No C 236/10 Official Journal of the European Communities 2.9. 87 
Proposal for a Council Regulation establishing a Community scheme to encourage the cessation 
of farming 
COM(87) 166 final 
(Submitted by the Commission to the Council on 15 April 1987) 
(87/C 236/06) 
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, 
Having regard to the opinion of the European Par­
liament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas, given the outlook in the medium and long 
term for both the Community and world markets for 
agricultural products, the achievement of market balance 
calls for a prices policy that is likely, during the period 
of adjustment to the new situation, to entail serious 
income difficulties for that section of the farming popu­
lation whose holdings are structurally weakest; 
Whereas Council Regulation (EEC) No .. ./87 of 
establishing a Community system of aids to farm 
incomes (') allows for the grant of degressive aids where 
holdings can be adapted to suit the new situation; 
Whereas Council Regulation (EEC) No .. ./87 of 
establishing a framework system for national aids to 
farm incomes (2) specifies the circumstances in which 
such aids may be authorized in order to maintain a fair 
standard of living for the farming population; 
Whereas these two Regulations should be supplemented 
by measures to help farmers more than 55 years old, 
who generally have serious difficulty in adjusting to the 
new situation; 
Whereas a scheme to encourage early retirement from 
farming would enable such persons to stop farming on 
reasonable terms by providing them with an adequate 
income; Whereas such a scheme would not only help to reduce 
production potential and so aid market stability but also 
help to improve farm structures by increasing both the 
size of holdings and the number of potentially viable 
holdings; 
Whereas, if agricultural production is discontinued on 
the agricultural area concerned, the annual allowance 
must be supplemented by an annual premium per 
hectare, particularly if the said area is afforested; 
Whereas the disappearance of holdings employing 
elderly family helpers and paid workers in full-time agri­
cultural work may entail for such persons the loss of 
their employment and income; whereas they should 
therefore be provided with a source of income by the 
grant of an annual allowance; 
Whereas the diversity of the causes, nature and gravity 
of the structural problems in agriculture may call for 
regional differentiation of solutions, subject to 
adjustment with the passage of time; whereas a contri­
bution must be made to the overall economic and social 
development of each region concerned; whereas the best 
results will be obtained if Member States, using 
Community criteria, themselves implement the common 
measure through their own legislative, regulatory and 
administrative mechanisms; 
Whereas all the measures planned are in the interest of 
the Community, being designed to attain the objectives 
listed in Article 39 (1) (a) of the EEC Treaty including 
the structural changes necessary for the satisfactory 
functioning of the common market; whereas these 
measures therefore constitute a common measure within 
the meaning of Article 6 of Council Regulation (EEC) 
No 729/70 of 21 April 1970 on the financing of the 
common agricultural policy (3), as last amended by Regu­
lation (EEC) No 3769/85 (4); whereas provision should 
also be made for additional Community financing of 
measures aimed at reducing production potential or for 
the concentration of such financing on the regions 
referred to in Article 7 (3), first and second indents, of 
Regulation (EEC) No .. ./87 establishing a Community 
system of aids to farm incomes; 
(1) See page 4 of this Official Journal. 
(2) See page 8 of this Official Journal. (») OJ No L 94, 28. 4. 1970, p. 13. 
(4) OJ No L 362, 31. 12. 1985, p. 17. 
2.9.87 Official Journal of the European Communities No C 236/11 
Whereas, since the Community will help to finance the 
common measure, it must be able to ascertain whether 
the action taken by the Member States to apply it is 
consonant with the objectives to be attained; whereas, to 
this end, a procedure should be introduced for close 
cooperation between the Member States and the 
Commission through the agency of the Standing 
Committee on Agricultural Structures instituted by 
Article 1 of the Council Decision of 4 December 1962 
on the coordination of policies on the structure of agri­
culture (*); whereas, in the case of financial matters, this 
procedure should involve consultation of the EAGGF 
Committee, as provided for in Articles 11 to 15 of Regu­
lation (EEC) No 729/70; 
Whereas Parliament and the Council should be able to 
examine annually, on the basis of a report presented by 
the Commission, the results obtained from the 
Community and national measures applied, so that they 
can assess the need for supplementing or adjusting the 
arrangements introduced, 
HAS ADOPTED THIS REGULATION: 
Article 1 
With a view to assisting the adjustment and reorgani­
zation of agricultural structures and thus helping to 
restore the balance between production and market 
outlets, a common measure within the meaning of Article 
6 (l)of Regulation (EEC) No 729/70, to be implemented 
by the Member States, is hereby introduced in order to 
establish a scheme to encourage the cessation of farming. 
Article 2 
1. Member States may: 
— exclude all or part of their territory from the 
application of all or some of the measures provided 
for in Article 3, 
— differentiate the application of such measures from 
one region to another. 
2. This Regulation shall not restrict the freedom of 
Member States to adopt, within the scope of this Regu­
lation, additional aid measures the conditions or terms of 
which differ from those laid down herein, provided that 
such measures are adopted in accordance with Articles 
92 to 94 of the Treaty. 
Article 3 
1. The scheme provided for in Article 1 may 
comprise: 
— the grant of an annual allowance to farmers 
practising farming as their main occupation, subject 
to the conditions laid down in Articles 4 and 5, 
— the grant of a supplementary annual premium 
per hectare, subject to the conditions laid down in 
Article 6, 
0) OJ No L 136; 17. 12. 1962, p. 2892/62. — the grant of an annual allowance to paid agricultural 
workers and permanent family helpers, subject to the 
conditions laid down in Article 11. 
2. Member States may replace the annual allowances 
referred to in paragraph 1, depending on the age of the 
recipient, by the payment of a single lump sum of 
equivalent effect. 
They may also replace the annual allowance referred to 
in the first indent of paragraph 1 by the supplementary 
premium per hectare referred to in the second indent of 
paragraph 1 plus an increment to ensure equivalent 
effect. 
Article 4 
1. The annual allowance referred to in the first indent 
of Article 3 (1) may be granted to farmers who practise 
farming as their main occupation within the meaning of 
Article 2 (5) of Regulation (EEC) No 797/85, who are 
over 55 years of age and who permanently cease all 
farming activities, provided that: 
— either agricultural production on the agricultural area 
of the holding is halted throughout the period from 
the time of cessation of farming to the time when the 
farmer reaches the normal retirement age as fixed by 
the social security arrangement currently applicable 
to farming in the Member States concerned. This 
period must be not less than five years but for this 
purpose it may be extended, where appropriate, 
beyond the normal retirement age. 
In the case of leased holdings, Member States may 
permit up to one-third of the area to be taken over 
by the owner without the cessation of production on 
that fraction of the area; 
— or the agricultural area of the holding is used to 
enlarge that of one or more other agricultural 
holdings, on condition that proof is furnished in 
accordance with Article 4 (3) of Regulation (EEC) 
No .. ./87 that such holdings will be able to provide, 
after a transitional period not exceeding five years, at 
least the average regional income or, where appro­
priate, 80 % of the average national income as 
defined in Article 4 (1) (b) of the said Regulation. 
The farmer(s) concerned must also undertake not to 
increase production of surplus products within the 
meaning of Article la of Regulation (EEC) No 
797/85 from the total area of their holding after 
enlargement. 
2. Member States may permit the beneficiaries of the 
annual allowance to continue to farm up to 10 %, but 
not more than one hectare of the area of the holding, 
provided that commercial production is definitively 
halted. 
No C 236/12 Official Journal of the European Communities 2.9.87 
Article 5 
1. 'Cessation of agricultural production' shall be taken 
to mean: 
— either allocation of the agricultural area of the 
holding to afforestation or to a non-agricultural use 
compatible with the preservation of the quality of the 
environment, 
— or the halting of agricultural production on the areas 
of the holding; in this case, the farmer who ceases 
farming may be required to maintain the agricultural 
area with a view in particular, to the preservation of 
the countryside, provided that all commercial 
production is discontinued. 
2. The cessation of production within the meaning of 
paragraph 1 may be effected on equivalent agricultural 
areas of other holdings following an exchange of parcels 
as a consolidation measure which enables production 
costs to be reduced or afforestation to proceed in a 
rational manner. 
Article 6 
1. The supplementary annual premium per hectare 
referred to in the second indent of Article 3 (1) shall be 
granted to beneficiaries meeting the conditions set forth 
in the first indent of Article 4 (1) and in Article 5, per 
hectare of agricultural area actually withdrawn from 
agricultural production. 
2. Member States may also lay down rules whereby, 
in the case of a leased holding, the premium referred to 
in paragraph 1 may be paid in whole or in part to the 
owners of the agricultural area on which production is 
discontinued. 
Article 7 
1. If the recipient of the annual allowance referred to 
in the first indent of Article 4 (1) discontinues milk 
production, the reference quantities allocated under 
Council Regulation (EEC) No 804/68 (') and released 
under the arrangement referred to in the first indent of 
Article 4 (1) shall be suspended for the duration of 
payment of the annual allowance, and for at least five 
years, unless the recipient of the annual allowance 
receives compensation for the definitive abandonment of 
milk production as provided for in Council Regulation 
(EEC) No 1336/86 (2). The reference quantities withdrawn pursuant to this 
Article may not be reallocated for the duration of such 
suspension. 
2. The supplementary annual premium per hectare 
referred to in the second indent of Article 3(1) shall not 
be eligible for a financial contribution from the Fund if it 
is paid in respect of areas for which a premium for the 
definitive abandonment of areas under vines is paid 
pursuant to Council Regulation (EEC) No 777/85 (3). 
Article 8 
Member States shall adopt decisions: 
— as regards the minimum age of recipients, 
— as regards the use of the areas on which agricultural 
production is discontinued, 
— as regards the amount and duration of the annual 
allowance, taking into account the age of the 
recipients and the economic and social situation of 
agriculture in their country, 
— as regards the amount and duration of the sup­
plementary premium per hectare, taking into 
account, in particular, the value of the land in terms 
of yield and the cost of its maintenance as referred to 
in the second indent of Article 5(1). 
Article 9 
1. The Fund shall contribute, as provided in 
paragraph 2, towards the expenditure incurred by 
Member States pursuant to the first indent of Article 
4 (1) and Article 6, within the following limits: 
— the maximum eligible amount of the allowance shall 
be 3 000 ECU per year and per farmer practising 
farming as his main occupation, in the case of a 
married farmer whose spouse has worked solely or 
mainly on the farm and has no other remunerative 
work, and 1 875 ECU per year in all other cases, for 
a maximum duration of 10 years but not beyond the 
recipient's seventieth birthday. 
Where appropriate, assistance from the Fund shall be 
limited to the amount of the annual allowance 
granted in addition to the retirement pension paid to 
the recipient under the national social security 
arrangements; 
— the maximum eligible amount of the supplementary 
premium shall be 250 ECU per hectare per year for 
the period during which agricultural production is 
actutally discontinued on the area concerned, 
provided that the said period does not exceed that 
specified in the first indent. 
C) OJ No L 148, 28. 6. 1968, p. 1. 
O OJ No L 119, 8. 5. 1986, p. 21. O OJ No L 88, 28. 3. 1985, p. 8. 
2.9.87 Official Journal of the European Communities No C 236/13 
If the agricultural area farmed by the recipient of the 
supplementary premium per hectare undergoes 
afforestation, the period of eligibility for the 
premium shall be extended to a maximum of 20 years 
and, in the case of farmers who do not qualify for 
the allowance referred to in Article 15 (3) of Regu­
lation (EEC) No 797/85, the eligible amount shall be 
increased by a maximum of 50 ECU per hectare per 
year; 
— the maximum eligible amount shall be 350 ECU per 
hectare per year or, in the case of afforestation, 400 
ECU per hectare per year if the annual allowance is 
replaced by the supplementary premium per hectare. 
2. The Fund shall reimburse to the Member States 
50 % of the eligible expenditure referred to in para­
graph 1. 
Article 10 
1. The Fund shall contribute, as provided in 
paragraphs 2 and 3, towards the expenditure incurred by 
Member States in applying the scheme referred to in the 
second indent of Article 4 (1), subject to the following 
limits and conditions: 
the maximum eligible amount of the annual allowance 
shall be: 
— 3 000 ECU per year per farmer practising farming as 
his main occupation and ceasing to farm between 55 
and 60 years of age, in the case of a married farmer 
whose spouse has worked solely or mainly on the 
farm and has no other remunerative work, and 1 875 
ECU in all other cases, 
— 2 000 ECU per year per farmer practising farming as 
his main occupation and ceasing to farm after his 
61st birthday, in the case of a married farmer, and 
1 250 ECU in all other cases. 
Where appropriate, assistance from the Fund shall be 
limited to the amount of the annual allowance granted in 
addition to the retirement pension paid to the recipient 
under the national social security arrangements; 
the maximum duration shall be 10 years, but not beyond 
the recipient's seventieth birthday. 
2. The Fund shall contribute only towards the cost of 
allowances granted to recipients who meet the conditions 
laid down for the granting of aids to income in Council 
Regulation (EEC) No .. J$7 establishing a framework 
system for national aids to farm incomes and Council 
Regulation (EEC) No .. ./87 establishing a Community 
system of aids to farm incomes. 
3. The Fund shall reimburse to Member States: 
— 50 % of eligible expenditure in areas where the 
indicator is less than 75 % of the indicator referred 
to in Article 7 of Council Regulation (EEC) No 
.. ./87 establishing a Community system of aids to 
farm incomes; — 25 % of eligible expenditure in areas where the 
indicator is more than 75 % but less than 85 % of 
the indicator referred to in Article 7 of the said 
Regulation. 
Article 11 
1. Member. States may grant an annual allowance to 
paid workers and permanent family workers aged 
between 55 and the normal age of retirement fixed for 
the agricultural sector under the social security 
arrangements of the Member State concerned: 
— who have been engaged in agricultural work for at 
least five years before lodging an application and 
who have spent at least 50 % of their working time 
in agricultural work during this period, 
— who have been engaged in agricultural work on the 
holding for which the farmer receives the annual 
allowance pursuant to Article 3 for at least the last 
two years before the application was lodged, 
— who are covered by the social security arrangements, 
— who undertake not to engage in any further agri­
cultural or remunerative work. 
2. Member States shall determine the amount of the 
annual allowance taking due account, inter alia, of the 
economic and social situation of agriculture and of the 
recipients in their country. Member States may replace 
this allowance by a single lump-sum payment of 
equivalent effect. 
3. The Fund shall contribute, as provided in 
paragraph 4, towards the expenditure incurred by 
Member States in applying the scheme referred to in 
paragraph 1: 
— where the scheme applied to the abandoned farm is 
eligible under the terms of Articles 9 or 10, 
— up to a maximum eligible amount of 2 000 ECU per 
year, in the case of the allowance for a paid worker 
or a married family worker, and 1 250 ECU in other 
cases, 
— provided that at most two allowances are paid per 
farm, 
— subject to a maximum duration of ten years, but not 
exceeding the normal age of retirement referred to in 
paragraph 1. 
4. The Fund shall refund to the Member States: 
— 50 % of eligible expenditure in the cases referred to 
in Article 9, 
— in the case referred to in Article 10: 
— 50 % of eligible expenditure in the areas referred 
to in the first indent of Article 10 (3), 
No C 236/14 Official Journal of the European Communities 2. 9. 87 
— 25 % of eligible expenditure in the areas referred 
to in the second indent of Article 10 (3). 
Article 12 
1. The estimated period of time required for carrying 
out the common measure shall be ten years. 
2. Five years after the entry into force of this Regu­
lation, the detailed rules for its application shall be 
reviewed by the Council, on a proposal from the 
Commission. 
3. The Fund's total contribution to the cost of the 
common measure is estimated at 465 million ECU for 
the first five years. 
Article 13 
1. The Member States shall forward to the 
Commission: 
— drafts of all laws, regulations or administrative 
provisions which they propose to adopt pursuant to 
this Regulation, 
— the texts of any existing provisions which may make 
it possible to implement this Regulation. 
2. When submitting, pursuant to paragraph 1, drafts 
of laws, regulations or administrative provisions or the 
text of existing provisions, the Member States shall also 
submit an explanatory memorandum^ showing the 
relationship at regional level between the measures in 
question and economic and structural conditions in the 
agricultural sector together with proof that the measures 
conform to the aim of avoiding stimulating agricultural 
production through aid granted under this Regulation. 
3. The Commission shall examine drafts forwarded in 
accordance with the first indent of paragraph 1 for the 
purpose of determining whether, having regard to the 
objectives of this Regulation and to the need for a 
proper connection between the various measures, such 
drafts comply with the Regulation and thus satisfy the 
conditions for a financial contribution by the 
Community to the measures referred to in Article 1. 
Within two months of the receipt of any draft, the 
Commission shall, after consulting the Standing 
Committee on Agricultural Structure, issue an opinion 
thereon. 
4. Member States shall, on enactment of any law, 
regulation or administrative provision as referred to in 
paragraph 3, forward the text thereof to the 
Commission. 
Article 14 
1. With regard to provisions the texts of which are 
forwarded pursuant to the second indent of Article 
13 (1) or to Article 13 (4), the Commission shall examine 
whether, having regard to the objectives of this Regu­
lation and to the need for a proper connection between 
the various measures, such provisions satisfy the 
conditions for a financial contribution by the 
Community to the common measure referred to in 
Article 1. Within two months of the receipt of any text, the Commission representative shall, after consulting the 
EAGGF Committee on the financial aspects, submit a 
draft decision thereon to the Standing Committee on 
Agricultural Structure. 
2. The Committee shall issue its opinion within a time 
limit to be fixed by its Chairman according to the 
urgency of the matters for examination. It shall decide 
by a majority of 54 votes, the votes of Member States 
being weighted as laid down in Article 148 (2) of the 
EEC Treaty. The Chairman shall not vote. 
3. The Commission shall adopt the decision. 
However, if the decision is not in accordance with the 
opinion issued by the Committee, it shall immediately be 
communicated to the Council. In that event, the 
Commission may defer application of the decision for a 
period not exceeding one month from the date of its 
communication. 
The Council, voting as provided for in Article 43 (2) of 
the EEC Treaty, may adopt a different decision within 
one month. 
Article 15 
1. Measures taken by Member States shall not be 
eligible for a financial contribution from the Community 
unless a favourable decision under Article 14 has been 
taken in respect of the provisions relating thereto. 
2. The financial contribution from the Community 
shall be provided only in respect of eligible expenditure 
arising in connection with aid granted pursuant to 
decisions taken after the date on which this Regulation 
enters into force. 
Article 16 
Detailed rules for the application of Articles 9 (2), 10 (3) 
and 11 (4) shall be adopted in accordance with the 
procedure laid down in Article 13 of Regulation (EEC) 
No 729/70. 
Article 17 
1. Applications for reimbursement shall relate to 
expenditure incurred by Member States in the course of 
a given calendar year and shall be submitted to the 
Commission before 1 July of the following year. 
2. The grant of aid from the Fund shall be decided on 
in accordance with Article 7 (1) of Regulation (EEC) No 
729/70. 
3. Payments on account may be authorized by the 
Commission. 
4. Detailed rules for the application of this Article 
shall be adopted in accordance with the procedure laid 
down in Article 13 of Regulation (EEC) No 729/70. 
Article 18 
Before 1 August each year, the Community and national 
measures in force relating to this Regulation shall be 
examined in the context of an annual report which the 
2.9.87 Official Journal of the European Communities No C 236/15 
Commission shall present to the Parliament and the 
Council and for which Member States shall send all 
necessary documentation to the Commission. 
The Council shall evaluate the results of such measures, 
taking into consideration the rate of structural 
development required to achieve the objectives of the 
common agricultural policy, the effect on the production 
objectives of the Community and on the harmonious 
development of the regions of the Community, and the 
financial implications of the measures in question. If necessary, the Council shall, in accordance with the 
procedure laid down in Article 43 of the EEC Treaty, 
adopt appropriate provisions. 
Article 19 
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.