Closed

Improving analytical capacity and understanding of the bargaining power and interactions of farmers with the operators of the value chains

HORIZON Research and Innovation Actions

Basic Information

Identifier
HORIZON-CL6-2025-03-GOVERNANCE-01
Programme
Cluster 6 Call 03 - single stage
Programme Period
2021 - 2027
Status
Closed (31094503)
Opening Date
May 6, 2025
Deadline
September 24, 2025
Deadline Model
single-stage
Budget
€6,000,000
Min Grant Amount
€6,000,000
Max Grant Amount
€6,000,000
Expected Number of Grants
1
Keywords
HORIZON-CL6-2025-03-GOVERNANCE-01HORIZON-CL6-2025-03Agricultural economicsBioeconomyBusiness governanceBusiness modelsEconometrics, statistical methodsFarm economicsIndustrial economicsMicroeconomics, behavioural economics

Description

Expected Outcome:

Reinforcing the position of farmers in the value chain is a key objective of the common agricultural policy (CAP). In line with this CAP objective, and other related policies [1], the successful proposal will enhance knowledge and analytical tools useful to the development and implementation of effective governance and policy mixes aimed at improving the functioning of EU agriculture and food value chains (hereafter ‘value chains’). The successful proposal will contribute to support value chains that generate a fair income to farmers and create enabling conditions for the transition to sustainable, resilient and competitive farming systems.

Project results are expected to contribute to all of the following expected outcomes:

  • the capacity of the research community to analyse and model the EU agricultural and food sectors, their market structures, and the formation, transmission and distribution of costs, prices, risks and economic values along value chains is enhanced; likewise, policymakers, farmers and other value chain operators have a better understanding of the functioning of value chains and the formation, transmission and distribution of costs, prices, risks and economic values along them;
  • policymakers at EU, national and local level have a better understanding of the impacts of policies on the functioning of value chains, and are therefore better equipped to design and support the uptake of existing and future policy tools strengthening farmers’ position in them;
  • farmers and consumers benefit from improved policy mixes, fair business interactions and tools reinforcing the bargaining power of farmers with upstream and downstream operators and supporting more sustainable, transparent and resilient value chains.
Scope:

The understanding and the capacity to analyse the functioning of agriculture and food sectors, value chains [2] and market structures remain incomplete and oversimplified. This contributes to a knowledge gap on the relations between farm production costs and price transmission, from input prices faced by farmers to food prices faced by consumers. Market and value chain conditions and dynamics affecting farmers’ bargaining power are important drivers of farmers decision-making and income. They define the prices of the inputs and services bought and the commodity and non-commodity outputs sold by farmers. Hence, they contribute to the choices of production and business model, investments, and to the adoption of sustainable practices. A better understanding of the composition and functioning of value chains and market settings, in a granular and comprehensive way, would support accurate assessments of the socio-economic impacts of policies and business operations. It would also support the development of effective, evidence-based policies and business strategies adapted to the diverse conditions faced by farmers and consumers that will improve the functioning of the agricultural and food markets.

Proposals should:

  • provide an analytical framework and tools capturing the complexity and heterogeneity of EU value chain structures, in particular relative to:
    • their length (number of intermediaries from the input industry to the consumers);
    • their scale (global, EU, national or local);
    • the degree and forms of vertical coordination;
    • the degree and forms of horizontal coordination between farmers;
    • the degree of concentration of operations at all stages;
    • the degree of product (quality) differentiation.
  • the framework should include a consolidated conceptualisation such that it can be adapted to represent the diversity of cases within and between sectors. The framework should also be sustained with empirical evidence and data to the maximum extent;
  • apply the developed analytical framework and tools to empirically model production costs, price formation, price transmission, risk, cost and economic value distributions, and profit margins along selected value chains, and to characterise sources of market failures and occurrence of unfair trading practices. Proposals should consider different economic contexts (e.g., high/low prices, different patterns of price volatilities, etc.);
  • develop and/or improve adequate indicators and collect the necessary data to improve the assessment of farmers bargaining power with upstream and downstream operators of value chains in analytical tools and models;
  • explore, characterise, and analyse the interactions between value chain operators and the characteristics of value chains affecting farmers’ bargaining and decision-making power, in particular on the type of farm business and structural changes (e.g., farm size, legal form, etc.). The proposed activities should include the analysis of the transaction relationships between farmers and input suppliers, farmers and service providers, and farmers and buyers of agricultural products. Among others, this work should analyse the types of contracts, provisions, clauses, standards, indications and calculations of prices and volumes, and how economic value, costs, and risks are shared among the operators. Proposals are encouraged to analyse whether farmers’ bargaining and decision-making power is affected by socioeconomic characteristics (e.g., gender, age, etc.).
  • explore existing and/or propose new policy and business solutions and tools to reinforce farmers bargaining power in value chains. Identify good practices (governance, awareness raising, etc.) for their successful implementation and uptake. Among the possible solutions, proposals should explore:
    • coordination approaches between farmers and/or between farmers and other value chain operators (e.g., form, size, contractual agreements, capacity building, etc.);
    • tools (e.g., data tools, innovative technologies) to increase market transparency and the accessibility and use of information. This should contribute to better inform farmers and consumers on the distribution of costs, prices, economic value, and risks along value chains and improve the fairness and efficiency of agriculture and food markets.

Proposals should develop dissemination materials (e.g., policy briefs, research findings briefs, audio or visual presentations, etc.) summarising the results of key deliverables to facilitate the uptake of R&I outputs by decisionmakers in policy or business contexts.

Proposals should capitalise on existing relevant research findings and tools. Proposals should also ensure synergies with other relevant EU-funded studies, projects, initiatives, and processes [3].

This topic should involve the effective contribution of Social Sciences and Humanities (SSH) disciplines.

[1] e.g., the EU Directive 2019/633 on unfair trading practices in business-to-business relationships in the agricultural and food supply chain, and the EU Regulation 1308/2013 establishing a common organisation of the markets in agricultural products.

[2] The agriculture and food value chains encompass all operators from the producers of necessary inputs for agricultural production to the consumers, including farmers, food and bio-based industries (including processing), retail, wholesale, food service (including public procurement), as well as the suppliers of inputs and services such as seeds, pesticides, fertilisers, energy, machinery, packaging, repair, transport, finance, advice, and logistics.

[3] e.g., producer organisations operational programmes, the EU Agri-Food Chain Observatory, fi-compass, etc.

Destination & Scope

Staying the course on the goals of the European Green Deal and related policy initiatives in a fast-changing context, the EU needs innovative and agile governance models and tools that enable sustainable prosperity and competitiveness. To this end, it is crucial to invest in R&I that delivers evidence-based knowledge and tools, which support decision-making processes and designing effective policy mixes that enable the twin green and digital transitions engaging society at large in a just manner ensuring that no one is left behind. R&I activities under this destination intend to assist policymakers (from the local to the global level) in dealing with complexity and to enable them to introduce science-based arguments for social debates, to compare options for action and to make evidence-based decisions. A higher degree of coordination and convergence across the scientific community and other networks channelling evidence-based knowledge for policymaking will be promoted. Some of the R&I activities will support the development of sustainable, circular and inclusive bioeconomy and its bio-based sectors in line with the bioeconomy strategy[1] and the communication on biotechnology and biomanufacturing in the EU[2] as well as the forthcoming new European biotech act[3]. New knowledge and innovations will support the common agricultural policy (CAP) and related EU initiatives, focusing specifically on reinforcing farmers’ position in the value chains, as well as rewarding farmers that work with nature, preserving biodiversity and natural ecosystems and helping to decarbonise the economy on the way to net-zero by 2050. R&I activities will also contribute to boosting the attractiveness of agriculture and the links between the farming community, in particular young farmers, and the society at large.

Data and intelligence provided by environmental observations are key for assessing the state of the planet, including its biodiversity and the pollution of its air, soils and waters, thus supporting the EU biodiversity strategy for 2030[4], the Nature Restoration Law[5], the EU zero pollution action plan[6] and the announced European Ocean Pact. R&I and related coordinating activities under this destination will improve environmental observing systems and provide Earth Intelligence, i.e. targeted and actionable environmental knowledge and insights, that will support policymakers, society and economy in navigating the transformative changes required by the European Green Deal. Towards these ends, technological solutions and data governance models will be advanced in order to make environmental data more available, accessible, usable and inter-operable at European and global level. Some topics under this destination support the Group on Earth Observations (GEO), which is an international partnership that aims at delivering Earth Intelligence to decision makers at all levels. It offers a unique forum for international cooperation and the opportunity to scale-up solutions developed in Europe and other regions of the globe, in particular under the European programme Copernicus, advancing the implementation of the UNFCCC Paris Agreement, the Sendai Framework for Disaster Risk Reduction, the 2030 Agenda for Sustainable Development, and the New Urban Agenda, as well as endeavours like the Kunming-Montreal Global Biodiversity Framework, the UN Early Warnings for All and the WMO Global Greenhouse Gas Watch initiatives.

EuroGEO is the regional initiative in GEO implementing a policy- and user-driven research and innovation agenda to maximise uptake and engagement of EO applications, building on Copernicus and other EU assets in Earth Observation, that are addressing the above-mentioned GEO priorities. EuroGEO will be enabled to provide Earth Intelligence to local administrations or businesses with targeted decision support to increase the resilience and environmental performance of their operations. R&I activities will help also to implement the EU Arctic policy, by improving and integrating polar observation systems in response to user requirements at local, regional and international levels.

There is a need to unlock the potential of applied digital and data technologies to support sectors covered by this Cluster in becoming more productive, competitive, sustainable, resilient, competitive, and inclusive in line with the evolving EU policy initiatives in the fields of cyber, data and digital technologies and services (e.g., European data strategy and future European data union strategy, Europe’s digital decade policy programme and the AI innovation package, including the announced apply AI strategy). This destination will contribute to the development and diffusion of innovative digital and data-based solutions to support economic sectors relevant for Cluster 6 and society at large to achieve the European Green Deal targets and objectives. The key focus in this destination will be on enhancing sustainable rural development through digital twins for rural communities, agriculture and forestry.

As stressed in the Political Guidelines for the next European Commission 2024−2029, Europe needs a radical step change in ambition and action for all skill levels and for all types of training and education for sustainable prosperity and competitiveness. The common agricultural policy (CAP) cross-cutting objective and the Pact for Skills highlight the important role that knowledge and skills play in enabling all actors relevant to this cluster to actively engage in the twin green and digital transitions. Effective Agriculture Knowledge and Innovation Systems (AKIS)[7], defined as the combined organisation and knowledge flows between persons, organisations and institutions who use and produce knowledge for agriculture and interrelated fields, are key to facilitate the sharing and uptake of knowledge, skills and innovative solutions for a more competitive, sustainable and resilient economy. In synergy with the CAP, activities under this destination will strengthen AKIS at European and national level, by increasing the knowledge flows among the AKIS actors (in particular practitioners), building a community of competent and impartial advisors and preparing the farming community to the future of agriculture through improved education and training systems. Specific attention will be also given to boosting the co-creation and use of R&I results in practice via enhanced implementation of the multi-actor approach (MAA).

Proposals responding to the topics under this destination should set out credible pathways to developing innovative governance models and tools enabling sustainability and resilience, and more specifically to one or several of the following impacts:

  • effective policy mixes and multi-level governance enable a just sustainable transition for all, engaging society at large and balancing economic, social and environmental goals, thanks to improved evidence-based knowledge, tools and science-policy interfaces;
  • competitiveness, sustainability and resilience of the economy are increased by more accessible and interoperable environmental observations as well as data technologies;
  • productivity is boosted and transformative changes required by the European Green Deal are facilitated, leaving no one behind, thanks to enhanced digitalisation and flows of existing and new knowledge, solutions and skills among actors and communities.

This destination will support R&I activities in complementarity with the European Partnership on Agriculture of Data and those that continue for the Sustainable Blue Economy Partnership. To maximise the impacts of R&I, international cooperation and the integration of social sciences and humanities (SSH) disciplines are encouraged.

To ensure coordination at European and global levels and effective dissemination of user-driven Earth intelligence solutions to inform decisions and accelerate action on global environmental challenges, support will be continued for the annual subscription of the GEO secretariat.

R&I activities supporting digital and data-based innovation under Cluster 6 will complement activities supported by Cluster 4 (Digital, Industry and Space) and the Digital Europe Programme, bringing benefits for citizens, businesses, researchers, the environment, society at large and policymakers. Synergies will be carefully considered in particular with Copernicus, the Common European Data Spaces and the Destination Earth programme.

The destination will ensure synergies with the CAP instruments aimed at strengthening AKIS in all Member States across the EU, thereby deliver on the cross-cutting objective to foster co-creation and sharing of knowledge and innovation. Strong interaction between and integration of AKIS actors is key to this end, hence the CSA type of activities will prevail. The interactive innovation model will be supported via a reinforced multi-actor approach mainstreamed across Cluster 6.

[1] Bioeconomy strategy - European Commission (europa.eu)

[2] 47554adc-dffc-411b-8cd6-b52417514cb3_en (europa.eu)

[3] https://commission.europa.eu/document/download/e6cd4328-673c-4e7a-8683-f63ffb2cf648_en?filename=Political%20Guidelines%202024-2029_EN.pdf

[4] Biodiversity strategy for 2030 - European Commission (europa.eu)

[5] Nature restoration law – Final text adopted by European Parliament and Council (consilium.europa.eu)

[6] Zero Pollution Action Plan - European Commission (europa.eu)

[7] AKIS fosters flows of knowledge and skills to support the actors in the sustainability transitions across the Cluster 6 destinations; they go beyond agriculture, farming and rural activities and cover environment, climate, biodiversity, landscape, bioeconomy, consumers and citizens, i.e., all food and bio-based systems including value chains up to the consumer.

Eligibility & Conditions

General conditions

1. Admissibility Conditions: Proposal page limit and layout

described in Annex A and Annex E of the Horizon Europe Work Programme General Annexes.

Proposal page limits and layout: described in Part B of the Application Form available in the Submission System.

2. Eligible Countries

described in Annex B of the Work Programme General Annexes.

A number of non-EU/non-Associated Countries that are not automatically eligible for funding have made specific provisions for making funding available for their participants in Horizon Europe projects. See the information in the Horizon Europe Programme Guide.

3. Other Eligible Conditions

described in Annex B of the Work Programme General Annexes.

4. Financial and operational capacity and exclusion

described in Annex C of the Work Programme General Annexes.

5a. Evaluation and award: Award criteria, scoring and thresholds

are described in Annex D of the Work Programme General Annexes.

5b. Evaluation and award: Submission and evaluation processes

are described in Annex F of the Work Programme General Annexes and the Online Manual.

5c. Evaluation and award: Indicative timeline for evaluation and grant agreement

described in Annex F of the Work Programme General Annexes.

6. Legal and financial set-up of the grants

Eligible costs will take the form of a lump sum as defined in the Decision of 7 July 2021 authorising the use of lump sum contributions under the Horizon Europe Programme – the Framework Programme for Research and Innovation (2021-2027) – and in actions under the Research and Training Programme of the European Atomic Energy Community (2021-2025). [[This decision is available on the Funding and Tenders Portal, in the reference documents section for Horizon Europe, under ‘Simplified costs decisions’ or through this link: https://ec.europa.eu/info/funding-tenders/opportunities/docs/2021-2027/horizon/guidance/ls-decision_he_en.pdf]].

described in Annex G of the Work Programme General Annexes.

Specific conditions

described in the [specific topic of the Work Programme]

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Latest Updates

Last Changed: September 25, 2025

PROPOSAL NUMBERS

Call HORIZON-CL6-2025-03-GOVERNANCE has closed on 24.09.2025.



141 proposals have been submitted.

The breakdown per topic is:

  • Topic                                                              Submitted
  • HORIZON-CL6-2025-03-GOVERNANCE-01      6
  • HORIZON-CL6-2025-03-GOVERNANCE-02      14
  • HORIZON-CL6-2025-03-GOVERNANCE-03      27
  • HORIZON-CL6-2025-03-GOVERNANCE-04      4
  • HORIZON-CL6-2025-03-GOVERNANCE-05      3
  • HORIZON-CL6-2025-03-GOVERNANCE-06      5
  • HORIZON-CL6-2025-03-GOVERNANCE-07      2
  • HORIZON-CL6-2025-03-GOVERNANCE-08      9
  • HORIZON-CL6-2025-03-GOVERNANCE-09      13
  • HORIZON-CL6-2025-03-GOVERNANCE-10      2
  • HORIZON-CL6-2025-03-GOVERNANCE-11      30
  • HORIZON-CL6-2025-03-GOVERNANCE-12      11
  • HORIZON-CL6-2025-03-GOVERNANCE-13      3
  • HORIZON-CL6-2025-03-GOVERNANCE-14      12

Evaluation results are expected to be communicated in December 2025.



Last Changed: June 10, 2025

Please note that due to a technical issue, during the first days of publication of this call, the topic page did not display the description of the corresponding destination. This problem is now solved. In addition to the information published in the topic page, you can always find a full description of Destination 7 (Innovative governance, environmental observations and digital solutions in support of the Green Deal) that is relevant for this call in the Work Programme 2025: "9. Food, Bioeconomy, Natural Resources, Agriculture and Environment”. Please select from the work programme the destination relevant to your topic and take into account the description and expected impacts of that destination for the preparation of your proposal.

Last Changed: May 12, 2025
The submission session is now available for: HORIZON-CL6-2025-03-GOVERNANCE-09, HORIZON-CL6-2025-03-GOVERNANCE-01, HORIZON-CL6-2025-03-GOVERNANCE-03, HORIZON-CL6-2025-03-GOVERNANCE-07, HORIZON-CL6-2025-03-GOVERNANCE-10, HORIZON-CL6-2025-03-GOVERNANCE-12, HORIZON-CL6-2025-03-GOVERNANCE-02, HORIZON-CL6-2025-03-GOVERNANCE-06, HORIZON-CL6-2025-03-GOVERNANCE-08, HORIZON-CL6-2025-03-GOVERNANCE-14, HORIZON-CL6-2025-03-GOVERNANCE-13, HORIZON-CL6-2025-03-GOVERNANCE-04, HORIZON-CL6-2025-03-GOVERNANCE-11, HORIZON-CL6-2025-03-GOVERNANCE-05
Improving analytical capacity and understanding of the bargaining power and interactions of farmers with the operators of the value chains | Grantalist