CELEX: 51993PC0221
Language: en
Date: 1993-05-18
Title: Proposal for a COUNCIL REGULATION (EEC) fixing the non- rotational set-aside rate referred to in Article 7 of Regulation (EEC) No 1765/92

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                      COMMISSION OF THE EUROPEAN COMMUNITIES
                                                              COM(93) 221  final
                                                              Brussels, 18 May 1993
                                               Proposal for a
                                          COUNCIL REGULATION (EEC)
                              fixing the non-rotational set-aside rate referred
                                to in Article 7 of Regulation (EEC) No 1765/92
     JiSi^i'WKji.t'."
                                       (presented by the Commission)
 *tn
 ---pagebreak---                               EXPLANATORY MEMORANDUM
1. One of the main objectives of the reform of the common agricultural policy
   which was adopted in June 1992 is to improve control over production. In the
   arable crop sector, one of the most appropriate ways of achieving this
   objective is to set land aside. All producers, with the exception of those
   qualifying under the small producer scheme, must participate in, set aside in
   order to qualify for compensatory payments per hectare, granted to compensate
   for the loss of income due to fixing prices at a more competitive level, the
   other main principle of the reform.
   For set-aside to be effective it must not be concentrated on the least
   productive land on each holding. To avoid this risk, the Commission
   originally proposed that the land set aside should be rotated. The detailed
   rules for applying set-aside provide therefore for an interval of five years
   before the same parcel of land can return to fallow which, in the case of a
   set-aside rate of 15% on a holding specializing only in eligible arable
   crops, results in 90% of the surface area of the holding in question being
   set aside at some time or other during the course of the rotation period.
2. When the proposals for the reform were adopted, the Council recognized the
   principle of set aside based on rotation. It was also agreed that
   non-rotational set aside could be offered to producers in return for a higher
   set-aside rate so as to compensate for the risk that non-rotational set-aside
   would be carried out on less productive land. Before fixing the
   non-rotational set-aside rate, which is the Community's prerogative alone,
   the Council asked for a study to be carried out on the effects of
   non-rotational set-aside on production control. This study was implemented
   by the Commission and entrusted to the competent institutes in each Member
   State.
3.  Institutes in each Member State, with the exception of Luxembourg (covered by
   the Belgian study)  helped to prepare the study. The Dutch institute, which
   was given the task  of coordinating the research, submitted a final report
   which included the  following main conclusions:
   -   The results of the national studies are hardly comparable because the
       position as regards availability of data and studies previously carried
       out on this issue varies considerably from one Member State to the next;
   -   To obtain the same reduction in production obtainable with a 15%
       rotational set-aside rate, the rate for non-rotational set aside should be
       set on average at about 18%;
 ---pagebreak---                                   - 2 -
-  As producers with marginal land would be the main participants in
   non-rotational set aside (while continuing to produce on good land),
   a set-aside rate greater than 18% would be justified.
Given the above factors, the Dutch institute proposed an extra 5 percentage
points for non-rotational set-aside as compared to rotational set-aside. In
coming to these conclusions, the Dutch institute took into account the
opinion of certain national institutes according to which rotational
set-aside could have the effect of increasing productivity; the institute
estimated however that this risk is more than compensated for by the two
other factors already mentioned, i.e. the possibility offered to producers to
concentrate set-aside on the least productive land and the probability that
non-rotational set-aside will be mainly chosen by those producers whose
holdings show the greatest variation as regards land quality.
The Commission therefore proposes to fix the difference between
non-rotational and rotational set-aside at 5 additional points (therefore
20% instead of 15%, 15% instead of 10%, 25% instead of 20%, etc.).
 ---pagebreak---                                          - 3-
                            COUNCIL REGULATION (EEC) No
                                         Of
                fixing the non-rotational set-aside rate referred
                  to in Article 7 of Regulation (EEC) No 1765/92
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                            «^"-7'£*
Having regard to the Treaty establishing the European Economic Community,
Having regard to Council Regulation (EEC) No 1765/92 of 30 June 1992,
establishing a support system for producers of certain arable crops{*), as
amended by Regulation (EEC) No 364/93(2),   anc j ^ n particular Article 7(1)
thereof,
Whereas the second subparagraph of Article 7(1) of Regulation (EEC) No 1765/92
states that non-rotational set-aside can be permitted in return for a higher
set-aside percentage rate than that required for rotational set-aside; whereas
this percentage must ensure a reduction in production comparable to that
resulting from rotational set-aside; whereas a scientific study of the
comparative effectiveness, as regards production control, of the two types of
set-aside, shows that a difference of five percentage points over the rate for
rotational set-aside should enable the Community's objective to be obtained,
HAS ADOPTED THIS REGULATION:
                                     Article 1
The percentage of non-rotational set-aside referred to in the second subparagraph
of Article 7(1) of Regulation (EEC) No 1765/92 shall be fixed at the level of the
percentage of rotational set-aside referred to in the same Article, plus
5 percentage points.
(1) OJ No L 181, 1.7.1992, p. 12
(2) OJ No L 42, 19.2.1993, p. 3.
 ---pagebreak---                                       -U.-
                                    Article 2
This Regulation shall enter into force on the seventh day following its
publication in the Official Journal of the European Communities.
This Regulation shall be binding in its entirety and directly applicable in all
Member States.
Done at                                          For the Council
 ---pagebreak---                                                               -""b-
      F ï NANCIAL                          S TATEMENT
                                                                           DATE:   10 May 1993
1. BUDGET HEADING: 10                                                      APPROPRIATIONS: ECU 7104
2. TITLE: Draft Council Regulation s e t t i n g the percentage rate of non-rotational set-aside referred t o in
    a r t i c l e 7 of Regulation (EEC) N* 1765/92
3. LEG*. BASIS: Regulation (EEC) N' 1765/92
4. AIMS OF PROJECT:
   To set the percentage rate of non-rotational set-aside
                                         Period of 12 months  Current Financial Year    Following Financial Year
5.   FINftCMi. REPLICATIONS                  (ECUm)                    1993                       1994
5.0 EXPENDITURE
     - CHARGED TO THE EC BUDGET
     - (XXXXXXX/INTERVENTION)                  p.m.
                                               1995               1996                 1997              1996
5.0.1 ESTIMATED EXPENDITURE
5.1.1 ESTIMATED REVENUE                        p.m.               p.m.                 p.m.              p.m.
5.2 METHOD OF CALCULATION:
6.0 CAN THE PROJEa BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET?
                                                                                                            YESXXX
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET?
                                                                                                            YESXXX
6.2 IS A SUPPLEMENTARY BUDGET NECESSARY?
                                                                                                            XXXXND
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?
                                                                                                            YESXXX
OBSERVATIONS:
A higher percentage rate for non-rotating set-aside compared with rotating set-aside, aims to achieve an
equivalent reduction of production. Given that in the medium term, differences between actual and desirable
 levels of production wi 11 be control led by changes to the basic rate of set-aside (without budgetary
consequences), the setting of a non-rotational rate does not of itself have any budgetary consequences.
 It is possible that during the second year, when the rate of payment for set-aside land is sti11 higher than
that for cropped land, there could be extra expenditure. This is not possible to calculate, though.
 ---pagebreak---                                                     fo
                                                  "    '              ISSN 0254-1475
                                                               COM(93) 221 final
                                                         DOCUMENTS
EN                                                                               03
                                 Catalogue number : CB-CO-93-248-EN-C
                                                             ISBN 92-77-55881-4
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