1972L0160 — EN — 28.07.1973 — 001.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COUNCILDIRECTIVE
of17April1972
concerning measures to encourage the cessation of farming and the reallocation of utilized agri-
culturalareaforthepurposesofstructuralimprovement
(72/160/EEC)
(OJ L 96, 23.4.1972, p. 9)
Amended by:
Official Journal
No page date
►M1Council Directive 73/210/EEC of 24 July 1973 L 207 48 28.7.1973
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COUNCILDIRECTIVE
of17April1972
concerningmeasurestoencouragethecessationoffarmingandthe
reallocation of utilized agricultural area for the purposes of struc-
turalimprovement
(72/160/EEC)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic
Community, and in particular Article 43 thereof;
Having regard to the proposal from the Commission;Having regard to the Opinion of the European Parliament;Whereasthe objectivesof the common agricultural policy s et out in
Article 39 (1) (a) and (b) of the Treaty can only be achieved througha reform of agricultural structures;
Whereas such structural reform is a basic factor in the development of
the common agricultural policy; whereas it should therefore be basedon a Community concept and on Community criteria;
Whereas, because of the diversity of their causes, nature and gravity,
structural problems in agriculture may require solutions which vary
according to region and are capable of adjustment over a period of
time; whereas such solutions must contribute to the overall economicand social development of each region concerned; whereas the bestresults can be achieved if, acting on the basis of Community conceptsand criteria, Member Statesimplement the common meas uresindividu-
ally through their own legislative and administrative procedures, and if,
in addition, they themselves determine, on the basis of conditions laiddown by the Community, the extent to which such measures should beintensified in or concentrated on certain regions;
Whereas, in the first place, in order to improve agricultural incomes the
formation of farms of appropriate size and structure should be encour-aged; whereasthe formation of s uch farmsrequiresthat vacant land beavailable;
Whereas, in order to achieve this objective, it is necessary to grant aids
to persons ceasing farming and making available for the purposes of
structural improvement the land which they previously farmed;
Whereasthe granting to farmersof a s ufficiently attractive premium,
calculated by reference to the area of land released, constitutes asuitable incentive to land mobility;
Whereas, however, farmers who are over fifty-five years of age gener-
ally encounter serious difficulties in attempting to take up a newoccupation and whereas for this reason they should until the age ofsixty-five receive an annuity which will enable them to leave agricul-ture;
Whereas Member States should be allowed to debar farmers practising
farming astheir main occupation from all or part of the premium, in
particular where such persons are receiving an annuity;
Whereas the closing down of farm businesses employing elderly family
and hired workersengaged in agriculture on a permanent bas ismaycause such persons to lose their jobs and their incomes;
Whereas the objectives pursued would not be achieved if the persons
benefiting from the measures continued to produce marketable quanti-ties of agricultural produce; whereas it is desirable, however, that suchpersons should if they so wish still be able to make free use of alimited area of land;
Whereas it is not possible to insist that in all cases the whole area of
land released should be reallocated in such a way as to contribute to1972L0160 — EN — 28.07.1973 — 001.001 — 2
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structural improvement, but whereas, nevertheless, the proportion of
land to be so reallocated should be fixed at an adequate level;
Whereas where farming is discontinued the opportunity should be taken
not only to increase the size of farms suitable for modernization but
also to withdraw certain areas of land from agricultural use, in parti-cular by reallocating them for the purposes of afforestation, recreationor public health;
Whereas the pursuit of these objectives may be facilitated through the
intervention of land agenciesappointed by Member States , to which
farmers may offer their land for subsequent reallocation for the
purposes of structural reform;
Whereas the proposed measures are in the Community's interest and
are intended to achieve the objectivess et out in Article 39 (1) (a) ofthe Treaty, including the structural changes necessary for the properfunctioning of the common market; whereasthey therefore cons titute
common measures within the meaning of Article 6 of Council Regula-
tion (EEC) No 729/70 of 21 April 1970 on the financing of thecommon agricultural policy (
1);
Whereas, however, while the premium calculated by reference to the
area of agricultural land released does not require Community finan-cing, the payment of annuitiesto pers onsaged between fifty-five and
sixty-five is of particular interest to the Community when applied in
agricultural regionswhere unfavourable conditionsexis t and wheremeasures to encourage the cessation of farming are not yet in opera-tion;
Whereas, inasmuch as the Community contributes to the financing of
the common measures, it must be in a position to ascertain that the
provisions adopted by Member States for the implementation of thosemeasures will contribute towards achievement of the objectives thereof;whereas, to this end, provision should be made for a procedure estab-lishing close cooperation between Member States and the Commissionwithin the Standing Committee on Agricultural Structure set up by
Article 1 of the Council Decision of 4 December 1962 on the coordina-
tion of policieson agricultural s tructure, (
2) and involving, asregards
financial aspects, consultation with the EAGGF Committee referred toin Articles11 to 15 of Regulation (EEC) No 729/70;
Whereasit isdes irable that the European Parliament and the Council
be able, on the basis of a report submitted by the Commission, to
examine annually the effectsof the national and Community meas ures
taken, so that they may assess the need to supplement or adapt thesystem introduced hereunder;
Whereas after the measures to encourage the cessation of farming have
been in operation for a certain period it should be possible for them tobe re-examined by the Council, without prejudice, however, to commit-
mentsentered into during that period;
HAS ADOPTED THIS DIRECTIVE:
TITLE I
Measures to encourage the cessation of farming and the realloca-
tion for the purposes of structural improvement of the
agricultural areathusreleased
Article 1
1. Member States shall introduce a series of measures to encourage
the cessation of farming and the reallocation for the purposes of struc-tural improvement of the utilized agricultural area thusreleas ed.1972L0160 — EN — 28.07.1973 — 001.001 — 3
(1) OJ No L 94, 28.4.1970, p. 13.
(2) OJ No 136, 17.12.1962, p. 2892/62.
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2. Member Statesmay, acting in accordance with the general provi-
sions to be adopted hereafter by the Council under the procedure laiddown in Article 43 of the Treaty:
— vary according to region the amount of the financial incentives
provided for in Article 2;
— refrain from applying in certain regions all or some of the measures
provided for in Article 2.
Article 2
1. The measures provided for in Article 1 shall comprise:
(a) the grant, subject to the conditions as to eligibility for assistance
laid down below, of an annuity to farmersapplying therefor aged
between fifty-five and sixty-five who practice farming as theirmain occupation.
Member Statesmay:— substitute for such annuity an equivalent lump sum payment;
— on the ground of age or meansof the pros pective beneficiary,
vary the amount of or refuse to grant the annuity.
Annuities shall be eligible for assistance from the Guidance Section
of the EAGGF, up to the amount of 900 unitsof account per yearin the case of a married farmer or 600 units of account in the caseof a single farmer.
However, during the first five years following implementation of
this Directive, the only expenditure eligible shall be that in respect
of:
— farmerswho practis e farming astheir main occupation and who
are aged between sixty and sixty-five, and that in respect ofpersons of like age coming within subparagraph (c);
— farmerswho practis e farming astheir main occupation and who
are at least fifty-five years old, where:
(i) in Member Stateswhich, on the date when thisDirective
entersinto force, have a working agricultural populationof more than 15% of their total working population, thearea of the farm concerned doesnot exceed 15 hectares ; or
(ii) farming hasbecome the main occupation of s uch farmers
through the decease of their spouse; or
(iii) such farmers are more than 50% disabled.
An annuity shall not be eligible for assistance if it is granted to a
farmer at a time when there isbeing implemented in res pect of hisfarm a development plan asreferred to in Article 4 of the CouncilDirective of 17 April 1972 (
1) on the modernization of farms.
(b) the grant of a premium, which shall not be eligible for assistance
and shall be calculated by reference to the utilized agricultural
area released, to farmers applying therefor;
Member Statesmay:— in the light of the objectives set in pursuance of the Directive
on the modernization of farms, or on the ground of the age ormeansof the pros pective beneficiary, vary the amount of orrefuse to grant the premium;
— pay the premium in instalments;
— refuse to grant all or part of the premium to any person
receiving an annuity asprovided for in s ubparagraph (a);
(c) the grant of annuitiesasprovided for in s ubparagraph (a) to perma-
nent hired or family workersapplying therefor aged between fifty-five and sixty-five who undertake to cease working in agricultureand who:
— are employed on farmson which the farmer benefitsfrom any
measure provided for under (a) or (b);1972L0160 — EN — 28.07.1973 — 001.001 — 4
(1) OJ No L 96, 23.4.1972, p. 1.
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— are covered by the social security system; and
— satisfy the conditions laid down in Article 3 (c).
Member Statesmay:— substitute for such annuity an equivalent lump-sum payment;
— on the ground of the age or meansof the pros pective benefi-
ciary, vary the amount of or refuse to grant the annuity.
As regards grants under this head, assistance from the Guidance
Section of the EAGGF shall for each farm ceasing business be inrespect of a single annuity only and in an amount not exceeding600 unitsof account per annum.
2. Grants as provided for in paragraph 1 shall be subject to the
condition that the recipient cease working in agriculture and that,where the recipient isa farmer, the utilized agricultural area farmedby him be reallocated in accordance with Article 5.
3. Member States shall take all measures necessary to ensure that
the social security benefits which recipients of annuities or premiumsasprovided for in paragraph 1 would have received had they notceased to farm are not reduced, and that the contributions made bythem to social security funds are not unduly increased.
Where the recipient of an annuity asprovided for in paragraph 1 (c) is
receiving unemployment benefit, Member Statesmay reduce theannuity accordingly.
Article 3
Member Statess hall define:
(a) what ismeant by ‘farmer’. For the purpos esof thisDirective there
may in respect of any utilized area of agricultural land be onefarmer only;
(b) what is meant for the purposes of this Directive by ‘practising
farming as a main occupation’. Definitions shall at least includethe following conditions in respect of the person concerned:
— he must have worked in agriculture for a period of at least five
years before submitting an application for an annuity. Persons
to whom Article 2 (1) (a) (ii) appliess hall not be required to
satisfy this condition if their spouse satisfied it;
— he must during that period have devoted at least 50% of his
working hoursto work in agriculture;
— he must during that period have derived at least 50% of his
earned income from work in agriculture;
(c) what ismeant for the purpos esof thisDirective by the terms
‘permanent hired worker’ and ‘permanent family worker’. Defini-tions shall at least include the following conditions in respect ofthe person concerned:
— they must have worked in agriculture for a period of at least
five yearsbefore s ubmitting an application for an annuity and
must during this period have devoted at least 50% of their
working hoursto work in agriculture;
— they must have worked in agriculture on the farm ceasing busi-
ness for at least the last two years preceding submission of theirapplication;
(d) the conditionsunder which farming s hall be deemed to have
ceased, and in particular Member States shall specify the maximum
area of land which may be retained by a person benefiting from the
financial incentive provided for in Article 2 (a) and (b), given thatthe arrangementsmade mus t, asa minimum, guarantee that allagricultural activity leading to the marketing of produce will cease.
Article 4
Member States shall make provision debarring from the grant of the
annuity provided for in Article 2 (1) (a) any farmer whose farm hasdecreased significantly in area over the last few years preceding his1972L0160 — EN — 28.07.1973 — 001.001 — 5
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application, save where this has been due to expropriation or to acqui-
sition in the public interest.
Article 5
1. At least 85% of the utilized agricultural area released by persons
benefiting under the measures provided for in Article 2 (1) (a) and (b)
must either:
(a) be leased for a minimum period of twelve years, or convey in abso-
lute ownership or by way of emphyteutic lease, to farmers
benefiting from incentivesgiven under Article 8 of the Directiveon the modernization of farms; or
(b) be withdrawn from agricultural use permanently, in particular by
being reallocated for afforestation, recreational activities, publichealth or other public purposes.
2. However, if no farmersasreferred to in paragraph 1 (a) can be
found, the utilized agricultural area released may, on conditions to belaid down by Member States, be reallocated to other farms.
3. The utilized agricultural area released may also be offered, either
on lease for at least twelve years or for sale, to land agencies appointedby Member Statesfor the purpos e of reallocation in accordance with
paragraph 1. These agencies may lay down conditions for the
temporary use of such land.
TITLE II
Financialandgeneral provisions
Article 6
The measures provided for in this Directive constitute common
measures within the meaning of Article 6 (1) of Council Regulation
(EEC) No 729/70.
Article 7
1. The estimated time required for carrying out the common
measures is ten years.
Four years after this Directive takes effect, the aforesaid measures shall
be re-examined by the Council upon a proposal from the Commission,but without prejudice to commitments as to assistance entered intoduring that period.
2. The total contribution by the EAGGF to the cost of the common
measures is estimated at 288 million units of account for the first fiveyears.
3. The provisions of Article 6 (5) of Regulation (EEC) No 729/70
shall apply to this Directive.
Article 8
1. Member States shall forward to the Commission:
— drafts of all laws, regulations or administrative provisions which
they propose to adopt in pursuance of this Directive;
— the textsof any provis ionseffectively implementing thisDirective
existing prior to the date on which it takes effect.
2. When submitting, pursuant to paragraph 1, drafts of laws, regula-
tions or administrative provisions or the texts of existing provisions,
Member States shall also submit an explanatory memorandum showingthe relationship at regional level between the measure in question andeconomic and structural conditions.
3. The Commission shall examine drafts forwarded in accordance
with the first indent of paragraph 1 for the purpose of determiningwhether, having regard to the objectivesof thisDirective and to theneed for a proper connection between the various measures, such drafts1972L0160 — EN — 28.07.1973 — 001.001 — 6
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comply with the Directive, and thus satisfy the conditions for financial
contribution by the Community to common measures within themeaning of Article 6. Within two monthsfollowing receipt of any draft
the Commission shall, after consulting the Standing Committee on
Agriculture Structure, issue an opinion thereon.
4. Member Statess hall, on the adoption of any law, regulation or
administrative provision as referred to in paragraph 3, forward the textthereof to the Commission.
Article 9
1. With regard to provisions the texts of which are forwarded
pursuant to the second indent of Article 8 (1) or to Article 8 (4), theCommission shall examine whether, having regard to the objectives of
thisDirective and to the need for a proper connection between the
various measures, such provisions satisfy the conditions for financialcontribution by the Community to common measures within themeaning of Article 6. Within two monthsfollowing receipt of anytext, the Commission representative shall, after consulting the EAGGF
Committee on the financial aspects of the provision, submit a draft
decision thereon to the Standing Committee on Agricultural Structure.
2. The Committee shall issue its opinion within a time limit to be
fixed by the Chairman according to the urgency of the mattersfor
examination. It shall decide by a majority of twelve votes, the votesof Member Statesbeing weighted aslaid down in Article 148 (2) ofthe Treaty. The Chairman shall not vote.
3. The Commission shall adopt the decision. However, if the deci-
sion is not in accordance with the opinion issued by the Committee, itshall immediately be communicated to the Council. In that event, theCommission may defer application of the decision for a period notexceeding one month from the date of itscommunication.
The Council, voting asprovided in Article 43 (2) of the Treaty, may
within that month adopt a different decision.
Article 10
1. (a) The expenditure incurred by Member Statesfor the purpos esof
any measure taken under Article 2 (1) (a) or (c) shall be eligiblefor assistance from the Guidance Section of the EAGGF, up tothe amounts hereinbefore specified, and in so far as the utilizedagricultural areasreleas ed have been reallocated in accordancewith Article 5 (1) or (3).
However, where Member Statesact under Article 5 (3), the
eligible expenditure will only be reimbursed upon proof that
the utilized agricultural area released has been reallocated forone of the purposes provided for in Article 5 (1).
(b) If the annuity provided for in Article 2 (1) (a) isgranted by a
Member State, in accordance with the requirementsfor s uch agrant, to farmersof an age lower than the relevant minimum
age prescribed by that Article, the expenditure in respect thereof
shall become eligible for assistance, up to the amounts specified,asfrom the date on which the recipient reachess uch relevantminimum age.
2. The Guidance Section of the EAGGF shall refund to Member
States 25% of the expenditure eligible for assistance.
However, in agricultural regionswhere unfavourable conditionsexis t
and where, at the date on which thisDirective takeseffect, meas uresto encourage the cessation of farming are not yet in operation, theGuidance Section of the EAGGF shall refund 65% of the eligibleexpenditure.1972L0160 — EN — 28.07.1973 — 001.001 — 7
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3. For the purposes of the preceding paragraph, ‘agricultural regions
where unfavourable conditionsexis t’ meansregionswhere thefollowing two conditionsprevail at the s ame time:
— the percentage of the working population engaged in agriculture is
higher than the Community average;
— the gross domestic product per capita at factor cost is lower than
the Community average.
The Council, acting on a proposal from the Commission and voting as
provided in Article 43 (2) of the Treaty, shall draw up a list of such
regions.
4. Detailed rulesfor applying paragraph 2 s hall be adopted in accor-
dance with the procedure laid down in Article 13 of CouncilRegulation (EEC) No 729/70.
Article 11
1. Measures taken by Member States shall not be eligible to benefit
from financial contribution by the Community unless a favourabledecision under Article 9 has been given in respect of the provisionsrelating thereto.
2. Financial contribution by the Community shall be only in respect
of eligible expenditure arising in connection with aids granted in pursu-ance of decisions taken after the date on which this Directive takeseffect.
Article 12
1. Applications for reimbursement shall relate to expenditure
incurred by Member States in the course of a calendar year and shallbe submitted to the Commission before 1 July of the following year.
2. The granting of aid from the Fund shall be decided upon in accor-
dance with Article 7 (1) of Regulation (EEC) No 729/70.
3. Payments on account may be authorized by the Commission.
4. Detailed rulesfor applying thisArticle s hall be adopted according
to the procedure laid down in Article 13 of Regulation (EEC) No 729/70.
Article 13
1. Without prejudice to Article 8 of Regulation (EEC) No 729/70,
Member States shall, acting in accordance with their laws, regulationsor administrative provisions, take all necessary steps, in the event ofnon-compliance with the condition laid down in Article 2 (2), torecover sums paid out. They shall inform the Commission of the steps
taken and shall in particular regularly notify it of the state of adminis-
trative or judicial proceedingsrelating thereto.
2. The sums recovered shall be returned to the disbursing authorities
or agencies, which shall credit the fund with such proportion of theexpenditure ascorres pondsto the proportion of Community financing.
3. Financial losses resulting from the non-recovery of payments
shall be apportioned as between the Community and Member Statesin proportion to their respective contributions.
4. Detailed rulesfor applying thisArticle s hall be adopted in accor-
dance with the procedure laid down in Article 13 of Regulation (EEC)No 729/70.
Article 14
ThisDirective s hall not affect the power of Member Statesto take, in
respect of matters coming within the scope of this Directive, additionalmeasures of aid the terms or conditions of which differ from those laiddown herein, or the amountsof which exceed the upper limitss etherein, provided that such measures are in accordance with Articles92 to 94 of the Treaty.1972L0160 — EN — 28.07.1973 — 001.001 — 8
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Article 15
1. Before 1 August in each year the national and Community
measures in force relating to this Directive shall be examined in the
context of an annual report which the Commission shall submit to the
European Parliament and to the Council, and for which Member Statesshall send all necessary documentation to the Commission.
The Council shall evaluate the effects of such measures, taking into
consideration the rate of structural development required to achievethe objectivesof the common agricultural policy, their effect on theproduction objectivesof the Community and on the harmoniousdevel-
opment of the regionsof the Community and the financial implications
of the measures in question.
If necessary, it shall, acting under the procedure laid down in Article
43 of the Treaty, adopt appropriate provisions.
Article 16
Member Statesmay lay down additional conditionsasregardsthe
implementation of the measures of aid provided for in this Directive.
Article 17
The Member States shall bring into force the measures necessary to
comply herewith not later than 31 December 1973.
Article 18
This Directive is addressed to the Member States.1972L0160 — EN — 28.07.1973 — 001.001 — 9
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