PROPOSAL FOR A COUNCIL REGULATION ( EEC ) AMENDING REGULATION ( EEC ) NO 1696/71 ON THE COMMON ORGANIZATION OF THE MARKET IN HOPS
Date: 1990-05-22
Institutions: European Commission
Subjects: aid per hectare, common organisation of markets, hops, utilised agricultural area

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

C0MC90) 210 final 

Brussels, 22 May  1990 

Proposal  for a 

COUNCIL  REGULATION  (EEC) 

amending  Regulation  (EEC) No 1696/71  on the 

common  organization  of the market  in hops 

(presented  by the  Commission) 

- 2 -

Explanatory  Memorandum 

It  Is  proposed  that  the  Council  adopt  a  proposal  for  a  Regulation 
amending  Regulation  (EEC)  No  1696/71  on  the  common  organization 
of  the  market  In  h o p s. 

This  Regulation  would  allow  for  granting  of  aid  to  producers  for 
areas  planted  with  experimental  v a r i e t i e s.  This  means  an 
exception  to  the  rule  that  varieties  must  belong  to  one  of  the 
varietal  groups  specified  in  Council  Regulation  (EEC)  No  1696/71 
and,  based  on  that,  must  be  listed  In  the  Annex  of  Commission 
Regulation  1517/77  In  order  to  qualify  for  the  aid. 

For  the  hop  sector  it  is  most  essential  to  continue  development 
of  new  v a r l t l e s.  However,  the  areas  at  the  disposal  of  the 
research  Institutes  are  not  always  large  enough  to  provide  the 
desired  r e s u l t s.  Growers  who  assist  these  research  institutes  by 
allocating  a  part  of  their  hop  area  for  the  testing  of  new 
varieties  should  not  suffer  from  the  d i s a d v a n t a ge  of  not  being 
eligible  for  aid  to  producers  for  the  areas  in  q u e s t i o n. 

Therefore  it  is  suggested  that  aid  to  producers  may  be  granted 
for  areas  planted  with  experimental  varieties  for  a  certain 
period  and  a  restricted  area  per  Member  s t a t e.  Since  the  aid  to 
producers  commands  only  a  small  portion  of  the  hop  g r o w e r s' 
revenues  a  substantial  rise  In  hop  areas  Is  not  be  expected. 

No  impact  on  small  and  medium  e n t e r p r i s e s. 

The  cost  of  the  proposal  to  the  EAGGF,  Guarantee  Section,  Is 
estimated  at  ECU 0.1  million  per year. 

-  3 -

Proposal  for a 

COUNCIL REGULATION  (EEC) 

amending Regulation  (EEC) No 1696/71 on the 

common organization of  the market  in hops 

THE COUNCIL OF THE EUROPEAN  COMMUNITIES, 

Having  regard  to  the  Treaty  establishing  the  European  Economic  Community, 

and  in particular  Article 43 thereof, 

Having  regard  to the proposal  from the Commission, 

Having  regard  to the opinion of  the European  Parliament*1), 

Having  regard  to the opinion of  the Economic and Social  Committee*2*, 

Whereas  Article  12  of  Council  Regulation  (EEC)  No 1696/71(3),  as  |a st 

amended  by  Regulation  (EEC)  No  3808/89*4),  does  not  provide  for  the 

possibility of granting  aid  to producers  for experimental  varieties; 

Whereas  the  continuing  development  of  new  varieties  is essential  for  the 

hop  sector;  whereas  the  areas  at  the  disposal  of  research  Institutes  for 

testing experimental  varieties are  limited, especially when  these  varieties 

are  in an advanced  stage of breeding  and  results on a  larger  scale would be 

desirable; 

Whereas  the  allocation  of  producers'  land  for  testing  of  experimental 

varieties  in  their  final  stages  of  breeding  development  would  allow  for 

testing  on  a  larger  scale;  whereas  this  would  not  only  provide  research 

institutes  with  valuable  results  but  also  give  an  initial  indication  of 

market  acceptance of  such varieties; 

(1) 

(2) 

(3) OJ  No L 175, 4.8.1971, p. 1. 

(4) OJ  No L 371, 20.12.1989, p. 1. 

_ 4  -

Whereas  producers  who  are  prepared  to  cooperate  on  their  land  with  research 

institutes  should  not  suffer  from  the  disadvantage  of  losing  their 

eligibility  for  production  aid  in respect  of  the  area  In  question; 

Whereas  the  period,  as  well  as  the  total  surface  per  Member  State,  for 

which  production  aid  is  granted  for  areas  cultivated  with  experimental 

varieties  should  be  limited; 

HAS ADOPTED  THIS  REGULATION: 

Article 1 

The  following  Article  is  Inserted  In Regulation  (EEC) No  1696/71 : 

"Article  12a 

Without  prejudice  to  Article  12  (3),  aid  may  also  be  granted  for 

experimental  varieties  which  are  In  an  advanced  stage  of  breeding 

development  for  a  maximum  period  of  five  years,  provided  that  such 

varieties  are  cultivated  by  a  producer  under  the  supervision  of  a 

research  institute. 

The  amount  of  the  aid  shall  be  fixed  in accordance  with  the  procedure 

set  out  in  Article  12(7)  and  in  any  case  shall  not  be  greater  than 

the  amount  of  aid  fixed  for  group  3  "others". 

The  aid  shall  be  granted  for  an  area  not  exceeding  one  percent  of  a 

Member  State's  total  area  under  hops,  and  may  not  be  granted  for  an 

area  less  than  10 hectares  per  Member  State. 

Detailed  rules  for  the  application  of  this  Article  shall  be  adopted 

in accordance  with  the  procedure  laid  down  in Article  20." 

-  5 

Article  2 

This  Regulation  shall  enter  into  force  on  the  third  day  following  that  of 

its publication  in  the  Official  Journal  of  the  European  Communities. 

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

a I I Member  States. 

Done  at  Brussels, 

For  the  Council 

The  President 

F I N A N C I AL 

S T A T E M E NT 

-  6 

-

1.  BUDGET  HEADING:  181 

APPROPRIATIONS:  ECU  13  ml I i Ion 

DATE:  26.03.1990 

2. TITLE: 

Proposal for a Counci I Regulation (EEC) No 1696/71 on the camion organization of the market  In hops. 

3. LEGAL BASIS: Article 43 of the Treaty 

4. AIMS OF PROJECT: 

To grant aid to producers for experimental varieties. 

5.  FINANCIAL  IMPLICATIONS 

5.0 EXPENDITURE 

- CHARGED TO THE EC BUDGET 
- (REFUNDS/INTERVENT ION) 
- NATIONAL ADMINISTRATION 
- OTHER 

5.1 REVENUE 

- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUT IES) 

- NATIONAL 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 

5.2 METHOD OF CALCULATICM: 

Period of 12 months 

Current Financial Year 
1990 

Following Financial Year 
1991 

0,1 ECU mi 11 Ion 

p.m. 

0,1 ECU mi 11 Ion 

1992 

1993 

1994 

1995 

0,1 ECU mi 11 Ion 

0,1 ECU ml 11 Ion 

0,1 ECU mi 11 ion 

0,1 ECU mi 11 ion 

Maximal hypothesis: 26.000 ha x 1% - 260 ha 

260 ha x 390 ECU/ha x 1,155 (DT) - 0,1 ECU ml 11 Ion 

6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 

__j 

6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? 

6.2 ISA SUPPLEMENTARY BUDGET NECESSARY? 

6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 

OBSERVAT IONS: 

YES 

YES 

ISSN 0254-1475 

COM(90) 210 final 

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