Proposal for a COUNCIL REGULATION (EC) amending for the eighth time Regulation (EEC) No 1765/92 establishing a support system for producers of certain arable crops
Date: 1995-01-17
Institutions: European Commission
Subjects: biomass, exchange of information, financial loss, forestry policy, production aid, set-aside

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

COM(94) 636 final 
Brussels, 17.01.1995 

95/0017  (CNS) 

Proposal for a 

COUNCIL REGULATION  (EC) 

amending for the eighth time Regulation  (EEC) No  1765/92 

establishing a support system for producers of 

certain arable crops 

(presented by the Commission) 

z 

EXPLANATORY MEMORANDUM 

1. In December  1993 the Council asked the Commission to examine the 

relationship between compliance with the set-aside requirement and the 
areas withdrawn from production for afforestation and/or environmental 
purposes. 

The Commission's report, sent to the Council in December 1994, concludes 
that in order to encourage long term withdrawal of arable land and its 
use for environmental purposes, including afforestation, it should be 
made possible for environmental set-aside and afforestation, if carried 
out in line with the rules governing the measures accompanying the CAP 
reform set out in Regulations  (EEC) Nos 2078/92 and 2080/92, to be 
counted as set-aside for the purposes of the set-aside requirement 
introduced by Regulation  (EEC) No 1765/92 covering the arable crop 
reform. 

The Commission insists however on two conditions: 

only areas of land eligible for compensatory payments can be 
counted; 
only aid under the accompanying measures in question will be granted 
and it will be restricted to an amount equal to the compensation 
provided for set-aside under Regulation  (EEC) No 1765/92. 

2. Likewise for environmental purposes it is proposed that Member states 

should be able to grant aid to producers who use land withdrawn for the 
purposes of Regulation  (EEC) No 1765/92 to grow short rotation forest 
trees and shrubs for biomass production. Since Regulation  (EEC) No 
1765/92 does not permit complementary national aid it will have to be 
amended accordingly. 

3 

Proposal for cv. 

Council Regulation  (EC) No 

/95 

of 

amending for the eighth time Regulation  (EEC) No 1765/92 

establishing a support system for producers of 

certain arable crops 

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^), 

Having regard to the opinion of the European Parliament(2), 

Having regard to the opinion of the Economic and Social Committee(3), 

Whereas  withdrawal  of  arable  land  from  cultivation,  the  main  instrument  for 

balancing  the  agricultural  markets  introduced  by  the  common  agricultural 

policy  reforms, may  be  effected  (a) by  set-aside  in  return  for  compensation 

under  Council  Regulation  (EEC) No 1765/92(4),  as  last  amended  by  Regulation 

(EC)  No 

/94(5)  (b)  by  set-aside  for  environmental  reasons  under  council 

Regulation  (EEC) No 2078/92 on agricultural production methods compatible with 

the  requirements  of  protection  of  the  environment  and  maintenance  of  the 

countryside(6)  or  (c)  by  afforestation  under  Council  Regulation  (EEC) 

No 2080/92  instituting  a  Community  aid  scheme  for  forestry  measures  in 

agriculture t7 ); 

(1)  OJ No C 

(2)  OJ NO C 

(3)  OJ NQ C 

(4)  OJ No L  181, 1.7.1992, p.17. 

(5)  OJ NO L 

(6)  OJ NO L 215, 30.7.1992, p.85. 

(7)  OJ NO L 215, 30.7.1992, p.96. 

7  ••-
Whereas afforestation or set-aside for environmental reasons of withdrawn land 

::'-W  :; 

:  •  '- '• 

:'••• 

'. 

' 

is the most suitable option for arable crop growers for linking CAP reform and 

the measures accompanying it more effectively; 

Whereas  growers  who  make  use  of  the  accompanying  measures  have  already 

contributed  to  reduction  of  surpluses  through  their  use  of  the  aid  schemes 

provided  for  by  Regulations  (EEC) Nos 2078/92  and  2080/92; whereas  this  use 

can  be  encouraged  by  making  it  possible,  on  certain  terms  as  regards 

compensation,  to  count  the  land  so  used  for  the  purposes  of  the  set-aside 

arrangements introduced by Regulation  (EEC) No 1765/92; 

Whereas  land  set  aside  under  Regulation  (EEC)  No 1765/92  may  be  used  for 

production  other  than  for  human  or  animal  consumption,  including  short 

rotation  forest trees and shrubs; whereas in certain regions growing of these 

offers  a positive  environmental  benefit; whereas  national  authorities  should 

be enabled to promote this use of set-aside land by granting aid covering part 

of the cost of the necessary investment, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Regulation  (EEC) No 1765/92 is hereby amended as follows: 

1. The following subparagraph is added to Article  7(2): 

"Without  prejudice  to  Article 9,  areas  set  aside  under  Regulation  (EEC) 

No 2078/92  and  areas  afforested  under  Regulation  (EEC) No 2080/92  may  be 

counted  for  the  purposes  of  the  set-aside  requirement  indicated  in 

paragraph  1. However 

-  the  compensation  specified  in  paragraph 5  shall  not  be  granted  on  these 

areas . 

vT 

-  the compensation for income losses for land set aside in the framework  of 

Regulation  (EEC) No 2078/92 or the compensation for income losses indicated 

at  (c) in Article 3 of Regulation  (EEC) No 2080/92 shall be limited for the 

areas in question to an amount equal at most to the compensation  specified 

for that land in paragraph 5 of this Article." 

2. The following subparagraph is added to Article  7(4): 

"Member states are authorized  to grant national  aid to producers  to cover 

costs  incurred  in  planting  multiannual  crops  for  biomass  production. The 

aid may not however be more than the equivalent of the interest to be paid 

on a loan taken out for an amount not exceeding  five years of compensatory 

payment for the land in question." 

Article 2 

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

publication  in the Official Journal of the European Communities. Article 1(2) 

shall however apply to the 1994/95 marketing year. 

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

all Member states. 

Done at Brussels, 

For the Council 

The President 

6 

inancial  Statement 

Date 

1. BUDGET  HEADING :  B-1 - 1060, B-1 - 5011, B-1 - 5012 

APPROPRIATIONS:  ECU  1801  m, ECU  770 m, 

ECU  263 m 

2.  TITLE 

Council  Regulation  amending  for  the eighth  time Regulation  (EEC) No  1765/92 
establishing a support  system  for producers  of  certain  arable  crops 

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

4. AIMS 

Use  the set-aside  provisions  to promote  environment-friendly action  and  forestry 

5. FINANCIAL  IMPLICATIONS 

PERIOD  OF  12 MONTHS 

5.0  EXPENDITURE 

- CHARGED  TO THE  EC  BUDGET 
(REFUNDS/INTERVENTIONS) 

CURRENT  FINANCIAL  YEAR 
._ 

< 1995 

I 

FOLLOWING  FINANCIAL  YEAR 
(  1996 ) 

- NATIONAL  AUTHORITIES 

not  known 

not  known 

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 

1997 

1998 

1999 

2000 

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 ? 

COMMENTS : 

Expenditure  under  heading  1060 may  fall  since withdrawal  of land  for  environmental  purposes 
or afforestation  is not  aided  under  the set-aside  provisions. Expenditure  under  the  headings 
for  aid  for  withdrawal  for  these purposes  (5011  and 5012) may  increase  within  the  limit  of 
this  fall. 

YES 

YES 

NO 

NO 

^ 

BSN 0254-1475 

COM(94) 636 final 

DOCUMENTS 

EN 

03 

Catalogue number : CB-CO-94-661-EN-C 

ISBN 92-77-83862-0 

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