CELEX: 51991PC0415(02)
Language: en
Date: 1991-10-31
Title: Proposal for a COUNCIL REGULATION ( EEC ) instituting a Community aid scheme for forestry measures in agriculture

COMMISSION OF THE EUROPEAN COMMUNITIES
                                            COM(91)415  final
 i                                          Brussels, 31 October 1991
lié
             REFORM OF THE COMMON AGRICULTURAL POLICY   -   LEGISLATION
       MEASURES TO ACCOMPANY THE REFORM OF THE MARKET SUPPORT MECHANISMS
       COMMUNITY AID SCHEME FOR FORESTRY MEASURES IN AGRICULTURE
           COMMUNITY EARLY RETIREMENT SrHEME FOR FARMERS
                          (SUBMITTED BY THE COMMISSION)
 ---pagebreak---                           EXPLANATORY MEMORANDUM
1. The attached proposed regulations embody In legislative form the
   Commission's proposals1 for measures to accompany the changes that are
   to be made to the market organization rules. Three types of action are
   proposed:
       farming and care of the environment;
       afforestation of agricultural land-,
       early retirement for farmers.
   The measures are closely linked to the market proposals in that, taken
   together, they are designed to reinforce the main thrust of the reform,
   i.e. balanced markets, stable incomes for farmers and care for the
   balance of nature and the environment.
2. The aim of the Regulation on farming and the environment is to give
   recognition to the dual role of farmers as producers and as stewards of
   the environment and the countryside, and to encourage farming practices
   which are less intensive and more in tune with environmental
   constraints; this should also make a positive contribution to
   rebalancing markets. The Regulation on afforestation of agricultural
   land offers a commercially viable, alternative use for land while
   contributing to improved control of production, with a positive impact
   on the environment as well. The early retirement scheme is directed
   towards restructuring and will help not only to rationalize holdings so
   that farmers can adjust to the new conditions but also to ease the
   pressure of surplus output on present markets, while ensuring that the
   land is used for non-agricultural purposes compatible with the
   environment.
3. These three accompanying measures are interconnected and linked closely
   with the changes being proposed in the market organizations.
   If there is to be better control of production, and efficiency in
   managing it, this cannot be divorced from other, increasingly sensitive
   issues such as the environment, alternative uses for land as offered by
   afforestation, the problem of ageing among farmers and the need to
   adjust farm holdings.
   There is therefore a Justified argument for financing the costs
   occasioned by these proposals within the same budget framework as the
   legislation on the market organizations.
1  C0M(91) 258 final of 22 July 1991, part two.
                                                                           1
 ---pagebreak--- 4.  The three measures, while requiring a voluntary commitment from
    farmers, are mandatory as far as their implementation by the Member
    States are concerned. To ensure greater flexibility and better
    adaptation to individual circumstances, which can very considerably
    between regions, the schemes are to be implementated in the form of
    multiannual operational programmes, to be drawn up by the Member States
    and the Commission acting in partnership. In all cases, the aid paid
    will be subject to maximum levels eligible for part-financing by the
    Community at a rate between 50% and 75% (the actual rate being decided
     in the context of each programme).
I.  Agriculture and the environment
5.  The agri-environment measure consists of an incentive scheme to farmers
    who undertake:
         to reduce significantly their use of polluting substances (chemical
         and organic fertilizers, pesticides, herbicides);
         to reduce numbers of livestock (cattle and sheep) where damage is
         being caused by pressure from excessive numbers;
         to employ agricultural practices that conserve or re-establish
         diversity and quality in the countryside environment (landscape,
         flora and fauna);
         to maintain abandoned land (non-farmers may be eligible if there
         are no farmers available to do this);
         to withdraw land from production for a prolonged period (twenty
         years) for environmental purposes (use as natural parks, creation
         of natural biotopes).
    The Regulation also provides for aid towards training for farmers in
    environmentally friendly production methods (not explicitly mentioned
     in the Commission's paper on the future of the common agricultural
    policy) because it is important to prepare farmers properly for the
    necessary changeover to new ways of farming.
I I. Afforestation of agricultural land
6.  Major difficulties confront the farming sector because of the need to
    change traditional behaviour patterns and devise new approaches which
    will allow rural populations not only to develop but also to manage the
    countryside in harmony with the environment.
    Forestry measures, including afforestation of suitable farmland, can
    help to prevent the abandonment of farmland and the consequent risk of
    erosion and deterioration of the landscape. At the same time, forestry
    measures can provide alternative income sources for farmers and, in due
    course, help to reduce the Community's timber deficit.
    Experience gained with the present measures shows that aid levels are
     insufficient to cover the cost of afforestation and income losses. The
    maximum aid rates should be aligned on those of the set-aside scheme,
    which also comprises an afforestation option. This would encourage
 ---pagebreak---     farmers and other interested parties to undertake farmland
    afforestation. In addition, afforestation by public bodies, including
     local authorities, should be supported in order to help resolve the
    situât ion.
7.  The measure on farmland afforestation consists of an aid scheme
    cover ing:
          investment in afforestation (including that carried out by local
         author it ies);
         the upkeep of afforested land during the first five years-,
         an allowance to offset income losses over a maximum period of 20
         years, varied according to the category of beneficiary and the
         species planted;
         the improvement of existing stands of trees.
I I I Ear I y ret irement
8.  The need to change traditional attitudes and develop new opportunities
     in order to enable rural communities to survive and prosper is causing
    substantial difficulties for the agricultural sector. The age
    structure of the farming population poses a special problem. About two
    million farmers are over 65 years old and over two and a half million
    are between 55 and 65 years old. Half of these farmers have no
    successors.
    Two in three of the 4.6 million farmers over 55 years of age own less
    than 5 hectares.
    The medium- and long-term prospects for agriculture in the Community
    and the reform of the market support mechanisms mean that an extra
    effort of adjustment is being asked of farmers. The Commission is
    therefore proposing that the present early retirement scheme be
    overhauled and made into a more effective instrument for improving the
    viability of holdings and providing social assistance for older
    farmers.
9.  The new scheme will apply to farmers aged 55 years or more who are not
    yet in receipt of a pension (and to persons employed on the holdings
    concerned). It consists of an aid system with a maximum amount per
    holding, with the aid taking any of the following forms:
         a retirement grant,
         annual compensation not dependent on the area of land released,
         an annual allowance per hectare of released land,
         a retirement pension supplement where the amount paid under the
         national retirement scheme is too low to induce farmers to stop
          farming.
    Combinations of the above, possibly on a degressive basis, will be
     allowed, with maximum flexibility, but subject to a maximum eligible
     amount per holding. This is why a "retirement grant" has been included
     in the scheme as an alternative, although it is not mentioned in
     C0M(91) 258 final.
                                                                            4
 ---pagebreak---                              •3-
                          Proposal
              for a Council Regulation (EEC)
       on agricultural production methods compatible
with the requirements of the protection of the environment
          and the maintenance of the countryside
               (presented by the Commission)
                                                           Ç
 ---pagebreak---                                        -4-
                                 Proposal for a
                           Council Regulation (EEC)
                on agricultural production methods compatible
                   with the requirements of the protection of
            the environment and the maintenance of the countryside
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
and in particular Articles 42 and 43 thereof,
Having regard to the proposal from the Commission 1 ,
Having regard to the opinion of the European Parliament 2 ,
Having regard to the opinion of the Economic and Social Committee 3 ,
Whereas the requirements of environmental protection are an integral part
of the common agricultural policy;
Whereas measures to reduce agricultural production in the Community must
have a beneficial impact on the environment;
Whereas many factors affect the environment;    whereas it is subject to very
diverse pressures within the Community-,
Whereas, on the basis of an appropriate aid scheme, farmers can serve
society as a whole by introducing or continuing to use production methods
compatible with the increasing demands of protection of the environment and
natural resources and upkeep of the landscape and the countryside;
Whereas the introduction of an aid scheme to encourage substantial
reductions in the use of fertilizers and plant protection products can help
not only to reduce agricultural pollution but also to adapt a number of
sectors to market requirements by encouraging less intensive production
methods;
 1  OJ No L
 2  OJ No L
 3  OJ No L
                                                                              É
 ---pagebreak---                                      -5-
Whereas a reduction in livestock numbers can help to avert environmental
damage due to pressure from excessive numbers of sheep and cattle; whereas,
therefore, the extens ification scheme for various products provided for in
Article 3 of Council Regulation (EEC) No 2328/91 of 15 July 1991 on
improving the efficiency of agricultural structures 1 should be
incorporated in the scheme introduced under this Regulation;
Whereas the production of products for non-food uses under a Community set-
aside scheme must comply with the requirements of environmental protection;
whereas, therefore, this scheme must not apply to such products;
Whereas a scheme to encourage the introduction or maintenance of particular
production methods may help to solve specific problems related to
protection of the environment or the countryside and thus contribute to
env i ronmentaI poIi cy goaI s ;
Whereas many agricultural and rural areas in the Community are increasingly
threatened by depopulation, soil erosion, flooding and forest fires-,
whereas the institution of special measures to encourage the upkeep of land
can reduce such risks;
Whereas because of the scale of the problems such schemes should be
applicable to all farmers in the Community who undertake to use farming
methods which will protect, maintain or improve the environment and the
countryside and to refrain from further intensification of agricultural
production;
Whereas the current set-aside scheme for arable land provided for in
Article 2 of Regulation (EEC) No 2328/91 has been replaced by provisions in
the market regulations-, whereas it appears none the less appropriate to
introduce a scheme for long-term set-aside of agricultural land for
environmental reasons;
1   OJ L 218, 6.8.1991. p.1.
                                                                            >
 ---pagebreak---                                       -6-
Whereas the measures provided for in this Régulât ion must encourage farmers
to make undertakings regarding farming methods compatible with the
requirements of environmental protection and maintenance of the
countryside, and thereby to contribute to balancing the market; whereas
the measures must compensate farmers for any income losses caused by
reductions in output and/or increases in costs;
Whereas the introduction by the Member States of codes of good agricultural
practice can also help to make farming methods more compatible with the
requirements of environmental protection;
Whereas because of the diversity of the environment, natural conditions and
the structure of agriculture in the various parts of the Community the
measures may have to be adapted; whereas they should therefore be
implemented within the framework of zonal programmes for the management of
agricultural or abandoned land;
Whereas both the Community and the Member States must increase their effort
to educate and inform farmers about the introduction of production methods
compatible with the environment, and in particular regarding the
application of a code of good farming practice;
Whereas in order to guarantee the maximum effectiveness of such programmes
it is vital to ensure that the results are disseminated and monitored
regularly;
Whereas such measures must contribute towards certain specific
environmental goals set out in Community legislation;
Whereas, given that the Community is to contribute to the financing of the
scheme, it must be able to ascertain that the implementing arrangements
adopted by the Member States contribute towards the attainment of its
objectives; whereas the structure of cooperation between the Member States
and the Commission introduced by Article 29 of Council Regulation (EEC) No
4253/88 of 19 December 1988 laying down provisions for implementing
Regulation (EEC) No 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 other existing financial
 instruments 2 should be used for this purpose,
Whereas the resources available for implementing the measures provided for
 in this Regulation must be additional to those available for the
 implementation of measures under the rules governing the structural Funds,
and in particular for measures applicable in regions covered by Objectives
1 and 5(b) as defined in Article 1 of Regulation (EEC) No 2052/88,
2   OJ No L 374, 31.12.1988, p. 1
                                                                             ?
 ---pagebreak---                                        -7-
HAS ADOPTED THIS REGULATION:
                                    Art icle 1
                                     PURPOSE
In order to:
-   accompany the changes to be introduced under the market organization
    rules;
-   contribute to the achievement of the Community's policy objectives
    regarding agriculture and the environment;
-   contribute to providing an appropriate income to farmers,
a Community aid scheme part-financed by the Guarantee Section of the
European Agricultural Guidance and Guarantee Fund (EAGGF) is hereby
instituted to promote:
(a)      the use of farming practices which reduce the polluting effects of
         agriculture, thereby also contributing, through a reduction in
         production, to improved market balance;
(b)      the extensif icat ion of crop farming and sheep and cattle farming-,
(c)      ways of using agricultural land which are compatible with
         protection and improvement of the environment, the countryside, the
         landscape and the soil, and the preservation of local breeds in
         danger of extinction;
(d)      the upkeep of abandoned farmland and woodlands where this is
         necessary for environmental reasons or because of natural hazards
         and fire risks, and thereby avert the dangers associated with the
         depopulation of agricultural areas;
(e)       long-term set-aside of agricultural land for reasons connected with
         the environment;
(f)      education and training for farmers in types of farming compatible
         with the requirements of environmental protection and upkeep of the
         countryside.
                                                                              <?
 ---pagebreak---                                      -8-
                                  Art icle 2
                                 AID SCHEME
1. The scheme may include aid for farmers who undertake:
   (a)  to reduce substantially their use of fertilizers and/or plant
        protection products, or to keep to the reductions already made;
   (b)  to change, by means other than those referred to in the first
        indent, to more extensive forms of crop production, including
        forage production, or to maintain extensive production methods
        introduced in the past-,
   (c)  to reduce sheep and cattle numbers-,
   (d)  to use other production methods compatible with the requirements of
        protection of the environment and natural resources, as well as
        maintenance of the countryside and the landscape, or to rear
        animals of local breeds in danger of extinction;
   (e)  to ensure the upkeep of abandoned farmland or woodlands;
   (f)  to set aside farmland for at least 20 years with a view to its use
        for purposes connected with the environment, in particular for the
        establishment of biotope reserves or natural parks.
2. In addition, the scheme may include measures to improve the training of
   farmers with regard to farming practices compatible with the
   environment.
                                                                            Ao
 ---pagebreak---                                      -9-
                                  Article 3
                               AID PROGRAMMES
1. Member States shall implement, throughout their territories, the aid
   scheme provided for in Article 2 by means of multiannual zonal
   programmes covering the objectives referred to in Article 1. The
   programmes shall reflect the diversity of environmental situations,
   natural conditions, agricultural structure and the main types of farming
   practised.
2  Each zonal programme shall cover an area which is homogeneous in terms
   of the environment and the countryside and shall include, in principle,
   all of the aids provided for in Article 2.
   However, where there is sufficient Justification, programmes may be
   restricted to aids which are in line with the specific characteristics
   of an area.
3. Zonal programmes shall be drawn up for a minimum period of five years
   and must contain at least the following information:
   (a)  a definition of the geographical area and, where applicable, the
        subareas concerned;
   (b)  a description of the natural, environmental and structural
        characteristics of the area;
   (c)  a description of the proposed objectives and their Justification in
        view of the characteristics of the area;
   (d)  the conditions of grant of aid, taking into account the problems
        encountered;
   (e)  an estimate of annual expenditure for implementing the zonal
        programme.
                                                                            M
 ---pagebreak---                                     -10-
                                  Article 4
                         NATURE AND AMOUNTS OF AID
1. An annual allowance per hectare or livestock unit removed from a herd
   shall be granted to farmers who make one or more of the undertakings
   referred to in Article 2 for at least five years, in accordance with the
   programme applicable in the zone concerned. In the case of set-aside,
   the undertaking shall be for 20 years.
2. The maximum eligible amount of the allowance is:
   - ECU 150 for annual crops for which an allowance per hectare is granted
     under the market regulations governing the crops in question-,
   - ECU 250 for other annual crops and pasture;
   - ECU 210 for each sheep or cattle livestock unit by which a herd is
     reduced;
   - ECU 100 for each livestock unit of an endangered breed reared;
   - ECU 400 for specialized olive groves;
   - ECU 1 000 for citrus fruits;
   - ECU 700 for other perennial crops and wine;
   - ECU 250 for the upkeep of abandoned land;
   - ECU 600 for land set aside.
   Livestock numbers shall be converted to livestock units on the basis of
   the conversion table in the Annex.
3. The maximum eligible amount for annual crops and pasture shall be
   increased to ECU 350 per hectare if the farmer has, at the same time and
   for the same area, made one or more of the undertakings referred to in
   Article 2(1)(a) or (b), together with an undertaking as referred to in
   Article 2(1)(d).
4. Where an allowance is granted for the reduction of the number of
   Iivestock units:
   - the aids provided for in Article 2(1)(a) and (b) may not be granted
     for the forage area of of the holding;
   - the maximum eligible amount of an allowance for forage areas under
     Article 2(1)(d) shall be reduced by 50%.
                                                                            a
 ---pagebreak---                                     -11-
5. Subject to conditions to be determined by the Commission in accordance
   with the procedure laid down in Article 29 of Regulation (EEC) No
   4253/88, the Community may contribute to the allowances referred to in
   the preceding paragraphs which are granted by Member States in order to
   compensate for income losses resulting from the mandatory application of
   the restrictions referred to in Article 2 in the context of measures
   implemented in the Member States pursuant to Community provisions.
                                                                            43
 ---pagebreak---                                     -12-
                                 Art icle 5
                            CONDITIONS OF GRANT
1. In order to achieve the objectives of this Regulation in the context of
   the zonal programmes, Member States shall determine, in compliance with
   the provisions laid down herein:
   (a)  the conditions for granting aid-,
   (b)  the amount of aid to be paid, on the basis of the undertaking made
        by the beneficiary and of the loss of income, and of the need to
        provide an incentive;
   (c)  the terms on which the aid for the upkeep of abandoned land as
        referred to in the fifth indent of Article 2 may be granted to
        persons other than farmers, where no farmers are available;
   (d)  the conditions to be met by the beneficiary to ensure that
        compliance with the undertakings may be verified and monitored;
   (e)  the terms on which the aid may be granted where the farmer
        personally is unable to make an undertaking for the minimum period
        required.
2. No aid may be granted under this Regulation in respect of areas subject
   to the Community set-aside scheme which are being used for the
   production of non-food products.
3. While ensuring that the measure serves as an incentive, Member States
   may restrict the aid to a maximum amount per holding and differentiate
   it according to holding size.
                                                                           Ah
 ---pagebreak---                                       -13-
                                   Article 6
               COURSES, TRAINEESHIPS AND DEMONSTRATION PROJECTS
  Where no financing is granted under Article 28 of Regulation (EEC) No
  2328/91 3 , Member States may introduce a separate aid scheme for
  training courses and traineeships concerned with farming practices
  compatible with the requirements of protection of the environment and
  natural resources and maintenance of the countryside and the landscape,
  and particularly with codes of good farming practice or good organic
  farming pract ice.
  The aid scheme shall include the grant of aid:
  - for attendance of courses and traineeships;
  - for the organization and implementation of courses and traineeships.
  The expenditure incurred by the Member States in granting the aid
  referred to in the previous subparagraph shall be eligible up to
  ECU 2 500 per person completing a full course or traineeship.
  The measure concerned by this Article shall not cover courses or
  traineeships which are part of normal programmes or curricula of
  secondary or higher agricultural education.
  The Community may contribute to demonstration projects concerning
  farming practices compatible with the requirements of environmental
  protection, and in particular the application of a code of good farming
  practice.
  The Community contribution referred to in the previous subparagraph may
  cover assistance for training and education initiatives organized by
  local or non-governmental organizations competent in this field.
3 OJ No L 218, 6.8.1991, p. 1
                                                                          ti
 ---pagebreak---                                        -14-
                                    Articie 7
                          PROGRAMME APPRAISAL PROCEDURE
   1. Member States shall communicate to the Commission, by ... (within 12
      months of the entry into force of this Regulation), the draft programmes
      referred to in Article 3 and any existing or proposed laws, regulations
      or administrative provisions by which they intend to apply this
      Régulât ion.
   2. The Commission shall examine the texts communicated in order to
      determine:
      - their compliance with this Regulation, taking account of its
        objectives and the links between the various measures,
      - the nature of the measures eligible for part-financing,
      - the total amount of expenditure eligible for part-financing,
      - the rate of Community part-financing for the whole of the programme,
        up to 50%. The rate may be Increased to 75% in Objective 1 regions.
   3. The Commission shall decide on the approval of the zonal programmes and
      the rates of Community part-financing, on the basis of the factors
      listed in paragraph 2 and in accordance with the procedure laid down in
      Article 29 of Regulation (EEC) No 4253/88.
                                    Art icle 8
                          DETAILED RULES OF APPLICATION
   Detailed rules for the application of this Regulation shall be adopted by
   the Commission in accordance with the procedure laid down in Article 29 of
   Regulation (EEC) No 4253/88.
3)
                                                                               4l>
 ---pagebreak---                                      -15-
                                  Article 9
                              FINAL PROVISIONS
1. This Regulation shall not preclude Member States from implementing,
   except in the field of application of Article 5 ( 2 ) , other aid measures,
   subject to conditions of grant other than those laid down herein and
   amounts exceeding the limits stipulated herein, provided that the said
   measures comply with the objectives of this Regulation and with Articles
   92, 93 and 94 of the Treaty.
2. Three years after the date of entry into force in the Member States, the
   Commission shall present a report to the European Parliament and the
   Council on the application of this Regulation.
                                 Art icle 10
                            REPEAL OF PROVISIONS
1. Article 3 of Regulation (EEC) No 2328/91, dealing with extensification
   of production, is repealed. It shall remain applicable to undertakings
   made before the entry into force of this Regulation.
2. Articles 21 to 24 of Regulation (EEC) No 2328/91, dealing with aid in
   environmentally sensitive areas, are repealed. They shall remain
   applicable to aid granted before that date, and the maximum eligible
   amounts shall be adjusted in line with the amounts provided for in
   Article 3(1).
                                                                               A}-
 ---pagebreak---                                     -16-
                                 Article 11
                              ENTRY INTO FORCE
This Regulation shall enter into force on
This Regulation shall be binding in its entirety and directly applicable in
a 11 Member States.
                                                                            4*
 ---pagebreak---                                                                                                                   thl
                                                   ANNEX
Table for converting cattle, equines, sheep and goats into livestock units (LU) (referred to in Article J/
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 Lf
                                                                                                                     A°>
 ---pagebreak---              Proposal for a
 COUNCIL REGULATION (EEC) No      /..
instituting a Community aid schema for
   forestry measures in agriculture
      presented by the Commission
                                       2JO
 ---pagebreak---                                   Proposal for a
                       COUNCIL REGULATION (EEC) No       /..
                      instituting a Community aid scheme for
                         forestry measures in agriculture
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community, and in
particular Articles 42 and   43 thereof,
Having regard to the proposal from the Commission1,
Having regard to the opinion of the European Parliament2,
Having regard to the opinion of the Economic and Social Committee 3 ,
Whereas the afforestation of agricultural   land is important both from the point
of view of soil use and the environment and as an accompaniment to the
Community's policy for containing agricultural production;
Whereas experience in matters of afforestation of agricultural    land by farmers
shows that existing aid schemes for promoting afforestation are insufficient;
whereas afforestation of agricultural   land withdrawn from agricultural
production in recent years has proved unsatisfactory;
1    OJ C ...
2    OJ C ...
3    OJ C ...
                                                                                  2-\
 ---pagebreak--- Whereas, therefore, the measures provided for in Title VI I I of Council
Regulation (EEC) No 2328/91 of 15 July 1991 on improving the efficiency of
agricultural structures 4 should be replaced by measures which provide more
effective encouragement to afforestation of agricultural   land;
Whereas the eligible amounts of the costs of afforestation must correspond to
the effective costs of afforestation observed in the Community;
Whereas a degressive allowance for the first five years to alleviate the cost of
maintenance of new woodlands may contribute significantly towards the
encouragement of afforestation;
Whereas in order to increase afforestation of agricultural   land as a way of
furthering the aims of the CAP it is necessary to introduce allowances to
compensate for the income loss incurred by farmers during the non-productive
period of afforested agricultural   land;
Whereas in many cases private persons other than farmers will be in a position
to undertake afforestation of agricultural   land; whereas provision should be
made for incentives to be offered to such persons-,  whereas, therefore, an
allowance per hectare should be introduced for the benefit of private persons
other than farmers who undertake afforestation of agricultural    land;
Whereas in many parts of the Community afforestation of agricultural     land may be
undertaken by public authorities, in particular local authorities;      whereas,
 therefore, afforestation schemes undertaken by such authorities should be
supported and reinforced;
Whereas eucalyptus and Christmas tree plantations are generally fairly
 profitable;  whereas, therefore, for afforestation with these species, it is
 sufficient to provide Community assistance for afforestation costs incurred by
 farmers practising farming as a main occupation;
      OJ L 218, 6.8.1991, p.1
                                                                                  2*.
 ---pagebreak--- Whereas the improvement of existing farm woodlands can help to improve the
incomes of persons employed in farming-,  whereas, in particular, because of the
structural and other problems affecting cork production, measures to improve
existing cork oak stands should be reinforced;
Whereas, given that the Community is to contribute to the financing of the
measure, it must be able to ascertain that the implementing arrangements adopted
by the Member States contribute towards the attainment of its objectives;
whereas, for this purpose, a structure of cooperation should be set up between
the Member States and the Commission in the Standing Forestry Committee set up
by Council Decision 89/367/EEC5-,
Whereas the resources available for implementing the measures provided for in
this Regulation must be additional to those available for the implementation of
measures under the rules governing the structural Funds, and in particular for
measures applicable in regions covered by Objectives 1 and 5(b) as defined in
Article 1 of Regulation (EEC) No 2052/88,
HAS ADOPTED THIS REGULATION
                                     Article 1
                                      PURPOSE
 In order to:
- accompany the changes to be introduced under the market organization rules,
- contribute towards an eventual improvement in forest resources,
- contribute towards forms of countryside management more compatible with
environmental balance,
      OJ No L 165, 15.6.1989, p. 14.
                                                                              23
 ---pagebreak--- a Community aid scheme part-financed by the Guarantee Section of the European
Agricultural Guidance and Guarantee Fund (EAGGF) is hereby instituted to
promote:
(a) afforestation as an alternative use of agricultural  land,
(b) the development of forestry activities on farms.
                                     Article 2
                                    AID SCHEME
1.   The aid scheme may comprise-.
     (a)   aid for afforestation costs;
     (b)   an annual allowance per hectare afforested to cover maintenance costs
     in the first five years;
     (c)   an annual allowance per hectare to cover losses of income resulting
     from afforestation of agricultural   land;
     (d)   investment aid for the improvement of woodlands by the provision of
     shelterbelts, firebreaks, waterpoints and forest roads, and for the
      improvement of cork oak stands.
2.   (a)   Aid as referred to in paragraph 1(a) and (b) may be granted to any
     natural or legal person undertaking afforestation of agricultural   land.
      (b)  Aid as referred to in paragraph 1(c) shall be eligible only if it is
     granted to:
     - farmers not qualifying under the early retirement scheme introduced by
     Regulation (EEC) No .. instituting a Community aid scheme for early
     retirement from farming 6
     - any other private-law natural or legal person.
     OJ L ..
                                                                               24
 ---pagebreak---      (c)   In the case of eucalyptus and Christmas tree plantations, aid as
     referred to in paragraph 1(a) shall be eligible only if it is granted to
     farmers practising farming as a main occupation in accordance with Article
     5(1)(a) of Regulation (EEC) No 2328/91.
     (d)   Aid as referred to in paragraph 1(d) shall be eligible only if it is
     granted to farmers or associations thereof.
3.   The scheme may also comprise a Community contribution to the costs of
     afforestation of agricultural land undertaken by the competent public
     authorities of the Member States.
                                     Art icle 3
                                   AMOUNT OF AID
The maximum eligible amounts of aid as referred to in Article 2 are as follows:
(a)  in the case of afforestation costs:
     - ECU 2000 per hectare for plantations of conifers and eucalyptus
     - ECU 4000 per hectare for plantations of broadleaves or mixed plantations
     comprising not less than 75% of broadleaves.
(b)   in the case of maintenance costs:
     - ECU 250 per hectare per year for the first two years and ECU 150 per
     hectare per year for the following years in the case of conifer
     plantât ions;
     - ECU 500 per hectare per year for the first two years and ECU 300 per
     hectare per year for the following years in the case of broadleaf
     plantations or mixed plantations comprising not less than 75% broadleaves.
                                                                                is
 ---pagebreak--- (c) in the case of the allowance to compensate for income losses:
    - ECU 600 per hectare per year if the afforestation is undertaken by a
    farmer -,
    - ECU 150 per hectare per year if the afforestation is undertaken by
    another party as referred to in Article 2(2)(b),
    for a maximum period of 20 years from the date of first afforestation.
(d) in the case of improvements of existing woodlands:
    - ECU 700 per hectare for woodland improvement and the provision of
    shelterbelts;
    - ECU 1400 per hectare for renovation and improvement of cork oak stands;
    - ECU 18 000 per kilometre for forest roads;
    - ECU 150 per hectare of woodland provided with firebreaks and waterpoints,
    The cost of adapting agricultural machinery for forestry work shall be
    included in the investment referred to in the first paragraph.
    At the justified request of a Member State and subject to the availability
    of funds, the Commission may decide, in accordance with the procedure laid
    down in Article 5, to increase the amounts laid down for woodland
    improvements and for the renovation and improvement of cork oak stands to
    ECU 1200 per hectare and ECU 3000 per hectare respectively.
                                    Article 4
                                 AID PROGRAMMES
1.  Member States shall implement the aid scheme referred to in Article 2 by
    means of multiannual zonal programmes covering the objectives laid down in
    Article 1.   Zonal programmes shall reflect the diversity of environmental
    situations, natural conditions and the structure of agriculture.
                                                                               26
 ---pagebreak--- 2. Zonal programmes shall contain the following information:
   - conditions in respect of the location and grouping of areas which may be
   afforested;
   - measures taken to lay down afforestation conditions and syIv(cultural
   practices to be complied with;
   - the amounts of aid;
   - measures taken to evaluate and monitor environmental impact;
   - details of any accompanying measures taken or planned;
   - an estimate of the annual cost of implementing the programme.
                                  Art icle 5
                        PROGRAMME APPRAISAL PROCEDURE
1. Member States shall communicate to the Commission, by ... (within 12 months
   of the entry into force of this Regulation),    the draft zonal programmes
   referred to in Article 4 and any existing or proposed laws, regulations or
   administrative provisions by which they intend to apply this Regulation.
2. The Commission shall examine the texts communicated by the Member States in
   order to determine:
   -   their compliance with this Regulation, taking account of its objectives
   and the links between the various measures;
   - the nature of the measures eligible for part-financing;
   - the total amount of expenditure    eligible for part-financing;
   - the rate of Community part-financing for the whole of the programme, up
   to 50%. The rate may be increased to 75% in Objective 1 regions.
                                                                              "2*
 ---pagebreak--- 3.   The Commission shall decide on the approval of zonal programmes, including
     the rates of Community part-financing, on the basis of the factors listed
     in paragraph 2.  For this purpose the Commission representative shall
     submit to the Standing Forestry Committee set up by Council Decision
     89/367/EEC a draft decision on the matter.
     The Committee shall deliver its opinion on the draft within a time limit
     which the chairman may lay down according to the urgency of the matter. The
     opinion shall be delivered by the majority laid down in Article 148(2) of
     the Treaty in the case of decisions which the Council is required to adopt
     on a proposal from the Commission. The votes of the representatives of the
     Member States within the committee shall be weighted in the manner set out
     in that Article. The chairman shall not vote.
     The Commission shall adopt measures which shall apply immediately .
     However, if these measures are not in accordance with the opinion of the
     committee, they shall be communicated by the Commission to the Council
     forthwith. In that event the Commission may defer application of the
     measures which it has decided for a period of not more than one month from
     the date of such communication.
     The Council, acting by a qualified majority, may take a different decision
     within the time limit referred to in the previous paragraph .
                                    Art icle 6
                          DETAILED RULES OF APPLICATION
Detailed rules for the application of this Regulation   shall be adopted by the
Commission in accordance with the procedure laid down in Article 5.
                                                                                z?>
 ---pagebreak---                                      Article 7
                                 FINAL PROVISIONS
1.   Articles 25, 26 and 27 of Regulation (EEC) No 2328/91 are repealed.   They
     shall remain applicable to aid granted before the entry into force of this
     Régulât ion.
2.   This Régulât ion shall not preclude Member States from implementing in the
     same field of application other aid measures, subject to conditions of
     grant other than those laid down herein and amounts exceeding the limits
     stipulated herein, provided that the said measures comply with the
     objectives of this Regulation and with Articles 92, 93 and 94 of the
     Treaty.
                                     Art icle 8
                                 ENTRY INTO FORCE
This Regulation shall enter into force on ...
This Regulation shall be binding in its entirety and directly applicable in a
Member States.
Done at .. ,                                    For the Counci
                                                The President
                                                                                z/?
 ---pagebreak---             -3-
          Proposal for a
     COUNCIL REGULATION (EEC)
instituting a Community aid scheme
for early retirement from farming
   presented by the Commission
                                   lo
 ---pagebreak---                                   -4-
                                Proposai for a
                           COUNCIL REGULATION (EEC)
                      instituting a Community aid scheme
                      for early retirement from farming
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
and in particular Articles 42 and 43 thereof,
Having regard to the proposal from the Commission1,
Having regard to the opinion of the European Parliament2,
Having regard to the opinion of the Economic and Social Committee**,
Whereas, given the medium-to-long term outlook for Community agriculture
and the reform of the market support mechanisms, a greater effort of
adjustment  is being required of farmers;
Whereas early retirement from farming should be encouraged in order to
improve the viability of agricultural holdings;
Whereas an aid scheme for early retirement can help to provide an income
for elderly farmers who decide to stop farming, to encourage the
replacement of such elderly farmers by farmers able to improve the
viability of the remaining agricultural holdings and to allow the
reassignment of agricultural   land to non-agricultural uses where there are
no farmers likely to take it over in satisfactory conditions of viability;
1  OJ L...
2 OJ C .
3 OJ C .
                                                                             lA
 ---pagebreak---                                  -5-
Whereas elderly family helpers and paid workers may lose their employment
and income if the agricultural holding employing them ceases to operate;
whereas provision should therefore be made for an income source for such
persons;
Whereas to ensure the effectiveness of the scheme aid should be provided
for setting up services and networks to organize the transfer and expansion
of agricultural holdings and the rational use of the countryside;
Whereas the diversity of the causes, nature and gravity of the structural
problems in agriculture may call for solutions differentiated according to
the region concerned and adaptable over time;   whereas a contribution must
be made to the overall economic and social development of each region
concerned;   whereas the best results will be obtained if Member States,
applying Community criteria, implement the scheme in the form of
multiannual programmes drawn up in consultation with the Commission, and
adopt the laws, regulations and administrative provisions necessary for
their implementation;
Whereas a procedure should be laid down for adopting, where necessary,
detailed rules for the application of this Regulation, especially as
regards monitoring arrangements,
Whereas the resources available for implementing the measures provided for
 in this Regulation must be additional to those available for the
 implementation of measures under the rules governing the structural Funds,
and in particular for measures applicable in regions covered by Objectives
1 and 5(b) as defined in Article 1 of Regulation (EEC) No 2052/88 4 ,
HAS ADOPTED THIS REGULATION:
 4  OJ No L 185, 15.7.1988, p. 9.
                                                                          3^
 ---pagebreak---                                 -6-
                                 Art icle 1
                                  PURPOSE
1. In order to accompany the changes to be introduced under the market
   organization rules a Community aid scheme for early retirement from
   farming, part-financed by the Guarantee Section of the European
   Agricultural Guidance and Guarantee Fund (EAGGF), is hereby instituted.
2. Early retirement aid shall contribute simultaneously to the following
   object ives:
   (a) providing an income for elderly farmers who decide to stop farming;
   (b) encouraging the replacement of such elderly farmers by farmers able
   to improve the economic viability of the remaining agricultural
   holdings;
   (c) reassigning agricultural land to non-agricultural uses where it
   cannot be farmed in satisfactory conditions of viability.
3. Early retirement aid may comprise measures to:
   (a) provide an income for elderly family helpers and paid farm workers
   who lose their employment as a result of a farmer's early retirement;
   (b) organize the transfer and expansion of agricultural holdings and
   ensure rational use of the countryside.
                                                                           33
 ---pagebreak---                                 -7-
                                 Article 2
                                DEFINITIONS
For the purposes of this Regulation,
   'transferor' means a farmer who stops all commercial farming activity
   definitively pursuant to this early retirement aid scheme-,
   'worker' means a family helper or paid farm worker who was employed on a
   transferor's agricultural holding before his early retirement and who
   stops all farm work definitively;
   'farming transferee' means a farmer who succeeds the transferor at the
   head of the agricultural holding and expands it on the same occasion, or
   a farmer who takes over ail or part of the land released by a transferor
   in order to expand his own agricultural holding;
   'non-farming transferee' means any other person or body who takes over
   all or part of the released land to use it for non-agricultural
   purposes, afforestation or the creation of ecological reserves;
   'released land' means land which was farmed by a transferor before he
   stopped farming commercially and is no longer farmed by him-,
   'farming as a main occupation' means farming in accordance with Article
   5(1)(a) of Council Regulation (EEC) No 2328/91 of 15 July 1991 on
   improving the efficiency of agricultural structures1-,
1  OJ No L 218, 6.8.1991, p.1 .
                                                                            i4
 ---pagebreak---                                  -8-
                                  Art icle 3
                                 AID SCHEME
1. Early retirement aid granted to transferors may take the following
   forms:
   (a) retirement grant,
   (b) annual compensation not dependent on the area of land released,
   (c) annual allowance per hectare of released land,
   (d) retirement pension supplement where the amount paid under the
   national retirement scheme is too low to induce farmers to stop farming.
   These forms of aid may be combined and may be paid in degressive annual
   amounts.
   The total amount eligible for part-financing per holding shall be
   calculated on the basis of the following reference method:
   (a)  aid is paid, from the age of early retirement to the normal
   retirement age, in the form of annual compensation at a rate of
   ECU 4 000 per holding, plus an annual allowance of ECU 250 per hectare,
   up to a maximum annual total of ECU 10 000 per holding;
   (b)  aid is paid, as appropriate, in the form of an annual supplement to
   the normal retirement pension paid by the Member State in order to
   arrive at the same annual total amount as that specified in (a);
   (c)  the duration of payment of aid as defined in (a) and (b) does not
   exceed 10 years and does not continue after the transferor's seventieth
   birthday.
   Member States may use a method of payment different from the reference
   method defined in the preceding subparagraph, consisting in the payment
   of smaller annual amounts, on a degressive scale and for a period
   exceeding 10 years or continuing beyond the transferor's seventieth
   birthday.   In such cases, the amount eligible for part-financing shall
                                                                            V
 ---pagebreak---                              -9-
not exceed the amount which would be obtained by using the method of
reference.
                                                                     3é?
 ---pagebreak---                                  -10-
   Furthermore, where the aid scheme includes a retirement grant, the
   maximum amount of the grant eligible for part-financing shall not exceed
   ECU 12 000, plus ECU 750 per hectare of released land, up to a limit of
   ECU 30 000 per holding;   this amount shall be considered as within the
   total amount eligible for part-financing calculated by the reference
   method.
2. Early retirement aid granted to workers may take the following forms:
   (a) retirement grant,
   (b) annual compensation.
   These forms may be combined.
   The total amount eligible for part-financing per worker shall be
   calculated on the basis of the following reference method:
   (a)  aid is paid, from the age of early retirement to the normal
   retirement age, in the form of annual compensation at a rate of
   ECU 2 500 per worker -,
   (b)  the duration of payment of compensation as referred to in (a) does
   not exceed 10 years and does not continue after the worker's normal
   retirement age.
   Member States may use a method of payment different from the reference
   method defined in the preceding subparagraph, consisting in the payment
   of smaller annual amounts, on a degressive scale and for a period
   exceeding 10 years or continuing beyond the worker's normal retirement
   age.   In such cases, the amount eligible for part-financing shall not
   exceed the amount which would be obtained by using the method of
   reference.   Furthermore, where the aid scheme includes a retirement
   grant, the amount of the grant eligible for part-financing shall not
   exceed ECU 7 500 per worker;   this amount shall be considered as within
   the total amount eligible for part-financing calculated by the reference
   method.
                                                                            3ï-
 ---pagebreak---                                 -11-
   Early retirement aid shall be eligible for part-financing by the
   Community for two workers per agricultural holding.
3. Member States may grant start-up aid for services and networks
   responsible, within the context of the programme, for organizing the
   transfer and expansion of agricultural holdings and the rational use of
   the countryside;  such aid shall be intended to contribute towards
   operat ing costs.
   The services may carry out surveys of agricultural holdings to be
   transferred, compile a directory of land and agricultural holdings
   available or wanted, and draw up documents relevant to the planning of
   the use of land released by transferors.   They may also take charge of
   released land and reconvey it at a later date to a transfeeree
   satisfying the conditions laid down in this Regulation.
   To qualify for aid such services must be approved by the Member State
   and employ at least one full-time person fully qualified for the duties
   he must perform.
   The start-up aid eligible for part-financing by the Community is
   ECU 36 000 per full-time employee.   Payment of this amount shall be
   spread over the first five years of employment of each person.
                                                                           38
 ---pagebreak---                                  -12-
                                  Article 4
                               AID PROGRAMMES
1. Member States shall implement the aid scheme throughout their territory
   by means of multiannual programmes drawn up at national or regional
   level.
2. Each programme shall include the following:
   - the geographical limits of the area covered;
   - a description of the structural situation of the area, including
   statistical data on the number of agricultural holdings, by size and by
   age of farmer, and on incomes;
   - a description of the early retirement and retirement schemes existing
   in the area, the degree of take-up in recent years and problems
   encountered;
   -an indication, with explanatory comments, of the rates and conditions
   of grant of aid, by type of beneficiary;
   - an estimate of the number of transferors, transferees and workers who
   will be concerned by such aid;
   - an estimate of the number of hectares which will be released by the
   transferors and the proportions which will be transferred to farming
   transferees (successors or other farmers) and non-farming transferees;
   -an estimate of the expected costs of the various types of aid envisaged
   and the financial means required, together with the expected schedule of
   expenditure;
   - the proposed timetable for implementing the various types of aid.
                                                                            3"?
 ---pagebreak---                                   -13-                                 s
                                   Article 5
                  CONDITIONS APPLICABLE TO PERSONS CONCERNED
Grant of aid shall be subject to the following conditions:
(1)   A transferor must:
   - be not less than 55 years old but not yet of normal retirement age;
   - have practised farming as a main occupation for the ten years
   preceding transfer;
(2)   A farming transferee must:
   - have worked on an agricultural holding for at least the two-year
   period prior to the transfer of the released land, and have devoted at
    least half of his/her working time to farming during that period;
   - undertake to practise farming as a main occupation on the agricultural
   holding for not less than 5 years in accordance with the conditions laid
   down in Article 6(3) and (4);
(3)   A worker must
    - be not less than 55 years old but not yet of normal retirement age-,
    - stop farming completely and definitively after having devoted at least
    half of his/her working time to it during the preceding five years;
    - have worked on the transferor's agricultural holding for at least the
    two-year period   prior to the early retirement of the transferor-,
    - belong to a social security scheme;
(4)   A non-farming transferee must
    - undertake to use the land in accordance with Article 6(5).
                                                                             Ao
 ---pagebreak---                                   -14-
                                   Article 6
                    CONDITIONS APPLICABLE TO RELEASED LAND
1. The conditions laid down in this Article must be applied throughout the
   period during which the transferor receives early retirement aid.
2. Transferors may continue farming a maximum of 10%, but not more than one
   hectare, of their agricultural   land provided that they stop commercial
   production completely.
3. The size of the agricultural holdings resulting from the transfer of
   land released by the transferor must be increased so as to improve their
   economic viability, in compliance with conditions to be defined by the
   Member States as regards, for instance, area, volume of work or income,
   according to the region and type of production.
4. Released land transferred to farming transferees must be farmed for not
   less than five years, in harmony with the requirements of environmental
   protect ion.
5. Released land transferred to non-farming transferees    must be used in a
   manner compatible with protection of the quality of the environment and,
    if necessary, maintained in such a way as to preserve the countryside.
6. Released land may be included in a reparcelling operation or an exchange
   of parcels.    In such cases, the conditions laid down in this Article
   must be applied to areas equivalent to those of the released land.
   Released land may be taken in charge by a body which undertakes to
   reconvey it at a later date to a transferor who satisfies the conditions
    laid down in this Regulation.
                                                                             U
 ---pagebreak---                                 -15-
                                  Art icle 7
                            NATIONAL PROVISIONS
1. Member States shall adopt the necessary laws, regulations and
   administrative provisions to implement the programme.  They must ensure:
   - that the programme is sufficiently attractive compared with early
   retirement schemes already existing in the area of application-,
   - the ease of transfer of released land, in particular by encouragement
   of appropriate forms of tenancy in cases where the transferee is unable
   to purchase the released land,
   - that land purchase or rental contracts contain clauses requiring
   compliance with the conditions laid down in Article 6 regarding use of
   the land;
   - the establishment of services and networks responsible for organizing
   the transfer and expansion of agricultural holdings and the rational use
   of the countryside.
   - a progressive transition from the Community early retirement aid
   scheme to the national retirement scheme.
2. This Regulation shall not preclude Member States from implementing other
   aid measures, subject to conditions of grant other than those laid down
   herein and amounts exceeding the limits stipulated herein, provided that
   the said measures comply with the objectives of this Regulation and with
   Articles 92, 93 and 94 of the Treaty.
                                                                            V
 ---pagebreak---                                 -16-
                                 Art icle 8
                            PROGRAMME APPRAISAL
1. Member States shall communicate to the Commission, by ... (within 6
   months of the entry into force), the draft aid programmes and any
   existing or proposed national provisions.
2. The Commission shall examine the texts communicated by the Member States
   in order to determine:
   - their compliance with this Regulation, taking account of its
   objectives and the links between the various measures;
   - the nature of the measures eligible for part-financing-,
   - the total amount of expenditure eligible for part-financing;
   - the rate of Community part-financing for the whole of the programme,
   up to 50%.  The rate may be increased to 75% in Objective 1 regions.
3. The Commission shall decide on the approval of the programmes, including
   the rate of Community part-financing, in accordance with the procedure
   laid down in Article 29 of Regulation (EEC) No 4253/88.
                                 Art icle 9
                       DETAILED RULES OF APPLICATION
Detailed rules for the application of this Regulation   shall be adopted by
the Commission in accordance with the procedure laid down in Article 29 of
Regulation (EEC) No 4253/88.
                                                                            <i3
 ---pagebreak---                                  -17-
                                  Artlcle 10
                               FINAL PROVISION
Regulation (EEC) No 1096/881 is repealed.    It shall remain applicable to
aid granted before...
                                  Article 11
                              ENTRY INTO FORCE
This Regulation shall enter into force on
This Regulation shall be binding in its entirety and directly applicable in
a I I Member States.
Done at ... ,                                     For the Council
                                                          The President
1   OJ No L 110, 29.4.1988, p. 1.
                                                                            kh
 ---pagebreak--- VI/G/5 (DT/5805/tab10en)                                                                                                      23.10.91.(AW/tz)
                                            SUMMARY TABLE SHOWING FiNANCIAL PROFILE OF THE SUPPORTING MEASURES
                                                                           (MECU)
                                                         1993            1994           1995           1996    1997   Total
                                                                                                                    (5 years)
  Early retirement : EAGGF contribution                    34             203            456            601     706    2000
  Environment
  EAGGF contribution (average 60X)
  - fertiliser reductlon/estensIfIcatlon                    6              24             49             80     122     281
  - protection of the environment                          17              72            146            236     360     831
  - care of abandoned agricultural land                    20              84            170            275     420     969
  - land set-aside                                                         18             18             18      18      72
  - training                                                                2              2              2       2       8
  - total                                                                 200            385            611     922    2161
  Forestry                                                 55              80            109            149     202     595
 TOTAL COST FOR EAGGF                                     132             483            950          1361     1830    4756
 REDUCED EAGGF EXPENDITURE : land set-aside                 -           -180           -180           -180     -180    -720
 NET COST FOR EAGGF                                       132             303            770          1181     1650    4036
 ---pagebreak---  ---pagebreak---                                                                      ISSN 0254-1475
                                                              COM (91)415 final
                                                      DOCUMENTS
EN                                                                              03
                                Catalogue number : CB-CO-91-469-EN-C
                                                             ISBN 92-77-76806-1
Office for Official Publications of the European Communities
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