CELEX: 51988PC0308
Language: en
Date: 1988-05-20
Title: Proposal for a COUNCIL REGULATION (EEC) on general rules for the special treatment of small producers under the cereal sector co-responsibility arrangements (presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (88) 308
Vol. 1988/0118
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                    COM(88)308 final
                                                    Brussels , 20 May 1988
                                 Proposal for a
                             COUNCIL REGULATION ( EEC )
   on general rules for the special treatment of small producers under
             the cereal sector co-responsibility arrangements
                            ( presented by the Commission )
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                              EXPLANATORY MEMORANDUM
The exemption arrangements for small producers are to be found in Article 4a
of the basic cereals Regulation .
In the prices package the Commission proposed a modification to take account
of the introduction of an additional co-responsibility levy in connection with
the stabilizers .
However , the Regulation on stabilizers in the cereals sector as adopted by the
Council at the end of April states that the arrangements are to be established
as general rules adopted by the Council acting by a qualified majority on a
Commission proposal . This makes the proposal in the prices package invalid and
necessitates a new proposal from the Commission .
The attached document is that proposal . It incorporates ( a ) the prices package
proposals in their entirety (b ) the general rules at present in force and ( c )
transitional measures for 1988 /89 covering the definition of small producers
(national definitions ) in particular .
                                                                                 'v.
 ---pagebreak---                                          A. tr>b
                         COUNCIL REGULATION ( EEC ) No      / 88
                                               of
        on general rules for the special treatment of small producers under
                  the cereal sector co-responsibility arrangements
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to Council Regulation ( EEC ) No 2727 / 75 of 29 October 1975 on the
common organization of the market in cereals ( 1 ), as last amended by
Regulation ( EEC ) No k&\\! $5 ( 2 ), and in particular Article U thereof ,
Having regard to the proposal from the Commission ,
Whereas provision was made in Council Regulation ( EEC ) No 2727 / 75 for the
introduction of basic and additional co-responsibility levies and for
exemption of small producers therefrom under rules to be determined ; whereas
experience indicates that direct aid to small producers is a suitable means of
counterbalancing the impact of these levies on their income ;
Whereas in order to contain aid within acceptable financial limits a total
available amount should be set on the basis of the total levy amount met by
small producers selling no more than 25 tonnes and a maximum aid amount per
producer should be set ;
Whereas experience of the aid system indicates the need for a common Community
definition of " small producer "; whereas this should be done by reference to
utilized agricultural area ;
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( 2 ) O 3 <Vo L. A AO ,
 ---pagebreak---                                         - 2 -
Whereas the large number of small producers in certain Member States may raise
specific administrative or technical difficulties over introduction of the
aid ; whereas a more appropriate solution for these Member States may be to
grant the aid by offsetting it against the levies ;
Whereas the present Regulation introduces substantial changes in the
arrangements previously applied and transitional arrangements for the 1988 / 89
marketing year should be set ,
HAS ADOPTED THIS REGULATION :
                                      Article 1
Exemption from the co-responsibility levy for small producers as provided for
in Article k of Regulation ( EEC ) No 2727 / 75 shall be granted in accordance
with the provisions of this Regulation .
                                      Article 2
1.   The exemption referred to in Article 1 shall take the form of a direct aid
     to small producers .
2.   Cereal producers shall be considered to be small producers if the utilized
     agricultural area of their holding is not more than 20 hectares .
     Land withdrawn from production under Regulation ( EEC ) No 797 / 85 shall
     count as utilized agricultural area .
 ---pagebreak---                                             3
3.  The total amount of aid available for the Community as a whole shall be
    set each year before the beginning of the marketing year by the Council
    acting by a qualified majority on a Commission proposal .
    The total aid amount shall be commensurate with the estimate of the total
    amount produced by application of the levy specified in Articles 4 and 4b
    of Regulation ( EEC ) No 2727 / 75 to producers marketing 25 tonnes at most .
    The total estimated amount for the levy specified in Article 4b of
    Regulation ( EEC ) No 2727 / 75 shall however be reduced by the levy amount
    reimbursed under paragraph 2 of that Article .
4.  Member States faced with serious administrative or technical difficulties
    in granting the aid provided for in paragraph 1 may , on the terms of
    Article 6 , grant it by offsetting it against the levies due from the small
    producer .
    The total amount deducted by the Member State may under no circumstances
    exceed the amount that would have been paid out to it if this paragraph
    were not applied .
5.  Where paragraph 4 is applied the total amount mentioned in paragraph 3
    will be reduced by the amount that would have been paid out under the
    present arrangements had no application been made of Article 4 .
                                        Article 3
The aid to be granted to each small producer shall be determined on the basis
of the co-responsibility levy imposed on him .
It may be determined using a flat rate .
Member States may refuse to grant aid for amounts smaller than a minimum
determined by them .
In no case may the aid granted to a producer exceed the levy on 25 tonnes of
cereals .
 ---pagebreak---                                         -4 -
                                     Artide 4
Allocation between the Member States of the total aid amount for the cereals
marketing year shall be made on the basis of the volume of cereal production ,
structure of production and volume of producer sales .
                                     Article 5
The procedure set out in Article 26 of Regulation ( EEC ) No 2727 / 75 shall be
used to adopt :
a)  rules for distribution of the aid amount by Member States to small
    producers . Each Member State shall use these rules to distribute the aid
    allocated to it .
    Member States shall notify the Commission in good time of their proposed
    provisions for distribution of the aid .
b)  the allocation of the aid between the Member States as referred to in
    Article 4 .
                                     Article 6
1.  Article 2(4 ) may not be applied unless the Commission has approved the
    provisions made by the Member State .
    These must be notified to the Commission in good time to allow it to give
    a ruling before the beginning of the marketing year .
2.  Exemption from the levy under Article 2(4 ) shall be limited to the first
    25 tonnes of cereals marketed by each producer .
 ---pagebreak---                                             5
                                        Artide 7
The following measures shall , however , be applicable for the 1988 / 89 marketing
year .
   i ) In derogation from Article 2(2 ) Member States may define " small producer "
       on the basis of area sown to cereals and / or utilizable agricultural area
       and / or the position of cereals in the formation of farm incomes .
  ii ) Member States may make use of the option indicated in Article 2(4 )
       without respecting the provisions of Article 6(1 ).
iii ) The total amount of the aid for small producers as mentioned in
       Article 2(3 ) shall be 220 million ECU :
      - 110 million ECU to offset the co-responsib i Lity levy introduced by
        Article 4 of Regulation ( EEC ) No 2727 / 75 ;
      - 110 million ECU to offset the additional co-responsibility levy
        introduced by Article 4b of Regulation ( EEC ) No 2727 / 75 .
                                        Article 8
The aid for each marketing year fixed in accordance with Article 5(b ) shall
for each Member State be converted into national currency at the agricultural
rate applicable on the first day of the marketing year .
                                        Article 9
This Regulation shall enter into force on the day of its publication in the
Official Journal of the European Communities .
It shall be applicable from the 1988 / 89 marketing year onwards .
This Regulation shall be binding in its entirety and directly applicable in
all Member States .
Done at Brussels                                       For the Council