Proposal for a Council Regulation (EC) amending for the eighth time Regulation (EEC) No 1765/92 establishing a support system for producers of certain arable crops

(95/C 48/06)

COM(94) 636 final - 95/0017(CNS)

(Submitted by the Commission on 19 January 1995)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European 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 withdrawal of arable land from cultivation, the main instrument for balancing the agricultural markets introduced by the common agricultural policy reforms, may be effected (a) by set-aside in return for compensation pursuant to Council Regulation (EEC) No 1765/92 (1), as last amended by Regulation (EC) No . . ./94, (b) by set-aside for environmental reasons pursuant to Council Regulation (EEC) No 2078/92 (2) on agricultural production methods compatible with the requirements of protection of the environment and maintenance of the countryside or (c) by afforestation pursuant to Council Regulation (EEC) No 2080/92 (3) instituting a Community aid scheme for forestry measures in agriculture;

Whereas afforestation or set-aside for environmental reasons of withdrawn land is the most suitable option for arable crop growers for linking CAP reform and the measures accompanying it more effectively;

Whereas growers who make use of the accompanying measures have already contributed to reduction of surpluses through their use of the aid schemes provided for by Regulations (EEC) No 2078/92 and (EEC) No 2080/92; whereas this use can be encouraged by making it possible, on certain terms as regards compensation, to count the land so used for the purposes of the set-aside arrangements introduced by Regulation (EEC) No 1765/92;

Whereas land set aside pursuant to Regulation (EEC) No 1765/92 may be used for production other than for human or animal consumption, including short rotation forest trees and shrubs; whereas in certain regions growing of these offers a positive environmental benefit; whereas national authorities should be enabled to promote this use of set-aside land by granting aid covering part of the cost of the necessary investment,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EEC) No 1765/92 is hereby amended as follows:

1. the following subparagraph is added to Article 7 (2):

'Without prejudice to Article 9, areas set aside pursuant to Regulation (EEC) No 2078/92 and areas afforested pursuant to Regulation (EEC) No 2080/92 may be counted for the purposes of the set-aside requirement indicated in paragraph 1. However:

- the compensation specified in paragraph 5 shall not be granted on these areas,

- the compensation for income losses for land set aside in the framework of Regulation (EEC) No 2078/92 or the compensation for income losses indicated at (c) in Article 3 of Regulation (EEC) No 2080/92 shall be limited for the areas in question to an amount equal at most to the compensation specified for that land in paragraph 5 of this Article.`;

2. the following subparagraph is added to Article 7 (4):

'Member States are authorized to grant national aid to producers to cover costs incurred in planting multiannual crops for biomass production. The aid may not, however, be more than the equivalent of the interest to be paid on a loan taken out for an amount not exceeding five years of compensatory payment for the land in question.`

Article 2

This Regulation shall enter into force on the third day following its publication in the Official Journal of the European Communities.

Article 1 (2) shall, however, apply to the 1994/95 marketing year.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

(1) OJ No L 181, 1. 7. 1992, p. 12.

(2) OJ No L 215, 30. 7. 1992, p. 85.

(3) OJ No L 215, 30. 7. 1992, p. 96.