European lawmakers have approved reforms to help farmers secure more favorable contract terms and a larger share of food supply chain profits than before.

According to a June 15 release from European Parliament, the new rules are designed to ensure that the final prices of food products better reflect production costs, while providing more income to farmers. The measures also strengthen farmers' ability to negotiate collectively, and require written contracts for most agricultural transactions.

"The agreement voted today delivers a major victory for our farmers," said EU Parliament Rapporteur Celine Imart. "Contracts will now guarantee them a fair place in the supply chain, while a mandatory mediation mechanism will protect their income during buyer disputes."

Additionally, the reforms include a strict definition for meat as the "edible part of animals," to help improve labeling transparency, and prevent consumers from being misled by the marketing of plant-based or lab-grown alternatives.

The legislation was first put forth in December 2024 to address challenges faced by EU farmers, who voiced concerns over rising production costs and an imbalance of bargaining power that's left them with too small a share of the profits generated throughout the food supply chain. It will next need to be approved by the EU Council before the rules can take effect.