i 
lié COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(91)415 final 
Brussels, 31 October 1991 
REFORM OF THE COMMON AGRICULTURAL POLICY - LEGISLATION 
MEASURES TO ACCOMPANY THE REFORM OF THE MARKET SUPPORT MECHANISMS 
COMMUNITY AID SCHEME FOR FORESTRY MEASURES IN AGRICULTURE 
COMMUNITY EARLY RETIREMENT SrHEME FOR FARMERS 
(SUBMITTED BY THE COMMISSION) 
EXPLANATORY MEMORANDUM 
1. The attached proposed regulations embody In legislative form the 
Commission's proposals1 for measures to accompany the changes that are 
to be made to the market organization rules. Three types of action are 
proposed: 
farming and care of the environment; 
afforestation of agricultural land-, 
early retirement for farmers. 
The measures are closely linked to the market proposals in that, taken 
together, they are designed to reinforce the main thrust of the reform, 
i.e. balanced markets, stable incomes for farmers and care for the 
balance of nature and the environment. 
2. The aim of the Regulation on farming and the environment is to give 
recognition to the dual role of farmers as producers and as stewards of 
the environment and the countryside, and to encourage farming practices 
which are less intensive and more in tune with environmental 
constraints; this should also make a positive contribution to 
rebalancing markets. The Regulation on afforestation of agricultural 
land offers a commercially viable, alternative use for land while 
contributing to improved control of production, with a positive impact 
on the environment as well. The early retirement scheme is directed 
towards restructuring and will help not only to rationalize holdings so 
that farmers can adjust to the new conditions but also to ease the 
pressure of surplus output on present markets, while ensuring that the 
land is used for non-agricultural purposes compatible with the 
environment. 
3. These three accompanying measures are interconnected and linked closely 
with the changes being proposed in the market organizations. 
If there is to be better control of production, and efficiency in 
managing it, this cannot be divorced from other, increasingly sensitive 
issues such as the environment, alternative uses for land as offered by 
afforestation, the problem of ageing among farmers and the need to 
adjust farm holdings. 
There is therefore a Justified argument for financing the costs 
occasioned by these proposals within the same budget framework as the 
legislation on the market organizations. 
1 C0M(91) 258 final of 22 July 1991, part two. 
1 
4. The three measures, while requiring a voluntary commitment from 
farmers, are mandatory as far as their implementation by the Member 
States are concerned. To ensure greater flexibility and better 
adaptation to individual circumstances, which can very considerably 
between regions, the schemes are to be implementated in the form of 
multiannual operational programmes, to be drawn up by the Member States 
and the Commission acting in partnership. In all cases, the aid paid 
will be subject to maximum levels eligible for part-financing by the 
Community at a rate between 50% and 75% (the actual rate being decided 
in the context of each programme). 
I. Agriculture and the environment 
5. The agri-environment measure consists of an incentive scheme to farmers 
who undertake: 
to reduce significantly their use of polluting substances (chemical 
and organic fertilizers, pesticides, herbicides); 
to reduce numbers of livestock (cattle and sheep) where damage is 
being caused by pressure from excessive numbers; 
to employ agricultural practices that conserve or re-establish 
diversity and quality in the countryside environment (landscape, 
flora and fauna); 
to maintain abandoned land (non-farmers may be eligible if there 
are no farmers available to do this); 
to withdraw land from production for a prolonged period (twenty 
years) for environmental purposes (use as natural parks, creation 
of natural biotopes). 
The Regulation also provides for aid towards training for farmers in 
environmentally friendly production methods (not explicitly mentioned 
in the Commission's paper on the future of the common agricultural 
policy) because it is important to prepare farmers properly for the 
necessary changeover to new ways of farming. 
I I. Afforestation of agricultural land 
6. Major difficulties confront the farming sector because of the need to 
change traditional behaviour patterns and devise new approaches which 
will allow rural populations not only to develop but also to manage the 
countryside in harmony with the environment. 
Forestry measures, including afforestation of suitable farmland, can 
help to prevent the abandonment of farmland and the consequent risk of 
erosion and deterioration of the landscape. At the same time, forestry 
measures can provide alternative income sources for farmers and, in due 
course, help to reduce the Community's timber deficit. 
Experience gained with the present measures shows that aid levels are 
insufficient to cover the cost of afforestation and income losses. The 
maximum aid rates should be aligned on those of the set-aside scheme, 
which also comprises an afforestation option. This would encourage 
farmers and other interested parties to undertake farmland 
afforestation. In addition, afforestation by public bodies, including 
local authorities, should be supported in order to help resolve the 
situât ion. 
7. The measure on farmland afforestation consists of an aid scheme 
cover ing: 
investment in afforestation (including that carried out by local 
author it ies); 
the upkeep of afforested land during the first five years-, 
an allowance to offset income losses over a maximum period of 20 
years, varied according to the category of beneficiary and the 
species planted; 
the improvement of existing stands of trees. 
I I I Ear I y ret irement 
8. The need to change traditional attitudes and develop new opportunities 
in order to enable rural communities to survive and prosper is causing 
substantial difficulties for the agricultural sector. The age 
structure of the farming population poses a special problem. About two 
million farmers are over 65 years old and over two and a half million 
are between 55 and 65 years old. Half of these farmers have no 
successors. 
Two in three of the 4.6 million farmers over 55 years of age own less 
than 5 hectares. 
The medium- and long-term prospects for agriculture in the Community 
and the reform of the market support mechanisms mean that an extra 
effort of adjustment is being asked of farmers. The Commission is 
therefore proposing that the present early retirement scheme be 
overhauled and made into a more effective instrument for improving the 
viability of holdings and providing social assistance for older 
farmers. 
9. The new scheme will apply to farmers aged 55 years or more who are not 
yet in receipt of a pension (and to persons employed on the holdings 
concerned). It consists of an aid system with a maximum amount per 
holding, with the aid taking any of the following forms: 
a retirement grant, 
annual compensation not dependent on the area of land released, 
an annual allowance per hectare of released land, 
a retirement pension supplement where the amount paid under the 
national retirement scheme is too low to induce farmers to stop 
farming. 
Combinations of the above, possibly on a degressive basis, will be 
allowed, with maximum flexibility, but subject to a maximum eligible 
amount per holding. This is why a "retirement grant" has been included 
in the scheme as an alternative, although it is not mentioned in 
C0M(91) 258 final. 
4 
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Proposal 
for a Council Regulation (EEC) 
on agricultural production methods compatible 
with the requirements of the protection of the environment 
and the maintenance of the countryside 
(presented by the Commission) 
Ç 
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Proposal for a 
Council Regulation (EEC) 
on agricultural production methods compatible 
with the requirements of the protection of 
the environment and the maintenance of the countryside 
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 Commission1, 
Having regard to the opinion of the European Parliament2, 
Having regard to the opinion of the Economic and Social Committee3, 
Whereas the requirements of environmental protection are an integral part 
of the common agricultural policy; 
Whereas measures to reduce agricultural production in the Community must 
have a beneficial impact on the environment; 
Whereas many factors affect the environment; whereas it is subject to very 
diverse pressures within the Community-, 
Whereas, on the basis of an appropriate aid scheme, farmers can serve 
society as a whole by introducing or continuing to use production methods 
compatible with the increasing demands of protection of the environment and 
natural resources and upkeep of the landscape and the countryside; 
Whereas the introduction of an aid scheme to encourage substantial 
reductions in the use of fertilizers and plant protection products can help 
not only to reduce agricultural pollution but also to adapt a number of 
sectors to market requirements by encouraging less intensive production 
methods; 
1 OJ No L 
2 OJ No L 
3 OJ No L 
É 
-5-
Whereas a reduction in livestock numbers can help to avert environmental 
damage due to pressure from excessive numbers of sheep and cattle; whereas, 
therefore, the extens ification scheme for various products provided for in 
Article 3 of Council Regulation (EEC) No 2328/91 of 15 July 1991 on 
improving the efficiency of agricultural structures1 should be 
incorporated in the scheme introduced under this Regulation; 
Whereas the production of products for non-food uses under a Community set-
aside scheme must comply with the requirements of environmental protection; 
whereas, therefore, this scheme must not apply to such products; 
Whereas a scheme to encourage the introduction or maintenance of particular 
production methods may help to solve specific problems related to 
protection of the environment or the countryside and thus contribute to 
env i ronmentaI poIi cy goaI s ; 
Whereas many agricultural and rural areas in the Community are increasingly 
threatened by depopulation, soil erosion, flooding and forest fires-, 
whereas the institution of special measures to encourage the upkeep of land 
can reduce such risks; 
Whereas because of the scale of the problems such schemes should be 
applicable to all farmers in the Community who undertake to use farming 
methods which will protect, maintain or improve the environment and the 
countryside and to refrain from further intensification of agricultural 
production; 
Whereas the current set-aside scheme for arable land provided for in 
Article 2 of Regulation (EEC) No 2328/91 has been replaced by provisions in 
the market regulations-, whereas it appears none the less appropriate to 
introduce a scheme for long-term set-aside of agricultural land for 
environmental reasons; 
1 OJ L 218, 6.8.1991. p.1. 
> 
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Whereas the measures provided for in this Régulât ion must encourage farmers 
to make undertakings regarding farming methods compatible with the 
requirements of environmental protection and maintenance of the 
countryside, and thereby to contribute to balancing the market; whereas 
the measures must compensate farmers for any income losses caused by 
reductions in output and/or increases in costs; 
Whereas the introduction by the Member States of codes of good agricultural 
practice can also help to make farming methods more compatible with the 
requirements of environmental protection; 
Whereas because of the diversity of the environment, natural conditions and 
the structure of agriculture in the various parts of the Community the 
measures may have to be adapted; whereas they should therefore be 
implemented within the framework of zonal programmes for the management of 
agricultural or abandoned land; 
Whereas both the Community and the Member States must increase their effort 
to educate and inform farmers about the introduction of production methods 
compatible with the environment, and in particular regarding the 
application of a code of good farming practice; 
Whereas in order to guarantee the maximum effectiveness of such programmes 
it is vital to ensure that the results are disseminated and monitored 
regularly; 
Whereas such measures must contribute towards certain specific 
environmental goals set out in Community legislation; 
Whereas, given that the Community is to contribute to the financing of the 
scheme, it must be able to ascertain that the implementing arrangements 
adopted by the Member States contribute towards the attainment of its 
objectives; whereas the structure of cooperation between the Member States 
and the Commission introduced by Article 29 of Council Regulation (EEC) No 
4253/88 of 19 December 1988 laying down provisions for implementing 
Regulation (EEC) No 2052/88 as regards coordination of the activities of 
the different structural Funds between themselves and with the operations 
of the European Investment Bank and the other existing financial 
instruments2 should be used for this purpose, 
Whereas the resources available for implementing the measures provided for 
in this Regulation must be additional to those available for the 
implementation of measures under the rules governing the structural Funds, 
and in particular for measures applicable in regions covered by Objectives 
1 and 5(b) as defined in Article 1 of Regulation (EEC) No 2052/88, 
2 OJ No L 374, 31.12.1988, p. 1 
? 
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HAS ADOPTED THIS REGULATION: 
Art icle 1 
PURPOSE 
In order to: 
- accompany the changes to be introduced under the market organization 
rules; 
- contribute to the achievement of the Community's policy objectives 
regarding agriculture and the environment; 
- contribute to providing an appropriate income to farmers, 
a Community aid scheme part-financed by the Guarantee Section of the 
European Agricultural Guidance and Guarantee Fund (EAGGF) is hereby 
instituted to promote: 
(a) the use of farming practices which reduce the polluting effects of 
agriculture, thereby also contributing, through a reduction in 
production, to improved market balance; 
(b) the extensif icat ion of crop farming and sheep and cattle farming-, 
(c) ways of using agricultural land which are compatible with 
protection and improvement of the environment, the countryside, the 
landscape and the soil, and the preservation of local breeds in 
danger of extinction; 
(d) the upkeep of abandoned farmland and woodlands where this is 
necessary for environmental reasons or because of natural hazards 
and fire risks, and thereby avert the dangers associated with the 
depopulation of agricultural areas; 
(e) long-term set-aside of agricultural land for reasons connected with 
the environment; 
(f) education and training for farmers in types of farming compatible 
with the requirements of environmental protection and upkeep of the 
countryside. 
<? 
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Art icle 2 
AID SCHEME 
1. The scheme may include aid for farmers who undertake: 
(a) to reduce substantially their use of fertilizers and/or plant 
protection products, or to keep to the reductions already made; 
(b) to change, by means other than those referred to in the first 
indent, to more extensive forms of crop production, including 
forage production, or to maintain extensive production methods 
introduced in the past-, 
(c) to reduce sheep and cattle numbers-, 
(d) to use other production methods compatible with the requirements of 
protection of the environment and natural resources, as well as 
maintenance of the countryside and the landscape, or to rear 
animals of local breeds in danger of extinction; 
(e) to ensure the upkeep of abandoned farmland or woodlands; 
(f) to set aside farmland for at least 20 years with a view to its use 
for purposes connected with the environment, in particular for the 
establishment of biotope reserves or natural parks. 
2. In addition, the scheme may include measures to improve the training of 
farmers with regard to farming practices compatible with the 
environment. 
Ao 
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Article 3 
AID PROGRAMMES 
1. Member States shall implement, throughout their territories, the aid 
scheme provided for in Article 2 by means of multiannual zonal 
programmes covering the objectives referred to in Article 1. The 
programmes shall reflect the diversity of environmental situations, 
natural conditions, agricultural structure and the main types of farming 
practised. 
2 Each zonal programme shall cover an area which is homogeneous in terms 
of the environment and the countryside and shall include, in principle, 
all of the aids provided for in Article 2. 
However, where there is sufficient Justification, programmes may be 
restricted to aids which are in line with the specific characteristics 
of an area. 
3. Zonal programmes shall be drawn up for a minimum period of five years 
and must contain at least the following information: 
(a) a definition of the geographical area and, where applicable, the 
subareas concerned; 
(b) a description of the natural, environmental and structural 
characteristics of the area; 
(c) a description of the proposed objectives and their Justification in 
view of the characteristics of the area; 
(d) the conditions of grant of aid, taking into account the problems 
encountered; 
(e) an estimate of annual expenditure for implementing the zonal 
programme. 
M 
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Article 4 
NATURE AND AMOUNTS OF AID 
1. An annual allowance per hectare or livestock unit removed from a herd 
shall be granted to farmers who make one or more of the undertakings 
referred to in Article 2 for at least five years, in accordance with the 
programme applicable in the zone concerned. In the case of set-aside, 
the undertaking shall be for 20 years. 
2. The maximum eligible amount of the allowance is: 
- ECU 150 for annual crops for which an allowance per hectare is granted 
under the market regulations governing the crops in question-, 
- ECU 250 for other annual crops and pasture; 
- ECU 210 for each sheep or cattle livestock unit by which a herd is 
reduced; 
- ECU 100 for each livestock unit of an endangered breed reared; 
- ECU 400 for specialized olive groves; 
- ECU 1 000 for citrus fruits; 
- ECU 700 for other perennial crops and wine; 
- ECU 250 for the upkeep of abandoned land; 
- ECU 600 for land set aside. 
Livestock numbers shall be converted to livestock units on the basis of 
the conversion table in the Annex. 
3. The maximum eligible amount for annual crops and pasture shall be 
increased to ECU 350 per hectare if the farmer has, at the same time and 
for the same area, made one or more of the undertakings referred to in 
Article 2(1)(a) or (b), together with an undertaking as referred to in 
Article 2(1)(d). 
4. Where an allowance is granted for the reduction of the number of 
Iivestock units: 
- the aids provided for in Article 2(1)(a) and (b) may not be granted 
for the forage area of of the holding; 
- the maximum eligible amount of an allowance for forage areas under 
Article 2(1)(d) shall be reduced by 50%. 
a 
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5. Subject to conditions to be determined by the Commission in accordance 
with the procedure laid down in Article 29 of Regulation (EEC) No 
4253/88, the Community may contribute to the allowances referred to in 
the preceding paragraphs which are granted by Member States in order to 
compensate for income losses resulting from the mandatory application of 
the restrictions referred to in Article 2 in the context of measures 
implemented in the Member States pursuant to Community provisions. 
43 
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Art icle 5 
CONDITIONS OF GRANT 
1. In order to achieve the objectives of this Regulation in the context of 
the zonal programmes, Member States shall determine, in compliance with 
the provisions laid down herein: 
(a) the conditions for granting aid-, 
(b) the amount of aid to be paid, on the basis of the undertaking made 
by the beneficiary and of the loss of income, and of the need to 
provide an incentive; 
(c) the terms on which the aid for the upkeep of abandoned land as 
referred to in the fifth indent of Article 2 may be granted to 
persons other than farmers, where no farmers are available; 
(d) the conditions to be met by the beneficiary to ensure that 
compliance with the undertakings may be verified and monitored; 
(e) the terms on which the aid may be granted where the farmer 
personally is unable to make an undertaking for the minimum period 
required. 
2. No aid may be granted under this Regulation in respect of areas subject 
to the Community set-aside scheme which are being used for the 
production of non-food products. 
3. While ensuring that the measure serves as an incentive, Member States 
may restrict the aid to a maximum amount per holding and differentiate 
it according to holding size. 
Ah 
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Article 6 
COURSES, TRAINEESHIPS AND DEMONSTRATION PROJECTS 
Where no financing is granted under Article 28 of Regulation (EEC) No 
2328/913, Member States may introduce a separate aid scheme for 
training courses and traineeships concerned with farming practices 
compatible with the requirements of protection of the environment and 
natural resources and maintenance of the countryside and the landscape, 
and particularly with codes of good farming practice or good organic 
farming pract ice. 
The aid scheme shall include the grant of aid: 
- for attendance of courses and traineeships; 
- for the organization and implementation of courses and traineeships. 
The expenditure incurred by the Member States in granting the aid 
referred to in the previous subparagraph shall be eligible up to 
ECU 2 500 per person completing a full course or traineeship. 
The measure concerned by this Article shall not cover courses or 
traineeships which are part of normal programmes or curricula of 
secondary or higher agricultural education. 
The Community may contribute to demonstration projects concerning 
farming practices compatible with the requirements of environmental 
protection, and in particular the application of a code of good farming 
practice. 
The Community contribution referred to in the previous subparagraph may 
cover assistance for training and education initiatives organized by 
local or non-governmental organizations competent in this field. 
3 OJ No L 218, 6.8.1991, p. 1 
ti 
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Articie 7 
PROGRAMME APPRAISAL PROCEDURE 
1. Member States shall communicate to the Commission, by ... (within 12 
months of the entry into force of this Regulation), the draft programmes 
referred to in Article 3 and any existing or proposed laws, regulations 
or administrative provisions by which they intend to apply this 
Régulât ion. 
2. The Commission shall examine the texts communicated in order to 
determine: 
- their compliance with this Regulation, taking account of its 
objectives and the links between the various measures, 
- the nature of the measures eligible for part-financing, 
- the total amount of expenditure eligible for part-financing, 
- the rate of Community part-financing for the whole of the programme, 
up to 50%. The rate may be Increased to 75% in Objective 1 regions. 
3. The Commission shall decide on the approval of the zonal programmes and 
the rates of Community part-financing, on the basis of the factors 
listed in paragraph 2 and in accordance with the procedure laid down in 
Article 29 of Regulation (EEC) No 4253/88. 
Art icle 8 
DETAILED RULES OF APPLICATION 
Detailed rules for the application of this Regulation shall be adopted by 
the Commission in accordance with the procedure laid down in Article 29 of 
Regulation (EEC) No 4253/88. 
3) 4l> 
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Article 9 
FINAL PROVISIONS 
1. This Regulation shall not preclude Member States from implementing, 
except in the field of application of Article 5(2), other aid measures, 
subject to conditions of grant other than those laid down herein and 
amounts exceeding the limits stipulated herein, provided that the said 
measures comply with the objectives of this Regulation and with Articles 
92, 93 and 94 of the Treaty. 
2. Three years after the date of entry into force in the Member States, the 
Commission shall present a report to the European Parliament and the 
Council on the application of this Regulation. 
Art icle 10 
REPEAL OF PROVISIONS 
1. Article 3 of Regulation (EEC) No 2328/91, dealing with extensification 
of production, is repealed. It shall remain applicable to undertakings 
made before the entry into force of this Regulation. 
2. Articles 21 to 24 of Regulation (EEC) No 2328/91, dealing with aid in 
environmentally sensitive areas, are repealed. They shall remain 
applicable to aid granted before that date, and the maximum eligible 
amounts shall be adjusted in line with the amounts provided for in 
Article 3(1). 
A}-
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Article 11 
ENTRY INTO FORCE 
This Regulation shall enter into force on 
This Regulation shall be binding in its entirety and directly applicable in 
a 11 Member States. 
4* 
ANNEX 
Table for converting cattle, equines, sheep and goats into livestock units (LU) (referred to in Article J/ 
Bulls, cows and other bovine animals over two years, equines over six months 1.0 LU 
Bovine animals from six months to two years 0.6 LU 
Sheep 0.15 LU 
Goats 0.15 LU 
The coefficients relating to sheep and goats apply to the maximum and minimum amounts per livestock unit as 
defined in Article Lf thl 
A°> 
Proposal for a 
COUNCIL REGULATION (EEC) No /.. 
instituting a Community aid schema for 
forestry measures in agriculture 
presented by the Commission 
2JO 
Proposal for a 
COUNCIL REGULATION (EEC) No /.. 
instituting a Community aid scheme for 
forestry measures in agriculture 
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 Commission1, 
Having regard to the opinion of the European Parliament2, 
Having regard to the opinion of the Economic and Social Committee3, 
Whereas the afforestation of agricultural land is important both from the point 
of view of soil use and the environment and as an accompaniment to the 
Community's policy for containing agricultural production; 
Whereas experience in matters of afforestation of agricultural land by farmers 
shows that existing aid schemes for promoting afforestation are insufficient; 
whereas afforestation of agricultural land withdrawn from agricultural 
production in recent years has proved unsatisfactory; 
1 OJ C ... 
2 OJ C ... 
3 OJ C ... 
2-\ 
Whereas, therefore, the measures provided for in Title VI I I of Council 
Regulation (EEC) No 2328/91 of 15 July 1991 on improving the efficiency of 
agricultural structures4 should be replaced by measures which provide more 
effective encouragement to afforestation of agricultural land; 
Whereas the eligible amounts of the costs of afforestation must correspond to 
the effective costs of afforestation observed in the Community; 
Whereas a degressive allowance for the first five years to alleviate the cost of 
maintenance of new woodlands may contribute significantly towards the 
encouragement of afforestation; 
Whereas in order to increase afforestation of agricultural land as a way of 
furthering the aims of the CAP it is necessary to introduce allowances to 
compensate for the income loss incurred by farmers during the non-productive 
period of afforested agricultural land; 
Whereas in many cases private persons other than farmers will be in a position 
to undertake afforestation of agricultural land; whereas provision should be 
made for incentives to be offered to such persons-, whereas, therefore, an 
allowance per hectare should be introduced for the benefit of private persons 
other than farmers who undertake afforestation of agricultural land; 
Whereas in many parts of the Community afforestation of agricultural land may be 
undertaken by public authorities, in particular local authorities; whereas, 
therefore, afforestation schemes undertaken by such authorities should be 
supported and reinforced; 
Whereas eucalyptus and Christmas tree plantations are generally fairly 
profitable; whereas, therefore, for afforestation with these species, it is 
sufficient to provide Community assistance for afforestation costs incurred by 
farmers practising farming as a main occupation; 
OJ L 218, 6.8.1991, p.1 
2*. 
Whereas the improvement of existing farm woodlands can help to improve the 
incomes of persons employed in farming-, whereas, in particular, because of the 
structural and other problems affecting cork production, measures to improve 
existing cork oak stands should be reinforced; 
Whereas, given that the Community is to contribute to the financing of the 
measure, it must be able to ascertain that the implementing arrangements adopted 
by the Member States contribute towards the attainment of its objectives; 
whereas, for this purpose, a structure of cooperation should be set up between 
the Member States and the Commission in the Standing Forestry Committee set up 
by Council Decision 89/367/EEC5-, 
Whereas the resources available for implementing the measures provided for in 
this Regulation must be additional to those available for the implementation of 
measures under the rules governing the structural Funds, and in particular for 
measures applicable in regions covered by Objectives 1 and 5(b) as defined in 
Article 1 of Regulation (EEC) No 2052/88, 
HAS ADOPTED THIS REGULATION 
Article 1 
PURPOSE 
In order to: 
- accompany the changes to be introduced under the market organization rules, 
- contribute towards an eventual improvement in forest resources, 
- contribute towards forms of countryside management more compatible with 
environmental balance, 
OJ No L 165, 15.6.1989, p. 14. 
23 
a Community aid scheme part-financed by the Guarantee Section of the European 
Agricultural Guidance and Guarantee Fund (EAGGF) is hereby instituted to 
promote: 
(a) afforestation as an alternative use of agricultural land, 
(b) the development of forestry activities on farms. 
Article 2 
AID SCHEME 
1. The aid scheme may comprise-. 
(a) aid for afforestation costs; 
(b) an annual allowance per hectare afforested to cover maintenance costs 
in the first five years; 
(c) an annual allowance per hectare to cover losses of income resulting 
from afforestation of agricultural land; 
(d) investment aid for the improvement of woodlands by the provision of 
shelterbelts, firebreaks, waterpoints and forest roads, and for the 
improvement of cork oak stands. 
2. (a) Aid as referred to in paragraph 1(a) and (b) may be granted to any 
natural or legal person undertaking afforestation of agricultural land. 
(b) Aid as referred to in paragraph 1(c) shall be eligible only if it is 
granted to: 
- farmers not qualifying under the early retirement scheme introduced by 
Regulation (EEC) No .. instituting a Community aid scheme for early 
retirement from farming6 
- any other private-law natural or legal person. 
OJ L .. 
24 
(c) In the case of eucalyptus and Christmas tree plantations, aid as 
referred to in paragraph 1(a) shall be eligible only if it is granted to 
farmers practising farming as a main occupation in accordance with Article 
5(1)(a) of Regulation (EEC) No 2328/91. 
(d) Aid as referred to in paragraph 1(d) shall be eligible only if it is 
granted to farmers or associations thereof. 
3. The scheme may also comprise a Community contribution to the costs of 
afforestation of agricultural land undertaken by the competent public 
authorities of the Member States. 
Art icle 3 
AMOUNT OF AID 
The maximum eligible amounts of aid as referred to in Article 2 are as follows: 
(a) in the case of afforestation costs: 
- ECU 2000 per hectare for plantations of conifers and eucalyptus 
- ECU 4000 per hectare for plantations of broadleaves or mixed plantations 
comprising not less than 75% of broadleaves. 
(b) in the case of maintenance costs: 
- ECU 250 per hectare per year for the first two years and ECU 150 per 
hectare per year for the following years in the case of conifer 
plantât ions; 
- ECU 500 per hectare per year for the first two years and ECU 300 per 
hectare per year for the following years in the case of broadleaf 
plantations or mixed plantations comprising not less than 75% broadleaves. 
is 
(c) in the case of the allowance to compensate for income losses: 
- ECU 600 per hectare per year if the afforestation is undertaken by a 
farmer -, 
- ECU 150 per hectare per year if the afforestation is undertaken by 
another party as referred to in Article 2(2)(b), 
for a maximum period of 20 years from the date of first afforestation. 
(d) in the case of improvements of existing woodlands: 
- ECU 700 per hectare for woodland improvement and the provision of 
shelterbelts; 
- ECU 1400 per hectare for renovation and improvement of cork oak stands; 
- ECU 18 000 per kilometre for forest roads; 
- ECU 150 per hectare of woodland provided with firebreaks and waterpoints, 
The cost of adapting agricultural machinery for forestry work shall be 
included in the investment referred to in the first paragraph. 
At the justified request of a Member State and subject to the availability 
of funds, the Commission may decide, in accordance with the procedure laid 
down in Article 5, to increase the amounts laid down for woodland 
improvements and for the renovation and improvement of cork oak stands to 
ECU 1200 per hectare and ECU 3000 per hectare respectively. 
Article 4 
AID PROGRAMMES 
1. Member States shall implement the aid scheme referred to in Article 2 by 
means of multiannual zonal programmes covering the objectives laid down in 
Article 1. Zonal programmes shall reflect the diversity of environmental 
situations, natural conditions and the structure of agriculture. 
26 
2. Zonal programmes shall contain the following information: 
- conditions in respect of the location and grouping of areas which may be 
afforested; 
- measures taken to lay down afforestation conditions and syIv(cultural 
practices to be complied with; 
- the amounts of aid; 
- measures taken to evaluate and monitor environmental impact; 
- details of any accompanying measures taken or planned; 
- an estimate of the annual cost of implementing the programme. 
Art icle 5 
PROGRAMME APPRAISAL PROCEDURE 
1. Member States shall communicate to the Commission, by ... (within 12 months 
of the entry into force of this Regulation), the draft zonal programmes 
referred to in Article 4 and any existing or proposed laws, regulations or 
administrative provisions by which they intend to apply this Regulation. 
2. The Commission shall examine the texts communicated by the Member States in 
order to determine: 
- their compliance with this Regulation, taking account of its objectives 
and the links between the various measures; 
- the nature of the measures eligible for part-financing; 
- the total amount of expenditure eligible for part-financing; 
- the rate of Community part-financing for the whole of the programme, up 
to 50%. The rate may be increased to 75% in Objective 1 regions. 
"2* 
3. The Commission shall decide on the approval of zonal programmes, including 
the rates of Community part-financing, on the basis of the factors listed 
in paragraph 2. For this purpose the Commission representative shall 
submit to the Standing Forestry Committee set up by Council Decision 
89/367/EEC a draft decision on the matter. 
The Committee shall deliver its opinion on the draft within a time limit 
which the chairman may lay down according to the urgency of the matter. The 
opinion shall be delivered by the majority laid down in Article 148(2) of 
the Treaty in the case of decisions which the Council is required to adopt 
on a proposal from the Commission. The votes of the representatives of the 
Member States within the committee shall be weighted in the manner set out 
in that Article. The chairman shall not vote. 
The Commission shall adopt measures which shall apply immediately . 
However, if these measures are not in accordance with the opinion of the 
committee, they shall be communicated by the Commission to the Council 
forthwith. In that event the Commission may defer application of the 
measures which it has decided for a period of not more than one month from 
the date of such communication. 
The Council, acting by a qualified majority, may take a different decision 
within the time limit referred to in the previous paragraph . 
Art icle 6 
DETAILED RULES OF APPLICATION 
Detailed rules for the application of this Regulation shall be adopted by the 
Commission in accordance with the procedure laid down in Article 5. 
z?> 
Article 7 
FINAL PROVISIONS 
1. Articles 25, 26 and 27 of Regulation (EEC) No 2328/91 are repealed. They 
shall remain applicable to aid granted before the entry into force of this 
Régulât ion. 
2. This Régulât ion shall not preclude Member States from implementing in the 
same field of application other aid measures, subject to conditions of 
grant other than those laid down herein and amounts exceeding the limits 
stipulated herein, provided that the said measures comply with the 
objectives of this Regulation and with Articles 92, 93 and 94 of the 
Treaty. 
Art icle 8 
ENTRY INTO FORCE 
This Regulation shall enter into force on ... 
This Regulation shall be binding in its entirety and directly applicable in a 
Member States. 
Done at .. , For the Counci 
The President 
z/? 
-3-
Proposal for a 
COUNCIL REGULATION (EEC) 
instituting a Community aid scheme 
for early retirement from farming 
presented by the Commission 
lo 
-4-
Proposai for a 
COUNCIL REGULATION (EEC) 
instituting a Community aid scheme 
for early retirement from farming 
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 Commission1, 
Having regard to the opinion of the European Parliament2, 
Having regard to the opinion of the Economic and Social Committee**, 
Whereas, given the medium-to-long term outlook for Community agriculture 
and the reform of the market support mechanisms, a greater effort of 
adjustment is being required of farmers; 
Whereas early retirement from farming should be encouraged in order to 
improve the viability of agricultural holdings; 
Whereas an aid scheme for early retirement can help to provide an income 
for elderly farmers who decide to stop farming, to encourage the 
replacement of such elderly farmers by farmers able to improve the 
viability of the remaining agricultural holdings and to allow the 
reassignment of agricultural land to non-agricultural uses where there are 
no farmers likely to take it over in satisfactory conditions of viability; 
1 OJ L... 
2 OJ C. 
3 OJ C. 
lA 
-5-
Whereas elderly family helpers and paid workers may lose their employment 
and income if the agricultural holding employing them ceases to operate; 
whereas provision should therefore be made for an income source for such 
persons; 
Whereas to ensure the effectiveness of the scheme aid should be provided 
for setting up services and networks to organize the transfer and expansion 
of agricultural holdings and the rational use of the countryside; 
Whereas the diversity of the causes, nature and gravity of the structural 
problems in agriculture may call for solutions differentiated according to 
the region concerned and adaptable over time; whereas a contribution must 
be made to the overall economic and social development of each region 
concerned; whereas the best results will be obtained if Member States, 
applying Community criteria, implement the scheme in the form of 
multiannual programmes drawn up in consultation with the Commission, and 
adopt the laws, regulations and administrative provisions necessary for 
their implementation; 
Whereas a procedure should be laid down for adopting, where necessary, 
detailed rules for the application of this Regulation, especially as 
regards monitoring arrangements, 
Whereas the resources available for implementing the measures provided for 
in this Regulation must be additional to those available for the 
implementation of measures under the rules governing the structural Funds, 
and in particular for measures applicable in regions covered by Objectives 
1 and 5(b) as defined in Article 1 of Regulation (EEC) No 2052/884, 
HAS ADOPTED THIS REGULATION: 
4 OJ No L 185, 15.7.1988, p. 9. 
3^ 
-6-
Art icle 1 
PURPOSE 
1. In order to accompany the changes to be introduced under the market 
organization rules a Community aid scheme for early retirement from 
farming, part-financed by the Guarantee Section of the European 
Agricultural Guidance and Guarantee Fund (EAGGF), is hereby instituted. 
2. Early retirement aid shall contribute simultaneously to the following 
object ives: 
(a) providing an income for elderly farmers who decide to stop farming; 
(b) encouraging the replacement of such elderly farmers by farmers able 
to improve the economic viability of the remaining agricultural 
holdings; 
(c) reassigning agricultural land to non-agricultural uses where it 
cannot be farmed in satisfactory conditions of viability. 
3. Early retirement aid may comprise measures to: 
(a) provide an income for elderly family helpers and paid farm workers 
who lose their employment as a result of a farmer's early retirement; 
(b) organize the transfer and expansion of agricultural holdings and 
ensure rational use of the countryside. 
33 
-7-
Article 2 
DEFINITIONS 
For the purposes of this Regulation, 
'transferor' means a farmer who stops all commercial farming activity 
definitively pursuant to this early retirement aid scheme-, 
'worker' means a family helper or paid farm worker who was employed on a 
transferor's agricultural holding before his early retirement and who 
stops all farm work definitively; 
'farming transferee' means a farmer who succeeds the transferor at the 
head of the agricultural holding and expands it on the same occasion, or 
a farmer who takes over ail or part of the land released by a transferor 
in order to expand his own agricultural holding; 
'non-farming transferee' means any other person or body who takes over 
all or part of the released land to use it for non-agricultural 
purposes, afforestation or the creation of ecological reserves; 
'released land' means land which was farmed by a transferor before he 
stopped farming commercially and is no longer farmed by him-, 
'farming as a main occupation' means farming in accordance with Article 
5(1)(a) of Council Regulation (EEC) No 2328/91 of 15 July 1991 on 
improving the efficiency of agricultural structures1-, 
1 OJ No L 218, 6.8.1991, p.1 . 
i4 
-8-
Art icle 3 
AID SCHEME 
1. Early retirement aid granted to transferors may take the following 
forms: 
(a) retirement grant, 
(b) annual compensation not dependent on the area of land released, 
(c) annual allowance per hectare of released land, 
(d) retirement pension supplement where the amount paid under the 
national retirement scheme is too low to induce farmers to stop farming. 
These forms of aid may be combined and may be paid in degressive annual 
amounts. 
The total amount eligible for part-financing per holding shall be 
calculated on the basis of the following reference method: 
(a) aid is paid, from the age of early retirement to the normal 
retirement age, in the form of annual compensation at a rate of 
ECU 4 000 per holding, plus an annual allowance of ECU 250 per hectare, 
up to a maximum annual total of ECU 10 000 per holding; 
(b) aid is paid, as appropriate, in the form of an annual supplement to 
the normal retirement pension paid by the Member State in order to 
arrive at the same annual total amount as that specified in (a); 
(c) the duration of payment of aid as defined in (a) and (b) does not 
exceed 10 years and does not continue after the transferor's seventieth 
birthday. 
Member States may use a method of payment different from the reference 
method defined in the preceding subparagraph, consisting in the payment 
of smaller annual amounts, on a degressive scale and for a period 
exceeding 10 years or continuing beyond the transferor's seventieth 
birthday. In such cases, the amount eligible for part-financing shall 
V 
-9-
not exceed the amount which would be obtained by using the method of 
reference. 
3é? 
-10-
Furthermore, where the aid scheme includes a retirement grant, the 
maximum amount of the grant eligible for part-financing shall not exceed 
ECU 12 000, plus ECU 750 per hectare of released land, up to a limit of 
ECU 30 000 per holding; this amount shall be considered as within the 
total amount eligible for part-financing calculated by the reference 
method. 
2. Early retirement aid granted to workers may take the following forms: 
(a) retirement grant, 
(b) annual compensation. 
These forms may be combined. 
The total amount eligible for part-financing per worker shall be 
calculated on the basis of the following reference method: 
(a) aid is paid, from the age of early retirement to the normal 
retirement age, in the form of annual compensation at a rate of 
ECU 2 500 per worker -, 
(b) the duration of payment of compensation as referred to in (a) does 
not exceed 10 years and does not continue after the worker's normal 
retirement age. 
Member States may use a method of payment different from the reference 
method defined in the preceding subparagraph, consisting in the payment 
of smaller annual amounts, on a degressive scale and for a period 
exceeding 10 years or continuing beyond the worker's normal retirement 
age. In such cases, the amount eligible for part-financing shall not 
exceed the amount which would be obtained by using the method of 
reference. Furthermore, where the aid scheme includes a retirement 
grant, the amount of the grant eligible for part-financing shall not 
exceed ECU 7 500 per worker; this amount shall be considered as within 
the total amount eligible for part-financing calculated by the reference 
method. 
3ï-
-11-
Early retirement aid shall be eligible for part-financing by the 
Community for two workers per agricultural holding. 
3. Member States may grant start-up aid for services and networks 
responsible, within the context of the programme, for organizing the 
transfer and expansion of agricultural holdings and the rational use of 
the countryside; such aid shall be intended to contribute towards 
operat ing costs. 
The services may carry out surveys of agricultural holdings to be 
transferred, compile a directory of land and agricultural holdings 
available or wanted, and draw up documents relevant to the planning of 
the use of land released by transferors. They may also take charge of 
released land and reconvey it at a later date to a transfeeree 
satisfying the conditions laid down in this Regulation. 
To qualify for aid such services must be approved by the Member State 
and employ at least one full-time person fully qualified for the duties 
he must perform. 
The start-up aid eligible for part-financing by the Community is 
ECU 36 000 per full-time employee. Payment of this amount shall be 
spread over the first five years of employment of each person. 
38 
-12-
Article 4 
AID PROGRAMMES 
1. Member States shall implement the aid scheme throughout their territory 
by means of multiannual programmes drawn up at national or regional 
level. 
2. Each programme shall include the following: 
- the geographical limits of the area covered; 
- a description of the structural situation of the area, including 
statistical data on the number of agricultural holdings, by size and by 
age of farmer, and on incomes; 
- a description of the early retirement and retirement schemes existing 
in the area, the degree of take-up in recent years and problems 
encountered; 
-an indication, with explanatory comments, of the rates and conditions 
of grant of aid, by type of beneficiary; 
- an estimate of the number of transferors, transferees and workers who 
will be concerned by such aid; 
- an estimate of the number of hectares which will be released by the 
transferors and the proportions which will be transferred to farming 
transferees (successors or other farmers) and non-farming transferees; 
-an estimate of the expected costs of the various types of aid envisaged 
and the financial means required, together with the expected schedule of 
expenditure; 
- the proposed timetable for implementing the various types of aid. 
3"? 
-13- s 
Article 5 
CONDITIONS APPLICABLE TO PERSONS CONCERNED 
Grant of aid shall be subject to the following conditions: 
(1) A transferor must: 
- be not less than 55 years old but not yet of normal retirement age; 
- have practised farming as a main occupation for the ten years 
preceding transfer; 
(2) A farming transferee must: 
- have worked on an agricultural holding for at least the two-year 
period prior to the transfer of the released land, and have devoted at 
least half of his/her working time to farming during that period; 
- undertake to practise farming as a main occupation on the agricultural 
holding for not less than 5 years in accordance with the conditions laid 
down in Article 6(3) and (4); 
(3) A worker must 
- be not less than 55 years old but not yet of normal retirement age-, 
- stop farming completely and definitively after having devoted at least 
half of his/her working time to it during the preceding five years; 
- have worked on the transferor's agricultural holding for at least the 
two-year period prior to the early retirement of the transferor-, 
- belong to a social security scheme; 
(4) A non-farming transferee must 
- undertake to use the land in accordance with Article 6(5). 
Ao 
-14-
Article 6 
CONDITIONS APPLICABLE TO RELEASED LAND 
1. The conditions laid down in this Article must be applied throughout the 
period during which the transferor receives early retirement aid. 
2. Transferors may continue farming a maximum of 10%, but not more than one 
hectare, of their agricultural land provided that they stop commercial 
production completely. 
3. The size of the agricultural holdings resulting from the transfer of 
land released by the transferor must be increased so as to improve their 
economic viability, in compliance with conditions to be defined by the 
Member States as regards, for instance, area, volume of work or income, 
according to the region and type of production. 
4. Released land transferred to farming transferees must be farmed for not 
less than five years, in harmony with the requirements of environmental 
protect ion. 
5. Released land transferred to non-farming transferees must be used in a 
manner compatible with protection of the quality of the environment and, 
if necessary, maintained in such a way as to preserve the countryside. 
6. Released land may be included in a reparcelling operation or an exchange 
of parcels. In such cases, the conditions laid down in this Article 
must be applied to areas equivalent to those of the released land. 
Released land may be taken in charge by a body which undertakes to 
reconvey it at a later date to a transferor who satisfies the conditions 
laid down in this Regulation. 
U 
-15-
Art icle 7 
NATIONAL PROVISIONS 
1. Member States shall adopt the necessary laws, regulations and 
administrative provisions to implement the programme. They must ensure: 
- that the programme is sufficiently attractive compared with early 
retirement schemes already existing in the area of application-, 
- the ease of transfer of released land, in particular by encouragement 
of appropriate forms of tenancy in cases where the transferee is unable 
to purchase the released land, 
- that land purchase or rental contracts contain clauses requiring 
compliance with the conditions laid down in Article 6 regarding use of 
the land; 
- the establishment of services and networks responsible for organizing 
the transfer and expansion of agricultural holdings and the rational use 
of the countryside. 
- a progressive transition from the Community early retirement aid 
scheme to the national retirement scheme. 
2. This Regulation shall not preclude Member States from implementing other 
aid measures, subject to conditions of grant other than those laid down 
herein and amounts exceeding the limits stipulated herein, provided that 
the said measures comply with the objectives of this Regulation and with 
Articles 92, 93 and 94 of the Treaty. 
V 
-16-
Art icle 8 
PROGRAMME APPRAISAL 
1. Member States shall communicate to the Commission, by ... (within 6 
months of the entry into force), the draft aid programmes and any 
existing or proposed national provisions. 
2. The Commission shall examine the texts communicated by the Member States 
in order to determine: 
- their compliance with this Regulation, taking account of its 
objectives and the links between the various measures; 
- the nature of the measures eligible for part-financing-, 
- the total amount of expenditure eligible for part-financing; 
- the rate of Community part-financing for the whole of the programme, 
up to 50%. The rate may be increased to 75% in Objective 1 regions. 
3. The Commission shall decide on the approval of the programmes, including 
the rate of Community part-financing, in accordance with the procedure 
laid down in Article 29 of Regulation (EEC) No 4253/88. 
Art icle 9 
DETAILED RULES OF APPLICATION 
Detailed rules for the application of this Regulation shall be adopted by 
the Commission in accordance with the procedure laid down in Article 29 of 
Regulation (EEC) No 4253/88. 
<i3 
-17-
Artlcle 10 
FINAL PROVISION 
Regulation (EEC) No 1096/881 is repealed. It shall remain applicable to 
aid granted before... 
Article 11 
ENTRY INTO FORCE 
This Regulation shall enter into force on 
This Regulation shall be binding in its entirety and directly applicable in 
a I I Member States. 
Done at ... , For the Council 
The President 
1 OJ No L 110, 29.4.1988, p. 1. 
kh 
VI/G/5 (DT/5805/tab10en) 23.10.91.(AW/tz) 
SUMMARY TABLE SHOWING FiNANCIAL PROFILE OF THE SUPPORTING MEASURES 
(MECU) 
Early retirement : EAGGF contribution 
Environment 
EAGGF contribution (average 60X) 
- fertiliser reductlon/estensIfIcatlon 
- protection of the environment 
- care of abandoned agricultural land 
- land set-aside 
- training 
- total 
Forestry 
TOTAL COST FOR EAGGF 
REDUCED EAGGF EXPENDITURE : land set-aside 
NET COST FOR EAGGF 1993 
34 
6 
17 
20 
55 
132 
-
132 1994 
203 
24 
72 
84 
18 
2 
200 
80 
483 
-180 
303 1995 
456 
49 
146 
170 
18 
2 
385 
109 
950 
-180 
770 1996 
601 
80 
236 
275 
18 
2 
611 
149 
1361 
-180 
1181 1997 
706 
122 
360 
420 
18 
2 
922 
202 
1830 
-180 
1650 Total 
(5 years) 
2000 
281 
831 
969 
72 
8 
2161 
595 
4756 
-720 
4036 

ISSN 0254-1475 
COM (91)415 final 
DOCUMENTS 
EN 03 
Catalogue number : CB-CO-91-469-EN-C 
ISBN 92-77-76806-1 
Office for Official Publications of the European Communities 
L-2985 Luxembourg