CELEX: 51991SC0268
Language: en
Date: 1991-03-06
Title: PROPOSAL FOR A COUNCIL REGULATION (EEC) ON IMPROVING THE EFFICIENCY OF AGRICULTURAL STRUCTURES

27.3.91                                Official Journal of the European Communities                                No C 82/7
                                                              II
                                                      (Preparatory Acts)
                                                 COMMISSION
              Proposal for a Council Regulation (EEC) on improving the efficiency of agricultural structures
                                                        (91/C 82/06)
                                                      SEQ91)   268 final
                                      (Submitted by the Commission on 12 March 1991)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                          speeding up the adjustment of agricultural structures
                                                                  with a view to reform of the common agricultural policy;
Having regard to the Treaty establishing the European
Economic Community, and in particular Articles 42 and
                                                                  Whereas intervention by the EAGGF for the attainment
43 thereof,                                                       of Objective 5 (a) is governed by Council Regulation
                                                                  (EEC) No 4253/88 of 19 December 1988 laying down
                                                                  provisions for implementing Regulation (EEC) No
Having regard to the proposal from the Commission,                2052/88 as regards coordination of the activities of the
                                                                  different Structural Funds between themselves and with
                                                                  the operations of the European Investment Bank and the
Having regard        to  the  opinion    of  the   European       other existing financial instruments (4), and by Council
Parliament,                                                       Regulation (EEC) No 4256/88 of 19 December 1988
                                                                  laying down provisions for implementing Regulation
                                                                  (EEC) No 2052/88 as regards the EAGGF Guidance
Having regard to the opinion of the Economic and                  Section ( 5 );
Social Committee,
                                                                  Whereas this common measure must fit in with other
Whereas Council Regulation (EEC) No 797/85 of 12                  horizontal measures decided on for the attainment of
March 1985 on improving the efficiency of agricultural            Objective 5 (a); whereas it also reflects certain principles
structures ('), as last amended by Regulation (EEC) No            of Community policiy on agricultural structures that are
3577/90 O , has been substantially amended on a number            generally applicable to any intervention by the Funds;
of occasions; whereas it is appropriate, for reasons of
clarity and rationality, to consolidate the said Regu-
lation;
                                                                  Whereas it is not possible to achieve the objectives of the
                                                                  common agricultural policy set out in Article 39 (1) (a)
Whereas, pursuant to Article 1 of Council Regulation              and (b) of the Treaty without aiding the improvement of
(EEC) No 2052/88 of 24 June 1988 on the tasks of the              the efficiency of agricultural structures, especially in
Structural Funds and their effectiveness and on coordi-           regions experiencing particularly acute problems;
nation of their activities between themselves and with the
operations of the European Investment Bank and the
other existing financial instruments (3), Community
                                                                  Whereas this improvement of the efficiency of agri-
action through the Structural Funds, in particular, is to
                                                                  cultural structures is an indispensable element in the
support the achievement of the general objectives set out
                                                                  development of the common agricultural policy; whereas
in Articles 130a and 130c of the Treaty by contributing
                                                                  it is therefore necessary that such improvement be based
to the attainment of five priority objectives; whereas it is
                                                                  on Community concepts and criteria;
for the Guidance Section of the European Guidance and
Guarantee Fund (EAGGF) to contribute towards
(') OJ No L 93, 30. 3. 1985, p. 1.
O OJ No L 353, 17. 12. 1990, p. 23.                               O OJ No L 374, 31. 12. 1988, p. 1.
(3) OJ No L 185, 15. 7. 1988, p. 9.                               O OJ No L 374, 31. 12. 1988, p. 25.
 ---pagebreak--- No C 82/8                            Official Journal of the European Communities                                 27. 3.91
Whereas, because of the diversity of their causes, nature      however, land used for crops not subject to a common
and gravity, structural problems in agriculture may            organization of the market should be excluded from the
require solutions which vary according to region and are       scheme; whereas to achieve tangible results in terms of
capable of adjustment over a period of time; whereas           the stabilization of supply, it should be stipulated that at
such solutions must contribute to the overall economic         least 20 % of a farmer's arable land must be set aside for
and social development of each region concerned;               a period of at least five years, with provision for him to
                                                               terminate his commitment after three years;
Whereas the situation of agricultural markets has
changed, and will change further, as a result of the new
direction imposed on the common agricultural policy by         Whereas, given the greater need to protect the envi-
the need to secure a gradual drop in output in those           ronment and to maintain the countryside, Member States
sectors where there is a surplus;                              should take necessary measures, if necessary to be
                                                               defrayed by the beneficiary, to keep set-aside land in
                                                               good agriculture! condition;
Whereas, in this context, structural policy must be used
to help farmers adapt to this new situation and to
cushion the effects that the new markets and prices
                                                               Whereas, in the interests of making efficient use of the
policy is likely to have on agricultural incomes in
                                                               Community's farming resources, Member States should
particular;
                                                               be allowed, for an experimental period, to authorize land
                                                               which has been set aside to be used for grazing for
                                                               extensive live-stock farming or for growing lentils,
                                                               chick-peas or vetches; whereas in both cases the amount
Whereas, if European agriculture is to maintain a              of the aid should allow for the reduction in the loss of
presence on world markets, the common agricultural             income;
policy must continue to aim at increasing the efficiency
and competitiveness of agricultural holdings; whereas,
while the majority of the adjustments necessary to ensure
the long-term competitiveness of Community agriculture
must be made through the markets policy, the structural        Whereas is should be left to Member States to set the
policy, too, must make its contribution by strengthening       amount of the aid per hectare of land set aside, in the
production and marketing structures as far as possible         light of the income losses actually sustained and in
but without in any way worsening the imbalance                 accordance with criteria to be laid down within the
between the productive resources allocated to agriculture      framework of the detailed rules for applying these
and the foreseeable outlets;                                   arrangements; whereas, on the one hand, the level of aid
                                                               must be fixed so that it is sufficiently high to provide
                                                               farmers with a real incentive to set aside some of their
                                                               land; whereas, on the other hand, the aid should not
Whereas, as part of this common measure, the                   exceed the level necessary to offset the loss of income
implementation of certain measures is essential if the         resulting from the set-aside of the land; whereas, to this
objective of improving the efficiency of agricultural          end, a framework should be laid down for setting
structures is to be attained; whereas such measures must       minimum and maximum amounts;
therefore necessarily be carried out by the Member
States; whereas, on the other hand, as regards other
measures, the choice should be left open to Member
States as to whether, depending on the specific situations
of their farmers, provision should or should not be made       Whereas, to provide an additional incentive to those
for such measures;                                             farmers who set aside large areas, that is, at least 30 %
                                                               of their arable land, such farmers should be exempted, in
                                                               respect of a quantity of 20 tonnes, from the co-responsi-
                                                               bility levy provided for in Article 4 and the additional
Whereas arrangements for the set-aside of arable land          co-responsibility levy provided for in Article 4b (2) of
may assist the various sectors, and in particular those        Council Regulation (EEC) No 2727/75 of 29 October
with surplus production, to adjust to market                    1975 on the common organization of the market in
requirements;                                                  cereals ('), as last amended by Regulation (EEC) No . . .
Whereas the set-aside arrangements should cover all
arable land, since from one year to another the use made
of such land varies with the rotation of crops; whereas,       (') OJ No L 281, 1. 11. 1975, p. 1.
 ---pagebreak--- 27. 3. 91                             Official Journal of the European Communities                               No C 82/9
Whereas the European Council has requested the                  occupation, that is, he must devote at least half of his
Commission to explore all possibilities of stepping up the      working time to his holding and derive at least half of
use of agricultural raw materials for non-food ends;             his income therefrom; whereas investment aid should,
                                                                 however, be extended to persons who do not practise
                                                                 farming as their main occupation provided that on their
                                                                 holding they engage in forestry, tourism or craft acti-
Whereas possibilities for non-food use are sufficiently
                                                                vities or activities designed to safeguard the environment
advanced, technically and economically, in the case of           and maintain the countryside;
cereals;
                                                                Whereas, in the present economic situation, investment
Whereas the realization of such possibilities enables            aid should be concentrated on holdings where the labour
farmers to turn towards new outlets; whereas, in order           income is less than comparable incomes, and which
to encourage them in this direction, cereals must be             therefore are in greatest need of such aid;
made available at attractive prices;
                                                                 Whereas the adjustment of farm structures by an
                                                                 improvement in productivity resulting in an increase in
Whereas the set-aside of arable land should accordingly          production is confronted by insurmountable limits
be encouraged by providng for specific aid for the use of        because of the existing state of the market for many agri-
arable land for non-food ends;                                   cultural products; whereas investment aid is not intended
                                                                 solely to increase production capacity but also to
                                                                 improve the quality of production facilities; whereas it
                                                                 appears necessary to concentrate such aid on those
Whereas an aid scheme, designed to encourage farmers             investments which allow for a reduction in production
to embark upon conversion and extensification of                 costs and for the improvement in living and working
production, may contribute towards adjusting the various         conditions or which aim at conversion of production;
production sectors to market requirements, in particular         whereas such aid may also be granted for investments
those in which there is a surplus;                               aimed at finding new sources of income, such as tourism
                                                                 or craft activities or the farm-based manufacture and sale
                                                                 of farm products, and to investments aimed at improving
Whereas provision should be made for compensation on             conditions for the hygiene and welfare of animals and at
the basis of the actual reduction in production due to           safeguarding and improving the environment;
extensification or conversion, allowing for the main-
tenance of the incomes of farmers who have undertaken
to reduce production;                                            Whereas, in addition, the objective of market balance in
                                                                 the Community requires that specific conditions be
                                                                 attached to the granting of investment aid in the pig,
                                                                 milk and beef and veal production sectors; whereas it is
Whereas agricultural structure in the Community is               indispensable in accordance with this objective to
typified by the existence of a large number of holdings          prohibit investment aid in the poultrymeat and egg
which lack the structural conditions which would ensure          sectors;
a fair income and living conditions;
                                                                 Whereas the grant of specific benefits to young farmers
                                                                 may facilitate not only their installation but also the
Whereas, in the future, the only holdings capable of
                                                                 structural adjustment of their holding after their first
adjusting to economic conditions will be those on which
                                                                 installation;
the farmer has adequate vocational skill and competence,
and on which profitability is verified by accounts and by
a physical improvement plan;                                     Whereas the keeping of accounts is essential to the
                                                                  correct assessment of the financial and economic
                                                                  situation of holdings, and in particular of those
Whereas the aim of Community investment aid is to                 undergoing modernization; whereas a financial incentive
 modernize agricultural holdings and thus improve their           may encourage the keeping af accounts;
competitiveness in the context of the rational devel-
opment of agricultural production; whereas this aspect of        Whereas, in the interests of rational production and of
the structural policy must be adjusted so as to permit the        improvement in living conditions, encouragement should
modernization and diversification of agriculture while            also be given to the formation of groups having as their
remaining consistent with the measures taken to limit             purpose mutual aid between holdings, including the use
surplus production;                                               of new technologies and practices for safeguarding and
                                                                  improving the environment and preserving the
                                                                  countryside and to the formation of groups which would
Whereas, in order to qualify for Community investment             introduce alternative farming practice such as organic
aid, a farmer must normally practise farming as his main          techniques, integrated        crop-protection  techniques,
 ---pagebreak--- No C 82/10                             Official Journal of the European Communities                                  27. 3. 91
extensive techniques or a more rational joint use of agri-       production and for land improvement and capital
cultural means of production, or group farming oper-             equipment for pasture and hill grazing;
ations;
                                                                 Whereas farmers in areas that are sensitive from the
                                                                 point of view of protection of the environment or preser-
Whereas in the same context it is also necessary to              vation of the landscape are in a position to perform a
encourage the creation of agricultural associations whose        valuable service to society as a whole; whereas the intro-
objective is the establishment of replacement and                 duction of specific measures may encourage farmers to
management services;                                              introduce or retain agricultural production practices that
                                                                  are compatible with the increased need to protect or
                                                                  preserve the countryside and at the same time help,
                                                                  by means of reorientation of their holdings, towards
Whereas, on the basis of Directive 75/268/EEC of 28               realization of the agricultural policy objective of
April 1975 on mountain and hill farming and farming in            restoring balance on the market in certain products;
certain less-favoured areas ('), as last amended by Regu-
lation (EEC) No 797/85, the Council has adopted the
Community lists of mountain and certain less-favoured
areas, for which special measures adapted to their               Whereas the market situation for agricultural products,
situation should be enacted at Community level, in                and the limitations for the adjustment of farm structures
particular in order to take account of the natural                resulting therefrom, require that the agricultural
conditions of production and to ensure reasonable                 measures be complemented by special forestry measures
incomes for farmers in these regions;                             to assist these holdings, such as the afforestation of farm
                                                                  land and improving the exploitation of wooded areas;
Whereas it may be essential, if the objectives assigned to        Whereas an annual premium per hectare afforested, to
farming in less-favoured regions are to be attained, that         compensate for the loss of income due to the affor-
farmers permanently engaged in agriculture in such areas          estation of agricultural land, may encourage farmers to
be paid annual allowances aimed at compensating for the           afforest such land;
permanent natural handicaps referred to in Directive
75/268/EEC; whereas it should be left to Member States
to fix the amount of such allowances according to the
severity of the handicaps involved and taking account of          Whereas it should be for the Member States to lay down
the economic situation and farmers' incomes within the            the conditions governing the afforestation of agricultural
limits and conditions fixed for the different types of            land,
areas, both as to the amounts which may be paid and the
types of production which may be covered;
                                                                  Whereas the forestry measures are normally linked and
                                                                  can contribute
Whereas, in order to reduce the drawbacks both in terms
of markets and the environment, the allowance should be
granted for only 1,4 livestock units (LU) per hectare of
                                                                  — to the conservation and improvement of the soil, the
the total forage area of the holding; whereas in addition,
                                                                      fauna and flora and to the surface and underground
as regards the maximum amount of Community aid per
                                                                      water systems,
holding, the administrative difficulties should be
overcome by replacing the existing scheme by a simpler
one designed to concentrate the Community's efforts on
those holdings which are in greatest need, that is, the           — to the productivity of agricultural land by an
Community contribution would be restricted to the equi-               improvement of the natural conditions of agricultural
valent of 120 units, be they livestock units or area units;           production and to better use of farm labour;
                                                                  Whereas the evolution and the specialization of agri-
Whereas the rationalization of holdings and the need to           culture require a substantial improvement in the standard
preserve the countryside necessitate the granting of aid          of the general, technical and economic training for the
for joint investment schemes in the areas covered by the          existing farm population, especially as regards new
compensatory allowance in particular for fodder                   orientations of management, of production, or of
                                                                  marketing, as well as for young people about to be
(') OJ No L 128, 19. 5. 1975, p. 1.                               installed or recently installed on a holding;
 ---pagebreak---   27. 3. 91                             Official Journal of the European Communities                                 No C 82/11
 Whereas the insufficient financial means available for               (i) to help restore the balance between production and
 vocational training and further training, and, in                          market capacity;
  particular, that of the leaders and managers of cooper-
  atives and agricultural groups, impedes the structural
  adjustment of agriculture in many regions;                        (ii) to help improve the efficiency of farms by
                                                                           developing and reorganizing their structures and by
                                                                           promoting supplementary activities;
 Whereas, in accordance with the principles of the reform
 of the Structural Funds, and in particular with Articles 5
 and 11 of Regulation (EEC) No 2052/88, the EAGGF                  (iii) to maintain a viable agricultural community and
 co-finances national aid schemes by reimbursing expen-                    thus help develop the social fabric of rural areas by
 diture incurred by Member States; whereas the rate of                     ensuring a fair standard of living for farmers and by
 Community part-financing may be differentiated on the                     offsetting the effects of natural handicaps in
 basis of the criteria and within the limits laid down in                  mountain areas and less-favoured areas;
 Article 13 of the said Regulation; whereas these rates are
 to be determined by the Commission;
                                                                   (iv) to contribute to the safeguarding of the environment
                                                                           and the preservation of the countryside, including
 Whereas, although the scheme for set-aside falls within                   the long-term conservation of natural farming
 the common measure for improving the efficiency of                       resources.
 agricultural structures, its main aim is nonetheless to help
 in re-establishing the balance between output and the
 market's capacity to absorb it; whereas the scheme is
                                                                   2.       In accordance with Articles 5 (2) (b) and 11 (4) of
 thus intended to supplement measures adopted by the
                                                                   Regulation (EEC) No 2052/88, the EAGGF, hereinafter
 Council under the various market organizations in order
                                                                  called 'the Fund', Guidance Section, shall, acting under
 to stabilize those markets; whereas it should therefore be
                                                                  the common measure referred to in paragraph 1, provide
 laid down that the scheme for set-aside is to be financed
                                                                  part-financing for national aid schemes by reimbursing,
 in equal pans from the Guarantee and Guidance
                                                                  on the terms laid down in Title X, expenditure incurred
 Sections of the EAGGF; whereas, however, in order to
                                                                  by the Member States on:
 facilitate the administrative and financial management of
 the scheme and by way of exception, the financial
 methods applying to the Guarantee Section should be
 applied for expenditure financed by the Guidance                 (a) schemes designed to encourage the conversion and
 Section;                                                                extensification of production;
                                                                  (b) measures relating to investments in agricultural
Whereas,       for    the    purposes    of    administrative
                                                                         holdings, in particular to reduce production costs, to
management. Member States should be authorized to lay
                                                                         improve the living and working conditions of
down additional conditions for the execution of the
                                                                       , farmers, to promote the diversification of their
measures provided for in this Regulation;
                                                                         activities, including the marketing of products on the
                                                                         farm, and to preserve and improve the natural envi-
                                                                         ronment;
Whereas to facilitate structural change in the agricultural
sector in the territory of the former German Democratic
Republic, involving both the creation of family farms and
                                                                  (c) measures to encourage the setting-up of young
the reorganization of cooperative farms, provision must
                                                                         farmers;
be made for some temporary adjustments to the rules on
the acceleration of structural adjustment in the context
of the reform of the common agricultural policy,
                                                                  (d) back-up measures to assist agricultural holdings,
                                                                         involving the introduction of accounts and the
                                                                         launching of groups, services and facilities for the
HAS ADOPTED THIS REGULATION:                                             benefit of serveral holdings;
                           Article 1                              (e) measures to support farm incomes and to maintain
                                                                         viable agricultural communities in mountain or less-
1.     With a view to expediting the adjustment of agri-                 favoured areas by means of agricultural aid for
cultural structures in the Community pursuant to                         offsetting natural handicaps;
Objective 5 (a) as set out in Article 1 of Regulation
(EEC) No 2052/88, a common measure within the
meaning of Article 2 (1) of Regulation (EEC) No                  (f) measures to protect the environment and safeguard
4256/88, to be implemented by the Member States, is                     the countryside by encouraging appropriate farming
hereby introduced with the following objectives:                        methods;
 ---pagebreak--- No C 82/12                             Official Journal of the European Communities                                   27. 3. 91
(g) forestry measures to assist agricultural holdings;            (b) growing lentils, chick-peas and vetches.
(h) vocational training projects connected with          the     4.       Member States may provide for a specific aid
     measures referred to in paragraphs (a) to (d).               scheme for the use of arable land for non-food purposes,
                                                                 these being the manufacture, within the Community, of
                                                                 products not intended for human or for animal
In accordance with Title X, the Guarantee and                     consumption.
Guidance Sections of the EAGGF shall contribute
equally, under the common measure referred to in
paragraph 1, towards measures linked with the scheme
                                                                 The following shall be eligible under the aid scheme:
to encourage the set-aside of arable land. In the case of
the share of expenditure financed by the Guidance
Section, the financial rules for the application of the          — recipients under the aid scheme provided for in
common measure shall, by way of exception, be those                    paragraph 1 on condition that the arable land set
which apply to the Guarantee Section.                                  aside represents at least 30 °/o of the arable land of
                                                                       the holding in question,
                           TITLE I
                                                                  — arable land on the holding which is the subject of a
                   Set-aside of arable land                            set-aside undertaking, extending to at most 50 % of
                                                                       the area set aside and on condition that it is sown to
                                                                       cereals, and that the whole cereal production of such
                           Article 2                                    areas is intended for non-food purposes.
 1.    Member States shall introduce an aid scheme
designed to encourage the set-aside of arable land.
                                                                  Producers may not qualify for the specific aid unless
                                                                  they submit a contract concluded with a processing
2.     Aid for set-aside may be granted for all arable land,      enterprise guaranteeing the non-food use of the products
irrespective of the crops grown, provided that the land           in question within the Community.
has in fact been cultivated for a reference period to be
determined. Land growing crops not covered by a
common market organization is excluded from the said              Should a group of farmers arrange to supply a single
scheme.                                                           processing enterprise on a contract basis, and on
                                                                  condition that the arable land withdrawn from
                                                                  production representats at least 40 % of the total arable
 3.    The arable land withdrawn from production        must      land and jointly fulfils the requirement provided for in
represent at least 20 % of the arable land referred    to in      the second indent of the second subparagraph, this
paragraph 2 on the farm concerned. For a period        of at      additional 20 % or more, as compared with the
 least five years, with the possibility of termination  after     minimum percentage provided for in the first
three years, such land must be withdrawn from          culti-     subparagraph of paragraph 3, may be respected by the
vation, that is:                                                  group as a whole rather than by the individual farms.
— left fallow with rotation possibilities,
                                                                  Contracts relating to consignments which qualify for the
                                                                  production refund provided for in Article 11a of Regu-
     wooded, or                                                    lation (EEC) No 2727/75 or the aid provided for in
                                                                  Article l i b thereof shall not be eligible for the specific
                                                                   aid.
 — used for non-agricultural purposes.
                                                                  The specific aid shall be paid for the duration of the
 Member States shall take the necessary measures to keep           contract, up to a maximum period of five years from the
 the land in good agricultural condition. These measures           first supply of products to the processor in accordance
 may include an obligation on the farmer to ensure that           with the delivery contract.
 the agricultural land withdrawn from production is
 maintained with a view to protecting the environment
 and natural resources.
                                                                   One year after the effective implementation of the
                                                                   scheme by the Member States, the Commission will
                                                                   forward a report to the European Parliament and the
 Member States may, within all or some of their territory,
                                                                   Council. At this time, if it is deemed necessary, the
 authorize the use of set-aside arable land for:
                                                                   Commission will make a proposal to modify the scheme
                                                                   in order to increase its efficiency, taking into account the
 (a) grazing for extensive live-stock farming;                     response of farmers and processing enterprises, the
 ---pagebreak--- 27. 3. 91                               Official Journal of the European Communities                               No C 82/13
economic viability and environmental impact of the                Detailed rules for applying this exemption shall be
scheme, possible control problems, in particular, with            adopted in accordance with the procedure laid down in
regard to by-products, and any other relevant aspect. At          Articles 4 and 4b of Regulation (EEC) No 2727/75.
the same time the Commission, in the light of the results
of the demonstration projects, will examine the possi-
bility of extending the scheme to products other than              8.    The Commission, acting in accordance with the
cereals.                                                          procedure laid down in Article 30, shall adopt detailed
                                                                  rules for applying this Title, specifying in particular:
5.     Member States shall determine:
                                                                  — the minimum area to be set aside,
(a) the amount of the aid to be paid per hectare of land
     set aside, on the basis of the loss of income resulting
     from the land being set aside, whilst ensuring that          — in the case of authorization so provided for in the
     the amount of the aid is sufficient to make it                    third subparagraph of paragraph 3, the maximum
     effective, on the one hand, and that it does not                  stocking rate per hectare of grazing and the rate by
     provide excessive compensation, on the other. They                which the aid is to be reduced in accordance with the
     shall also determine the way in which that aid is to              second subparagraph of paragraph 5 (a),
     be paid. The maximum amount of aid to be paid
     shall be set at ECU 606 per hectare, per annum, and
     the minimum amount shall be set at ECU 100 per               — the criteria to be complied with by the Member
     hectare, per annum. The Commission can, in excep-                 States when fixing the aid,
     tional cases in accordance with the procedure laid
     down in Article 30, set the maximum amount at
     ECU 700 per hectare, per annum.                              — the criteria for defining the beneficiary and for deter-
                                                                       mining the reference period referred to in paragraph
     In the case of authorization, as provided for in the              2,
     third subparagraph of paragraph 3, the amount of
     the aid shall be adjusted to take account of the
                                                                  — the special detailed rules on the granting of the
     reduction in the loss of income.
                                                                       specific aid provided for in paragraph 4, and in
     The specific aid provided for in paragraph 4 to be                particular those on the exclusion of certain uses, the
     paid per hectare shall be determined in accordance                limitations to be imposed with regard to by-products,
     with the criteria laid down in the first subparagraph.            the determination of the ceiling and the minimum
     The maximum amount shall be fixed at 70 % of the                  areas which may qualify for the aid, delivery
     aid provided for in the first subparagraph. For the               contracts, controls including, where appropriate,
     areas in question, the specific aid shall replace aid             checks on the processing undertaking, and penalties
                                                                       to be laid down where obligations are not complied
     for set-aside;
                                                                       with.
(b) the reference period referred to in paragraph 2;
 (c) the undertaking to be given by the beneficiary for            9.     Member States shall take the necesssary measures
     the purposes in particular of verifying that,                 to ensure that adequate publicity is given to the oppor-
     throughout the entire farm, the area farmed has in            tunities afforded by the aid scheme.
     fact been reduced.
6.     Producers who, for the land set aside, receive aid                                     TITLE II
within the meaning of this Title may not receive aid
within the meaning of Titles II or III for such land.                              Extensification of production
 7.    Producers who set aside at least 30 % of their
                                                                                              Article 3
 arable land shall be exempted, in respect of a quantity of
 20 tonnes, from the co-responsibility levy referred to in         1.     Member States shall introduce an aid scheme to
Article 4 of Regulation (EEC) No 2727/75 and from the              promote extensification for surplus products. Surplus
 additional co-responsibility levy provided for in Article         products shall be defined as products for which there are
 4b (2) of Regulation (EEC) No 2727/75.                            consistently, at Community level, no normal unsub-
                                                                   sidized outlets.
An individual farmer, as well as a group of farmers,
qualifying for the specific aid provided for in paragraph
4, withdrawing at least 40 % of arable land from                   2.     Extensification shall be defined as a reduction of at
production for set-aside purposes, shall benefit from              least 20 %, for a period of a least five years, in the
exemption from the co-responsibility levies for the entire         output of the product concerned without any increase in
volume of cereals supplied to the processing enterprises.          other surplus production capacity. However, such an
This exemption does not preclude the possible exemption            increase shall be permitted in proportion to any increase
referred to in the first subparagraph.                             in the utilized agricultural area of the farm.
 ---pagebreak--- No C 82/14                             Official Journal of the European Communities                                  27. 3. 91
3.     Member States shall determine:                            3.    Producers who receive within the meaning of this
                                                                 Title may not receive aid within the meaning of Titles I
(a) the conditions for granting the aid, including those
                                                                 or II for the land in question.
     for reducing output of the various products. In the
     case of beef and veal, it may be stipulated that, in
     order to achieve the reduction in output referred to        4.    The Commission, acting in accordance with the
     in paragraph 2, the number of livestock units must be       procedure laid down in Article 30, shall adopt detailed
     reduced by at least 20 %. In the case of wine, it may       rules for applying this Title.
     be stipulated that the yield per hectare must be
     reduced by at least 20 % ;
(b) the amount of the aid, on the basis of the under-                                        TITLE IV
     taking given by the beneficiary and the loss of
     income incurred, and the way in which it is to be             System of aid for investments in agricultural holdings
     paid;
(c) the reference period for the product concerned, for                                      Article 5
     the purposes of calculating the reduction;
                                                                  1.   In order to contribute to the improvement of agri-
(d) the undertaking to be given by the beneficiary for           cultural incomes and of living, working and production
     the purposes of, in particular, verifying that              conditions on agricultural holdings, Member States shall,
     production has in fact been reduced.                        pursuant to the common measure referred to in Article 1,
                                                                 introduce a system of investment aid to agricultural
4.     Where the scheme is applied in the milk sector, the       holdings where the farmer:
reduction in output shall be calculated on the basis of the
reference quantity allocated under Council Regulation
(EEC) No 804/68 of 27 June 1968 on the common                    (a) practises farming as his main occupation.
organization of the market in milk and milk products (').
Reference quantities suspended pursuant to this                       Member States may, however, apply the aid scheme
paragraph may not be reused or reallocated for the                   referred to in Articles 5 to 9 to farmers who, while
duration of the suspension.                                          they do not practise farming as their main occu-
                                                                     pation, derive at least 50 % of their total income
The eligible amount of the compensation paid under
                                                                     from farming, forestry, tourism or craft activities or
Council Regulation (EEC) No 775/87 of 16 March 1987
                                                                      activities for maintaining the countryside which
temporarily withdrawing a proportion of the reference
                                                                     qualify for public aid, carried out on the holding,
quantities mentioned in Article 5c (1) of Regulation
                                                                     provided that the proportion of income deriving
(EEC) No 804/68 (2) shall be deducted from the eligible
                                                                     directly from farming on the holding is not less than
amount of the aid.
                                                                     25 % of the farmer's total income and that off-farm
5.     Products who receive aid within the meaning of                activities do not account for more than half the
this Title may not receive aid within the meaning of                 farmer's total working time;
Titles I or III for the land affected by extensification.
6.     The Commission, acting in      accordance with the        (b) possesses      adequate       occupational  skill    and
procedure laid down in Article        30, shall lay down             competence;
detailed rules for applying this       Title, specifying in
particular the maximum amounts       of yearly aid eligible      (c) submits a plan for materially improving his holding.
under the Fund.                                                      This plan must show by means of specific calcu-
                                                                     lations that the investments are justified from the
                         TITLE III                                   point of view of the situation of the holding and its
                                                                      economy and that implementation of the plan will
                 Conversion of production                            bring about a lasting improvement of that situation,
                          Article 4                                   and in particular of the labour income per man-work
                                                                      (MWU) employed on the holding, or is necessary for
1.     Member States shall introduce an aid scheme                    maintaining the present level of labour income per
designed to encourage the conversion of production                    MWU.
towards non-surplus products.
2.     The Council, acting on a proposal from the                (d) undertakes to keep simplified accounts entailing at
Commission by a qualified majority, shall adopt a list of            least:
products towards which production may be converted
and shall lay down the conditions and procedures for the
granting of the aid.                                                 — the recording of the revenue and expenditure of
                                                                          the holding, with supporting documents,
(') OJ No L 148, 28. 6. 1968, p. 13.                                 — the drawing up of an annual balance sheet of the
(2) OJ No L 78, 20. 3. 1987. p. 5.                                        assets and liabilities of the holding.
 ---pagebreak--- 27. 3. 91                              Official Journal of the European Communities                            No C 82/15
However, in the less-favoured areas determined in                competence of the farmer, by reference to the standard
accordance with Articles 2 and 3 of Directive                    of agricultural training received and/or to a minimum
75/268/EEC, Spain, Greece and Italy, as regards the              period of farming experience.
Mezzogiorno including the islands, and Portugal, as
regards its entire territory, shall be authorized to accept
improvement plans submitted until 31 December 1991 by                                      Article 6
holdings which do not satisfy the condition laid down in
                                                                  1.   The aid scheme referred to in Article 5 may be
this point, provided that the volume of work on the
                                                                 applicable to investments relating to:
holding does not require more than the equivalent of one
MWU, and that projected investments do not exceed
ECU 25 000.                                                      — the qualitative improvement and conversion            of
                                                                     production in line with market requirements,
2.    The aid system referred to in paragraph 1 shall be
limited to agricultural holdings:                                — the diversification of activities on the holding, in
                                                                     particular by the introduction of tourism and craft
— where labour income per MWU is less than the                       activities or the manufacture and sale of farm
    reference income referred to in paragraph 3,                     produce on the farm,
— where improvement plans, as referred to in paragraph           — the adaptation of the holding for the purposes of
     1 (c), do not provide for a labour income in excess of          reducing production costs and saving energy,
     120 % of such reference income.
                                                                 — the improvement of living and working conditions,
Member States may restrict the aid system referred to in
paragraph 1 to agricultural holdings which have a family
character.                                                       — the improvement of the hygiene conditions of
                                                                     livestock enterprises and compliance with Community
                                                                     animal welfare standards, or, failing these, national
3.     Member States shall fix the reference income
                                                                     standards until Community standards are adopted,
referred to in paragraph 2 at a level not exceeding the
average gross wage of non-agricultural workers in the
region.                                                          — the protection and improvement of the environment.
4.    The improvement plan referred to in paragraph 1            2.    The investment aid referred to in paragraph 1 may
shall contain at least:                                          be refused or limited where the effect of the investments
                                                                 concerned is to increase the holding's production of
— a description of the initial situation,                        products for which no normal market outlets can be
                                                                 found.
— a description of the situation upon completion of the
    plan, drawn up on the basis of an estimative budget,
                                                                 The Council, acting on a proposal from the Commission
                                                                 by a qualified majority, shall adopt the necessary
— an indication of the measures and in particular the
                                                                 measures and shall define the products falling within the
    investments planned.
                                                                 meaning of the preceding subparagraph.
5.     Member States shall, for the purposes of this Regu-
lation, define what is meant by the expression 'farmer           3.    Except where decisions subsequently            taken
practising farming as his main occupation'.                      pursuant to paragraph 2 provide otherwise, the aid
                                                                 provided for in paragraph 1 shall not be granted in
This definition shall, in the case of a natural person,          respect of investments relating to milk production the
include at least the condition that the proportion of            effect of which is to exceed the reference quantity
income derived from the agricultural holding must be             determined in accordance with rules on the additional
                                                                 levy for milk and milk products, unless an additional
50 % or more of the farmer's total income and that the
                                                                 reference quantity has been granted beforehand as
working time devoted to work unconnected with the
                                                                 provided for in Article 4 (1) (c) of Council Regulation
holding must be less than half of the farmer's total
                                                                  (EEC) No 857/84 (') or obtained by means of a transfer
working time.
                                                                 in accordance with Article 7 (1) of that Regulation.
On the basis of the criteria referred to in the foregoing
subparagraph, the Member States shall define what is             In such cases, the granting of aid shall be subject to the
meant by this same expression in the case of persons             condition that the investment does not serve to raise the
other than natural persons.                                      number of dairy cows to more than 40 per MWU and
                                                                 more than 60 per holding or, where the holding has
6.     In addition, Member States shall lay down the
criteria for assessing the occupational skill and                (') OJ No L 90, 1. 4. 1984, p. 13.
 ---pagebreak--- N o C 82/16                            Official Journal of the European Communities                                  27. 3. 91
more than 1,5 MWU, does not serve to raise the number            However, until 31 December 1991, this limit of three
of dairy cows by more than 15 %.                                 LSUs shall not be applied when evidence is adduced that
                                                                 there is no proposal to increase production capacity.
                                                                 Before 31 December 1991, the Commission shall
On a proposal from the Commission, the Council shall             examine the application of this provision and submit a
adopt, at the latest six months after the expiry of Regu-        report to the Council.
lation (EEC) No 857/84, the conditions to which the
granting of aid to investments entailing an increase in
milk production shall be subject after the said Regulation       6.    The investment aid referred to in paragraph 1 may
expires.                                                         not be granted in the egg and poultry sector.
                                                                                           Article 7
4.    Except where decisions subsequently             taken
pursuant to paragraph 2 provide otherwise, the aid                1.   The system of aid for investments referred to in
provided for in paragraph 1 granted for investments              Article 6 (1) shall cover aid in the form of capital grants
relating to the pig production sector the effect of which        or the equivalent thereof in interest rate subsidies or
is to increase production capacity shall be restricted, as       deferred repayments, or a combination of these, in
regards requests submitted before 1 January 1987, to             respect of the investments necessary to carry out the
investments serving to reach 500 places for fattening pigs       improvement plan but with the exception of expenditure
per holding, and as regards requests submitted between 1         incurred in buying:
January 1987 and 31 March 1988, to investments serving
to reach 400 places.                                             — land,
As regards applications submitted after 31 March 1988            — livestock in the form of pigs, poultry and calves for
and before 1 January 1991, the number of pig places that             slaughter.
may be achieved and be eligible for the aid referred to in
paragraph 1 shall be 300 places per holding. In addition,        With regard to the purchase of livestock, only the first
the granting of aid shall be subject to the conditions that      purchase for which provision is made in the improvement
the total number of pig places after realization of the          plan may be covered.
investment does not exceed 800 places per holding.
                                                                 The system of aid may also cover guarantees for loans
                                                                 contracted and the interest thereon, where the security
The place required by one breeding sow shall be deemed           or personal guarantee provided is insufficient.
to correspond to 6,5 fattening pig places.
                                                                 2.    Capital grants as provided for in paragraph 1 may
The Council, acting on a proposal from the Commission            apply to a total investment of ECU 60 606 per MWU or
by a qualified majority, shall not later than 31 December        ECU 121 212 per holding. Member States may set these
1990 adopt the arrangements applicable to requests made          limits at lower levels.
as from 1 January 1991.
                                                                 The value of the aid provided for in paragraph 1,
                                                                 expressed as a percentage of the amount of the
If the Council has not taken a decision by that date, the        investment, shall not exceed:
granting of investment aid having the effect of increasing
pig production capacity shall be suspended.
                                                                 (a) in the case of the areas referred to in Articles 2 and 3
                                                                      of Directive 75/268/EEC:
Furthermore, where an improvement plan provides for
investment in the pig production sector, the granting of             — 45 % for fixed assets,
aid in respect of such an investment shall be subject to
the condition that, upon completion of the plan, at least            — 30 % for other types of investments;
the equivalent of 35 % of the quantity of feed consumed
by pigs can be produced on the holding.
                                                                 (b) in the case of other areas:
5.    Save where decisions subsequently taken pursuant               — 35 % for fixed assets,
to paragraph 2 provide otherwise, aid as provided for in
paragraph 1 and granted for investments relating to the              — 20 % for other types of investment.
beef sector, other than aid for safeguarding the envi-
ronment, shall be restricted to livestock enterprises where      Where the aid is not granted in the form of a capital
the beefcattle stocking rate does not, at the end of the         grant, Member States shall draw up each year a table
plan, exceed three livestock units (LSU) per hectare of          showing the value of the aid, expressed as a percentage
total forage area used for feeding the cattle; the LSU           of the amount of the investment, taking into
conversion table is given in the Annex I.                        consideration the average annual rate of interest on
 ---pagebreak--- 17. 3. 91                             Official Journal of the European Communities                            N o C 82/17
non-subsidized loans, the value of the interest subsidy,        However, these ceilings may not exceed:
the term of the loans, deferred interest subsidies and
repayments and any other factor used for expressing the
aid in grant equivalent terms.                                  — 120 cows,
The Council, acting on a proposal from the Commission           — three times the number of pig places resulting from
by a qualified majority, may authorize a Member State,               the application of Article 6 (4),
for a specified period, to grant aid exceeding the level
specified in the preceding subparagraph, if such action is
warranted by the situation on the capital market in that        — ECU 363 636 of investment ( l )
Member State.
                                                                per group-operated holding, including any parts of
                                                                holdings which continue to be run by the group
However, until 31 December 1991, the value of the
                                                                members.
maximum aid referred to in the second subparagraph
 shall be increased by 10 % of the amount of the
investments in Spain, Greece, Ireland, Italy and Portugal
for investments shown in the improvement plans                  5.     In accordance with the procedure laid down in
submitted by that date.                                         Article 30, the Commission may authorize a Member
                                                                State to grant the aid referred to in Article 7, under the
                                                                conditions stipulated in paragraph 4 above, to agri-
                                                                cultural cooperatives whose sole objective is to manage
                         Article 8                              an agricultural holding. At the same time, the
                                                                Commission shall lay down specific conditions for the
 Member States may grant the aid referred to in Article 7       granting of aid to such cooperatives, as well as the
to farmers who, after completing an improvement plan,           conditions under which and the limits within which the
continue to fulfil the conditions laid down in Article 5        volume of investment provided for in paragraph 4 may
 (1), provided that the conditions laid down in Article 6       be exceeded.
are met. However, the number of plans per beneficiary
which may be accepted during a six-year period shall be
limited to two and the total investment which may be
considered in connection with reimbursement of aid              6.     Member States shall lay down the conditions to be
pursuant to Article 33 shall be limited to ECU 60 606 per       met by group-operated holdings, in particular:
MWU and ECU 121 212 per holding for that period.
                                                                — their legal form,
                         Article 9
                                                                — their minimum duration, which must not be less than
 1.    An improvement plan within the meaning of Article            six years,
5 (1) (c) may relate to an individual holding or to a
number of holdings grouped together with a view to the
merger of all or part of these holdings.                        — the formation of their capital,
2.     In the case of group-operated holdings, the              — the participation of members in management.
improvement plan shall concern the group-operated
holding and any parts of holdings which continue to be
run by the group members.                                                                  Article 10
                                                                1.     Member States may grant setting-up aid to young
                                                                farmers under 40 years of age on condition that:
3.     Member States may grant the aid referred to in
Article 7 to group-operated holdings if all the members
of such holdings satisfy the conditions laid down in            — the young farmer sets up as head of the holding,
Article 5 (1).                                                      which means that he assumes civil and tax liability or
                                                                    joint liability for the management of the holding and
                                                                    the social status accorded in the Member State
4.     Except for aquaculture, the ceilings laid down in            concerned to self-employed heads of holding,
Articles 7 (2) and 8 may be multiplied by the number of
holdings belonging to the group. The ceilings laid down
in Article 6 (3) and (4) may only be multiplied by the
number of such holdings in the case of a holding                (') Amount adapted according to the increase from ECU
resulting from a complete merger.                                   120 000 to ECU 121 212 (Regulation (EEC) No 2156/89).
 ---pagebreak--- No C 82/18                              Official Journal of the European Communities                                 27. 3. 91
— the young farmer sets up as a farmer practising                                           Article 11
   farming as his main occupation or begins, after
                                                                   Member States may grant young farmers under 40 years
   having set up as a part-time farmer, to practise
                                                                  of age additional aid for investments to be made under a
   farming as his main occupation,
                                                                   material improvement plan within the meaning of Article
                                                                   5 (1) (c), amounting to a maximum of 25 % of the aid
— the occupational qualifications of the young farmer              granted pursuant to Article 7 (2), provided that the
    are at a satisfactory level at the time of his setting up     young farmer submits the improvement plan within five
    or at the latest two years thereafter, and                    years of setting up and provided that he possesses the
                                                                   occupational qualifications referred to in Article 10 (1).
— the holding requires a volume of work equivalent to
    at least one MWU, which must be achieved at the                                         Article 12
    latest two years after the setting up.
                                                                   1.    Aid for investments in agricultural holdings
                                                                   satisfying the conditions laid down in Articles 5 and 9
2.    The setting-up aid may comprise:                             which exceeds the amounts laid down in Article 7 (2)
                                                                   increased, where appropriate, by the aid referred to in
                                                                   Article 11, are hereby prohibited, with the exception of
(a) a single premium of a maximum eligible amount of               aid:
     ECU 10 000. The premium may be paid over a
     period not exceeding five years. Member States may
                                                                   — for the construction of farm buildings,
     replace the premium by an equivalent interest
     subsidy;
                                                                   — for the relocation of farm buildings where this is
                                                                        done in the public interest,
(b) an interest subsidy on loans taken out with a view to
     covering the costs arising from setting up.
                                                                   — for land improvement operations,
     The rate of interest subsidy shall be not more than           — for investments for the purposes of environmental
     5 % for a period of 15 years; the capitalized value of             protection and improvement,
     the interest subsidy may not exceed ECU 10 000.
                                                                   provided that the granting of these higher amounts does
     Member States may pay, in the form of a grant, the            not infringe the provisions of Article 6 of this Regulation
     equivalent of the interest subsidy resulting from the         and Articles 92 to 94 of the Treaty.
     volume and duration of the loans taken out.
                                                                   2.     Where Member States grant aid for investments in
3.     Member States shall define:                                 holdings which do not satisfy the conditions laid down in
                                                                   Article 5, such aid must be at least one-quarter less than
                                                                   the aid granted pursuant to Article 7, with the exception
— the conditions governing setting up,                             of aid for:
— specific conditions in a situation where a young                 — energy saving,
     farmer does not set up as sole head of the holding, in
     particular where he sets up as a member of an asso-           — land improvement,
     ciation or cooperative whose principal object is the
     management of an agricultural holding; these
                                                                    which may reach the amounts laid down in Article 7 (2).
     conditions must be equivalent to those required for
     setting up as a sole head of a holding,
                                                                    Such aid may be granted for a total investment of ECU
                                                                    60 606 per MWU and ECU 121 212 per holding for a
— the agricultural training which a young farmer must               period of six years.
     have had at the time of his setting up, or must
     achieve within two years thereafter, in order for the
     premium to be eligible under the Fund,                         3.    Notwithstanding paragraph 2, Member States may
                                                                    grant temporary aid for investments in small agricultural
                                                                    holdings which do not satisfy the conditions laid down in
— the conditions under which it will be recognized that             Article 5 (1).
     the volume of work equivalent to at least one MWU
     has been achieved within the maximum time of two
     years after setting up,                                        This temporary aid may be granted for investments up to
                                                                    ECU 25 252 only and may not be granted on terms more
                                                                    favourable than those provided for in Article 7, plus,
— the amount of the setting-up aid.                                 where appropriate, the aid provided for in Article 11.
 ---pagebreak--- 17. 3. 91                             Official Journal of the European Communities                              No C 82/19
4.    Aid for investments in holdings shall be prohibited       spread over at least the first four years during which
where such investments do not satisfy the conditions laid       management accounts are kept on their holdings, on the
down in Article 6 and where Article 7 does not permit           understanding that accounts will be kept for at least four
the granting of such aid.                                       years.
However, the aid referred to in paragraphs 2 and 3 may          Member States shall determine the amount of such aid
be granted:                                                     within a range of ECU 700 to ECU 1 050.
— for investments in the sector of geese and ducks for          2.     The keeping of accounts referred to in paragraph 1
    the production of foie gras,                                shall:
— for the purchase of cattle which may be encouraged            (a) comprise:
    under Article 7(1), where it is not the first purchase.
                                                                     — the preparation of annual opening and closing
                                                                         valuations,
Moreover, as regards the holdings referred to in para-
graphs 2 and 3, the number of dairy cows referred to in              — the systematic and regular recording over the
Article 6 (3) shall be 40 per MWU and per holding.                       accounting year of the various transactions in
                                                                         cash or in kind concerning the holding;
5.    The prohibitions and limitations provided for in this
Article shall not apply to:                                      (b) conclude with the presentation each year of:
                                                                     — a description of the general characteristics of the
— aid for land purchase,                                                 holding, and in particular of the inputs,
                                                                     — a detailed balance sheet (assets and liabilities) and
— subsidized operating loans the term of which does                      trading account (expenditure and income),
    not exceed one marketing year,
                                                                     — the necessary data, including in particular the
— aid for the purchase of male breeding stock,                           earned income per MWU and the farmer's
                                                                         income, for assessing the efficiency of the
                                                                         management of the holding as a whole and the
— securities for loans contracted, including interest,                   profitability of the main enterprises of the
                                                                         holding.
— aid for investment in the protection and improvement
    of the environment, provided that it does not entail
                                                                3.     Where a holding is chosen by bodies appointed by
    an increase in production,
                                                                Member States for the collection of accountancy data for
                                                                the purposes of information and scientific study, in
— measures in respect of investments for the purpose of         particular within the framework of the Community
    improving hygienic conditions or of compliance with         accountancy data network, and the farmer is in receipt
    Community animal welfare standards, or national             of aid as provided for in paragraph 1, he must undertake
    standards where these are stricter from Community           to make available to those bodies, under conditions of
    standards, provided that these investments do not           anonymity, the accountancy data relating to his holding.
    give rise to an increase in production,
                                                                                          Article 14
provided that they are granted in accordance with
Articles 92 to 94 of the Treaty.                                 Member States may, on request, grant to recognized
                                                                groups which have as their object:
                          TITLE V
                                                                — mutual aid between holdings, including the use of
     Back-up measures to assist agricultural holdings                new technologies and practices for safeguarding and
                                                                     improving the environment and preserving the
                                                                     countryside,
                          Article 13
1.    Member States may introduce a scheme to                   — the introduction of alternative farming practices,
encourage the introduction of accounting on agricultural
holdings.                                                       — the more rational joint use of agricultural means of
                                                                     production,
The scheme shall involve granting to farmers whose main
occupation is farming, and who apply therefor, an aid           — the operation of a group holding,
 ---pagebreak--- No C 82/20                            Official Journal of the European Communities                                  27. 3. 91
and which are formed on or after 1 April 1985,                  2.      The aid referred to in paragraph 1 shall be granted
launching aid as a contribution to their operating costs        in respect of the work of staff responsible for analyzing
during not more than the first five years after their            accounting results and other data for the farmers.
formation.
                                                                 3.     To be eligible for the aid referred to in para-
Member States shall fix the amount of such aid by               graph 1, farm management services must be approved by
reference to the number of members and to the activity           the Member State and must employ on a full-time basis
performed jointly, with the maximum amount being                 at least one member of staff qualified for the work
ECU 15 000 per recognized group.                                 specified in paragraph 2.
In addition, Member States shall determine the legal
form of such groups and the provisions governing                 4.     Member States shall lay down the conditions for
cooperation between members.                                     the approval of services as referred to in paragraph 1,
                                                                 and in particular:
                         Article 15                             — their legal form,
 1.     Member States may, on request, grant launching
aid to contribute to covering the management costs of            — the provisions governing their management             and
agricultural associations having as their object the                  accounting practices,
provision of farm relief services.
                                                                 — their minimum duration, which must not be less than
                                                                      10 years,
2.      In order to be eligible for the aid referred to in
paragraph 1, the relief service must be approved by the
 Member States and employ at least one full-time worker          — the minimum number of affiliated farmers.
who is fully qualified for the work he is called upon to
perform.
                                                                 5.     Member States shall fix the amount of the
                                                                 launching aid referred to in paragraph 1, which shall not
 3.     Member States shall lay down the conditions for          exceed ECU 36 000 per member of staff employed on a
the approval of services as referred to in paragraph 1,          full-time basis in the work specified in paragraph 2. This
 and in particular:                                              amount shall be spread over the first five years of each
                                                                 member of staffs employment; it may be spread
— their legal form,                                              degressively over this period.
— the provisions governing their management             and      6.     Member States may replace the system of launching
     accounting practices,                                       aid provided for in paragraph 5 with a system of farm
                                                                 management aid for farmers practising farming as their
— the type of replacement, which may comprise the                main occupation who make use of the farm management
     replacement of the farmer, his spouse or an adult           services referred to in paragraph 1.
     worker,
                                                                 In this event, Member States shall set the aid up to a
 — their minimum duration, which must not be less than           maximum of ECU 500 to be spread over at least two
      10 years,                                                  years.
 — the minimum number of affiliated farmers.
                                                                                           TITLE VI
 4.     Member States shall fix the amount of the                 Specific measures to assist mountain and hill farming and
 launching aid referred to in paragraph 1, which shall not                   farming in certain less-favoured areas
 exceed ECU 12 000 per relief worker employed on a
 full-time basis in the work referred to in paragraph 2.
 This amount shall be spread over the first five years of                                  Article 17
 each worker's employment; it may be spread degressively
 over that period.                                                1.    In regions which appear on the Community list of
                                                                  less-favoured farming areas within the meaning of
                                                                  Directive 75/268/EEC, Member States may grant an
                         Article 16                               annual compensatory allowance to assist farming
                                                                  activities, such allowance to be fixed according to the
 1.     Member States may, on request, grant launching            permanent natural handicaps described in Article 3 of
 aid to contribute to covering the management costs of            that Directive within the limits and subject to the
 agricultural associations having as their object the             conditions laid down in Articles 18 and 19 of this Regu-
 provision of farm management services.                           lation.
 ---pagebreak--- 27. 3. 91                             Official Journal of the European Communities                              No C 82/21
2.     The granting of such a compensatory allowance                 conversion table for expressing cattle, equidae, sheep
which exceeds those limits or which fails to satisfy the             and goats as LSUs is given in the Annex I.
conditions laid down in Articles 18 and 19 shall be
prohibited in the areas appearing on the list in para-               However, in less-favoured agricultural areas where
graph 1.                                                             the permanent natural handicaps are serious enough
                                                                     to justify it, the total allowance granted may be
                                                                     increased to ECU 121,2 per LSU and per hectare.
                        Article 18
                                                                     The allowance shall be granted in respect of not
1.     Where Member States grant a compensatory                      more than 1,4 LSUs per hectare of the total forage
allowance, farmers with at least three hectares of usable            area of the holding.
agricultural area who undertake to pursue .a farming
activity in accordance with the aims of Article 1 of
Directive 75/268/EEC for at least five years from the                Cows whose milk is intended for marketing may be
first payment of a compensatory allowance shall be                   taken into consideration for the calculation of the
eligible for such an allowance; where a farmer gives up              compensatory allowance only in the areas defined in
farming and the area concerned continues to be worked,               Article 3 (3) of Directive 75/268/EEC, and in the
he may by released from such undertaking, he shall be                areas defined in Article 3 (4) and (5) of that
released from such undertaking in cases of force majeure,            Directive where dairying forms an important part of
for example where his property is compulsorily                       farming activity.
purchased or purchased in the public interest; in
addition, farmers in receipt of a retirement pension shall
                                                                     When Member States exercise this right in the areas
be released from such undertaking.
                                                                     defined in Article 3 (4) and (5) of the abovemen-
                                                                     tioned Directive, the number of dairy cows per
                                                                     eligible farmer to be taken into consideration for the
However, in the Mezzogiorno, including the islands, in               calculation of the compensatory allowance may not
the regions in the French overseas departements and in               exceed 20;
the Greek, Portuguese and Spanish regions, the
minimum utilized agricultural area per holding shall be
two hectares.                                                   (b) in the case of production other than of cattle,
                                                                     equines, sheep and goats, the allowance shall be
                                                                     proportional to the area farmed, less that devoted to
                                                                     the feeding of livestock and:
2.     Expenditure in respect of the compensatory
allowance shall not be eligible for reimbursement by the
Fund under Article 31 where the farmer is in receipt of a              (i) in all less-favoured agricultural areas, less that
retirement pension.                                                        given over to wheat growing:
                                                                           — except areas given over to the growing of
                                                                               durum wheat, in areas not being areas
3.     Member States may lay down additional or limiting                       referred to in Regulation (EEC) No
conditions for the grant of the compensatory allowance,                        3103/76 (1),
including conditions which encourage the use of
practices compatible with the need to safeguard the
environment and preserve the countryside.                                  — except areas given over to the growing of
                                                                               common wheat, in areas the average yield
                                                                               from which does not exceed 2,5 tonnes per
                                                                               hectare used for this product;
                        Article 19
1.     Member States shall fix the amounts of the                     (ii) in all less-favoured agricultural areas, less any
compensatory allowance according to the severity of the                    areas which are full plantations of apple, pear
permanent natural handicaps affecting farming activities                   or peach trees exceeding 0,5 hectares per
and having regard to the limits set out below, although                    holding,
no allowance may be less than ECU 20,3 per LSU or,
where appropriate, per hectare in the areas referred to in           (iii) in the less-favoured agricultural areas referred
Article 3 of Directive 75/268/EEC:                                         to in Article 3 (4) and (5) of Directive
                                                                           75/268/EEC less any areas assigned to the
                                                                           production of wine, apart from vineyards the
                                                                           yield from which does not exceed 20 hectolitres
(a) in the case of farms keeping cattle, sheep, goats or                   per hectare, or the production of sugarbeet or
     equidae, the allowance shall be calculated in relation                intensive crops.
     to livestock numbers. The allowance may not exceed
     ECU 102 per LSU. The total amount of the
     allowance granted may not exceed ECU 102 per
     hectare of total forage area of the holding. A             (') OJ No L 351, 21. 12. 1976, p. 1.
 ---pagebreak--- No C 82/22                             Official Journal of the European Communities                               27. 3.91
    The allowance may not exceed ECU 102 per                     exceed ECU 100 000 per joint investment project, ECU
     hectare. However in less-favoured agricultural areas         500 per hectare of pasture improved or equipped and
     in which the severity of the permanent natural              ECU 5 000 per hectare irrigated.
     handicaps is great enough so to justify, the total
     amount granted may be increased to ECU 121,2 per
     hectare.
                                                                                          TITLE VII
                                                                 Aid in areas sensitive as regards protection of the envi-
(c) Member States may vary the compensatory                         ronment and as regards safeguard of the countryside
     allowance on the basis of the economic situation of
     the holding and of the income of the farmer quali-
     fying for the compensatory allowance. The amount                                     Article 21
     of the allowance may also be adjusted in the light of
     the use of agricultural practices compatible with the       In order to contribute towards the introduction or the
     requirements for safeguarding the environment and           maintenance of farming practices compatible with the
     preserving the countryside; the benefit of any              requirements of the protection of the environment and of
     increases may not, however, be combined with the            natural resources or with the requirements of the main-
     aid referred to in Article 21.                              tenance of the landscape and the countryside, and thus
                                                                 to contribute to the adaptation and the guidance of agri-
                                                                 cultural production according to market needs, and
                                                                 having regard to agricultural income losses resulting
2.     Member States may refrain from granting the               from this, Member States may introduce a specific aid
compensatory allowance for some or all of the types of           scheme for areas which are particularly sensitive from
production which may qualify under paragraph 1 (b).              these points of view.
3.     The maximum amount eligible under the fund shall
be limited to the equivalent of 120 units per holding,                                    Article 22
whether livestock units or area units (ha); moreover,
                                                                 The aid scheme referred to in Article 21 shall consist of
beyond the equivalent of the first 60 units, the maximum
                                                                 an annual premium per hectare granted to farmers in the
amount eligible per LSU or hectare shall be reduced to
                                                                 areas referred to in Article 21 who undertake, under a
half the maximum amount of the allowance referred to
                                                                 specific programme for the area concerned, to introduce
in paragraph 1.
                                                                 or maintain, for at least five years, farming practices
                                                                 compatible with the requirements of the protection of the
                                                                 environment and of natural resources or with the
                          Article 20                             requirements of the maintenance of the landscape and of
                                                                 the countryside.
1.     In the areas referred to in Article 17 (1), Member
States may grant aid to joint investment schemes for
fodder production, including the storage and distribution
                                                                                          Article 23
of fodder, and for the improvement and equipping of
pastures which are farmed jointly and, in mountain               Member States shall determine the areas referred to in
areas, to joint or individual investment in water points, in     Article 21. In the light of the objective to be achieved,
minor roads for immediate access to pastures, including          they shall define those production practices compatible
mountain pastures, and in shelters for herds.                    with the requirements of the protection of the envi-
                                                                 ronment and of natural resources or with the
                                                                 requirements of the maintenance of the landscape and of
However, where stock-breeding constitutes a peripheral           the countryside. They shall also lay down rules and
activity in these areas, the aid provided for in the first       criteria to be complied with as regards production
subparagraph shall be extended to agricultural activities        practices referred to in Article 22, in particular with
other than stock-breeding.                                       regard to the maintenance or the reduction of the
                                                                 intensity of farming and/or the required density of
                                                                 livestock. They shall fix the amount and duration of the
2.     Where economically justified, the work referred to        premium, which must depend on the undertaking
in paragraph 1 may include small-scale farm water                entered into by the farmer under the programme.
supply measures compatible with protection of the envi-
ronment, including small-scale irrigation works, and the
construction or repair of shelters necessary for trans-
                                                                                          Article 24
humance.
                                                                 The maximum amount of the annual premium per
                                                                 hectare specified in Article 22 eligible under the Fund
3.    The amount of aid as referred to in paragraph 1            shall be ECU 150 per hectare covered by the under-
which is eligible for financing by the Fund may not              taking mentioned in Article 22.
 ---pagebreak--- 27. 3. 91                             Official Journal of the European Communities                             No C 82/23
                        TITLE VIII                                                         Article 26
        Forestry measures on agricultural holdings               1.    Member States may grant an annual premium per
                                                                hectare afforested to farmers who afforest agricultural
                                                                land and who do not receive the premium provided for
                         Article 25                             in Article 6 of Regulation (EEC) No 1096/88.
1.    Member States may grant aid for the afforestation
of agricultural land to farmers, including those receiving      2.     The maximum eligible amount of the annual
the aid provided for in Title 1 of this Regulation or the       premium referred to in paragraph 1 shall be ECU 150
aid provided for in Article 4 of Council Regulation             per hectare afforested per year.
(EEC) No 1096/88 of 25 April 1988 establishing a
Community scheme to encourage the cessation of                  The above amount shall be reduced to ECU 50 per
farming (').                                                    hectare if, and for as long as, aid under Title 1 is granted
                                                                for the same land.
Aid for afforestation may also be granted to any other
individual and to forestry associations or cooperatives or      The premium shall be payable for a maximum period of
other bodies which afforest agricultural land.                   20 years from the initial afforestation.
2.    Member States may grant aid to farmers fulfilling          3.    Member States shall fix the amount and duration of
the conditions of Article 5 (1) (a) for investments in          the annual premium in the light of the income lost and
woodland improvements such as the provision of shel-            the species or types of trees with which the land is
terbelts, firebreaks, waterpoints and forest roads.              afforested.
3.    The cost of adapting agricultural machinery for                                      Article 27
forestry work shall form part of the investments referred
to in paragraphs 1 and 2.                                        1.    Member States shall lay down the conditions for
                                                                 the afforestation of agricultural areas, which may in
                                                                 particular include conditions relating to the location and
4.    The   actual expenditure incurred by Member States         grouping of areas which may be afforested.
pursuant    to paragraphs 1 and 2 shall be eligible for
financing    from the Fund up to the maximum eligible
                                                                 2.    The communication of provisions implementing this
amounts    of:
                                                                Title under Article 29 shall include:
— ECU 1 819 per hectare for afforestation,                      — measures taken to determine afforestation conditions,
— ECU 700 per hectare for woodland improvements                 — measures taken to assess and control environmental
    and the provisions of shelterbelts,                              impact,
— ECU 1 400 per hectare for the renewal                and      — the accompanying measures taken or planned,
    improvement of woodland under cork oaks,
                                                                — the forestry plans or programmes with which affore-
— ECU 18 000 ECU per kilometre for forest roads,                     station is to comply.
— ECU 150 ECU per hectare provided with firebreaks                                         TITLE IX
    and waterpoints.
                                                                 Adjustment of vocational training to the requirements of
Upon reasoned request by a Member State and subject                                   modern agriculture
to budget availabilities, the Commission may, in
accordance with the procedure referred to in Article 30,                                   Article 28
decide to increase the maximum amounts for affore-
                                                                  1.   In so far as no provision is made for their financing
station, for woodland improvements and for the renewal
                                                                 in Regulation (EEC) No 4255/88 (2), Member States
and improvement of woodland under cork oaks up to
                                                                 may, in regions where the need is apparent and with a
maximum amounts of ECU 3 000, ECU 1 200 and ECU
                                                                 view to the smooth implementation of the relevant
3 000 respectively.
                                                                 measures, introduce a system of special aid for the
                                                                 improvement of the agricultural skills of persons covered
(l) OJ No L 110, 29. 4. 1988, p. 1.                              O OJ No L 374, 31. 12. 1988, p. 21.
 ---pagebreak--- No C 82/24                              Official Journal of the European Communities                                 27. 3. 91
by the measures referred to in Articles 3 and 5 to 16 and                                  TITLE X
young farmers under 40 years of age.
                                                                                General and financial provisions
                                                                                           Article 29
This system may comprise:
                                                                   1.    Member States shall forward to the Commission:
                                                                  — drafts of all laws, regulations or administrative
— courses of basic and advanced vocational instruction                provisions which they propose to adopt pursuant to
    or training for farmers, family helpers and agri-                 this Regulation, in particular those relating to Article
    cultural workers who have passed the minimum                       12,
    school-leaving age, and courses of additional training
    for such persons, intended to prepare them for quali-         — the texts of any existing provisions which may make
    tative reorientation of production; the application of            it possible to implement this Regulation.
    production practices compatible with protection of
    the landscape and acquisition of skills needed to
    enable them to manage their woodlands,                        2.    When submitting, pursuant to paragraph 1, drafts
                                                                  of laws, regulations or administrative provisions or the
                                                                  texts of existing provisions, Member States shall also
                                                                  submit an explanatory memorandum showing the
— courses of instruction or training for leaders and              relationship at regional level between the measure in
    managers of producer groups and cooperatives,                 question and economic and structural conditions in the
    where this is necessary to improve the economic               agricultural sector.
    organization of producers and the processing and
    marketing of agricultural products from the region
                                                                  3.    The Commission shall examine drafts forwarded in
    concerned,
                                                                  accordance with the first indent of paragraph 1 for the
                                                                  purpose of determining whether, having regard to the
                                                                  objectives of this Regulation and to the need for a
— the courses of further training needed to achieve the           proper connection between the various measures, such
    level of vocational training referred to in Article 10,       drafts comply with the Regulation and thus satisfy the
    which must be of a minimum length of 150 hours.               conditions for a financial contribution by the
                                                                  Community to the measure referred to in Article 1.
                                                                  Within two months of the receipt of any draft, the
2.    The system      referred    to in paragraph    1 shall      Commission shall, after consulting the Committee on
comprise aid:                                                     Agricultural Structures and Rural Development, issue an
                                                                  opinion thereon.
(a) for attendance at courses of instruction or training;         4.     Member States shall, on enactment of any law,
                                                                  regulation or administrative provision as referred to in
                                                                  paragraph 3, forward the text thereof to the
                                                                  Commission.
(b) for the organization and provision of courses of
     instruction and training.
                                                                                           Article 30
                                                                  With regard to provisions forwarded pursuant to the
                                                                   second indent of Article 29 (1) or to Article 29 (4), the
3.     The expenditure incurred by Member States in                Commission shall decide within two months of their
granting the aid referred to in paragraph 2 (a) and (b)           being forwarded, in accordance with the procedure laid
shall be eligible for assistance from the Fund up to a            down in Article 29 of Regulation (EEC) No 4253/88,
maximum amount of ECU 7 000 per person completing                 whether, in the light of their compliance with this Regu-
a course of instruction or training. Of this amount, ECU          lation and having regard to the objectives of this Regu-
2 500 must have been given for further courses on                 lation and to the need to ensure that the various
reorientation of production, with regard to production            measures are properly related, such provisions satisfy the
practices compatible with landscape protection and                conditions for a financial contribution by the
management of woodlands.                                          Community to the common measure referred to in
                                                                  Article 1.
The measures covered       by this Article shall not include                               Article 31
courses of instruction    or training, which form part of
normal programmes or       systems of agricultural education       1.    Expenditure incurred by Member States in
at secondary or higher     level.                                 connection with the measures provided for in Articles 3,
 ---pagebreak--- 27. 3. 91                               Official Journal of the European Communities                              No C 82/25
4, 6 to 11, 13 to 21, 26, 26 and 28 shall be eligible for         in the areas covered by this Regulation, with the
aid from the Fund. Expenditure incurred by the Member             exception of those covered by Articles 2, 6 to 9, 11, 12
States in connection with the measures provided for in             (2), (3) and (4) and 17 on terms differing from or in
Article 2 shall be eligible for aid from the Guarantee and        amounts exceeding the ceilings laid down in this Regu-
Guidance Section of the EAGGF.                                    lation, provided that Articles 92, 93 and 94 of the Treaty
                                                                   are not infringed.
2.    For the regions covered by Objective 1 as defined
in Article 1 of Regulation (EEC) No 2052/88, the                  2.     The provisions of Articles 92, 93 and 94 of the
Commission shall determine the rates of Community                 Treaty, with the exception of Article 92 (2), shall not
part-financing for the different measures in accordance            apply to the aid measures governed by Articles 2, 6 to 9,
with the criteria and within the limits laid down in               11, 12 (2), (3) and (4) and 17.
Article 13 of the said Regulation under the procedure
provided for in Article 29 of Regulation (EEC) No
4253/88.                                                                                    Article 36
If a Member State so requests, these rates shall be                Pursuant to Article 23 of Regulation (EEC) No
applied to expenditure incurred with effect from 1                 4253/88, Member States shall make provision for
January 1989.                                                      effective monitoring which shall include at least verifi-
                                                                   cation of the essential aspects of the beneficiary's under-
For those regions not covered by Objective 1, the rates            taking and of the supporting documents, and on-the-spot
shall be fixed by the Commission under the same                    checks to verify that the information contained in the
conditions; however, the Commission shall submit,                  application corresponds to the true situation.
before 31 December 1992, a report to the Council,
together with proposals concerning the fixing of the said          Where appropriate, detailed rules for the application of
rates for subsequent years.                                        this Article shall be laid down by the Commission, in
                                                                   accordance with the procedure provided for in Article 29
                                                                   of Regulation (EEC) No 4253/88.
                           Article 32
 1.   Measures taken by Member States shall not be
eligible for a financial contribution from the Community                                    Article 37
unless a favourable decision under Article 30 has been
                                                                   1.     On receipt of a reasoned application, the
given in respect of the provisions relating thereto.
                                                                   Commission, acting in accordance with the procedure
                                                                   laid down in Article 30, may authorize a Member State
2.    The financial contribution from the Community                not to apply the aid schemes provided for in Titles I, II
shall be provided only in respect of eligible expenditure          and III in those regions or areas where, because of
arising in connection with aid granted pursuant to                 natural conditions or the threat of depopulation,
decisions taken after 31 March 1985.                               production should not be reduced. In the case of Spain,
                                                                   the Commission may also take account of the particular
                                                                   socio-economic situations of certain regions or areas.
                           Article 33
 1.   Applications for reimbursement shall relate to               The Commission, acting in accordance with the
expenditure incurred by Member States in the course of             procedure laid down in Article 30, shall adopt the
a given calendar year and shall be submitted to the                criteria for defining the regions or areas referred to in
Commission before 1 June of the following year.                    the first subparagraph.
 2.    Payments on account may be authorized by the
                                                                   2.     Portugal is hereby authorized not to apply the
 Commission.
                                                                   schemes referred to in paragraph 1 until 31 December
                                                                    1994.
 3.   The Commission shall adopt detailed rules for the
 application of this Article.
                                                                                            Article 38
                           Article 34                               1.    The following special provisions shall apply to the
                                                                   territory of the former German Democratic Republic:
 Member States may lay down additional conditions as
 regards the implementation of the aid measures provided
for in this Regulation.                                            (a) the arrangements provided for in Titles I and II shall
                                                                        be applied from the 1991/92 marketing year
                                                                        onwards;
                           Article 35
 1.   This Regulation shall be without prejudice to the            (b) land planted with potatoes may qualify for set-aside
right of Member States to adopt additional aid measures                 assistance notwithstanding Article 2 (2);
 ---pagebreak--- No C 82/26                             Official Journal of the European Communities                              27. 3. 91
(c) where the area of arable land of a holding,                       apply to the territory of the former German Demo-
     including, as appropriate, land planted with potatoes,           cratic Republic.
     as referred to in Article 2 (2), exceeds 750 hectares,
     the condition that not less than 20 % of the land                Expenditure under this special system shall not be
     shall be set aside as laid down in Article 2 (3) is              eligible under the Fund.
     replaced by a condition that not less than 150
     hectares shall be set aside;                                 2. The provisions in points (b) to (g) of paragraph 1
                                                                 shall apply until 31 December 1993.
(d) when family holdings are being set up:
                                                                 Before the end of 1992 the Commission shall submit to
    — the conditions in the first indent of Article 5 (2)
                                                                 the European Parliament and the Council a report on
         shall not apply,
                                                                 the implementation and development of the structural
                                                                 action and measures. Taking account of the results
    — the Federal Republic of Germany may grant the
                                                                 achieved and of the way the situation develops, the
         aid referred to in Articles 10 and 11 to farmers
                                                                 Commission may, if necessary, submit proposals
         below the age of 55 years. However, aid granted
                                                                 designed to make these measures more effective.
         to farmers over the age of 40 years is not eligible
         under the Fund;
                                                                                           Article 39
(e) the conditions in the second subparagraph of Article
    6 (3) and the first indent of Article 9 (4) shall not        The measures referred to in Titles II and VII shall apply
    apply to aid granted in the context of the creation of       until 30 June 1990.
    new family holdings or the restructuring of
    cooperative holdings if the number of dairy cows on          Before that date the Commission shall place before the
    all the new or restructured holdings does not exceed         Council a report on the application of the measures,
    the number of dairy cows held previously on the old          including trends in expenditure.
    holdings.
                                                                 Acting on a proposal from the Commission by a
    If the Council has not adopted, by 31 December               qualified majority, the Council shall decide before that
     1990, the arrangements for applications submitted           date whether the measures are to be extended.
    from 1 January 1991 for investment aid in the pig
    production sector, the conditions in Article 6 (4) and       In the absence of a decision by that date, the period of
    the second indent of the second subparagraph of              application of the measures shall be extended by two
    Article 9 (4) referring to the number of pig places          years.
    shall not apply to aid granted in the context of the
    creation of new family holdings or the restructuring
    of cooperative holdings if the number of pig places                                   Article 40
    on all the new or restructured holdings does not
                                                                 1.    Regulation (EEC) No 797/85 is hereby repealed.
    exceed the number of pig places previously held on
    the old holdings;
                                                                 2. References to the Regulation repealed shall be
(f) the volume of investment referred to in the first            construed as references to this Regulation and should
    subparagraph of Article 7 (2) shall be ECU 140 000           be read in accordance with the correlation table in
    per MWU and ECU 280 000 per holding;                         Annex II.
(g) in the context of the restructuring of cooperative                                    Article 41
    holdings, Article 9 (5) shall also apply to associations
    which do not adopt the legal form of a cooperative;          This Regulation shall enter into force on the third day
                                                                 following its publication in the Official Journal of the
(h) a special system of aid for holdings in less-favoured        European Communities.
    areas defined according to criteria to be laid down
    by the Federal Republic of Germany may be applied            This Regulation shall be binding in its entirety and
    during 1991. During this period, Title VI shall not          directly applicable in all Member States.
 ---pagebreak--- 27 3 91                             Official J o u r n a l of the E u r o p e a n Communities                 N o C 82/27
                                                             ANNEX      1
                      Table for converting cattle, equines, sheep and goats into livestock units (LU)
                                              (referred to in Article 19 (1) (a))
        Bulls, cows and other bovine animals over two years, equines over six months                  1,0  LU
        Bovine animals from six months to two years                                                   0,6  LU
        Sheep                                                                                         0,15 LU
        Goats                                                                                         0,15 LU
        The coefficients relating to sheep and goats apply to the maximum and minimum amounts per livestock
        unit as defined in Article 19 (1)
 ---pagebreak--- N o C 82/28                             Official Journal of the European Communities                       27. 3. 91
                                                           ANNEX II
                                                    CORRELATION TABLE
                                                        Regulation (EEC)
                 Regulation (EEC) No 797/85                                          This Regul ation
                                                          No 1760/87
                        Article                                                          Article   1
            Title I:    Article   la (1)                                    Title I:     Article  2    (1)
                        Article   la (2)                                                 Article  2    (2)
                        Article   la (3)                                                 Article  2    (3)
                        Article   la (3) (a)                                             Article  2    (4)
                        Article   la (4)                                                 Article  2   (5)
                        Article   la (5)                                                 Article  2   (6)
                        Article   la (6)                                                 Article  2   (7)
                        Article   la (7)                                                 Article  2   (8)
                        Article   la (8)                                                 Article  2   (9)
            Title II:   Article   lb                                        Title II:    Article  3
            Title III: Article   lc                                         Title III: Article    4
            Title I:    Article  2                                          Title IV: Article     5
                        Article  3   (1)                                                 Article  6   (1)
                        Article  3   (2)                                                 Article  6   (2)
                        Article  3   (3)                                                 Article  6    (3)
                        Article  3   (4)                                                 Article  6   (4)
                        Article  3    (4a)                                               Article  6   (5)
                        Article  3   (5)                                                 Article  6   (6)
                        Article  4                                                       Article  7
                        Article  5                                                       Article  8
                        Article  6                                                       Article  9
                        Article  7                                                       Article 10
                        Article  7a                                                      Article 11
                        Article  8                                                       Article 12
            Title II:   Article  9                                          Title V:     Article 13
                        Article 10                                                       Article 14
                        Article 11                                                       Article 15
                        Article 12                                                       Article 16
            Title III: Article  13                                          Title VI: Article    17
                        Article 14                                                       Article 18
                        Article 15                                                       Article 19
                        Article 17                                                      Article  20
            Title V:    Article 19                                          Title VII: Article   21
                        Article 19a                                                      Article 22
                        Article 19b                                                     Article  23
                        Article 19c                                                     Article  24
            Title VI: Article   20                                          Title VIII Article   25
                        Article 20a                                                     Article  26
                        Article 20b                                                     Article  27
            Title VII: Article  21                                          Title IX: Article    28
            Title VIII Article  24                                          Title X:    Article  29
                        Article 25                                                      Article  30
                        Article 26                                                      Article  31
                        Article 27                                                      Article  32
                        Article 28   (1)                                                Article  33   (1)
                        Article 28   (3)                                                Article  33   (2)
                        Article 28   (4)                                                Article  33   (3)
                        Article 30                                                      Article  34
                        Article 31                                                      Article  35
                        Article 31a                                                     Article  36
                        Article 32a                                                     Article  37
                        Article 32b                                                     Article  38
                                                            Article 6                   Article  39
            Title IX:   Article 33                                          Title XI:
                        Article 34
                                                                                        Article 40
                       Article 35                                                       Article 41
            Annex                                                           Annex I