Keywords

Summary



Keywords

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1. Agriculture ° Common organization of the markets ° Oils and fats ° Special measures for soya beans ° Production aid ° Measures of control ° Cultivation contracts ° Loss of entitlement to aid if a producer fails to comply with his obligation to notify changes in the areas sown ° Principle of proportionality ° Breach ° No breach ° Whether the Commission exceeded the limits of its implementing powers ° Limits not exceeded

(Council Regulation No 1491/85, Art. 2(8); Commission Regulation No 2537/89, Arts 6(3), first subpara., and 29a(1) and (4), and Commission Regulation No 150/90)

2. Agriculture ° Common organization of the markets ° Oils and fats ° Special measures for soya beans ° Production aid ° Measures of control ° Cultivation contracts ° Obligation on producers to notify any change in the areas notified ° Scope

(Commission Regulation No 2537/89, Art 6(3))

Summary

1. The reliability of information on the areas sown included in cultivation contracts, which is necessary in order for the system of aid for soya-bean production in the Community set out in Regulation No 1491/85 to operate properly, can be guaranteed only if producers notify the competent national authorities of changes in the use of the areas indicated in the cultivation contract and which, pursuant to the first subparagraph of Article 6(3) of Regulation No 2537/89 laying down detailed rules for the application of the special measures for soya beans, as amended by Regulation No 150/90, must be used exclusively for the cultivation of soya beans, except in cases of force majeure. The obligation imposed on a producer to declare changes to the competent agency, as provided for in Article 6(3) of Regulation No 2537/89, therefore constitutes an obligation essential to the proper functioning of the system of aid and is consequently of fundamental importance to it.

That is why, in providing for penalties which, although Article 29a of Regulation No 2537/84 enables Member States to make proportionate to the gravity of the breach of which a producer is accused, may go as far as forfeiture of entitlement to aid for the current marketing year and for the following marketing year in the case where a soya bean producer, deliberately or by reason of serious negligence on his part, breaches an obligation as important for the proper functioning of the aid system as is the obligation to notify changes in the areas sown, the Commission did not infringe the principle of proportionality or exceed the limits of the implementing powers conferred on it by Article 2(8) of Regulation No 1491/85, which include the power to provide for appropriate penalties.

2. Article 6(3) of Regulation No 2537/89 must be understood as meaning that soya producers who have concluded a cultivation contract entitling them to the aid provided for under Community rules must notify the competent agency of any change in the areas indicated in that contract, in particular any reduction in those areas, even if it is attributable to natural occurrences, such as heavy rainfall, where such a change occurs before the lodging of the contract, as well as all changes which occur after lodging of the cultivation contract and which, individually or collectively, involve more than 10% of the areas indicated in the cultivation contract and more than one hectare.