Farmers are losing out on £1bn in public money a year because they are struggling to understand how they can supply fresh produce to schools and hospitals, a farming group has warned.
New figures have shown there is a significant missed opportunity for farmers to diversify their incomes by supplying high-quality, locally grown produce to the public sector.
The study from the Nature Friendly Farming Network found 77% of respondents did not know about public procurement schemes or were unsure how to apply to them.
Many schemes were overly complex, designed for large contractors, offered low payments and required high upfront investment, the group has warned.
“The government has set a target for 50% of public sector food to be sourced locally as part of its food strategy, but we are far from achieving that goal,” said farmer and CEO of NFFN Martin Lines. “Simplifying the procurement process, paying fair prices, reducing red tape, and opening contracts to smaller independent farms could make a real difference.
“These changes will not happen automatically and will require leadership from ministers to drive them.”
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Most farmers (86%) agreed clearer guidelines would make it easier for them to supply to public organisations.
Nature Friendly Farmers estimated the opportunity, given the government has committed to spending half of its food procurement budget on local and sustainable produce, for farmers is about £1bn UK-wide.
“Being a commodity grower can feel like running faster and faster on a treadmill,” said Kent vegetable farmer Anthony Curwen. “Public procurement, if done right, offers farmers real opportunities and hope for the future by giving them options.”
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