Proposal for a Council Regulation (EC) introducing special temporary measures for hops
Date: 1998-04-20
Institutions: European Commission
Subjects: grubbing premium, hops, production surplus, utilised agricultural area

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 20.04.1998 
COM(1998) 235 final 

Proposal for a 

COUNCIL REGULATION (EC) 

introducing special temporary measures for hops 

(presented by the Commission) 

EXPLANATORY  MHMORANIHjM 

The Council  is asked  to adopt the attached  proposal  for a Regulation  introducing  special 

temporary measures for hops. 

The market in hops is at present oversupplied  for both short-term  and structural reasons. 

It is desirable that production  be reduced  by lowering the areas planted  in the European 

Union. 

The measures proposed - lasting live years - are temporary  resting and grubbing-up. 

To achieve the aims in question  the scope for  flexibility  accorded producer groups will be 

widened. The present budgetary appropriation will not need to be increased. 

Both  measures  will  be  entirely  optional,  whether  at  Member  State,  producer  group  or 

individual producer level. 

The actual provisions are: 

- 

inclusion of "temporary resting" and "grubbing-up" in the list of special measures that 

may  be  taken  at  producer  group  level  for  the  purposes  of  joint  adjustment  of 

production  to market-requirements; 

payment  by  producer  groups  of  a  financial  contribution,  to  be  taken  out  of  the 

maximum  20% deduction from  the producer aid; this will partly offset  the actual cost 

of applying the measures and the loss of income; 

-  continued  payment  of the  aid  - ECU  480/ha  -  for  a maximum  period  of  5 years  for 

areas rested or grubbed up, subject to observance of certain requirements. 

2 -3 

Proposal for 

COUNCIL REGULATION (EC) No 

of 

introducing special temporary measures for hops 

TUB COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

Having regard to Council Regulation (EEC) No 1696/71 of  26 July  1971 on the common 

organisation of the market in hops', and in particular Article 16a thereof, 

Having regard to the proposal from the Commission, 

Whereas Article  16a of Regulation (EEC) No 1696/71 provides that if surpluses arise the 

Council,  acting  by  a qualified  majority  on  a proposal  from  the  Commission,  may  take 

appropriate  action  on  production  potential;  whereas  the  market  in  hops  is  at  present  in 

surplus, for both short-term and structural reasons; 

Whereas  one  of  the  purposes  of  producer  groups  is  to  adjust  production  to  market 

requirements; whereas they may use up to 20% of the aid on appropriate measures to that 

end; whereas their scope for  action  in this area should be extended  by allowing them to 

have  recourse  to  temporary  resting  and  permanent  grubbing-up  of  areas  under  hops; 

whereas these measures will be additional to the special measures listed in Article 7(1 )(b) 

of the abovementioned Regulation; 

Whereas temporary resting  and permanent  grubbing-up  can be permitted  only  if  certain 

requirements are met, in particular non-cumulation of aid for areas temporarily rested and 

an obligation  to reduce areas by 2002; whereas this will  entail  costs; whereas these, and 

loss  of  income,  should  be  met  in  part  by  payment  of  an  amount  equal  to  the  aid  per 

hectare  for  a  limited  period;  whereas  temporary  granting  of  this  amount  on  such 

1  OJ  L  175,  4.8.1971,  p.  1.  Regulation  last  amended  by  Regulation  (EC)  No  1554/97  (OJ  L  208, 

2.8.1997, p. 1). 

unharvested  areas  should  therefore  be  permitted; whereas  for  effectiveness  of  supervision 

the minimum size of these areas should be  specified; 

Whereas  for  the  sake  of  proper  application  of  these  measures  the  responsibilities  of 

producer groups and of the Member  States' competent  authorities should be defined, 

HAS  ADOPTED  THIS  REGULATION: 

Article 1 

In addition to  the functions  described  in Article  7(1 )(b)  of Regulation  (EEC)  No  1696/71 

producer groups may also  have recourse to temporary  resting and permanent  grubbing-up 

as  means  of  jointly  adjusting  their  production  to  market  requirements  and  improving 

product quality. 

Article 2 

1.  Producers  with  areas  put  into  temporary  rest  or  permanently  grubbed  up  may,  as 

regards  the  1998  to  2002  harvests,  receive  an amount  equal  to  the  aid  on  the  area  had it 

been cropped, provided  that they undertake not to extend  hop cultivation to  other areas of 

their holding. 

They may not receive any other Community aid on areas temporarily rested. 

The  hop  area  cultivated  for  the  2003  harvest  by  a  producer  group  applying  temporary 

resting or permanent grubbing-up  must be less than that cultivated for the  1997 harvest. 

2.  Producer groups shall  determine the minimum plot size for which an application  may be 

lodged.  This may not be less than 0.3  hectares. 

3.  Producer groups  may lay down  other specific  requirements  to be met by their members 

in cases of temporary resting and grubbing-up. 

4.  Areas  put  into  temporary  rest  or  grubbed  up  must  be  notified  to  the  competent 

authorities  by  31  May  of  the  year  of  harvest.  These  shall  check  that  the  following 

requirements have been met: 

- for temporary resting, maintenance of the hop poles 

- for permanent grubbing-up, removal of the hop poles 

- permanent grassing over in order to improve soil fertility. 

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

Article 3 

Official Journalrofthe  European  Communities. 

It shall apply from the  1998 to the 2003 harvests. 

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

States. 

Done at Brussels r 

For the Council 

-6 

FINANCIAL STATEMENT 

BUDGET HEADING: 

181 

APPROPRIATIONS: 
ECU  13 million 

TITLE: 
Proposal for a Council Regulation  introducing special temporary measures for hops 

LEGAL BASIS: 
Regulation  (EEC) No 1696/71, as last amended by Regulation  (EC) No 1554/97 

AIMS: 
To introduce special temporary measures involving the voluntary reduction of hops production thanks to aid granted 
(limited to five years) for set-aside or grubbing-up of areas under hops. 

FINANCIAL  IMPLICATIONS 

EXPENDITURE 
-  CHARGED TO THE EC BUDGET 
(REFUNDS/INTERVENTION) 

-  NATIONAL  AUTHORITIES 
-  OTHER 
REVENUE 
-  OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 

-  NATIONAL 

ESTIMATED  EXPENDITURE 

METHOD OF CALCULATION: 

PERIOD OF 
12 MONTHS 

(ECU million) 

CURRENT 
FINANCIAL 
YEAR  (1998) 
(ECU million) 

FOLLOWING 
FINANCIAL 
YEAR  (1999) 
(ECU million) 

20Q0 
(ECU million 

2001 
(ECU million 

2002 
(ECU million 

2003 
(ECU million 

3. 

4. 

5.0 

5.1. 

5.0.1 
5.1.1 
5.2 

The measure entails no additional  expenditure as compared with the present  situation, the aid per hectare for areas 
gnibbed up or set aside remaining  unaltered. 

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 

6.3 

WILL A SUPPLEMENTARY BUDGET BE NECESSARY? 

WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 

OBSERVATIONS: 

The measure is scheduled to last for five years. 

YES/NO 

YES/NQ 

YES/NO 

Q-

ISSN 0254-1475 

COM(98) 235 final 

DOCUMENTS 

EN 

03  10  09  01 

Catalogue number  : CB-CO-98-253-EN-C 

ISBN 92-78-35152-0 

Office  for Official  Publications of the European Communities 

L-2985 Luxembourg 

P