‘Shocking’ cost of Red Tractor’s green module revealed

Red Tractor has spent a “shocking” £295,000 to date on the development of its controversial green module, Farmers Weekly can reveal. 

Red Tractor confirmed the figure was reported to the Assured Food Standards board of directors in September. 

See also: Consultancy appointed to carry out Red Tractor review

A statement from Red Tractor said the number “takes account of three years of preparatory work and research that some of our board directors had requested”.

Ongoing costs of the voluntary module, known as the Greener Farm Commitment (GFC), were estimated to be £325,000 a year, with the assurance body “out of pocket” until 2027, when it expected at least 3,000 farms to have signed up. 

National Sheep Association chief executive Phil Stocker said: “It’s a massive cost. They’ve spent all that money to learn what we told them for free when they started on this road.

“It’s a shocking amount of money to get where they are now, and they’ve had all this kickback. It defies belief.”

GFC review

The GFC was designed to show farmers are delivering improvements in their carbon footprint, biodiversity, nutrient management, soils and waste control.

Red Tractor planned to introduce it to help several supermarkets meet their “WWF basket” commitments to source 50% of produce and grains and 100% of meat from environmental schemes by 2030. 

It was due to come into force from 1 April 2024, after a pause in development owing to the Ukraine war and cost of living crisis, but its introduction has been put on hold pending the outcome of a review into the governance of Red Tractor, demanded by NFU council.

Neil Shand, chief executive of the National Beef Association (NBA), said: “Our industry needs protection from outside challenge on our environmental credentials, but we also need to see we’re getting value for money.

“£295,000 is a higher figure than I would ever have imagined for a scheme we were told 18 months ago had been shelved for the time being.”

During a heated meeting of NFU council, at which the review of Red Tractor governance was demanded, delegates discussed the findings of an Andersons report, commissioned by Red Tractor, into the costs and benefits of the GFC.

The document, which has not been made public, but which Farmers Weekly has seen, showed without taking into account Sustainable Farming Incentive (SFI) payments, estimated cost savings or market premiums, compliance with the GFC would cost farms between £3,480 and £12,360 a year, depending on type (see below).

The report authors said cost savings and market premiums were speculative, but estimated premiums of 3% for finished beef and sheep, 1.5% for milk, 0.5% for finished pigs and no premiums on combinable crops or cull, store and breeding stock prices.

“Overall, there may be a potential [emphasis included] overall financial benefit for farms in applying for the GFC,” the document read.

“However, this is heavily contingent on this leading to cost savings and a market premium being achieved. In the absence of this, the requirements would impose a further cost on farms (although at relatively low levels).”

Asked by Farmers Weekly whether Red Tractor planned to resurrect the GFC – or something akin to it – following completion of the governance review, a spokesperson said:

“There will be no decisions on the implementation or timing of the GFC or on other changes to existing Red Tractor standards until the NFU’s review of governance is complete.

“Inevitably, the market need for agriculture to demonstrate environmental credentials will require changes in future.

“Any continuation of work on an environment module would need to include more detailed dialogue with farmers and supply chains and consider relevant government policy on agriculture for all UK nations.”