Farmer discovers overpayment in Red Tractor crops scheme

A Nottinghamshire arable farmer has issued a warning to other farmers after discovering he had been overpaying for his Red Tractor Combinable Crops and Sugar Beet Assurance Scheme premium.

Richard Burton, who farms 125ha of arable land in Newark and is a long-time member of the scheme, uncovered the error while renewing his annual membership.

Mr Burton realised he had been overpaying after removing 29.5ha of land from combinable cropping and enrolling it in Defra’s Sustainable Farming Incentive (SFI).

See also: Red Tractor develops new entry-level grain standard

As a result of reducing his cropping acreage, he dropped from Red Tractor’s combinable crops scheme B, £276 /year to A, £233/year (which is below 80ha of combinable crops).

Red Tractor NSF (his certification body) came to Mr Burton and asked him why he had not paid the full amount for his premium. He said they withheld the 25 stickers that are used for his grain passport, until he paid the full amount.

But Mr Burton explained to Red Tractor NSF that he had decided to pay the adjusted lower amount, £51.60 less when 20% VAT is added, taking in his reduced cropping acreage and enrolment in the SFI.

Mr Burton also raised this issue with his local NFU branch in Newark and he finally received a phone call from NFU Stoneleigh HQ a week later confirming that he was right.

Red Tractor has now sent Mr Burton his stickers.

Mr Burton said many arable farmers who are growing crops, such as maize for biodigesters or have entered land into the SFI or other stewardship schemes, may also have been paying too much for their Red Tractor assurance scheme premiums.

He has called for better transparency in how premiums are calculated and believes land agents should be more on the ball with ensuring farmers pay the correct amount.

“As a small arable farmer, it hasn’t made a significant financial impact, but for those who have taken a lot of land out of cropping for the SFI, and maize for biodigesters, this may be a bigger concern,” Mr Burton said. “It’s not just about the money – it’s about ensuring farmers are paying the right amount.”

Response

Red Tractor told Farmers Weekly that the certification body charges are at a rate determined by the certification body itself (Assured Food Standards), not Red Tractor, adding that royalty rates of membership bands are transparently set out on the Red Tractor website.

An NFU spokesperson said: “We’re unable to comment on individuals’ assurance scheme cases.

“It is a matter for assurance scheme providers, as well as certification bodies, to work with farmers who belong to its schemes to ensure that they are in the correct category and pay the correct fees associated.”

* The royalty fee paid to Red Tractor Assurance covers the cost of running the scheme and promoting farm assured products. Red Tractor Assurance operates on a not-for-profit basis.

** Band Z is a farm of 901+ ha that has more than five additional units. Six additional units will be two Band F royalties, 11 additional units will be three band F royalties.