Council Resolution

of 25 May 1971

on the new guidelines for the common agricultural policy

THE COUNCIL OF THE EUROPEAN COMMUNITIES HAS AGREED AS FOLLOWS:

I. PRICE POLICY MEASURES FOR AGRICULTURAL PRODUCTS

CEREALS

—common wheat: | an increase in the target price from 106·25 to 109·44 u.a. per metric ton (i.e. plus 3·19 u.a. per metric ton — or 3%) an increase in the basic intervention price from 98·75 to 100·72 u.a. per metric ton (i.e. plus 1·97 u.a. per metric ton — or 2%) |

—durum wheat: | an increase in the target price from 125·00 to 127·50 u.a. per metric ton (i.e. plus 2·50 u.a. per metric ton — or 2%) an increase in the basic intervention price from 117·50 to 119·85 u.a. per metric ton (i.e. plus 2·35 u.a. per metric ton — 2%) an increase in the guaranteed minimum price from 145 to 147·90 u.a. per metric ton (i.e. plus 2·90 u.a. per metric ton — or 2%) |

—rye: | an increase in the target price from 97·50 to 100·42 u.a. per metric ton (i.e. plus 2·92 u.a. per metric ton — or 3%) an increase in the basic intervention price from 91 to 92·82 u.a. per metric ton (i.e. plus 1·82 u.a. per metric ton — or 2%) |

The special intervention premium for rye of bread making quality is renewed for the 1971/72 marketing year. |

—barley: | an increase in the target price from 95·44 to 100·21 u.a. per metric ton (i.e. plus 4·77 u.a. per metric ton — or 5%) an increase in the basic intervention price from 88·48 to 92·02 u.a. per metric ton (i.e. plus 3·54 u.a. per metric ton — or 4%) |

Special measures will be introduced to encourage the production of brewer's barley. |

—maize: | a 1% increase in the target price |

—for all cereals: | an 8% increase in the monthly increases currency in force retention of the intervention periods of the preceding marketing year. |

RICE

- an increase of 1·23 u.a./100 kg or 0·73 u.a./100 kg in the target price for husked rice to take into account the increase in the cost of processing paddy rice into husked rice and 0·50 u.a. (0·40 u.a./100 kg adjusted by the coefficient for conversion of paddy rice into husked rice: 1·25) to help the market to operate more smoothly

- maintenance of the intervention price for paddy rice at its present level, i.e. 12·50 u.a./100 kg

- an 8% increase in the present monthly increases

- retention of the intervention period of the preceding marketing year.

MILK

- an increase in the target price from 10·30 to 10·90 u.a./100 kg (i.e. 6%)

- in order to bring about this increase:

- the intervention price for butter will be raised from 173·50 to 178 u.a./100 kg

- the intervention price for skimmed-milk powder will be raised from 41·25 to 47 u.a./100 kg

- the intervention price will be raised:

for Grana-Padano cheese:

- of 30 to 60 days maturity from 124·80 to 132·05 u.a./100 kg

- of 6 months maturity from 148·80 to 156·60 u.a./100 kg

- for Parmigiano Reggiano cheese from 163·20 to 171 u.a./100 kg

- the corresponding threshold prices will be increased

- the amount of aid for liquid skimmed milk will be fixed at 1·65 u.a./100 kg

- the aid for skimmed-milk powder for animal feedingstuffs will be increased from 8·25 to 13 u.a./100 kg.

BEEF AND VEAL

- an increase of 6% in the guide price for adult bovine animals for the 1971/72 marketing year and of 4% for the 1972/73 marketing year, i.e. 72·00 u.a./100 kg for the 1971/72 marketing year and 75 u.a./100 kg for the 1972/73 marketing year

- an increase of 3% in the guide price for calves for the 1971/72 marketing year, i.e. 93·65 u.a./100 kg

SUGAR

- in general, reduction of the guaranteed quantity to the level of foreseeable consumption, without, however, going below the total basic quantities

- adoption of the Commission proposals published in Official Journal No C 27 of 25 March 1971 and amended as follows:

- retention of the system laid down in Article 31 of Regulation No 1009/67/EEC is from the 1972/73 marketing year and fixing of the special maximum quota for the period from 1 July 1971 to 30 June 1973 at 230% of the basic quota;

- to allow for the increase in processing costs, in particular energy costs, additional 0·50 u.a./100 kg adjustment in prices for white sugar, which gives an intervention price of 22·61 u.a./100 kg for the region having the greatest surplus:

- fixing of the maximum amount of the production levy at 9·10 u.a./100 kg and of the beet growers' share at 59·12%;

- maintenance of the 5% difference between the target price and the intervention price;

- national aid granted to beet producers in Italy raised from 1·10 u.a. to 1·80 u.a. per metric ton of beet.

OIL SEEDS

- 8% increase in the monthly increases

- maintenance of the status quo as regards:

- target prices,

- basic intervention prices,

- derived intervention prices;

- supplementary aid for colza and rape seed processed in Italy will be retained for the 1971/72 marketing year

OTHER PRODUCTS

- maintenance of the prices of other agricultural products

II. COMMON STRUCTURAL MEASURES

In order to achieve the objectives set out in Article 39 of the Treaty, the Council agrees to undertake common measures within the meaning of Article 6 of Council Regulation (EEC) No 729/70 on the financing of the common agricultural policy. These measures will be based on Community criteria. They will be implemented by means of measures to be taken by Member States and laid down by law, Regulation or administrative action.

The Member States may, under the measures adopted at Community level:

- vary according to region the amount of the financial incentives provided for in those measures,

- refrain from applying, in certain of their regions, all or some of the measures provided for.

Common measures will comprise:

I. Measures in favour of persons wishing to leave agriculture

(a) With a view to promoting structural improvement and the transfer of land, Member States will introduce a system of aid to farmers, whether or not owner-occupiers, on condition that they leave agriculture and allow the land they have been farming to be either handed over to farms in the process of modernization or made available for non-agricultural purposes.

This system of aid shall include:

(i) a non-eligible premium calculated according to the area of farmland vacated;

(ii) and/or, for persons aged between 55 and 65 engaged mainly in farming and, in certain circumstances, for workers retiring at the same age after working with them, an annual allowance of an eligible amount of 600 u.a. Member States may be authorized to replace this allowance by a lump sum payment;

(b) Member States will introduce a system of aid to farmers who wish to engage in an activity other than agriculture. This system will be include aid for vocational retraining and a guaranteed income for the period involved. The renewed Social Fund will contribute to financing vocational re-training measures.

(c) The Council recommends that Member States introduce a system of educational grants for the children of farmers of reduced means.

2. Measures in favour of persons remaining in agriculture

Member States will set up a system of selective aid to those persons engaged mainly in farming who have sufficient professional competence and whose farm development plans have been approved.

Submission of a development plan shall not be subject to the condition that the farm be of a certain initial minimum size. The plan should show that, at its completion at the end of a six year period which may be extended in certain regions, the farm under modernization will be capable of providing, generally for one or two labour units, an earned income comparable with that obtained in non-agricultural activities in the region.

Incentives will consist of:

- placing at the disposal of such farms, by priority, farmland made available under the common measure for persons leaving agriculture;

- financial aid, in the form of a reduced rate of interest, towards the investment required to carry out the development plan in terms of Community production aims, but excluding land purchase. The reduction shall not exceed 5% and the rate of interest paid by the beneficiary may not be less than 3%;

- Member States may pay the equivalent of this aid in the form of a capital subsidy or make provision for deferred repayments;

- security for the loans contracted, to supplement insufficient real property and personal guarantees;

It will, in exceptional circumstances, be possible to provide for certain regions a degressive income allowance, to be borne by Member States, for a period not exceeding the duration of the development plan.

The Council recommends that Member States take the necessary legislative measures to permit long-term leases.

3. Measures to promote the information and vocational training of farmers

Member States will set up a system to promote:

- the introduction or improvement of services for providing those working in agriculture with the information and advice they may need in order to plan their professional future; this system will also involve the training and further education of specialized socio-economic consultants:

- vocational training and further education for those working in agriculture who intend to remain in this sector;

- the keeping of farm accounts.

4. Measures for improving the marketing of agricultural products

(a) Member States will set up a system of aid in favour of those producer groups and their federations which apply common production and marketing rules. This system shall consist of:

- a launching aid:

- aid for the investment needed to apply common production and marketing rules, in the form of a reduction of no more than 5% in the interest rate; the rate of interest paid by the beneficiary may not be less than 3%;

Member States may pay the equivalent of this aid in the form of a capital subsidy:

- security for the loans contracted to supplement insufficient real property guarantees.

(b) The Commission is invited to continue its study of problems arising in connection with the marketing and processing of agricultural products and to submit proposals with a view to attaining the relevant objectives set out in Article 39 of the Treaty.

III. MEASURES TO BE APPLIED AT A LATER STAGE

Member States will take all measures likely to prevent any extension of the areas used for agricultural purposes.

The Council, acting on a proposal from the Commission, will adopt measures to encourage afforestation schemes within the framework of regional afforestation and leisure programmes.

IV. EAGGF FINANCIAL CONTRIBUTION

The Community's financial contribution to the cost of implementing common measures will be equal to 25% of eligible expenses.

In respect of measures in favour of persons wishing to leave agriculture (see II § I (a) ii), this rate will be 65% in backward agricultural regions where this type of measures has not yet been applied.

After a period of four years the procedure for this measure will be reviewed by the Council, without prejudice to eligibility commitments entered into during this period.

The Council, acting on a proposal from the Commission, shall draw up criteria for defining backward agricultural regions.

The EAGGF may grant advance payments on account.

V. FINANCING OF THE COMMON AGRICULTURAL POLICY

The allocations provided for in Article 6 of Regulation (EEC) No 729/70 and unused allocations left over from previous financial years shall be assigned to the implementation of common measures, without prejudicing the application of that Article.

VI. AGRICULTURAL AID POLICY

A. As soon as Community provisions on common measures have been adopted, certain types of aid which would run counter to the aims of those measures will be prohibited.

B. The Council notes the Commission decision to review all systems of aid within the meaning of Article 93 of the Treaty in accordance with the following guidelines:

(a) harmonization of investment aids;

(b) elimination of all other aids affecting production costs:

(c) formulation of common criteria to be applied when general systems of aid are reviewed in the light of the direction and development of the common agricultural policy.

The Commission decisions will be taken according to the following timetable:

- fruit, hot house produce, vegetables, sugar: 1 January 1972

- milk, beef and veal, pigmeat, eggs and poultry: 1 July 1972

- cereals, wine, tobacco, fisheries products: 1 January 1973

- other products: 1 July 1973

C. Member States will be able, without receiving any financial subsidy from the Community, to grant transitional aid to farmers under 55 who are not receiving investment aid under common measures. Such aid may be granted for a period of up to five years.

VII. CONCERTED DEVELOPMENT OF THE COMMON AGRICULTURAL POLICY AND OF THE OTHER COMMUNITY POLICIES

Rapid progress must be made in developing other Community policies, especially as regards economic and monetary union, regional policy and social policy. Such progress would contribute substantially to bringing about agricultural reform.

In particular, the Council is agreed that Member States and the Community should introduce a system of regional development incentive to promote the creation of jobs particularly in areas with a large surplus active farming population. As regards social policy, the new European Social Fund will have to have sufficient funds to contribute to the vocational retraining of farmers wishing to engage in another occupation.

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