No C 240/6 Official Journal of the European Communities 20. 9. 89 
II 
(Preparatory Acts) 
COMMISSION 
Proposal for a Council Regulation (EEC) amending Regulations (EEC) No 797/85, (EEC) 
No 1096/88, (EEC) No 1360/78, (EEC) No 389/82 and (EEC) No 1696/71 with a view to 
speeding up the adjustment of agricultural production structures 
(COM(89) 91 final) 
(Submitted by the Commission on 19 May 1989) 
(89/C 240/05) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Articles 42 and 
43 thereof, laid down by 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 instruments (5), and in conformity with Regu­
lation (EEC) No 4256/88 itself; 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European 
Parliament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas Article 1 (3) of Council Regulation (EEC) No 
4256/88 of 19 December 1988 laying down provisions 
for implementing Regulation (EEC) No 2052/88 as 
regards the EAGGF Guidance Section (*) provides that 
the Council is to decide before 31 December 1989 on 
any alterations to the common measures introduced 
under Article 6 of Council Regulation (EEC) No 729/70 
of 21 April 1970 on the financing of the common agri­
cultural policy O, as last amended by Regulation (EEC) 
No 2048/88 (3), in order to achieve the objectives 
referred to in Council Regulation (EEC) No 2052/88 of 
24 June 1988 on the tasks of the Structural Funds and 
their effectiveness and on coordination of their activities 
between themselves and with the operations of the 
European Investment Bank and the other existing 
financial Instruments (4), in conformity with the rules Whereas, following the Council decisions on the reform 
of the Structural Funds, the measures financed by the 
EAGGF Guidance Section should be adapted so that 
they can fully perform their role of speeding up the 
adjustment of agricultural structures with a view to the 
reform of the common agricultural policy within the 
meaning of Objective 5 (a) of Article 1 of Regulation 
(EEC) No 2052/88; whereas the necessary amendments 
should therefore be made to the measures to be taken in 
line with that Objective, namely the common measures 
of horizontal application; 
Whereas, if European agriculture is to maintain a 
presence on world markets, the common agricultural 
policy must continue to aim at increasing the efficiency 
and competitiveness of agricultural holdings; whereas 
while the majority of the adjustments necessary to ensure 
the long-term competitiveness of Community agriculture 
must be made through the markets policy, the structural 
policy, too, must make its contribution by strengthening 
production and marketing structures as far as possible 
but without in any way worsening the imbalance 
between the productive resources allocated to agriculture 
and the foreseeable outlets; whereas emphasis must be 
placed on the structural improvement of holdings which 
at present are weak and on the setting-up of young 
farmers under viable conditions; 
(') OJ No L 374, 31. 12. 1988, p. 25. 
O OJ No L 94, 28. 4. 1970, p. 13. 
O OJ No L 185, 15. 7. 1988, p. 1. 
(4) OJ No L 185, 15. 7. 1988, p. 9. (s) OJ No L 374, 31. 12. 1988, p. 1. 
20. 9. 89 Official Journal of 
Whereas, on the basis, of these principles, amendments 
should be made to Council Regulation (EEC) No 
797/85 of 12 March 1985 on improving the efficiency of 
agricultural structures (J), as last amended by Regulation 
(EEC) No 1609/89 (2); 
Whereas the aim of Community investment aid is to 
modernize agricultural holdings and thus improve their 
competitiveness in the context of the rational devel­
opment of agricultural production; whereas this aspect of 
the structural policy must be adjusted so as to permit the 
modernization and diversification of agriculture while 
remaining consistent with the measures taken to limit 
surplus production; whereas, at present, in order to 
qualify for Community investment aid, a farmer must 
practise farming as his main occupation, that is, he must 
devote at least half of his working time to his holding 
and derive at least half of his income therefrom; whereas 
investment aid should also be granted to persons who do 
not practise farming as their main occupation provided 
that on their holding they engage on a substantial scale 
in forestry, tourism or craft activities or activities 
designed to safeguard the environment and maintain the 
countryside and provided that the income from their 
off-farm activities does not exceed 50 % of the reference 
income; 
Whereas, with regard to the objective of investment 
plans for agricultural holdings, a distinction should no 
longer be made, so far as Community aid is concerned, 
between plans aimed at maintaining the level of income 
and those aimed at improving it substantially; 
Whereas under the existing provisions aid may be 
granted for investments which are not aimed at 
increasing production capacity but rather at improving 
the quality of production facilities; whereas this aid 
could be extended to investments aimed at finding new 
sources of income, such as tourism or craft activities or 
the farm-based manufacture and sale of farm products, 
and to investments aimed at improving health and 
hygiene on stock farms; 
Whereas, as regards the limits placed on investment aids 
in certain agricultural sectors, the present restrictions (on 
the production of milk, pigs, eggs and poultry) must be 
supplemented by restrictions in the beef and veal sector, 
bearing in mind the situation on the market for the 
products concerned and the need to provide no incentive 
to intensive production; whereas, however, such 
restrictions would not apply to aid for the protection of 
the environment; 
O OJ No L 93, 30. 3. 1985, p. 1. 
O OJ No L 165, 15. 6. 1989, p. 1. European Communities No C 240/7 
Whereas the maximum authorized levels for aid granted 
by the Member States should be adjusted; 
Whereas, in view of the ever-increasing cost of 
setting-up on an agricultural holding, the maximum 
amount eligible for a Community contribution towards 
the aid for the setting-up of young farmers should be 
increased from ECU 7 500 to ECU 10 000 in the case of 
both the installation premium and the capitalized value 
of the interest subsidy; whereas the detailed rules for the 
application of this measure should also be amended so 
that wider and more effective use can be made thereof; 
Whereas, in the interests of rational production, encour­
agement should be given to the formation of mutual 
assistance groups which would use practices aimed at 
safeguarding and improving the environment and pres­
erving the countryside and to the formation of groups 
which would introduce alternative cultivation methods 
such as biological techniques, integrated crop protection 
techniques and extensive farming techniques; 
Whereas the effectiveness of the current scheme to assist 
hill-farming and farming in certain less-favoured areas 
could be improved by increasing the Community 
assistance for the less prosperous regions and by making 
certain technical adjustments; whereas, in order to 
reduce the drawbacks both in terms of markets and the 
environment, the allowance should be granted for only 
one livestock unit (LU) per hectare of the total forage 
area of the holding; whereas, in addition, as regards the 
maximum amount of Community aid per holding, the 
administrative difficulties should be overcome by 
replacing the existing scheme by a simpler one designed 
to concentrate the Community's efforts on those 
holdings which are in greatest need, that is, the 
Community contribution would be restricted to 90 units, 
be they livestock units or area units; 
Whereas the amounts currently eligible for aid in areas 
which are sensitive in terms of the environment, natural 
resources and the preservation of the countryside are 
significantly lower than the loss of income resulting from 
the use of ecological methods and therefore provide too 
little incentive, especially in less-favoured areas; whereas, 
in order to ensure that this measure is more widely 
applied not only in rural areas which are experiencing 
the pressures of a changing world close to large popu­
lation centres but also in less-favoured areas, it is 
necessary to increase the maximum amount eligible to 
ECU 150/hectare; 
No C 240/8 Official Journal of the European Communities 20. 9. 89 
Whereas Council Regulation (EEC) No 1096/88 of 25 
April 1988 establishing a Community scheme to 
encourage the cessation of farming (l) should be 
amended, in particular to take account of the fact that in 
the context of the reform of the Structural Funds the 
option of early retirement with restructuring is no longer 
a horizontal measure under Objective 5 (a) but a region­
alized measure to be included in regional/rural devel­
opment plans under Objectives 1 and 5 (b); 
Whereas it is also necessary to amend Council Regu­
lation (EEC) No 1360/78 (2), as last amended by Regu­
lation (EEC) No 3875/88 (J), Council Regulation (EEC) 
No 389/81 (4), as amended by Regulation (EEC) No 
3465/87 O, and Council Regulation (EEC) No 
1696/71 ('), as last amended by Regulation (EEC) No 
3998/87 (7); 
Whereas, in accordance with the principles of the reform 
of the Structural Funds, and in particular with Articles 5 
and 11 of Regulation (EEC) No 2052/88, the EAGGF 
may help to finance national aid schemes by reimbursing 
expenditure incurred by Member States; whereas the rate 
of Community part-financing may be differentiated on 
the basis of the criteria and within the limits laid down in 
Article 13 of the said Regulation, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Regulation (EEC) No 797/85 is hereby amended as 
follows: 
1. Article 1 is replaced by the following: 
'Article 1 
1. With a view to speeding up the adjustment of 
agricultural stuctures in the Community pursuant to 
Objective 5 (a) as set out in Article 1 of Council 
Regulation (EEC) No 2052/88 ('), a common 
measure within the meaning of Article 2 (1) of 
Council Regulation (EEC) No 4256/88 (2), to be 
implemented by the Member States, is hereby 
introduced with the following objectives: 
(i) to help restore equilibrium between production 
and market capacity: 
(') OJ No L 110, 29. 4. 1988, p. 1. 
O OJ No L 166, 23. 6. 1978, p. 1. 
(3) OJ No L 346, 15. 12. 1988, p. 3. 
(4) OJ No L 51, 23. 2. 1982, p. 1. 
(s) OJ No L 329, 20. 11. 1987, p. 6. 
(•) OJ No L 175, 4. 8. 1971, p. 1. 
O OJ No L 377, 31. 12. 1987, p. 40. (ii) to help improve the efficiency of farms by 
developing and reorganizing their structures 
and by promoting supplementary activities; 
(iii) to maintain a viable agricultural community and 
thus help develop the social fabric of rural areas 
by ensuring a fair standard of living for farmers 
and by offsetting the effects of natural 
handicaps in mountain areas and less-favoured 
areas; 
(iv) to contribute to the safeguarding of the envi­
ronment and the preservation of the 
countryside, including the long-term conser­
vation of natural farming resources. 
2. In accordance with Articles 5 (2) (b) and 11 (4) 
of Regulation (EEC) No 2052/88, the EAGGF 
Guidance Section, hereinafter calied "the Fund", 
shall, acting under the common measure referred to 
in paragraph 1, provide part-financing for national 
aid schemes by reimbursing, on the terms laid down 
in Title VIII, expenditure incurred by the Member 
States on: 
(a) schemes designed to encourage the conversion 
and extensification of production; 
(b) measures relating to investments in agricultural 
holdings, in particular to reduce production 
costs, to improve the living and working 
conditions of farmers, to promote the diversifi­
cation of their activities, including the marketing 
of products on the farm, and to preserve and 
improve the natural environment; 
(c) measures to encourage the setting-up of young 
farmers; 
(d) back-up measures to assist agricultural holdings, 
involving the introduction of accounts and the 
launching of groups, services and facilities for 
the benefit of several holdings; 
(e) measures to support farm incomes and to 
maintain viable agricultural communities in 
mountain or less-favoured areas by means of 
agricultural aid for offsetting natural handicaps; 
(f) measures to protect the environment and 
safeguard the countryside by encouraging appro­
priate farming methods; 
(g) forestry measures to assist agricultural holdings. 
20. 9. 89 Official Journal of the European Communities No C 240/9 
In accordance with Title VIII, the Guarantee and 
Guidance Sections of the Fund shall contribute 
equally, under the common measure referred to in 
paragraph 1, towards measures linked with the 
scheme to encourage the set-aside of arable land. In 
the case of the share of expenditure financed by the 
Guidance Section of the Fund, the financial rules for 
the application of the common measure shall, by way 
of exception, be those which apply to the Guarantee 
Section. 
O OJNoL185, 15.7. 1988, p. 9. 
O OJ No L 374, 31. 12. 1988, p. 25.'; and craft activities or the manufacture and 
sale of farm produce on the farm, 
— the adaptation of the holding for the 
purposes of reducing production costs, 
improving living and working conditions and 
the hygiene of livestock enterprises or saving 
energy, 
— the protection and improvement of the envi­
ronment.'; 
(b) the following paragraph is inserted: 
2. in Article 2 (1): 
(a) point (a) is replaced by the following: 
'(a) practises farming as his main occupation. 
Member States may, however, apply the aid 
scheme referred to in this Title to farmers 
who do not practise farming as their main 
occupation provided that on their holding 
they engage on a substantial scale in 
forestry, tourism or craft activities or acti­
vities for safeguarding the environment and 
maintaining the countryside which qualify 
for public aid, and provided that the income 
from their off-farm activities does not 
exceed 50 % of the reference income 
referred to in paragraph 2;' 
(b) point (c) is replaced by the following: 
'(c) submits a plan for materially improving his 
holding. 
This plan must show by means of specific 
calculations that the investments are 
justified from the point of view of the 
situation of the holding and its economy 
and that implementation of the plan will 
bring about a lasting improvement of that 
situation, and in particular of the labour 
income per man-work unit (MWU) 
employed on the holding, or is necessary for 
maintaining the present level of labour 
income per MWU;' 
3. in Article 3: 
(a) paragraph 1 is replaced by the following: 
'1. The aid scheme referred to in Article 2 
may be applicable to investments relating to: 
— the qualitative improvement and conversion 
of production in line with market 
requirements, 
— the diversification of activities on the holding 
in particular by the introduction of tourism '4a. Save where decisions subsequently taken 
pursuant to paragraph 2 provide otherwise, aid 
as provided for in paragraph 1 and granted for 
investments relating to the beef sector, other 
than aid for safeguarding the environment, shall 
be restricted to holdings where the beef-cattle 
stocking rate does not exceed two livestock units 
(LU) per hectare of forage areas used for 
feeding the cattle. The LU conversion table is 
given in the Annex'; 
4. the second subparagraph of Article 4 (2) is replaced 
by the following: 'The value of the aid provided for 
in paragraph 1, expressed as a percentage of the 
amount of the investment, shall not exceed: 
(a) in the case of the areas referred to in Articles 2 
and 3 of Directive 75/268/EEC: 
— 50 % for fixed assets, 
— 30 % for other types of investment; 
(b) In the case of other areas: 
— 30 % for fixed assets, 
— 15 % for other types of investment. 
Where the aid is not granted in the form of a capital 
grant, Member States shall draw up each year a table 
showing the value of the aid, expressed as a 
percentage of the amount of the investment, taking 
into consideration the average annual rate of interest 
on non-subsidized loans, the value of the interest 
subsidy, the term of the loans, deferred interest 
subsidies and repayments and any other factor used 
for expressing the aid in grant equivalent terms.' 
5. Article 7 is replaced by the following and an Article 
7a is inserted: 
'Article 7 
1. Member States may grant setting-up aid to 
young farmers under 40 years of age on condition 
that: 
No C 240/10 Official Journal of the European Communities 20. 9. 89 
— the young farmer sets up as head of the holding, 
which means that he assumes civil and tax 
liability or joint liability for the management of 
the holding and the social status accorded in the 
Member State concerned to self-employed heads 
of holding. 
— the young farmer sets up as a farmer practising 
farming as his main occupation or begins, after 
having set up as a part-time farmer, to practise 
farming as his main occupation. 
— the occupational qualifications of the young 
farmer are to a satisfactory level at the time of 
his setting-up or at the latest two years 
thereafter, and 
— the holding requires a volume of work equivalent 
to at least one MWU. 
2. The setting-up aid may comprise: 
(a) a single premium of a maximum eligible amount 
of ECU 10 000. The premium may be paid over 
a period not exceeding five years. Member States 
may replaced the premium by an equivalent 
interest subsidy; 
(b) an interest subsidy on loans taken out with a 
view to covering the costs arising from 
setting-up. 
The rate of interest subsidy shall be not more 
than 5 % for a period of 15 years; the capi­
talized value of the interest subsidy may not 
exceed ECU 10 000. 
Member States may pay, in the form of a grant, 
the equivalent of the interest subsidy resulting 
from the volume and duration of the loans taken 
out. 
3. Member States shall define: 
— the conditions governing setting-up, 
— specific conditions in a situation where a young 
farmer, does not set up as sole head of the 
holding, in particular where he sets up as a 
member of an association or cooperative whose 
principal object is the management of an agri­
cultural holding. 
— the agricultural occupational training which a 
young farmer must possess at the time of his 
setting-up, or must achieve within two years 
thereafter, in order for the premium to be eligible 
under the Fund. 
— the amount of the setting-up aid. Article 7a 
Member States may grant young farmers under 40 
years of age additional aid for investments to be 
made under a material improvement plan within the 
meaning of Article 2 (1) (c), amounting to a 
maximum of 25 °/o of the aid granted pursuant to 
Article 4 (2), provided that the young farmer submits 
the improvement plan within five years of setting-up, 
and satisfies the conditions laid down in Article 7 
(i)'; 
6. in Article 8, paragraphs 1 to 4 are replaced by the 
following: 
'1. National aid for investments in agricultural 
holdings which do not satisfy the conditions laid 
down in this Article is hereby prohibited. 
2. Investments to be made under a material 
improvement plan within the meaning of Article 2 
(1) (c) may qualify for national aid exceeding the 
amounts granted pursuant to Articles 4 (2) and 7a 
provided that they are for: 
— the construction of farm buildings, 
— the relocation of farm buildings, where this is 
done in the public interest, 
— land improvement operations, on condition that 
account is taken of the effects on the envi­
ronment, 
— the protection and improvement of the envi­
ronment, 
provided that these higher amounts are granted in 
accordance with Articles 92 to 94 of the Treaty. 
3. Investments which are not to be made under a 
material improvement plan may qualify for national 
aid: 
(a) of an amount equal to that granted pursuant to 
Articles 4 (2) and 7a, where the labour income 
per MWU is lower that the reference income; 
(b) of an amount equal at most to three-quarters of 
that granted pursuant to Articles 4 (2) and 7a, 
where the labour income is not less than the 
reference income; however, national aid for 
energy saving and land improvement, on 
condition that account is taken of the effects on 
the environment, may be equal to the amounts 
granted pursuant to Article 4 (2). 
20. 9. 89 Official Journal of the European Communities No C 240/11 
The aid shall be subject: 
— to the conditions laid down in Article 3; the 
number of dairy cows referred to in Article 3 (3) 
shall be fixed, however, at 40 per MWU per 
holding, 
— to the conditions laid down in Article 4 (1). Aid 
may also be granted, however, for investments in 
the geese and ducks sector for the production of 
foie gras and for the purchase of livestock which 
may be encouraged under Article 4(1), provided 
that it is not the first purchase. 
4. With the exception of the cases provided for in 
paragraph 2, the sum of the aid granted pursuant to 
Article 4 and this Article may not exceed a total 
investment of ECU 60 000 per MWU and ECU 
120 000 per holding for a period of six years.' 
7. In Article 10, the first paragraph is replaced by the 
following: 
'Member States may, on request, grant to 
recognized groups which have as their object 
— mutual aid between holdings, including the use 
of practices for safeguarding and improving the 
environment and preserving the countryside, 
— the introduction of alternative cultivation 
practices, 
— the more rational joint use of agricultural 
equipment, 
— the operation of a group holding. 
and which are formed after the entry into force of 
this Regulation, launch aid as a contribution to their 
operating costs during not more than the first five 
years after their formation.'; 
8. Article 14 (3) is replaced by the following: 
'3. Member States may lay down additional or 
limiting conditions for the grant of the compensatory 
allowance. Including the use of practices compatible 
with the need to safeguard the environment and 
preserve the countryside.'; 
9. in Article 15: 
(a) the first subparagraph of paragraph 1 (a) is 
replaced by the following: 
'(a) in the case of farms keeping cattle, sheep, 
goats or Equidae, the allowance shall be 
calculated in relation to livestock numbers. 
The allowance may not exceed ECU 101 per LU. A conversion table for expressing 
cattle, Equidae, sheep and goats as LUs is 
given in the Annex. 
However, in less-favoured agricultural areas 
where the permanent natural handicaps are 
serious enough to justify it, the total 
allowance granted may be increased to ECU 
120 per LU. 
The allowance shall be granted in respect of 
not more than 1 LU per hectare of the total 
forage area of the holding.'; 
(b) paragraph 3 is replaced by the following: 
'3. the maximum amount eligible under the 
Fund shall be limited to 90 units per holding, be 
they livestock units (LU) or area units (ha). In 
addition, after the first 45 units, the maximum 
amount eligible per LU or per hectare shall be 
reduced to half the maximum amount of the 
allowance referred to in paragraph 1.'; 
(c) paragraph 4 is deleted; 
10. Article 16 is deleted; 
11. Article 17 (1) is replaced by the following: 
'1. In the areas referred to in Article 13 (1) 
Member States may grant aid to joint investment 
schemes for fodder production, including the storage 
and distribution of fodder, and for the improvement 
and equipping of pastures which are farmed jointly 
and, in mountain areas, to joint or individual 
investment in water points, in minor roads for 
immediate access to pastures, including mountain 
pastures, and in shelters for herds.'; 
12. Article 18 is deleted; 
13. in Article 19c, '100' is replaced by '150' and the 
second sentence is deleted; 
14. Article 21 is deleted; 
15. Article 22 is deleted; 
16. Article 23 is deleted; 
17. in Article 24 (3) the second sentence is replaced by 
the following: 
'Within two months of the receipt of any draft, the 
Commission shall, after consulting the Committee on 
Agricultural Structures and Rural Development, 
issue an opinion thereon.'; 
No C 240/12 Official Journal of the European Communities 20. 9. 89 
18. Article 25 is replaced by the following: 
'Article 25 
With regard to provisions forwarded pursuant to the 
second indent of Article 24 (1) or to Article 24 (4), 
the Commission shall decide within two months of 
their being forwarded, in accordance with the 
procedure laid down in Article 29 of Council Regu­
lation (EEC) No 4253/88 (')» whether, in the light 
of their compliance with this Regulation and having 
regard to the objectives of this Regulation and to the 
need to ensure that the various measures are 
properly related, such provisions satisfy the 
conditions for a financial contribution by the 
Community to the common measure referred to in 
Article 1. 
C) OJ No L 374, 31. 12. 1988, p. 1.'; 
19. Article 26 is replaced by the following: 
'Article 26 
1. Expenditure incurred by Member States in 
connection with the measures provided for in 
Articles lb, lc, 3 to 7a, 9 to 17 and 19 to 20 shall be 
eligible for aid from the Guidance Section of the 
Fund. Expenditure incurred by the Member States in 
connection with the measures provided for in Article 
la shall be eligible for aid from the Guarantee and 
Guidance Sections of the Fund. 
2. The Commission shall determine the rates of 
Community part-financing for the different measures 
in accordance with the criteria and within the limits 
laid down in Article 13 of Regulation (EEC) No 
2052/88 under the procedure provided for in Article 
29 of Regulation (EEC) No 4253/88. It shall take its 
first decisions within one month of the entry into 
force of Council Regulation (EEC) No .. 789 ('), if 
a Member State so requests, these rates are applied 
to expenditure incurred with effect from 1 January 
1989. 
O OJ No L ....'; 
20. in Article 28: 
(a) in paragraph 1, '1 July' is replaced by '1 May'; 
(b) paragraph 2 is deleted; 
(c) paragraph 4 is replaced by the following: 
'4. The Commission shall adopt detailed rules 
for the application of this Article.'; 
21. Article 29 is deleted; 22. in Article 31 (1) and (2), 'Article 7, second 
paragraph point 2, Article 8 (2), (3) and (4)' is 
replaced by 'Article 7a, Article 8 (3) and (4)'; 
23. The following Article is inserted: 
'Article 31a 
Member States shall make provision for effective 
monitoring which shall include at least verification 
of all aspects of the beneficiary's undertaking and of 
the supporting documents, and on-the-spot checks to 
verify that the information contained in the 
application corresponds to the true situation. 
Detailed rules for the application of this Article shall 
be laid down, where appropriate, in accordance with 
the procedure provided for in Article 29 of Regu­
lation (EEC) No 4253/88.'; 
24. in Article 32 (1) the last subparagraph is replaced by 
the following: 
'As regards the amendments made to this Regulation 
by Regulation (EEC) No ... /89, Member States 
shall bring into force the measures necessary to 
comply with those amendments within six months of 
the date of entry into force of that Regulation.' 
Article 2 
Regulation (EEC) No 1096/88 is hereby amended as 
follows: 
1. In Article 1, 'within the meaning of Article 6 (1) of 
Regulation (EEC) No 729/70' is replaced by 'within 
the meaning of Article 2 (1) of Council Regulation 
(EEC) No 4256/88 ('). 
(») OJ No 374, 31. 12. 1988, p. 25.'; 
2. Article 4 (1) is replaced by the following: 
'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 Council Regu­
lation (EEC) No 797/85 of 12 March 1985 on 
improving the efficiency of agricultural structures ('), 
who are over 55 years of age and who permanently 
cease all farming activities, provided that agricultural 
production on the agricultural area of the holding is 
halted throughout the whole 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 arrangements currently applicable to 
20. 9. 89 Official Journal of the European Communities No C 240/13 
farming in the Member State 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. 
(») OJ No L 93, 30. 3. 1985, p. 1.'; 
3. Article 6 (1) is replaced by the following: 
'1. The supplementary annual premium per 
hectare referred to in the second indent of Article 3 
(1) shall be granted per hectare of agricultural area 
actually withdrawn from agricultural production.'; 
4. in Article 7: 
(a) paragraphe 1 is amended as follows: 
'the first indent of preceding 'Article 4 (1)' is 
deleted; 
(b) paragraph 2 is replaced by the following: 
'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 European Agricultural 
Guidance and Guarantee Fund (hereinafter 
called 'the Fund') if it is paid in respect of areas 
for which a premium for the permanent aban­
donment of areas under vines is paid in 
accordance with the rules laid down in Article 2 
of Council Regulation (EEC) No 1442/88 of 24 
May 1988 on the granting, for the 1988/89 to 
1995/96 wine years, of permanent abandonment 
premiums in respect of wine-growing areas ('); it 
shall not be paid in respect of areas for which a 
premium for the permanent abandonment of 
areas under vines is granted in the form of an 
annual premium in accordance with the rules 
laid down in Article 9 of Regulation (EEC) No 
1442/88. (b) paragraph 2 is replaced by the following: 
'2. The Commission shall determine the rates 
of Community part-financing for the different 
measures in accordance with the criteria and 
within the limits laid down in Article 13 of 
Council Regulation (EEC) No 2052/88 (') under 
the procedure provided for in Article 29 of 
Council Regulation (EEC) No 4253/88 (*)• It 
shall take its first decisions within one month of 
the entry into force of Council Regulation 
(EEC) No .../89(3). If a Member State so 
requests, these rates are applied to expenditure 
incurred with effect from 1 January 1989. 
(') OJ No L 132, 28. 5. 1988, p. 3.'; O OJNoL 185, 15.7. 1988, p. 9. 
(2) OJ No L 374, 31. 12. 1988, p. 1. 
O OJ No L ... .'; 
7. Article 10 is deleted; 
8. in Article 11, 
(a) the first indent of paragraph 3 is replaced by the 
following: 
'— where the scheme applied to the abandoned 
farm is eligible under Article 9'; 
(b) paragraph 4 is replaced by the following: 
'4. The Commission shall determine the rates 
of Community part-financing for the different 
measures in accordance with the criteria and 
within the limits laid down in Article 13 of 
Regulation (EEC) No 2052/88 under the 
procedure provided for in Article 29 of Regu­
lation (EEC) No 4253/88. It shall take its first 
decisions within one month of the entry into 
force of Regulation (EEC) No .. ./89. If a 
Member State so requests, the rates are applied 
to expenditure incurred with effect from 1 
January 1989.'; 
9. Article 12 is replaced by the following: 
'Article 12 
Five years after the entry into force of this Regulation, 
the detailed rules for its application shall be reviewed by 
the Council, on a proposal from the Commission.'; 
5. the last indent of Article 8 is deleted; 
6. in Article 9: 
(a) 'the first indent of preceding 'Article 4 (1)' in 
the first sentence of paragraph 1 is deleted; 10. The second sentence of Article 13 (3) is replaced by 
the following: 
'Within two months of the receipt of any draft, the 
Commission shall, after consulting the Committee on 
Agricultural Structures and Rural Development, 
issue an opinion thereon.'; 
No C 240/14 Official Journal of the European Communities 20. 9. 89 
11. Article 14 is replaced by the following: 
'Article 14 
With regard to provisions forwarded pursuant to the 
second indent of Article 13 (1) or to Article 13 (4), the 
Commission shall decide within two months of their 
being forwarded, in accordance with the procedure laid 
down in Article 29 of Regulation (EEC) No 4253/88, 
whether, in the light of their compliance with this Regu­
lation and having regard to the objectives of this Regu­
lation and to the need to ensure that the various 
measures are properly related, such provisions satisfy the 
conditions for a financial contribution by the 
Community to the common measures referred to in 
Article 1.'; 
12. Article 16 is deleted; 
13. in Article 17: 
(a) in paragraph 1, '1 July' is replaced by '1 May'; 
(b) paragraph 2 is deleted; 
(c) paragraph 4 is replaced by the following: 
'4. The Commission shall adopt detailed rules 
for the application of this Article.' 
Article 3 
Regulation (EEC) No 1360/78 is hereby amended as 
follows: 
1. The first sentence of Article 6 (3) is replaced by the 
following: 
'3. Within six months of the entry into force of 
Council Regulation (EEC) No .. ./89 (!) and in 
accordance with the procedure laid down in Article 
29 of Council Regulation (EEC) No 4253/88 (2), 
detailed rules of application shall be adopted 
concerning: 
C) OJ No L ... 
(*) OJ No L 374, 31. 12. 1988, p. 1.*; 
2. in Article 11 (3), 'laid down in Article 16' is replaced 
by: 'laid down in Article 29 of Regulation (EEC) No 
4253/88.'; 3. Article 12 is replaced by the following: 
Article 12 
All the measures laid down in this Regulation shall 
constitute a common measure within the meaning of 
Article 2 (1) of Council Regulation (EEC) No 
4256/88 ('). 
O OJ No L 374, 31. 12. 1988, p. 25.'; 
4. in Article 13, paragraphs 3 and 4 are deleted; 
5. Article 14 (2) is replaced by the following: 
'2. The Commission shall determine the rates of 
Community part-financing for the different measures 
in accordance with the criteria and within the limits 
laid down in Article 13 of Council Regulation (EEC) 
No 2052/88 (') under the procedure provided for in 
Article 29 of Regulation (EEC) No 4253/88. It shall 
take its first decisions within one month of the entry 
into force of Regulation (EEC) No .. ./89. If a 
Member States so requests, these rates are applied to 
expenditure incurred with effect from 1 January 1989. 
(') OJ No L 185, 15. 7. 1988, p. 9.'; 
6. in Article 15, 
(a) in paragraph 1, '1 July' is replaced by '1 Ma/; 
(b) paragraph 2 is deleted; 
(c) paragraph 4 is replaced by the following: 
'4. The Commission shall adopt detailed rules 
for the application of this Article.'; 
7. Article 16 is deleted. 
Article 4 
Regulation (EEC) No 389/82 is hereby amended as 
follows: 
1. Article 8 (1) is replaced by the following: 
' 1. Within six months of the date of receipt of each 
programme or of modifications thereto and on 
condition that all the details specified in Article 6 of 
this Regulation have been provided, the Commission 
shall take a decision as to their approval in 
accordance with the procedure laid down in Article 
29 of Council Regulation (EEC) No 4253/88 ('). 
(') OJ No L 374, 31. 12. 1988, p. 1.'; 
20. 9. 89 Official Journal of the European Communities No C 240/15 
2. Article 9 is replaced by the following: 1. paragraph 2 is replaced by the following: 
'Article 9 ^, •, , r • . . 
All the measures provided for in this Regulation shall 
constitute a common measure within the meaning of 
Article 2 (1) of Council Regulation (EEC) No 
4256/88 C). 
0) OJ No L 374, 31. 12. 1988, p. 25.'; 
3. in Article 10, paragraphs 3 and 4 are deleted; 
4. in Article 11 
(a) paragraph 2 is replaced by the following: 
'2. The Commission shall determine the rates 
of Community part-financing for the different 
measures in accordance with the criteria and 
within the limits laid down in Article 13 of 
Council Regulation (EEC) No 2052/88 (') under 
the procedure provided for in Article 29 of 
Council Regulation (EEC) No 4253/88. It shall 
take its first decisions within one month of the 
entry into force of Council Regulation (EEC) No 
. . ./89 (2) if a Member State so requests, these 
rates are applied to expenditure incurred with 
effect from 1 January 1989. 
O OJNoLl85, 15.7. 1988, p. 9. 
O OJ No L ...'; 
(b) paragraph 3 is deleted; 
5. in Article 12, 
(a) paragraph 2 is deleted; 
(b) paragraph 4 is replaced by the following: 
'4. The Commission shall adopt detailed rules 
for the application of this Article.' 
Article 5 
Article 17 of Regulation (EEC) No 1696/71 is hereby 
amended as follows: measures proviaea tor in /vnicles 8 and 9 
shall constitute a common measure within the 
meaning of Article 2 (1) of Council Regulation (EEC) 
No 4256/88 ('). 
(') OJ No L 374, 31. 12. 1988, p. 25.'; 
2. paragraph 3 is replaced by the following: 
'3. The Commission shall determine the rates of 
Community part-financing for the different measures 
in accordance with the criteria and within the limits 
laid down in Article 13 of Council Regulation (EEC) 
No 2052/88 (') under the procedure provided for in 
Article 29 of Council Regulation (EEC) No 
4253/88 (2). It shall take its first decisions within one 
month of the entry into force of Council Regulation 
(EEC) No .. ./89 (3). If a Member State so requests, 
these rates are applied to expenditure incurred with 
effect from 1 January 1989. 
O OJNoL 185, 15.7. 1988, p. 9. 
O OJ No L 374, 31. 12. 1988, p. 1. 
(>) OJ No L . ..'; 
3. in paragraph 4, '30 June' is replaced by '1 May'; 
4. paragraph 7 is replaced by the following: 
'7. The Commission shall adopt detailed rules for 
the application of this Article.' 
Article 6 
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.