Proposal for a COUNCIL REGULATION ( EEC ) instituting a Community aid scheme for early retirement from farming
Date: 1991-10-31
Institutions: European Commission
Subjects: EAGGF Guarantee Section, EU aid, cessation of farming, early retirement, farmer

COMMISSION OF THE EUROPEAN COMMUNITIES 

COM(91)415  final 

Brussels, 31 October  1991 

i 

lié 

REFORM OF THE COMMON AGRICULTURAL POLICY  -  LEGISLATION 

MEASURES TO ACCOMPANY THE REFORM OF THE MARKET SUPPORT MECHANISMS 

COMMUNITY AID SCHEME FOR FORESTRY MEASURES IN AGRICULTURE 

COMMUNITY  EARLY RETIREMENT SrHEME FOR FARMERS 

(SUBMITTED BY THE COMMISSION) 

EXPLANATORY  MEMORANDUM 

1.  The  attached  proposed  regulations embody  In  legislative  form  the 

Commission's  proposals1  for measures  to accompany  the changes  that  are 
to be made  to the market  organization  rules. Three  types of  action  are 
proposed: 

farming  and  care of  the environment; 

afforestation of  agricultural  land-, 

early  retirement  for  farmers. 

The measures  are closely  linked  to the market  proposals  in that, taken 
together, they  are designed  to reinforce  the main  thrust  of  the  reform, 
i.e. balanced  markets, stable  incomes  for  farmers  and care  for  the 
balance of  nature  and  the environment. 

2.  The aim of  the Regulation on  farming  and  the environment  is to give 

recognition  to the dual  role of  farmers as producers  and  as stewards of 
the environment  and  the countryside, and  to encourage  farming  practices 
which  are  less  intensive  and more  in tune with  environmental 
constraints; this should  also make  a positive  contribution  to 
rebalancing  markets. The  Regulation  on afforestation of  agricultural 
land offers  a commercially  viable, alternative  use  for  land while 
contributing  to  improved  control  of  production, with  a positive  impact 
on  the environment  as well. The early  retirement  scheme  is directed 
towards  restructuring  and will  help not only  to rationalize  holdings so 
that  farmers can  adjust  to the new conditions  but  also  to ease  the 
pressure  of  surplus output  on present  markets, while ensuring  that  the 
land  is used  for  non-agricultural  purposes  compatible with  the 
environment. 

3.  These  three accompanying  measures  are  interconnected  and  linked  closely 

with  the changes  being  proposed  in the market  organizations. 

If there  is to be better  control  of  production, and  efficiency  in 
managing  it, this cannot  be divorced  from other,  increasingly  sensitive 
issues such  as  the environment, alternative uses  for  land  as offered  by 
afforestation, the problem  of  ageing  among  farmers  and  the need  to 
adjust  farm  holdings. 

There  is therefore  a  Justified  argument  for  financing  the  costs 
occasioned  by  these proposals within  the same budget  framework  as  the 
legislation on  the market  organizations. 

1 

C0M(91) 258 final  of  22 July  1991, part  two. 

1 

4.  The  three measures, while  requiring  a voluntary  commitment  from 

farmers,  are mandatory  as  far  as  their  implementation  by  the  Member 
States  are  concerned.  To ensure  greater  flexibility  and  better 
adaptation  to  individual  circumstances, which  can  very  considerably 
between  regions,  the  schemes  are  to be  implementated  in the  form  of 
multiannual  operational  programmes,  to be  drawn  up  by  the Member  States 
and  the Commission  acting  in partnership.  In all  cases,  the  aid  paid 
will  be  subject  to maximum  levels eligible  for  part-financing  by  the 
Community  at  a  rate  between  50% and  75%  (the  actual  rate  being  decided 
in the  context  of  each  programme). 

I.  Agriculture  and  the  environment 

5.  The  agri-environment  measure  consists  of  an  incentive  scheme  to  farmers 

who  undertake: 

to  reduce  significantly  their  use of  polluting  substances  (chemical 
and  organic  fertilizers, pesticides,  herbicides); 
to  reduce  numbers  of  livestock  (cattle  and  sheep) where  damage  is 
being  caused  by  pressure  from  excessive  numbers; 
to employ  agricultural  practices  that  conserve  or  re-establish 
diversity  and  quality  in the  countryside  environment  (landscape, 
flora  and  fauna); 
to maintain  abandoned  land  (non-farmers  may  be  eligible  if  there 
are  no  farmers  available  to do  this); 
to withdraw  land  from  production  for  a prolonged  period  (twenty 
years)  for  environmental  purposes  (use  as  natural  parks,  creation 
of  natural  biotopes). 

The  Regulation  also  provides  for  aid  towards  training  for  farmers  in 
environmentally  friendly  production  methods  (not  explicitly  mentioned 
in the  Commission's  paper  on  the  future of  the  common  agricultural 
policy) because  it  is  important  to prepare  farmers  properly  for  the 
necessary  changeover  to new ways  of  farming. 

I I. Afforestation  of  agricultural  land 

6.  Major  difficulties  confront  the  farming  sector  because  of  the  need  to 
change  traditional  behaviour  patterns  and  devise  new  approaches  which 
will  allow  rural  populations  not  only  to develop  but  also  to manage  the 
countryside  in harmony  with  the  environment. 

Forestry  measures,  including  afforestation  of  suitable  farmland,  can 
help  to prevent  the  abandonment  of  farmland  and  the  consequent  risk of 
erosion  and  deterioration  of  the  landscape.  At  the  same  time,  forestry 
measures  can  provide  alternative  income  sources  for  farmers  and,  in due 
course,  help  to  reduce  the Community's  timber  deficit. 

Experience  gained  with  the  present  measures  shows  that  aid  levels  are 
insufficient  to  cover  the  cost  of  afforestation  and  income  losses.  The 
maximum  aid  rates  should  be  aligned  on  those of  the  set-aside  scheme, 
which  also  comprises  an  afforestation option.  This  would  encourage 

farmers  and  other  interested  parties  to undertake  farmland 
afforestation.  In addition,  afforestation  by  public  bodies,  including 
local  authorities,  should  be  supported  in order  to  help  resolve  the 
situât ion. 

7.  The measure  on  farmland  afforestation  consists  of  an  aid  scheme 

cover ing: 

investment  in afforestation  (including  that  carried  out  by  local 
author it ies); 
the upkeep  of  afforested  land  during  the  first  five years-, 
an  allowance  to offset  income  losses over  a maximum  period  of  20 
years,  varied  according  to  the  category  of  beneficiary  and  the 
species  planted; 
the  improvement  of  existing  stands  of  trees. 

I I I Ear I y  ret irement 

8.  The  need  to  change  traditional  attitudes  and  develop  new  opportunities 
in order  to enable  rural  communities  to survive  and  prosper  is  causing 
substantial  difficulties  for  the  agricultural  sector.  The  age 
structure  of  the  farming  population  poses  a special  problem.  About  two 
million  farmers  are  over  65  years old  and  over  two  and  a half  million 
are  between  55  and  65  years old.  Half  of  these  farmers  have  no 
successors. 

Two  in three  of  the  4.6  million  farmers over  55  years  of  age  own  less 
than  5  hectares. 

The medium-  and  long-term  prospects  for  agriculture  in the  Community 
and  the  reform  of  the market  support  mechanisms  mean  that  an  extra 
effort  of  adjustment  is being  asked  of  farmers. The  Commission  is 
therefore  proposing  that  the  present  early  retirement  scheme  be 
overhauled  and  made  into a more  effective  instrument  for  improving  the 
viability  of  holdings  and  providing  social  assistance  for  older 
farmers. 

9.  The  new  scheme  will  apply  to  farmers  aged  55  years  or  more  who  are  not 

yet  in receipt  of  a pension  (and  to persons  employed  on  the  holdings 
concerned).  It consists  of  an  aid  system  with  a maximum  amount  per 
holding,  with  the  aid  taking  any  of  the  following  forms: 

a  retirement  grant, 
annual  compensation  not  dependent  on  the  area  of  land  released, 
an  annual  allowance  per  hectare  of  released  land, 
a  retirement  pension  supplement  where  the  amount  paid  under  the 
national  retirement  scheme  is too  low  to  induce  farmers  to  stop 
farming. 

Combinations  of  the  above, possibly  on  a degressive  basis, will  be 
allowed,  with  maximum  flexibility,  but  subject  to a maximum  eligible 
amount  per  holding.  This  is why  a  "retirement  grant"  has  been  included 
in the  scheme  as  an  alternative,  although  it  is not  mentioned  in 
C0M(91)  258  final. 

4 

•3-

Proposal 
for  a Council  Regulation  (EEC) 
on  agricultural  production methods  compatible 
with  the  requirements of  the protection  of  the  environment 
and  the maintenance of  the  countryside 

(presented  by  the  Commission) 

Ç 

- 4-

Proposal  for  a 

Council  Regulation  (EEC) 

on  agricultural  production methods  compatible 
with  the  requirements  of  the  protection  of 
the  environment  and  the maintenance  of  the  countryside 

THE  COUNCIL  OF  THE  EUROPEAN  COMMUNITIES, 

Having  regard  to  the  Treaty  establishing  the  European  Economic  Community, 
and  in particular  Articles  42 and  43  thereof, 

Having  regard  to  the  proposal  from  the  Commission1, 

Having  regard  to  the opinion  of  the  European  Parliament2, 

Having  regard  to  the opinion  of  the  Economic  and  Social  Committee3, 

Whereas  the  requirements  of  environmental  protection  are  an  integral  part 
of  the  common  agricultural  policy; 

Whereas  measures  to  reduce  agricultural  production  in  the  Community  must 
have  a beneficial  impact  on  the  environment; 

Whereas  many  factors  affect  the  environment;  whereas  it  is subject  to  very 
diverse  pressures  within  the  Community-, 

Whereas,  on  the  basis  of  an  appropriate  aid  scheme,  farmers  can  serve 
society  as  a whole  by  introducing  or  continuing  to use  production  methods 
compatible  with  the  increasing  demands  of  protection  of  the  environment  and 
natural  resources  and  upkeep  of  the  landscape  and  the  countryside; 

Whereas  the  introduction of  an  aid  scheme  to encourage  substantial 
reductions  in  the use  of  fertilizers  and  plant  protection  products  can  help 
not  only  to  reduce  agricultural  pollution  but  also  to  adapt  a number  of 
sectors  to market  requirements  by  encouraging  less  intensive  production 
methods; 

1  OJ  No L 
2  OJ  No L 
3  OJ  No L 

É 

-5-

Whereas  a reduction  in  livestock  numbers  can  help  to avert  environmental 
damage  due  to pressure  from  excessive  numbers  of  sheep  and  cattle; whereas, 
therefore,  the extens ification  scheme  for  various products  provided  for  in 
Article  3 of  Council  Regulation  (EEC) No 2328/91  of  15 July  1991  on 
improving  the efficiency  of  agricultural  structures1  should  be 
incorporated  in the  scheme  introduced  under  this  Regulation; 

Whereas  the production of  products  for  non-food  uses under  a Community  set-
aside  scheme must  comply  with  the  requirements of  environmental  protection; 
whereas,  therefore,  this scheme must  not  apply  to such  products; 

Whereas  a scheme  to encourage  the  introduction  or maintenance  of  particular 
production  methods may  help  to solve  specific  problems  related  to 
protection of  the environment  or  the countryside  and  thus contribute  to 
env i ronmentaI  poIi cy goaI s ; 

Whereas many  agricultural  and  rural  areas  in the Community  are  increasingly 
threatened  by  depopulation, soil  erosion,  flooding  and  forest  fires-, 
whereas  the  institution of  special  measures  to encourage  the upkeep  of  land 
can  reduce  such  risks; 

Whereas  because  of  the  scale of  the problems  such  schemes  should  be 
applicable  to all  farmers  in the Community  who undertake  to use  farming 
methods which  will  protect, maintain  or  improve  the environment  and  the 
countryside  and  to  refrain  from  further  intensification of  agricultural 
production; 

Whereas  the current  set-aside  scheme  for  arable  land  provided  for  in 
Article  2 of  Regulation  (EEC) No  2328/91  has been  replaced  by  provisions  in 
the market  regulations-, whereas  it appears  none  the  less appropriate  to 
introduce  a scheme  for  long-term  set-aside  of  agricultural  land  for 
environmental  reasons; 

1  OJ  L  218, 6.8.1991.  p.1. 

> 

-6-

Whereas  the measures  provided  for  in this Régulât ion must  encourage  farmers 
to make  undertakings  regarding  farming  methods  compatible  with  the 
requirements  of  environmental  protection  and  maintenance  of  the 
countryside,  and  thereby  to contribute  to balancing  the market;  whereas 
the measures  must  compensate  farmers  for  any  income  losses caused  by 
reductions  in output  and/or  increases  in costs; 

Whereas  the  introduction  by  the Member  States of  codes of  good  agricultural 
practice  can  also  help  to make  farming  methods more  compatible  with  the 
requirements  of  environmental  protection; 

Whereas  because  of  the diversity  of  the environment,  natural  conditions and 
the  structure  of  agriculture  in the  various  parts of  the Community  the 
measures may  have  to be adapted;  whereas  they  should  therefore  be 
implemented  within  the  framework  of  zonal  programmes  for  the management  of 
agricultural  or  abandoned  land; 

Whereas  both  the Community  and  the Member  States must  increase  their  effort 
to educate  and  inform  farmers  about  the  introduction  of  production  methods 
compatible  with  the environment,  and  in particular  regarding  the 
application of  a code of  good  farming  practice; 

Whereas  in order  to guarantee  the maximum  effectiveness of  such  programmes 
it  is vital  to ensure  that  the  results  are  disseminated  and  monitored 
regularly; 

Whereas  such  measures must  contribute  towards  certain  specific 
environmental  goals  set  out  in Community  legislation; 

Whereas,  given  that  the Community  is to contribute  to  the  financing  of  the 
scheme,  it must  be  able  to ascertain  that  the  implementing  arrangements 
adopted  by  the Member  States  contribute  towards  the  attainment  of  its 
objectives;  whereas  the  structure  of  cooperation  between  the Member  States 
and  the Commission  introduced  by Article  29 of  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 
instruments2  should  be used  for  this  purpose, 

Whereas  the  resources  available  for  implementing  the measures  provided  for 
in this  Regulation  must  be  additional  to  those  available  for  the 
implementation  of  measures  under  the  rules governing  the  structural  Funds, 
and  in particular  for  measures  applicable  in regions  covered  by  Objectives 
1  and  5(b) as defined  in Article  1 of  Regulation  (EEC) No  2052/88, 

2  OJ  No  L  374, 31.12.1988, p. 1 

? 

HAS ADOPTED  THIS  REGULATION: 

-7-

Art icle 1 

PURPOSE 

In order  to: 

-  accompany  the  changes  to be  introduced  under  the market  organization 

rules; 

-  contribute  to  the  achievement  of  the Community's  policy  objectives 

regarding  agriculture  and  the environment; 

-  contribute  to providing  an appropriate  income  to  farmers, 

a Community  aid  scheme  part-financed  by  the Guarantee  Section  of  the 
European  Agricultural  Guidance  and  Guarantee  Fund  (EAGGF)  is hereby 
instituted  to  promote: 

(a) 

(b) 
(c) 

(d) 

(e) 

(f) 

the use of  farming  practices  which  reduce  the polluting  effects of 
agriculture,  thereby  also  contributing,  through  a  reduction  in 
production,  to  improved  market  balance; 
the extensif icat ion of  crop  farming  and  sheep  and  cattle  farming-, 
ways of  using  agricultural  land which  are  compatible  with 
protection  and  improvement  of  the environment,  the  countryside,  the 
landscape  and  the soil, and  the preservation  of  local  breeds  in 
danger  of  extinction; 
the upkeep  of  abandoned  farmland  and woodlands  where  this  is 
necessary  for  environmental  reasons or  because  of  natural  hazards 
and  fire  risks, and  thereby  avert  the  dangers  associated  with  the 
depopulation  of  agricultural  areas; 
long-term  set-aside  of  agricultural  land  for  reasons  connected  with 
the  environment; 
education  and  training  for  farmers  in  types  of  farming  compatible 
with  the  requirements  of  environmental  protection  and  upkeep  of  the 
countryside. 

<? 

-8-

Art icle 2 

AID  SCHEME 

1. The  scheme  may  include  aid  for  farmers who  undertake: 

(a)  to  reduce  substantially  their  use of  fertilizers and/or  plant 

protection  products, or  to keep  to  the  reductions already  made; 

(b)  to change, by means other  than  those  referred  to  in the  first 
indent,  to more  extensive  forms of  crop  production,  including 
forage  production, or  to maintain  extensive  production  methods 
introduced  in the past-, 

(c)  to  reduce  sheep  and  cattle numbers-, 
(d)  to use  other  production methods  compatible  with  the  requirements  of 
protection  of  the environment  and  natural  resources,  as well  as 
maintenance  of  the  countryside  and  the  landscape, or  to  rear 
animals  of  local  breeds  in danger  of  extinction; 

(e)  to ensure  the upkeep  of  abandoned  farmland  or  woodlands; 
(f)  to set  aside  farmland  for  at  least  20 years  with  a view  to  its use 
for  purposes  connected  with  the environment,  in particular  for  the 
establishment  of  biotope  reserves  or  natural  parks. 

2.  In addition,  the  scheme  may  include measures  to  improve  the  training  of 

farmers with  regard  to  farming  practices  compatible  with  the 
environment. 

Ao 

-9-

Article 3 

AID  PROGRAMMES 

1. Member  States shall  implement,  throughout  their  territories,  the aid 

scheme  provided  for  in Article  2 by means of multiannual  zonal 
programmes  covering  the objectives  referred  to  in Article  1.  The 
programmes  shall  reflect  the diversity  of environmental  situations, 
natural  conditions, agricultural  structure  and  the main  types of  farming 
practised. 

2  Each  zonal  programme  shall  cover  an area which  is homogeneous  in terms 
of  the environment  and  the countryside  and  shall  include,  in principle, 
all  of  the aids provided  for  in Article  2. 
However, where  there  is sufficient  Justification, programmes  may  be 
restricted  to aids which  are  in  line with  the specific  characteristics 
of  an  area. 

3. Zonal  programmes  shall  be drawn up  for  a minimum  period of  five  years 

and must  contain  at  least  the  following  information: 

(a)  a definition  of  the geographical  area  and, where  applicable,  the 

subareas  concerned; 

(b)  a description  of  the natural, environmental  and  structural 

characteristics of  the area; 

(c)  a description  of  the proposed  objectives  and  their  Justification  in 

view of  the characteristics of  the area; 

(d)  the conditions of grant  of  aid,  taking  into account  the  problems 

encountered; 

(e)  an estimate of  annual  expenditure  for  implementing  the  zonal 

programme. 

M 

-10-

Article  4 

NATURE AND AMOUNTS  OF  AID 

1. An  annual  allowance  per  hectare or  livestock unit  removed  from  a herd 

shall  be granted  to  farmers who make one or more of  the  undertakings 
referred  to  in Article  2 for  at  least  five years,  in accordance with  the 
programme  applicable  in the  zone concerned.  In the case of  set-aside, 
the undertaking  shall  be  for  20 years. 

2.  The maximum  eligible amount  of  the allowance  is: 

-  ECU  150 for  annual  crops  for which  an allowance  per  hectare  is granted 

under  the market  regulations governing  the crops  in question-, 

-  ECU  250  for other  annual  crops and  pasture; 
-  ECU  210  for  each  sheep or  cattle  livestock unit  by which  a herd  is 

reduced; 

-  ECU  100 for  each  livestock  unit  of  an endangered  breed  reared; 
-  ECU  400  for  specialized  olive groves; 
-  ECU  1 000  for  citrus  fruits; 
-  ECU 700  for other  perennial  crops and wine; 
-  ECU  250  for  the upkeep of  abandoned  land; 
-  ECU 600  for  land  set  aside. 

Livestock  numbers  shall  be converted  to  livestock  units on  the basis of 
the conversion  table  in the Annex. 

3. The maximum  eligible  amount  for  annual  crops and  pasture  shall  be 

increased  to ECU  350 per  hectare  if the  farmer  has, at  the same  time and 
for  the same  area, made one or  more of  the undertakings  referred  to  in 
Article  2(1)(a) or  (b), together  with  an undertaking  as  referred  to  in 
Article  2(1)(d). 

4. Where  an allowance  is granted  for  the  reduction of  the number  of 

Iivestock  units: 

-  the aids provided  for  in Article  2(1)(a) and  (b) may  not  be granted 

for  the  forage  area of of  the  holding; 

-  the maximum  eligible  amount  of  an allowance  for  forage  areas under 

Article  2(1)(d) shall  be  reduced  by 50%. 

a 

-11-

5. Subject  to conditions  to be  determined  by  the Commission  in  accordance 

with  the  procedure  laid  down  in Article  29 of  Regulation  (EEC) No 
4253/88,  the Community  may  contribute  to  the allowances  referred  to  in 
the  preceding  paragraphs  which  are granted  by Member  States  in order  to 
compensate  for  income  losses  resulting  from  the mandatory  application of 
the  restrictions  referred  to  in Article  2  in the  context  of  measures 
implemented  in the Member  States  pursuant  to Community  provisions. 

43 

-12-

Art icle 5 

CONDITIONS OF  GRANT 

1.  In order  to achieve  the objectives  of  this Regulation  in the  context  of 
the  zonal  programmes,  Member  States  shall  determine,  in compliance  with 
the  provisions  laid  down  herein: 

(a)  the  conditions  for  granting aid-, 
(b)  the  amount  of  aid  to be  paid, on  the  basis of  the undertaking  made 

by  the  beneficiary  and  of  the  loss of  income, and  of  the need  to 
provide  an  incentive; 

(c)  the  terms on which  the  aid  for  the upkeep  of  abandoned  land  as 
referred  to  in the  fifth  indent  of  Article  2 may  be  granted  to 
persons  other  than  farmers, where  no  farmers  are  available; 

(d)  the  conditions  to be met  by  the  beneficiary  to ensure  that 

compliance  with  the undertakings  may  be  verified  and  monitored; 

(e)  the  terms on which  the  aid  may  be granted  where  the  farmer 

personally  is unable  to make  an undertaking  for  the minimum  period 
required. 

2.  No  aid  may  be  granted  under  this  Regulation  in respect  of  areas  subject 

to  the  Community  set-aside  scheme  which  are  being  used  for  the 
production  of  non-food  products. 

3. While  ensuring  that  the measure  serves  as an  incentive, Member  States 

may  restrict  the  aid  to a maximum  amount  per  holding  and  differentiate 
it according  to  holding  size. 

Ah 

-13-

Article  6 

COURSES, TRAINEESHIPS AND  DEMONSTRATION  PROJECTS 

Where  no  financing  is granted  under  Article  28 of  Regulation  (EEC) No 
2328/913, Member  States may  introduce  a separate  aid  scheme  for 
training  courses  and  traineeships  concerned  with  farming  practices 
compatible with  the  requirements  of  protection  of  the environment  and 
natural  resources  and  maintenance  of  the  countryside  and  the  landscape, 
and  particularly  with  codes of  good  farming  practice  or  good  organic 
farming  pract ice. 

The  aid  scheme  shall  include  the grant  of  aid: 

-  for  attendance  of  courses  and  traineeships; 
-  for  the organization  and  implementation  of  courses  and  traineeships. 

The  expenditure  incurred  by  the Member  States  in granting  the  aid 
referred  to  in the  previous  subparagraph  shall  be eligible  up  to 
ECU  2 500 per  person  completing  a  full  course  or  traineeship. 

The measure  concerned  by  this Article  shall  not  cover  courses or 
traineeships which  are  part  of  normal  programmes  or  curricula of 
secondary  or  higher  agricultural  education. 

The  Community  may  contribute  to demonstration  projects  concerning 
farming  practices  compatible  with  the  requirements  of  environmental 
protection,  and  in particular  the  application  of  a code  of  good  farming 
practice. 

The  Community  contribution  referred  to  in the  previous  subparagraph  may 
cover  assistance  for  training  and  education  initiatives  organized  by 
local  or  non-governmental  organizations competent  in this  field. 

3  OJ  No L  218, 6.8.1991,  p. 1 

ti 

-14-

Articie  7 

PROGRAMME  APPRAISAL  PROCEDURE 

1. Member  States  shall  communicate  to  the Commission,  by  ...  (within  12 

months  of  the entry  into  force of  this Regulation),  the  draft  programmes 
referred  to  in Article  3 and  any  existing  or  proposed  laws,  regulations 
or  administrative  provisions  by which  they  intend  to apply  this 
Régulât ion. 

2.  The  Commission  shall  examine  the  texts  communicated  in order  to 

determine: 

-  their  compliance  with  this Regulation,  taking  account  of  its 

objectives  and  the  links between  the various measures, 
-  the  nature of  the measures  eligible  for  part-financing, 
-  the  total  amount  of  expenditure  eligible  for  part-financing, 
-  the  rate of  Community  part-financing  for  the whole of  the  programme, 
up  to 50%.  The  rate may  be  Increased  to 75%  in Objective  1 regions. 

3. The  Commission  shall  decide  on  the  approval  of  the  zonal  programmes  and 
the  rates of  Community  part-financing, on  the  basis of  the  factors 
listed  in paragraph  2 and  in accordance  with  the  procedure  laid  down  in 
Article  29 of  Regulation  (EEC) No 4253/88. 

Art icle 8 

DETAILED  RULES OF  APPLICATION 

Detailed  rules  for  the  application  of  this Regulation  shall  be  adopted  by 
the Commission  in accordance  with  the  procedure  laid  down  in Article  29 of 
Regulation  (EEC) No 4253/88. 

3) 

4l> 

-15-

Article  9 

FINAL  PROVISIONS 

1. This  Regulation  shall  not  preclude  Member  States  from  implementing, 

except  in  the  field  of  application  of  Article  5 ( 2 ), other  aid  measures, 
subject  to conditions of  grant  other  than  those  laid  down  herein  and 
amounts  exceeding  the  limits stipulated  herein,  provided  that  the  said 
measures  comply  with  the objectives  of  this  Regulation  and  with  Articles 
92,  93  and  94 of  the  Treaty. 

2.  Three  years  after  the  date of  entry  into  force  in  the Member  States,  the 
Commission  shall  present  a  report  to  the  European  Parliament  and  the 
Council  on  the  application of  this  Regulation. 

Art icle  10 

REPEAL  OF  PROVISIONS 

1. Article  3 of  Regulation  (EEC) No  2328/91, dealing  with  extensification 

of  production,  is repealed.  It shall  remain  applicable  to  undertakings 
made  before  the  entry  into  force  of  this  Regulation. 

2.  Articles  21  to  24 of  Regulation  (EEC) No  2328/91, dealing  with  aid  in 
environmentally  sensitive  areas, are  repealed.  They  shall  remain 
applicable  to  aid  granted  before  that  date,  and  the maximum  eligible 
amounts  shall  be  adjusted  in  line with  the  amounts  provided  for  in 
Article 3(1). 

A}-

-16-

Article  11 

ENTRY  INTO  FORCE 

This  Regulation  shall  enter  into  force  on 

This  Regulation  shall  be  binding  in  its entirety  and  directly  applicable  in 
a 11 Member  States. 

4* 

ANNEX 

Table for converting cattle, equines, sheep and goats into livestock units (LU) (referred to in Article  J/ 

Bulls, cows and other bovine animals over two years, equines over six months 

Bovine animals from six months to two years 
Sheep 
Goats 

1.0  LU 

0.6  LU 
0.15  LU 
0.15  LU 

The coefficients relating to sheep and goats apply to the maximum and minimum amounts per livestock unit as 
defined  in Article Lf 

thl 

A°> 

Proposal  for a 

COUNCIL  REGULATION  (EEC) No 

/.. 

instituting a Community  aid schema  for 

forestry  measures  in agriculture 

presented  by  the  Commission 

2JO 

Proposal  for a 

COUNCIL  REGULATION  (EEC) No 

/.. 

instituting  a Community  aid  scheme  for 

forestry  measures  in agriculture 

THE  COUNCIL  OF THE  EUROPEAN  COMMUNITIES, 

Having  regard  to  the Treaty  establishing  the European  Economic  Community,  and  in 

particular  Articles  42 and  43  thereof, 

Having  regard  to the  proposal  from  the  Commission1, 

Having  regard  to  the opinion  of  the European  Parliament2, 

Having  regard  to  the opinion  of  the Economic  and  Social  Committee3, 

Whereas  the  afforestation of  agricultural  land  is  important  both  from  the point 

of  view of  soil  use  and  the environment  and  as an accompaniment  to the 

Community's  policy  for  containing  agricultural  production; 

Whereas  experience  in matters of  afforestation of  agricultural  land by  farmers 

shows  that  existing  aid  schemes  for  promoting  afforestation  are  insufficient; 

whereas  afforestation of  agricultural  land withdrawn  from  agricultural 

production  in recent  years  has proved  unsatisfactory; 

1 

2 

3 

OJ  C  ... 

OJ  C  ... 

OJ  C  ... 

2-\ 

Whereas,  therefore,  the measures  provided  for  in Title  VI I I of  Council 

Regulation  (EEC) No  2328/91  of  15  July  1991  on  improving  the  efficiency  of 
agricultural  structures4  should  be  replaced  by  measures  which  provide  more 

effective  encouragement  to  afforestation  of  agricultural  land; 

Whereas  the  eligible  amounts  of  the  costs  of  afforestation  must  correspond  to 

the  effective  costs  of  afforestation  observed  in the  Community; 

Whereas  a degressive  allowance  for  the  first  five  years  to  alleviate  the  cost  of 

maintenance  of  new  woodlands  may  contribute  significantly  towards  the 

encouragement  of  afforestation; 

Whereas  in order  to  increase  afforestation  of  agricultural  land  as  a way  of 

furthering  the  aims  of  the  CAP  it  is necessary  to  introduce  allowances  to 

compensate  for  the  income  loss  incurred  by  farmers  during  the  non-productive 

period  of  afforested  agricultural  land; 

Whereas  in many  cases  private  persons  other  than  farmers  will  be  in a  position 

to undertake  afforestation  of  agricultural  land;  whereas  provision  should  be 

made  for  incentives  to  be  offered  to  such  persons-,  whereas,  therefore,  an 

allowance  per  hectare  should  be  introduced  for  the  benefit  of  private  persons 

other  than  farmers  who  undertake  afforestation  of  agricultural  land; 

Whereas  in many  parts  of  the  Community  afforestation  of  agricultural  land  may  be 

undertaken  by  public  authorities,  in particular  local  authorities;  whereas, 

therefore,  afforestation  schemes  undertaken  by  such  authorities  should  be 

supported  and  reinforced; 

Whereas  eucalyptus  and  Christmas  tree  plantations  are  generally  fairly 

profitable;  whereas,  therefore,  for  afforestation  with  these  species,  it  is 

sufficient  to  provide  Community  assistance  for  afforestation  costs  incurred  by 

farmers  practising  farming  as  a main  occupation; 

OJ  L  218, 6.8.1991,  p.1 

2*. 

Whereas  the  improvement  of  existing  farm woodlands  can  help  to  improve  the 

incomes of  persons  employed  in farming-,  whereas,  in particular, because of  the 

structural  and other  problems  affecting  cork  production, measures  to  improve 

existing  cork oak  stands  should  be  reinforced; 

Whereas, given  that  the Community  is to contribute  to the  financing of  the 

measure,  it must  be  able  to ascertain  that  the  implementing  arrangements  adopted 

by  the Member  States  contribute  towards  the attainment  of  its objectives; 

whereas,  for  this purpose, a structure of  cooperation should  be set  up  between 

the Member  States  and  the Commission  in the Standing  Forestry  Committee  set  up 
by Council  Decision  89/367/EEC5-, 

Whereas  the  resources  available  for  implementing  the measures  provided  for  in 

this  Regulation  must  be  additional  to those  available  for  the  implementation of 

measures  under  the  rules governing  the structural  Funds, and  in particular  for 

measures  applicable  in regions  covered  by Objectives  1 and  5(b) as defined  in 

Article  1 of  Regulation  (EEC) No 2052/88, 

HAS ADOPTED  THIS  REGULATION 

Article 1 

PURPOSE 

In order  to: 

-  accompany  the  changes  to be  introduced  under  the market  organization  rules, 

-  contribute  towards  an eventual  improvement  in forest  resources, 

-  contribute  towards  forms of  countryside management  more  compatible  with 

environmental  balance, 

OJ  No L  165, 15.6.1989, p. 14. 

23 

a Community  aid  scheme  part-financed  by  the Guarantee  Section of  the  European 

Agricultural  Guidance  and  Guarantee  Fund  (EAGGF)  is hereby  instituted  to 

promote: 

(a) afforestation  as  an  alternative  use of  agricultural  land, 

(b) the  development  of  forestry  activities  on  farms. 

Article  2 

AID  SCHEME 

1. 

The  aid  scheme  may  comprise-. 

(a)  aid  for  afforestation  costs; 

(b)  an  annual  allowance  per  hectare  afforested  to cover  maintenance  costs 

in the  first  five  years; 

(c)  an annual  allowance  per  hectare  to cover  losses of  income  resulting 

from  afforestation of  agricultural  land; 

(d)  investment  aid  for  the  improvement  of woodlands  by  the  provision  of 

shelterbelts,  firebreaks, waterpoints  and  forest  roads, and  for  the 

improvement  of  cork  oak  stands. 

2. 

(a)  Aid  as  referred  to  in paragraph  1(a) and  (b) may  be granted  to any 

natural  or  legal  person  undertaking  afforestation of  agricultural  land. 

(b)  Aid  as  referred  to  in paragraph  1(c) shall  be eligible  only  if  it  is 

granted  to: 

-  farmers  not  qualifying under  the early  retirement  scheme  introduced  by 

Regulation  (EEC) No  ..  instituting  a Community  aid  scheme  for  early 
retirement  from  farming6 

-  any other  private-law  natural  or  legal  person. 

OJ  L  .. 

24 

(c)  In the  case of  eucalyptus  and  Christmas  tree  plantations, aid  as 

referred  to  in paragraph  1(a) shall  be eligible only  if  it  is granted  to 

farmers  practising  farming  as a main  occupation  in accordance  with  Article 

5(1)(a) of  Regulation  (EEC) No 2328/91. 

(d)  Aid  as  referred  to  in paragraph  1(d) shall  be eligible  only  if  it  is 

granted  to  farmers or  associations  thereof. 

3. 

The  scheme may  also  comprise  a Community  contribution  to  the  costs of 

afforestation  of  agricultural  land undertaken  by  the  competent  public 

authorities  of  the Member  States. 

Art icle 3 

AMOUNT  OF  AID 

The maximum  eligible  amounts of  aid  as  referred  to  in Article  2 are  as  follows: 

(a)  in  the  case of  afforestation  costs: 

-  ECU  2000 per  hectare  for  plantations  of  conifers  and  eucalyptus 

-  ECU  4000  per  hectare  for  plantations  of  broadleaves  or  mixed  plantations 

comprising  not  less  than  75% of  broadleaves. 

(b)  in the  case of  maintenance  costs: 

-  ECU  250 per  hectare  per  year  for  the  first  two years  and  ECU  150 per 

hectare  per  year  for  the  following  years  in the  case  of  conifer 

plantât ions; 

-  ECU  500 per  hectare  per  year  for  the  first  two years  and  ECU  300 per 

hectare  per  year  for  the  following  years  in the  case of  broadleaf 

plantations  or  mixed  plantations  comprising  not  less  than  75% broadleaves. 

is 

(c)  in the case of  the allowance  to compensate  for  income  losses: 

-  ECU  600 per  hectare  per  year  if the afforestation  is undertaken  by a 

farmer -, 

-  ECU  150 per  hectare  per  year  if the afforestation  is undertaken  by 

another  party  as  referred  to  in Article  2(2)(b), 

for  a maximum  period  of  20 years  from  the  date of  first  afforestation. 

(d)  in the case of  improvements  of  existing  woodlands: 

-  ECU  700 per  hectare  for  woodland  improvement  and  the  provision  of 

shelterbelts; 

-  ECU  1400 per  hectare  for  renovation  and  improvement  of  cork  oak  stands; 

-  ECU  18 000 per  kilometre  for  forest  roads; 

-  ECU  150 per  hectare  of  woodland  provided  with  firebreaks  and  waterpoints, 

The  cost  of  adapting  agricultural  machinery  for  forestry  work  shall  be 

included  in the  investment  referred  to  in the  first  paragraph. 

At  the  justified  request  of  a Member  State  and  subject  to  the  availability 

of  funds,  the Commission  may  decide,  in accordance  with  the  procedure  laid 

down  in Article  5,  to  increase  the  amounts  laid  down  for  woodland 

improvements  and  for  the  renovation  and  improvement  of  cork  oak  stands  to 

ECU  1200 per  hectare  and  ECU  3000 per  hectare  respectively. 

Article  4 

AID  PROGRAMMES 

1. 

Member  States  shall  implement  the  aid  scheme  referred  to  in Article  2 by 

means  of multiannual  zonal  programmes  covering  the objectives  laid  down  in 

Article  1.  Zonal  programmes  shall  reflect  the  diversity  of  environmental 

situations,  natural  conditions  and  the structure  of  agriculture. 

26 

2.  Zonal programmes shall contain the following information: 

- conditions in respect of the location and grouping of areas which may be 

afforested; 

- measures taken to lay down afforestation conditions and syIv(cultural 

practices to be complied with; 

- the amounts of aid; 

- measures taken to evaluate and monitor environmental  impact; 

- details of any accompanying measures taken or planned; 

- an estimate of the annual cost of  implementing the programme. 

Art icle 5 

PROGRAMME APPRAISAL PROCEDURE 

1.  Member States shall communicate to the Commission, by  ... (within 12 months 

of the entry  into force of this Regulation),  the draft zonal programmes 

referred to in Article 4 and any existing or proposed  laws, regulations or 

administrative provisions by which they  intend to apply this Regulation. 

2.  The Commission shall examine the texts communicated by the Member States in 

order  to determine: 

-  their compliance with this Regulation, taking account of  its objectives 

and the  links between the various measures; 

- the nature of the measures eligible for part-financing; 

- the total amount of expenditure  eligible for part-financing; 

- the rate of Community part-financing for the whole of the programme, up 

to 50%.  The rate may be  increased to 75% in Objective 1 regions. 

"2* 

3. 

The  Commission  shall  decide  on  the  approval  of  zonal  programmes,  including 

the  rates of  Community  part-financing, on  the basis of  the  factors  listed 

in paragraph  2.  For  this  purpose  the Commission  representative  shall 

submit  to  the Standing  Forestry  Committee  set  up  by  Council  Decision 

89/367/EEC  a draft  decision  on  the matter. 

The  Committee  shall  deliver  its opinion  on  the  draft  within  a  time  limit 

which  the  chairman  may  lay down  according  to  the urgency  of  the matter.  The 

opinion  shall  be  delivered  by  the majority  laid  down  in Article  148(2) of 

the  Treaty  in the  case  of  decisions  which  the Council  is required  to adopt 

on  a proposal  from  the Commission.  The  votes of  the  representatives of  the 

Member  States  within  the  committee  shall  be weighted  in the manner  set  out 

in that  Article. The  chairman  shall  not  vote. 

The  Commission  shall  adopt  measures  which  shall  apply  immediately  . 

However,  if  these  measures  are  not  in accordance  with  the opinion  of  the 

committee,  they  shall  be  communicated  by  the Commission  to  the  Council 

forthwith.  In that  event  the Commission  may  defer  application  of  the 

measures  which  it  has  decided  for  a period  of  not  more  than  one month  from 

the  date  of  such  communication. 

The  Council,  acting  by  a qualified  majority, may  take  a different  decision 

within  the  time  limit  referred  to  in the  previous  paragraph  . 

Art icle  6 

DETAILED  RULES OF  APPLICATION 

Detailed  rules  for  the  application  of  this  Regulation  shall  be  adopted  by  the 

Commission  in accordance  with  the  procedure  laid  down  in Article  5. 

z?> 

Article  7 

FINAL  PROVISIONS 

1. 

Articles  25, 26 and  27 of  Regulation  (EEC) No 2328/91  are  repealed.  They 

shall  remain  applicable  to aid granted  before  the entry  into  force of  this 

Régulât ion. 

2. 

This  Régulât ion shall  not  preclude Member  States  from  implementing  in the 

same  field of  application other  aid measures, subject  to conditions of 

grant  other  than  those  laid  down  herein  and  amounts exceeding  the  limits 

stipulated  herein, provided  that  the said measures  comply  with  the 

objectives of  this Regulation  and with  Articles 92, 93 and 94 of  the 

Treaty. 

Art icle 8 

ENTRY  INTO  FORCE 

This  Regulation  shall  enter  into  force on  ... 

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

Member  States. 

Done  at  ..  , 

For  the Counci 

The  President 

z/? 

-3-

Proposal  for  a 

COUNCIL  REGULATION  (EEC) 

instituting  a Community  aid  scheme 

for  early  retirement  from  farming 

presented  by  the  Commission 

lo 

-4-

Proposai  for a 

COUNCIL  REGULATION  (EEC) 

instituting a Community  aid  scheme 

for early  retirement  from  farming 

THE COUNCIL  OF  THE  EUROPEAN  COMMUNITIES, 

Having  regard  to  the Treaty  establishing  the European  Economic  Community, 

and  in particular  Articles  42 and  43  thereof, 

Having  regard  to  the proposal  from  the  Commission1, 

Having  regard  to  the opinion  of  the European  Parliament2, 

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

Whereas, given  the medium-to-long  term outlook  for  Community  agriculture 

and  the  reform  of  the market  support  mechanisms, a greater  effort  of 

adjustment  is being  required  of  farmers; 

Whereas  early  retirement  from  farming  should  be encouraged  in order  to 

improve  the  viability  of  agricultural  holdings; 

Whereas  an aid  scheme  for  early  retirement  can  help  to provide  an  income 

for  elderly  farmers who decide  to stop  farming,  to encourage  the 

replacement  of  such  elderly  farmers by  farmers able  to  improve  the 

viability of  the  remaining  agricultural  holdings  and  to allow  the 

reassignment  of  agricultural  land  to non-agricultural  uses where  there  are 

no  farmers  likely  to  take  it over  in satisfactory  conditions of  viability; 

1  OJ  L... 

2  OJ  C. 

3  OJ C. 

lA 

-5-

Whereas  elderly  family  helpers  and  paid  workers  may  lose  their  employment 

and  income  if the  agricultural  holding  employing  them  ceases  to  operate; 

whereas  provision  should  therefore  be made  for  an  income  source  for  such 

persons; 

Whereas  to ensure  the effectiveness of  the scheme  aid  should  be  provided 

for  setting  up  services  and  networks  to organize  the  transfer  and  expansion 

of  agricultural  holdings  and  the  rational  use of  the  countryside; 

Whereas  the  diversity  of  the  causes, nature  and  gravity  of  the  structural 

problems  in agriculture  may  call  for  solutions  differentiated  according  to 

the  region  concerned  and  adaptable  over  time;  whereas  a contribution  must 

be made  to  the overall  economic  and  social  development  of  each  region 

concerned;  whereas  the  best  results  will  be obtained  if Member  States, 

applying  Community  criteria,  implement  the  scheme  in  the  form  of 

multiannual  programmes  drawn  up  in consultation  with  the  Commission,  and 

adopt  the  laws, regulations  and  administrative  provisions  necessary  for 

their  implementation; 

Whereas  a procedure  should  be  laid  down  for  adopting, where  necessary, 

detailed  rules  for  the  application  of  this  Regulation,  especially  as 

regards monitoring  arrangements, 

Whereas  the  resources  available  for  implementing  the  measures  provided  for 

in this  Regulation  must  be  additional  to  those  available  for  the 

implementation  of  measures  under  the  rules governing  the  structural  Funds, 

and  in particular  for  measures  applicable  in regions  covered  by  Objectives 
1  and  5(b) as defined  in Article  1 of  Regulation  (EEC) No  2052/884, 

HAS ADOPTED  THIS  REGULATION: 

4  OJ  No  L  185,  15.7.1988, p.  9. 

3^ 

-6-

Art icle 1 

PURPOSE 

1.  In order  to accompany  the changes  to be  introduced  under  the market 

organization  rules a Community  aid  scheme  for early  retirement  from 

farming, part-financed  by  the Guarantee  Section of  the  European 

Agricultural  Guidance  and Guarantee  Fund  (EAGGF),  is hereby  instituted. 

2.  Early  retirement  aid  shall  contribute  simultaneously  to the  following 

object ives: 

(a) providing  an  income  for elderly  farmers who decide  to stop  farming; 

(b) encouraging  the replacement  of  such elderly  farmers by  farmers able 

to  improve  the economic  viability  of  the remaining  agricultural 

holdings; 

(c) reassigning  agricultural  land  to non-agricultural  uses where  it 

cannot  be  farmed  in satisfactory  conditions of  viability. 

3. Early  retirement  aid may  comprise measures to: 

(a) provide  an  income  for elderly  family  helpers  and  paid  farm  workers 

who  lose  their  employment  as a result of  a farmer's early  retirement; 

(b) organize  the  transfer  and expansion of  agricultural  holdings and 

ensure  rational  use of  the countryside. 

33 

-7-

Article  2 

DEFINITIONS 

For  the purposes of  this Regulation, 

'transferor' means a farmer  who stops all  commercial  farming  activity 

definitively  pursuant  to this early  retirement  aid scheme-, 

'worker' means  a family  helper  or  paid  farm worker  who was employed  on a 

transferor's  agricultural  holding  before  his early  retirement  and who 

stops  all  farm work  definitively; 

'farming  transferee' means  a farmer  who succeeds  the  transferor  at  the 

head of  the agricultural  holding  and expands  it on  the same occasion, or 

a  farmer  who  takes over  ail  or  part  of  the  land  released  by  a  transferor 

in order  to expand  his own  agricultural  holding; 

'non-farming  transferee' means any other  person or  body who  takes over 

all  or  part  of  the  released  land  to use  it for  non-agricultural 

purposes, afforestation or  the creation of  ecological  reserves; 

'released  land' means  land which was  farmed  by  a transferor  before  he 

stopped  farming  commercially  and  is no  longer  farmed  by him-, 

'farming  as a main occupation' means  farming  in accordance  with  Article 

5(1)(a) of  Council  Regulation  (EEC) No 2328/91  of  15 July  1991  on 

improving  the efficiency  of  agricultural  structures1-, 

1  OJ  No L 218, 6.8.1991,  p.1 . 

i4 

-8-

Art icle 3 

AID  SCHEME 

1. Early  retirement  aid granted  to transferors may  take  the  following 

forms: 

(a) retirement  grant, 

(b) annual  compensation  not  dependent  on  the area  of  land  released, 

(c) annual  allowance  per  hectare of  released  land, 

(d) retirement  pension  supplement  where  the amount  paid  under  the 

national  retirement  scheme  is too  low to  induce  farmers  to stop  farming. 

These  forms of  aid may  be combined  and may  be paid  in degressive  annual 

amounts. 

The  total  amount  eligible  for  part-financing  per  holding  shall  be 

calculated  on  the basis of  the  following  reference  method: 

(a)  aid  is paid,  from  the  age of  early  retirement  to  the  normal 

retirement  age,  in the  form of  annual  compensation  at  a  rate of 

ECU  4 000 per  holding,  plus an annual  allowance  of  ECU  250 per  hectare, 

up  to a maximum  annual  total  of  ECU  10 000 per  holding; 

(b)  aid  is paid,  as appropriate,  in the  form of  an  annual  supplement  to 

the  normal  retirement  pension  paid  by  the Member  State  in order  to 

arrive  at  the  same  annual  total  amount  as  that  specified  in (a); 

(c)  the duration  of  payment  of  aid  as defined  in  (a) and  (b) does not 

exceed  10 years  and  does not  continue  after  the  transferor's  seventieth 

birthday. 

Member  States may  use  a method  of  payment  different  from  the  reference 

method  defined  in the preceding  subparagraph,  consisting  in the  payment 

of  smaller  annual  amounts, on  a degressive  scale  and  for  a  period 

exceeding  10 years or  continuing  beyond  the  transferor's  seventieth 

birthday.  In such  cases,  the amount  eligible  for  part-financing  shall 

V 

-9-

not  exceed  the amount  which would  be obtained  by using  the method  of 

reference. 

3é? 

-10-

Furthermore, where  the  aid  scheme  includes  a  retirement  grant,  the 

maximum  amount  of  the grant  eligible  for  part-financing  shall  not  exceed 

ECU  12 000, plus  ECU  750 per  hectare  of  released  land, up  to a  limit  of 

ECU  30 000  per  holding;  this amount  shall  be  considered  as within  the 

total  amount  eligible  for  part-financing  calculated  by  the  reference 

method. 

2.  Early  retirement  aid  granted  to workers may  take  the  following  forms: 

(a) retirement  grant, 

(b) annual  compensation. 

These  forms  may  be  combined. 

The  total  amount  eligible  for  part-financing  per  worker  shall  be 

calculated  on  the  basis of  the  following  reference  method: 

(a)  aid  is paid,  from  the age of  early  retirement  to  the  normal 

retirement  age,  in the  form  of  annual  compensation  at  a  rate of 

ECU  2 500  per  worker -, 

(b)  the  duration  of  payment  of  compensation  as  referred  to  in  (a) does 

not  exceed  10 years  and  does  not  continue  after  the worker's  normal 

retirement  age. 

Member  States  may  use  a method  of  payment  different  from  the  reference 

method  defined  in the  preceding  subparagraph,  consisting  in the  payment 

of  smaller  annual  amounts, on  a degressive  scale  and  for  a  period 

exceeding  10 years or  continuing  beyond  the worker's  normal  retirement 

age.  In such  cases,  the  amount  eligible  for  part-financing  shall  not 

exceed  the  amount  which  would  be obtained  by using  the method  of 

reference.  Furthermore, where  the  aid  scheme  includes  a  retirement 

grant,  the  amount  of  the grant  eligible  for  part-financing  shall  not 

exceed  ECU  7  500 per  worker;  this  amount  shall  be  considered  as within 

the  total  amount  eligible  for  part-financing  calculated  by  the  reference 

method. 

3ï-

-11-

Early  retirement  aid  shall  be  eligible  for  part-financing  by  the 

Community  for  two  workers  per  agricultural  holding. 

3. Member  States  may  grant  start-up  aid  for  services  and  networks 

responsible,  within  the  context  of  the  programme,  for  organizing  the 

transfer  and  expansion  of  agricultural  holdings  and  the  rational  use  of 

the  countryside;  such  aid  shall  be  intended  to  contribute  towards 

operat ing  costs. 

The  services  may  carry  out  surveys of  agricultural  holdings  to  be 

transferred,  compile  a  directory  of  land  and  agricultural  holdings 

available  or  wanted,  and  draw  up  documents  relevant  to  the  planning  of 

the  use  of  land  released  by  transferors.  They  may  also  take  charge  of 

released  land  and  reconvey  it at  a  later  date  to  a  transfeeree 

satisfying  the  conditions  laid  down  in this  Regulation. 

To  qualify  for  aid  such  services  must  be  approved  by  the  Member  State 

and  employ  at  least  one  full-time  person  fully  qualified  for  the  duties 

he must  perform. 

The  start-up  aid  eligible  for  part-financing  by  the  Community  is 

ECU  36  000  per  full-time  employee.  Payment  of  this  amount  shall  be 

spread  over  the  first  five  years  of  employment  of  each  person. 

38 

-12-

Article  4 

AID  PROGRAMMES 

1. Member  States  shall  implement  the  aid  scheme  throughout  their  territory 

by means of  multiannual  programmes  drawn  up  at  national  or  regional 

level. 

2.  Each  programme  shall  include  the  following: 

-  the  geographical  limits of  the  area  covered; 

-  a description  of  the  structural  situation  of  the  area,  including 

statistical  data  on  the  number  of  agricultural  holdings, by  size  and  by 

age of  farmer,  and  on  incomes; 

-  a description  of  the  early  retirement  and  retirement  schemes  existing 

in the  area,  the  degree  of  take-up  in recent  years  and  problems 

encountered; 

-an  indication, with  explanatory  comments, of  the  rates  and  conditions 

of  grant  of  aid,  by  type of  beneficiary; 

-  an  estimate  of  the  number  of  transferors,  transferees  and  workers  who 

will  be  concerned  by  such  aid; 

-  an  estimate  of  the  number  of  hectares  which  will  be  released  by  the 

transferors  and  the  proportions  which  will  be  transferred  to  farming 

transferees  (successors  or  other  farmers) and  non-farming  transferees; 

-an  estimate  of  the  expected  costs of  the  various  types of  aid  envisaged 

and  the  financial  means  required,  together  with  the expected  schedule  of 

expenditure; 

-  the  proposed  timetable  for  implementing  the  various  types of  aid. 

3"? 

-13- 

s 

Article  5 

CONDITIONS APPLICABLE TO PERSONS  CONCERNED 

Grant  of  aid  shall  be subject  to the  following  conditions: 

(1)  A  transferor  must: 

-  be not  less than  55 years old  but  not  yet  of  normal  retirement  age; 

-  have  practised  farming  as a main occupation  for  the  ten  years 

preceding  transfer; 

(2)  A  farming  transferee  must: 

-  have worked  on  an agricultural  holding  for  at  least  the  two-year 

period  prior  to the  transfer  of  the released  land,  and  have  devoted  at 

least  half  of  his/her  working  time  to farming  during  that  period; 

-  undertake  to practise  farming  as a main occupation on  the agricultural 

holding  for  not  less than  5 years  in accordance  with  the conditions  laid 

down  in Article  6(3) and (4); 

(3)  A worker  must 

-  be not  less than  55 years old  but  not  yet  of  normal  retirement age-, 

-  stop  farming  completely  and  definitively  after  having  devoted  at  least 

half  of  his/her  working  time  to  it during  the preceding  five years; 

-  have worked  on  the  transferor's  agricultural  holding  for  at  least  the 

two-year  period  prior  to  the early  retirement  of  the  transferor-, 

-  belong  to a social  security  scheme; 

(4)  A non-farming  transferee  must 

-  undertake  to use  the  land  in accordance  with  Article 6(5). 

Ao 

-14-

Article  6 

CONDITIONS  APPLICABLE  TO RELEASED  LAND 

1. The  conditions  laid  down  in this Article  must  be  applied  throughout  the 

period  during  which  the  transferor  receives  early  retirement  aid. 

2.  Transferors  may  continue  farming  a maximum  of  10%, but  not  more  than  one 

hectare,  of  their  agricultural  land  provided  that  they  stop  commercial 

production  completely. 

3. The  size of  the  agricultural  holdings  resulting  from  the  transfer  of 

land  released  by  the  transferor  must  be  increased  so  as  to  improve  their 

economic  viability,  in compliance  with  conditions  to be  defined  by  the 

Member  States  as  regards,  for  instance,  area,  volume  of  work  or  income, 

according  to  the  region  and  type  of  production. 

4.  Released  land  transferred  to  farming  transferees  must  be  farmed  for  not 

less  than  five  years,  in harmony  with  the  requirements  of  environmental 

protect ion. 

5.  Released  land  transferred  to non-farming  transferees  must  be  used  in a 

manner  compatible  with  protection  of  the  quality  of  the  environment  and, 

if necessary,  maintained  in such  a way  as  to preserve  the  countryside. 

6.  Released  land  may  be  included  in a  reparcelling  operation  or  an  exchange 

of  parcels.  In such  cases,  the  conditions  laid  down  in  this  Article 

must  be  applied  to areas  equivalent  to  those of  the  released  land. 

Released  land  may  be  taken  in charge  by  a body  which  undertakes  to 

reconvey  it  at  a  later  date  to a  transferor  who  satisfies  the  conditions 

laid  down  in this  Regulation. 

U 

-15-

Art icle  7 

NATIONAL  PROVISIONS 

1. Member  States  shall  adopt  the  necessary  laws, regulations  and 

administrative  provisions  to  implement  the  programme.  They  must  ensure: 

-  that  the  programme  is sufficiently  attractive  compared  with  early 

retirement  schemes  already  existing  in the  area  of  application-, 

-  the ease  of  transfer  of  released  land,  in particular  by  encouragement 

of  appropriate  forms of  tenancy  in cases where  the  transferee  is unable 

to purchase  the  released  land, 

-  that  land  purchase  or  rental  contracts  contain  clauses  requiring 

compliance  with  the  conditions  laid  down  in Article  6  regarding  use  of 

the  land; 

-  the  establishment  of  services  and  networks  responsible  for  organizing 

the  transfer  and  expansion  of  agricultural  holdings  and  the  rational  use 

of  the  countryside. 

-  a progressive  transition  from  the  Community  early  retirement  aid 

scheme  to  the  national  retirement  scheme. 

2.  This  Regulation  shall  not  preclude  Member  States  from  implementing  other 

aid  measures,  subject  to  conditions of  grant  other  than  those  laid  down 

herein  and  amounts  exceeding  the  limits  stipulated  herein,  provided  that 

the  said  measures  comply  with  the objectives  of  this  Regulation  and  with 

Articles  92, 93  and  94 of  the  Treaty. 

V 

-16-

Art icle 8 

PROGRAMME  APPRAISAL 

1. Member  States  shall  communicate  to  the Commission,  by  ...  (within  6 

months  of  the entry  into  force),  the  draft  aid  programmes  and  any 

existing  or  proposed  national  provisions. 

2.  The  Commission  shall  examine  the  texts  communicated  by  the Member  States 

in order  to  determine: 

-  their  compliance  with  this Regulation,  taking  account  of  its 

objectives  and  the  links between  the  various measures; 

-  the nature  of  the measures  eligible  for  part-financing-, 

-  the  total  amount  of  expenditure  eligible  for  part-financing; 

-  the  rate of  Community  part-financing  for  the whole  of  the  programme, 

up  to 50%.  The  rate may  be  increased  to 75%  in Objective  1 regions. 

3. The  Commission  shall  decide on  the approval  of  the  programmes,  including 

the  rate of  Community  part-financing,  in accordance  with  the  procedure 

laid  down  in Article  29 of  Regulation  (EEC) No 4253/88. 

Art icle 9 

DETAILED  RULES OF  APPLICATION 

Detailed  rules  for  the application of  this Regulation  shall  be  adopted  by 

the Commission  in accordance  with  the  procedure  laid  down  in Article  29 of 

Regulation  (EEC) No 4253/88. 

<i3 

-17-

Artlcle  10 

FINAL  PROVISION 

Regulation  (EEC) No  1096/881  is repealed.  It shall  remain  applicable  to 

aid granted  before... 

Article 11 

ENTRY  INTO FORCE 

This  Regulation  shall  enter  into force on 

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

a I I Member  States. 

Done  at  ...  , 

For  the Council 

The  President 

1  OJ  No L  110, 29.4.1988, p. 1. 

kh 

VI/G/5 (DT/5805/tab10en) 

23.10.91.(AW/tz) 

SUMMARY  TABLE SHOWING FiNANCIAL PROFILE OF THE SUPPORTING MEASURES 
(MECU) 

1993 

1994 

1995 

1996 

1997 

Total 
(5 years) 

Early retirement  : EAGGF contribution 

34 

203 

456 

601 

706 

2000 

Environment 

EAGGF contribution  (average 60X) 
- fertiliser reductlon/estensIfIcatlon 
- protection of the environment 
- care of abandoned agricultural  land 
-  land set-aside 
- training 
- total 

Forestry 

TOTAL COST FOR EAGGF 

REDUCED EAGGF EXPENDITURE : land set-aside 

NET COST FOR EAGGF 

6 
17 
20 

55 

132 

-

132 

24 
72 
84 
18 
2 
200 

80 

483 

-180 

303 

49 
146 
170 
18 
2 
385 

109 

950 

-180 

770 

80 
236 
275 
18 
2 
611 

149 

1361 

-180 

1181 

122 
360 
420 
18 
2 
922 

202 

1830 

-180 

1650 

281 
831 
969 
72 
8 
2161 

595 

4756 

-720 

4036 

ISSN 0254-1475 

COM (91)415 final 

DOCUMENTS 

EN 

03 

Catalogue number : CB-CO-91-469-EN-C 

ISBN 92-77-76806-1 

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