Agriculture Act 2020

CHAPTER 3 U.K. Producer organisations

30 Producer and interbranch organisations etc: application for recognition U.K.

(1) An organisation of agricultural producers that meets the conditions in subsection (2) may apply to the Secretary of State to become a recognised producer organisation.

(2) The conditions are—

(a) that the organisation is made up only of agricultural producers (its “members”);

(b) that the organisation was formed on the initiative of one or more of its members;

(c) that the organisation has a specified minimum number of members, or its members have a specified minimum production, or both;

(d) that the constitution of the organisation meets specified requirements;

(e) that the organisation carries out, on behalf of its members, one or more specified activities;

(f) that the organisation does not engage in specified unlawful activities.

(3) An association of recognised producer organisations that meets the conditions in subsection (4) may apply to the Secretary of State to become a recognised association of producer organisations.

(4) The conditions are—

(a) that the association is made up only of recognised producer organisations (its “members”);

(b) that the association was formed on the initiative of one or more of its members.

(5) An organisation of agricultural businesses that meets the conditions in subsection (6) may apply to the Secretary of State to become a recognised interbranch organisation.

(6) The conditions are—

(a) that the organisation is made up only of businesses carrying on—

(i) activities as an agricultural producer, or

(ii) activities linked to any one or more agricultural sectors,

(its “members”);

(b) that the organisation has—

(i) at least one member that is an agricultural producer, and

(ii) at least one member involved in the processing or distribution of agricultural products;

(c) that the organisation was formed on the initiative of one or more of its members;

(d) that the organisation has a specified minimum number of members, or its members who are agricultural producers have a specified minimum production, or both;

(e) that the organisation carries out, on behalf of its members, one or more specified activities;

(f) that the organisation does not engage in specified unlawful activities.

(7) In subsections (2)(f) and (6)(f) “unlawful activities” means activities which involve breaching a prohibition or failing to comply with a duty.

(8) In subsection (6)(a) the reference to activities linked to an agricultural sector are to activities carried on by the business as—

(a) a processor or distributor of agricultural products within that sector, or

(b) a producer, processor or distributor of products made (to any extent) from agricultural products within that sector.

(9) The Secretary of State may by regulations specify additional conditions that an organisation of agricultural producers, an association of recognised producer organisations or an organisation of agricultural businesses must meet in order to be able to make an application under this section.

(10) The Secretary of State must by regulations specify the time period within which an application under subsection (1), (3) or (5) must be determined.

(11) The Secretary of State must notify a decision on whether to grant an application to—

(a) the applicant, and

(b) the Competition and Markets Authority,

and, in the case of a decision to grant an application, must publish the decision online.

(12) The Secretary of State may by regulations make further provision about applications under this section, such as provision about—

(a) the evidence to be supplied with an application;

(b) the factors to be taken into account in deciding an application;

(c) time periods and deadlines;

(d) application fees;

(e) reviews and appeals.

(13) In this section—

• “agricultural producer” means a producer operating in one or more agricultural sectors;

• “agricultural product” means a product produced by a producer operating within any agricultural sector (including, where relevant, a live animal or plant);

• “agricultural sector” means a sector listed in Schedule 1;

• “specified” means specified in regulations made by the Secretary of State.

(14) The Secretary of State may by regulations amend Schedule 1 for the purpose of—

(a) adding, altering or removing an entry in the list of sectors;

(b) giving further detail on the sectors in that list (for example by adding definitions, making provision as to what falls, or does not fall, within a sector or including any other interpretative material).

Commencement Information

I1 S. 30 in force at Royal Assent for specified purposes, see s. 57(1)(b)(c)

31 Recognised organisations: competition exemptions and further provision U.K.

(1) Schedule 2 amends Schedule 3 to the Competition Act 1998 (general exclusions) so as to exclude certain agreements between members of recognised organisations from the Chapter 1 prohibition.

(2) The Secretary of State may by regulations make further provision about recognised organisations.

(3) The type of provision that may be made in the regulations includes—

(a) ongoing requirements with which a recognised organisation must comply;

(b) provision about the monitoring and enforcement of those requirements.

(4) Provision made by virtue of subsection (3) may (among other things) include provision—

(a) about the provision of information;

(b) about the keeping of records;

(c) about the suspension or withdrawal of recognition;

(d) about appeals;

(e) conferring functions (including functions involving the exercise of a discretion) on a person.

(5) The regulations may also include provision about the extent to which, and the circumstances in which, recognised organisations may delegate certain functions, which may include a procedure requiring that an organisation request permission from the Secretary of State.

(6) In this section, “recognised organisation” means—

(a) a recognised producer organisation,

(b) a recognised association of producer organisations, or

(c) a recognised interbranch organisation.

Commencement Information

I2 S. 31 in force at Royal Assent for specified purposes, see s. 57(1)(b)(c)

32 Regulations under sections 30 and 31 U.K.

(1) The power to make regulations under sections 30(9), (10) or (12) and 31 includes power to make provision allowing the Secretary of State to delegate functions, including the function of deciding applications for recognition under section 30.

(2) Regulations under sections 30(9), (10) or (12) and 31 may make additional or different provision, including in the case of section 30(9) an exemption from a condition in section 30, in relation to a specified agricultural sector (“sector-specific provision”) if the Secretary of State is satisfied that—

(a) there is a need for sector-specific provision due to market conditions or other circumstances creating adverse effects on agricultural producers in that sector, and

(b) the sector-specific provision is appropriate to remedy or mitigate the adverse effects.

Except as provided by this section, regulations under those provisions may not make different provision in relation to different agricultural sectors.

(3) Regulations under sections 30 and 31 are subject to negative resolution procedure unless—

(a) section 50(5) applies,

(b) the regulations contain new sector-specific provision, or

(c) the regulations contain provision made under section 30(14).

(4) Regulations under sections 30 and 31 which contain new sector-specific provision or provision made under section 30(14) are subject to affirmative resolution procedure.

(5) Before making regulations which contain such provision the Secretary of State must consult—

(a) persons who are representative of any agricultural sector (or any part of an agricultural sector) to which the regulations will apply, and

(b) persons who may otherwise be affected by the sector-specific provision or by the provision under section 30(14) (as the case may be).

(6) In this section—

• “agricultural sector” means a sector listed in Schedule 1;

• “new sector-specific provision” means sector-specific provision that did not apply by virtue of any retained direct EU legislation immediately before this section comes into force.

Commencement Information

I3 S. 32 in force at Royal Assent for specified purposes and otherwise at 11.1.2021, see s. 57(1)(b)(c)(6)