Red Tractor is the subject of much discussion at the moment. As the Chair, I can assure you that we are listening to you and engaging with all our stakeholders to explain, learn, discuss, and find ways to move forward.

We understand the pressures facing farmers in all sectors. We want to offer a positive contribution and the views of our members matter to us very much. In the past couple of weeks, we have been having numerous daily conversations about the range of opinions expressed and continue to do so.

Greener Farms Commitment

The Greener Farms Commitment (GFC) is being designed around the first core principle of assurance – to find a common approach which limits the number of demands on farmers. To achieve something which offers this, it was necessary to work with the British Retail Consortium (BRC) and its members to ensure their commitment. Throughout that process we have sought to represent and protect the interests of Red Tractor farmers, which is why our preparatory work last year included trials with twenty-five farms, for example.

In turn, those customer stakeholders have made it very clear how urgent this is. There is a risk they will use alternative, possibly global standards, which will not differentiate British produce from overseas. In some sectors we can already see sustainability marks being required which are adding cost and complexity for farmers.

Involving farmers in the continued development of the GFC is absolutely essential. We had to have an approved framework for a common industry approach before that work could accelerate in a meaningful way. Following the Red Tractor Board’s agreement on that common approach last month, we announced a six month timetable to do more work with farmers and growers, to refine the content of the GFC and consider how it will be practically applied in different sectors.

Last week saw our Technical Advisory Committees discuss the GFC across every sector as part of that work. The process is already giving us a huge amount of valuable feedback. Strong views are being shared on the approach and those conversations continue.

To call out three examples: Whilst the GFC aligns with the Sustainable Farming Incentive (SFI) in England wherever possible, we need to do more work to ensure this happens as the devolved schemes are developed. We are also focused on important questions about how to incorporate indoor farming operations, and short term rented land.

We will continue to listen carefully to farmers’ feedback and work hard to better understand their point of view. We need to explore every option for achieving as much flexibility as possible for farmers, without diluting the common industry approach. The last several weeks have clearly given us a great deal to consider. The new Development Advisory Panel (DAP), which is being created at the moment, will have a vital role to take full account of the first-hand experience of farmers and we will look for other ways too.

We will continue to answer questions as quickly and openly as we can. For example, quite rightly farmers are concerned about protecting their data. Red Tractor has a clear policy on data sharing – the farmer controls their own data and, as with current systems, nothing is shared without the farmers express permission, which they can withdraw at any time.

I am also aware that much of the concern is about how farmers are recompensed for the overall cost of participating in the GFC. Clearly this is a fundamental question. Will it be paid for by the market, by government incentives or a mix of both? We expect the GFC to align directly with government schemes to enable that funding, wherever possible. Red Tractor has also done cost benefit analyses to understand in detail what costs need to be considered. Ultimately though, the final price paid by the market has to be the result of a commercial negotiation between farmers or growers and their customers.

The GFC is very different from Red Tractor’s core standards – it’s a commitment, a journey for farmers to become more environmentally focussed. It is not pass or fail standards. Farmers upload their plans and actions, as opposed to being physically audited, and the GFC will recognise other programmes and national schemes to prevent duplication. We clearly need to do a better job of explaining what’s intended and how this is different. We will work hard to achieve this.

Red Tractor

This subject has revealed strong feelings across the membership about Red Tractor’s governance which we need to listen to and understand. I want to share my observations as there are some misunderstandings emerging about our organisation and its role.

 Ownership

Twenty years ago, British farming was in crisis. A series of food scandals – BSE, salmonella, and foot and mouth – had devastated the industry. People had lost trust in British produce, threatening the very livelihood of our farming industry.  The industry came together to restore confidence in British farming and created Red Tractor (or Assured Food Standards (AFS)) as a new business and standard.

The NFU and the farming unions of Ulster and Scotland are joint owners alongside AHDB, Dairy UK and the British Retail Consortium. The owners are obliged to meet once annually at the AGM and their remit is limited to appointing the Chair, passing resolutions to appoint Directors and, where necessary, amending the Articles. Any request for a review of Red Tractor should be considered by the Ownership Body, who would then instruct Red Tractor’s Main (AFS) Board as appropriate. The team at Red Tractor would cooperate fully to ensure openness and pace.

The owners have no transactional or funding relationship with Red Tractor and they delegate the running of the organisation to the Red Tractor (AFS) Board. The Red Tractor (AFS) Board, which is responsible for approving the business plan, includes many of the major industry stakeholder bodies and external advisors. The composition, together with those of the Sector Board and Technical Advisory Committees, is available on the Red Tractor website.

Funding

None of the ownership bodies fund Red Tractor. We operate as a not-for-profit organisation with around 30 employees. We raise our income through farmer membership fees, which account for around 40% of total income, and a licence fee charged to processors and packers, for the use of the scheme and the logo. The license fees fund the marketing of the logo and scheme to consumers. The audits are conducted by accredited independent businesses.

 Purpose

Our purpose is simple: to provide maximum market access for British farmers at minimum cost by developing common standards that meet the majority of the market’s needs. And we provide competitive advantage by differentiating produce through the consumer-facing logo. Red Tractor is recognised and trusted by consumers more than any other assurance mark in the UK.

 Standards

To achieve its purpose Red Tractor develops standards that meet the needs of consumers, and the organisations that supply them, and provide reassurance that food is safe and farmed with care. We continuously balance the needs of the market, with what is viable for farmers and the supply chain. We consider many other influences on the supply chain, including overseas competitors, the work of Government and Devolved Administrations, and other groups that impact shopping criteria and buying decisions. The demands of these stakeholders are evolving, particularly in relation to sustainability.

Red Tractor has become one of the world’s most comprehensive food chain assurance schemes and our logo now appears on more than £15 billion of food and drink every year. The organisation assures every stage of the food chain from farm, transport, markets, processors and packers, right through to retailers and restaurants.

We will continue to listen to your feedback and find ways to work together with our members to improve our partnership.

Christine Tacon, Chair, Red Tractor

Red Tractor’s Main Board has set a firm timetable to make its Greener Farms Commitment (GFC) available from 1 April 2024. Red Tractor has been working on this environment module since 2020, recognising that the pressure on Retail, Out Of Home (OOH) operators and brands to source their primary produce more sustainably, could lead to a multitude of audit demands on the supply chain and particularly farmers.

Meeting market demand

Concerned about these increasing audit demands, Red Tractor has been developing an additional, voluntary module designed to meet the needs of the market with a single consistent industry approach. This offers farmers, processors, and packers one set of common criteria. The outcome is the Greener Farms Commitment which has the full support of businesses represented by the British Retail Consortium.

Andrew Opie from the British Retail Consortium (BRC) said: “Retailers are under increasing pressure to disclose how their sourcing policies promote positive management of soil, water and biodiversity both to consumers and investors. The new Red Tractor Greener Farms Commitment optional module offers the opportunity for farmers to deliver that assurance in a consistent, efficient scheme. Farmers in other countries are already embarking on similar schemes but we feel the Red Tractor scheme puts British farmers in the strongest position to demonstrate their credentials alongside quality and provenance to British consumers.”

Throughout the development work, Red Tractor has been determined to secure this unprecedented level of support. This has involved interviewing every major retailer, OOH operator and many leading brands; ensuring alignment with DEFRA’s Sustainable Farming Incentive (SFI); meeting the aims of critical organisations such as WWF and WRAP; whilst also conducting cost versus benefit research through the Andersons Centre; and trials with 25 farms.

Committed to farming with environmental focus

Red Tractor’s GFC is a voluntary addition which will operate very differently from its typical core standards. It enables farmers to make commitments and track their own progress across five key areas for environmentally focused farming: Carbon foot printing; Soil management; Nutrient management; Waste management; and Biodiversity. It will recognise other schemes or programmes such as the SFI and other devolved government schemes, reducing the cost and complexity, and making it as easy as possible for farmers to complete.

The GFC will have its own logo, enabling farmers and British agriculture to demonstrate their environmental credentials to consumers, whilst also differentiating the high quality of British products compared to international competition.

A different approach to answer changing requirements

From 1 April 2024, the scheme will be open to the supply chain across all sectors where members are already certified against Red Tractor’s core standards. However, the GFC is designed to be a very different experience for farmers who choose to take part. The GFC will be administered by Red Tractor directly, rather than by appointed Certification Bodies. Unlike core standards, the GFC does not require the same thing at every farm, but instead requires farmers to register a plan for progress that is unique to their circumstances, and then measure their success and learning against that.

Red Tractor is setting up a dedicated Development Advisory Panel (DAP) to oversee the detail, operation, and evolution of the GFC. Their first task will be to give feedback on the technical content of the module before it is finalised and published. This will help to ensure its practical application by sector. The DAP will include representation from across the supply chain including experts from Red Tractor’s Sector Boards and Technical Advisory Committees, plus third-party expertise where required.

Red Tractor CEO, Jim Moseley said: “We’re providing the supply chain with a definitive timetable for making the Greener Farms Commitment available on 1 April next year. With support from so many major retailers, the sector has a unique opportunity to make this common industry approach work.

“The initiative takes a new approach which will offer benefits to everyone. It gives Red Tractor farmers a new way of differentiating their product and a consistent framework to talk about their environmental credentials. The GFC is designed to protect farmers from future audit demands, costs and complexity. While some farmers may not be facing these questions from their customers yet, there is clear evidence from some agricultural sectors that alternative schemes have added cost, duplication and complexity for Red Tractor farmers.

“For processors and packers, the common industry approach should reduce the need for a multitude of product lines to be segregated, which could be substantial if customers start to develop their own bespoke programmes. For retailers, out of home operators and brands, the GFC provides the evidence they need to show that their sourcing strategies are from farmers committed to looking after the environment.”

Gavin Hodgson, Director of Agriculture at Sainsbury’s said: “Sainsbury’s is very supportive of initiatives to drive forward work in the sustainability space and sees Red Tractor Greener Farms Commitment as a positive step to giving farmers a framework to develop and make real progress. Having widely available, streamlined approach for the industry is important to simplify asks for farmers and ensure the industry as a whole is working towards these important common goals.”

Steve McLean, Head of Agriculture & Fisheries at M&S Food said: “Red Tractor’s ‘Greener Farms Commitment’ offers farmers a single consistent route to demonstrate the positive steps they are taking on the environment including carbon footprinting and biodiversity, whilst avoiding duplication of audits and administration. In our view it will allow UK farmers demonstrate the important part they play and offers UK agriculture a clear and positive path to reducing its impact on our environment and importantly in demonstrating the great work that UK farmers do day-in, day-out to create wildlife habitats and mange biodiversity on farm. If the scheme is successfully launched, and taken up by farmers, it will allow us support the industry initiative and not replicate through our own initiatives.”

Claire Lorains, Group Quality, Technical and Sustainability Director at Tesco said:  “To deliver on our climate and nature commitments it’s vital we partner with suppliers and farmers to effectively measure, and improve the impact food production has on soil, water and biodiversity. We believe the Red Tractor Greener Farms Commitment can help us deliver on these commitments by setting a strong baseline environmental standard that supports the right frameworks to measure and manage. Our customers are increasingly seeking out assurances that the farms that supply us are doing the right thing for the environment, alongside our efforts to demonstrate the quality and provenance of British sourced products. We are ready to work in partnership with our farmers and suppliers to support a phased implementation of the Red Tractor Greener Farms module.”

Sophie Throup, Technical and Sustainability Director, Morrisons said: “The Greener Farms Commitment is an important step in helping us as a retailer evidence the steps farmers are already taking to look after the environment. We know that customers are increasingly focused on how the food they eat impacts the planet; we also know from talking and working with farmers in our own supply chain that much is being done already. This modular option gives us a way of being able to talk to customers about the steps farmers are taking, whether this is starting their journey with a carbon footprint, to delivering improvements to soil health and structure, and considering biodiversity and waste. We welcome this new module and look forward to continuing to work with farmers and the Red Tractor team to ensure its success.”

Joseph Keating, Senior Agriculture Manager, Co-op said: “Co-op is very proud of our 100% British sourcing across all protein and our support of British Agriculture, which holds a world leadership position. As an industry it is vital we continue to find ways of working together to address the challenges of climate change and sustainability. Co-op is supportive of the voluntary Red Tractor Greener Farms Commitment as it provides a single industry approach which aims to simplify the landscape for farmers. We know carbon footprinting is essential in demonstrating how, as in industry, we are reducing our impact and this commitment provides the opportunity to show the wider benefits farmers can contribute in managing biodiversity, water and soil.”