PROPOSAL FOR A COUNCIL REGULATION ( EEC ) INSTITUTING A SPECIAL SYSTEM OF AID FOR SMALL COTTON PRODUCERS
Date: 1989-12-08
Institutions: European Commission
Subjects: aid per hectare, aid system, cotton, production capacity

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

C0MC89)  611  final 

Brussels,  8  December  1989 

Proposal  for a 

COUNCIL  REGULATION  (EEC) 

instituting  a special  system of aid for 

small  cotton  producers 

(presented  by the  Commission) 

Proposal for a 

£~.kM[ 

COUNCIL REGULATION (EEC) No 

of 

instituting a special system of aid for 
small cotton producers 

THE COUNCIL OF THE EUROPEAN COMMUNITIES, 

Having regard to the Treaty establishing the European Economic Community, 

Having regard to Council Regulation (EEC) No 1964/87 of 2 July 1987 adjusting 

the system of aid for cotton introduced by Protocol No 4 annexed to the Act of 

Accession of Greece  (1), and in particular Article 3(2) thereof, 

Having regard to the proposal from the Commission (2), 

Having regard to the opinion of the European Parliament (3), 

Having regard to the opinion of the Economic and Social Committee (4), 

Whereas the system of aid for cotton introduced in Protocol 4, as adapted by 

Regulation (EEC) No 1964/87, provides that the aid for cotton is to be reduced 

where production exceeds the maximum guaranteed quantity fixed for the 

marketing year concerned;  whereas these arrangements for reducing the aid 

have resulted in past marketing years in falls in the income of agricultural 

producers and in particular of those growing cotton on a small area;  whereas, 

in order to aLleviate the effects of this fall on the latter category of 

producers, their income should be supported through the grant of flat-rate aid 

per hectare; 

(1) OJ No L 184, 3.7.1987, p. 14. 
(2) OJ No C 
(3) OJ No C 
(4) OJ No C 

_  ?  _ 

Whereas  the aid  for small  cotton  producers should  be  fixed  at a l^vel enabling 

the additional  cost of manual  harvesting  to be offset; 

Whereas expenditure on the system of aid  for small producers must not exceed a 

giv-în ceiling;  whereas, to that end, a maximum guaranteed  area any overrun in 

whi :h results  in a reduction  in the aid  should  be determined;  whereas  that 

maximum guaranteed  area  is to be equal  to the average areas sown by small 

producers  in 198 7 and 1988; 

Whereas, with a view  to sound administration, a definition of  small  producers 

shoild be  laid down; 

Whereas, in order  to facilitate  the  implementation of  the provisions 

contemplated, provision should be made for a procedure establishing  close 

cooperation between  the Member States and  the Commission within a management 

committee; 

Whereas, in accordance with Article-3(2) of Regulation  (EEC) No  1964/87, the 

Council  is to decide on any adjustments  to the system of aid  instituted by 

Protocol 4 before  the 1992/93 marketing year;  whereas, pending  that decision, 

the duration of  the system of aid  introduced  by this Regulation  should apply 

to the end of the 1991/92 marketing year only; 

HAD ADOPTED THIS REGULATION: 

Article 1 

A system of  flat-rate aid  for small cotton producers  is hereby  instituted  in 

accordance with  this Regulation. 

Article 2 

The system of aid  for small producers  shall be applicable  in the  1989/90, 

1990/91 and  1991/92 marketing years. 

Article 3 

1.  The direct aid shall be ECU 250 per hectare of area sown and  harvested  in 

each of  the three marketing years.  However, where areas  sown  to cotton by 

small producers as referred  to in Article 4 exceed  a Community  maximum 

guaranteed  area, the aid shall be  reduced  for the marketing  year  in 

question depending  on the overrun  recorded. 

2.  The Community maximum guaranteed  area  referred  to  in paragraph  1 shall be 

determined  for the  three marketing  years concerned  by  the Council  acting 

by a qualified majority on a proposal  from  the Commission. 

Article 4 

For the purposes of  this Regulation, "small  producer" means a cotton  producer 

who sows an area not exceeding  1,5  hectares  to this crop  in  1989,  L9^() and 

1991 and who has submitted  a declaration of areas sown and an aid  application 

before a date  to be determined. 

y 

- 4 -

Article 3 

1.  The Member States may  refrain  from granting  the aid  in the case of  amounts 

less than a minimum which  they shall determine. 

2.  The aid shall be converted  into national  currency  at  the agricultural 

conversion  rate  in force on  the first day of  the marketing  year  in respect 

nf which  that aid  is due. 

Article 6 

The direct aid  instituted  by this Regulation  shall be considered  intervention 

intended  to stabilize  the agricultural  markets within  the moaning of Article 

3(3) of Council Regulation  (EEC) No  729/70 of  21 April  1970 on  the  financing 

of  the common agricultural  policy  (1), as  last amended  by Regulation  (EEC) No 

1048/88 (2). 

Article 7 

1.  The detailed  rules  for  the application of  this Regulation  shall be laid 

down by  the Commission  in accordance with  the procedure  provided  for in 

Article  12 of Council  Regulation  (EEC) No  1308/70 of  29 June  1970 on the 

common organization  of  the market  in flax and hemp (3). 

2.  In accordance with  that  procedure, the Commission  shall  record  any  overrun 

in the maximum guaranteed  area and shall determine  the resulting  reduction 

in ttie aid. 

(1) OJ No L 94, 28.4.1970, p. 1. 
(2) OJ No L 185, 15.7.1988, p. 1. 
(3) OJ No L 146, 4.7.1970, p. 1. 

vT 

-  5 -

Article 8 

The Member States and  the Commission shall  forward  each other  the data 

required  for the application of  this Regulation.  Such data shall be  compiled 

in accordance with  the procedure  laid down  in Article  12 of Regulation  (EEC) 

No 1308/70.  The detailed  rules  for forwarding  and disseminating  such data 

shall be adopted  in accordance with  the same procedure. 

Article 9 

This Regulation shall enter  into force on the third day  following  its 

publication  in the Official Journal of  the European Communities. 

It shall apply  from  I September  1989. 

This Regulation  shall be binding  in its entirety and directly  applicable  in 

all Member States. 

Done at Brussels, 

For  the Council 

F I N A N C I AL  STATEMENT 

1. BUDGET HEADING: 

Rural development measures related to the operation 
of the market  1990 DB: 295 

DATE: 

APPROPRIATIONS: p.m. 

2. TITLE: Draft Council Regulation  laying down general  rules for the special system of aid for small cotton 

producers 

3. LEGAL BASIS: Point 11 of Protocol 4 to the Act of Accession of Greece 

4. AIMS OF PROJECT: To support the income of smal I cotton producers 

5. 

INANCIAL  IMPLICATIONS 

5.0  XPENDTURE 

- CHARGHD TO THE EC BUDGET 
- (REFUNDS/INTERVENTION) 

Period of 12 months 

Current Financial Year 
1990 

Following Financial Year 

1991 

+ ECU 9 m 

+ ECU 9 m 

+ ECU 9 m 

1992 

1993 

1994 

1995 

5.0. 1 ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 

+ ECU 9 m 

5.2 €TH0D OF CALCULATION: Assumed area concerned: 34 000 ha, corresponding to the total area of holdings of 

less than one hectare plus half the area of holdings with between one and two 
hectares. 

34 000 ha x ECU 250/ha x 1,070 (DR) - ECU 9 Mi 11 ion 

6.0  :AN THI: PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED  IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 

6.1  :AN THI- PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? 

6.2 iS A SUPPLEMENTARY BUDGET NECESSARY? 

6.3  VILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 

OBSEWATIOIS: 

YES 

YES/NO 

NO 

YES 

I. 

:.-'';L'..  e st  L : 
'•:-:-r.;jer  L  : c-v fe  •..- du  r é - v ' "?  de  r;or^spon S r bU  i t?  pour 

;  „• :i  i  '  ' '•  -1 *• o"  p r i n c i p a l»  df  La  r.iZ'jr» 

? 

l"S  " p e t i t s" 

p r o d u c t e u r ;-  c?  c r u e n, 

:-.-.ulti v-ir.t  Roi.-ir  de  1,5ns  de  c o : o " ),  p ar 

I ' c c t r oi 

O."}  Y  r ~ p - ; '. 
cvAcivôr.t 

••.-.  T-.'.^-r-t  :;oKZ-t 
i - ':o5  s u-  337.^~:C 

dr  Ptt^ 
ha 

(  >•.:  X)" 

'37.ICO 

s'-'r  ** 2 . 1 33  C 36  *> 

Cb)  N o t t - t - c ."  d':s  c 3-  ; . ? n : r ?:  i o ns  c ^ ns  d es 

réçis.--.:; 

'_:• c u l t u re  r:o-~ur..nut3i re  ce c o t on  a  L-'eu  en G ~ è ce  ( 2 5 6 . O CC  h a) et 
p P  - ", •-< ^ --i p r-  C ' " ;. 5 '_' 0  h :-.' 

Ill. 

~.:...-: L L •: s  •; o n ~  !» •? s  c o :. i ^ i ~ i ~ r. z ( i rr. p o s <r ; s  0 ; " e z t e ~ ? ~ -  ?•»:  e n ": r » 5 r "i s e $  ? 

Déposer une  C ^ C ^ T ; - : : ;. 

.*. -'.  C'JÏLLC:  sen:  l?:; op 1 *• p "•*-; or 3  sus cent - P 1 c ^ c'?:"r  i ••p:SîïS  indirectement 

;ux  tntresri;;.' v-a  L*s  auto-ipfs  L c " a I i.* -p ? 

Au"une. 

V. 

v  n - t - il  d rr 

r.-rsur-.-  s o ër  - = I ? s « p c u*  Les  ?r.£  ? 

'' 

L e s q u e l l es  ? 

Cr.  r ^ o l e n e n -:  zzr.zzrr.* 
ceux  qui  a f f r r c t e r /:  su  c o t on  --cir.?  ce  Ip  h a,  a u x q u e ls  ur.e  a i de  e st 
o c t r ové c *. 

l es  " P e t i t s"  p r o d u c t e u r s, 

ur.~ ouerner. : 

c ' e s t - à - d i re 

V-  .. 

•-:;:  >.  : s: 

I  ' c f  :  -1  o re v i  3 i  c  L »  -

~- sur  Li  -cspi: ' ~ •'-, --.-} Pes  entreorisss  ? 

ùugmeritit-':r. du  -~v?nu ces cetir. s  producteurs  de coton de 250  Ecu/ha 
Lvcir  rapport) . 

-;•-' -u-  L'e.T.pLo-' ?  ~'i;~t -  Les petits producteurs  n'ayant  pas de salariés. 

•' • - ;  ; ?trt;r;a-..-« : : c ; •. •:. : - c~:-iLs  été  cc~5uL:ë5  1 

2ueLs  sont  leurs 

W Ï£ • * » •' 

ISSN 0254-1475 

COM(89) 611 final 

DOCUMENTS 

EN 

03 

Catalogue number : CB-CO-89-483-EN-C 

ISBN 92-77-54120-2 

Office for Official Publications of the European Communities 
L-2985 Luxembourg