(f) exclusivity of contractual dealing;

(g) the provision of information between the parties;

(h) variation of a contract (including notice periods for variation and
retrospective variations);

(i) 5duration and termination of a contract.

(5) The regulations may make provision for the enforcement of compliance with
the obligations they impose, including provision—

(a) for complaints relating to alleged non-compliance to be referred to a
specified person;

(b) 10as to how those complaints are to be investigated and how an allegation
of non-compliance is to be determined;

(c) in the event of a determination of non-compliance, for the imposition of
civil penalties, or a requirement to pay compensation, on a first
purchaser of agricultural products;

(d) 15for appeals against such penalties or requirements.

(6) Regulations under subsection (5) may—

(a) confer functions on any person;

(b) provide for a person to exercise a discretion in dealing with any matter.

(7) Regulations under this section may revoke Articles 148, 149 and 168 of the
20CMO Regulation.

(8) Regulations under this section containing provision under subsection (3)(c) are
subject to affirmative resolution procedure.

(9) Other regulations under this section are subject to negative resolution
procedure.

(10) 25In this section—

• “agricultural product” means a product that falls within a sector listed in
  Part 2 of Schedule 1;

• “first purchasers of agricultural products” means persons who in the
  course of a business purchase agricultural products from producers;

• 30“producer” includes a producer outside the United Kingdom;

• “specified” means specified in regulations under this section.

Part 7 WTO Agreement on Agriculture

26 WTO Agreement on Agriculture: regulations

(1) 35The Secretary of State may make regulations for the purpose of securing
compliance by the United Kingdom with the Agreement on Agriculture.

(2) Regulations under subsection (1) may make provision about the classification
of domestic support for the purposes of the Agreement on Agriculture,
including provision setting out—

(a) 40a process for the appropriate authorities to decide how different types
of domestic support should be classified (including reviewing and
amending existing classifications);

(b) a process for the resolution of disputes between the appropriate
authorities regarding the classification of domestic support, which may

include provision making the Secretary of State the final arbiter on any
decision on classification.

(3) Regulations under subsection (1) may also make provision about levels of
domestic support, including provision setting out—

(a) 5the total amount of domestic support allowable to the United Kingdom
under the Agreement on Agriculture;

(b) a limit on the amount of domestic support that may be given by all of
the appropriate authorities combined (which may be less than the
amount mentioned in paragraph (a));

(c) 10individual limits on the amount of domestic support that may be given
by each appropriate authority in England, Wales, Scotland and
Northern Ireland.

(4) Regulations setting a limit under subsection (3) may—

(a) set different limits for different appropriate authorities;

(b) 15set different limits for different classes of domestic support;

(c) define the limits by way of a monetary amount or, in the case of a limit
under subsection (3)(c), a percentage of the amount referred to in
subsection (3)(a) or (b), or in any other way the Secretary of State
considers appropriate.

(5) 20When considering the limits to set out in the regulations, the matters that the
Secretary of State may take into account include—

(a) domestic support that is or may need to be given across the whole of
the United Kingdom;

(b) domestic support that may be given in any territory which counts
25towards the amount mentioned in subsection (3)(a).

(6) Regulations under subsection (1) may also make provision requiring a
devolved authority to provide information to the Secretary of State, including
provision—

(a) setting out or describing information that is required on a regular basis
30for the purposes of—

(i) classifying domestic support;

(ii) enabling the United Kingdom to comply with requirements
imposed by the Agreement on Agriculture;

(b) giving the Secretary of State a power to require a devolved authority to
35provide other information for the purposes of—

(i) classifying domestic support (or resolving a dispute about its
classification);

(ii) enabling the United Kingdom to comply with requirements
imposed by the Agreement on Agriculture;

(iii) 40resolving a dispute with another party to the Agreement on
Agriculture;

(iv) supporting or informing negotiations with other parties
relating to the Agreement on Agriculture;

(c) setting out the time periods within which information must be
45provided.

(7) The power to make regulations under this section includes the power to—

(a) confer functions on a person other than the Secretary of State;

(b) provide for the Secretary of State to delegate functions;

(c) provide for a person to exercise a discretion in dealing with any matter.

(8) Regulations under this section are subject to affirmative resolution procedure.

(9) In this section—

• “the Agreement on Agriculture” means the Agreement on Agriculture,
  5part of Annex 1A to the WTO Agreement (as modified from time to
  time);

• “appropriate authority” means—

  (a)

  the Secretary of State, or

  (b)

  a devolved authority;

• 10“devolved authority” means—

  (a)

  the Scottish Ministers,

  (b)

  the Welsh Ministers, or

  (c)

  a Northern Ireland Department;

• “domestic support” means subsidies or other financial support given to
  15agricultural producers;

• “the WTO Agreement” means the agreement establishing the World
  Trade Organisation signed at Marrakesh on 15 April 1994.

Part 8 Wales and Northern Ireland

27 20Wales

Schedule 3 makes provision in relation to Wales.

28 Northern Ireland

Schedule 4 makes provision in relation to Northern Ireland.

Part 9 25Final provisions

29 Regulations

(1) Subject to subsection (2), any power to make regulations under this Act is
exercisable by statutory instrument.

(2) A power conferred on the Department of Agriculture, Environment and Rural
30Affairs in Northern Ireland to make regulations under this Act is exercisable by
statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order
1979 (S.I. 1979/1573 (N.I. 12)S.I. 1979/1573 (N.I. 12)).

(3) Any power to make regulations under this Act includes power—

(a) to make provision binding the Crown;

(b) 35to make different provision for different purposes;

(c) to make supplementary, incidental, consequential, transitional or
saving provision.

(4) The provision which may be made by virtue of subsection (3)(c) includes
provision modifying primary legislation, retained direct EU legislation or
subordinate legislation.

(5) Regulations under this Act creating offences may not provide for an offence
5created by the regulations to be punishable with imprisonment for a period
exceeding—

(a) in the case of conviction on indictment, 2 years;

(b) in the case of summary conviction, 3 months.

(6) Where regulations under this Act are subject to affirmative resolution
10procedure, the regulations—

(a) if made by the Secretary of State, may not be made unless a draft of the
statutory instrument containing them has been laid before, and
approved by a resolution of, each House of Parliament;

(b) if made by the Welsh Ministers, may not be made unless a draft of the
15statutory instrument containing them has been laid before, and
approved by a resolution of, the National Assembly for Wales;

(c) if made by the Department of Agriculture, Environment and Rural
Affairs in Northern Ireland, may not be made unless a draft of the
regulations has been laid before, and approved by a resolution of, the
20Northern Ireland Assembly.

(7) Where regulations under this Act are subject to negative resolution
procedure—

(a) if made by the Secretary of State, the statutory instrument containing
them is subject to annulment in pursuance of a resolution of either
25House of Parliament;

(b) if made by the Welsh Ministers, the statutory instrument containing
them is subject to annulment in pursuance of a resolution of the
National Assembly for Wales;

(c) if made by the Department of Agriculture, Environment and Rural
30Affairs in Northern Ireland, the regulations are subject to negative
resolution within the meaning of section 41(6) of the Interpretation Act
(Northern Ireland) 1954.

(8) Any provision that may be made by regulations under this Act subject to
negative resolution procedure may be made in regulations subject to
35affirmative resolution procedure.

(9) This section does not apply to regulations under section 35.

30 Interpretation

In this Act—

• “the CMO Regulation” means Regulation (EU) No 1308/2013 of the
  40European Parliament and of the Council of 17 December 2013
  establishing a common organisation of the markets in agricultural
  products;

• “modify” includes amend, revoke and repeal (and related expressions are
  to be construed accordingly);

• 45“primary legislation” means—

  (a)

  an Act of Parliament;

  (b)

  an Act of the Scottish Parliament;

  Agriculture BillPage 24

  (c)

  a Measure or Act of the National Assembly for Wales;

  (d)

  Northern Ireland legislation;

• “subordinate legislation” has the same meaning as in the Interpretation
  Act 1978.

31 5Consequential amendments

Schedule 5 amends the CMO Regulation in consequence of—

(a) Part 4 (intervention in agricultural markets: England);

(b) Part 4 of Schedule 3 (intervention in agricultural markets: Wales);

(c) Part 3 of Schedule 4 (intervention in agricultural markets: Northern
10Ireland);

(d) Part 5 (marketing standards and carcass classification: England);

(e) Part 5 of Schedule 3 (marketing standards and carcass classification:
Wales);

(f) Part 4 of Schedule 4 (marketing standards and carcass classification:
15Northern Ireland).

32 Power to make consequential etc provision

(1) The Secretary of State may by regulations make consequential, supplemental,
transitional or transitory provision or savings in connection with any provision
of this Act.

(2) 20Regulations under this section may modify primary legislation, retained direct
EU legislation or subordinate legislation.

(3) Regulations under this section which contain provision modifying primary
legislation (with or without other provision) are subject to affirmative
resolution procedure.

(4) 25Other regulations under this section are subject to negative resolution
procedure.

33 Financial provision

There is to be paid out of money provided by Parliament—

(a) sums required for—

(i) 30giving financial assistance under section 1(1) or (2) or 18(2);

(ii) making delinked payments under provision made by regulations
under section 7(1)(b);

(iii) operating the public market intervention or aid for private storage
mechanisms under retained direct EU legislation in response to a
35declaration under section 17;

(b) administrative expenses incurred by the Secretary of State by virtue of this
Act;

(c) any increase attributable to this Act in amounts payable out of money provided
by Parliament by virtue of any other Act.

34 40Extent

(1) The following provisions of this Act extend to England and Wales only—

(a) Part 1;

(b) Part 3;

(c) sections 17 and 18;

(d) section 20;

(e) in Schedule 1—

(i) 5Part 1;

(ii) Part 3 so far as relating to Part 1 of the Schedule;

(f) in Schedule 3—

(i) Part 1;

(ii) Part 3;

(iii) 10paragraphs 16 and 17;

(iv) Part 5.

(2) The following provisions in Schedule 4 extend to Northern Ireland only—

(a) Part 2;

(b) paragraph 10;

(c) 15Part 4.

(3) Otherwise, this Act extends to England and Wales, Scotland and Northern
Ireland.

35 Commencement

(1) This Part, apart from section 31 and Schedule 5, comes into force on the day on
20which this Act is passed.

(2) Sections 22 to 24 and Schedule 2 (producer organisations) come into force on
such day as the Secretary of State may by regulations made by statutory
instrument appoint.

(3) Different days may be appointed for different purposes.

(4) 25Section 31 and Schedule 5 (consequential amendments to the CMO Regulation)
come into force—

(a) at the end of the period of two months beginning with the day on which
this Act is passed, or

(b) if later, on exit day.

(5) 30The other provisions of this Act come into force at the end of the period of two
months beginning with the day on which this Act is passed.

36 Short title

This Act may be cited as the Agriculture Act 2018.

SCHEDULES

Sections 20, 22, 24 and 25

SCHEDULE 1 Agricultural products: sectors

Part 1 5Agricultural sectors relevant to marketing standards provisions

Milk and milk products intended for human consumption.

Spreadable fats intended for human consumption.

Beef and veal.

Poultrymeat.

10Eggs.

Fruit and vegetables.

Processed fruit and vegetable products.

Bananas.

Hops.

15Wine.

Aromatised wine.

Olive oil and table olives.

Live plants.

Part 2 20Agricultural sectors relevant to producer organisation and fair dealing
provisions

Milk and milk products.

Beef and beef products.

Sheepmeat and goatmeat.

25Pigmeat.

Poultrymeat.

Eggs.

Cereals.

Fruit and vegetables.

Processed fruit and vegetable products.

Sugar.

5Seeds.

Hops.

Wine.

Apiculture products.

Other plants.

10Part 3 Regulations

1 (1) The Secretary of State may make regulations—

(a) amending Part 1 or 2 of this Schedule so as to add or remove an
agricultural sector;

(b) 15setting out products that fall within each sector, or otherwise giving
further detail on the sectors.

(2) Regulations under this paragraph are subject to negative resolution
procedure.

Section 23

SCHEDULE 2 20Recognised organisations: competition exclusions

1 Schedule 3 to the Competition Act 1998 (general exclusions) is amended as
follows.

2 (1) Paragraph 9 (agricultural products) is amended as follows.

(2) For sub-paragraph (1) substitute—

“(1) 25The Chapter 1 prohibition does not apply to an agreement to the
extent that it is an agreement between the members of—

(a) a recognised producer organisation (“PO”), or

(b) a recognised association of producer organisations
(“APO”),

30for the PO or APO (as the case may be) to carry out one or more of
the activities mentioned in sub-paragraph (1A) on behalf of its
members (for all or part of their total production), provided that
Conditions A and B are also met.

(1A) The activities are—

(a) 35planning production;

(b) optimising production costs;

(c) concentrating supply;

(d) placing products on the market;

(e) negotiating supply contracts.

(1B) 5Condition A is that—

(a) in the case of a PO, the PO concentrates supply and places
the products of its members on the market, whether or not
there is a transfer of ownership of agricultural products by
the producers to the PO, or

(b) 10in the case of an APO, the APO concentrates supply and
places the products of the members of the POs it represents
on the market, whether or not there is a transfer of
ownership of agricultural products by the producers to the
APO or to any of the POs the APO represents.

(1C) 15Condition B is that—

(a) in the case of a PO, none of the producers concerned are
members of any other PO as regards the products covered
by the activities mentioned in sub-paragraph (1A) to
which the agreement relates, or

(b) 20in the case of an APO, none of the producers concerned are
members of a PO that is a member of any other APO as
regards the products covered by the activities mentioned
in sub-paragraph (1A) to which the agreement relates.

(1D) But the Secretary of State may decide that the RPO exclusion
25applies if Condition B is not met, if—

(a) every producer which is a member of more than one PO
holds distinct production units located in different
geographical areas, and

(b) the Secretary of State considers that it is appropriate in all
30the circumstances for the RPO exclusion to apply.

(1E) If the Secretary of State is considering whether to make a decision
under sub-paragraph (1D), the Secretary of State may by notice in
writing require any party to the agreement in question to give the
Secretary of State such information in connection with the
35agreement as the Secretary of State may require.””

(3) Omit sub-paragraph (2).

(4) In sub-paragraph (3), for “agriculture exclusion” substitute “RPO
exclusion”.

(5) For sub-paragraph (9) substitute—

“(9) 40In this paragraph—

• “agricultural product” means a product that falls within a
  sector mentioned in Part 2 of Schedule 1 to the Agriculture
  Act 2018;

• “recognised association of producer organisations” means an
  45association recognised under section 22 of that Act;

• “recognised producer organisation” means a producer
  organisation recognised under section 22 of that Act.””

3 After paragraph 9, insert—

“10 (1) The Chapter 1 prohibition does not apply to an agreement to the
extent that it is an agreement between the members of a
recognised interbranch organisation that has the object of carrying
5out one or more specified activities in relation to the agricultural
sector for which it is recognised, provided that the condition in
sub-paragraph (2) is also met.

(2) The condition in this sub-paragraph is that the organisation has
notified the agreement to the CMA and provided all further
10details required by the CMA, and—

(a) the CMA has decided that it is appropriate for the RIBO
exclusion to apply, or

(b) within two months of the CMA receiving all the details it
requires, the CMA has not decided that it is inappropriate
15for the RIBO exclusion to apply.

(3) In deciding whether it is appropriate for the RIBO exclusion to
apply, the CMA must consider whether the benefit of the
agreement to the specified activities of the recognised interbranch
organisation outweighs any prevention, restriction or distortion of
20competition within the United Kingdom as a result of the
agreement.

(4) The CMA may at any time give a direction to the effect that the
RIBO exclusion no longer applies to a particular agreement.

(5) Sub-paragraphs (4) to (8) of paragraph 9 apply to a direction under
25this paragraph as they apply to a direction under paragraph 9.

(6) In this paragraph—

• “recognised interbranch organisation” means an
  organisation of agricultural businesses recognised under
  section 22 of the Agriculture Act 2018;

• 30“specified activities” means the activities specified in
  regulations under section 22(6)(e) of that Act.””

Section 27

SCHEDULE 3 Provision relating to Wales

Part 1 35New financial assistance powers

Welsh Ministers’ powers to give financial assistance

1 (1) The Welsh Ministers may give financial assistance for or in connection with
any of the following purposes—

(a) managing land or water in a way that protects or improves the
40environment;