CELEX: 51988PC0480
Language: en
Date: 1988-09-19
Title: Proposal for a COUNCIL REGULATION (EEC) laying down special measures for hemp seed (presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
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DOCUMENTS "COM"
COM (88) 480
Vol. 1988/0169
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                               COM ( 88 ) 480  final
                                              Brussels , 11 October 1988
                       Proposai for a
                  COUNCIL REGULATION ( EEC )
        laying down special measures for hemp seed
               ( presented by the Commission )
                                 ÆT A
                               || I 3 üCT. 1388 fl
                                     Sorti du Secrétariat
                                           Général
 ---pagebreak---                                    EXPLANATORï MEMORANDUM
1.    At its 1250th meeting , in Luxembourg on( 13 to 17 June 1988 , the Council
      meeting on agriculture decided that it would , acting on a proposal from
      the Commission , adopt appropriate measures for granting hemp seed an aid
      similar to that for flax .
2.    In accordance with the "Council ’ s wishes , this proposal is based on
      Regulation ( EEC ) No 569 / 76 laying down special measures for linseed ( 1 ).
      As regards the amount of the aid , however , a system based on the
      difference between a guide price fixed annually by the Council and a world
      market pripe determined periodically by the Commission is not felt to be
                  \
      advisable , as it would be extremely difficult , if not impossible , - to
      determine the world price with regularity and precision . It is thus
      proposed that the the Council f ix a flat-rate amount for the aid each
      year . As regards the quantities eligible for aid , however , it is proposed
      that the same arrangements be adopted as for flax seed , the aid being
      granted on the basis of an indicative yield ascertained in the various
      producing areas . Under such a system the arrangements for checking
      quantities eligible for aid are perfectly suited to the present low level
      of production , and that likely in the short term . As with flax seed
      therefore , the system is one of semi-flat rate aid per hectare .
3.    The Commission considers that aid for hemp seed should apply for the first
      time to hemp sown and harvested in 1988 , so that the decline in the crop
                    - J
      can be stopped in 1989 , so reducing the risk of an economic activity
      disappearing which is of importance in some parts of the Community .
      In order to provide producers with adequate information in time for them
      to draw up their cropping plans for 1989 / 90 , and thus hemp to slow down
      the fall in the area under hemp in the Community in 1989 , this proposal
      also includes a transitional measure for 1988 / 89 : a flat-rate aid per
      hectare for all land eligible for the flat-rate aid per hectare provided
      for in Article 4 of Regulation ( EEC ) No 1308 / 70 , provided the recipient
      shows that he has carried out the work normally required for harvesting
      the seed . The amount of aid proposed is 161.5 ECU/ hectare , calculated as
      set out below .
( 1 ) OJ No L 67 , 15.3.1976 , p. 29 .
 ---pagebreak---                                        2
The Commission notes that , because of hemp 's inadequate profitability as
compared with competing crops ( flax , maize , sunflower , rape ), an
increasing number of farmers are dropping it from their rotations or are
cutting the hemp stem before the seeds form . This latter technique avoids
the expense of harvesting the seed but may lead to the disappearance of
the expense of harvesting the seed but may lead to the disappearance of
hemp growing through loss of the income from the seed . Pending a recovery
in hemp fibre or straw prices , which would in themselves help make the
crop more profitable again , a seed price of around 35 ECU / 100 kg would
seem to be necessarry . Given both the present market price ( about
16 ECU / 100 kg ) and the yields generally obtained under normal conditions
in the main Community producing areas ( 850 kg / hectare ), the amount of the
aid should be 161.5 ECU / hectare .
FINANCIAL IMPLICATIONS
It would seem that the majority of growers have , in the hope that the
system of aid for hemp seed will apply for the 1988 / 89 marketing year ,
decided to let their crops come to maturity and to harvest the seed . The
total area sown is estimated at some 3 000 hectares , of^which about 2 500
may be harvested for seed .
This means that Community hemp seed production is likely to amount to some
2 125 tonnes . On the bases set out above , and since the aid will be paid
in 1989 , the- financial implications of the measure may be estimated at
403 750 ECU ( 161.5 ECU / hectare x 2 500 hectares ) for the 1989 budget . This
figure has already been included in the financial implications of the
Council 's decisions on farm prices for 1988 / 89 .
 ---pagebreak---                                      Proposal for a
                              COUNCIL REGULATION ( EEC ) No
                                           of
                     laying down special measures for hemp seed
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
      Î
Having regard to the Treaty establishing the European Economic Community , and in
particular Article 43 thereof ,
Having regard to the proposal from the Commission ,
Having regard to the opinion of the European Parliament ( 1 ),
Having regard to the opinion of the Economic and Social Committee ( 2 ),
Whereas the production of hemp seed is of importance to the economy of certain regions
of the Community ; whereas , in order to promote the expansion of this crop-, which is
subject to direct competition from hemp seed imported from third countries duty free ,
provision should be made for appropriate support ;
Whereas for this purpose the marketing of Community production must ensure producers
fair income ; whereas to this end aid should be granted for " hemp seed produced in the
Community ; whereas in-view of the characteristics of the crop a system for laying down
the aid on a flat-rate basis should be    provided for ; whereas provision should be made
to ensure that expenditure incurred by    Member States as a result of the obligations
arising out of the application of this    Regulation becomes a charge on the Community in
accordance with the regulations on the    financing of the common agricultural policy ;
Whereas certain varieties of hemp contain substances which may harm human health ;
whereas therefore the aid should be granted only for hemp presenting adequate
guarantees as to the content of intoxicating substances in the product as harvested ;
                      «
Whereas , in order to ensure that the measures provided for in this Regulation are
applied under optimum conditions during the 1988 / 89 marketing year , transitional
measures are necessary ; whereas therefore a flat-rate aid per hectare should be
granted for that marketing year ;
HAS ADOPTED THIS REGULATION :
                                                                                      V
 ---pagebreak---                                        - 2 -
                                     Artide 1
1. Every year before 1 August , an aid for hemp seed falling within heading
   CN 1207 99 91 shall be fixed for the Community , for the followig marketing
   year , in accordance with the procedure laid down in Article 43(2 ) of the
   Treaty . The aid shall be fixed at a level which is' fair to producers ,
   account being taken of the supply requirements of the Community .
2. The aid shall be granted only for seed of varieties providing certain
   safeguards to be determined in respect of the content of intoxicating
   substances in the product harvested .
3. The aid shall continue to apply throughout the marketing year in question ;
   this shall cover the period 1 August to 31 July , unless otherwise decided
   by the Council acting by a qualified majority on a proposal from the
   Commission .
                                     Article 2
1. The aid shall be granted for a production figure obtained by applying an
   indicative yield to the surface areas sown and harvested . The indicative
   yield may be differentiated taking into account the yield ascertained in
   the major producing areas in the Community .
2. The Council ;" acting by a qualified majority on a proposal from the
   Commission , shall lay down general rules in accordance with which the aid
   shall be granted and the rules for checking areas sown and harvested
   within the Community with a view to establishing eligibility for the aid .
3. The following shall be determined in accordance with the procedure laid
   down in Article 12 of Council Regulation ( EEC ) No 1308 / 70 of 29 June 1970
   on the common organization of the market in flax and hemp ( 1 ):
   (a)    the indicative yield ;
   (b )   detailed rules for the application of this Article .
                                                                           X
 ---pagebreak---                                            - 3 -
                                         Artide 3
The Member States and the Commission shall communicate to each other the
information necessary for the application of this Regulation . This information
shall be decided upon in accordance with the procedur laid down in Article 12
of Regulation ( EEC ) No 1308 / 70 . Detailed rules concerning the communication
and dissemination of this information shall be adop.ted in accordance with the
same procedure .
                                         Article 4
The provisions on the financing of the common agricultural policy shall apply
to the system of aid provided for in this Regulation .
                                         Article 5
1.    By way of derogation from this Regulation , the aid for hemp seed in
      respect of the 1988 / 89 marketing year shall be 161.5 ECU / hectare . The aid
      shall be granted to the producer in respect of the areas eligible " for the
      aid provided for in Article 4 of Regulation ( EEC ) No 1308 / 70 where the
      producer demonstrates to the satisfaction of the Member State concerned
      that normal operations for harvesting the seed have been carried out .
2.    The operative event within the meaning of Article 5 of Regulation ( EEC )
      No 1676 / 85 (!') as regards eligibility for the aid for hemp seed for the
      1988 / 89 marketing year shall be deemed to have occurred on
      1 September 1988 .
( 1 ) OJ No L 164 , 24.6.1985 , p.   1.
 ---pagebreak---                                         4
                                    Artide 6
This Regulation shall enter into force on the day of its publication in the
Official Journal of the European Communities .
It shall apply for the first time to hemp seed harvested during the 1988 / 89
marketing year .
This Regulation shall be binding in its entirety and directly applicable in
all Member States .
Done at Brussels ,                               For the Council
                                                 The President
                                                                              7
 ---pagebreak---                FICHE FINHNCIERE
 ï . LIGNE BUDGETAIRE :       1269    Autres aides                          CREDITS :    PB 89      p.m .
 2. INTITULE DE LA NESURE s Règlement du Conseil prévoyant des mesures spéciales pour les
     graines de chanvre
î. BASE JURIDIQUE :           Art . 43 du Traité
i. OBJECTIFS DE LA MESURE : Assurer aux prouducteurs communautaires de graines de chanvre
     une rémunération équitable                                                               '
5 . INCIDENCES FINANCIERES                      PERIODE DE 12 MOIS  EXERCICE EN COURS ( 88 )  EXERCICE SUIVANT ( 89 >
5.0 DEPENSES A LA CHARGE
     - DU BUDGET DES CE
         ( RESTITUTIONS / INTERVENTIONS )
     - DES BUDGETS NATIONAUX
                                                     0,4 MECU            NEANT                      0,4 MECU
     - D' AUTRES SECTEURS
5.1 RECETTES                                                                                           (1 )
     - RESSOURCES PROPRES DES CE
         ( PRELEVEMENTS / DROITS DE DOUANE )
     - SUR LE PLAN NATIONAL
5.0.1     PREVISIONS DES DEPENSES
5.1.1     PREVISIONS DES RECETTES
5.2    MODE DE CALCUL :
                 161,5 ECU / Ha x 2.500 HA x 1,071 = 0,4 MECU
6.0    FINANCEMENT POSSIBLE PAR CREDITS INSCRITS AU CHAPITRE CONCERNE DU BUDGET EN COURS D' EXECUTION       oui / MA
6.1    FINANCEMENT POSSIBLE PAR VIREMENT ENTRE CHAPITRES DU BUDGET EN COURS D'.EXECUTION
6.2    NECESSITE D' UN BUDGET SUPPLEMENTAIRE                                                                hWiMv
6.3    CREDITS A INSCRIRE DANS LES BUDGETS FUTURS                                                           oui / IA
OBSERVATIONS :
       ( 1 ) Cette incidence financière a déjà été retenue dans les incidences
              financières de la décision du Conseil sur les prix agricoles 1988/ 89 .
                                                                                                                      ?