Reminder on farm member royalty increase from April

Red Tractor reviews the costs of running the UK’s largest food and farming assurance scheme annually and, like all organisations, it is facing price pressures.

We know members are experiencing rising costs too, so the increase in our royalty has been kept as low as possible. In many cases members will see a small increase in their annual royalty fee, equating to less than 20 pence a week.

Remember, the royalty fee is a small proportion of the total annual fee that an assured member pays their certification bodies. Royalties are passed on to Red Tractor to cover the cost of running the scheme. The majority of the total fee paid goes to a member’s certification body to cover the cost of carrying out their assessment.

Why the royalty fee is rising

Red Tractor is in the final year of a three-year transition to rebalance its member royalties, starting from a very low base in the Beef & Lamb, Dairy, and Combinable Crops & Sugar Beet sectors where the royalty was previously set below the cost of running the scheme.

From 1 April 2022, Red Tractor’s minimum annual royalty fee will be £45.

This remains significantly less than other assurance schemes and offers good value, with members enjoying maximum market access for minimal audit burden, fewer government agency inspections, and the ability to purchase effective rodenticides without needing to complete additional training, among many other benefits.

Find out more about the benefits of your membership below, and discover more about sector-specific benefits here.