TEXT PROPOSED BY THE COMMISSION AMENDMENTS

Amendment 1 Proposal for a regulation — amending act Recital 3

(3) In respect of cereals the system should be modified to ensure competitiveness and market orientation for the sector while keeping the role of intervention as a safety net in case of market disruptions and facilitating farmers' response to market conditions. The Council Conclusions on the reform of the intervention system for maize provided for a review of the whole cereals intervention system in the context of the Health Check, based on an analysis which indicated a certain risk for additional barley intervention if prices were low. The present outlook for cereals has however since changed significantly, and is characterised by a favourable world market price environment driven by expanding world demand and low global cereal stocks. Within this context, setting intervention levels to zero for other feed grains in the same time frame as the maize reform would allow for intervention without having negative implications for the cereals market as a whole. The outlook for the cereals sector also applies for durum wheat, meaning that buying into intervention could be abolished since it has lost its relevance with market prices always significantly above the intervention price. Since intervention for cereals is to be a safety net rather than an element which influences price formation, the differences in harvesting periods across Member States, which effectively start the marketing campaigns, are not longer relevant since the system will no longer provide for prices reflecting intervention levels plus monthly increments. In the interests of simplification the dates for cereals intervention should therefore be harmonised across the Community . (3) In respect of cereals the system should be modified to ensure competitiveness and market orientation for the sector while keeping the role of intervention as a safety net in case of market disruptions and facilitating farmers' response to market conditions. The Council Conclusions on the reform of the intervention system for maize provided for a review of the whole cereals intervention system in the context of the Health Check, based on an analysis which indicated a certain risk for additional barley intervention if prices were low. The present outlook for cereals has however since changed significantly, and is characterised by a favourable world market price environment driven by expanding world demand and low global cereal stocks. Within this context, setting intervention levels to zero for other feed grains in the same time frame as the maize reform would allow for intervention without having negative implications for the cereals market as a whole. The outlook for the cereals sector also applies for durum wheat, meaning that buying into intervention could be abolished since it has lost its relevance with market prices always significantly above the intervention price. Since intervention for cereals is to be a safety net, intervention should only take place during the last three months of the marketing year .

Amendment 2 Proposal for a regulation — amending act Recital 4

(4) Since the 2003 reform, the competitiveness of the rice sector has increased, with stable production, falling stocks in the view of increasing demand both in the Community and on the world market, with the expected price significantly above the intervention price. Therefore providing for buying into intervention for rice is no longer necessary and so should be abolished . (4) Since the 2003 reform, the competitiveness of the rice sector has increased, with stable production, falling stocks in the view of increasing demand both in the Community and on the world market, with the expected price significantly above the intervention price. Intervention should nevertheless be maintained as a safety net .

Amendment 3 Proposal for a regulation — amending act Recital 6

(6) The abolition of intervention for these products may safely be carried out in 2009 since the current market situation and perspectives suggest that intervention would not, in any case, be applicable for them in 2009. (6) The abolition of intervention for rice and pigmeat may safely be carried out in 2009 since the current market situation and perspectives suggest that intervention would not, in any case, be applicable for them in 2009.

Amendment 5 Proposal for a regulation — amending act Recital 8a (new)

(8a) With effect from 2009, investment support for milk producers should no longer be limited to the established quota volume so that producers can make investments more specifically geared to market requirements.

Amendment 6 Proposal for a regulation — amending act Recital 10

(10) Aid for private storage of butter is not widely used. Nevertheless due to the seasonal pattern of milk production in the Community there will always be a seasonal pattern of butter production. Therefore, temporary pressure on the butter market may occur which could be alleviated by seasonal storage. The decision should, however, be taken by the Commission based on sound market analysis rather than an obligation to open the scheme every year and so the scheme should become optional. deleted

Amendment 7 Proposal for a regulation — amending act Recital 12

(12) Disposal aids for butter for pastry and ice cream and for direct consumption have been reduced in line with the reduction of the intervention price for butter as from 2004 and have consequently been zero before tenders were suspended due to the favourable market situation. Disposal aid schemes are no longer needed to support the market at intervention price level and should therefore be abolished . (12) Disposal aids for butter for pastry and ice cream and for direct consumption have been reduced in line with the reduction of the intervention price for butter as from 2004 and have consequently been zero before tenders were suspended due to the favourable market situation.

Amendment 8 Proposal for a regulation — amending act Recital 13

(13) As was the case in the common agricultural policy reform of 2003, to enhance the competitiveness of Community agriculture and to promote more market-oriented and sustainable agriculture, it is necessary to continue the shift from production support to producer support by abolishing the existing aids in Council Regulation (EC) No 1234/2007 of 22 October 2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products (single CMO Regulation) for dried fodder , flax, hemp and potato starch and integrating support for these products into the system of decoupled income support for each farm. As was the case for the 2003 CAP reform, while decoupling aid paid to farmers will leave the actual amounts paid unchanged, it will significantly increase the effectiveness of the income aid. (13) As was the case in the common agricultural policy reform of 2003, to enhance the competitiveness of Community agriculture and to promote more market-oriented and sustainable agriculture, it is necessary to continue the shift from production support to producer support by abolishing the existing aids in Council Regulation (EC) No 1234/2007 of 22 October 2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products (single CMO Regulation) for flax, hemp and potato starch and integrating support for these products into the system of decoupled income support for each farm. As was the case for the 2003 CAP reform, while decoupling aid paid to farmers will leave the actual amounts paid unchanged, it will significantly increase the effectiveness of the income aid.

Amendment 9 Proposal for a regulation — amending act Recital 14

(14) The Council decided in 2000 to phase out the aid for short flax and hemp fibre. This decision was implemented with effect from the 2009/2010 marketing year by the amendments made to the single CMO by Regulation (EC) No 247/2008, as was the phasing out of the additional processing aid for processors of flax grown in traditional areas. Aid for long flax fibre should be decoupled. However in order to allow the industry to adapt, half of the shift to the single payment scheme should take place in 2011 and the remaining part in 2013. (14) The Council decided in 2000 to phase out the aid for short flax and hemp fibre. This decision was implemented with effect from the 2009/2010 marketing year by the amendments made to the single CMO by Regulation (EC) No 247/2008, as was the phasing out of the additional processing aid for processors of flax grown in traditional areas. Aid for long flax fibre should be decoupled. However in order to allow the industry to adapt, the shift to the single payment scheme should take place by 2013 at the latest .

Amendment 10 Proposal for a regulation — amending act Recital 15

(15) The dried fodder regime was reformed in 2003, when part of the aid was given to producers and decoupled. In the context of the overall orientation of the Health Check towards more market orientation, and the present outlook in feed markets, the transition to full decoupling for the entire sector should therefore be completed by decoupling the remaining aid to the industry. (15) The dried fodder regime was reformed in 2003, when part of the aid was given to producers and decoupled. In the context of the overall orientation of the Health Check towards more market orientation, and the present outlook in feed markets, the transition to full decoupling for the entire sector should therefore be completed, by 2013 at the latest , by decoupling the remaining aid to the industry.

It should be possible to mitigate the effects of ending the payment of aid to processors by appropriate adjustments in the price paid to producers of the raw materials, who will themselves be receiving increased direct aid entitlements as a result of decoupling. The ending of the aid to processors is also justified in the light of the market situation and perspectives for protein crops as a whole. Given the fact that the sector has already been restructuring since the 2003 reform and the particular negative environmental impact that the production of dehydrated fodder has recently been found to generate, the aid should be decoupled although a short transitional period of two years should be provided for to allow the sector to adjust.

Amendment 11 Proposal for a regulation — amending act Recital 17

(17) Developments in domestic and international cereal and starch markets render the starch production refund no longer pertinent with respect to its initial objectives, and should therefore be abolished. The market situation and perspectives are such that the aid has been set at zero for some time and this would be expected to continue, so that rapid abolition may be effected without negative effects for the sector. deleted

Amendment 12 Proposal for a regulation — amending act Recital 18

(18) The provisions on exceptional market support measures related to animal diseases are to be dealt with in a horizontal provision on risk management, and so should be deleted from Regulation (EC) No 1234/2007. deleted

Amendment 13 Proposal for a regulation — amending act Recital 19

(19) Producer organisations can serve a useful role in grouping supply in sectors where there is an imbalance in concentration of producers and purchasers. Member States should therefore be able to recognise producer organisations in all sectors. (19) While crop insurance or mutual funds can contribute to corrective risk management, this can be very costly in economic and social terms. Parallel efforts should therefore be made to develop preventive risk management instruments . Producer organisations and interbranch organisations can serve an important role in this preventive risk management, particularly by grouping supply in sectors where there is an imbalance in concentration of producers and purchasers or by improving knowledge of the markets . Member States should therefore be able to recognise producer organisations and professional organisations in all sectors.

Amendment 42 Proposal for a regulation — amending act Article 1 — point –1 (new) Regulation (EC) No 247/2006 Article 4 — paragraph 3

(–1) Article 4(3) of Regulation (EC) No 247/2006 is replaced by the following:

3. By way of derogation from paragraph 2(a), it shall be permitted to market from the Azores to the rest of the Community the following maximum quantities of sugar (code NC 1701) during the following years:

— 2008 : 3 000 tonnes,

— 2009 : 2 285 tonnes,

— 2010 : 1 570 tonnes,

— 2011 : 855 tonnes,

Amendment 44 Proposal for a regulation — amending act Article 1 — point –1a (new) Regulation (EC) No 247/2006 Article 5 — paragraph 1

(–1a) Article 5(1) of Regulation (EC) No 247/2006 is replaced by the following:

1. During the period referred to in Article 10(1) of Regulation (EC) No 1260/2001, the C sugar referred to in Article 13 of that Regulation, exported pursuant to Commission Regulation (EEC) No 2670/81 of 14 September 1981 laying down detailed implementing rules in respect of sugar production in excess of the quota and introduced to be consumed in Madeira and the Canary Islands in the form of white sugar under code NC 1701 and to be refined and consumed in the Azores as raw sugar under code NC 1701 12 10 and/or NC 1701 11 10, shall benefit, under the conditions of this Regulation, from the exemption regime relating to import duties within the limit of the supply estimates referred to in Article 2 of this Regulation.

Amendment 66 Proposal for a regulation — amending act Article 4 — point 1 Regulation (EC) No 1234/2007 Article 8 — paragraph 1 — point (b)

(1) Point (b) of Article 8(1) is deleted. deleted

Amendment 14 Proposal for a regulation — amending act Article 4 — point 2 Regulation (EC) No 1234/2007 Article 10

(2) Article 10 is amended as follows: deleted

(a) Paragraph 1 is amended as follows:

(i) point (a) is replaced by the following:

‘ (a) common wheat, barley, maize and sorghum ;’

(ii) point (b) is deleted).

(b) Paragraph 2 is deleted.

Amendment 15 Proposal for a regulation — amending act Article 4 — point 3 Regulation (EC) No 1234/2007 Article 11 — point a

(a) for cereals, from 1 November to 31 May; (a) for cereals, from 1 March to 31 May;

Amendment 16 Proposal for a regulation — amending act Article 4 — point 3 Regulation (EC) No 1234/2007 Article 11 — point (da) (new)

(da) for pigmeat, throughout any marketing year.

Amendment 17 Proposal for a regulation — amending act Article 4 — point 3 Regulation (EC) No 1234/2007 Article 12 — paragraph 1 — point b a (new)

(ba) shall be opened for pigmeat by the Commission, without the assistance of the Committee referred to in Article 195(1), if the average market price for pig carcasses over a representative period, as established by reference to the prices recorded in each Member State on the representative markets of the Community and weighted by means of coefficients reflecting the relative size of the pig herd in each Member State, is, and is likely to remain, at less than 103 % of the reference price.

Amendment 18 Proposal for a regulation — amending act Article 4 — point 3 Regulation (EC) No 1234/2007 Article 12 — paragraph 2

2. Public intervention for common wheat may be suspended by the Commission, without the assistance of the Committee referred to in Article 195(1) , if the price for wheat with a minimum protein content of 11 % ‘Rouen delivered’ is higher than the reference price. 2. Public intervention for common wheat may be suspended by the Commission if the price for wheat with a minimum protein content of 11 % ‘Rouen delivered’ is higher than the reference price.

It shall be reopened by the Commission, without the assistance of the Committee referred to in Article 195(1) , if the conditions provided for in the first subparagraph of this paragraph no longer apply. It shall be reopened by the Commission if the conditions provided for in the first subparagraph of this paragraph no longer apply.

Amendment 67 Proposal for a regulation — amending act Article 4 — point 4 Regulation (EC) No 1234/2007 Subsection III — Article 18

4) Subsection III of Section II of Chapter I of Title I of Part II is replaced by the following: deleted

Subsection III

Intervention prices

Article 18

Intervention prices

1. The intervention prices and the quantities accepted for intervention for the products referred to in Article 10(a), (d), (e) and (f) shall be determined by the Commission by means of tendering procedures. In special circumstances, tendering procedures may be restricted to, or the intervention prices and the quantities accepted for intervention may be fixed per, Member State or per region of a Member State on the basis of recorded average market prices.

2. The intervention price determined in accordance with paragraph 1 shall not be higher:

(a) for cereals, than the respective reference prices;

(b) for beef, than the average market price recorded in a Member State or a region of a Member State increased by an amount to be determined by the Commission on the basis of objective criteria;

(c) for butter, than 90 % of the reference price;

(d) for skimmed milk powder, than the reference price.

3. The intervention price for sugar shall be 80 % of the reference price fixed for the marketing year following the marketing year during which the offer is lodged. However, if the quality of the sugar offered to the paying agency differs from the standard quality defined in point B of Annex IV for which the reference price is fixed, the intervention price shall be increased or reduced accordingly.

Amendment 43 Proposal for a regulation — amending act Article 4 — point 4 a (new) Regulation (EC) No 1234/2007 Article 26 — paragraph 2 — point (a) — point (ii a) (new)

4a) In Article 26(2)(a), the following point is inserted:

(iia) for utilisation under the specific supply regime provided for in Article 5 of Regulation (EC) No 247/2006

Amendment 19 Proposal for a regulation — amending act Article 4 — point 5 Regulation (EC) No 1234/2007 Part II — Title I — Chapter I — Section III — Subsection I

(5) Subsection I of Section III of Chapter I of Title I of Part II is deleted. deleted

Amendment 20 Proposal for a regulation — amending act Article 4 — point 6 Regulation (EC) No 1234/2007 Article 31

(6) Article 31 is amended as follows: deleted

(a) Paragraph 1 is amended as follows:

(i) after point (c) the following points are inserted:

(ca) unsalted butter produced from cream or milk in an approved undertaking of the Community of a minimum butterfat content, by weight, of 82 %, a maximum milk solids non-fat content, by weight, of 2 %, and a maximum water content, by weight, of 16 %;

(cb) salted butter produced from cream or milk in an approved undertaking of the Community of a minimum butterfat content, by weight, of 80 %, a maximum milk solids non-fat content, by weight, of 2 %, a maximum water content, by weight, of 16 % and a maximum salt content, by weight, of 2 %;

(ii) point (e) is deleted;

(b) In paragraph 2, the second subparagraph is deleted.

Amendment 21 Proposal for a regulation — amending act Article 4 — point 7 Regulation (EC) No 1234/2007 Article 34a (new)

7. The following Article 34a is inserted: deleted

Article 34a

Conditions of granting for butter

1. The Commission may decide to grant aid for private storage for butter in particular if developments in prices and stocks of the products indicate a serious imbalance in the market which could be avoided or reduced by means of seasonal storage.

2. The amount of aid shall be fixed by the Commission taking account of storage costs and the likely development in butter prices.

Amendment 22 Proposal for a regulation — amending act Article 4 — point 8 Regulation (EC) No 1234/2007 Article 36

(8) Article 36 is deleted. deleted

Amendment 23 Proposal for a regulation — amending act Article 4 — point 11 Regulation (EC) No 1234/2007 Article 44

(11) Article 44 is deleted. deleted

Amendment 24 Proposal for a regulation — amending act Article 4 — point 12 — point a Regulation (EC) No 1234/2007 Article 46 — paragraph 1

(a) Paragraph 1 is replaced by the following: deleted

1. For the exceptional support measures referred to in Article 45, the Community shall provide part-financing equivalent to 50 % of the expenditure borne by Member States.

Amendment 25 Proposal for a regulation — amending act Article 4 — point 14a (new) Regulation (EC) No 1234/2007 Article 66 — paragraph 5a (new)

(14a) In Article 66, the following paragraph is added:

5 a. Member States may apply for temporary quota increases based on underutilisation of milk quotas in other Member States, on the condition that they can prove that their dairy market is not likely to enjoy a soft landing under the basic rules. To this end the Commission shall calculate every year the underutilisation of milk quotas. The Commission shall assess potential applications by Member States for extra quota increases and present a proposal for the temporary handing out of production quotas at the beginning of each marketing year. These temporary quotas in a given marketing year shall always remain below the level of underutilisation of quotas in the marketing year before the given marketing year. The Commission may be assisted by the Committee referred to in Article 195(1).

Amendment 26 Proposal for a regulation — amending act Article 4 — point 14b (new) Regulation (EC) No 1234/2007 Article 78 — paragraph 3a (new)

(14b) In Article 78, the following paragraph 3a is inserted:

3 a. All the revenue deriving from the payment of the additional levy to the Union and the appropriations saved from the agricultural budget should be paid into the milk fund so that flanking measures can be implemented in the milk sector.

Measures supported pursuant to Article 68 [general rules] of Regulation (EC) No […]/2008 [new regulation on direct payments] may not be funded under this system.

Amendment 27 Proposal for a regulation — amending act Article 4 — point 17 Regulation (EC) No 1234/2007 Part II — Title I — Chapter IV — Section I — Subsection I

17. Subsection I of Section I of Chapter IV of Title I of Part II is deleted. deleted

Amendment 28 Proposal for a regulation — amending act Article 4 — point 18a (new) Regulation (EC) No 1234/2007 Article 91 — paragraph 1 — subparagraph 2

18a. In Article 91(1), the second subparagraph is replaced by the following:

During the marketing years 2009/10 to 2012/13 aid shall also be granted under the same conditions for processing the straw of short flax and hemp grown for fibre.

Amendment 29 Proposal for a regulation — amending act Article 4 — point 19 Regulation (EC) No 1234/2007 Article 92 — paragraph 1

1. The amount of processing aid provided for in Article 91 shall be fixed for long flax fibre : 1. The amount of processing aid provided for in Article 91 shall be fixed:

(a) EUR 200 for the 2009/2010 and 2010/2011 marketing years; and (a) for long flax fibre, EUR 160 per tonne for the 2009/2010 to 2012/2013 marketing years;

(b) EUR 100 for the 2011/2012 and 2012/2013 marketing years; (b) for short flax fibre and hemp fibre containing not more than 7,5 % impurities and shives, EUR 90 per tonne for the 2009/2010 to 2012/2013 marketing years.

However, the Member State may, with reference to traditional outlets, also decide to grant aid:

(a) for short flax fibre containing a percentage of impurities and shives of between 7,5 % and 15 %;

(b) for hemp fibre containing a percentage of impurities and shives of between 7,5 % and 25 %.

In the cases provided for in the second subparagraph, the Member State shall grant the aid in respect of a quantity which amounts to not more than the quantity produced, on the basis of 7,5 % of impurities and shives.

Amendment 30 Proposal for a regulation — amending act Article 4 — point 20a (new) Regulation (EC) No 1234/2007 Article 94 — paragraph 1 a

(20a) In Article 94, paragraph 1a is replaced by the following:

1a. A maximum guaranteed quantity of 147 265 tonnes for each of the marketing years 2009/2010 to 2012/2013 shall be established for short flax fibre and hemp fibre in respect of which aid may be granted. That quantity shall be apportioned among certain Member States as national guaranteed quantities in accordance with point A. II. of Annex XI.

Amendment 31 Proposal for a regulation — amending act Article 4 — point 20b (new) Regulation (EC) No 1234/2007 Article 94 a

(20b) Article 94a is replaced by the following:

Article 94a

Additional aid

During the 2009/2010 to 2012/2013 marketing years, additional aid shall be granted to the authorised primary processor in respect of areas under flax in zones I and II as described in point A. III. of Annex XI and the straw production of which has been the subject of:

(a) a sale/purchase contract or a commitment as referred to in Article 91(1); and

(b) aid for processing into long fibre.

The amount of additional aid shall be EUR 120 per hectare in zone I and EUR 50 per hectare in zone II.

Amendment 32 Proposal for a regulation — amending act Article 4 — point 21 Regulation (EC) No 1234/2007 Article 95a — paragraph 1

1. A premium of EUR 22,25 per tonne of starch produced shall be paid for the 2009/2010 and 2010/2011 marketing years to undertakings producing potato starch for the quantity of potato starch up to the quota limit referred to in Article 84a(2), provided that they have paid to potato producers a minimum price for all the potatoes necessary to produce starch up to that quota limit. 1. A premium of EUR 22,25 per tonne of starch produced shall be paid for the 2009/2010 to 2012/2013 marketing years to undertakings producing potato starch for the quantity of potato starch up to the quota limit referred to in Article 84a(2), provided that they have paid to potato producers a minimum price for all the potatoes necessary to produce starch up to that quota limit.

Amendment 33 Proposal for a regulation — amending act Article 4 — point 22 Regulation (EC) No 1234/2007 Article 96

(22) Article 96 is deleted. deleted

Amendment 35 Proposal for a regulation — amending act Article 4 — point 29a (new) Regulation (EC) No 1234/2007 Article 122 — paragraph 1b (new)

29a. The following paragraph is added to Article 122:

Member States may also recognise as producer organisations applicant groups within the meaning of Article 5(1) of Council Regulation (EC) No 510/2006 of 20 March 2006 on the protection of geographical indications and designations of origin for agricultural products and foodstuffs (1). In this case the provisions of point (c)(i) of the first paragraph of this Article shall apply.

Amendment 36 Proposal for a regulation — amending act Article 4 — point 30 Regulation (EC) No 1234/2007 Article 124 — paragraph 1 — subparagraph 1a (new)

These interbranch organisations may act to promote, inter alia, preventive risk management, research and development, information on, and promotion of, products and branches, market analysis and information, and measures of contractualisation.

Amendment 37 Proposal for a regulation — amending act Article 4 — point 30a (new) Regulation (EC) No 1234/2007 Article 162 — paragraph 1 — point a — point i

(30a) In Article 162(1)(a), point (i) is deleted (2).

Amendment 38 Proposal for a regulation — amending act Article 4 — point 30 b (new) Regulation (EC) No 1234/2007 Article 162 — paragraph 1 — point a — point ii

(30b) In Article 162(1)(a), point (ii) is deleted (2).

Amendment 39 Proposal for a regulation — amending act Article 4 — point 31a (new) Regulation (EC) No 1234/2007 Article 182 — paragraph 3

(31a) Article 182(3) is replaced by the following text:

3. Member States which reduce their sugar quota by more than 50 % of the sugar quota laid down on 20 February 2006 in Annex III to Regulation (EC) No 318/2006 may grant temporary state aid up to the 2013/2014 marketing year .

Depending on the application by the Member States concerned the Commission shall take a decision on the total amount of state aid available for such a measure.

In the case of Italy the temporary aid referred to in the first subparagraph shall not exceed a total of EUR 11 per marketing year and per tonne of sugar beet, to be allocated to sugar-beet growers and to the transport of sugar beet.

Finland may grant sugar-beet growers up to EUR 350 per hectare and per marketing year.

Within thirty days of the end of each marketing year the Member States concerned shall inform the Commission of the amount of state aid actually granted in the course of that marketing year.

Amendment 40 Proposal for a regulation — amending act Article 4 — point 32 Regulation (EC) No 1234/2007 Article 184 — point 5