Agriculture Bill (HC Bill 7)

(10) In this Chapter “processing”, in relation to information, means an operation or
set of operations which is performed on information, or on sets of information,
such as—

(a) collection, recording, organisation, structuring or storage,

(b) 5adaptation or alteration,

(c) retrieval, consultation or use,

(d) disclosure by transmission, dissemination or otherwise making
available,

(e) alignment or combination, or

(f) 10restriction, erasure or destruction.

26 Enforcement of information requirements

(1) The Secretary of State may by regulations make provision for enforcement of a
requirement imposed under section 21(1) or (2).

(2) In the following provisions of this section “specified” means specified in
15regulations under subsection (1).

(3) In subsection (1) “enforcement” includes (in particular)—

(a) monitoring compliance,

(b) investigating non-compliance, and

(c) dealing with non-compliance.

(4) 20The provision that may be made by regulations under subsection (1) includes
(in particular)—

(a) provision for the imposition of monetary penalties for non-compliance
with requirements, whether penalties—

(i) of a specified amount,

(ii) 25of an amount calculated in a specified manner,

(iii) of an amount, not exceeding a specified maximum or a
maximum calculated in a specified manner, decided by a
specified person or a person of a specified description, or

(iv) by way of suspending, or withholding, payment of any
30amounts;

(b) provision for recovery of amounts due in respect of monetary penalties,
including provision for any of interest, set-off and security for
payment;

(c) provision about the giving of advice or warnings;

(d) 35provision for the acceptance of undertakings to take, or refrain from
taking, particular actions;

(e) provision giving persons functions in connection with enforcement of
requirements;

(f) provision about review of, or appeals against, things done (including
40decisions made) in connection with enforcement of requirements.

(5) In subsection (4)(a) “specified manner” includes (in particular) a manner
framed by reference to a specified matter such as a person’s profits, income or
turnover.

(6) Regulations under subsection (1) are subject to affirmative resolution
45procedure.

CHAPTER 2 Fair dealing with agricultural producers and others in the supply chain

27 Fair dealing obligations of business purchasers of agricultural products

(1) The Secretary of State may make regulations—

(a) imposing obligations on business purchasers of agricultural products
5in relation to contracts they make for the purchase of agricultural
products from qualifying sellers;

(b) providing for the enforcement of obligations imposed under paragraph
(a).

(2) The powers under subsection (1) are exercisable for the purpose of promoting
10fair contractual dealing by business purchasers of agricultural products from
qualifying sellers.

(3) For the purposes of this section—

(a) the purchaser, in relation to a contract for the purchase of an
agricultural product, is a “business purchaser” if the person purchases
15the product in the course of carrying on a business that includes
purchasing products of that kind;

(b) the seller, in relation to a contract for the purchase of an agricultural
product, is a “qualifying seller” if the person (whether within or outside
the United Kingdom) is any of the following—

(i) 20a person carrying on an agricultural activity for the production
of products of that kind or otherwise in connection with their
production;

(ii) a recognised producer organisation;

(iii) a recognised association of producer organisations;

(iv) 25a produce aggregator (so far as not falling within sub-
paragraph (ii) or (iii)) for that product.

(4) In subsection (3)(b)(iv), a “produce aggregator” for a product means a person—

(a) who purchases products of that kind from more than one seller each of
whom is a qualifying seller in relation to the contract for the purchase,
30but

(b) who does not carry out any processing activities in relation to that kind
of product or any other kind of product which the person sells.

(5) For the purposes of subsection (4)(a), a seller may fall within paragraph (iv) of
subsection (3)(b) by virtue of an earlier application of subsection (4).

(6) 35The kinds of obligation that regulations under this section may impose in
relation to a contract include—

(a) obligations to contract in writing;

(b) obligations to include, or not to include, in the contract terms dealing
with specified matters;

(c) 40where terms dealing with specified matters are included in the contract
(whether or not by virtue of paragraph (b))—

(i) obligations relating to the provision that must be made by those
terms;

(ii) obligations to comply with specified principles and practices as
45to the provision that should be made by those terms.

(7) The following are examples of the matters that may be specified under
subsection (6)(b) and (c)—

(a) the quantity and quality of products to be purchased;

(b) how products are to be provided (including timing of deliveries);

(c) 5pricing mechanisms (including mechanisms for adjustments,
premiums and deductions);

(d) payment (including timing and method of payments);

(e) charges for processing, marketing or advertising products;

(f) exclusivity of contractual dealing;

(g) 10the provision of information between the parties;

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

(i) duration and termination of a contract.

(8) The provision that may be made under subsection (1)(b) includes provision —

(a) 15for complaints relating to alleged non-compliance to be referred to a
specified person;

(b) as 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
20on a business purchaser of agricultural products from a qualifying
seller of monetary penalties or a requirement to pay compensation (or
both);

(d) for appeals against such penalties or requirements.

(9) The powers under subsection (1)(b) include power to—

(a) 25confer functions on any person;

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

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

(11) In this section—

• “processing activities” includes activities such as butchering, baking,
  30fermenting, rendering and preserving (whether by drying, canning,
  bottling, freezing or otherwise) but does not include activities such as
  packing, cleaning, sorting, transporting and storing;

• “recognised association of producer organisations” means an association
  recognised under section 28(3);

• 35“recognised producer organisation” means a producer organisation
  recognised under section 28(1);

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

CHAPTER 3 Producer organisations

28 Producer and interbranch organisations etc: application for recognition

(1) 40An 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) 5that 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) 10that 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) 15that 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
20subsection (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) 25activities 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
30of 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
35production, 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
40involve 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)
45from 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) 5The 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
10online.

(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) 15time periods and deadlines;

(d) application fees;

(e) reviews and appeals.

(13) In this section—

• “agricultural producer” means a producer operating in one or more
  20agricultural 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;

• 25“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
30definitions, making provision as to what falls, or does not fall, within a
sector or including any other interpretative material).

29 Recognised organisations: competition exemptions and further provision

(1) Schedule 2 amends Schedule 3 to the Competition Act 1998 (general
exclusions) so as to exclude certain agreements between members of
35recognised 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
40comply;

(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) 45about 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
5discretion) 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) 10In this section, “recognised organisation” means—

(a) a recognised producer organisation,

(b) a recognised association of producer organisations, or

(c) a recognised interbranch organisation.

30 Regulations under sections 28 and 29

(1) 15The power to make regulations under sections 28(9), (10) or (12) and 29
includes power to make provision allowing the Secretary of State to delegate
functions, including the function of deciding applications for recognition
under section 28.

(2) Regulations under sections 28(9), (10) or (12) and 29 may make additional or
20different provision, including in the case of section 28(9) an exemption from a
condition in section 28, 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
25in 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) 30Regulations under sections 28 and 29 are subject to negative resolution
procedure unless—

(a) section 47(5) applies,

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

(c) the regulations contain provision made under section 28(14).

(4) 35Regulations under sections 28 and 29 which contain new sector-specific
provision or provision made under section 28(14) are subject to affirmative
resolution procedure.

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

(a) 40persons 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 28(14) (as the case may be).

(6) In this section—

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

Agriculture BillPage 27

• “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.

Part 4 5Matters relating to farming and the countryside

31 Fertilisers

(1) Part 4 of the Agriculture Act 1970 (fertilisers etc) is amended as follows.

(2) In section 66 (interpretation), in subsection (1), for the definition of “fertiliser”
substitute—

• 10“““fertiliser” means any material which, for the purpose of the
  cultivation of plants or fungi, is intended to supply plants or
  fungi or their seeds or spores with nutrients or to improve
  nutritional efficiency;”.

(3) In section 74A (power to regulate fertilisers etc), in subsection (1), for “or
15content”, in both places, substitute “, content or function”.

(4) In that section, after subsection (1) insert—

“(1A) Regulations made under subsection (1) above with respect to fertilisers
may, for the purposes of assessing, monitoring or enforcing compliance
with such regulations or otherwise mitigating risks to human, animal
20or plant health or the environment presented by fertilisers, include
provision—

(a) for the carrying out of procedures to assess the composition,
content or function of any material (“assessment procedures”);

(b) conferring on a public authority functions relating to market
25surveillance and regulation;

(c) requiring the keeping or provision of information.

(1B) Provision for assessment procedures which is made under subsection
(1A)(a) above may include provision—

(a) as to how and when assessment procedures are to be carried
30out;

(b) as to the persons by whom assessment procedures are to be
carried out or verified and the functions of such persons;

(c) conferring on a public authority functions relating to the
appointment and registration of persons referred to in
35paragraph (b) and authorising delegation of those functions;

(d) for appeals against decisions taken in relation to assessment
procedures or appointments and registration;

(e) for the charging of fees in respect of assessment procedures
(such fees not to exceed the reasonable costs of carrying out the
40procedures);

(f) conferring on a public authority functions relating to the
registration of fertilisers which, on the basis of assessment
procedures carried out on them, meet the requirements of the
regulations.

(1C) The functions which may be conferred on a public authority under
subsection (1A)(b) above include—

(a) powers to require the carrying out of further assessment
procedures;

(b) 5powers to prohibit or restrict the carrying out of an activity in
relation to fertilisers;

(c) powers to require the taking of action in relation to fertilisers;

(d) powers to require the withdrawal from sale, or the recall from
purchasers, of fertilisers;

(e) 10powers to impose monetary penalties in cases where the public
authority considers that there has been a failure to comply with
the regulations;

(f) powers of entry and inspection, including powers of taking
samples and of seizing or destroying any material.

(1D) 15Regulations under subsection (1A)(c) may not impose or confer a duty
or power requiring or authorising the disclosure or use of information
where the disclosure or use would (taking the duty or power into
account) contravene the data protection legislation (which for these
purposes has the same meaning as in the Data Protection Act 2018).

(1E) 20Regulations made under subsection (1) above may—

(a) make provision that is incidental, consequential or
supplementary to provision made under subsections (1A) to
(1C), including provision—

(i) amending or repealing EU Regulation 2003/2003 of 13
25October 2003 relating to fertilisers, and

(ii) amending or repealing other retained direct EU
legislation;

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

(1F) 30In this section “public authority” means a person exercising functions
of a public nature.”

(5) In section 84 (regulations)—

(a) in subsection (2)(b), at the end insert “(unless any of subsections (2A) to
(2C) applies)”;

(b) 35after subsection (2) insert—

“(2A) The following regulations may not be made unless a draft of the
instrument containing them has been laid before, and approved
by a resolution of, each House of Parliament—

(a) the first regulations made by the Secretary of State
40under section 74A(1) after the coming into force of this
subsection which contain provision under section
74A(1A) to (1E);

(b) any other regulations made by the Secretary of State
under section 74A(1) which contain provision under
45section 74A(1A)(b) or (1E)(a)(i) or (ii).

(2B) The following regulations may not be made unless a draft of the
instrument containing them has been laid before, and approved
by a resolution of, the National Assembly for Wales—

(a) the first regulations made by the Welsh Ministers under
section 74A(1) after the coming into force of this
subsection which contain provision under section
74A(1A) to (1E);

(b) 5any other regulations made by the Welsh Ministers
under section 74A(1) which contain provision under
section 74A(1A)(b) or (1E)(a)(i) or (ii).

(2C) The following regulations made by the Scottish Ministers are
subject to the affirmative procedure (as to which, see section 29
10of the Interpretation and Legislative Reform (Scotland) Act
2010)—

(a) the first regulations made by the Scottish Ministers
under section 74A(1) after the coming into force of this
subsection which contain provision under section
1574A(1A) to (1E);

(b) any other regulations made by the Scottish Ministers
under section 74A(1) which contain provision under
section 74A(1A)(b) or (1E)(a)(i) or (ii).

(2D) The following regulations may not be made unless a draft of
20them has been laid before, and approved by a resolution of, the
Northern Ireland Assembly—

(a) the first regulations made by a Northern Ireland
department under section 74A(1) after the coming into
force of this subsection which contain provision under
25section 74A(1A) to (1E);

(b) any other regulations made by a Northern Ireland
department under section 74A(1) which contain
provision under section 74A(1A)(b) or (1E)(a)(i) or (ii).”

(6) In section 86 (modifications for Northern Ireland), in subsection (9), in the
30paragraph (b) treated as substituted for section 84(2)(b), after “1954” insert
“(unless subsection (2D) applies)”.

32 Identification and traceability of animals

(1) In the Natural Environment and Rural Communities Act 2006, after section 89
insert—

“89A 35Identification and traceability of animals

(1) Where the Secretary of State makes or has made an order under section
87(1)(a) establishing a body, the functions that may be assigned to the
body under section 87(1)(b) by the Secretary of State include functions
that are exercisable in relation to England, Wales, Northern Ireland or
40Scotland and relate to—

(a) collecting, managing and making available information
regarding the identification, movement and health of animals,
or

(b) the means of identifying animals.

(2) 45Provision made by virtue of subsection (1) may not require or authorise
the disclosure or use of information in contravention of the data
protection legislation (within the meaning of section 3 of the Data
Protection Act 2018).

(3) In this section “animals” has the same meaning as it has for the
purposes of section 8 of the Animal Health Act 1981.”

(2) In the Animal Health Act 1981, in section 8 (movement generally)—

(a) in subsection (1)(a), for “the marking of animals” substitute “—

(i) 5in relation to England, the means of identifying
animals, and

(ii) in relation to Wales or Scotland, the marking of
animals,”;

(b) after subsection (1) insert—

“(1A) 10Provision made under subsection (1) by the Secretary of State
may bind the Crown.”

(3) In Regulation (EC) No 1760/2000 of the European Parliament and of the
Council of 17 July 2000 establishing a system for the identification and
registration of bovine animals, in Article 1 (member States to establish systems
15for the identification and registration of bovine animals), at the end insert—

“3 This Title does not apply in relation to England.”

(4) In Council Regulation (EC) No 21/2004 of 17 December 2003 establishing a
system for the identification and registration of ovine and caprine animals, in
Article 1 (member States to establish systems for the identification and
20registration of ovine and caprine animals), at the end insert—

“3 This Regulation does not apply in relation to England.”

33 Red Meat levy: payments between levy bodies in Great Britain

(1) A scheme under this section (“the scheme”) may—

(a) make provision for amounts of red meat levy collected by the levy body
25for one country in Great Britain to be paid to the levy body for another
such country, or

(b) amend, suspend or revoke an earlier scheme made under this section.

(2) The scheme may make provision about—

(a) the method by which the amount of a payment is to be calculated,

(b) 30who is to determine the amount of a payment,

(c) when a payment is to be made,

(d) how a payment is to be made, and

(e) the duration of the scheme;

and in this subsection “payment” means any payment which is to be made
35under the scheme by a levy body.

(3) The method of calculating the amount of a payment may include calculation
by reference to any matters specified in the scheme, including—

(a) the number of animals—

(i) in respect of which red meat levy was imposed by the levy body
40making the payment in a given period, and

(ii) which have a given connection with the country of the levy
body which is to receive the payment;

(b) the administrative costs of implementing the scheme for the levy
bodies involved in the payment.