CELEX: 51988PC0001
Language: en
Date: 1988-01-13
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) AMENDING REGULATIONS ( EEC ) NO 797/85 AND NO 1760/87 AS REGARDS THE SET-ASIDE OF AGRICULTURAL LAND AND THE EXTENSIFICATION AND CONVERSION OF PRODUCTION

No C 51/6                               Official Journal of the European Communities                                  23. 2. 88
                                                                II
                                                        (Preparatory Acts)
                                                   COMMISSION
               Proposal for a Council Regulation (EEC) amending Regulations (EEC) No 797/85 and (EEC)
               No 1760/87 as regards the set-aside of agricultural land and the extensification and conversion
                                                          of production
                                                        COM(88) 1 final
                             (Submitted by the Commission to the Council on 13 January 1988)
                                                          (88/C 51/09)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                            provided for of excluding from the scheme land so far
                                                                    used for crops whose situation is not such as to make
Having regard to the Treaty establishing the European               desirable Community incentives for reducing the area
Economic Community, and in particular Articles 42 and               devoted to them; whereas, to achieve tangible results in
43 thereof,                                                         terms of the stabilization of supply, it should be
                                                                    stipulated that at least 20 % of the arable land must be
Having regard to the proposal from the Commission,                  set aside for a period of at least five years;
Having regard        to  the  opinion     of   the  European
Parliament,                                                         Whereas, given the greater need to protect the envi-
                                                                    ronment and to maintain the countryside, Member States
                                                                    should take the necessary measures to keep set-aside
Having regard to the opinion of the Economic and
                                                                    land in good agricultural condition and lay down the
Social Committee,
                                                                    necessary provisions to protect the environment and
                                                                    natural resources;
Whereas the situation of the agricultural markets has
changed, and will change further, as a result of the new
direction imposed on the common agricultural policy by              Whereas it should be left to the Member States to set the
the need to secure a gradual drop in output in those                amount of the aid per hectare of land set aside, in the
sectors where there is a surplus;                                   light of the income losses actually incurred and in
                                                                    accordance with criteria to be laid down within the
Whereas, in this context, the      structural policy must be        framework of the detailed rules for applying these
used to help farmers adapt to      this new situation and to        arrangements; whereas, on the one hand, the level of aid
cushion the effects that the       new markets and prices           must be fixed so that it is sufficiently high to provide
policy is likely to have on         agricultural incomes in         farmers with a real incentive to set aside some of their
particular;                                                         land; whereas, on the other hand, the aid should not
                                                                    exceed the level necessary to offset the loss of income
Whereas, in order that the objectives of the structural             resulting from the set-aside of the land; whereas, to this
policy may be achieved, the common measure introduced               end, the minimum and maximum amounts eligible for
by Council Regulation (EEC) No 797/85 of 12 March                   the aid should be specified;
1985 on improving the efficiency of agricultural
structures ('), as last amended by Regulation (EEC) No
 1760/87 (2), should be adjusted and amplified;                     Whereas, to provide an additional incentive to those
                                                                    farmers who set aside large areas, that is, at least 30 %
Whereas arrangements for the set-aside of arable land               of their arable land, such farmers should be exempted, in
may assist the various sectors, and in particular those             respect of a quantity of 20 tonnes, from the co-responsi-
with surplus production, to adjust to market                        bility levy provided for in Article 4 of Regulation (EEC)
requirements;                                                       No 2727/75 and the additional co-responsibility levy
                                                                    provided for in Article 7a (3) of Council Regulation
Whereas the set-aside arrangements should be extended               (EEC) No 2727/75 of 29 October 1975 on the common
to cover all arable land since from one year to another             organization of the market in cereals (3), as last amended
the use made of such land varies with the rotation of               by Regulation (EEC) No 3989/87 (4);
crops; whereas, however, the possibility should be
(') OJ No L 93, 30. 3. 1985, p. 1.                                  (5) OJ No L 281, 1. 11. 1975, p. 1.
(2) OJ No L 167, 26. 6. 1987, p. 1.                                 (4) OJ No L 377, 31. 12. 1987, p. 1.
 ---pagebreak--- 23. 2. 88                              Official Journal of the European Communities                               No C 51/7
Whereas, to take account of the different situations                      (a) the scheme for encouraging set-aside of land;
obtaining in the various regions of the Community,                        (b) the scheme for encouraging extensification of
provision should be made for the modulation by tranches                       production.'
of the rate of reimbursement from the European Agri-
cultural Guidance and Guarantee Fund;
                                                                  2. Title 01 is replaced by the following Titles 01, 02 and
                                                                     03:
Whereas the introduction of aid arrangements for the
set-aside of land necessitates certain changes in the aid
arrangements for conversion and extensification as                                           'TITLE 01
introduced by Regulation (EEC) No 1760/87; whereas,
for the sake of clarity, adjustments should be made to                             Set-aside of agricultural land
the provisions currently in force without altering in any
essential respect the existing aid arrangements for                  Article la
conversion and extensification;
                                                                     1.     Member States shall introduce an aid scheme
Whereas, although schemes for land set-aside and exten-              designed to encourage the set-aside of agricultural
sification of production fall within the common measure              land.
for improving the efficiency of agricultural structures
provided for in Regulation (EEC) No 797/85, their main               2.     Aid for set-aside may be granted for all arable
aim is nonetheless to help in re-establishing the balance            land, irrespective of the crops grown, provided that
between output and the market's capacity to absorb it;               the land has in fact been cultivated for a reference
                                                                     period to be determined. Land growing crops whose
Whereas, therefore, by way of derogation from Articles               situation is not such as to make desirable any set-
1 (3) and 6 (1) of Council Regulation (EEC) No 729/70                aside of land devoted to them may be excluded from *
on the financing of the common agricultural policy ('),              the scheme.
as last amended by Regulation (EEC) No 3183/79 (2), it
should be laid down that schemes for land set-aside and              3.     The    agricultural    land    withdrawn     from
extensification of production are to be considered as                production must represent at least 20 % of the arable
intervention within the meaning of Article 3 of Regu-                land on the farm concerned. For a period of at least
lation (EEC) No 729/70 and therefore financed by the                 five years such land must be withdrawn from culti-
Guarantee Section of the European Agricultural                       vation, that is:
Guidance and Guarantee Fund,
                                                                     — left fallow,
                                                                     — afforested, or
HAS ADOPTED THIS REGULATION:
                                                                     — used for non-agricultural purposes.
                          Article 1                                  Member States shall take the necessary measures to
                                                                     keep the land in good agricultural condition. They
Regulation (EEC) No 797/85 is hereby amended as
                                                                     shall lay down the necessary provisions for managing
follows:
                                                                     the land so that the environment and natural
                                                                     resources are protected.
1. In Article 1:
                                                                     4.     Member States shall determine:
    (a) the following subparagraph is added to paragraph
          1:
                                                                     (a) the amount of the aid to be paid per hectare of
         'The common measure shall include such                           land set aside on the basis of the loss of income
         measures as are considered to be intervention                    resulting from the land being set aside, whilst
         within the meaning of Article 3 of Regulation                    ensuring that the amount of the aid is sufficient to
         (EEC) No 729/70';                                                make it effective, on the one hand, and that it
                                                                          does not provide excessive compensation, on the
    (b) in paragraph 2 (a), 'and extensification' is deleted;             other, together with the way in which that aid is
                                                                          to be paid.
    (c) the following subparagraph is added to paragraph
                                                                          This aid shall be eligible for reimbursement from
         2:
                                                                          the Fund only up to a maximum amount per
         'In accordance with Title VIII, the Guidance                     hectare to be determined. The aid may not be less
         Section of the Fund shall make a contribution to                 than certain minimum amounts to be determined;
         the measure referred to in paragraph 1
         concerning:                                                 (b) the reference period referred to in paragraph 2;
                                                                     (c) the undertaking to be given by the beneficiary for
0) OJ No L 94, 28. 4. 1970, p. 1.                                         the purposes of verifying that the area farmed has
(2) OJ No L 304, 27. 10. 1987, p. 1.                                      in fact been reduced.
 ---pagebreak--- No C 51/8                                Official Journal of the European Communities                                 23. 2. 88
   5.    Producers who, for the land set aside, receive                    in output referred to in paragraph 2, the number
   aid within the meaning of this Title may not receive                    of livestock units must be reduced by at least
   aid within the meaning of Titles 02 or 03 for such                      20 % ; in the case of wine, it may be stipulated
   land.                                                                   that the yield per hectare must be reduced by at
                                                                           least 20 % ;
   6.    Producers who set aside at least 30 % of their                (b) the amount of the aid, on the basis of the under-
   arable land shall be exempted,' in respect of a quantity                taking given by the beneficiary and the loss of
   of 20 tonnes, from the co-responsibility levy referred                  income incurred, and the way in which it is to be
   to in Article 4 of Regulation (EEC) No 2727/75 and                      paid;
   from the additional co-responsibility levy (*) provided
   for in Article 7a (3) of Regulation (EEC) No                        (c) the reference period for the product concerned,
   2727/75.                                                                for the purposes of calculating the reduction;
                                                                       (d) the undertaking to be given by the beneficiary for
  7.     The Commission, acting in accordance with the                     the purposes of verifying that production has in
  procedure laid down in Article 25, shall adopt                           fact been reduced.
  detailed rules for applying this Title, specifying in
  particular:                                                         4.     Where the scheme is applied in the milk sector,
                                                                      the reduction in output shall be calculated on the
  — the land to be excluded from the scheme under                     basis of the reference quantity allocated under Regu-
       the second sentence of paragraph 2,                            lation (EEC) No 804/68 ('), as last amended by
                                                                      Regulation (EEC) No 773/87 (2). The reference
  — the criteria to be applied by the Member States                   quantities suspended pursuant to this paragraph may
       when fixing the aid,                                           not be re-used or re-allocated for the duration of the
                                                                      suspension.
  — the criteria for determining the reference period
       referred to in paragraph 2,                                    The eligible amount of the premium paid under
                                                                      Council Regulation (EEC) No 775/87 of 16 March
  — the maximum annual amount per hectare eligible                     1987 temporarily withdrawing a proportion of the
       for assistance from the Fund,                                  reference quantities mentioned in Article 5c (1) of
                                                                      Regulation (EEC) No 804/68 on the common organ-
  — the regionally-adjusted minimum amounts, taking                   ization of the market in milk and milk products (3)
       account of soil types and the net margins                      shall be deducted from the eligible amount of the aid.
       recorded.
                                                                      5.     Producers who receive aid within the meaning
                                                                      of this Title may not receive aid within the meaning
                           TITLE 02                                   of Titles 01 or 03 for the land affected by extensifi-
                                                                      cation.
                 Extensification of production
                                                                      6.     The Commission, acting in   accordance with the
  Article lb                                                          procedure laid down in Article      25, shall lay down
                                                                      detailed rules for applying this    Title, specifying in
   1.    Member States shall introduce an aid scheme to               particular the maximum annual      amounts eligible for
  promote extensification of the production of surplus                assistance from the Fund.
  products. Surplus products shall be defined as
  products for which there are consistently, at
  Community level, no normal unsubsidized outlets.
                                                                                             TITLE 03
  Until 31 December 1989 Member States may restrict
                                                                                     Conversion of production
  the scheme to crop products, beef and veal, and wine.
                                                                      Article lc
  2.     Extensification shall be defined as a reduction of
  at least 20 % , for a period of at least five years, in the          1.    Member States shall introduce an aid scheme
  output of the product concerned without any increase                designed to encourage the conversion of production
  in other surplus production capacity. However, such                 towards non-surplus products.
  an increase shall be permitted in proportion to any
  increase in the utilized agricultural area of the farm.             2.    The Council, acting on a proposal from the
                                                                      Commission in accordance with the voting laid down
                                                                      in Article 43 (2) of the EEC Treaty, shall adopt a list
  3.     Member States shall determine:                               of products towards which production may be
                                                                      converted and shall lay down the conditions and
  (a) the conditions for reducing output of the various               procedures for the granting of the aid.
       products. In the case of beef and veal, it may be
       stipulated that, in order to achieve the reduction             3.    Producers who receive aid within the meaning
                                                                      of this Title may not receive aid within the meaning
  (*) Date of the Regulation's entry into force.                      of Titles 01 or 02 for the land in question.
 ---pagebreak--- 23. 2. 88                               Official Journal of the European Communities                                No C 51/9
   4.     The Commission, acting in accordance with the                'Where Titles 01, 02 and 03 are concerned, Member
   procedure laid down in Article 25, shall adopt                      States shall bring into force the measures necessary to
   detailed rules for applying this Title.                             comply with this Regulation before               1988 (*).
                                                                       (*) Three months as from the entry into force of the
   (') OJ No L 148, 28. 6. 1968, p. 13.                                    proposed Regulation.'
   O OJ No L 78, 20. 3. 1987, p. 1.                                5. The following Article 32a is inserted:
   O OJ No L 78, 20. 3. 1987, p. 5.'
                                                                       '1.    On receipt of a reasoned application, the
3. In Article 26,                                                      Commission, acting in accordance with the procedure
                                                                       laid down in Article 25, may authorize a Member
   (a) paragraph 1 is replaced by the following:                       State not to apply the aid schemes provided for in
        '1.   The expenditure incurred by Member States               Titles 01, 02 and 03 in those regions or areas where,
       in connection with the measures provided for in                because of natural conditions or the threat of depopu-
       Articles lc, 3 to 7, 9 to 17 and 19 to 21 shall be              lation, production should not be reduced.
       eligible for aid from the Guidance Section of the              The Commission, acting in accordance with the
       Fund. The expenditure incurred by Member                       procedure laid down in Article 25, shall adopt the
        States in connection with the measures provided                criteria for defining the regions or areas referred to in
       for in Articles la and lb shall be eligible for aid            the first subparagraph.
       from the Guarantee Section of the Fund.'
                                                                       2.    Portugal is hereby authorized not to apply the
   (b) the following subparagraph is added to paragraph                schemes referred to in paragraph 1 during the first
       2:                                                              stage of accession.'
        'The Fund shall reimburse to Member States
        50 % of the eligible expenditure on the measures                                      Article 2
       provided for in Article la.                                 Articles 5 and 6 of Regulation (EEC) No 1760/87 are
                                                                   hereby repealed.
       The rate shall be reduced to:
       — 25 % for that portion of the aid which                                               Article 3
            exceeds 200 ECU per hectare,
       — 15 % for that portion of the aid which                    This Regulation shall enter into force on the third day
                                                                   following its publication in the Official Journal of the
            exceeds 400 ECU per hectare.'
                                                                   European Communities.
4. In Article 32 (1) the following subparagraph            is      This Regulation shall be binding in its entirety and
   inserted after the first suparagraph:                           directly applicable in all Member States.