NoC 84/18 Official Journal of the European Communities 31. 3. 88 
Whereas, in view of the medium-term outlook, production 
levels in recent years and the foreseeable trend in demand, 
the maximum guaranteed quantity for the 1988/1989, 
1989/1990 and 1990/1991 marketing years should be fixed 
at the level shown below, 
HAS ADOPTED THIS REGULATION: 
Article 1 
For each of the marketing years 1988/1989,1989/1990 and 
1990/1991, the maximum guaranteed quantity referred to 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Articles 42 and 43 
thereof, 
Having regard to the proposal from the Commission, 
In cooperation with the European Parliament, 
Having regard to the opinion of the Economic and Social 
Committee, 
Whereas the situation of agricultural markets has changed, 
and will change further, as a result of the new direction 
imposed on the common agricultural policy by the need to 
secure a gradual drop in output in those sectors where there 
is a surplus; 
Whereas, in this context, structural policy must be used to 
help farmers adapt to this new situation and to cushion the 
effects that the new markets and prices policy is likely to 
have on agricultural incomes in particular; 
Whereas, in order that the objectives of the structural 
policy may be achieved, the common measure introduced 
by Council Regulation (EEC) No 797/85 of 12 March 1985 
on improving the efficiency of agricultural structures (1), as 
last amended by Regulation (EEC) No 1760/87 (2), should 
be adjusted and amplified; 
(!) OJ No L 93, 30. 3. 1985, p. 1. 
(2) OJ No L 167, 26. 6. 1987, p. 1. in Article 3a of Regulation (EEC) No 1491/85 is hereby 
fixed at 1 300 000 tonnes. 
Article 2 
This Regulation shall enter into force on the third day 
following its publication in the Official Journal of the 
European Communities. 
It shall apply from 1 September 1988. 
This Regulation shall be binding in its entirety and directly 
applicable in all Member States. 
Whereas arrangements for the set-aside of arable land may 
assist the various sectors, and in particular those with 
surplus production, to adjust to market requirements; 
Whereas the set-aside arrangements should cover all arable 
land since from one year to another the use made of such 
land varies with the rotation of crops; whereas, however, 
land so far used for crops not subject to a common 
organization of the market should be excluded from the 
scheme; whereas, to achieve tangible results in terms of the 
stabilization of supply, it should be stipulated that at least 
20 % of a farmer's arable land must be set aside for a period 
of at least five years, with provision for him to terminate his 
commitment after three years; 
Whereas, given the greater need to protect the environment 
and to maintain the countryside, Member States should 
take the necessary measures to keep set-aside land in good 
agricultural condition and lay down the necessary 
provisions to protect the environment and natural 
resources; 
Whereas, in the interests of making efficient use of the 
Community's farming resources, Member States should be 
allowed, for a three-year experimental period, to authorize 
land which has been set aside to be used for grazing or for 
producing lentils, chick-peas or vetches; whereas, however, 
in order not to provide incentives for products which are in Proposal for a Council Regulation (EEC) amending Regulations (EEC) No 797/85 and 
No 1760/87 as regards the set-aside of agricultural land and the extensification and 
conversion of production 
COM(88) 84 final 
(Submitted by the Commission to the Council on 25 February 1988) 
(88/C 84/11) 
31. 3. 88 Official Journal of the European Communities No C 84/19 
surplus, the use of set-aside land for grazing should be 
subject to certain conditions; whereas in both cases the 
amount of the aid should allow for the reduction in the loss 
of income; 
Whereas it should be left to the Member States to set the 
amount of the aid per hectare of land set aside, in the light 
of the income losses actually incurred and in accordance 
with criteria to be laid down within the framework of the 
detailed rules for applying these arrangements; whereas, 
on the one hand, the level of aid must be fixed so that it is 
sufficiently high to provide farmers with a real incentive to 
set aside some of their land; whereas, on the other land, the 
aid should not exceed the level necessary to offset the loss of 
income resulting from the set-aside of the land; whereas, to 
this end, a framework should be laid down for setting 
minimum and maximum amounts; 
Whereas, to provide an additional incentive to those 
farmers who set aside large areas, that is, at least 30 % of 
their arable land, such farmers should be exempted, in 
respect of a quantity of 20 tonnes, from the co-
responsibility levy provided for in Article 4 and the 
additional co-responsibility levy provided for in Article 
4b(2) of Council Regulation (EEC) No 2727/75 of 29 
October 1975 on the common organization of the market 
in cereals (l), as last amended by Regulation (EEC) No .../ 
88; 
Whereas, to take account of the different situations 
obtaining in the various regions of the Community, 
provision should be made for the modulation by tranches 
of the rate of reimbursement from the European Agricul­
tural Guidance and Guarantee Fund; 
Whereas the introduction of aid arrangements for the set-
aside of land necessitates certain changes in the aid 
arrangements for conversion and extensification as 
introduced by Regulation (EEC) No 1760/87; whereas, for 
the sake of clarity, adjustments should be made to the 
provisions currently in force without altering in any 
essential respect the existing aid arrangements for 
conversion and extensification; 
Whereas, although a scheme for land set-aside falls within 
the common measure for improving the efficiency of 
agricultural structures provided for in Regulation (EEC) 
No 797/85, its main aim is nonetheless to help in re­
establishing the balance between output and the market's 
capacity to absorb it; 
Whereas the schemes are thus intended to supplement 
measures adopted by the Council under the various market organizations in order to stabilize those markets; whereas 
it should therefore be laid down that the schemes for land 
set-aside is to be considered as a common measure within 
the meaning of Article 6(1) of Council Regulation (EEC) 
No 729/70 of 21 April 1970 on the financing of the 
common agricultural policy (2), as last amended by 
Regulation (EEC) No 3183/87 (3), and as intervention 
within the meaning of Article 3 of fhat Regulation and is 
thus to be financed in equal parts from the Guarantee and 
Guidance Sections of the European Agricultural Guidance 
and Guarantee Fund, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Regulation (EEC) No 797/85 is hereby amended as 
follows: 
1. In Article 1: 
(a) the following subparagraph is added to paragraph 1: 
'The common measure includes measures con­
sidered to be intervention within the meaning of 
Article 3 of Regulation (EEC) No 729/70'; 
(b) the following subparagraph is added to paragraph 2: 
'In accordance with Title VIII, the Guidance and 
Guarantee Sections of the European Agricultural 
Guidance and Guarantee Fund, hereinafter referred 
to as 'the Fund', shall make equal contributions to 
the measure referred to in paragraph 1 concerning 
the scheme for encouraging set-aside of land.' 
2. Title 01 is replaced by the following Titles 01, 02 
and 03: 
TITLE 01 
Set-aside of agricultural land 
Article la 
1. Member States shall introduce an aid scheme 
designed to encourage the set-aside of agricultural land. 
2. Aid for set-aside may be granted for all arable land, 
irrespective of the crops grown, provided that the land 
has in fact been cultivated for a reference period to be 
(i) OJ No L 281, 1. 11. 1975, p. 1. (2) OJ No L 94, 28. 4. 1970, p. 1. 
(3) OJ No L 304, 27. 10. 1987, p. 1. 
No C 84/20 Official Journal of the European Communities 31. 3. 88 
determined. Land growing crops not covered by a 
common market organization are excluded from the 
scheme. 
3. The agricultural land withdrawn from production 
must represent at least 20 % of the arable land on the 
farm concerned. For a period of at least five years, with 
the possibility of termination after three years, such 
land must be withdrawn from cultivation, that is: 
— left fallow with rotation possibilities, 
— afforested, or 
— used for non-agricultural purposes. 
Member States shall take the necessary measures to 
keep the land in good agricultural condition. They shall 
lay down the necessary provisions for managing the 
land so that the environment and natural resources are 
protected. 
The Member States may, on all or some of their 
territory, authorize the use of set-aside land for: 
(a) grazing, provided: 
— a maximum stocking rate per hectare, to be 
determined, is complied with; 
— fodder produced on the farm is not marketed; 
(b) growing lentils, chick-peas and vetches. 
Authorization by the Member States as provided for in 
the preceding subparagraph shall be limited to three 
years from ... By then the Commission shall have 
reported to the Council on the results of such 
authorization. 
4. Member States shall determine: 
(a) the amount of the aid to be paid per hectare of land 
set aside on the basis of the loss of income resulting 
from the land being set aside, whilst ensuring that 
the amount of the aid is sufficient to make it 
effective, on the one hand, and that is does not 
provide excessive compensation, on the other, 
together with the way in which that aid is to be paid. 
The maximum amount of aid to be paid is set at 600 
ECU per hectare, per annum, and the minimum is set 
at 100 ECU per hectare, per annum (*). 
(!) The Commission can, in exceptional cases, in accordance with 
the procedure laid down in Article 25, set a higher maximum 
amount of 700 ECU per hectare, per annum. In the case of authorization as provided for in the 
third subparagraph of paragraph 3 of Article 1(a), 
the amount of the aid shall take account of the 
reduction in the loss of income; 
(b) the reference period referred to in paragraph 2; 
(c) the undertaking to be given by the beneficiary for the 
purposes of verifying that the area farmed has in fact 
been reduced. 
5. Producers who, for the land set aside, receive aid 
within the meaning of this Title may not receive aid 
within the meaning of Titles 02 or 03 for such land. 
6. Producers who set aside at least 30 % of their 
arable land shall be exempted, in respect of a quantity of 
20 tonnes, from the co-responsibility levy referred to in 
Article 4 of Regulation (EEC) No 2727/75 and from the 
additional co-responsibility levy (2) provided for in 
Article 4b(2) of Regulation (EEC) No 2727/75. 
Detailed rules for applying this exemption shall be 
adopted in accordance with the procedure laid down in 
Articles 4a and 4b of Regulation (EEC) No 2727/75. 
7. The Commission, acting in accordance with the 
procedure laid down in Article 25, shall adopt detailed 
rules for applying this Title, specifying in particular: 
— the minimum area to be set aside, 
— in the case of authorization as provided for in the 
third subparagraph of paragraph 3, the maximum 
stocking rate per hectare of grazing and the rate by 
which the aid is to be reduced in accordance with the 
second subparagraph of paragraph 4(a), 
— the criteria to be applied by the Member States when 
fixing the aid, 
— the criteria for determining the reference period 
referred to in paragraph 2. 
TITLE 02 
Extensification of production 
Article lb 
1. Member States shall introduce an aid scheme to 
promote extensification of the production of surplus 
products. Surplus products shall be defined as products 
for which there are consistently, at Community level, no 
normal unsubsidized outlets. 
(2) Provision proposed by the Commission. 
31. 3. 88 Official Journal of the European Communities No C 84/21 
Until 31 December 1989 Member States may restrict the 
scheme to arable crops, beef and veal, and wine. 
2. Extensification shall be defined as a reduction of at 
least 20 %, for a period of at least five years, in the 
output of the product concerned without any increase in 
other surplus production capacity. However, such an 
increase shall be permitted in proportion to any increase 
in the utilized agricultural area of the farm. 
3. Member States shall determine: 
(a) the conditions for granting the aid, including those 
for reducing output of the various products. In the 
case of beef and veal, it may be stipulated that, in 
order to achieve the reduction in output referred to 
in paragraph 2, the number of livestock units must 
be reduced by at least 20 % ; in the case of wine, it 
may be stipulated that the yield per hectare must be 
reduced by at least 20 % ; 
(b)the amount of the aid, on the basis of the 
undertaking given by the beneficiary and the loses of 
income incurred, and the way in which it is to be 
paid; 
(c) the reference period for the product concerned, for 
the purposes of calculating the reduction; 
(d) the undertaking to be given by the beneficiary for the 
purposes of verifying that production has in fact 
been reduced. 
4. Where the scheme is applied in the milk sector, the 
reduction in output shall be calculated on the basis of 
the reference quantity allocated under Regulation 
(EEC) No 804/68 on the common organization of the 
market in milk and milk products (*), as last amended 
by Regulation (EEC) No 773/87 (2). Reference quan­
tities suspended pursuant to this paragraph may not be 
reused or reallocated for the duration of the suspension. 
The eligible amount of the premium paid under Council 
Regulation (EEC) No 775/87 of 16 March 1987 (3) 
temporarily withdrawing a proportion of the reference 
quantities mentioned in Article 5c(l) of Regulation 
(EEC) No 804/68 shall be deducted from the eligible 
amount of the aid. 
5. Producers who receive aid within the meaning of 
this Title may not receive aid within the meaning of 
Title 01 or 03 for the land affected by extensification. 
6. The Commission, acting in accordance with the 
procedure laid down in Article 25, shall lay down 
(!) OJ No L 48, 28. 6. 1968, p. 13. 
(2) OJ No L 78, 20. 3. 1987, p. 1. 
(3) OJ No L 78, 20. 3. 1987, p. 5. detailed rules for applying this Title, specifying in 
particular the maximum and minimum amounts of 
yearly aid per hectare. 
TITLE 03 
Conversion of production 
Article lc 
1. Member States shall introduce an aid scheme 
designed to encourage the conversion of production 
towards non-surplus products. 
2. The Council, acting on a proposal from the 
Commission in accordance with the voting procedure 
laid down in Article 43(2) of the Treaty, shall adopt a 
list of products towards which production may be 
converted and shall lay down the conditions and 
procedures for the granting of the aid. 
3. Producers who receive aid within the meaning of 
this Title may not receive aid within the meaning of 
Title 01 or 02 for the land in question. 
4. The Commission, acting in accordance with the 
procedure laid down in Article 25, shall adopt detailed 
rules for applying this Title.' 
3. In the second subparagraph of Article 20(1), 'of the 
extensification aid as established in Article la' is 
replaced by 'the aids to the set-aside of agricultural land 
and extensification established in Article la and lb'. 
4. In Article 26: 
(a) Paragraph 1 is replaced by the following: 
'1. The expenditure incurred by Member States in 
connection with the measures provided for in 
Articles lb, lc, 3 to 7, 9 to 17 and 19 to 21 shall be 
eligible for aid from the Guidance Section of the 
Fund. The expenditure incurred by Member States 
in connection with the measures provided for in 
Articles la shall be eligible for aid from the 
Guarantee and Guidance Section of the Fund.' 
(b) In paragraph 2, the first sentence is replaced by the 
following: 
'The Fund shall reimburse to Member States 25 % of 
their eligible expenditure on the measures provided 
for in Article lb, lc, 3 to 7, 13 to 17, and 19 to 21.' 
(c) The following subparagraph is added to para­
graph 2: 
'The fund shall reimburse to Member States the 
eligible expenditure on the measures provided for in 
Article la. The following rates shall apply: 
No C 84/22 Official Journal of the European Communities 31. 3. 88 
— 50 % for that portion of the aid which does not 
exceed 200 ECU per hectare, per annum; 
25 % for that portion of the aid between 200 
ECU and 400 ECU per hectare, per annum; 
15 % for that portion of the aid between 400 
ECU and 600 ECU per hectare, per annum; 
— and in the case of authorization as provided for in 
the third subparagraph of paragraph 3: 
50 % for that portion of the aid which does not 
exceed 100 ECU per hectare, per annum; 
25 % for that portion of the aid between 100 
ECU and 200 ECU per hectare, per annum; 
15 % for that portion of the aid between 200 
ECU and 300 ECU per hectare, per annum. 
5. In Article 32(1), the following subparagraph is inserted 
after the first subparagraph: 
'Where Titles 01, 02 and 03 are concerned, Member 
States shall bring into force the measures necessary to 
comply with this Regulation before ... 1988 (1).' 
6. The following Article 32a is inserted: 
(!) Three months from the entry into force of the proposed 
Regulation. ' 1. On receipt of a reasoned application, the Commis­
sion, acting in accordance with the procedure laid down 
in Article 5, may authorize a Member State not to apply 
the aid schemes provided for in Titles 01, 02 and 03 in 
those regions or areas where, because of natural 
conditions or the threat of depopulation, production 
should not be reduced. In the case of Spain the 
Commission may also take account of the particular 
socio-economic situations of certain regions or areas. 
The Commission, acting in accordance with the 
procedure laid down in Article 25, shall adopt the 
criteria for defining the regions or areas referred to in 
the first subparagraph. 
2. Portugal is hereby authorized not to apply the 
schemes referred to in paragraph 1 until 31 December 
1995.' 
Article 2 
Articles 5 and 6 of Regulation (EEC) No 1760/87 are 
hereby repealed. 
Article 3 
This Regulation shall enter into force on the third day 
following its publication in the Official Journal of the 
European Communities. 
This Regulation shall be binding in its entirety and directly 
applicable in all Member States. 
Proposal for a Council Regulation (EEC) amending Regulation (EEC) No 804/68 
on the common organization of the market in milk and milk products 
COM(88) 84 final 
(Submitted by the Commission to the Council on 25 February 1 
(88/C 84/12) 
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, 
In cooperation with the European Parliament, 
Whereas Article 5c of Council Regulation (EEC) No 804/ 
68 (*), as last amended by Regulation (EEC) No .../88, introduced for a period of five years, with the aim of 
restoring equilibrium on the milk market, an arrangement 
for an additional levy on quantities of milk delivered or 
purchased exceeding a reference quantity established in 
respect of the milk producer or purchaser whereas it is now 
clear that the results obtained from these arrangements will 
not suffice to achieve the objective of adaptation of supply 
to demand by the end of the five-year period; whereas the 
duration of the additional-levy arrangement must now be 
extended to eight 12-month periods; 
(!) OJ No L 148, 28. 6. 1968, p. 13. Whereas the guaranteed overall quantities for the sixth, 
seventh and eight periods of application of the additional-