WRITTEN QUESTION E-1339/02

by Ilda Figueiredo (GUE/NGL) to the Commission

(13 May 2002)

Subject: Eligibility criteria for compensatory payments

The system of compensatory payments is extremely important in offsetting the specific disadvantages of less-favoured regions, where agriculture and related activities generally play an important role. However, the effectiveness of the system depends above all on the type of eligibility criteria and the degree of flexibility, in view of the different farming situations in the Member States, especially as regards the conditions of land tenure. In the outermost regions these issues are particularly significant because of the specific difficulties inherent in their status and the heavy dependence on certain sectors such as farming. In the autonomous region of the Azores many cattle farmers are not applying for compensatory payments because of the new criteria, namely the limit of 2,5 livestock units per hectare, whereas the ratio in the Azores is 3 or 4 livestock units per hectare. Everyone knows how important the beef and dairy sectors are in the Azores.

In view of this, can the Commission say:

- what the reason for the limit of 2,5 livestock units is and whether this figure takes account of the specific characteristics of the outermost regions;

- what measures it can take, on the basis of the islands' status as an outermost region (Article 299(2)), in order to solve this problem and ensure correct application of the compensatory payments?

Answer given by Mr Fischler on behalf of the Commission

(21 June 2002)

In accordance with Article 14(2) of Council Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations(1), compensatory allowances are granted per hectare of agricultural land to farmers in less-favoured areas under certain conditions, including usual good farming practices compatible with the need to safeguard the environment and to maintain the countryside.

Under Commission Regulation (EC) No 445/2002 of 26 February 2002 laying down detailed rules for the application of Council Regulation (EC) No 1257/1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF)(2), which replaced Commission Regulation (EC) No 1750/1999 of 23 July 1999(3), Member States must set out verifiable standards for usual good farming practices in their Rural Development Plans (RDP).

In keeping with these requirements, the authorities in the Autonomous Region of the Azores have had to define an upper limit for stocking density in their RDPs compatible with good farming practices. They have proposed and justified a maximum of 2,5 livestock units (LUs) per hectare (ha). This limit, much greater than that employed during the previous planning period in the Azores (1,4 LUs per ha) for the granting of compensatory payments, takes into account conservation requirements as well as the specific regional characteristics inherent to the island's status as an outermost region.

Furthermore, on 28 June 2001 the Council adopted Regulation (EC) No 1453/2001, in accordance with Article 299(2) of the EC Treaty, introducing specific measures for certain agricultural products for the Azores and Madeira and repealing Regulation (EEC) No 1600/92 (Poseima)(4). The Regulation acknowledges and seeks to mitigate the effects of the particular geographical situation and the constraints imposed by the island nature and outermost location of these two autonomous regions and, in particular, lays down exceptional structural measures. However, Regulation (EC) No 1453/2001 does not provide for derogations from Article 14(2) of the aforementioned Regulation (EC) No 1257/1999.

(1) OJ L 160, 26.6.1999.

(2) OJ L 74, 15.3.2002.

(3) OJ L 214, 13.8.1999.

(4) OJ L 198, 21.7.2001.