29.10.86 Official Journal of the European Communities No C 273/3 
II 
(Preparatory Acts) 
COMMISSION 
Proposal for a Council Regulation amending Regulations (EEC) No 797/85, (EEC) No 270/79, 
(EEC) No 1360/78 and (EEC) No 355/77 as regards agricultural structures, the adjustment of 
agriculture to the new market situation and the preservation of the countryside 
COM(86) 199 final 2 
(Submitted by the Commission to the Council on 22 April 1986) 
(86/C 273/03) 
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, 
Having regard to the opinion of the European Par­
liament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas the situation of the agricultural markets has 
changed and will change further as a result of the re­
orientation of the common agricultural policy caused by 
the need to secure a gradual drop in output in those 
sectors where surpluses are now being produced; 
Whereas the policy on structures 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, so that the objectives of the policy on 
structures can be realized, certain commom measures 
covered by Article 6 of Council Regulation (EEC) No 
729/70 of 21 April 1970 on the financing of the 
common agricultural policy ('), as last amended by 
Regulation (EEC) No 3769/85 (2), introduced in order 
to achieve the objectives of Articles 39 of the Treaty, 
should be adjusted; 
Whereas in particular the common measure introduced 
by Council Regulation (EEC) No 797/85 of 12 March 1985 on improving the efficieny of agricultural struc­
tures (3), as last amended by Regulation (EEC) No . .., 
should be adjusted and amplified; 
Whereas a 'prepension' scheme to encourage early 
retirement from farming by persons over the age of 55 
years who would take farmed land out of production or 
transfer it to a young successor related in the first degree 
will not only provide farmers who are no longer in a 
position to adjust to the new situation with an alternative 
source of income but would also help reduce production 
potential and rejuvenate the farming population, so faci­
litating the adjustments and reorientations which must be 
made; 
Whereas such a prepension scheme must enable farmers 
more than 55 years old, who generally find it very 
difficult to convert to other occupations, to leave 
farming and must therefore provide them with an 
adequate annual allowance; 
Whereas in cases where the farmland is withdrawn from 
production, the annual allowance must be supplemented 
by an annual premium per hectare if it is assigned for 
afforestation; 
Whereas it should be left to the Member States to fix the 
amount and the duration of the allowance and of the 
premium according to the use to which the land is put 
and to the economic and social situation in the Member 
State; 
Whereas the elimination of holdings upon which elderly 
family members have worked permanently or elderly 
paid workers have been permanently employed may 
(') OJ No L 94, 28. 4. 1970, p. 13. 
O OJ No L 362, 31. 12. 1985, p. 17. (3) OJNoL93, 30. 3. 1985, p. 1. 
No C 273/4 Official Journal of the European Communities 29.10.86 
involve for these persons loss of their employment and 
incomes; whereas the should also be provided with an 
alternative income in the form of an annual allowance; 
Whereas young farmers who take over a farm for the 
first time should be helped to adapt and reorganize their 
farms to improve quality or convert or extensify 
production in line with market requirements; whereas 
they should be compensated for any drop in production 
so that their incomes do not fall; 
Whereas the compensatory allowance for permanent 
natural handicaps in the area covered by Council 
Directive 75/268/EEC ('), as last amended by Regu­
lation (EEC) No 797/85 (2), is indispensable both to help 
maintain farmers' incomes, and thus the maintenance of 
farming itself, in these areas and, at the same time, to 
facilitate the adaptation and reorganization of farms; 
Whereas amplification and strengthening of this 
measure would further increase its effects and allow 
more account to be taken of the relative severity of 
permanent natural handicaps and the importance of the 
services provided by farmers; 
Whereas payment of the compensatory allowance must 
continue if the recipient stops farming under the 
prepension scheme; 
Whereas it should be left to the Member States to set the 
amounts of this allowance not only according to the 
severity of the permanent natural handicaps in question 
but also with due regard to the economic situation and 
the incomes of the holdings; 
Whereas the Community's financial contribution to the 
compensatory allowance must be a function purely of the 
income objectives of this Regulation; 
Whereas farmers in areas that are sensitive from the 
point of view of protection of the environment or preser­
vation of the countryside are in a position to perform a 
valuable service to society as a whole; whereas the intro­
duction of specific measures will encourage farmers to 
(') OJNoL 128, 19. 5. 1975, p. 1. 
O OJNoL93, 30. 3. 1985, p. 1. introduce or retain production methods that are 
compatible with the increased need to protect or preserve 
the countryside and at the same time help, by means of 
reorientation of their farms, towards realization of the 
agricultural policy objective of restoring balance on the 
market in certain products; 
Whereas the measures to encourage the afforestation of 
agricultural land must be amplified to enable 
beneficiaries under the prepension scheme to afforest 
areas withdrawn from agricultural production; 
Whereas existing agricultural training schemes should be 
stepped up so that farmers can receive the services they 
require if they are to reorient production, apply 
production methods compatible with protection of the 
countryside and afforest agricultural areas; 
Whereas the commom measure introduced by Council 
Regulation (EEC) No 270/79 of 6 February 1979 on the 
development of agricultural advisory services in Italy (3), 
as amended by Regulation (EEC) No 3768/85 (4), has 
not produced the desired results indispensable for the 
adaptation of agriculture in that Member State; whereas 
the measure should therefore be adjusted to render more 
flexible the present systems for training and installing 
advisers; 
Whereas the commom measure introduced by Council 
Regulation (EEC) No 1360/78 of 19 June 1978 on 
producer groups and associations thereof (5), as last 
amended by Regulation (EEC) No 3827/85 (6), can be 
used to help secure the improvement of product quality 
in certain regions that is one element of the changes 
required in the Community's agriculture; whereas the 
duration of the measure should therefore be extended 
and it should be strengthened at the same time; 
Whereas the introduction of specific provisions on 
contributions from the fund to the development of 
alternative production and of organically grown crops 
will increase the effectiveness of the common measure 
introduced by Council Regulation (EEC) No 355/77 of 
15 February 1977 on a common measure to improve the 
0 OJNoL38, 14.2. 1979, p. 6. 
(4) OJ No L 362, 31. 13. 1985, p. 8. 
(») OJ No L 166, 23. 6. 1978, p. 1. 
(6) OJ No L 372, 31. 12. 1985, p. 1. 
29. 10. 86 Official Journal of the European Communities No C 273/5 
conditions under which agricultural and fishery products 
are processed and marketed ('), as last amended by 
Regulation (EEC) No 3827/85, in respect of the 
adjustment and reorientation of agriculture made 
necessary by the economic consequences of the common 
agricultural policy, 
HAS ADOPTED THIS REGULATION: 
CHAPTER I 
AMENDMENT OF REGULATION (EEC) No 797/85 
Article 1 
Regulation (EEC) No 797/85 is hereby amended as 
follows : 
1. Article 1 is replaced by the following: 
'Article 1 
1. With a view to assisting the adaptation and 
reorientation of agriculture and so permitting its 
steady development, a common measure within the 
meaning of Article 6 (1) of Regulation (EEC) No 
729/70, to be implemented by the Member States, is 
hereby introduced in order to help improve the 
efficiency of holdings by the development and reor­
ganization of farm structures and at the same time to 
contribute to the protection of the environment and 
the permanent conservation of the natural resources 
of agriculture. 
2. In accordance with Title VIII, the Guidance 
Section of the European Agricultural Guidance and 
Guarantee Fund, hereinafter referred to as the "the 
fund", shall make a contribution to the measure 
referred to in paragraph 1 concering: 
(a) prepension schemes for the encouragement of 
retirement from farming; 
(b) investments in agricultural holdings and the 
installation of young farmers; 
(c) measures to help improve quality and to convert 
to other forms of and extensify agricultural 
production; 
(d) other measures to assist agricultural holdings, 
such as the introduction of proper accounts and 
the establishment and operation of groups, 
services and other facilities for the benefit of 
several holdings; 
(') OJNoL51, 23. 2. 1977, p. 1. (e) specific measures to assist mountain and hill 
farming and farming in certain less-favoured 
areas; 
(f) specific measures to protect the environment and 
preserve the countryside; 
(g) forestry measures that are to the advantage of 
agricultural holdings; 
(h) adjustment of vocational training to the 
requirements of modern agriculture.' 
2. The following Title la is inserted after Article 1. 
'TITLE la 
Prepension scheme 
Article la 
The Member States shall introduce for a period of 
five years a prepension scheme to encourage 
retirement from farming, under which: 
— an annual allowance shall be paid to farmers on 
the terms set out in Articles lb to If, 
— an additional annual premium per hectare shall 
be paid on the terms set out in Article lg, 
— an annual allowance shall be paid to permanent 
employees and permanent family workers on the 
terms set out in Article li. 
Article lb 
The annual allowance mentioned in the first indent 
of Article la shall be paid to farmers practising 
farming as their main occupation, as these are 
defined in Article 2 (5) below, who are more than 55 
years old and on condition that: 
(a) production on the farm is abandoned for the 
period, which may not be less than five years, 
between the date on which the farmer ceases 
farming and that on which he reaches the 
retirement age fixed by the social security system 
applicable in agriculture; or 
(b) a successor related in the first degree of 
succession is installed as head of holding. 
Article lc 
1. "Abandonment of agricultural production" 
shall be taken to mean: 
— either allocation of the agricultural area of the 
holding to afforestation or a non-agricultural use 
compatible with the preservation of the quality of 
the environment, 
No C 273/6 Official Journal of the European Communities 29.10.86 
— or cessation of cultivation of the agricultutal area 
of the holding. 
2. In the case of cessation of cultivation, the 
outgoing farmer may be required to ensure that the 
land is maintained, notably with a view to the pres­
ervation of the countryside. 
3. Production must be abandoned on the entire 
area of the farm. Member States may however 
permit that: 
— in the case of leased holdings, a proportion of 
the agricultural area not exceeding 20 % may be 
taken over by the owner without being 
abandoned as defined in paragraph 1, 
— recipients of the allowance may retain up to 5 % 
or two hectares, whichever is less, of the agri­
cultural area, provided that production for 
marketing purposes is definitely discontinued. 
Article Id 
Should a successor take over the holding, the annual 
allowance shall not be granted unless: 
— the farm has a labour requirement of at least one 
man-work unit (MWU), 
— the successor takes over as head of holding 
practising farming as his main occupation, as this 
is defined in Article 2 (5), 
— the successor is under 40 years of age. 
Article le 
1. Member States shall set the amount of the 
allowance and the period of time for which it will be 
paid in accordance with the age of the recipient and 
the uses specified in Article lc or in Article Id to 
which the land is put, due regard being given to the 
economic and social situation of the Member State. 
2. Where a Member State operates a prepension 
scheme for the purposes of securing agricultural land 
for restructuring the annual allowance granted for 
abandonment of production must be at least 25 % 
higher than the amount granted in return for release 
of the land for restructuring. 
Article If 
The maximum amount in respect of which assistance 
from the fund may be granted shall be 4 000 ECU 
per year in the case of married farmers and 2 500 ECU per year in the case of recipients living alone 
for a maximum period of 10 years but in no case 
after the 70th birthday of the recipient. 
Any pension that the recipient receives under 
national social security arrangements shall be 
deducted from the annual amount in respect of 
which assistance from the fund may be given. 
Article lg 
1. The additional annual premium per hectare 
mentioned in the second indent of Article la shall be 
granted to recipients of the annual allowance who 
undertake to abandon agricultural production on the 
terms set out in Article lc. 
It shall be paid per hectare of area actually 
withdrawn from agricultural production. 
2. In fixing the amount of the annual premium, 
Member States shall take account of rent levels in 
the relevant area and of the costs of maintaining the 
area on which production is abandoned. 
In the case of tenancies, Member States may also 
specify terms on which the additional annual 
premium shall be paid in whole or in part to the 
owner of the area on which production has been 
abandoned. 
3. (a) The maximum premium amount in respect of 
which assistance from the fund shall be 
granted shall be 150 ECU per hectare per 
year. Assistance shall be granted for the 
actual duration of non-cultivation of the land 
but only for the period for which the annual 
allowance referred to in Article lb is being 
paid. 
(b) If the recipient of the annual premium per 
hectare referred to in the second indent of 
Article la afforests the agricultural area 
released, the maximum period for which the 
premium may be assisted shall be extended to 
20 years and, in the case of areas not covered 
by Article 15(3), the amount that may be 
assisted shall be increased by 50 ECU per 
year. 
Article ih 
Member States may grant recipients of the annual 
allowance mentioned in Article la investment aid for 
non-agricultural utilization of the area freed that is 
compatible with protection of the environment. 
Assistance from the fund shall be granted for such 
aids within the limits set in Article 4 (2) for a 
maximum investment amount of 60 000 ECU per 
recipient. 
Article li 
1. The annual allowance provided for at the third 
indent of Article la shall be granted to permanent 
paid workers and permanent family helpers on the 
29.10.86 Official Journal of the European Communities No C 273/7 
farm, excluding the spouse of the recipient, aged 
between 55 and 65 years who undertake to do no 
further agricultural work and 
— have worked in agriculture on at least a half time 
basis for at least five years before submission of 
the application, 
— have worked on a holding the head of which 
received an annual allowance under Article lb 
(a) for at least two years before submission of the 
application, 
— are covered by the national social security 
arrangements. 
2. In fixing the amount of the annual allowance, 
Member States shall take due account of the 
economic and social situation of their country. 
Member States may replace the allowance by 
payment of a lump sum of equivalent value. 
3. The maximum allowance amount for which aid 
may be granted from the fund shall be 3 000 ECU 
per year. Aid from the fund shall be limited to two 
allowances per holding withdrawn from agricultural 
production. 
Article lk 
Member States shall take whatever action is 
necessary to ensure that recipients of the allowances 
provided for in Articles lb and li receive the same 
social security benefits as they would have received 
had they continued to work in agriculture and that 
their social security contributions are not unduly 
increased. 
If a recipient of the allowance provided for in Article 
li receives unemployment benefit the Member State 
may reduce the allowance accordingly. 
Article ll 
Articles lb (b) and Id shall not apply in Portugal.' 
3. The following point 3 is added to Article 7: 
'3. An annual premium per hectare, provided that 
the young farmer undertakes that for at least five 
years he will: 
— make qualitative improvements in or 
reorientate his production in line with market 
requirements, 
— proceed to a significantly extensified system 
of farming on his holding. 
Member States shall lay down the rules and 
criteria to be observed in regard to qualitative 
improvement, reorientation and extensification of 
production, determining, in particular, that the 
extensification yields a substantial reduction in 
production per hectare. They shall also fix the 
amount and the duration of the premium, to be 
dependent on the commitment undertaken by the 
young farmer and the actual reduction in 
production. The maximum amount in respect of which aid 
from the fund may be granted shall be 100 ECU 
per year per hectare of productive land in respect 
of which the young farmer has given an under­
taking as specified in the second subparagraph.' 
4. In Article 8: 
(i) in paragraph 1 the words following the third 
indent are replaced by the following: 
'— for investments for the purposes of environ­
mental protection and improvement, 
provided that the granting of these higher 
amounts does not infringe the provisions of 
Article 3 of this Regulation or of Articles 
92, 93 and 94 of the Treaty.'; 
(ii) the second indent in paragraph 2 is deleted; 
(iii) the first indent in the second subparagraph of 
paragraph 4 is deleted; 
(iv) the following indent is added after the fourth 
indent in paragraph 5: 
'— aid schemes for investment in protection 
and improvement of the environment, 
provided that they do not entail an increase 
in production,'. 
5. In Article 12 (5), '12 000 ECU' is replaced by 
'36 000 ECU'. 
6. In Article 15: 
(i) the beginning of paragraph 1, '20,3 ECU' is 
replaced by'30 ECU'; 
(ii) the following sentence is added to the first 
subsection of point (a) in paragraph 1: 
'However, in less-favoured agricultural areas in 
which the severity of the permanent natural 
handicaps is great enough so to justify, the total 
allowance granted may be increased to 120 
ECU per MWU and per hectare.'; 
(iii) point (b) of paragraph 1 is replaced by the 
following: 
'(b) In the case of production other than of 
cattle, equines, sheep and goats, the 
allowance shall be proportional to the area 
farmed, less that devoted to the feeding of 
livestock and: 
— in all less-favoured agricultural areas, 
less that given over to wheat (apart 
from durum wheat in areas not 
included in those specified in Council 
Regulation (EEC) No 3103/76 (l) and 
No C 273/8 Official Journal of the European Communities 29.10.86 
that in excess of 0,5 hectares per 
holding fully planted with apple, pear 
or peach trees, 
— in the less-favoured agricultural areas 
specified in Article 3 (4) and (5), less 
that given over to grapes for wine 
production, sugar beet and intensive 
cropping. 
The allowance may not exceed 101 ECU 
per hectare. However, in less-favoured 
agricultural areas in which the severity of 
the permanent natural handicaps is great 
enough so to justify the total amount 
granted may be increased to 120 ECU per 
hectare.; 8. Title V is replaced by the following: 
TITLE V 
0) OJ No L 351, 21. 12. 1976, p. 1.' 
(iv) in paragraph 3, T5' is replaced by '20'; 
(v) the following subparagraph is added to 
paragraph 3: 
'In addition, where the recipient of a 
compensatory allowance abandons agricultural 
production on the agricultural area of his 
holding, as this is defined in Article lb, the 
compensatory allowance shall continue to be 
paid in respect of the area actually taken out of 
production, less any area covered by the 
previous subparagraph, for the period during 
which the annual allowance specified in Article 
lb is paid. 
In such cases Article 14 (2) shall not apply.'; 
(vi) the following paragraph 4 is added: 
'4. The maximum compensatory allowance 
granted under this Article that shall be aided 
from the fund shall be 3 000 ECU per MWU or 
1 500 ECU per holding in the case referred to 
in the second subparagraph of paragraph 3.' 
7. The following Article 15a is added: 
'Article 15a 
The total compensatory allowance shall be increased 
by 50 % where a recipient who does not receive the 
premium specified in Article 7 (3) undertakes, for a 
period of at least five years, 
— to make qualitative improvements or reorientate 
production, in line with market requirements, 
— to reduce the intensity of production on his 
holding to a significant extent. 
The allowance shall be increased in respect of the 
area of the holding in respect of which the recipient 
has given the undertaking specified above. 
Member States shall determine the conditions and 
criteria concerning qualitative improvement, 
conversion or extensification of production, 
showing, in particular, that the extensification does 
in fact yield a substantial reduction in production per 
hectare.' Aid in areas sensitive as regards protection of the 
environment and preservation of the countryside 
Article 19 
Member States may, in order to contribute towards 
the introduction or maintenance of agricultural 
practice compatible with protection of the 
environment and preservation of the countryside and 
so contribute to adjustment and orientation of agri­
cultural production to market requirements, 
introduce a specific aid scheme for areas that are 
sensitive in either of these regards. 
Article 19a 
The aid scheme mentioned in Article 19 shall consist 
of an annual premium per hectare granted to farmers 
in areas that are sensitive as regards protection of 
the environment and preservation of the countryside 
who: 
undertake that for a period of at least five years 
they will introduce or continue to use production 
practices compatible with protection of the 
environment and of natural resources, and 
shall be obliged to observe in future specific rules 
on extensification of production designed to 
protect the environment and natural resources. 
Article 19b 
Member States shall determine which areas are 
sensitive as regards protection of the environment 
and preservation of the countryside, having due 
regard, in particular, to relevant Community 
legislation. 
They shall define those production practices 
compatible with protection of the environment and 
of natural resources on the basis of the individual 
objectives to be obtained in the areas concerned, and 
also the obligations that farmers receiving aid under 
the specific scheme must in future comply with as 
regards maintenance or reduction of production 
intensity and the cattle density that is compatible 
with the protection requirements of the individual 
area concerned. 
29.10.86 Official Journal of the European Communities No C 273/9 
Article 19c The rate shall be: 
The maximum amount of the annual premium per 
hectare specified in Article 19a that may be aided 
from the fund shall be 100 ECU per hectare covered 
by the undertaking and obligation referred to in that 
Article. In the areas referred to in Article 3 of 
Directive 75/268/EEC in which the compensatory 
allowance specified in Article 15 is paid the 
maximum amount that may be aided from the fund 
shall be 50 % of the maximum amount of that 
allowance that may be aided.' 
9. In Article 20: 
(i) the following subparagraph is added after the 
first subparagraph of paragraph 1: 
'The afforestation aid referred to in the previous 
subparagraph may also be paid to farmers 
receiving the annual allowance specified at (a) of 
Article lb and to forestry associations or 
cooperatives or communities which afforest agri­
cultural areas belonging to the categories of 
farmers covered by this Article'; 
(ii) in paragraph 2, '1 400 ECU' is replaced by 
'1 800 ECU'. 
10. In Article 21: 
(i) the following is added to the first indent in 
paragraph 1: 
'. . . and courses of additional training for such 
persons, intended to prepare them for qualitative 
reorientation of production, the application of 
production methods compatible with protection 
of the countryside and acquisition of skills 
needed to enable them to manage their 
woodlands'; 
(ii) the first sentence of paragraph 3 is replaced by 
the following: 
'3. Expenditure incurred by Member States 
on aid for the purposes specified at (a) and (b) 
of paragraph 2 shall be assisted from the fund up 
to an amount of 7 000 ECU per person who has 
followed a full course of training. Of this 
amount 2 500 ECU must have been given for 
further courses on reorientation of production, 
production methods compatible with protection 
of the countryside and management of 
woodlands.' 
11. In Article 26: 
(i) paragraphs 1 and 2 are replaced by the 
following: 
'1. Expenditure incurred by Member States 
on the measures provided for in Articles la to li, 
3 to 7, 9 to 17 and 19 to 21 shall be assisted 
from the fund. 
2. The fund shall repay Member States 25 % 
of eligible expenditure on the aids provided for 
in Articles la to li, 3 to 7, 13 to 17, 19 and 20. 50 % in the case of investment aid as 
provided for in Articles 3 and 4 when 
granted in the less-favoured areas of the west 
of Ireland, of Greece and of the 
Mezzogiorno, including the islands, and in 
Portugal, 
50 % in the case of the special aid to young 
farmers under 40 years of age provided for 
in Article 7(1) and (2), 
50 % in the case of the compensatory 
allowance provided for in Article 14 when 
granted in Greece, Ireland, Italy, Portugal 
and the French overseas departments, 
50 % in the case of the aids provided for in 
Articles la to li, 7 (3) and 17 when granted 
in regions as referred to in Article 13 (1) of 
Greece, Ireland, Italy and the French 
overseas departments, and in Portugal. 
The fund may repay Member States up to 25 % 
of their eligible expenditure on operations as 
provided for in Articles 9 to 12 and 21; in the 
regions as referred to in Article 13 (1) of 
Greece, Ireland, Italy and the French overseas 
departments and in Portugal the rate shall be up 
to 50 % of their eligible expenditure on the 
operations specified in Article 21.' 
(ii) paragraph 4 is replaced by the following: 
'4. When adopting for Spain the list of less-
favoured farming areas as defined in Article 3 of 
Directive 75/268/EEC, the Council shall decide 
in which of those areas the rate of 
reimbursement for the aid schemes provided for 
in Articles la to li, 3, 4, 14, 17 and 21 is to be 
50 %.' 
12. Article 31 is replaced by the following: 
'Article 31 
1. This Regulation shall be without prejudice to 
the Member States' right to adopt additional aid 
measures in the areas covered by this Regulation, 
with the exception of those covered by Articles 3 to 
6, 7 (2), 8 (2), (3) and (4) and 13 on terms differing 
from or in amounts exceeding the ceilings laid down 
in this Regulation, provided that Articles 92, 93 and 
94 of the Treaty are not infringed. 
No C 273/10 Official Journal of th( 
2. The provisions of Articles 92, 93 and 94 of the 
Treaty, with the exception of Article 92 (2) shall not 
apply to the aid measures covered by Articles 3 to 6, 
7 (2), 8 (2), (3) and (4) and 13.' 
CHAPTER II 
AMENDMENT OF REGULATION (EEC) No 270/79 
Article 2 
Regulation (EEC) No 270/79 is hereby amended as 
follows: 
1. The following words are added to (a) of Article 2 (1): 
'. .. or by other agricultural organizations recognized 
by the State.' 
2. In Article 3: 
(i) the following point (bb) is inserted after (b) in 
point 1: 
'(bb) the other agricultural organizations auth­
orized to train advisers.'; 
(ii) (c) of point 2 is replaced by the following: 
'(c) the advisory services and other organizations 
employing the advisers, and details of the 
way in which they are to be supervized;' 
(iii) (d) of point 2 shall end as fallows: 
'. .. by the services and organizations referred to 
at (c).' 
3. Article 7 (1) is replaced by the following: 
'1. The training courses referred to in Articles 3 (1) 
(d) shall enable persons meeting the requirements set 
out in Article 6 to acquire adequate knowledge 
corresponding to their tasks, in the following areas in 
particular: 
— the provision of advice to farmers, 
— farm management, 
— the preparation of plans for materially improving 
holdings as specified in Council Regulation (EEC) 
No 797/85 O, 
— improvment of production quality, 
— production practices compatible with environ­
mental and natural resource protection 
requirements, 
— preparation and implementation of the 
programmes and measures mentioned in Article 3 
(2) (a) and other measures related thereto, 
— psychology and rural sociology. 
O OJNoL93, 30. 3. 1985, p. 1.' European Communities 29.10.86 
4. Article 8 is replaced by the following: 
'Article 8 
1. Advisers given the training specified in Article 7 
shall be used for the implementation of the 
programmes and measures specified at Article 3 (2) 
(a). 
2. Italy shall ensure that at least 60 % of the 
advisers given the training specified in Article 7 (1) 
work in the Mezzogiorno. It shall also ensure that the 
trained advisers are properly distributed in the various 
areas on the basis of the actual requirements for 
advisory services. 
3. Italy shall notify, where appropriate every year, 
— the action taken to ensure that the activities of the 
advisers are wholly devoted to the provision of 
advice, to the exclusion of all administrative or 
other unrelated work, 
— the distribution of the advisers trained each year 
to the different areas, with separate figures for 
general advisers, specialist advisers and advisory 
service managers. 
4. The Commission shall, in accordance with the 
procedure laid down in Article 14, issue an opinion 
on the action taken in the areas covered by paragraph 
3.' 
5. Article 9 is repealed. 
6. In Article 11: 
(i) the following is added at the end of the second 
indent in point (b) of paragraph 1: 
'. . . trained by the centres or organizations 
mentioned in Article 2 (1) (a).'; 
(ii) the first sentence of paragraph 3 is replaced by 
the following: 
'3. The fund shall reimburse Italy for the costs 
of employing the advisers on the following terms: 
the maximum qualifying amount per adviser 
trained as specified in Article 7 (1) and newly 
installed as specified in Article 8 shall be 12 500 
ECU (remainder unchanged).' 
29.10.86 Official Journal of the European Communities No C 273/11 
CHAPTER III 
AMENDMENT OF REGULATION (EEC) No 1360/78 
Article 3 
Regulation (EEC) No 1360/78 is hereby amended as 
follows: 
1. In Article 6: 
(i) the first indent at point (b) of paragraph 1 is 
replaced by the following: 
'— common rules on production, in particular 
on product quality 
or use of biological practices,'; 
(ii) point (c) in paragraph 1 is replaced by the 
following: 
'(c) the articles of association shall at least 
require producers who are members of 
groups and recognized producer groups that 
are members of the association to place on 
the market all of the production for 
marketing of the products in respect of 
which they belong to the group or 
association in accordance with the rules on 
supply and placing on the market drawn up 
and supervized by the group or by the 
association. 
Member States may authorize this obligation 
to be replaced by an obligation to have all 
the production for marketing of the products 
in respect of which they are recognized 
placed on the market by the group or by the 
association either in their name and on their 
behalf, or on their behalf but in the name of 
the group or the association, or in the name 
and on behalf of the group or the 
association. The group or association may 
however authorize its members to place part 
of their production on the market in the 
manner specified in the first subparagraph. 
As far as producer groups are concerned 
these obligations shall not apply to that part 
of their production for which producers have 
included sales contracts or granted options 
before they join the group, provided that the 
group was informed before they joined of 
the scope and the duration of the obligations 
contracted;'; 
(iii) in paragraph 3 the second indent is replaced by 
the following: 
'— the minimum cultivated area, turnover or 
volume of production for the product or 
product group in question coming from the 
members whom under the terms of 
paragraph 1 (e) the groups are to represent, 
and if necessary the minimum number of 
members they must have, the area covered, including the minimum 
crop area, turnover and proportion of the 
national volume of production for the 
product or product group in question coming 
from the groups which the associations are to 
represent, and if necessary the minimum 
number of producer groups in the 
membership.' 
2. The following new paragraph 3 is inserted after 
Article 10 (2): 
'3. However, the aid granted to producer groups 
recognized after 1 July 1986 for the first five years 
following the date on which they are recognized: 
shall, for the first, second, third, fourth and fifth 
years be respectively 5 %, 5 %, 4 %, 3 % and 
2 % of the value of the production in respect of 
which they are recognized and which is marketed 
that comes from the members as defined in the 
second indent of Article 5(1), 
— may not exceed the actual cost of setting up and 
running the group, 
— shall be paid in annual instalments over at the 
most seven years following the date of 
recognition.' 
Paragraphs 3 and 4 become paragraphs 4 and 5. 
3. Article 13 (1) shall read as follows: 
'1. The period anticipated for implementation of 
the common measure shall run to 31 December 1991.' 
CHAPTER IV 
AMENDMENT OF REGULATION (EEC) No 355/77 
Article 4 
Regulation (EEC) No 355/77 is hereby amended as 
follows: 
1. The following paragraph is added to Article 10: 
'Conditions (a) and (c) need not however be met if 
the project is for the marketing or processing of 
organically grown products and is a pilot or 
experimental project.' 
No C 273/12 Official Journal of the European Communities 29.10.86 
2. In Article 17: 
(i) the following subparagraph is added to point (a) 
in paragraph 2: 
'If a programme as defined in Article 2 provides 
for the creation of marketing or processing 
structures for alternative or organically grown 
crops evidence of the existence of genuine outlets 
for which is shown in the programme, the 
Commission may, after following the procedure 
provided for in Article 22, authorize the Member 
State to reduce the recipient's contribution by five 
points for the projects in question.' 
(ii) the following is added to point (b) of paragraph 
2: 
'If a programme as defined in Article 2 provides 
for the creation of marketing or processing 
structures for alternative or organically grown 
crops evidence of the existence of real outlets for 
which is given in the programme the Commission 
may, after following the procedure provided for in Article 22, increase these rates by five points 
for the products in question.' 
CHAPTER V 
GENERAL PROVISIONS 
Article 5 
The Member States shall bring into force the measures 
that they require to adopt in order to conform with this 
Regulation within six months of the date of its entry into 
force. 
Article 6 
This Regulation shall enter into force on the third day 
following 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 Decision amending Decision 83/641/EEC adopting joint research 
programmes and programmes for coordinating agricultural research 
COM(86) 199 final/2 
(Submitted by the Commission to the Council on 22 April 1986) 
(86/C 273/04) 
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, to the promotion and coordination of agricultural 
research and experimenting, with a strengthening of the 
policy on agricultural reserach and more efficient organi­
zation of the transfer technology; 
Whereas these measures are contemplated as the best 
means of encouraging changes in production on the farm 
prompted by changes in the common agricultural policy; 
Having regard to the opinion of the European Par­
liament, 
Whereas the Commission has stressed that current trends 
in respect of many agricultural products are inevitably 
tending to boost surpluses at heavy cost to the budget; Whereas, in this connection, farmers must be helped to 
adapt by switching to other products to the new 
conditions resulting from the surpluses combined with a 
policy of restrictive pricing; 
Whereas this entails an unjustified waste of resources 
and is generating a climate of uncertainty hampering the 
work and the decisions of Community farmers; Whereas, in this connection, production should be 
adapted to the qualities required by the markets and the 
consumers; 
Whereas, accordingly, the Commission has stated its Whereas the efficiency of farms should be improved, 
intention to step up sharply its commitment with regard given the need to control production and cut prices;