Our Finances
Red Tractor is a not-for-profit company with funding from two principal sources:
- Food businesses, who pay Red Tractor, either because they are making a Red Tractor claim on their products, the use of the Red Tractor logo, or both.
- Farmers and Growers, who pay to be members of the Red Tractor scheme.
How we operate as a not-for-profit
As a not-for-profit, Red Tractor does not have shareholders, nor do we pay dividends or surpluses to our owners. All revenue is invested back into achieving our vision and delivering our purpose.
Vision: To be the pride of British food and farming, valued by consumers, supply chains and governments.
Purpose: Standards for British food that everyone can trust.
Our owners
Red Tractor is owned by its Guarantors who are: the National Farmers Union of England and Wales, National Farmers Union of Scotland, Ulster Farmers Union, The Agriculture & Horticulture Development Board, Dairy UK and the British Retail Consortium. Collectively known as the Ownership Body, each owner provides a ‘limited guarantee’ of £1 to Red Tractor and receives no income from its affiliation to Red Tractor.
The Food & Drink Federation attends Ownership Body meetings as an observer, ensuring representation across the whole supply chain.
Governance
Red Tractor’s finances are overseen by its Audit and Finance Committee, a sub-committee of the Board of Directors. The Committee reviews budgets, updates the risk register and ensures sound financial management.
Another sub-committee – the Remunerations Committee – is responsible for determining Board Directors’ and the CEO’s renumeration.
Reserves
Funding to cover our financial commitments is held in reserves and ensure resilience to fluctuation in our income and expenditure. This is consistent with best practice. The Reserves Policy is agreed by the Audit and Finance Committee and is approved by the Board.
Early funding
Following Red Tractor’s creation in 2000, seed funding was provided by Red Tractor’s Owners – however Red Tractor soon became self-sufficient. Until 2021, some ongoing funding was provided by the MLC (subsequently AHDB), for specific services such as database cleaning and mycotoxin auditing, and to grow consumer awareness of the logo.
How we’re funded today
Today, Red Tractor is funded from two principal sources:
Licensed food businesses
More than half of our income is generated through licensing fees paid by food businesses who make a ‘Red Tractor assured’ claim or use the Red Tractor logo on consumer-facing packaging. These fees are charged relative to the sales value on the produce being licensed, with minimum and maximum caps which are regularly reviewed.
Assured farmers and growers
Around 40,000 farmers and growers from across the UK are part of the Red Tractor scheme. We receive a royalty fee from each certified producer, which is invested back into the running of the assurance programme, helping farmers and growers to meet their customers’ sourcing requirements. Typically, farmers and growers pay between £50-£100, with some of the largest fresh produce growers paying up to £700.
Farmers and growers also pay a fee to their certification body, which operates independently and impartially of Red Tractor. This fee covers the costs of assessments and is not passed to Red Tractor. To reduce administration and costs, both fees are administered by the Certification Body. The two fees are clearly separated on invoices.
Other sources of income
Red Tractor also receives a modest income from other activities including: a small royalty charged to certification bodies; contributions paid by assurance schemes operating in the devolved regions of the UK in return for recognition of their schemes; and a fee paid by some supply chain companies to use our Trackers & Services platform. We also receive interest from cash held in reserves.
Overall, in the financial year 2025-26, income from licensing (including Dairy) was £5.3m and income direct from farmers was £2.5m. Other activities and bank interest increased total income to £8.4m.
Income 2025-26
How we spend our funds
Operating costs
Red Tractor’s income covers the cost of its total operations, including its 37 staff, the 12-desk office, director remuneration and the day-to-day management of the scheme.
Market development
Consumer marketing and outreach to supply chain businesses helps to secure a market, generate demand for Red Tractor assured produce and protect the integrity of the Red Tractor logo. This includes a Traceability Challenge programme which provides confidence that the Red Tractor claim is only used on produce assured throughout the supply chain.
Maintaining standards and compliance
The ongoing development and maintenance of Red Tractor’s standards ensures that they continue to reflect the latest science, best practice and evolving legislative requirements. This includes investment in technology and data systems, platforms and processes that are required to maintain standards consistently across the supply chain, improving our efficiency of assurance and upholding the credibility of assured producers.
Education and engagement
Red Tractor’s communications team ensures information about the Red Tractor scheme is clear, accessible and reaches the right audiences. This includes publishing resources for members and licensees, running events and publishing Red Tractor’s website, newsletters, consumer-facing communications and media relations.
Expenditure 2025-26
Read more about our governance
