iÉSfSaéiE 
COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(93) 221 final 
Brussels, 18 May 1993 
JiSi^i'WKji.t'." Proposal for a 
COUNCIL REGULATION (EEC) 
fixing the non-rotational set-aside rate referred 
to in Article 7 of Regulation (EEC) No 1765/92 
(presented by the Commission) 
*tn 
EXPLANATORY MEMORANDUM 
1. One of the main objectives of the reform of the common agricultural policy 
which was adopted in June 1992 is to improve control over production. In the 
arable crop sector, one of the most appropriate ways of achieving this 
objective is to set land aside. All producers, with the exception of those 
qualifying under the small producer scheme, must participate in, set aside in 
order to qualify for compensatory payments per hectare, granted to compensate 
for the loss of income due to fixing prices at a more competitive level, the 
other main principle of the reform. 
For set-aside to be effective it must not be concentrated on the least 
productive land on each holding. To avoid this risk, the Commission 
originally proposed that the land set aside should be rotated. The detailed 
rules for applying set-aside provide therefore for an interval of five years 
before the same parcel of land can return to fallow which, in the case of a 
set-aside rate of 15% on a holding specializing only in eligible arable 
crops, results in 90% of the surface area of the holding in question being 
set aside at some time or other during the course of the rotation period. 
2. When the proposals for the reform were adopted, the Council recognized the 
principle of set aside based on rotation. It was also agreed that 
non-rotational set aside could be offered to producers in return for a higher 
set-aside rate so as to compensate for the risk that non-rotational set-aside 
would be carried out on less productive land. Before fixing the 
non-rotational set-aside rate, which is the Community's prerogative alone, 
the Council asked for a study to be carried out on the effects of 
non-rotational set-aside on production control. This study was implemented 
by the Commission and entrusted to the competent institutes in each Member 
State. 
3. Institutes in each Member State, with the exception of Luxembourg (covered by 
the Belgian study) helped to prepare the study. The Dutch institute, which 
was given the task of coordinating the research, submitted a final report 
which included the following main conclusions: 
- The results of the national studies are hardly comparable because the 
position as regards availability of data and studies previously carried 
out on this issue varies considerably from one Member State to the next; 
- To obtain the same reduction in production obtainable with a 15% 
rotational set-aside rate, the rate for non-rotational set aside should be 
set on average at about 18%; 
- 2 -
- As producers with marginal land would be the main participants in 
non-rotational set aside (while continuing to produce on good land), 
a set-aside rate greater than 18% would be justified. 
Given the above factors, the Dutch institute proposed an extra 5 percentage 
points for non-rotational set-aside as compared to rotational set-aside. In 
coming to these conclusions, the Dutch institute took into account the 
opinion of certain national institutes according to which rotational 
set-aside could have the effect of increasing productivity; the institute 
estimated however that this risk is more than compensated for by the two 
other factors already mentioned, i.e. the possibility offered to producers to 
concentrate set-aside on the least productive land and the probability that 
non-rotational set-aside will be mainly chosen by those producers whose 
holdings show the greatest variation as regards land quality. 
The Commission therefore proposes to fix the difference between 
non-rotational and rotational set-aside at 5 additional points (therefore 
20% instead of 15%, 15% instead of 10%, 25% instead of 20%, etc.). 
- 3-
COUNCIL REGULATION (EEC) No 
Of 
fixing the non-rotational set-aside rate referred 
to in Article 7 of Regulation (EEC) No 1765/92 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, «^"-7'£* 
Having regard to the Treaty establishing the European Economic Community, 
Having regard to Council Regulation (EEC) No 1765/92 of 30 June 1992, 
establishing a support system for producers of certain arable crops{*), as 
amended by Regulation (EEC) No 364/93(2), ancj ^n particular Article 7(1) 
thereof, 
Whereas the second subparagraph of Article 7(1) of Regulation (EEC) No 1765/92 
states that non-rotational set-aside can be permitted in return for a higher 
set-aside percentage rate than that required for rotational set-aside; whereas 
this percentage must ensure a reduction in production comparable to that 
resulting from rotational set-aside; whereas a scientific study of the 
comparative effectiveness, as regards production control, of the two types of 
set-aside, shows that a difference of five percentage points over the rate for 
rotational set-aside should enable the Community's objective to be obtained, 
HAS ADOPTED THIS REGULATION: 
Article 1 
The percentage of non-rotational set-aside referred to in the second subparagraph 
of Article 7(1) of Regulation (EEC) No 1765/92 shall be fixed at the level of the 
percentage of rotational set-aside referred to in the same Article, plus 
5 percentage points. 
(1) OJ No L 181, 1.7.1992, p. 12 
(2) OJ No L 42, 19.2.1993, p. 3. 
-U.-
Article 2 
This Regulation shall enter into force on the seventh 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. 
Done at For the Council 
-""b-
F ï NANCIAL S TATEMENT 
DATE: 10 May 1993 
1. BUDGET HEADING: 10 APPROPRIATIONS: ECU 7104 
2. TITLE: Draft Council Regulation setting the percentage rate of non-rotational set-aside referred to in 
article 7 of Regulation (EEC) N* 1765/92 
3. LEG*. BASIS: Regulation (EEC) N' 1765/92 
4. AIMS OF PROJECT: 
To set the percentage rate of non-rotational set-aside 
5. FINftCMi. REPLICATIONS 
5.0 EXPENDITURE 
- CHARGED TO THE EC BUDGET 
- (XXXXXXX/INTERVENTION) Period of 12 months 
(ECUm) 
p.m. Current Financial Year 
1993 Following Financial Year 
1994 
1995 
5.0.1 ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED REVENUE p.m. 1996 
p.m. 1997 
p.m. 1996 
p.m. 
5.2 METHOD OF CALCULATION: 
6.0 CAN THE PROJEa BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 
YESXXX 
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? 
YESXXX 
6.2 IS A SUPPLEMENTARY BUDGET NECESSARY? 
XXXXND 
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 
YESXXX 
OBSERVATIONS: 
A higher percentage rate for non-rotating set-aside compared with rotating set-aside, aims to achieve an 
equivalent reduction of production. Given that in the medium term, differences between actual and desirable 
levels of production wi 11 be control led by changes to the basic rate of set-aside (without budgetary 
consequences), the setting of a non-rotational rate does not of itself have any budgetary consequences. 
It is possible that during the second year, when the rate of payment for set-aside land is sti11 higher than 
that for cropped land, there could be extra expenditure. This is not possible to calculate, though. 
" fo ' ISSN 0254-1475 
COM(93) 221 final 
DOCUMENTS 
EN 03 
Catalogue number : CB-CO-93-248-EN-C 
ISBN 92-77-55881-4 
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