Proposal for a Regulation of the European Parliament and of the Council amending Council Regulation (EEC) No 571/88 on the organisation of Community surveys on the structure of agricultural holdings, as regards the financial framework for the period 2007-2009 and the maximum Community contribution for Bulgaria and Romania
Date: 2006-06-28
Institutions: European Commission
Subjects: Bulgaria, EU aid, Romania, agricultural holding, agricultural statistics, agricultural structure, economic survey, financial aid, management

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 28.6.2006 
COM(2006)344 final 

2006/0112(COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Council Regulation (EEC) No 571/88 on the organisation of Community 
surveys on the structure of agricultural holdings, as regards the financial framework for 
the period 2007-2009 and the maximum Community contribution for Bulgaria and 
Romania 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

In  accordance  with  Council  Regulation  (EC)  No  571/88,  as  last  amended  by  Commission 
Regulation  (EC)  No  204/2006,  the  Member  States  are  required  to  conduct  a  survey  on  the 
structure  of  agricultural  holdings  in  2007,  as  part  of  the  multiannual  programme  of  surveys 
covering the period up to 2007. Article 14 of this Regulation provides that the Member States 
will be reimbursed 20 ECU per holding for the expenses incurred in carrying out the surveys, 
subject to a maximum amount per survey. 

The  proposed  Regulation  lays  down  the  financial  framework  for  the  remainder  of  this 
multiannual programme. 

It also establishes the maximum Community contribution for the 2007 surveys to be carried 
out  in  Bulgaria  and  Romania.  These  maximum  amounts  are  based  on  the  number  of 
agricultural  holdings  and  the  surface  area  of  the  countries  concerned,  to  ensure  that  these 
countries are treated in a comparable manner to the current Member States. 

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2006/0112(COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Council Regulation (EEC) No 571/88 on the organisation of Community 
surveys on the structure of agricultural holdings, as regards the financial framework for 
the period 2007-2009 and the maximum Community contribution for Bulgaria and 
Romania 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 
285(1) thereof, 

Having regard to the Act of Accession of Bulgaria and Romania, and in particular Article 56 
thereof, 

Having regard to the proposal from the Commission1, 

Acting in accordance with the procedure laid down in Article 251 of the Treaty2, 

Whereas: 

(1) 

(2) 

Council  Regulation  (EEC)  No  571/883  provides  for  the  Member  States  to  be 
reimbursed  up  to  a  maximum  amount  per  survey,  as  a  contribution  to  expenses 
incurred. 

In order to carry out the surveys on the structure of agricultural holdings, considerable 
funding will be required from the Member States and from the Community to meet the 
information requirements of the Community institutions. 

(3)  With a view to the accession of Bulgaria and Romania and to conducting surveys on 
the  structure  of  agricultural  holdings  in  these  new  Member  States  in  2007,  it  is 
appropriate  to  provide  for  a  maximum  Community  contribution  per  survey;  this 
adaptation is needed by reason of accession and has not been provided for in the Act 
of Accession. 

1 
2 
3 

OJ C , , p. . 
OJ C , , p. . 
OJ  L  56,  2.3.1988,  p.  1.  Regulation  as  last  amended  by  Commission  Regulation  (EC)  No  204/2006 
(OJ L 34, 7.2.2006, p. 3). 

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(4) 

This  Regulation  lays  down,  for  the  remainder  of  the  programme,  a  financial 
framework  constituting  the  prime  reference  for  the  budgetary  authority  during  the 
annual  budgetary  procedure,  within  the  meaning  of  point  33  of  the  Interinstitutional 
Agreement  of  6  May  1999  between  the  European  Parliament,  the  Council  and  the 
Commission on budgetary discipline and improvement of the budgetary procedure4, 

HAVE ADOPTED THIS REGULATION: 

Regulation (EEC) No 571/88 is amended as follows: 

Article 1 

1. 

The following indent is added to the first subparagraph of Article 14(1): 

'- EUR 2 000 000 for Bulgaria and Romania.' 

2. 

In Article 14, the third sub-paragraph of paragraph 1 is replaced by the following: 

"The  financial  framework  for  the  implementation  of  this  programme,  including  the 
appropriations necessary for the management of the Eurofarm project, shall be set at 
EUR 20.4 million for the period 2007-2009. 

The annual appropriations shall be authorised by the budgetary authority within the 
limits of the financial perspective." 

Article 2 

This  Regulation  shall  enter  into  force  on  the  twentieth  day  following  its  publication  in  the 
Official Journal of the European Union. 

Article 1(1) shall apply as from 1 January 2007. 

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

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

4 

OJ C 172, 18.6.1999, p. 1. Agreement as amended by Decision of the European Parliament and of the 
Council (OJ L 147, 14.6.2003, p 25). 

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LEGISLATIVE FINANCIAL STATEMENT 

PRELIMINARY REMARK 

This financial statement covers both the proposal and Council Regulation 2467/96 of 
17  December  1996,  which  drew  up  the  programme  of  surveys  on  the  structure  of 
agricultural holdings in the then EU-15 for the period 1998 to 2007. 

In  accordance  with  the  Interinstitutional  Agreement  of  6  May  1999  between  the 
European Parliament, the Council and the Commission on budgetary discipline and 
improvement  of  the  budgetary  procedure,  the  proposal  contains  a  provision  on  the 
financial framework for the entire remainder of the programme. 

It should be noted that, to make it possible to grant the Community contribution, the 
total  cost  of  a  given  survey  is  spread  over  several  years.  Accordingly,  the 
Community contribution for the 2007 survey is spread over the period 2006-2009. 

Regulation (EC) No 1435/2004 of the European Parliament and of the Council of 22 
June 2004 provides that: 

“The amount for the period 2007-2009 will be fixed by the budgetary and legislative authority 
on  a  proposal  from  the  Commission  on  the  basis  of  the  new  financial  perspective  for  the 
period commencing in 2007.” 

The appropriations should also be adjusted to take into account the planned accession 
of Bulgaria and Romania from 2007 on. 

The  proposed  framework  covers  part  of  the  cost  of  the  2007  survey  which  will  be 
carried  out  in  EU-27  (some  advance  payments  having  been  made  in  2006)  and 
certain expenditure for the 2005 survey carried out in EU-25. 

1. 

NAME OF THE PROPOSAL: 

Regulation  of  the  European  Parliament  and  of  the  Council  amending  Council  Regulation 
(EEC) No 571/88 on the organisation of Community surveys on the structure of agricultural 
holdings,  defining  the  financial  framework  for  the  period  2007-2009  and  establishing  the 
maximum Community contribution for Bulgaria and Romania. 

2. 

ABM / ABB FRAMEWORK 

Policy Area(s) concerned and associated Activity/Activities: 

Policy strategy and coordination of policy area Agriculture and Rural Development. 

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3. 

BUDGET LINES 

3.1. 

Budget  lines  (operational  lines  and  related  technical  and  administrative 
assistance lines (ex- B.A lines)) including headings: 

05.0802: Surveys of the structure of agricultural holdings 

3.2. 

Duration of the action and of the financial impact: 

2007-2009 

3.3. 

Budgetary characteristics: 

Budget 
line 

Type of expenditure 

New 

EFTA 
contribution 

Contributions 
from applicant 
countries 

Heading in 
financial 
perspective 

05.0802 

Comp. 

Diff. 

NO 

NO 

NO 

No  

4. 

SUMMARY OF RESOURCES 

4.1. 

Financial Resources 

4.1.1. 

Summary of commitment appropriations (CA) and payment appropriations (PA) 

EUR million (to 3 decimal places) 

Expenditure 
type 

Credits 
committed 
before 
2007 

Operational expenditure5 

2007 

2008 

2009 

2010 

Total 

Without 
credits 
committed 
before 
2007 

With 
credits 
committed 
before 
2007 

Commitment 
Appropriations 
(CA) 

Payment 
Appropriations 
(PA) 

EU-25 

15.400 

15.000 

0.850 

0.550 

BG & RO 

0 

4.000 

EU-27 

EU-25 

15.400 

19.000 

0.850 

0.550 

9.200 

14.300 

6.380 

1.570 

0.350

BG & RO 

0 

2.400 

1.600 

EU-27 

9.200 

16.700 

7.980 

1.570 

0.350

16.400 

4.000 

20.400 

22.600 

4.000 

26.600 

31.800

4.000

35.800

31.800

4.000

35.800

5 

Expenditure that does not fall under Chapter xx 01 of the Title xx concerned. 

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Administrative expenditure within reference amount6 

Technical  &  administrative 
assistance (NDA) 

TOTAL REFERENCE AMOUNT 

Commitment 
Appropriations 
(CA) 

Payment 
Appropriations 
(PA) 

EU-25 

15.400 

15.000 

0.850 

0.550 

BG & RO 

0 

4.000 

EU-27 

EU-25 

15.400 

19.000 

0.850 

0.550 

9.200 

14.300 

6.380 

1.570 

0.350

BG & RO 

0 

2.400 

1.600 

EU-27 

9.200 

16.700 

7.980 

1.570 

0.350

16.400 

4.000 

20.400 

22.600 

4.000 

26.600 

31.800

4.000

35.800

31.800

4.000

35.800

Co-financing details 

Article 14(1) of Council Regulation (EEC) No 571/88 of 29 February 1988 sets the maximum 
amount of the Community’s contribution per Member State and the total financial allocation 
to  the  programme.  The  same  Article  stipulates  that  for  carrying  out  the  surveys  on  the 
structure of agricultural holdings “€20 per holding (…) shall be reimbursed up to a maximum 
per survey”. 

The  Community’s  contribution  covers  only  part  of  the  total  cost  of  the  surveys  and  it  is 
estimated at approximately 25% in the case of sample surveys. This contribution is necessary 
to  offset  part  of  the  additional  costs  incurred  by  the  Member  States  to  meet  the  specific 
statistical requirements of the Commission and to ensure better harmonisation at Community 
level of collection methods, the characteristics to be surveyed and the dates of the surveys. 

Co-financing 
body 

National 
Statistical 
Bodies 

TOTAL  CA 
including  co-
financing 

EUR million (to 3 decimal places) 

Total 

2007 

2008 

2009 

2010 

Credits 
committed 
before 2007 

EU-25 

BG & RO 

EU-27 

EU-25 

15.400 

15.000 

0.850 

0.550 

BG & RO 

0 

4.000 

EU-27 

15.400 

19.000 

0.850 

0.550 

16.400 

31.800

4.000 

4.000

20.400 

35.800

4.1.2.  Compatibility with Financial Programming 

X 

Proposal is compatible with existing financial programming. 

6 

Expenditure within Article xx 01 04 of Title xx. 

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(cid:133) 

(cid:133) 

Proposal  will  entail  reprogramming  of  the  relevant  heading  in  the  financial 
perspective. 

Proposal  may  require  application  of  the  provisions  of  the  Interinstitutional 
Agreement7 (i.e. flexibility instrument or revision of the financial perspective). 

4.1.3.  Financial impact on Revenue 

X 

(cid:133) 

Proposal has no financial implications on revenue 

Proposal has financial impact – the effect on revenue is as follows: 

Budget line 

Revenue 

EUR million (to one decimal place) 

Prior to
action 
[Year 
n-1] 

[Year 
n] 

Situation following action 

[n+1] [n+2]  [n+3]  [n+4] [n+5]

8 

a) Revenue in absolute terms 

b) Change in revenue 

 ∆ 

4.2. 

Human Resources FTE (including officials, temporary and external staff) – see 
detail under point 8.2.1. 

Annual requirements 

2007 

2008 

2009 

2010 

2011 

2012 
and 
later 

Total  number  of  human 
resources 

5. 

CHARACTERISTICS AND OBJECTIVES 

5.1. 

Need to be met in the short or long term 

The  purpose  of  this  measure  is  to  part-finance  the  statistical  surveys  needed  to  monitor  the 
structure of farms in the European Union. 

7 
8 

See points 19 and 24 of the Interinstitutional Agreement. 
Additional columns should be added if necessary, i.e. if the duration of the action exceeds 6 years. 

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Results of the farm structure surveys are controlled, stored, analysed and disseminated using 
the Eurofarm application. 

5.2. 

Value-added  of  Community  involvement  and  coherence  of  the  proposal  with 
other financial instruments and possible synergy 

Up to 1990, the results of the Community farm structure surveys (that are conducted 
every two or three years) were stored in Eurostat as standard tables sent by Member 
States.  Since  1990  Member  States  no  longer  send  standard  tables  but  submit 
individual farm records that are stored in the Eurofarm database. This is considered 
to  be  the  most  efficient  way  to  make  harmonised  detailed  information  available 
within  a  very  short  time  for  ad-hoc  analyses  necessary  for  the  management, 
evaluation and design of the common agricultural policy. 

5.3. 

Objectives, expected results and related indicators of the proposal in the context 
of the ABM framework 

The surveys on farm structures play a key role in agricultural statistics by providing 
at regular intervals (normally every two to three years) a large volume of statistics on 
the main socio-structural characteristics of Community agriculture (size of holdings, 
land  use,  agricultural  manpower,  technical  and  economic  orientation,  other  gainful 
employment,  type  of  occupancy,  etc.).  They  are  not  only  useful  for  shaping  rural 
development policy but also have many uses in the context of managing agricultural 
markets and other policies (in particular, regional, social and environmental policy). 

5.4.  Method of Implementation (indicative) 

X  Centralised Management 

X 

directly by the Commission 

(cid:133) 

indirectly by delegation to: 

(cid:133) 

executive Agencies 

(cid:133) 

bodies set up by the Communities as referred to in Article 185 of 
the Financial Regulation 

(cid:133) 

national public-sector bodies/bodies with public-service mission 

(cid:133) 

Shared or decentralised management 

(cid:133)  with Member States 

(cid:133)  with third countries 

(cid:133) 

Joint management with international organisations (please specify) 

Relevant comments: 

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6. 

MONITORING AND EVALUATION 

6.1.  Monitoring system 

The  information  collected  is  defined  in  a  list  of  characteristics  adopted  by 
Commission decision after consultation of the Standing Committee for Agricultural 
Statistics. 

6.2. 

Evaluation 

6.2.1.  Ex-ante evaluation 

The  current  Regulation  requires  Member  States  to  communicate  the  results  of  the 
surveys in line with a pre-defined timetable and procedure. They also have to submit 
a  technical  report  describing  the  organisation  and  methodology  of  the  survey.  In 
addition, when necessary, the Commission or the Member States can refer any issue 
to the Standing Committee for Agricultural Statistics. 

Finally,  every  three  years,  the  Commission  must  submit  to  the  Council  a  report  on 
the action taken and, in particular, on the operation of Eurofarm. 

6.2.2.  Measures taken  following  an intermediate/ex-post evaluation (lessons learned from 

similar experiences in the past) 

6.2.3.  Terms and frequency of future evaluation 

7. 

ANTI-FRAUD MEASURES 

(1) 

(2) 

(3) 

Contracts and agreements are paid only on the basis of results delivered. 

Agreements  with  Member  States  state  that  they  have  to  provide  an  audit 
report making it possible to estimate the share of the Community contribution 
in the total cost of the survey. 

Statistical  information  is  considered  an  objective  instrument  to  support 
evaluation and monitoring of Community action plans. As such, it contributes 
to improving the anti-fraud system. 

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8. 

DETAILS OF RESOURCES 

8.1. 

Objectives of the proposal in terms of their financial cost 

Commitment appropriations in EUR million (to 3 decimal places) 

Type of 
output 

Av. 
cost 

2007 

2008 

2009 

TOTAL 

No. outputs 

Total cost  No. 

outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total cost 

SURVEY 
2007  

EU-25 

Statistical data 
for individual 
farms 

20 € 

remainder 

14.700 

0.300 

BG  & 
RO 

Statistical data 
for individual 
farms 

20 € 

200 000 

4.000 

15.000 

4.000 

Maintenance 
of the database 
and of 
validation, 
consultation 
and 
dissemination 
tools 

EUROFA
RM 

TOTAL 
COST 

1 

0.300 

1 

0.550 

1 

0.550 

1.400 

19.000 

0.850 

0.550 

20.400 

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8.2. 

Administrative Expenditure 

8.2.1.  Number and type of human resources 

Types of post 

Staff to be assigned to management of the action using existing and/or 
additional resources (number of posts/FTEs) 

Year n 

Year n+1  Year n+2  Year n+3  Year n+4  Year n+5 

Officials or 
temporary 
staff9 (XX 01 
01) 

A*/AD 

B*, 
C*/AST 

Staff  financed10  by  Art. 
XX 01 02 

Other  staff11  financed by 
Art. XX 01 04/05 

TOTAL 

8.2.2.  Description of tasks deriving from the action 

8.2.3. 

Sources of human resources (statutory) 

When  more  than  one  source  is  stated,  please  indicate  the  number  of  posts  originating  from 
each of the sources 

(cid:133) 

(cid:133) 

(cid:133) 

(cid:133) 

(cid:133) 

Posts currently allocated to the management of the programme to be replaced 
or extended 

Posts pre-allocated within the APS/PDB exercise for year n 

Posts to be requested in the next APS/PDB procedure 

Posts  to  be  redeployed  using  existing  resources  within  the  managing  service 
(internal redeployment) 

Posts required for year n although not foreseen in the APS/PDB exercise of the 
year in question 

9 
10 
11 

Cost of which is NOT covered by the reference amount. 
Cost of which is NOT covered by the reference amount. 
Cost of which IS included within the reference amount. 

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8.2.4.  Other  administrative  expenditure  included  in  reference  amount  (XX  01  04/05  – 

Expenditure on administrative management) 

Budget line 
(number and heading) 

EUR million (to 3 decimal places) 

Year 
n 

Year 
n+1 

Year 
n+2 

Year 
n+3 

Year 
n+4 

Year 
n+5 
and 
later 

TOTAL 

Technical 

1 
and 
assistance (including related staff costs) 

administrative 

Executive agencies12 

Other 

technical 

and 

administrative 

assistance 

- intra muros  

- extra muros 

Total  Technical  and  administrative 
assistance 

8.2.5.  Financial cost of human resources and associated costs not included in the reference 

amount 

EUR million (to 3 decimal places) 

Type of human resources 

Year n 

Year 
n+1 

Year 
n+2 

Year 
n+3 

Year 
n+4 

Year 
n+5 

and later 

Officials  and  temporary  staff 
(XX 01 01) 

Staff  financed  by  Art  XX  01 
02  (auxiliary,  END,  contract 
staff, etc.) 

(specify budget line) 

cost 

Total 
of  Human 
Resources  and  associated 
in  reference 
costs 
amount) 

(NOT 

12 

Reference should be made to the specific legislative financial statement for the Executive Agency(ies) 
concerned. 

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Calculation– Officials and Temporary agents 

Reference should be made to Point 8.2.1, if applicable. 

Calculation– Staff financed under Art. XX 01 02 

Reference should be made to Point 8.2.1, if applicable. 

8.2.6. Other administrative expenditure not included in reference amount 

EUR million (to 3 decimal places)

Year 
n 

Year 
n+1 

Year 
n+2 

Year 
n+3 

Year 
n+4 

Year 
n+5 

and 
later 

TOTAL 

XX 01 02 11 01 – Missions 

XX 01 02 11 02 – Meetings & Conferences 

XX 01 02 11 03 – Committees13  

XX 01 02 11 04 – Studies & consultations 

XX 01 02 11 05 - Information systems 

2 

Total 

Other  Management 

Expenditure (XX 01 02 11) 

3  Other 

expenditure 

administrative 
including reference to budget line) 

nature 

of 

an 
(specify 

expenditure, 
than  human  resources  and 
in 

Total  Administrative 
other 
associated  costs  (NOT 
reference amount) 

included 

Calculation - Other administrative expenditure not included in reference amount 

13 

Specify the type of committee and the group to which it belongs. 

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