency through better labeling and mandatory reporting.

The food system is complex, requiring multifaceted solutions. Sustain’s other campaigns, such as Bridging the Gap and Good Food Enterprise, advocate for alternative 'farmer focussed' routes to market, such as farmers' markets or direct sales to schools, which could provide farmers with a better return.

Are politicians listening?

Riverford’s campaign against “farmwashing” has gained traction, drawing attention to the lack of transparency that obscures unfairness in the supply chain. By November 2024, over 11,000 people had written to their MPs, prompting over 500 MPs to receive the GCAN briefing. Several politicians have referenced the campaign’s findings in parliament to highlight the huge challenge farmers face.

The EFRA Committee has continued its inquiry into supply chain fairness, with Chair Alistair Carmichael MP calling for an extension of the GCA’s powers. Steve Reed, Secretary of State for Environment, Food and Rural Affairs has announced a “new deal” for farmers, promising reforms to supply chains. There’s growing consensus across party lines that this issue needs to be addressed.

Will we see better regulation to support farmers?

To build a more sustainable food system, agroecological farmers must earn a fair living. However, the Labour government’s focus on economic growth seems to overshadow calls for stronger regulation. Rachel Reeves recently removed the head of the Competition and Market Authority (CMA), criticizing them for hindering growth and not cutting enough red tape.

The CMA, which ensures fair competition in UK markets, oversees mergers that could create monopolies and give corporations an unfair advantage, including in the food retail sector. It also sets the GCA’s remit to monitor fair dealing between retailers and suppliers. 

However, the chancellor’s choice of new chair – former head of Amazon UK – raises concerns. According to the GCA’s own research, Amazon has one of the poorest track records for treating suppliers fairly in compliance with codes of best practice. Rachel Reeves' prioritisation of economic growth, at the expense of better regulation, could risk undermining DEFRA’s promise to strengthen the GCA and make good its promise to farmers.

What’s next?

While challenges remain, significant progress has been made in raising public awareness and fostering political support for farmers. Sustain’s ongoing efforts to push for stronger regulation and better support for farmers are making an impact. The EFRA Committee's inquiry into supply chain fairness will prompt a response from the government, which will be an opportunity to push for tangible change.

Sustain will continue to advocate for policies that enable farmers to earn a fair living, and plans to feed into DEFRA's consultation on its 25-year roadmap, due later this year. The fight for a fairer, more sustainable food system is far from over, and with political momentum growing, this year could be a one-a-generation opportunity for shaping a better future for farmers.


Sustainable Farming Campaign: Sustain encourages integration of sustainable food and farming into local, regional and national government policies.

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