Contractual Relationships in the Combinable Crops Sector

Overview

The UK combinable crops sector, which includes cereals, oilseeds, and pulses, plays a vital role in national food security and contributes significantly to the wider economy. These crops provide essential raw materials not only for human consumption but also for animal feed and renewable energy production. Despite its importance, the sector faces considerable challenges such as extreme weather conditions driven by climate change, volatility in input costs like fertilisers and fuel, and fluctuations in global commodity markets. These pressures can intensify existing imbalances in bargaining power between producers and purchasers, potentially undermining the sector’s stability.

The combinable crops sector operates within a complex and globally interconnected market that offers both opportunities and challenges. While it is often more transparent than some other agricultural sectors, with many buyers and merchants providing clear contracts and valuable market intelligence, challenges remain. Unclear contractual or end-user terms, along with sub-optimal data exchange across the supply chain, can limit producers’ access to timely and accurate information. These issues may create uncertainty for farm businesses and could discourage long-term investment and strategic planning.

This consultation invites stakeholders to share their perspectives on key issues including the nature of current contracts, allocation of risk, transparency of pricing and specification data, and the effectiveness of dispute resolution mechanisms. The insights gained will support the development of government policy and potential legislative initiatives aimed at fostering a fairer, more transparent, and resilient supply chain for all participants in the combinable crops market.

This is a UK wide consultation, undertaken by Defra in colloboration with the Scottish Government, Welsh Government and DAERA. Any further action in response to the findings of this consultation will be developed alongside the Devolved Governments.

Why your views matter

The purpose of this consultation is to gather evidence on how supply arrangements currently operate within the UK combinable crops sector and to explore the nature of relationships between producers, first purchasers, and input suppliers. It also seeks views on whether the functioning of these contractual arrangements can be improved to create a fairer and more resilient supply chain.

Primary producers in the combinable crops sector are typically small to medium-sized farm businesses supplying products such as cereals, oilseeds, and pulses. These producers often sell to a smaller number of larger, consolidated buyers who hold significant market power. Where such imbalances exist, producers can be vulnerable to trading practices which may impact their ability to plan, invest, and grow sustainably.

The UK Government is committed to supporting a productive, profitable, and sustainable farming sector. Building on regulations introduced for the dairy and pig sectors, and consultations held for eggs and fresh produce, this review into combinable crops forms a key part of that commitment. It aims to ensure that relationships throughout the agri-food supply chain are transparent, equitable, and effective.

Under Section 29 of the Agriculture Act 2020, the Secretary of State holds powers to introduce regulations addressing unfair practices and improving transparency in agricultural supply chains. The evidence gathered through this consultation will help determine whether such regulations are needed for the combinable crops and agricultural inputs sectors, and if so, what form they should take.

Responses received by 4 February 2026 will be analysed and taken into account by all UK Governments in considering the measures necessary to improve transparency in the combinable crops sector. Responses will be made available to the relevant teams of policy officials in the Devolved Governments, who may share analysis and conclusions with senior colleagues and Ministers.

A summary of responses to this consultation will be published on the UK Government website at: www.gov.uk/defra. An annex to the consultation summary will list all organisations that responded and what part of the UK they represent but will not include personal names, addresses or other contact details.

Using and sharing your information  
How we use your personal data is set out in the consultation and call for evidence exercise privacy notice which can be found here https://www.gov.uk/government/publications/defras-consultations-and-call-for-evidence-exercises-pri…

Other Information 
This consultation is being conducted in line with the Cabinet Office “Consultation Principles” and be found at: Microsoft Word - Consultation Principles (1).docx (publishing.service.gov.uk)’

You can also view a Welsh language version of this consultation.