Proposal for a COUNCIL REGULATION (EC) amending Regulation (EC) No 1017/94 concerning the conversion of land currently under arable crops to extensive livestock farming in Portugal
Date: 1995-05-10
Institutions: European Commission
Subjects: Portugal, agricultural guidance, arable land, livestock, redirection of production, suckler cow

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

Brussels,  10.05.1995 
COM(95)168  final 

95/0101(CNS) 

Proposal for a 

COUNCIL REGULATION (EO 

amending Regulation  (EC) No 1017/94 concerning the conversion  of land 
currently  under arable crops to extensive  livestock  farming  in  Portugal 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

Council Regulation (EC) No  1017/94 of 26 April  1994 concerning the conversion of land 
currently  under  arable  crops to  extensive  livestock  farming  in  Portugal  was  adopted  in 
order to allow Portuguese producers who have recovered land previously collectivised to 
resume traditional  agricultural  activities on these lands. 

A  number  of  difficulties  came  to  light  on  implementation  of  the  Regulation. 
Subsequently,  and  at  the  request  of  Portugal,  a  declaration  was  formulated  during  the 
adoption of the  1994-95 prices package at the Council  session of  18-19 July  1994 to the 
effect that the Council noted that the Commission intended to propose a minor adjustment 
to  Regulation  (EC)  No  1017/94  so  as to  settle  the  problems  experienced  by  producers 
who had been allocated after  1989 previously collectivised land and who had not had the 
time to start up their activities prior to the reference periods. 

To  that  end  this  draft  Regulation  considers  land  redistributed  from  1 January  1990  as 
being eligible for  compensatory payments. 

At  the  same  time  problems  of  a  more  technical  nature  arose  which  require  the 
introduction  of  certain  adjustments  to  the  scheme  while  maintaining  the  principles 
underlying Regulation  (EC) No  1017/94: 

exchange of land  eligible for  compensatory payments under  the  support  scheme 
for producers of certain arable crops by means of the creation of premiums for the 
rearing  of  livestock, 

guarantee that the livestock production resulting from those premiums would have 
to be very extensive. 

The proposal  thus satisfies  the undertakings given by the  Commission. 

The measure in question comes under the exclusive competence of the Community. The 
type  of  legal  instrument  best  meeting  the  requirements  of  the  envisaged  action  is  a 
Regulation amending the original Regulation. Lastly, we should stress that the aim of the 
is  to  resolve  certain  problems  which  have  hindered  the 
proposal 
implementation  of the conversion  of  land to  extensive  livestock  farming  in Portugal  as 
provided  for by the Council. 

in  question 

A 

Proposal  for  a 

Council  Regulation  (EC) No 

/95 

of 

1995 

amending Regulation  (EC) No  1017/94 concerning the conversion  of land 
currently under arable crops to extensive  livestock  farming in  Portugal 

THE COUNCIL OF THE  EUROPEAN  UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Conranunky,  and  in  particular 

Article 43 thereof, 

Having regard to  the proposal  from  the Commission, 

Having regard to the opinion  of the European  Parliament,2 

Whereas a number of problems came to light when Council Regulation (EC) No  1017/94 

concerning  the  conversion  of  land  currently  under  arable  crops  to  extensive  livestock 
farming  in Portugal3 was applied;  whereas that Regulation  should therefore  be  adapted; 

Whereas the redistribution  of previously collectivised  holdings in Portugal  was in some 

cases decided very late and producers whose rights were restored were not able to return 

the redistributed land to its arable use prior to the deadline of 31 December  1991 and thus 

benefit  from  the  support  system  for  producers  of  certain  arable  crops  established  by 
Council  Regulation  (EEC)  No  1765/924,  as  last  amended  by  Regulation  (EC) 
No 3116/945; whereas, for reasons of fairness, those holdings should be made equivalent 

to land having benefited  from  compensatory payments; 

OJNoC 
OJNoC 
OJNoL  112, 3.5.1994, p. 2. 
OJNoL  181, 1.7.1992, p. 12. 
OJ No L 330, 21.12.1994, p. 1. 

Whereas the livestock  density per hectare fixed by Regulation (EC) No  1017/94 may in 

the  future  restrict  opportunities  for  drawing  profit  from  the  converted  land  and  thus 

reduce interest  in  the conversion  programme; whereas there is therefore justification  in 

granting  to  producers  intending  to  participate  in  the  programme  the  possibility  of 

increasing  that  density  while  adhering  to  the  principle  of  increased  extensification, 

without  -  however  -  changing  the  initial  rate  of  conversion  of  land  to  livestock 

production,  to retain the weighting applied under the programme; 

Whereas Article 3(3) of Regulation (EC) No  1017/94 stipulates a reduction in the number 

of  rights  to  the  suckler  cow  premium  laid  down  in  Article  4d  of  Regulation  (EEC) 
No 805/68 on the common organisation  of the market in beef and veal6, as last amended 
by Regulation (EC) No 424/957, where areas are converted to the rearing of suckler cows; 

whereas that reduction  severely  penalises breeders of cows; whereas, therefore,  in order 

to maintain the financial equilibrium of the conversion programme, that individual rights 

reduction  should be replaced by an overall reduction made directly on the regional base 

area in Portugal, as referred to in Article 2 of Regulation (EEC) No  1765/92, within the 

maximum limit  of 200 000 hectares envisaged by the conversion  programme; 

Whereas the amendments  also require textual  changes to  some Articles, 

HAS ADOPTED THIS  REGULATION: 

Article 1 

Regulation  (EC) No  1017/94 is hereby amended as  follows: 

6 
7 

OJ No L 148, 28.6.1968, p. 24. 
OJNoL 45, 1.3.1995, p. 2. 

i> 

(1) 

The following  subparagraph is added to Article 3(1): 

"However, previously collectivised land redistributed to its former owners or those 

entitled from 1  January 1990 to which producers were unable to restore its arable 

nature  prior  to  the  deadline  of  31  December  1991  may  be  deemed  to  have 

benefited  from  the  compensatory  payments  referred  to  in  Regulation  (EEC) 

No 1765/92 provided that Ae  tod  is deducted from the basic area referred  to in 

Article 9 of ïfcat Regulation/ 

(2) 

In Article 3(2) the number of livestock units per hectare, "QS\ is replaced by the 

number *1.0*\ 

(3) 

In Article \  paragraph 3 is replaced by the following: 

"3.  A number of premium rights equivalent to 0.5 LU shall be allocated per 

hectare converted  to  extensive livestock  production.  In  addition, where 

land  is converted  to  the rearing of  suckler  cows, a number  of  animals 

equal to 45% of the number of suckler cow premium rights allocated each 

year  under  this  Regulation  shall  be  sééeâ  with  effect  from  the  next 

calendar year to the regional ceiling referred to in Article 4b of Regulation 

(EEC) No 805/68." 

(4) 

In Article 4, the second indent is replaced by the following: 

"- 

an undertaking to use the converted land for  the extensive production of 

livestock." 

(5) 

In Article 8, letter (b) is replaced by the following: 

"(b) 

checks to ascertain that the land declared eligible under this Regulation is 

duly converted to extensive livestock production within the time limit laid 

down." 

q 

(6) 

Article 9 is replaced by the following: 

"Article 9 

1. 

The  area  converted  under  this  Regulation  and  corresponding  to  all 

admissible  applications  during  each  marketing  year  shall,  from  the 

following  marketing  year,  be  deducted from the  regional  base  area or, 

where applicable, the individual base area provided for in Article 2(2) or 

(3) of Regulation (EEC) No  1765/92. 

2. 

In addition to the deduction referred to in paragraph  1, where the land is 

converted  to the rearing  of  suckler  cows  a number of  hectares  equal  to 

54% of the number of suckler cow premium rights allocated each year to 

producers shall, from the following marketing year, be deducted from the 

base area. 

3 

.The Portuguese authorities shall notify  the Commission each year of the 

total  area converted under this Regulation  so that the regional  base area 

can be amended in good time. 

4. 

Converted land shall be considered as permanent pasture as referred to in 

Article 9 of Regulation (EEC) No  1765/92." 

Article 2 

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

OfficialJournal of the European  Communities. 

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

States. 

Done at 

, 

1995 

FortheCouncil 

^ 

BUDGET  HEADING:  Chapter  10 
Chapter  21 

APPROPRIATIONS:  ECU  14 574 m. 
ECU 4  887 m 

fj 

2. 

TITLE:  Proposal  for  a Council  Regulation  amending  Regulation  (EC) No  1017/94 concerning the  conversion of land 

currently under arable  crops to extensive livestock  fanning  in  Portugal. 

3. 

LEGAL BASIS:  Article 43 of the Treaty 

AIMS:  To adjust  Regulation  (EC) No  1017/94 so as to allow  Portugal to  carry out the  conversion  of land under  arable 

crops to livestock  farming. 

FINANCIAL  IMPLICATIONS. 

5.0. 

EXPENDITURE 
-  CHARGED TO THE  EC  BUDGET 

(REFUNDS) 

- NATIONAL  AUTHORTOES 
-OTHER 

5.1. 

REVENUE 
- OWN RESOURCES OF THE EC 

(LEVIES) 
-  NATIONAL 

5.0.1. 
5.1.1. 

ESTIMATED  EXPENDITURE 
ESTIMATED  REVENUE 

5.2. 

METHOD OF CALCULATION: 

PERIOD OF  12 
MONTHS 

(ECU million) 

CURRENT 
FINANCIAL 
YEAR 
(95) 
(ECU million) 

FOLLOWING 
FINANCIAL 
YEAR 
(96) 
(ECU million) 

1997 

1998 

1999 

2000 

6.0. 

6.1. 

6.2. 

6.3. 

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

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

WILL  A SUPPLEMENTARY  BUDGET  BE NECESSARY? 

WILL FUTURE  BUDGET  APPROPRIATIONS  BE  NECESSARY? 

YES/NO 

YES/NO 

YES/NO 

YES/NO 

OBSERVATIONS  The  measure  as such has no  financial  implications. 

The  financial  implications of  Regulation  (EC) No  1017/94 are  included  in document  COM(94)  114 final of 
8  April  1994. It should  be noted that as a result of the delay  in implementing  the  Regulation  in  Portugal 
there has been a shift  in expenditure  from  1995 to  1996 (no saving  in  1995 but  increased  saving  in  1996). 

*r 

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COM(95) 168  final 

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