EU 2026 Regulation: More Power for Farmers Against Large Buyers

Key data

European farmers have historically had a weak position against large retailers, supermarket chains and processing companies. Regulation (EU) 2026/1739, published on 29 July 2026, amends three fundamental pillars of the Common Agricultural Policy to correct that imbalance. It is not a minor regulation: it directly affects agricultural contracts, unfair commercial practices and market access.

If you are a cooperative, a producer organization, an agri-food company that buys from farmers or an advisor in the sector, this regulation affects how you can negotiate, what you can agree collectively and what transparency obligations you must comply with.

What does this regulation establish?

The regulation amends three key CAP rules with specific changes in each one:

The axes of the reform are four:

• Extended collective bargaining: The possibilities for joint action by farmers are expanded without incurring competition law infringements.
• Price transparency: Mechanisms for transparency in price formation throughout the food supply chain are strengthened.
• Producer organizations: Their role is strengthened and the scope of action of cooperatives and interprofessional organizations is expanded.
• Unfair commercial practices: The regulation has direct implications for agricultural contracts and unfair practices between operators in the chain.

Economic and operational impact

For farmers and their organizations, the impact is positive: more tools to negotiate as a block without the risk that the competition authority considers that joint action an anticompetitive practice. This can translate into better selling prices and more balanced contractual conditions.

For agri-food buying companies —processing industry, distribution, supermarket chains—, the impact is the opposite: they will have to assume greater transparency in how they set the prices they pay to farmers and will be more exposed to claims for unfair commercial practices.

For cooperatives and interprofessional organizations, the regulation directly expands their scope of action, which can open new avenues for sectoral negotiation and price agreements that were previously in a legal gray area.

Member States have the most immediate operational obligation: to adapt their CAP strategic plans to incorporate these provisions, which will affect how national agricultural aid is designed and managed.

Who does it affect?

• Individual farmers who sell to large buyers or intermediaries in the food chain.
• Agricultural cooperatives that negotiate sales conditions on behalf of their members.
• Producer organizations recognized under the CAP framework.
• Interprofessional organizations in the agri-food sector.
• Agri-food buying companies: processing industry, distributors, supermarket chains that purchase product directly from farmers or cooperatives.
• National authorities responsible for CAP strategic plans in each Member State.
• Legal advisors and consultants in the agricultural sector who manage contracts and commercial relationships in the food chain.

Practical example

A Spanish fruit and vegetable cooperative that brings together 200 farmers wants to collectively negotiate the selling price of its tomato production with a large distribution chain. Until now, that joint negotiation could be questioned by competition authorities as a price-fixing practice between competitors.

With Regulation (EU) 2026/1739, the cooperative has a stronger regulatory basis to act jointly in that negotiation without risk of competition law infringement. Furthermore, it can demand greater transparency about how the distribution chain forms the final price to the consumer, which strengthens its position at the negotiating table.

For its part, the distribution chain will need to review its purchase contracts with farmers and cooperatives to ensure it does not incur unfair commercial practices under the new regulatory framework.

What should companies do now?

1. Cooperatives and producer organizations: Review current bylaws and collective bargaining mechanisms to identify what new possibilities the regulation opens and whether internal agreements need to be updated.
2. Agri-food buying companies: Audit existing contracts with farmers and cooperatives to detect clauses that may be considered unfair commercial practices under the new framework.
3. Buying companies: Prepare internal processes for transparency in price formation, anticipating possible information requests from farmers or producer organizations.
4. Authorities and CAP managers in Spain: Begin reviewing the national strategic plan to incorporate the regulation's provisions before the adaptation deadline is set.
5. Legal advisors in the sector: Update agricultural contract models and collective bargaining protocols to reflect the new legal framework.
6. All affected parties: Monitor the publication of the entry into force date and national regulatory developments that specify adaptation obligations.

Official source

Consult full regulation on official source

Notice: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://eur-lex.europa.eu/./legal-content/AUTO/?uri=OJ:L_202601739