No C 51/6 Official Journal of the European Communities 23. 2. 88 
II 
(Preparatory Acts) 
COMMISSION 
Proposal for a Council Regulation (EEC) amending Regulations (EEC) No 797/85 and (EEC) 
No 1760/87 as regards the set-aside of agricultural land and the extensification and conversion 
of production 
COM(88) 1 final 
(Submitted by the Commission to the Council on 13 January 1988) 
(88/C 51/09) 
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 
Parliament, 
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 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, the 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 ('), as last amended by Regulation (EEC) No 
1760/87 (2), should be adjusted and amplified; 
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 be extended 
to cover all arable land since from one year to another 
the use made of such land varies with the rotation of 
crops; whereas, however, the possibility should be 
(') OJ No L 93, 30. 3. 1985, p. 1. 
(2) OJ No L 167, 26. 6. 1987, p. 1. provided for of excluding from the scheme land so far 
used for crops whose situation is not such as to make 
desirable Community incentives for reducing the area 
devoted to them; whereas, to achieve tangible results in 
terms of the stabilization of supply, it should be 
stipulated that at least 20 % of the arable land must be 
set aside for a period of at least five years; 
Whereas, given the greater need to protect the envi­
ronment 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 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 hand, 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, the minimum and maximum amounts eligible for 
the aid should be specified; 
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-responsi­
bility levy provided for in Article 4 of Regulation (EEC) 
No 2727/75 and the additional co-responsibility levy 
provided for in Article 7a (3) of Council Regulation 
(EEC) No 2727/75 of 29 October 1975 on the common 
organization of the market in cereals (3), as last amended 
by Regulation (EEC) No 3989/87 (4); 
(5) OJ No L 281, 1. 11. 1975, p. 1. 
(4) OJ No L 377, 31. 12. 1987, p. 1. 
23. 2. 88 Official Journal of the European Communities No C 51/7 
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 Agri­
cultural 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 schemes for land set-aside and exten­
sification of production fall within the common measure 
for improving the efficiency of agricultural structures 
provided for in Regulation (EEC) No 797/85, their main 
aim is nonetheless to help in re-establishing the balance 
between output and the market's capacity to absorb it; 
Whereas, therefore, by way of derogation from Articles 
1 (3) and 6 (1) of Council Regulation (EEC) No 729/70 
on the financing of the common agricultural policy ('), 
as last amended by Regulation (EEC) No 3183/79 (2), it 
should be laid down that schemes for land set-aside and 
extensification of production are to be considered as 
intervention within the meaning of Article 3 of Regu­
lation (EEC) No 729/70 and therefore financed by the 
Guarantee Section 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 shall include such 
measures as are considered to be intervention 
within the meaning of Article 3 of Regulation 
(EEC) No 729/70'; 
(b) in paragraph 2 (a), 'and extensification' is deleted; 
(c) the following subparagraph is added to paragraph 
2: 
'In accordance with Title VIII, the Guidance 
Section of the Fund shall make a contribution to 
the measure referred to in paragraph 1 
concerning: 
0) OJ No L 94, 28. 4. 1970, p. 1. 
(2) OJ No L 304, 27. 10. 1987, p. 1. (a) the scheme for encouraging set-aside of land; 
(b) the scheme for encouraging extensification of 
production.' 
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 determined. Land growing crops whose 
situation is not such as to make desirable any set-
aside of land devoted to them may be 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 such land must be withdrawn from culti­
vation, that is: 
— left fallow, 
— 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. 
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 it 
does not provide excessive compensation, on the 
other, together with the way in which that aid is 
to be paid. 
This aid shall be eligible for reimbursement from 
the Fund only up to a maximum amount per 
hectare to be determined. The aid may not be less 
than certain minimum amounts to be determined; 
(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. 
No C 51/8 Official Journal of the European Communities 23. 2. 88 
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 (*) provided 
for in Article 7a (3) 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 land to be excluded from the scheme under 
the second sentence of paragraph 2, 
— 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, 
— the maximum annual amount per hectare eligible 
for assistance from the Fund, 
— the regionally-adjusted minimum amounts, taking 
account of soil types and the net margins 
recorded. 
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. 
Until 31 December 1989 Member States may restrict 
the scheme to crop products, 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 reducing output of the various 
products. In the case of beef and veal, it may be 
stipulated that, in order to achieve the reduction 
(*) Date of the Regulation's entry into force. 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 under­
taking given by the beneficiary and the loss 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 Regu­
lation (EEC) No 804/68 ('), as last amended by 
Regulation (EEC) No 773/87 (2). The reference 
quantities suspended pursuant to this paragraph may 
not be re-used or re-allocated for the duration of the 
suspension. 
The eligible amount of the premium paid under 
Council Regulation (EEC) No 775/87 of 16 March 
1987 temporarily withdrawing a proportion of the 
reference quantities mentioned in Article 5c (1) of 
Regulation (EEC) No 804/68 on the common organ­
ization of the market in milk and milk products (3) 
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 Titles 01 or 03 for the land affected by extensifi­
cation. 
6. The Commission, acting in accordance with the 
procedure laid down in Article 25, shall lay down 
detailed rules for applying this Title, specifying in 
particular the maximum annual amounts eligible for 
assistance from the Fund. 
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 laid down 
in Article 43 (2) of the EEC 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 Titles 01 or 02 for the land in question. 
23. 2. 88 Official Journal of the 
4. The Commission, acting in accordance with the 
procedure laid down in Article 25, shall adopt 
detailed rules for applying this Title. 
(') OJ No L 148, 28. 6. 1968, p. 13. 
O OJ No L 78, 20. 3. 1987, p. 1. 
O OJ No L 78, 20. 3. 1987, p. 5.' 
3. 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 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 and lb shall be eligible for aid 
from the Guarantee Section of the Fund.' 
(b) the following subparagraph is added to paragraph 
2: 
'The Fund shall reimburse to Member States 
50 % of the eligible expenditure on the measures 
provided for in Article la. 
The rate shall be reduced to: 
— 25 % for that portion of the aid which 
exceeds 200 ECU per hectare, 
— 15 % for that portion of the aid which 
exceeds 400 ECU per hectare.' 
4. In Article 32 (1) the following subparagraph is 
inserted after the first suparagraph: European Communities No C 51/9 
'Where Titles 01, 02 and 03 are concerned, Member 
States shall bring into force the measures necessary to 
comply with this Regulation before 1988 (*). 
(*) Three months as from the entry into force of the 
proposed Regulation.' 
5. The following Article 32a is inserted: 
'1. On receipt of a reasoned application, the 
Commission, acting in accordance with the procedure 
laid down in Article 25, 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 depopu­
lation, production should not be reduced. 
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 during the first 
stage of accession.' 
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.