Proposal for a COUNCIL REGULATION (EEC) fixing the non- rotational set-aside rate referred to in Article 7 of Regulation (EEC) No 1765/92
Date: 1993-05-18
Institutions: European Commission
Subjects: aid per hectare, crop yield, fertiliser, impact study, pollution control measures, set-aside

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COMMISSION  OF THE EUROPEAN  COMMUNITIES 

COM(93) 221  final 

Brussels,  18 May  1993 

Proposal  for a 

COUNCIL  REGULATION  (EEC) 

fixing  the non-rotational  set-aside  rate referred 
to  in Article 7 of Regulation  (EEC) No  1765/92 

(presented  by  the Commission) 

JiSi^i'WKji.t'." 

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EXPLANATORY  MEMORANDUM 

1.  One of  the main objectives of  the reform of  the common  agricultural  policy 

which was adopted  in June 1992  is to  improve control  over  production.  In the 
arable crop sector, one of  the most  appropriate ways of achieving  this 
objective  is to set  land aside.  All  producers, with  the exception of  those 
qualifying under  the small  producer  scheme, must  participate  in, set  aside in 
order  to qualify  for compensatory  payments per  hectare, granted  to compensate 
for  the  loss of  income due to fixing prices at a more competitive  level, the 
other main principle of  the  reform. 

For  set-aside  to be effective  it must  not  be concentrated  on  the  least 
productive  land on each  holding.  To avoid  this risk, the  Commission 
originally proposed  that  the  land set  aside should  be rotated.  The detailed 
rules for applying  set-aside provide  therefore  for  an  interval  of  five years 
before  the same parcel  of  land can  return  to fallow which,  in the case of a 
set-aside  rate of  15% on a holding  specializing only  in eligible arable 
crops, results  in 90% of  the surface area of  the holding  in question being 
set  aside at some time or other  during  the course of  the rotation  period. 

2.  When  the proposals  for  the reform were adopted,  the Council  recognized  the 

principle of set  aside based on  rotation.  It was also agreed  that 
non-rotational  set  aside could  be offered  to producers  in return  for  a higher 
set-aside  rate so as to compensate  for  the risk  that  non-rotational  set-aside 
would  be carried out  on  less productive  land.  Before  fixing  the 
non-rotational  set-aside  rate, which  is the Community's  prerogative alone, 
the Council  asked  for a study  to be carried  out on  the effects of 
non-rotational  set-aside on production  control.  This study was  implemented 
by  the Commission  and entrusted  to the competent  institutes  in each  Member 
State. 

3.  Institutes  in each Member  State, with  the exception of Luxembourg  (covered by 

the Belgian  study) helped  to prepare  the study.  The Dutch  institute, which 
was given  the task of coordinating  the research, submitted  a final  report 
which  included  the following main conclusions: 

-  The  results of  the national  studies are hardly  comparable  because  the 

position  as regards availability  of data  and studies previously  carried 
out on  this  issue varies considerably  from one Member  State  to the next; 

-  To obtain  the same  reduction  in production obtainable with  a 15% 

rotational  set-aside  rate, the rate  for non-rotational  set  aside should be 
set on average at about 18%; 

-  2 -

-  As producers with marginal  land would  be the main  participants  in 

non-rotational  set  aside  (while continuing  to produce on good  land), 
a set-aside  rate greater  than  18% would  be  justified. 

Given  the above  factors, the Dutch  institute proposed  an extra  5 percentage 
points  for non-rotational  set-aside  as compared  to rotational  set-aside.  In 
coming  to these conclusions, the Dutch  institute  took  into account  the 
opinion of certain  national  institutes according  to which  rotational 
set-aside could  have  the effect  of  increasing  productivity; the  institute 
estimated  however  that  this risk  is more  than compensated  for  by  the two 
other  factors already mentioned,  i.e. the possibility offered  to producers to 
concentrate  set-aside on  the  least  productive  land and  the probability  that 
non-rotational  set-aside will  be mainly  chosen by  those producers whose 
holdings show  the greatest  variation  as regards  land quality. 

The Commission  therefore proposes  to fix  the difference  between 
non-rotational  and  rotational  set-aside at 5 additional  points  (therefore 
20%  instead of  15%, 15% instead of  10%, 25%  instead of  20%, etc.). 

-  3-

COUNCIL REGULATION  (EEC) No 

Of 

fixing the non-rotational  set-aside rate referred 
to in Article  7 of Regulation  (EEC) No  1765/92 

THE COUNCIL OF THE EUROPEAN COMMUNITIES, 

«^"-7'£* 

Having regard to the Treaty establishing  the European Economic Community, 

Having regard to Council Regulation  (EEC) No  1765/92 of 30 June  1992, 

establishing  a support system for producers of certain arable crops{*), as 

amended by Regulation  (EEC) No 364/93(2), ancj ^n particular Article  7(1) 

thereof, 

Whereas the second subparagraph of Article  7(1) of Regulation  (EEC) No  1765/92 

states that non-rotational  set-aside can be permitted  in return for a higher 

set-aside percentage rate than that required  for rotational  set-aside; whereas 

this percentage must ensure a reduction  in production comparable to that 

resulting  from rotational set-aside; whereas a scientific  study of the 

comparative effectiveness, as regards production control, of the two types of 

set-aside, shows that a difference of five percentage points over the rate for 

rotational set-aside  should enable the Community's objective to be obtained, 

HAS ADOPTED THIS REGULATION: 

Article 1 

The percentage of non-rotational  set-aside referred to in the second  subparagraph 

of Article  7(1) of Regulation  (EEC) No 1765/92 shall be fixed at the level of the 

percentage of rotational set-aside referred to in the same Article, plus 

5 percentage points. 

(1) OJ No L  181, 1.7.1992, p. 12 
(2) OJ No L 42, 19.2.1993, p. 3. 

- U .-

Article 2 

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

publication  in the Official Journal of the European Communities. 

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

Member States. 

Done at 

For the Council 

F ï NANCIAL  S TATEMENT 

-""b-

1.  BUDGET HEADING:  10 

DATE: 

10  May  1993 

APPROPRIATIONS:  ECU  7104 

2.  TITLE:  Draft  Council  Regulation  s e t t i ng  the  percentage  rate  of  non-rotational  set-aside  referred  to 

in 

a r t i c le  7  of  Regulation  (EEC)  N*  1765/92 

3.  LEG*.  BASIS:  Regulation  (EEC)  N'  1765/92 

4.  AIMS OF PROJECT: 

To  set  the  percentage  rate  of  non-rotational  set-aside 

5.  FINftCMi.  REPLICATIONS 

(ECUm) 

Period of 12 months 

Current Financial Year 
1993 

Following Financial Year 
1994 

5.0  EXPENDITURE 

-  CHARGED TO THE EC BUDGET 
-  (XXXXXXX/INTERVENTION) 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 

5.2 METHOD OF CALCULATION: 

p.m. 

1995 

p.m. 

1996 

p.m. 

1997 

1996 

p.m. 

p.m. 

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

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

6.2  IS A SUPPLEMENTARY BUDGET NECESSARY? 

6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 

YESXXX 

XXXXND 

YESXXX 

OBSERVATIONS: 
A higher percentage rate for non-rotating set-aside compared with rotating set-aside, aims to  achieve an 
equivalent reduction of production.  Given that  in the medium term, differences between actual and desirable 
levels of production wi 11 be control led by changes to the basic rate of set-aside (without budgetary 
consequences), the setting of a non-rotational  rate does not of itself have any budgetary consequences. 

It is possible that during the second year, when the rate of payment for set-aside  land  is sti11 higher than 
that for cropped  land, there could be extra expenditure.  This  is not possible to calculate, though. 

"  fo  ' 

ISSN 0254-1475 

COM(93) 221 final 

DOCUMENTS 

EN 

03 

Catalogue number : CB-CO-93-248-EN-C 

ISBN 92-77-55881-4 

Office for Official Publications of the European Communities 
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