{ "activities": [ { "date": "2003-11-18T00:00:00", "docs": [ { "url": "http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2003&nu_doc=0698", "text": [ "
\n
PURPOSE : to establish common rules for direct support schemes\nunder the common agricultural policy and establishing certain\nsupport schemes for farmers.
\nPROPOSED ACT : Council Regulation.
\nCONTENT : the Commission has presented proposals aiming to reform\nthe CAP rules concerning cotton, olive oil and table olives,\ntobacco in order to enhance competition, create a stronger\nmarket-orientation, improve environmental respect, stabilise\nincomes for farmers and respect the situation of producers in least\nfavoured areas.
\nSpecific circumstances prevail as regards the sectors of cotton,\nolive and tobacco, which show a tendency to concentrate their\nproduction in regions that are notably lagging behind in their\neconomic development. This proposal takes into account the\npotential impact of a full de-coupling in these sectors, in\nparticular the risk of production abandonment and a declining\ncompetitiveness of rural areas. For that reason, a part of the\nexpenditure should continue to be sector-specific in the case of\ncotton and olive cultivation and the integration of raw tobacco in\nthe single payment scheme should be carried out gradually. As far\nas hops is concerned, Member States may retain a percentage of the\naid to allow for a coupled aid.
\n1) COTTON : the Commission proposes to transfer the part of the\nEAGGF expenditure for cotton that was destined to producer support\nduring the 2000-2002 reference period, into the funding of two\nsupport measures, namely, the single payment and a new
\nproduction aid, granted as an area payment. The budget destined to\ncover both measures is established on the basis of the average\nexpenditure on aid to this sector in the reference years reduced by\nthe amounts that were received by the ginners but not necessarily\ntransferred to the producers.
\nThe total amount to be deducted from the average budget spent on\nproduction aid during the reference period is EUR 107,5 million.\nConsidering that the total average budget is of EUR 803 million,\nthe total amount to be allowed to the single payment scheme and the\nnew production aid for cotton is EUR 695,8 million, distributed as\nfollows: EUR 504,4 million for Greece, EUR 190,8 million for Spain\nand EUR 0,565 million for Portugal. It is proposed that 40% of the\nbudget envelope for producer support be destined to the aid per\nhectare. On the basis of the above mentioned EUR 695,8 million\nbudget, this would correspond to EUR 278,5 million, i.e. EUR 202\nmillion in Greece, EUR 76,3 million in Spain and EUR 0,2 million in\nPortugal.
\nFor environmental and quality reasons, the areas on which cotton\ncan be grown and the appropriate varieties that can be sown will\nhave to be authorised by Member States.
\nAccordingly, the maximum area is proposed at 85 000 ha in Spain,\ni.e. 5% below the average eligible area for the period 2000/01 to\n2002/03. In Portugal, where there have been no overshoots of the\nNGQ, the maximum area can be set at 360 ha, corresponding to the\naverage eligible area in 2000/01 to 2002/03.
\nIn the light of the total budget available for direct product\nsupport for cotton, and taking into account the 40% share allocated\nto production aid, the balance of the budget available for direct\nincome aid is EUR 302,4 million in Greece, EUR 114,5 million in\nSpain and EUR 0,365 million in Portugal, i.e. a total of EUR 417,3\nmillion.
\nThe entitlements per producer will have to be calculated on\nthebasis of the eligible areas under cotton in the marketing years\n2000/01 to 2002/03. On average, these total 469 816 ha, i.e. 380\n436 ha in Greece, 89 023 ha in Spain and 357 ha in Portugal.
\nConsequently, the direct income aid to producers in respect of\neligible areas under cotton in 2000/01 to 2002/03 shall be\ncalculated on the basis of EUR 795 per hectare in Greece, EUR 1 286\nper hectare in Spain and EUR 1 022 per hectare in Portugal.
\nThe inter-branch organisations and their aid differentiation scales\nwill need to be approved by the Member State concerned. These\norganisations are to be financed by its members, but as an\nencouragement to the sector the Community should contribute to\ntheir activities via an increase of EUR 10 in the production aid\nper eligible hectare. The total budget for the Community for this\npurpose would thus be EUR 4,3 million.
\nA grower not belonging to any inter-branch organisation would\nreceive the unit amount of aid. It is conceived that a financial\ntransfer for rural development measures in the cotton production\nareas should be made.
\nThe budget corresponds to the amount not necessarily transferred to\nproducers in the current system reduced by the amount provided for\nthe encouragement of the setting-up of inter-branch organisations.\nThis results in EUR 102,9 million, to be shared out between the\nMember States on the basis of the average area eligible for aid in\nthe reference period. These amounts would be an integral part of\nthe second pillar of the CAP.
\n2) RAW TOBACCO : the proposed reform should begin with the transfer\nof all or part of the current tobacco premium payment into\nentitlements for the single payment. The Commission states that the\ngradual de-coupling of the current aid scheme for raw tobacco\nshould be accompanied by the setting up, in the framework of rural\ndevelopment, of a financial envelope for restructuring concerned\nareas.
\nThe proposed reform should begin with the transfer of all or part\nof the current tobacco premium payment into entitlements for the\nsingle payment.
\nThe restructuring envelope will be the difference between a total\nenvelope of EUR 955 million and the proposed coupled and de-coupled\naid as well as payments made under the tobacco quota buy-back\nscheme.
\nEach Member State should receive an amount corresponding to the\ndifference between its historical expenditure and the proposed\ncoupled and de-coupled aid, to be used in favour of tobacco\nproducing regions.
\nAs regards the premium that will continue to be granted for tobacco\nproduction during the harvest years 2005 and 2006, an amount equal\nto 4% for the first year and 5% for the second year should be\ntransferred to the Community Tobacco Fund, for the
\npurpose of financing actions of information for improving public\nawareness of the harmful effects of tobacco consumption.
\n3) OLIVE GROVES : income support will be integrated into the new\nsingle payment scheme. It will be equal to a percentage of the\naverage production aid for olive oil and table olives granted\nduring the reference period. The surface area to be taken into\nconsideration (henceforth expressed as \"olive GIS-ha\") will be\nestablished by the Member States on the basis of the data in a\ngeographical information system (GIS) for olive cultivation,\nincorporated in the Integrated Administration and Control\nSystem
\n(IACS) and constantly kept up to date. The method of calculatingthe\nnumber of olive GIS-ha will be established by the Commission for\nthe entire Community in such a way as to take account of the number\nof olive trees and their position on the ground.
\nThe Commission considers that it would be appropriate to transfer\n60% of the existing aid for olive oil to the single payment scheme.\nHowever, this percentage should not be applied to holdings of less\nthan 0,3 olive GIS-ha since the entire amount of the payments\nreceived by them during the reference period will be allocated to\nthe single payment. In order to ensure that the new aid system\ncannot alter the fragile balance currently
\nprevailing on the olive oil market, access to the single payment\nscheme must be limited to olive-growing areas existing prior to 1\nMay 1998 and to new plantings provided for under the programmes\napproved by the Commission.
\nEach Member State will have a national envelope equal to 40% of the\ndirect aid paid to olive-growing holdings of more than 0,3 olive\nGIS-ha. The aid will be granted according to procedures to be\nspecified by the Commission and will follow the principles such as\nthe surface area of the olive grove, expressed as a number of olive\nGIS-ha; a record of the existence of the olive grove prior to 1 May\n1998; Member States are to define up to five categories of olive\ngroves which are eligible for aid on the basis of their\nenvironmental and social value; Member States will set the amount\nof aid corresponding to each category, which should not exceed\nmaintenance costs excluding harvesting costs; granting of the aid\nin the years following its introduction will be conditional upon\nthe number of olive trees remaining the same as at 1 January 2005,\nsubject to a variation of no more than 10%, and upon the\ncharacteristics of the particular category of olive grove for which\nthe aid was requested being preserved; for reasons of\nsimplification, only applications for amounts of over EUR 50 will\nbe accepted.
\n4) HOPS : the support scheme for hops is to be integrated fully in\nCouncil Regulation 1782/2003/EC. This market is primarily marked by\na continuous search for balance between the offer of hops and the\nrequirements of the beer industry. Two remarkable
\nphenomena characterised the market trend during the last\ndecade:
\n- the consumer's preference developed towards less hopped beers and\ntherefore the demand for hops fell;
\n- conversion towards varieties with a high alpha acid content\nresulted in a too high an offer of hops on the market. This
\nsituation caused the need to reduce the areas under hop.
\nThe present situation which shows a sector fully directed towards\nthe requirements of the market and which tends to answer in a\nsatisfactorily manner leads to envisage that the integration of the\nhop production aid scheme in the de-coupled single
\npayment scheme should allow the safeguarding of hop production in\nthe Community. That being so, this proposal envisages the\npossibility for the Member States to maintain a coupled aid in\norder to take into account special production conditions or
\nspecific circumstances in the production regions.
\nFINANCIAL IMPLICATIONS :
\n- Budget lines : B1-12, B1-141, B1-17, B1-181, B1-40;
\n- Appropriations : EUR 8906 million;
\n- Estimated expenditure : decoupled aid, coupled aid, market\nmeasures and transfer to rural development : EUR 4110 millions per\nyear;
\n- Impact of the measure : EUR -113 million per year.
\n
\n" ], "title": "COM(2003)0698", "type": "Legislative proposal published", "celexid": "CELEX:52003PC0698(02):EN" } ], "type": "Legislative proposal", "body": "EC", "commission": [ { "DG": "Agriculture and Rural Development" } ] }, { "date": "2003-12-03T00:00:00", "body": "EP", "type": "Committee referral announced in Parliament, 1st reading/single reading", "committees": [ { "body": "EP", "responsible": true, "committee": "AGRI", "date": [ "2003-11-25T00:00:00", "2003-11-25T00:00:00", "2003-11-25T00:00:00", "2003-11-25T00:00:00", "2003-11-25T00:00:00" ], "committee_full": "Agriculture and Rural Development", "rapporteur": [ { "group": "PPE-DE", "name": "DAUL Joseph" }, { "group": "PPE-DE", "name": "MAYER Xaver" }, { "group": "PSE", "name": "LAVARRA Vincenzo" }, { "group": "PSE", "name": "RODR\u00cdGUEZ RAMOS Mar\u00eda" }, { "group": "UEN", "name": "BERLATO Sergio" } ] }, { "body": "EP", "responsible": false, "committee": "BUDG", "date": "2003-12-16T00:00:00", "committee_full": "Budgets", "rapporteur": [ { "group": "ELDR", "name": "MULDER Jan" } ] } ] }, { "date": "2003-12-17T00:00:00", "docs": [ { "type": "Committee draft report", "title": "PE329.836" } ], "body": "EP", "type": "Committee draft report" }, { "date": "2003-12-22T00:00:00", "body": "CSL", "type": "Council Meeting", "council": "Environment", "meeting_id": "2556" }, { "body": "EP", "committees": [ { "body": "EP", "responsible": true, "committee": "AGRI", "date": [ "2003-11-25T00:00:00", "2003-11-25T00:00:00", "2003-11-25T00:00:00", "2003-11-25T00:00:00", "2003-11-25T00:00:00" ], "committee_full": "Agriculture and Rural Development", "rapporteur": [ { "group": "PPE-DE", "name": "DAUL Joseph" }, { "group": "PPE-DE", "name": "MAYER Xaver" }, { "group": "PSE", "name": "LAVARRA Vincenzo" }, { "group": "PSE", "name": "RODR\u00cdGUEZ RAMOS Mar\u00eda" }, { "group": "UEN", "name": "BERLATO Sergio" } ] }, { "body": "EP", "responsible": false, "committee": "BUDG", "date": "2003-12-16T00:00:00", "committee_full": "Budgets", "rapporteur": [ { "group": "ELDR", "name": "MULDER Jan" } ] } ], "docs": [ { "url": "http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A5-2004-0123&language=EN", "type": "Committee report tabled for plenary, 1st reading/single reading", "title": "A5-0123/2004" } ], "text": [ "
\n
The committee adopted the report tabled by its chairman,\nJoseph DAUL (EPP-ED, F), in conjunction with four co-rapporteurs\n(María RODRÍGUEZ RAMOS (PES, E) for cotton, Sergio\nBERLATO (UEN, I) for tobacco, Vincenzo LAVARRA (PES, I) for olive\noil and Xaver MAYER (EPP-ED, D) for hops) amending the proposal\nunder the consultation procedure.
\nThe committee highlighted its concern about the negative impact\nthat a drastic decoupling of aid could have on the poorest regions\nof Italy, Spain, Greece and Portugal, where cotton, olive and\ntobacco production is concentrated. It pointed out that, \"in\naccordance with the agreement on CAP reform reached in Luxembourg\nin June 2003 the single farm payment scheme should be implemented\nin such a way as not to lead to the discontinuation of production\"\nand warned that support for these sectors should be decoupled \"on\nthe basis of specific arrangements intended to ensure that the\nincomes of all those engaged in agriculture are maintained and that\nthe fabric of rural society is safeguarded\".
\nTurning to the four sectors concerned, MEPs adopted a series of\namendments as follows:
\n- Cotton: MEPs called for greater flexibility in implementing the\nreform and suggested that Member States be allowed to allocate up\nto 80% of aid for production (in the form of area payments\ndistributed per hectare), instead of 40% as proposed by the\nCommission, with the remaining 20% (as opposed to 60%) being\nallocated as direct income aid to farmers in the form of the\n\"single payment scheme\". The rapporteur for the cotton sector\nargued that the Commission's proposed system of payments, involving\na large cut in production aid, would lead to production being\nabandoned in regions already facing high unemployment. MEPs also\nwanted to allow a sufficient transitional period and therefore\nproposed that the reform should enter into force only in 2007.\nMoreover, they called on the Commission to present by January 2006\nan impact study on this decoupling of aid for the cotton-producing\nregions, including a possible proposal to modify the percentage\nintended for aid per hectare;
\n- Tobacco: whereas the Commission was proposing the total\ndecoupling of aid for this sector, the committee said that this\nwould cause tobacco-growing to be abandoned in all production\nareas, which would have a severe socio-economic impact. MEPs\ntherefore called for partial decoupling and said that, \"to deal\nwith specific situations with the desired flexibility\", only 30% of\naid should be transferred into the single payment scheme. In view\nof the differences between producer Member States and between\nproduct varieties, they said that the remaining part of the aid\n(70%) should be used by the Member States in order to maintain\nproduction in areas where its continuation was essential \"on\nobjective economic and social grounds\". Furthermore, they proposed\nthat up to 10% of this remaining part of the aid could be used by\nthe Member States for measures intended to improve product quality\nor for restructuring and retraining policies in the sector. In\naddition, the committee called for a general multiannual programme\nto be put in place as of 2006 for the restructuring and conversion\nof the tobacco sector in the relevant regions. It would be funded\nby the new structural fund for rural development proposed by the\nCommission. Lastly, MEPs were opposed to the transfer of payments\nto the Community Tobacco Fund, arguing that the Commission itself\nhad acknowledged that there was no link between European tobacco\nproduction and the EU's anti-smoking policy;
\n- Olive oil: whereas the Commission was proposing that 60% of aid\nshould be allocated to the the single payment scheme, MEPs said\nthat 60% should be a minimum and that the Member States should have\nthe right to increase this percentage \"provided that such a measure\ndoes not result in increasing the risk of abandoning or grubbing up\ntrees\". They also proposed that the \"coupled\" percentage (i.e. the\nremaining 40% or less) which will be retained by the Member States\nas national envelopes to be distributed among farmers should be\nused inter alia to create a national reserve to support young\nfarmers and for measures to improve quality (including organic\nproduction and harvesting by hand). In view of the specific nature\nof olive growing, the committee also said that the average yields\nin a homogenous area should be taken as a reference for the purpose\nof setting the level of decoupled aid;
\n- Hops: while supporting the Commission's proposals on the\ndecoupling of aid, MEPs said that
\nup to 25% of the coupled aid should be used to finance recognised\nproducer groups which play an important role in the hop\nsector.
\n
\n" ], "date": "2004-02-19T00:00:00", "type": "Committee report tabled for plenary, 1st reading/single reading" }, { "date": "2004-02-25T00:00:00", "docs": [ { "url": "http://eescopinions.eesc.europa.eu/eescopiniondocument.aspx?language=EN&docnr=0323&year=2004", "type": "Economic and Social Committee: opinion, report", "title": "CES0323/2004" }, { "url": "http://eur-lex.europa.eu/JOHtml.do?uri=OJ:C:2004:110:SOM:EN:HTML", "type": "Economic and Social Committee: opinion, report", "title": "OJ C 110 30.04.2004, p. 0116-0124" } ], "body": "ESOC", "type": "Economic and Social Committee: opinion, report" }, { "date": "2004-03-09T00:00:00", "body": "EP", "type": "Debate in Parliament" }, { "date": "2004-03-10T00:00:00", "docs": [ { "url": "http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P5-TA-2004-0164", "text": [ "
\n
The European Parliament adopted a resolution drafted by Joseph\nDAUL (EPP-ED, F) in conjunction with four co-rapporteurs (Maria\nRODRIGUEZ RAMOS (PES, E) for cotton, Sergio BERLATO (UEN, I) for\ntobacco, Vincenzo LAVARRA (PES, I) for olive oil and Xaver MAYER\n(EPP-ED, D) for hops). Parliament made some significant amendments\nto the proposal. (Please see the document dated 19/02/04.)
\nCotton: to recap, Parliament stated that in the case of cotton 80\nper cent of aid should be still linked to production, instead of 40\nper cent, as the Commission suggested. The Commission proposed for\nthe cotton sector a partial decoupling of aid: 60 per cent would be\na direct income aid to the farmers and 40 per cent would remain as\narea payments (distributed per hectare). The distribution of the\nfunds would be measured according to a reference period - the\ncultivation during 2000-2002. The rest of the expenses for cotton\nwould be transferred to the rural development measures and for the\nrestructuring of the regions concerned. Parliament rejected those\nmeasures, on the grounds that such a system of payments would\nprovoke the abandonment of production in regions which are fairly\npoor. Therefore, 80 per cent of the aid should remain as area\npayments and the reform should enter into force only in 2007.\nParliament stated that cotton is cultivated essentially in regions\nwhose GDP is among the lowest in the EU and whose economy is\nclosely bound up with agriculture. In these areas, cotton growing\nand the ginning activity which supports it are major sources of\nincome and employment, accounting in some localities for over 80 %\nof activity. Furthermore, in certain areas, in agronomic terms, the\nsoil conditions are such that to introduce alternative crops would\nbe impossible in the short term.
\nTobacco: in brief, 70 per cent of the financial payments should\nremain linked to production. In view of the differences between\nproducer Member States and between product varieties, the Member\nStates must use the part of the aid not included in the single\npayment with great flexibility in order to maintain the production\nin areas where the continuation is essential for social and\neconomic reasons. Furthermore, up to 10 per cent from the 70 per\ncent of aid linked to production may be used by the States for\nmeasures intended to improve product quality or for restructuring\npolicies in the sector. However, the Commission wants the total\ndecoupling of aid for tobacco, as a transitional stage towards the\ngradual disappearance of the tobacco payments.
\nParliament also stated that if certain variety groups face\nparticular adverse market conditions, Member States might implement\na programme for buying back entitlements to enable producers, on an\nindividual and voluntary basis, to abandon the business. The amount\nto finance this programme shall be equal to the amount of aid\nprovided for each producer under Article 143k. It shall be spread\nover a number of years, up to a maximum of five years, with effect\nfrom the year in which the producer joins the programme for buying\nback entitlements, up until 31 December 2013 at the latest.
\nOlive oil: whereas the Commission proposes decoupling only 60 per\ncent of aid, Parliament called for \"a minimum of 60 per cent\" and\nfor the Member States to have the right to increase this to 100 per\ncent. The coupled percentage will be given directly to the Member\nStates so they can distribute it among farmers as an areapayment\n(either per hectare or per number of trees). The farmers will be\nforced to meet social, landscape and quality criteria. The payments\nshould ensure the quality of the olive oil and that consideration\nshould be given to measures such as organic production,\nhand-harvesting and other measures not related to quantity.\nTherefore part of the funds linked to production could be kept by\nthe Member States as \"special aid\" for quality standards.
\n
\n" ], "type": "Decision by Parliament, 1st reading/single reading", "title": "T5-0164/2004" }, { "url": "http://eur-lex.europa.eu/JOHtml.do?uri=OJ:C:2004:102E:SOM:EN:HTML", "type": "Text adopted by Parliament, 1st reading/single reading", "title": "OJ C 102 28.04.2004, p. 0520-0601 E" } ], "body": "EP", "type": "Text adopted by Parliament, 1st reading/single reading" }, { "date": "2004-04-21T00:00:00", "body": "", "type": "Act adopted by Council after consultation of Parliament" }, { "date": "2004-04-21T00:00:00", "body": "CSL", "type": "Council Meeting", "council": "Agriculture and Fisheries", "meeting_id": "2575" }, { "date": "2004-04-29T00:00:00", "body": "EP", "type": "End of procedure in Parliament" }, { "date": "2004-04-30T00:00:00", "text": [ "
\n

PURPOSE : to establish common rules for direct support schemes\nunder the common agricultural policy and establishing certain\nsupport schemes for farmers.

\n

LEGISLATIVE ACT : Council Regulation 864/2004/EC amending\nRegulation 1782/2003/EC establishing common rules for direct\nsupport schemes under the common agricultural policy and\nestablishing certain support schemes for farmers, and adapting it\nby reason of the accession of the Czech Republic, Estonia, Cyprus,\nLatvia, Lithuania, Hungary, Malta, Poland, Slovenia and
\n
\nSlovakia to the European Union (Corrigendum to the Regulation\npublished OJ L 161 of 30 April 2004).

\n

CONTENT : the Council decided to profoundly reform the Common\nAgricultural Policy (CAP) support for tobacco, olive oil and table\nolives, cotton and hops. These reforms will lead to enhanced\ncompetitiveness, stronger market-orientation, improved\nenvironmental respect, less trade distortions and stabilised\nincomes for farmers. For the four sectors concerned, a significant\npart of the current production-linked payments will be transferred\nto the de-coupled single payment. The Danish, Spanish and Swedish\ndelegations expressed their intention to vote against.
\n
\nThe reform was envisaged as a follow-up to the CAP reform agreed in\nJune 2003. Two Regulations have been adopted : the first amends\nRegulation 1782/2003/EC establishing common rules for direct\nsupport schemes under the common agricultural policy (horizontal\nlegislation) and the second to reform the common organisation of\nthe market in the olive oil and table olives (CNS/2003/0279).
\n
\nThe main changes in the compromise amending the Commission\nproposals are as follows:
\n
\n- entry into force of the Reform: the Reform package for cotton,\nolive oil and tobacco will begin in 2006 instead of 2005 as stated\nin the Commission proposals. For 2005, the current tobacco regime\ntogether with the aids fixed for 2004 will be applied. For olive\noil, the current regime will continue to
\n
\napply for the marketing year 2004/2005;

\n

- the use of agricultural use of the land: a measure has been\nincluded which stipulates that Member States may decide to allow\nsecondary crops to be cultivated on the eligible hectares during a\nperiod of maximum three months starting each year on 15 August;\nhowever, at the request of a Member State,
\n
\nthis date is modified for regions where cereals are normally\nharvested earlier for climatic reasons.
\n
\n- COTTON : the rate of the decoupling payment has been increased to\n65% instead of the 60% initially proposed, the coupled part of the\npayment being now at 35%. The amount to be transferred to the\nsecond pillar is reduced by EUR 81 million instead of the EUR 103\nmillion initially provided for. The base area for Greece is\nincreased to 370 000 hectares instead of 340 000 with a different\namount of coupled aid based on the surface area (EUR 594 /hectare\nfor the first 300 000 hectares, EUR 342,85 /hectare for the\nremaining 70 000 hectares). Where the 370 000 hectares base area is\noverrun, the aid granted to the 70 000 hectares is reduced\nproportionately in order to comply with the global envelope for the\ncoupled aid. For Spain, the maximum area eligible for aid has been\nreduced from 85,000 ha to 70,000 ha and the area aid has been\nincreased from 851 EUR/ha to 1,039 EUR/ha. For Portugal, the amount\nof the aid per eligible hectare shall be EUR 556.

\n

- OLIVE OIL : the decoupling rate will be a minimum of 60%.\nMember States may decide to increase this rate. A distinction in\nthe reference period for the calculation of the reference amount\nfor each olive farmer has been established and will comprise four\nmarketing years instead of the three marketing years initially\nproposed (2000/2002). The three-year reference period 2000/2002\nis
\n
\nhowever maintained for the calculation of the national ceiling for\nolive oil. Member States may withhold for quality measures up to\n10% of the olive oil complement in the national ceiling. The\nnational ceilings for France and Portugal will take into account\nthe aid to be granted to new plantings after 1 May 1998 under\nprogrammes approved by the Commission. A corresponding amount of\nEUR 1 million for France and EUR 19 million for Portugal will be\nadded. For Spain, the national budgetary envelope has been\nincreased by EUR 20 million.

\n

- TOBACCO : the 3 bands (below 3,5 tonnes, between 3,5 and 10\ntonnes, over 10 tonnes) initially proposed to set a different rate\nof decoupling, from 2005 to 2007, have been abolished. A\ntransitional scheme towards full decoupling has been set up from\n2006 to 2010. During this period, the rate of decoupling for\ntobacco producers will be set at a minimum of 40% of the tobacco\nreference amount whilst a maximum 60% of this reference amount will\nbe maintained as a coupled payment. This coupled payment will be\ngranted to producers situated in Objective 1 regions or tobacco\nfarmers producing varieties of a certain quality. Other objective\ncriteria may also be taken into account by the Commission. As from\n2010, tobacco aid will be fully decoupled with 50% of the reference\namount included in the Single Farm Payment (SFP) and 50%\ntransferred to the restructuring envelope.
\n
\n- HOPS : Member States may grant up to 25% of the aid to farmers\nproducing hops and to producer organisations recognised under the\ncurrent rules of the common market organisation for hops.

\n

ENTRY INTO FORCE : 01/05/2004. This Regulation shall apply as\nfrom 1 January 2006 except for certain provisions which shall apply\nas from the entry into force of this Regulation or as from\n01/01/2005.

\n
\n" ], "type": "Final act published in Official Journal", "docs": [ { "url": "http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32004R0864", "title": "Regulation 2004/864" }, { "url": "http://eur-lex.europa.eu/JOHtml.do?uri=OJ:L:2004:206:SOM:EN:HTML", "title": "OJ\u00a0L 206 09.06.2004, p. 0020-0036" } ] } ], "votes": [], "committees": [ { "body": "EP", "responsible": true, "committee": "AGRI", "date": [ "2003-11-25T00:00:00", "2003-11-25T00:00:00", "2003-11-25T00:00:00", "2003-11-25T00:00:00", "2003-11-25T00:00:00" ], "committee_full": "Agriculture and Rural Development", "rapporteur": [ { "group": "PPE-DE", "name": "DAUL Joseph" }, { "group": "PPE-DE", "name": "MAYER Xaver" }, { "group": "PSE", "name": "LAVARRA Vincenzo" }, { "group": "PSE", "name": "RODR\u00cdGUEZ RAMOS Mar\u00eda" }, { "group": "UEN", "name": "BERLATO Sergio" } ] }, { "body": "EP", "responsible": false, "committee": "BUDG", "date": "2003-12-16T00:00:00", "committee_full": "Budgets", "rapporteur": [ { "group": "ELDR", "name": "MULDER Jan" } ] } ], "links": { "European Commission": { "url": "http://ec.europa.eu/prelex/liste_resultats.cfm?CL=en&ReqId=0&DocType=CNS&DocYear=2003&DocNum=0278", "title": "PreLex" } }, "comeets": [], "meta": { "source": "http://www.europarl.europa.eu/oeil/popups/ficheprocedure.do?reference=2003/0278(CNS)", "created": "2012-02-09T22:08:50.614000" }, "changes": { "2012-02-09T22:08:50": [ { "data": [ { "date": "2003-11-18T00:00:00", "docs": [ { "url": "http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2003&nu_doc=0698", "text": [ "
\n
PURPOSE : to establish common rules for direct support schemes\nunder the common agricultural policy and establishing certain\nsupport schemes for farmers.
\nPROPOSED ACT : Council Regulation.
\nCONTENT : the Commission has presented proposals aiming to reform\nthe CAP rules concerning cotton, olive oil and table olives,\ntobacco in order to enhance competition, create a stronger\nmarket-orientation, improve environmental respect, stabilise\nincomes for farmers and respect the situation of producers in least\nfavoured areas.
\nSpecific circumstances prevail as regards the sectors of cotton,\nolive and tobacco, which show a tendency to concentrate their\nproduction in regions that are notably lagging behind in their\neconomic development. This proposal takes into account the\npotential impact of a full de-coupling in these sectors, in\nparticular the risk of production abandonment and a declining\ncompetitiveness of rural areas. For that reason, a part of the\nexpenditure should continue to be sector-specific in the case of\ncotton and olive cultivation and the integration of raw tobacco in\nthe single payment scheme should be carried out gradually. As far\nas hops is concerned, Member States may retain a percentage of the\naid to allow for a coupled aid.
\n1) COTTON : the Commission proposes to transfer the part of the\nEAGGF expenditure for cotton that was destined to producer support\nduring the 2000-2002 reference period, into the funding of two\nsupport measures, namely, the single payment and a new
\nproduction aid, granted as an area payment. The budget destined to\ncover both measures is established on the basis of the average\nexpenditure on aid to this sector in the reference years reduced by\nthe amounts that were received by the ginners but not necessarily\ntransferred to the producers.
\nThe total amount to be deducted from the average budget spent on\nproduction aid during the reference period is EUR 107,5 million.\nConsidering that the total average budget is of EUR 803 million,\nthe total amount to be allowed to the single payment scheme and the\nnew production aid for cotton is EUR 695,8 million, distributed as\nfollows: EUR 504,4 million for Greece, EUR 190,8 million for Spain\nand EUR 0,565 million for Portugal. It is proposed that 40% of the\nbudget envelope for producer support be destined to the aid per\nhectare. On the basis of the above mentioned EUR 695,8 million\nbudget, this would correspond to EUR 278,5 million, i.e. EUR 202\nmillion in Greece, EUR 76,3 million in Spain and EUR 0,2 million in\nPortugal.
\nFor environmental and quality reasons, the areas on which cotton\ncan be grown and the appropriate varieties that can be sown will\nhave to be authorised by Member States.
\nAccordingly, the maximum area is proposed at 85 000 ha in Spain,\ni.e. 5% below the average eligible area for the period 2000/01 to\n2002/03. In Portugal, where there have been no overshoots of the\nNGQ, the maximum area can be set at 360 ha, corresponding to the\naverage eligible area in 2000/01 to 2002/03.
\nIn the light of the total budget available for direct product\nsupport for cotton, and taking into account the 40% share allocated\nto production aid, the balance of the budget available for direct\nincome aid is EUR 302,4 million in Greece, EUR 114,5 million in\nSpain and EUR 0,365 million in Portugal, i.e. a total of EUR 417,3\nmillion.
\nThe entitlements per producer will have to be calculated on\nthebasis of the eligible areas under cotton in the marketing years\n2000/01 to 2002/03. On average, these total 469 816 ha, i.e. 380\n436 ha in Greece, 89 023 ha in Spain and 357 ha in Portugal.
\nConsequently, the direct income aid to producers in respect of\neligible areas under cotton in 2000/01 to 2002/03 shall be\ncalculated on the basis of EUR 795 per hectare in Greece, EUR 1 286\nper hectare in Spain and EUR 1 022 per hectare in Portugal.
\nThe inter-branch organisations and their aid differentiation scales\nwill need to be approved by the Member State concerned. These\norganisations are to be financed by its members, but as an\nencouragement to the sector the Community should contribute to\ntheir activities via an increase of EUR 10 in the production aid\nper eligible hectare. The total budget for the Community for this\npurpose would thus be EUR 4,3 million.
\nA grower not belonging to any inter-branch organisation would\nreceive the unit amount of aid. It is conceived that a financial\ntransfer for rural development measures in the cotton production\nareas should be made.
\nThe budget corresponds to the amount not necessarily transferred to\nproducers in the current system reduced by the amount provided for\nthe encouragement of the setting-up of inter-branch organisations.\nThis results in EUR 102,9 million, to be shared out between the\nMember States on the basis of the average area eligible for aid in\nthe reference period. These amounts would be an integral part of\nthe second pillar of the CAP.
\n2) RAW TOBACCO : the proposed reform should begin with the transfer\nof all or part of the current tobacco premium payment into\nentitlements for the single payment. The Commission states that the\ngradual de-coupling of the current aid scheme for raw tobacco\nshould be accompanied by the setting up, in the framework of rural\ndevelopment, of a financial envelope for restructuring concerned\nareas.
\nThe proposed reform should begin with the transfer of all or part\nof the current tobacco premium payment into entitlements for the\nsingle payment.
\nThe restructuring envelope will be the difference between a total\nenvelope of EUR 955 million and the proposed coupled and de-coupled\naid as well as payments made under the tobacco quota buy-back\nscheme.
\nEach Member State should receive an amount corresponding to the\ndifference between its historical expenditure and the proposed\ncoupled and de-coupled aid, to be used in favour of tobacco\nproducing regions.
\nAs regards the premium that will continue to be granted for tobacco\nproduction during the harvest years 2005 and 2006, an amount equal\nto 4% for the first year and 5% for the second year should be\ntransferred to the Community Tobacco Fund, for the
\npurpose of financing actions of information for improving public\nawareness of the harmful effects of tobacco consumption.
\n3) OLIVE GROVES : income support will be integrated into the new\nsingle payment scheme. It will be equal to a percentage of the\naverage production aid for olive oil and table olives granted\nduring the reference period. The surface area to be taken into\nconsideration (henceforth expressed as \"olive GIS-ha\") will be\nestablished by the Member States on the basis of the data in a\ngeographical information system (GIS) for olive cultivation,\nincorporated in the Integrated Administration and Control\nSystem
\n(IACS) and constantly kept up to date. The method of calculatingthe\nnumber of olive GIS-ha will be established by the Commission for\nthe entire Community in such a way as to take account of the number\nof olive trees and their position on the ground.
\nThe Commission considers that it would be appropriate to transfer\n60% of the existing aid for olive oil to the single payment scheme.\nHowever, this percentage should not be applied to holdings of less\nthan 0,3 olive GIS-ha since the entire amount of the payments\nreceived by them during the reference period will be allocated to\nthe single payment. In order to ensure that the new aid system\ncannot alter the fragile balance currently
\nprevailing on the olive oil market, access to the single payment\nscheme must be limited to olive-growing areas existing prior to 1\nMay 1998 and to new plantings provided for under the programmes\napproved by the Commission.
\nEach Member State will have a national envelope equal to 40% of the\ndirect aid paid to olive-growing holdings of more than 0,3 olive\nGIS-ha. The aid will be granted according to procedures to be\nspecified by the Commission and will follow the principles such as\nthe surface area of the olive grove, expressed as a number of olive\nGIS-ha; a record of the existence of the olive grove prior to 1 May\n1998; Member States are to define up to five categories of olive\ngroves which are eligible for aid on the basis of their\nenvironmental and social value; Member States will set the amount\nof aid corresponding to each category, which should not exceed\nmaintenance costs excluding harvesting costs; granting of the aid\nin the years following its introduction will be conditional upon\nthe number of olive trees remaining the same as at 1 January 2005,\nsubject to a variation of no more than 10%, and upon the\ncharacteristics of the particular category of olive grove for which\nthe aid was requested being preserved; for reasons of\nsimplification, only applications for amounts of over EUR 50 will\nbe accepted.
\n4) HOPS : the support scheme for hops is to be integrated fully in\nCouncil Regulation 1782/2003/EC. This market is primarily marked by\na continuous search for balance between the offer of hops and the\nrequirements of the beer industry. Two remarkable
\nphenomena characterised the market trend during the last\ndecade:
\n- the consumer's preference developed towards less hopped beers and\ntherefore the demand for hops fell;
\n- conversion towards varieties with a high alpha acid content\nresulted in a too high an offer of hops on the market. This
\nsituation caused the need to reduce the areas under hop.
\nThe present situation which shows a sector fully directed towards\nthe requirements of the market and which tends to answer in a\nsatisfactorily manner leads to envisage that the integration of the\nhop production aid scheme in the de-coupled single
\npayment scheme should allow the safeguarding of hop production in\nthe Community. That being so, this proposal envisages the\npossibility for the Member States to maintain a coupled aid in\norder to take into account special production conditions or
\nspecific circumstances in the production regions.
\nFINANCIAL IMPLICATIONS :
\n- Budget lines : B1-12, B1-141, B1-17, B1-181, B1-40;
\n- Appropriations : EUR 8906 million;
\n- Estimated expenditure : decoupled aid, coupled aid, market\nmeasures and transfer to rural development : EUR 4110 millions per\nyear;
\n- Impact of the measure : EUR -113 million per year.
\n
\n" ], "title": "COM(2003)0698", "type": "Legislative proposal published", "celexid": "CELEX:52003PC0698(02):EN" } ], "type": "Legislative proposal", "body": "EC", "commission": [ { "DG": "Agriculture and Rural Development" } ] }, { "date": "2003-12-03T00:00:00", "body": "EP", "type": "Committee referral announced in Parliament, 1st reading/single reading", "committees": [ { "body": "EP", "responsible": true, "committee": "AGRI", "date": [ "2003-11-25T00:00:00", "2003-11-25T00:00:00", "2003-11-25T00:00:00", "2003-11-25T00:00:00", "2003-11-25T00:00:00" ], "committee_full": "Agriculture and Rural Development", "rapporteur": [ { "group": "PPE-DE", "name": "DAUL Joseph" }, { "group": "PPE-DE", "name": "MAYER Xaver" }, { "group": "PSE", "name": "LAVARRA Vincenzo" }, { "group": "PSE", "name": "RODR\u00cdGUEZ RAMOS Mar\u00eda" }, { "group": "UEN", "name": "BERLATO Sergio" } ] }, { "body": "EP", "responsible": false, "committee": "BUDG", "date": "2003-12-16T00:00:00", "committee_full": "Budgets", "rapporteur": [ { "group": "ELDR", "name": "MULDER Jan" } ] } ] }, { "date": "2003-12-17T00:00:00", "docs": [ { "type": "Committee draft report", "title": "PE329.836" } ], "body": "EP", "type": "Committee draft report" }, { "date": "2003-12-22T00:00:00", "body": "CSL", "type": "Council Meeting", "council": "Environment", "meeting_id": "2556" }, { "body": "EP", "committees": [ { "body": "EP", "responsible": true, "committee": "AGRI", "date": [ "2003-11-25T00:00:00", "2003-11-25T00:00:00", "2003-11-25T00:00:00", "2003-11-25T00:00:00", "2003-11-25T00:00:00" ], "committee_full": "Agriculture and Rural Development", "rapporteur": [ { "group": "PPE-DE", "name": "DAUL Joseph" }, { "group": "PPE-DE", "name": "MAYER Xaver" }, { "group": "PSE", "name": "LAVARRA Vincenzo" }, { "group": "PSE", "name": "RODR\u00cdGUEZ RAMOS Mar\u00eda" }, { "group": "UEN", "name": "BERLATO Sergio" } ] }, { "body": "EP", "responsible": false, "committee": "BUDG", "date": "2003-12-16T00:00:00", "committee_full": "Budgets", "rapporteur": [ { "group": "ELDR", "name": "MULDER Jan" } ] } ], "docs": [ { "url": "http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A5-2004-0123&language=EN", "type": "Committee report tabled for plenary, 1st reading/single reading", "title": "A5-0123/2004" } ], "text": [ "
\n
The committee adopted the report tabled by its chairman,\nJoseph DAUL (EPP-ED, F), in conjunction with four co-rapporteurs\n(María RODRÍGUEZ RAMOS (PES, E) for cotton, Sergio\nBERLATO (UEN, I) for tobacco, Vincenzo LAVARRA (PES, I) for olive\noil and Xaver MAYER (EPP-ED, D) for hops) amending the proposal\nunder the consultation procedure.
\nThe committee highlighted its concern about the negative impact\nthat a drastic decoupling of aid could have on the poorest regions\nof Italy, Spain, Greece and Portugal, where cotton, olive and\ntobacco production is concentrated. It pointed out that, \"in\naccordance with the agreement on CAP reform reached in Luxembourg\nin June 2003 the single farm payment scheme should be implemented\nin such a way as not to lead to the discontinuation of production\"\nand warned that support for these sectors should be decoupled \"on\nthe basis of specific arrangements intended to ensure that the\nincomes of all those engaged in agriculture are maintained and that\nthe fabric of rural society is safeguarded\".
\nTurning to the four sectors concerned, MEPs adopted a series of\namendments as follows:
\n- Cotton: MEPs called for greater flexibility in implementing the\nreform and suggested that Member States be allowed to allocate up\nto 80% of aid for production (in the form of area payments\ndistributed per hectare), instead of 40% as proposed by the\nCommission, with the remaining 20% (as opposed to 60%) being\nallocated as direct income aid to farmers in the form of the\n\"single payment scheme\". The rapporteur for the cotton sector\nargued that the Commission's proposed system of payments, involving\na large cut in production aid, would lead to production being\nabandoned in regions already facing high unemployment. MEPs also\nwanted to allow a sufficient transitional period and therefore\nproposed that the reform should enter into force only in 2007.\nMoreover, they called on the Commission to present by January 2006\nan impact study on this decoupling of aid for the cotton-producing\nregions, including a possible proposal to modify the percentage\nintended for aid per hectare;
\n- Tobacco: whereas the Commission was proposing the total\ndecoupling of aid for this sector, the committee said that this\nwould cause tobacco-growing to be abandoned in all production\nareas, which would have a severe socio-economic impact. MEPs\ntherefore called for partial decoupling and said that, \"to deal\nwith specific situations with the desired flexibility\", only 30% of\naid should be transferred into the single payment scheme. In view\nof the differences between producer Member States and between\nproduct varieties, they said that the remaining part of the aid\n(70%) should be used by the Member States in order to maintain\nproduction in areas where its continuation was essential \"on\nobjective economic and social grounds\". Furthermore, they proposed\nthat up to 10% of this remaining part of the aid could be used by\nthe Member States for measures intended to improve product quality\nor for restructuring and retraining policies in the sector. In\naddition, the committee called for a general multiannual programme\nto be put in place as of 2006 for the restructuring and conversion\nof the tobacco sector in the relevant regions. It would be funded\nby the new structural fund for rural development proposed by the\nCommission. Lastly, MEPs were opposed to the transfer of payments\nto the Community Tobacco Fund, arguing that the Commission itself\nhad acknowledged that there was no link between European tobacco\nproduction and the EU's anti-smoking policy;
\n- Olive oil: whereas the Commission was proposing that 60% of aid\nshould be allocated to the the single payment scheme, MEPs said\nthat 60% should be a minimum and that the Member States should have\nthe right to increase this percentage \"provided that such a measure\ndoes not result in increasing the risk of abandoning or grubbing up\ntrees\". They also proposed that the \"coupled\" percentage (i.e. the\nremaining 40% or less) which will be retained by the Member States\nas national envelopes to be distributed among farmers should be\nused inter alia to create a national reserve to support young\nfarmers and for measures to improve quality (including organic\nproduction and harvesting by hand). In view of the specific nature\nof olive growing, the committee also said that the average yields\nin a homogenous area should be taken as a reference for the purpose\nof setting the level of decoupled aid;
\n- Hops: while supporting the Commission's proposals on the\ndecoupling of aid, MEPs said that
\nup to 25% of the coupled aid should be used to finance recognised\nproducer groups which play an important role in the hop\nsector.
\n
\n" ], "date": "2004-02-19T00:00:00", "type": "Committee report tabled for plenary, 1st reading/single reading" }, { "date": "2004-02-25T00:00:00", "docs": [ { "url": "http://eescopinions.eesc.europa.eu/eescopiniondocument.aspx?language=EN&docnr=0323&year=2004", "type": "Economic and Social Committee: opinion, report", "title": "CES0323/2004" }, { "url": "http://eur-lex.europa.eu/JOHtml.do?uri=OJ:C:2004:110:SOM:EN:HTML", "type": "Economic and Social Committee: opinion, report", "title": "OJ C 110 30.04.2004, p. 0116-0124" } ], "body": "ESOC", "type": "Economic and Social Committee: opinion, report" }, { "date": "2004-03-09T00:00:00", "body": "EP", "type": "Debate in Parliament" }, { "date": "2004-03-10T00:00:00", "docs": [ { "url": "http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P5-TA-2004-0164", "text": [ "
\n
The European Parliament adopted a resolution drafted by Joseph\nDAUL (EPP-ED, F) in conjunction with four co-rapporteurs (Maria\nRODRIGUEZ RAMOS (PES, E) for cotton, Sergio BERLATO (UEN, I) for\ntobacco, Vincenzo LAVARRA (PES, I) for olive oil and Xaver MAYER\n(EPP-ED, D) for hops). Parliament made some significant amendments\nto the proposal. (Please see the document dated 19/02/04.)
\nCotton: to recap, Parliament stated that in the case of cotton 80\nper cent of aid should be still linked to production, instead of 40\nper cent, as the Commission suggested. The Commission proposed for\nthe cotton sector a partial decoupling of aid: 60 per cent would be\na direct income aid to the farmers and 40 per cent would remain as\narea payments (distributed per hectare). The distribution of the\nfunds would be measured according to a reference period - the\ncultivation during 2000-2002. The rest of the expenses for cotton\nwould be transferred to the rural development measures and for the\nrestructuring of the regions concerned. Parliament rejected those\nmeasures, on the grounds that such a system of payments would\nprovoke the abandonment of production in regions which are fairly\npoor. Therefore, 80 per cent of the aid should remain as area\npayments and the reform should enter into force only in 2007.\nParliament stated that cotton is cultivated essentially in regions\nwhose GDP is among the lowest in the EU and whose economy is\nclosely bound up with agriculture. In these areas, cotton growing\nand the ginning activity which supports it are major sources of\nincome and employment, accounting in some localities for over 80 %\nof activity. Furthermore, in certain areas, in agronomic terms, the\nsoil conditions are such that to introduce alternative crops would\nbe impossible in the short term.
\nTobacco: in brief, 70 per cent of the financial payments should\nremain linked to production. In view of the differences between\nproducer Member States and between product varieties, the Member\nStates must use the part of the aid not included in the single\npayment with great flexibility in order to maintain the production\nin areas where the continuation is essential for social and\neconomic reasons. Furthermore, up to 10 per cent from the 70 per\ncent of aid linked to production may be used by the States for\nmeasures intended to improve product quality or for restructuring\npolicies in the sector. However, the Commission wants the total\ndecoupling of aid for tobacco, as a transitional stage towards the\ngradual disappearance of the tobacco payments.
\nParliament also stated that if certain variety groups face\nparticular adverse market conditions, Member States might implement\na programme for buying back entitlements to enable producers, on an\nindividual and voluntary basis, to abandon the business. The amount\nto finance this programme shall be equal to the amount of aid\nprovided for each producer under Article 143k. It shall be spread\nover a number of years, up to a maximum of five years, with effect\nfrom the year in which the producer joins the programme for buying\nback entitlements, up until 31 December 2013 at the latest.
\nOlive oil: whereas the Commission proposes decoupling only 60 per\ncent of aid, Parliament called for \"a minimum of 60 per cent\" and\nfor the Member States to have the right to increase this to 100 per\ncent. The coupled percentage will be given directly to the Member\nStates so they can distribute it among farmers as an areapayment\n(either per hectare or per number of trees). The farmers will be\nforced to meet social, landscape and quality criteria. The payments\nshould ensure the quality of the olive oil and that consideration\nshould be given to measures such as organic production,\nhand-harvesting and other measures not related to quantity.\nTherefore part of the funds linked to production could be kept by\nthe Member States as \"special aid\" for quality standards.
\n
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\n

PURPOSE : to establish common rules for direct support schemes\nunder the common agricultural policy and establishing certain\nsupport schemes for farmers.

\n

LEGISLATIVE ACT : Council Regulation 864/2004/EC amending\nRegulation 1782/2003/EC establishing common rules for direct\nsupport schemes under the common agricultural policy and\nestablishing certain support schemes for farmers, and adapting it\nby reason of the accession of the Czech Republic, Estonia, Cyprus,\nLatvia, Lithuania, Hungary, Malta, Poland, Slovenia and
\n
\nSlovakia to the European Union (Corrigendum to the Regulation\npublished OJ L 161 of 30 April 2004).

\n

CONTENT : the Council decided to profoundly reform the Common\nAgricultural Policy (CAP) support for tobacco, olive oil and table\nolives, cotton and hops. These reforms will lead to enhanced\ncompetitiveness, stronger market-orientation, improved\nenvironmental respect, less trade distortions and stabilised\nincomes for farmers. For the four sectors concerned, a significant\npart of the current production-linked payments will be transferred\nto the de-coupled single payment. The Danish, Spanish and Swedish\ndelegations expressed their intention to vote against.
\n
\nThe reform was envisaged as a follow-up to the CAP reform agreed in\nJune 2003. Two Regulations have been adopted : the first amends\nRegulation 1782/2003/EC establishing common rules for direct\nsupport schemes under the common agricultural policy (horizontal\nlegislation) and the second to reform the common organisation of\nthe market in the olive oil and table olives (CNS/2003/0279).
\n
\nThe main changes in the compromise amending the Commission\nproposals are as follows:
\n
\n- entry into force of the Reform: the Reform package for cotton,\nolive oil and tobacco will begin in 2006 instead of 2005 as stated\nin the Commission proposals. For 2005, the current tobacco regime\ntogether with the aids fixed for 2004 will be applied. For olive\noil, the current regime will continue to
\n
\napply for the marketing year 2004/2005;

\n

- the use of agricultural use of the land: a measure has been\nincluded which stipulates that Member States may decide to allow\nsecondary crops to be cultivated on the eligible hectares during a\nperiod of maximum three months starting each year on 15 August;\nhowever, at the request of a Member State,
\n
\nthis date is modified for regions where cereals are normally\nharvested earlier for climatic reasons.
\n
\n- COTTON : the rate of the decoupling payment has been increased to\n65% instead of the 60% initially proposed, the coupled part of the\npayment being now at 35%. The amount to be transferred to the\nsecond pillar is reduced by EUR 81 million instead of the EUR 103\nmillion initially provided for. The base area for Greece is\nincreased to 370 000 hectares instead of 340 000 with a different\namount of coupled aid based on the surface area (EUR 594 /hectare\nfor the first 300 000 hectares, EUR 342,85 /hectare for the\nremaining 70 000 hectares). Where the 370 000 hectares base area is\noverrun, the aid granted to the 70 000 hectares is reduced\nproportionately in order to comply with the global envelope for the\ncoupled aid. For Spain, the maximum area eligible for aid has been\nreduced from 85,000 ha to 70,000 ha and the area aid has been\nincreased from 851 EUR/ha to 1,039 EUR/ha. For Portugal, the amount\nof the aid per eligible hectare shall be EUR 556.

\n

- OLIVE OIL : the decoupling rate will be a minimum of 60%.\nMember States may decide to increase this rate. A distinction in\nthe reference period for the calculation of the reference amount\nfor each olive farmer has been established and will comprise four\nmarketing years instead of the three marketing years initially\nproposed (2000/2002). The three-year reference period 2000/2002\nis
\n
\nhowever maintained for the calculation of the national ceiling for\nolive oil. Member States may withhold for quality measures up to\n10% of the olive oil complement in the national ceiling. The\nnational ceilings for France and Portugal will take into account\nthe aid to be granted to new plantings after 1 May 1998 under\nprogrammes approved by the Commission. A corresponding amount of\nEUR 1 million for France and EUR 19 million for Portugal will be\nadded. For Spain, the national budgetary envelope has been\nincreased by EUR 20 million.

\n

- TOBACCO : the 3 bands (below 3,5 tonnes, between 3,5 and 10\ntonnes, over 10 tonnes) initially proposed to set a different rate\nof decoupling, from 2005 to 2007, have been abolished. A\ntransitional scheme towards full decoupling has been set up from\n2006 to 2010. During this period, the rate of decoupling for\ntobacco producers will be set at a minimum of 40% of the tobacco\nreference amount whilst a maximum 60% of this reference amount will\nbe maintained as a coupled payment. This coupled payment will be\ngranted to producers situated in Objective 1 regions or tobacco\nfarmers producing varieties of a certain quality. Other objective\ncriteria may also be taken into account by the Commission. As from\n2010, tobacco aid will be fully decoupled with 50% of the reference\namount included in the Single Farm Payment (SFP) and 50%\ntransferred to the restructuring envelope.
\n
\n- HOPS : Member States may grant up to 25% of the aid to farmers\nproducing hops and to producer organisations recognised under the\ncurrent rules of the common market organisation for hops.

\n

ENTRY INTO FORCE : 01/05/2004. This Regulation shall apply as\nfrom 1 January 2006 except for certain provisions which shall apply\nas from the entry into force of this Regulation or as from\n01/01/2005.

\n
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