CELEX: 51992PC0348
Language: en
Date: 1992-07-28
Title: Proposal for a COUNCIL REGULATION (EEC) on special measures for farmers affected by the 1991/92 drought in Portugal

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                        COM(92) 348 final
        .JKÏ-
                                                        Brussels, 28 July 1992
: • r*s •'. If v
                                      Proposal for a
                                 COUNCIL REGULATION (EEC)
                       on special measures for farmers affected by
                             the 1991/92 drought in Portugal
                              (presented by the Commission)
 ---pagebreak---                                       - 2 -
                               EXPLANATORY MEMORANDUM
Portugal suffered a severe drought during the period autumn 1991 to spring 1992
entailing losses for producers of up to two thirds of their winter cereals
harvests.   The drought also severely affected fodder production, thus causing
problems for the Portuguese livestock sector.   This situation has had a serious
effect on the incomes of the Portuguese producers concerned.
In order to remedy the situation the Portuguese Government has requested
compensatory aid schemes to be introduced.
In the case of cereals, it is proposed to authorize the Portuguese Republic to
grant aid per hectare to compensate for yield losses up to a maximum which will
vary according to the cereal concerned.
In the case of the livestock sector, it is proposed to authorize the Portuguese
Republic to grant aid to supplement the existing Community premiums for farmers
with suckler cows, ewes and she-goats and aid for small milk producers and
producers holding horses.
It is proposed that the EAGGF make a financial contribution to the aids,
excepting the aid for producers holding horses, which is to be financed from the
national budget. That contribution will not exceed the amounts entered for the
purpose in the budget. The Commission contemplates proposing a limit of ECU
(agricultural) 35 million for the cereals sector and ECU 47 million for the
Iivestock sector.
This draft package of measures has no impact on small and medium-sized
enterpr ises.
 ---pagebreak---                                        - 3 -
                                  Proposal for a
                            COUNCIL REGULATION (EEC)
                 on special measures for farmers affected by
                        the 1991/92 drought in Portugal
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,
Whereas Portugal suffered a severe drought between autumn 1991 and spring
1992 resulting    in cereals harvest     losses which may    be almost  total  in
certain regions, and in particularly high additional costs for the feeding
of cattle, sheep, goats and/or horses in certain regions; whereas, in order
to mitigate   the   resulting   loss of    income  to  the  producers  concerned,
special aid schemes should be provided for; whereas the detailed rules for
such schemes should be laid down;
Whereas the spring drought has a smaller effect on         late-harvest cereals,
such as maize and sorghum-, whereas the aid should accordingly be restricted
to winter cereals; whereas durum wheat already benefits from large amounts
of aid per hectare independent of output; whereas the aid should therefore
be restricted to common wheat, barley, rye and triticale;
Whereas, in the case of cereals, the compensation should be restricted to
producers  with   low  productivity; whereas      compensation  payable  to such
producers should be determined on the basis of their production losses and
the production costs for the various cereals;
 ---pagebreak---                                       - 4 -
Whereas, in the case of stockfarmers, provision should be made for special
aid for producers holding suckler cows, ewes and she-goats, and for small
milk producers in the regions affected; whereas the aid should be limited
to an amount sufficient      to offset expenditure on the purchase of fodder
supplements during the period when, in normal years, there is sufficient
grass growth to supply the basic feed needs of the animals concerned;
Whereas, as regards compensation to stockfarmers for additional costs, a
list of regions should be drawn up according to the severity of the drought
therein, on the basis of the shortage of rainfall           compared with normal
levels and the effects of exceptionally high           temperatures; whereas the
maximum aid authorized should be limited in accordance with the severity of
the drought and on the basis of the animal species concerned;
Whereas, in order to allow speedy payment of the aid, the Community suckler
cow, ewe and she-goat premiums granted to individual farmers for the 1991
marketing year should be taken as the reference figure; whereas, however,
provision   should   be   made  for  new    producers   who   did   not   submit  an
application for the 1991 marketing year;
Whereas   the economic    consequences   of   the drought   could    slow  down  the
integration of Portuguese agriculture into the common organization of the
markets; whereas, in order to support Portuguese efforts to overcome the
difficulties,    the   EAGGF   Guarantee    Section   should    make   a   financial
contribution not exceeding the appropriations entered for the purpose in
the budget to the aid in question;
Whereas the Portuguese authorities should be authorized to grant aid from
the national    budget   for  producers   holding   horses   in the    regions most
severely affected by the drought,
 ---pagebreak---                                        - 5 -
HAS ADOPTED THIS REGULATION:
                                      TITLE I
                      Measures to assist cereals producers
                                    Article 1
1.    Portugal   is authorized to grant special aid to producers of common
      wheat, barley, rye and triticale particularly affected by the drought
       in Portugal during the period covering autumn 1991 to spring 1992.
2.    Cereals producers who obtained an average per hectare of          less than
      1 000 kg of common wheat, 850 kg of barley and triticale and 650 kg
      of   rye  on   their   holdings   in  1992   shall   be  considered    to  be
      particularly affected.
                                    Article 2
Farmers who have submitted a crop declaration under the special aid scheme
provided   for   in  Council   Regulation   (EEC)   No   3653/90 3 and,   in   duly
substantiated cases, other farmers who can prove that their cereals crops
have been affected shall be eligible for the aid.
                                    Article 3
1.    The aid per hectare shall not exceed:
            ECU 215/ha for common wheat;
            ECU 165/ha for barley and triticale; and
            ECU 120/ha for rye.
2.    The aid must be granted      in such a way that producers particularly
      affected who have obtained an output        per cereal of    less than the
      quantities    specified   in Article    1(2) shall    be entitled   to   part
      thereof.    In that case the amounts stated       in paragraph  1 shall be
      reduced   in proportion    to the difference between      the actual    yield
      obtained and the figures specified in Article 1(2).
      0J No L 362, 27.12.1990, p. 28.
 ---pagebreak---                                         - 6 -
                                     Article 4
Where necessary, the detailed       rules for giving efect     to this Title, in
particular    those relating to controls, shall be       laid down   in accordance
with the procedure set out in Article 26 of Regulation (EEC) No 2727/7S4.
                                      Title 11
                         Measures to assist stockfarmors
                                     Article 5
Portugal   is authorized to introduce a scheme for special drought aid for
producers holding suck 1er cows, dairy cows, ewes and she-goats in regions
affected   by   the severe   drought   in Portugal  during   the period   covering
autumn 1991 to spring 1992 who undertake to keep the herd or flock until at
 least 31 December 1992.
For the purposes of this Regulation:
       the particularly affected regions shall be as listed in Annex I;
       the very severely affected regions shall be as listed in Annex li;
       the severely affected regions shall be as listed in Annex III.
                                     Article 6
Where Article 5 applies, special drought aid may be granted to producers
holding   suckler   cows  who  received,   for  1991,   the  suckler  cow  premium
                                                      5
introduced by Council Regulation (EEC) No 1357/80 .
When the number of suckler cows held at 1 September 1992:
       is equal to the number for which the premium was paid for 1991, the
       aid may be granted for no more than that number of animals;
       is less than the number for which the premium was paid for 1991, the
       aid shall be granted for that lower number;
4      OJ No L 281, 1.11.1975, p. 1.
5      OJ No L 140, 5.6.1980, p. 1.
 ---pagebreak---                                           - 7 -
        is greater than the number for which the premium was paid for 1991,
        the aid shall be granted for that higher number, provided that the
       animals     were   already     held    at   1 January 1992     and    subject   to
       appropriate checks by the competent authorities.
Aid may also be paid to producers holding suckler cows as referred to in
Article    5 who    did  not    receive   the   suckler   cow  premium    for   the  1991
marketing    year   but who can prove       to the satisfaction      of   the competent
authority that they actually held suckler cows eligible under Regulation
(EEC) No 1357/80 at        least for the period 1 January to 1 September 1992.
The aid may be paid for no more than that number of suckler cows.
                                        Article 7
Where Article 5 applies, special drought aid may be granted to producers
delivering    or   directly    selling   milk   or milk    products   whose    individual
reference quantities as referred to in Article 5(c) of Regulation                   (EEC)
           6
No 804/68     are not more than 60 000 kg.         The aid shall be granted only to
producers    within    the   particularly     affected    regions   or   very    severely
affected regions referred to in Article 5 who can prove to the satisfaction
of the competent authority that they actually held dairy cows at least for
the period 1 January to 1 September 1992.            The aid shall be granted for no
more   than   that   number   of  dairy   cows.    The  total   number  of    dairy  cows
eligible for the aid shall not in any case exceed 17.
                                        Article 8
Where Article 5 applies, special drought aid may be granted to producers
holding ewes and/or she-goats who have received the premium referred to in
Article 5 of Council Regulation (EEC) No 3013/897 for the 1992 marketing
year.    The aid may be granted for no more than the number of eligible ewes
and/or    she-goats    subject     to  an   appropriate     check   by   the    competent
author it les.
6      OJ No L 148, 28.6.1968, p. 13.
7      0J No L 289, 7.10.1989, p. 1.
 ---pagebreak---                                              - 8 -
                                          Article 9
      1.     The special drought aid shall not exceed:
             (a)   in particularly    affected   regions, ECU 145 per  suck 1er cow,
                   ECU 14.5 per ewe and ECU 14.5 per she-goat;
             (b)   in very severely affected regions, ECU 110 per suck 1er cow,
                   ECU 11 per ewe and ECU 11 per she-goat;
              (c)   in severely affected regions, the amounts at (b) less 32%;
              (d)   in particularly or very severely affected regions, ECU 75 per
                   dairy cow.
       2.     If the animals were not present for the whole of the period 1 January
              to 1 May 1992 in the regions referred to in Article 5, the maximum
              amounts set out in paragraph 1 shall be reduced in proportion to the
              time during which they were present.
^                                          Article 10
      Where necessary, the Commission may lay down detailed rules to give effect
^~     to this Title in accordance with the procedure set out in Article 27 of
      Council    Regulation   (EEC)  No   805/688   in  the  case of  suckler  cows,
      Article 30 of Council Regulation (EEC) No 804/68 in the case of dairy cows
      and Article 30 of Council Regulation (EEC) No 3013/89 in the case of ewes
      and/or she-goats.
                                          TITLE III
                                      Other provisions
                                         Article 11
     In addition to the special drought aid, Portugal is authorized to grant,
    from the national budget, aid not exceeding ECU 110 per breeding horse more
    than 12 years old in particularly and very severely affected regions.
   8       0J No L 148, 24.8.1968, p. 4.
 ---pagebreak---                                          - 9-
                                    A r t i c l e 12
1.     The Community shall make a financial contribution not exceeding the
       appropriations entered    for     the purpose      in the budget    to the aid
       provided for in Titles I and II of this Regulation. The aid shall be
       deemed  intervention within the meaning of Article 1(2) of Council
       Regulation (EEC) No 729/709.
2.     The aid  referred  to   in paragraph         1 shall   be converted   using the
       agricultural conversion rate applicable on 1 July 1992.
                                   Article 13
Portugal shall take the measures necessary to ensure that the aid provided
for in this Regulation is paid to those eligible only.             The measures shall
include appropriate penalties     in the case of aid applications containing
false information deliberately or as a result of gross negligence.
Portugal shall   inform the Commission of measures taken to give effect to
this Article.
                                   Article 14
This Regulation   shall  enter   into force on the third day            following  its
application in the Official Journal of the European Communities.
This Regulation shall be binding in its entirety and directly applicable in
a 11 Member States.
Done at Brussels,                                          For the Council
                                                           The President
       OJ No L 94, 28.4.1970, p. 13.
 ---pagebreak---                                            - 10 -
                                          ANNEX I
    Regions particularly affected by the drought
    Alentejo Region
    - Agricultural zone*** 61
    - Concelho*. Mourâo
                                          ANNEX 11
    Regions very severely affected by the drought
    Beira Interior Region
    - Agricultural zones 33, 34, 35, 36 (except for Fornos de Algodres), 37, 38 and
                           39
    RibateJo and Oeste Region
    - Concelho: Gaviâo
    Alentejo Region
    - Agricultural zones   53, 54, 55, 56, 57, 58 (except for Mourâo), 59 and 60
   Algarve Region
   - Agricultural zones    64, 65 (except for Faro and Olhao) and 66
   - ConceI ho : S11ves
                                         ANNEX I I I
   Regions severely affected by the drought
   Tràs-os-Montes Region
   - Agricultural zones 12, 13, 20 (except for s. Joao de Pesqueira) and 21 (except
                          for Carrazeda de Ansiâes)
   - Concelho: Macedo de Cavaleiros
  Beira Interior Region
  - Agricultural zone 40
  - Concelho: Fornos de Algodres
  Beira Litoral Region
  - Agricultural zones 27, 28, 29, 30 and 31
 Ribatejo and Oeste Region
 - Agricultural zones 47, 48, 49 and 50 (except for Gaviâo)
 - Concelhos: Santarem, Cartaxo and Monti Jo
 Alentejo region
 - Agricultural zones 51 and 52
Algarve Region
- Agricultural zones    62, 63 (except for Si Ives) and 65 (except for Castro Marin)
(*) Under D.L. 46/89 of 15 February 1989.
 ---pagebreak---                                                              11
   i. BUDGET HEADING: 102                                              APPROPRIATIONS: ECU 1 093 mi iI ion
                       2129                                                             p.m.
                       2229                                                             p.m.
  2. TITLE: Special treasures for Portuguese farmers affected by the 1991/92 drougit
  3. LEGAL BASIS:
      EEC Treaty, and in particular Articles 42 and 43 thereof
  4. AIMS OF PROJECT:
      Ccmpensation for loss of income suffered by Portuguese farmers as a result of the 1991/92 drought
                                     Period of 12 months   Current Financial Year    Following Financial Year
  5. FINANCIAL IMPLICATIONS                (ECUm)                1992 (ECU m)                1993 (ECU m)
  5.0 EXPENDITURE
       - CHARGED TO THE EC BUDGET
       - (REFUOS/ INTERVENT ION)              93                     49                           49
       - NATIONAL ADMINISTRATION
       -OTHER
  5.1 REVENUE
       - OWN RESOURCES OF THE EC
         (LEVIES/CUSTOMS DUTIES)
       - NATIONAL
                                            1994                1995               1996               1997
  5.0.1 ESTIMATED EXPENDITURE
  5.1.1 ESTIMATED REVENUE
  5.2 METHOD OF CALCULATION:
       ECU (35 + 47) m(A) x 1 192 (DR) - ECU 96 m
       1992 (509É) - ECU 49 m
       1993 (50%) - ECU 49 m
  6.0 CAN THc. PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET?
       (1)                                                                                                   NO
  6.1 CAN THE PROJECT BE FINANCED BY TRANSFtR BETWEEN CHAPTERS OF THE CURRENT BUDGET?
                                                                                                         YES
  6.2 IS A SUPPLEMENTARY BUDGET NECESSARY?
                                                                                                             ND
  6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?
                                                                                                             ND
  OBSERVAT IONS:
I As a result of the drought in Portugal, only around 50% of the appropriations for special aid for Portuguese
• producers wi iI be required - ECU 42 mi i Mon according to the latest estimate of expenditure for such aid
  during the 1992/93 marketing year.
  (1) Financing possible under Chapters 10 and 21.
 ---pagebreak---  ---pagebreak---                                         - Oz -
                                                                      ISSN 0254-1475
                                                               COM (92) 348 final
                                                       DOCUMENTS
 EN                                                                              03
                                 Catalogue number : CB-CO-92-365-EN-C
                                                             ISBN 92-77-46998-6
Office for Official Publications of the European Communities
Lr2985 Luxembourg