A “Better NFU” splinter group will be launched today. It aims to topple the leadership of the union or force it to adopt a tough stance against supermarkets driving down prices paid to farmers and drop its “cosy” relationship with Government.

The shake-up has been drawn up by Derek Mead, a West Country dairy farmer and property developer, who has been on the NFU ruling council for four years, and David Handley, the former fuel protest leader and chairman of the militant farmers’ group, Farmers for Action.

Tim Bennett, the NFU president, and his two senior office-holders face re-election for their posts in February.

In The Times today, Mr Goldsmith lambasts the union’s low profile in standing up for farmers and describes this position as “indefensible”. He suggests that the union’s “cosy, even collusive bond” with ministers and officials is linked to the prospect of honours or even knighthoods for union officers and staff.

Without commitments from Mr Bennett to change the direction of the 120,000-member union, Better NFU plans to field its own candidates for the top posts. Nominations close on January 5, and in the coming weeks the group will tour the country in the hope of finding three farmers willing to take on the union’s top team.

One of the obstacles for Better NFU is that only the 88 members of the union council can vote for its president and his deputies.

Mr Goldsmith and Mr Mead have set up an initial £50,000 fighting fund to raise the profile of farming and to pay for a series of roadshows highlighting the plight of farmers still in what Tony Blair once described as “the armlock of the supermarkets”. Mark MacGregor, a campaign manager and former chief executive at Conservative Central Office, has also been appointed. He has rolled out a new slogan. “The NFU isn ’t working”, borrowed from the old Tory billboard message of “Labour isn’t working”.

Mr Mead said last night: “Elsewhere in the world farmers have political muscle and know how to use it. As an NFU council member I have witnessed first-hand how ineffective and complacent the union has been at a time when farmers need someone to stand up on their behalf.”

He accused the union leadership of missing opportunities to fight for a better deal.

“The NFU isn’t doing its job. There are 60 million people in Britain and we must tell them about the higher quality of our food in terms of animal welfare and hygiene over imported produce. Yet supermarkets are forcing down farm prices and are paying us below the level of production.”

Farmers are paid 8.5p-9p for a pint of milk when it costs 11.5p-12p to produce. Supermarkets pay 85p-90p per pound for beef with a production cost of £1.10-£1.20 per pound. Mr Bennett said that he refused to be distracted. “I’ve got a job to do. I want to stand again as president for a second term and until that day I will do the job I am elected to do.”

Mr Goldsmith says he wants to send a message to the public that the country should support British farmers. It is not a party political agenda, but he is a Tory candidate and was one of the first outside appointments by David Cameron, as deputy head of a Quality of Life think-tank to decide on environmental policies.

No one questions Mr Goldsmith’s commitment to the environment. He worked as a researcher at the International Society for Ecology and Culture, which took over The Ecologist magazine from his uncle Teddy Goldsmith. He became letters editor and then editor on the magazine and he now runs an organic farm in Devon.

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