Proposal for a COUNCIL REGULATION (EC) on special measures for farmers affected by the 1992/1993 drought in Portugal
Date: 1994-02-15
Institutions: European Commission
Subjects: State aid, aid to agriculture, cereals, drought, livestock, regions of Portugal

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COMMISSION  OF THE EUROPEAN  COMMUNITIES 

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C0M(94) 31  final 
Brussels,  15.02.1994 

94/0035  (CNS) 

Proposal  for a 

COUNCIL  REGULATION  (EC) 

on special measures for farmers 

affected by the  1992/93 drought  in Portugal 

(presented  by  the Commission) 

EXPLANATORY  MEMORANDUM 

From autumn  1991 to spring  1992 Portugal suffered  from a serious drought, 
which continued until spring  1993 in some regions and resulted in 
considerable  losses for certain cereals producers. The drought also 
seriously affected fodder production, thereby causing difficulties  for 
Portuguese stockfarmers. This situation has had disastrous consequences  for 
the income of the farmers concerned. 

To remedy the situation, the Community  set up compensatory  aid schemes under 
Regulation  (EEC) No 3311/92. When the Council adopted the  1993/94 price 
proposals, it asked the Commission to present proposals to mitigate the 
effects of the continuing drought in Portugal, using the funds provided for 
the financing of Regulation  (EEC) No 3311/92 which had not yet been 
utilized. 

The proposed measures are similar to those provided  for in Regulation  (EEC) 
No 3311/92. In the case of cereals, it is proposed that the Portuguese 
Republic be authorized to grant aid per hectare to offset the loss in 
yields, subject to a ceiling. 

In the case of stockfarming, it is proposed that the Portuguese Republic be 
authorized to grant a supplement to the existing Community premiums for 
farmers holding  suckler cows, ewes and/or she-goats, as well as aid for 
small milk producers and farmers keeping horses. 

It is proposed that the EAGGF should contribe to the different  aids, except 
the aid for horses, which will be financed entirely  from the national 
budget. The EAGGF contribution may not exceed the amount entered  in the 1993 
budget for that purpose and carried forward to 1994. 

The proposed measures have no impact on small and medium-sized enterprises. 

Proposal for a 

COUNCIL REGULATION  (EC) No 

Of 

on special measures for farmers 

affected by the  1992/93 drought in Portugal 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European community, and in 

particular Articles  42 and 43 thereof, 

Having regard to the proposal from the Commission,1 

Having regard to the opinion of the European Parliament,^ 

whereas Portugal suffered a severe drought between autumn  1991 and spring 

1992 resulting, on the one hand, in almost total loss of the cereals harvest 

in certain regions and, on the other, in particularly  high additional costs 

for the feeding of cattle, sheep, goats and horses in certain regions; 

whereas special aid schemes were introduced to mitigate the resulting  loss 

of income to the producers concerned; 

Whereas the drought continued until spring  1993 in certain regions, with 

similar economic consequences  for cereals producers and stockfarmers; 

whereas provision should therefore be made for special aid measures  similar 

to those taken under Council Regulation  (EEC) No 3311/92 of 9 November  1992 

on special measures  for farmers affected by the  1991/92 drought in 

Portugal3; 

1  OJ No C 251, 28.9.1992, p. 57. 
2  Opinion delivered on 30 October  1992  (not yet published  in the Official 

Journal). 

3  OJ No L 332, 18.11.1992, p. 1. 

- 2-

Whereas the economic consequences of the drought could  slow down the 

integration of Portuguese agriculture into the common market organizations; 

whereas, in order to support Portuguese efforts to overcome the 

difficulties, the European Agricultural Guidance and Guarantee Fund, 

Guarantee section, should make a financial contribution to the aid in 

question not exceeding the appropriations entered  in the general budget of 

the European Communities for financing the measures provided  for in 

Regulation  (EEC) No 3311/92 and carried over from  1993 to 1994 for the 

purpose; 

Whereas, in addition, the Portuguese Republic  should continue to be 

authorized to grant aid from the national budget for producers keeping 

horses  in the regions most severely affected by the drought, 

HAS ADOPTED THIS REGULATION: 

TITLE I 

Measures to assist cereals producers 

Article 1 

1. The Portuguese Republic  is hereby authorized to grant special aid to 

producers of common wheat, barley, rye and triticale who are particularly 

affected by the severe drought which prevailed  in Portugal during the 

period from autumn 1992 to spring  1993 in the areas listed in Annex I. 

2. Cereals producers who obtained an average yield 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 1993 shall be considered  to be particularly 

affected. 

- 3 -

Article 2 

Farmers «ho submitted a crop declaration under the special aid scheme 

provided for in Council Regulation (EEC) No 3653/90 of 11 December 1990 

introducing transitional measures governing the common organization of the 

market in cereals and rice in Portugal^ 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 amount to: 

ECU 215 per hectare for producers who were unable to produce any 

cereals on the areas indicated in the crop declaration referred to 

in Article 2; 

ECU 170 per hectare for other producers. 

2. The amounts stated in paragraph 1 shall be reduced by the compensatory 

payments granted pursuant to Council Regulation (EEC) No 1765/92 of 

30 June 1992 establishing a support scheme for producers of certain 

arable crops^. 

Article 4 

Where necessary, detailed rules for the application of this Title, in 

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

the procédure set out in Article 23 of Council Regulation (EEC) No 1766/92 
of 30 June 1952 on the conraon organization of the market in cereals6. 

4  OJ No L 362, 27.12.1*90, p. 28. 
5  OJ No L 181, 1.7.1992, p. 12. 
6  OJ No L 181, 1.7.1992, p. 21. 

-  4 -

TITLE II 

Measures to assist stockfarmers 

Article 5 

The Portuguese Republic  is hereby authorized to grant special aid to 

producers keeping suckler cows, dairy cows, ewes and she-goats in regions 

affected by the severe drought which prevailed in Portugal during the period 

from autumn  1992 to spring  1993 who undertake to keep the herd or flock 

until at least 31 December 1993. 

For the purposes of this Regulation: 

- the particularly  affected regions shall be as listed in Annex II hereto 

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

Article 6 

Where Article  5 applies, aid may be granted to producers holding  suckler 

cows who received, for 1992, the suckler cow premium introduced by Council 

Regulation  (EEC) No  1357/80 of 5 June  1980 introducing  a system of premiums 

for maintaining  suckler cows7, as last amended by Regulation  (EEC) 

No 3577/908. Where the number of suckler cows held at 1 September 1993: 

is equal to the number for which the premium was granted  for 1992, the 

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

is less than the number of animals for which the premium was granted for 

1992, the aid shall be granted for that lower number, 

is greater than the number of animals for which the premium was granted 

for 1992, the aid shall be granted for that higher number, provided that 

the animals were already held at 1 January  1993, subject to appropriate 

checks by the competent authorities. 

7  OJ No L  140, 5.6.1980, p. 1. 
8  OJ No L 353, 17.12.1990, p. 23. 

-  5 -

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

Article  5 who did not receive the suckler cow premium  for the  1992 marketing 

year but who can prove to the satisfaction of the competent  authorities that 

they actually held suckler cows likely to have been eligible under Council 

Regulation  (EEC) No 805/68 of 27 June  1968 on the common  organization of the 

market  in beef and veal(9) at least for the period  1 January to 1 September 

1993. The aid may be granted for no more than that number  of suckler cows. 

Article 7 

Where Article 5 applies, aid may be granted to producers delivering or 

directly  selling milk or milk products whose  individual reference  quantities 

as referred to in Article  5c of Council Regulation  (EEC) No 804/68 of 

27 June  1968 on the common organization of the market  in milk and milk 

products*10),  as last amended by Regulation  (EEC) No 2071/92<11),  are not 

more than  120 000 kg. The aid shall be granted only to producers within the 

particularly  affected regions referred to in the second paragraph of 

Article 5 who can prove to the satisfaction of the competent  authorities 

that they actually held dairy cows at least for the period  1 January to 

1 September  1993. The aid may be granted  for no more than that number of 

dairy cows. The number of dairy cows eligible for calculation  of the aid 

shall not in any case exceed  17 per producer and the total aid per dairy cow 

may not exceed that granted  in accordance with Regulation  (EEC) No 3311/92. 

Article 8 

Where Article 5 applies, aid may be granted to producers holding ewes or 

she-goats who received the premium referred to in Article  5 of Council 

Regulation  (EEC) No 3013/89 of 25 September  1989 on the common  organization 

(9) 
(10) 
(11) 

OJ No L  148, 28.6.1968, p.24. 
OJ No L  148, 28.6.1968, p. 13. 
OJ No L 215, 30.7.1992, p. 64. 

- 6 -

of the market in sheepmeat and goatmeat(*2)#  as  last amended by Regulation 

(EEC) No 2069/92<13), for the  1993 marketing year. The aid may be granted 

for no more than the number of eligible ewes or she-goats, subject to an 

appropriate check by the competent authorities. 

Article 9 

1. The aid shall not exceed: 

(a)  in particularly  affected regions, ECU  145 per suckler cow, ECU 14.5 

per ewe and she-goat and ECU 75 per dairy cow; 

(b)  in severely  affected regions, ECU 60 per suckler cow and ECU 6 per 

ewe and she-goat. 

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

1 May  1993 in the regions referred to in Article  5, the maximum  amounts 

set out in paragraph  1 of this Article shall be reduced in proportion to 

the time during which they were present. 

Article  10 

Where necessary, the Commission may  lay down detailed rules for the 

application of this Title in accordance with the procedure  laid down in 

Article 27 of Council Regulation  (EEC) No 805/68 in the case of suckler 

cows, Article 30 of Regulation  (EEC) No 804/68 in the case of dairy cows and 

Article  30 of Regulation  (EEC) No 3013/89 in the case of ewes or she-goats. 

(12) 
(13) 

OJ No L 289, 7.10.1989, p. 1. 
OJ No L 215, 30.7.1992, p. 59. 

- 7 -

TITLE III 

Other provisions 

Article 11 

1. The Portuguese Republic  is authorized to grant, from the national budget, 

in addition to the special  "drought" aid, aid not exceeding  ECU  110 per 

breeding mare more than  12 months old in particularly  affected regions. 

Article 12 

1. The aid referred to in this Regulation shall be converted using the 

agricultural conversion rate applicable on  1 July 1993. 

2. The Community  shall make a financial contribution  to the aid referred to 

in Titles I and II not exceeding the appropriations  approved by the 

budgetary  authority  for the financing of the measures provided  for in 

Regulation  (EEC) No 3311/92 and carried over  from  1993 to  1994 for that 

purpose. The aid shall be deemed  intervention within the meaning of 

Article 1(2) of Council Regulation  (EEC) No 729/70 of 21 April  1970 on 

the financing of the common  agricultural policy14,  as last amended by 

Regulation  (EEC) No 2048/8815. 

Article 13 

The Portuguese Republic  shall take the measures necessary to ensure that the 

aid provided  for in this Regulation  is granted to those eligible only. The 

measures shall include appropriate penalties  in the case of aid  applications 

containing  false information either deliberately  or as a result of gross 

negligence. 

The Portuguese Republic  shall inform the Commission  of measures taken to 

give effect to this Article. 

14 OJ No L 94, 28.4.1970, p. 13. 
15 OJ No L  185, 15.7.1988, p. 1. 

- 8 -

Article 14 

This Regulation shall enter into force on the third 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 

The President 

ANNEX I 

Regions referred to in Article I 

CORCELHOS 

FREGUESIAS 

- Mouras 

- Serpa 

- Alandroal 

- Mourao 

- Arronehes 

- Campo maior 

- Elvas 

- Vidigueira 

- Pedrogào 

- Reguengos 

- S. Pedro do Corval 

- Monsaraz 

- S. Marcos do Campo 

-  Campinho 

ANNEX II 

Regions particularly affected by the drought, 

as referred to in the first indent of the second paragraph 

of Article 5 

Alentejo region 

- Agricultural area (*): 61 

- Concelho de Mourâo 

(*) Pursuant to DL (Decreto-lei) 46/89 of 15 February 1989. 

ANNEX  III 

Regions very severely affected by the drought 

Tràs os Montes region 

-  Agricultural  areas  : 12, 13, 20  (except S. Joào de Pesqueira), 

and  21  (except Carrazeda de Ansiàes) 

Concelho de Macedo de Cavaleiros 

Beira Interior region 

Beira Literal region 

-  Agricultural  areas  : 27, 28, 29, 30 et 31 

Ribatejo et Deste region 

-  Agricultural areas  : 47, 48, 49, 50 

Concelhos de: Santarém, Cartaxo, et Montijo 

Alentejo region  (except agricultural area 61 and Mourào) 

Algarve region 

Iz 

Financial  Statement 

Date :1 

1. BUDGET  HEADING  : B1-1029, B1-259 

APPROPRIATIONS 

2. TITLE : 

Draft  Council  Regulation on special  measures for farmers affected by the 1992/93 drought  in Portugal 

3. LEGAL  BASIS : Articles 42 and 43 of the Treaty 

4. AIMS 

To authorize  Portugal to grant  special aid to cereals producers and stockfarmers particularly or 
seriously  affected by the 1992/93 drought. 

5. FINANCIAL  IMPLICATIONS 

5.0  EXPENDITURE 

PERIOD OF 12 MONTHS 
(ECU mi 11 ion) 

CURRENT  FINANCIAL  YEAR 

1994 (ECU million) 

FOLLOWING  FINANCIAL  YEAR 
1995  (ECU million) 

- CHARGED TO THE EC BUDGET 
(REFUNDS/INTERVENT IONS) 

• 28 

+ 28 

- NATIONAL  AUTHORITIES 

- OTHER 

5.1  REVENUE 

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

- NATIONAL 

5.0.1  ESTIMATED  EXPENDITURE 
5.1.1  ESTIMATED  REVENUE 

5.2 METHOD OF CALCULATION 

.1996. 

,1997. 

1998. 

1999. 

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

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

6.2  WILL A SUPPLEMENTARY  BUDGET BE NECESSARY ? 

6.3  WILL  FUTURE  BUDGET  APPROPRIATIONS BE NECESSARY ? 

XXXXXX 

XXXXXX 

XXXXNO 

XXXXNO 

COMMENTS : 
Supplementary and amending  budget No 1/1993 provided for an appropration of ECU 97 million to finance 
the measures  referred to in Regulation  (EEC) No 3311/92.  Since the appropriations utilized for that 
purpose in 1993 amounted to only ECU 69 million, the  cost to the  EAGGF of this measure can be financed 
from the remaining  appropriations, to be carried  forward to 1994. 

•J* 

ISSN 0254-1475 

COM(94) 31 final 

DOCUMENTS 

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03 

Catalogue number : CB-CO-94-037-EN-C 

ISBN 92-77-64894-5 

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