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Mediterranean package

Mediterranean package

Outline of the Community (European Union) legislation about Mediterranean package

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Agriculture > General framework

Mediterranean package

Document or Iniciative

Council Regulation (EC) No 864/2004 of 29 April 2004 amending Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the Common Agricultural Policy and establishing certain support schemes for farmers, and adapting it by reason of the accession of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia to the European Union.

Summary

This Regulation, known as the “Mediterranean package”, supplements the major reform of the Common Agricultural Policy (CAP) of June 2003 with provisions relating to the integration of support for tobacco, hops, olive groves and cotton into the single payment scheme.

The Regulation establishes specific direct aid applicable to these sectors. This aid is granted on condition that farmers meet the cross-compliance requirements laid down by the 2003 reform.

Hops

Direct aid for hops has been decoupled from production since 1 January 2005 (except in countries which applied a transitional period until 31 December 2005). However, in order to deal with specific market situations or regional implications, Member States may retain a certain percentage of coupled aid (corresponding to a maximum of 25 % of their national ceiling *).

The reference amount for the calculation of the aid is EUR 480 per hectare for which aid was granted during the reference period 2000 to 2002.

The Regulation on the common organisation of the market in hops contains rules on marketing, producer groups and trade with third countries.

Cotton

Direct aid for cotton has been decoupled from production since 1 January 2006. However, in order to safeguard production in areas where cotton production would be liable to cease if decoupling were applied in full, Member States may retain a certain percentage of coupled aid (corresponding to a maximum of 35 % of the total amount of aid previously granted for cotton).

This aid is calculated according to the following table:

Maximum area (total)
440 000 hectares
Greece Spain Portugal
National base area

370 000 hectares

70 000 hectares

360 hectares

Aid in euros per eligible hectare

300 000 hectares at EUR 594 per hectare
70 000 hectares at EUR 342.85 per hectare

EUR 1 039 per hectare

EUR 556 per hectare

The “approved inter-branch organisations” in the cotton sector are encouraged to participate in the management of area aid for their members (fixing a scale).

Following the cancellation by the Court of Justice of the European Communities of the 2004 reform in September 2006, the current regulations governing the cotton sector will be replaced in the near future. In response to a very wide-ranging public consultation, stakeholders and the general public submitted contributions with a view to drawing up a new proposal for reform.

Olive oil

Support for the olive oil sector has been decoupled from production since 1 January 2006. However, for the upkeep of olive groves of environmental or social value, area aid (corresponding to a maximum of 40 % of the aid previously granted) is granted for olive groves recorded in the geographical information system *.

Only Spain decided to apply coupled aid for olive groves, amounting to EUR 103.14 million per annum.

Member States may assign no more than 10 % of their national envelope for olive oil to measures to improve quality.

The Regulation on the common organisation of the market in olive oil and table olives regulates the internal market and trade in these products with third countries.

Tobacco

Direct aid for tobacco will be fully decoupled from production from 2010. However, in order to protect local economies and to allow the market price to adjust to the new conditions, Member States may maintain a certain percentage of coupled aid (corresponding to a maximum of 60 % of the aid previously granted) for the four years up to 2010.

During this period, and depending on the choice made by the Member States concerned, the maximum amounts of this aid are as follows:

2006-2009
(EUR million)
Germany

21.287

Spain 70.599
France 48.217
Italy (apart from Puglia) 189.366
Portugal 8.468

A proportion of this production aid (set at 5 % in 2007) is transferred to the Community Tobacco Fund, which finances research and information programmes on the harmful effects of tobacco consumption.

From 2011, half the aid granted annually for tobacco between 2000 and 2002 (estimated at EUR 484 million) will be transferred for restructuring the tobacco-producing regions under rural development programmes financed under the European Agricultural Guidance and Guarantee Fund, EAGGF.

The Regulation on the common organisation of the market in tobacco regulates production orientation and trade with third countries.

Background

The “Mediterranean products” reform is based on the Commission communication to the Council and the European Parliament entitled “Accomplishing a sustainable agricultural model for Europe through the reformed CAP – the tobacco, olive oil, cotton and sugar sectors “. For hops, the reform is based on the report from the Commission to the Council on evolution of the hop sector .

Key terms used in the act
  • National ceiling: maximum amount which each State may allocate to direct aid payments.
  • Geographical information system: a computerised tool organising geographical data and providing a realistic representation of the spatial environment.

References

Act Entry into force Deadline for transposition in the Member States Official Journal
Regulation (EC) No 864/2004 1.5.2004 OJ L 161 of 30.4.2004

Resources

See Also

Cotton

Cotton

Outline of the Community (European Union) legislation about Cotton

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Agriculture > Markets for agricultural products

Cotton

Document or Iniciative

Council Regulation (EC) No 864/2004 of 29 April 2004 amending Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers, and adapting it by reason of the accession of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia to the European Union.

Summary

Decoupling

Extensive changes have been made to the aid arrangements for cotton, with a partial move to a system of single farm payments. The move is only partial in that 35% of aid will continue to be provided in the form of an area payment (direct aid), with the remaining 65% being provided as a single farm payment.

There has been only a partial move to the new aid arrangements so as to protect certain areas in which production would cease if the new arrangements were fully applied.

Under the previous arrangements, growers did not benefit from direct aid for cotton but rather from indirect aid paid to ginners. The total aid available per hectare in each Member State is fixed at 35% of the national allocation that producers received indirectly.

Direct aid

As in the case of other direct aid to producers, farmers must fulfil certain obligations: cross-compliance, modulation and financial discipline.

National base area

Maximum area (total)
440 000 ha
Greece Spain Portugal
National base area 370 000 ha 70 000 ha 360 ha
Aid in euros per eligible hectare 300 000 ha > 594/ha
70 000 ha > 342.85/ha
1 039/ha 556/ha

Additional support: restructuring

Reforming this sector requires financial assistance of EUR 22 million for adjustments. This expenditure will be entered in the 2007 budget.

This assistance, for restructuring programmes in production regions, will be financed by the European Agricultural Guidance and Guarantee Fund (EAGGF), Guarantee Section as part of rural development policy.

Background

The reform of agricultural aid for cotton, tobacco, hops and olive oil and table olives was negotiated together and included in the same Regulation in what was know as the “Mediterranean package”.

All these products were subsequently included (April 2004) in the comprehensive reform of the common agricultural policy (CAP) of June 2003, with the approval of the move from direct aid (aid paid by hectare, unit of output or livestock unit) to a system of single farm payments.

Cotton, tobacco, yeast, olive oil and table oils are grown in certain regions whose development is lagging behind. The reform aims to safeguard production in those regions by according priority to farmers’ incomes rather than to providing aid for production. Coupled aid is to be provided for tobacco and cotton to permit adjustment to the new arrangements. Coupled aid may be paid for hops to take account of particular market situations or structural situations within a region.

The current reform affecting “Mediterranean products” is based on the Commission communication to the Council and to the European Parliament “Accomplishing a sustainable agricultural model for Europe through the reformed CAP – the tobacco, olive oil, cotton and sugar sectors “.

The current forms of aid for cotton will be abolished from 1 January 2006.

References

Act Entry into force – Date of expiry Deadline for transposition in the Member States Official Journal
Regulation (EC) No 864/2004 1.5.2004 1.1.2006 (regarding cotton) OJ L 161 of 30.4.2004

 

Silkworms

Silkworms

Outline of the Community (European Union) legislation about Silkworms

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Agriculture > Markets for agricultural products

Silkworms

Document or Iniciative

Council Regulation (EC) No 1544/2006 of 5 October 2006 laying down special measures to encourage silkworm rearing.

Summary

From 1 April 2008, all products that fall within the scope of this Regulation will be covered by the common organisation of agricultural markets, which includes an aid scheme specifically for silkworms.

Scope

The products concerned are silkworms and silkworm eggs.

The marketing year starts on 1 April each year and ends on 31 March of the following year.

Aid

Aid is granted to producers for each box of silkworm eggs used, on condition that the boxes contain a minimum quantity of eggs and that the worms have been successfully reared. The aid amount is set at 133.26 euro per box.

Other provisions

Trade with third countries is subject to the rules governing the common organisation of the market in certain agricultural products as listed in Annex II to the Treaty.

The Commission is assisted by the Management Committee for Natural Fibres (FR), which is also responsible for flax and hemp.

The Member States and the Commission exchange any information required to implement the Regulation.

References

Act Entry into force – Date of expiry Deadline for transposition in the Member States Official Journal
Regulation (EC) No 1544/2006 6.11.2006 OJ L 286, 17.10.2006

Related Acts

Commission Regulation (EC) No 1744/2006 of 24 November 2006 on detailed rules for aid in respect of silkworms [Official Journal L 329 of 25 November 2006].