Proposal for a COUNCIL REGULATION (EEC) on special measures for farmers affected by the 1991/92 drought in Portugal
Date: 1992-07-28
Institutions: European Commission
Subjects: cereals, drought, economic support, livestock, regions of Portugal

COMMISSION OF THE EUROPEAN  COMMUNITIES 

COM(92) 348 final 

Brussels, 28 July  1992 

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Proposal  for a 

COUNCIL REGULATION  (EEC) 

on special  measures  for  farmers affected by 

the 1991/92 drought  in Portugal 

(presented by the Commission) 

-  2 -

EXPLANATORY  MEMORANDUM 

Portugal  suffered  a severe drought  during  the period  autumn  1991  to spring  1992 

entailing  losses for producers of up  to two thirds of  their  winter  cereals 

harvests.  The drought  also severely  affected  fodder  production, thus causing 

problems  for  the Portuguese  livestock sector.  This situation  has had a serious 

effect  on  the  incomes of  the Portuguese  producers  concerned. 

In order  to remedy  the situation  the Portuguese Government  has  requested 

compensatory  aid schemes  to be  introduced. 

In the case of cereals,  it  is proposed  to authorize  the Portuguese  Republic  to 

grant  aid per  hectare  to compensate  for yield  losses up  to a maximum  which will 

vary according  to the cereal  concerned. 

In the case of  the  livestock  sector,  it  is proposed  to authorize  the Portuguese 

Republic  to grant  aid  to supplement  the existing Community  premiums  for  farmers 

with  suckler  cows, ewes and she-goats and aid  for small  milk  producers and 

producers holding horses. 

It  is proposed  that  the EAGGF make a financial  contribution  to the aids, 

excepting  the aid  for producers  holding  horses, which  is to be  financed  from  the 

national  budget. That  contribution  will  not  exceed  the amounts entered  for  the 

purpose  in the budget. The Commission  contemplates  proposing  a  limit of  ECU 

(agricultural) 35 million  for  the cereals sector  and  ECU  47 million  for  the 

Iivestock sector. 

This draft  package of measures has no  impact  on small  and  medium-sized 

enterpr ises. 

-  3 -

Proposal  for a 

COUNCIL  REGULATION  (EEC) 

on special  measures for  farmers affected by 

the 1991/92 drought  in Portugal 

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, 

Whereas  Portugal  suffered  a severe  drought  between  autumn  1991  and  spring 

1992  resulting  in  cereals  harvest  losses  which  may  be  almost  total  in 

certain  regions, and  in particularly  high  additional  costs  for  the  feeding 

of cattle, sheep, goats and/or  horses  in certain  regions; whereas,  in order 

to  mitigate  the  resulting  loss  of  income  to  the  producers  concerned, 

special  aid schemes  should  be provided  for; whereas  the detailed  rules for 

such schemes should be  laid down; 

Whereas  the  spring  drought  has  a  smaller  effect  on  late-harvest  cereals, 

such as maize and sorghum-, whereas  the aid should accordingly  be restricted 

to winter  cereals; whereas  durum  wheat  already  benefits  from  large amounts 

of  aid  per  hectare  independent  of output; whereas  the aid  should  therefore 

be restricted  to common wheat, barley, rye and triticale; 

Whereas,  in the  case of  cereals,  the  compensation  should  be  restricted  to 

producers  with  low  productivity;  whereas  compensation  payable  to  such 

producers  should  be determined  on  the basis of  their  production  losses and 

the production costs for  the various cereals; 

- 4 -

Whereas,  in the case of  stockfarmers, provision  should  be made  for  special 

aid  for  producers  holding  suckler  cows, ewes  and  she-goats, and  for  small 

milk  producers  in the  regions  affected;  whereas  the  aid  should  be  limited 

to  an  amount  sufficient  to  offset  expenditure  on  the  purchase  of  fodder 

supplements  during  the  period  when,  in normal  years,  there  is sufficient 

grass growth  to supply  the basic feed needs of  the animals concerned; 

Whereas,  as  regards  compensation  to  stockfarmers  for  additional  costs, a 

list of regions should be drawn up according  to the severity of  the drought 

therein,  on  the  basis  of  the  shortage  of  rainfall  compared  with  normal 

levels  and  the  effects  of  exceptionally  high  temperatures;  whereas  the 

maximum  aid authorized should be  limited  in accordance with  the severity of 

the drought  and on the basis of the animal  species concerned; 

Whereas,  in order  to allow speedy payment  of  the aid, the Community  suckler 

cow, ewe  and  she-goat  premiums  granted  to  individual  farmers  for  the  1991 

marketing  year  should  be  taken  as  the  reference  figure; whereas, however, 

provision  should  be  made  for  new  producers  who  did  not  submit  an 

application for  the 1991 marketing year; 

Whereas  the  economic  consequences  of  the  drought  could  slow  down  the 

integration  of  Portuguese  agriculture  into  the  common  organization  of  the 

markets;  whereas,  in order  to  support  Portuguese  efforts  to  overcome  the 

difficulties,  the  EAGGF  Guarantee  Section  should  make  a  financial 

contribution  not  exceeding  the  appropriations  entered  for  the  purpose  in 

the budget  to the aid  in question; 

Whereas  the Portuguese  authorities  should  be  authorized  to grant  aid  from 

the  national  budget  for  producers  holding  horses  in  the  regions  most 

severely affected by the drought, 

HAS ADOPTED THIS REGULATION: 

-  5 -

TITLE I 

Measures  to assist  cereals producers 

Article 1 

1. 

Portugal  is authorized  to  grant  special  aid  to  producers  of  common 

wheat, barley, rye and  triticale particularly  affected  by  the drought 

in Portugal  during  the period  covering  autumn  1991  to spring 1992. 

2. 

Cereals  producers  who  obtained  an  average  per  hectare  of  less  than 

1 000 kg  of  common  wheat,  850 kg  of  barley  and  triticale  and  650 kg 

of  rye  on  their  holdings  in  1992  shall  be  considered  to  be 

particularly  affected. 

Article 2 

Farmers who  have submitted  a crop  declaration under  the special  aid  scheme 

provided  for  in  Council  Regulation  (EEC)  No  3653/903  and,  in  duly 

substantiated  cases, other  farmers  who  can  prove  that  their  cereals  crops 

have been affected  shall  be eligible  for  the aid. 

Article 3 

1. 

The aid per  hectare shall  not  exceed: 

ECU 215/ha  for common wheat; 

ECU 165/ha  for barley  and  triticale; and 

ECU  120/ha  for rye. 

2. 

The  aid  must  be  granted  in  such  a  way  that  producers  particularly 

affected  who  have  obtained  an  output  per  cereal  of  less  than  the 

quantities  specified  in  Article  1(2)  shall  be  entitled  to  part 

thereof.  In  that  case  the  amounts  stated  in  paragraph  1  shall  be 

reduced  in  proportion  to  the  difference  between  the  actual  yield 

obtained  and  the figures specified  in Article 1(2). 

0J  No L 362, 27.12.1990, p. 28. 

- 6 -

Article 4 

Where  necessary,  the  detailed  rules  for  giving  efect  to  this  Title,  in 

particular  those  relating  to  controls,  shall  be  laid  down  in  accordance 

with  the procedure set out  in Article  26 of Regulation  (EEC) No 2727/7S4. 

Title 11 

Measures  to assist  stockfarmors 

Article 5 

Portugal  is  authorized  to  introduce  a  scheme  for  special  drought  aid  for 

producers  holding  suck 1er  cows, dairy  cows, ewes  and  she-goats  in  regions 

affected  by  the  severe  drought  in  Portugal  during  the  period  covering 

autumn  1991  to spring  1992 who undertake  to keep  the herd or  flock until at 

least  31 December  1992. 

For  the purposes of  this Regulation: 

the particularly  affected  regions shall  be as  listed  in Annex  I; 

the very severely  affected  regions shall  be as  listed  in Annex  li; 

the severely  affected  regions shall  be as  listed  in Annex  III. 

Article 6 

Where  Article  5  applies,  special  drought  aid  may  be  granted  to  producers 

holding  suckler  cows  who  received,  for  1991,  the  suckler  cow  premium 

introduced  by Council  Regulation  (EEC) No 1357/805. 

When  the number  of  suckler  cows held at  1 September  1992: 

is equal  to  the  number  for  which  the  premium  was  paid  for  1991, the 

aid may be granted  for no more  than  that  number  of  animals; 

is  less  than  the number  for  which  the premium  was paid  for  1991, the 

aid shall  be granted  for  that  lower  number; 

4 
5 

OJ  No L 281, 1.11.1975, p. 1. 
OJ No L 140, 5.6.1980, p. 1. 

- 7 -

is greater  than  the  number  for  which  the  premium  was  paid  for  1991, 

the  aid  shall  be  granted  for  that  higher  number,  provided  that  the 

animals  were  already  held  at  1 January  1992  and  subject  to 

appropriate  checks by  the competent  authorities. 

Aid  may  also  be  paid  to  producers  holding  suckler  cows  as  referred  to  in 

Article  5  who  did  not  receive  the  suckler  cow  premium  for  the  1991 

marketing  year  but  who  can  prove  to  the  satisfaction  of  the  competent 

authority  that  they  actually  held  suckler  cows  eligible  under  Regulation 

(EEC)  No  1357/80  at  least  for  the  period  1 January  to  1 September  1992. 

The aid may be paid  for no more than  that  number  of suckler cows. 

Article 7 

Where  Article  5  applies,  special  drought  aid  may  be  granted  to  producers 

delivering  or  directly  selling  milk  or  milk  products  whose  individual 

reference  quantities  as  referred  to  in  Article  5(c)  of  Regulation  (EEC) 

No 804/686  are  not  more  than  60 000 kg.  The  aid  shall  be  granted  only  to 

producers  within  the  particularly  affected  regions  or  very  severely 

affected  regions referred  to  in Article 5 who can prove  to the satisfaction 

of  the competent  authority  that  they  actually  held  dairy  cows at  least  for 

the period  1 January  to 1 September  1992.  The  aid  shall  be granted  for  no 

more  than  that  number  of  dairy  cows.  The  total  number  of  dairy  cows 

eligible  for  the aid shall  not  in any case exceed 17. 

Article 8 

Where  Article  5  applies,  special  drought  aid  may  be  granted  to  producers 

holding  ewes and/or  she-goats who have  received  the premium  referred  to in 

Article  5  of  Council  Regulation  (EEC) No  3013/897  for  the  1992  marketing 

year.  The aid may  be granted  for  no more  than  the number  of  eligible  ewes 

and/or  she-goats  subject  to  an  appropriate  check  by  the  competent 

author it les. 

6 
7 

OJ  No L 148, 28.6.1968, p. 13. 
0J No L 289, 7.10.1989, p. 1. 

- 8 -

Article 9 

1. 

The special drought aid shall not exceed: 

(a)  in  particularly  affected  regions,  ECU 145  per  suck 1er  cow, 

ECU 14.5 per ewe and ECU 14.5 per she-goat; 

(b)  in  very  severely  affected  regions,  ECU 110  per  suck 1er  cow, 

ECU 11 per ewe and ECU 11 per she-goat; 

(c)  in severely affected regions, the amounts at (b) less 32%; 

(d)  in particularly  or  very  severely  affected  regions, ECU 75 per 

dairy cow. 

2. 

If the animals were not present for the whole of the period 1 January 

to 1 May 1992  in the regions  referred  to  in Article 5, the maximum 

amounts set out  in paragraph 1 shall be reduced  in proportion to the 

time during which they were present. 

Article 10 

Where necessary, the Commission may  lay down detailed rules to give effect 

to  this Title  in accordance with  the procedure  set out  in Article  27 of 
Council  Regulation  (EEC)  No  805/688  in  the  case  of  suckler  cows, 
Article 30 of Council Regulation (EEC) No 804/68 in the case of dairy cows 

and Article 30 of Council Regulation  (EEC) No 3013/89  in the case of ewes 

and/or she-goats. 

^ 

^~ 

TITLE III 

Other provisions 

Article 11 

In addition  to the special  drought  aid, Portugal  is authorized  to grant, 

from the national budget, aid not exceeding ECU 110 per breeding horse more 

than 12 years old  in particularly and  very  severely affected regions. 

8 

0J No L 148, 24.8.1968, p. 4. 

- 9 -

A r t i c le 12 

1. 

The  Community  shall  make  a  financial  contribution  not  exceeding  the 

appropriations  entered  for  the  purpose  in  the  budget  to  the  aid 

provided  for  in Titles  I and  II of  this Regulation. The aid shall  be 

deemed  intervention  within  the  meaning  of  Article  1(2)  of  Council 

Regulation  (EEC) No 729/709. 

2. 

The  aid  referred  to  in  paragraph  1  shall  be  converted  using  the 

agricultural  conversion  rate applicable on 1 July 1992. 

Article 13 

Portugal  shall  take  the measures necessary  to ensure  that  the aid  provided 

for  in this Regulation  is paid  to those eligible only.  The measures shall 

include  appropriate  penalties  in  the  case  of  aid  applications  containing 

false  information deliberately or as a result of gross negligence. 

Portugal  shall  inform  the  Commission  of  measures  taken  to  give  effect  to 

this Article. 

Article 14 

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

application  in the Official  Journal  of  the European  Communities. 

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

a 11 Member  States. 

Done at Brussels, 

For  the Council 

The President 

OJ No L 94, 28.4.1970, p. 13. 

- 10 -

ANNEX I 

Regions particularly  affected by the drought 

Alentejo Region 
- Agricultural  zone*** 61 
- Concelho*. Mourâo 

ANNEX  11 

Regions very severely  affected  by the drought 

Beira  Interior  Region 
- Agricultural  zones  33, 34, 35, 36 (except  for Fornos de Algodres), 37, 38 and 

39 

RibateJo and Oeste Region 
- Concelho: Gaviâo 

Alentejo Region 
- Agricultural  zones  53, 54, 55, 56, 57, 58 (except  for Mourâo), 59 and 60 

Algarve Region 
- Agricultural  zones  64, 65  (except  for Faro and Olhao) and 66 
- ConceI ho : S11ves 

ANNEX  I I I 

Regions severely  affected by  the drought 

Tràs-os-Montes Region 
- Agricultural  zones  12, 13, 20 (except  for s. Joao de Pesqueira) and 21  (except 

- Concelho: Macedo de Cavaleiros 

for Carrazeda  de Ansiâes) 

Beira  Interior Region 
- Agricultural  zone 40 
- Concelho: Fornos de Algodres 

Beira Litoral  Region 
- Agricultural  zones 27, 28, 29, 30 and 31 

Ribatejo and Oeste Region 
- Agricultural  zones  47, 48, 49 and 50 (except  for Gaviâo) 
- Concelhos: Santarem, Cartaxo and Monti Jo 

Alentejo  region 
- Agricultural  zones 51 and 52 

Algarve Region 
- Agricultural  zones  62, 63 (except  for Si Ives) and 65  (except  for Castro Marin) 

(*) Under D.L. 46/89 of  15 February  1989. 

11 

i. BUDGET HEADING: 102 
2129 
2229 

APPROPRIATIONS: ECU 1 093 mi iI ion 
p.m. 
p.m. 

2. TITLE: Special treasures for Portuguese farmers affected by the 1991/92 drougit 

3. LEGAL BASIS: 

EEC Treaty, and in particular Articles 42 and 43 thereof 

4. AIMS OF PROJECT: 

Ccmpensation for  loss of income suffered by Portuguese farmers as a result of the 1991/92 drought 

Period of 12 months 
(ECUm) 

Current Financial Year 

Following Financial Year 

1992 (ECU m) 

1993 (ECU m) 

93 

49 

49 

5.  FINANCIAL  IMPLICATIONS 

5.0 EXPENDITURE 

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

5.1 REVENUE 

- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 

- NATIONAL 

1994 

1995 

1996 

1997 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED REVENUE 

5.2 METHOD OF CALCULATION: 

ECU (35 + 47) m(A) x 1 192 (DR) - ECU 96 m 

1992 (509É) - ECU 49 m 
1993 (50%) - ECU 49 m 

6.0 CAN THc. PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED  IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 
NO 

(1) 

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

6.2  IS A SUPPLEMENTARY BUDGET NECESSARY? 

6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 

YES 

ND 

ND 

OBSERVAT IONS: 

I As a result of the drought in Portugal, only around 50% of the appropriations for special aid for Portuguese 
• producers wi iI be required - ECU 42 mi i Mon according to the latest estimate of expenditure for such aid 

during the 1992/93 marketing year. 
(1) Financing possible under Chapters 10 and 21. 

-  Oz  -

ISSN 0254-1475 

COM (92) 348  final 

DOCUMENTS 

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Catalogue number : CB-CO-92-365-EN-C 

ISBN 92-77-46998-6 

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