EUROPEAN
UNION: ESTIMATES OF SUPPORT TO AGRICULTURE
|
Contact person: Catherine Moreddu |
|||
|
Email: catherine.moreddu@oecd.org |
|||
|
Tel : |
(33-1) 45 24 95 57 |
Fax : |
(33-1) 45 24 18 90 |
DEFINITION
AND SOURCES
Country
Total Support Estimate (TSE) and derived indicators in Table 1
cover all agricultural production, i.e. all agricultural commodities
produced in the country. Definitions of basic data sets refer to the specific
name of the programmes with specific sources
indicated in square brackets. For the Producer Support Estimates (PSE) and
Consumer Support Estimates (CSE), the description of policy measures
indicates the commodities covered by the measures, as well as the method of
allocation of the corresponding transfers among commodities. "MPS
commodities", which vary across countries, are those for which market
price support is explicitly calculated in Table 2.
Market
Price Support (MPS) and CSE by commodity in Table 2 are
calculated for the following commodities: common wheat, durum wheat, maize,
barley, oats, rice, sugar, milk, beef and veal, pig meat, poultry meat, sheep
meat, eggs and potatoes. Definitions are provided only for basic data sets from
which all the other data sets in this table are derived, following the formula
indicated in each commodity table. Specific sources are indicated in square
brackets.
PSE
by commodity in Table 3 are calculated only for commodities
produced in the country within a common set of commodities (common wheat, durum
wheat, maize, barley, oats, rice, soybeans, sunflower, rapeseed, sugar, milk,
beef and veal, pigmeat, poultry meat, sheep meat and
eggs); provided that the value of production of that commodity exceeds 1% of
the total value of production in the country concerned. All data sets in the
calculation of PSE by commodity come from Tables 1 and 2 where
definitions are included.
Definitions of the indicators, criteria of
classification of programmes included, and methods of
calculation can be seen in OECD, Methodology for the measurement
of support and use in policy evaluation [http://www.oecd.org/agr/policy].
European
Union (EU) corresponds to EU-12 for 1986-94 and to EU-15 from 1995
onwards, and includes ex-GDR as from 1990. From
2004, parallel estimations are presented for EU-15 and EU-25. Levels of
production and consumption are on a crop year for crops and on a calendar year
for livestock products. For example, 2000 production and consumption data
for crops refer to the crop year 2000/01. Producer price and reference
price for all products are on a calendar year. Budgetary payments are on a
fiscal year basis.
EAGGF
Guarantee Fund expenditures: Spending
under the EAGGF Guarantee fund covers direct payments to farmers, market
intervention measures, export refunds, as well as co-financing with national
budgets for agri-environmental, afforestation
and early retirement measures. With the Agenda 2000 CAP reforms, the EAGGF
Guarantee fund has become almost the only source of funding for all
agricultural expenditure. Payments and levies for cereals in fiscal
year t+1 are allocated to the PSE in year t. For
example, 2000 refers to fiscal year 2001.
EAGGF
Guidance Fund expenditures: The EAGGF
Guidance fund section, which is one of the EU's
Structural Funds, co-finances measures to assist structural change in the
agricultural sector and to promote rural development. Specific measures include
investment aid, schemes to help young farmers set up for the first time,
training activities, support for processing and marketing of agricultural and
forestry products and rural infrastructure projects. With the Agenda 2000
CAP reforms, the EAGGF Guidance fund finances rural development measures under
Objective 1 (regions which are lagging behind) and the EU rural development
initiative (LEADER PLUS).
National
policies: Expenditures by EU member
States (national contribution to EU payments or pure national), mainly on
a fiscal year basis, were, as far as possible, disaggregated into
TSE categories. Notwithstanding the progress made, the degree of detail
still varies across countries and policy coverage is not yet comprehensive,
particularly for those countries for which sub-national measures are important.
Table 1. EUROPEAN UNION: Total Support Estimate
Definitions:
I. Total value of production (at farm
gate): total agricultural production
valued at farm gate prices, i.e. value (at farm gate) of all agricultural
commodities produced in the EU [1].
1. Of which share of common commodities (%): share of commodities for which MPS is explicitly calculated (in Table 2) in the total value of agricultural production.
II. Total value of consumption (at farm
gate): consumption of all
commodities domestically produced valued at farm gate prices, and estimated by increasing
the value of consumption (at farm gate) of the MPS commodities according to
their share in the total value of agricultural production
[(II.1) / (I.1) x 100].
1. Of which MPS commodities: sum of the value of consumption (at farm gate prices) of the MPS commodities produced in the country as indicated in Table 2.
III.1 Producer Support Estimate (PSE): associated with total
agricultural production, i.e. for all commodities domestically produced
(Sum of A to H, when negative, the amounts represent an implicit or
explicit tax on producers).
A. Market Price Support: on quantities domestically produced (excluding for on-farm feed use -- excess feed cost) of all agricultural commodities, estimated by increasing the MPS for the common commodities according to their share in the total value of agricultural production [(A.1) / (I.1) x 100].
1. Of which MPS commodities: sum of the MPS (net of price levies and excess feed cost) for the MPS commodities as calculated in Table 2.
B. Payments based on output
1. Based on unlimited output
Arable crops
Market bonus for oilseeds (Budget item B1-1070 in the 1998 EC Budget): payments per tonne to producers for covering the orderly marketing of soyabeans, rapeseed and sunflower seed pursuant to Article of Reg. 1765/92.
Aid to small cereal producers (1992-93) (Budget item B1-1031 in the 1995 EC Budget): payments per tonne to small cereal producers, allocated to arable crops according to the share in their value of production.
Agri-monetary aid (Budget item B1-390 in the 1998 EC Budget): Payments to farmers, processors and traders in countries with strong currencies following the 1995 reform of the agri-monetary system (Reg. 2611/95); subject to a ceiling per country, degressive and temporary (three years). As a result of the introduction of the single currency on 1 January 1999, the agri-monetary system was reformed involving, in particular the abolition of the "green rate" and the introduction of transitional measures to deal with compensation for reduction in income arising from the introduction of euro to all EU Members (Reg. 2800/98; Reg. 3813/98). As disaggregated data are not available, information from EU Members was used to allocate the payments to different categories. 45% are allocated under B.1 (payments on unlimited output), 35% under E.1 (payments based on variable inputs), 10% under L (infrastructure) and 10% under M (marketing). Allocated to arable crops and milk according to the share in their value of production.
Rice
Production aid for indica rice (Budget item B1-1857 in the 1996 EC Budget): payments per tonne to encourage rice growers to switch from the traditional round/medium grain production to certain varieties of rice of the Indica type (Reg. 1418/76, Art. 8(a); Reg. 3878/87, Reg. 2580/88).
Other intervention (Budget item B1-1859 in the 1998 EC Budget) (1986-91): a degressive production-linked payment to Portuguese rice producers, based on the previous year’s production.
Dairy
Non-marketing and herd conversion schemes (Budget items B1-2060 in the 1998 EC Budget). under the non-marketing scheme, producers accepting not to deliver milk for a five year period, receive payments based on their deliveries in the previous twelve months. Under the conversion scheme, producers guaranteeing to convert from dairying to beef or sheep over a four year period receive payments. These two schemes became collectively known as "SLOM".
POSEIMA (Reg. 91/315) (Budget item B1-2511 in the 1998 EC Budget) and Smaller Aegean islands (Reg. 2019/93) (Budget item B1-2513 in the 1998 EC Budget): payments per tonne for on-farm stockholding of local cheese.
POSEIDON (Budget item B1-2510): Payment per tonne of milk produced.
Stock-farming (1987-93) (Italy; Reg. 1944/81): output payments to dairy farmers.
Honey
Smaller Aegean islands (Reg. 2019/93) (Budget item B1-2513 in the 1998 EC Budget): payments per tonne for on-farm stockholding of honey.
Fibre Plants
Production aid for fibre flax and hemp (Budget items B1-1400 and B1-1402 in the 1998 EC Budget, correspondingly): production aid per hectare of harvested area.
On-farm storage (Budget items B1-1409 in the 1998 EC Budget): payments per tonne for on-farm storage of fibre.
Silkworms (Budget items B1-142 in the 1998 EC Budget): payments per box of eggs produced successfully.
Ananas: Payment per tonne of pineapple produced in the Açores (POSEIMA, Budget Item B1-1831).
Tobacco
Premiums for tobacco (1986-1992) (Budget item B1-171 in the 1998 EC Budget). Aid per kilo of raw leaf tobacco paid directly to growers who have signed a European cultivation contract, but member States may choose to pay it via the first processor. Since 1993, there is a maximum guarantee threshold for the whole EU set at 350 000 tonnes and the payment is included under B.2 below.
Conversion premium (Budget item B1-173 in the 1998 EC Budget). A three-year programme implemented in 1993 for the conversion of certain tobacco varieties to other varieties or agricultural products.
· National expenditures
Agri-monetary compensation (UK): payments to compensate farmers for losses stemming from euro/sterling fluctuations (EU Reg. 2799/98, 2800/98). Allocated to individual arable crops according to their value of production and to milk.
Egg and wool schemes (UK): deficiency payments for wool and eggs, operated by the respective marketing Board. Discontinued in 1990/91 and 1994/95, respectively.
Sheep scheme (UK): payments to compensate UK sheep producers for the shortfall in returns from marketing sheep from in areas affected by the Chernobyl disaster in 1986.
Reimbursement of sugar excise tax to sugar beet producers (Lithuania, from 1999): budgetary expenditures, allocated to sugar beet.
Payments to high quality milk (Poland, from 2002): Payments to farmers per tonne of high quality milk.
Compensation payments for milk (Czech Republic): Payments per litre of milk sold to the market, allocated to milk production.
Deficiency payments (Hungary): Payments per tonne of marketed output of specific livestock products covering the difference between the guide price and the price paid by processors. Farmers have to apply for the payment with proof (by a selling contract) of the level of deliveries and the price obtained.
Storage assistance (Hungary): Payment for cereals stored until beginning of intervention buying-up.
Quality payments (Hungary): Payments per tonne of marketed output of a high quality product (beef, cow milk, sheep milk, goat milk, pigmeat, poultry). In 2001, quality payments were extended to some vegetable products: onions, pepper, potatoes for human consumption, tomatoes for industrial processing and sweet maize.
Pre-accession Direct Payments (Top-up) (Hungary): Payments per tonne of milk.
Assistance to milk producers (Hungary): Aid to processors conditional on paying a determined minimum price to producers.
2. Based on limited output
Arable crops
Production aid for oilseeds (1986-91) (Budget item B1-126 in the 1992 EC Budget): Until 1991, support to oilseeds (rapeseed, soyabeans and sunflower seed) was in the form of deficiency payments per tonne (combined with a system of intervention buying) paid through oilseed crushers. There was no ceiling to the total amount of payments which an individual farmer may receive, nor there was a limit for the EU as a whole to the total quantities of oilseeds eligible for payments. Maximum guaranteed quantities (MGQs), or production ceilings, were introduced in 1982/83 for rapeseed, 1984/85 for sunflower seed and 1987/88 for soyabeans.
Dairy
Payments per tonne of milk to compensate for change in quota for producers who had taken the non-marketing and conversion schemes during the late 1970s and early 1980s and who wished to return to dairying, after having ceased milk production for the five year required ("SLOM quota", see category B.1 above):
Compensation for temporary suspension of quotas (Budget items B1-2067 in the 1995 EC Budget); Compensation for non-allocation of milk quotas (temporary) (Budget items B1-2090 in the 1998 EC Budget); Purchase of milk quotas (Budget items B1-3803 in the 1995 EC Budget); Non-commercialisation of milk (Reg. 1078/77, EAGGF Guidance)
Olive oil
Production aid (Budget items B1-1210 in the 1998 EC Budget) and Schemes related to production of olive oil (Budget items B1-1211 in the 1998 EC Budget): production aid per tonne to olive producers.
Protein plants
Production aid for peas and field beans (Budget items B1-131 in the 1998 EC Budget): payments per tonne.
Production aid for lupines (Budget items B1-132 in the 1998 EC Budget): payment per hectare for harvested area (Reg. 1577/96). There is a maximum guaranteed area of 400 000 hectares.
Bananas
Production aid for bananas (Budget items B1-1508 in the 1998 EC Budget): payments per tonne to compensate EU producers for the loss of income that may arise from the application of the EU import arrangements for bananas following the Uruguay Round Agreement on Agriculture.
Tobacco
Premiums for tobacco (1993-onwards). see category B.1 above.
· National expenditures
Scheme for the subsidisation of milk quota restructuring (Ireland): payment per litre to small dairy producers for purchasing additional quota. The eligibility criteria comprise: maximum quota, income ceiling (certain percentage of farm household income must come from agriculture), stock density (producers whose stock density is below 1.4 LU per hectare) and permanency (producers must remain in milk production until the end of the quota system or the year 2 000, whichever is the earlier).
Potatoes scheme (UK): deficiency payment to registered producers on authorised "quota" areas; operated by the Marketing Board and discontinued in 1993/94.
C. Payments based on area planted/animal
numbers
1. Based on unlimited area or animal
numbers
Arable crops
Production aid for durum wheat (1986-93): per hectare payment for durum wheat planted in traditional production zones.
Other intervention for cereals (Budget item B1-1029 in the 1998 EC Budget): payment per hectare to durum wheat, barley, triticale, maize and sorghum planted in Portugal, of which 65% is financed by the EU.
Other intervention for rice (Budget item B1-1859 in the 1998 EC Budget) (1992-onwards): special measures to rice farmers in Portugal affected by the 1992/93 drought (Reg. 3653/90).
Land management measures to reduce the use of fertilisers: crop specific, per hectare payments under agri-environmental measures (EC Reg. 2078/92), allocated to all crops according to their share in total acreage. [More information needed on the implementation of these measures].
Organic farming: payments to producers for producing cereals with organic farming practices under EC Reg. 2078/92 and the RDR. Allocated to cereals according to the share in their total acreage.
Sugar
POSEIDON (Reg. 89/687), (Budget item B1-1830 in the 1998 EC Budget): per hectare payments for cane sugar.
POSEIMA (Reg. 91/315), (Budget items B1-1831 in the 1998 EC Budget): per hectare payments for sugar beets.
Beef
Suckler cow premiums (1986-92) (Budget items B1-2120 in the 1998 EC Budget): payment per cow granted to any milk producer not supplying milk or dairy products for twelve months; and to any dairy farmer supplying milk or dairy products whose total individual milk reference quantity does not exceed 120 000 kg, provided that he keeps, for at least six consecutive months from the day on which the application is made, a number of suckler cows at least equal to 80% and of heifers at most 20% of the number for which the premium was requested. The transfer and temporary leasing of premium entitlement is permissible between producers. As of 1992, claims for the premium is subject to a maximum stocking density limit of 2.0 LU (livestock unit) per hectare devoted to forage for the animals for which a premium application is made (Reg. 3886/92).
Beef special premium (1986-92) (Budget items B1-2121 in the 1995 EC Budget): payment granted to male cattle within ceilings set at regional level on up to 90 animals per age bracket per calendar year and per animal (Reg. 805/68). Claims for the premium are subject to a maximum stocking density limit of 2.0 LU (livestock unit) per hectare devoted to forage for the animals for which a premium application is made.
Additional premiums for suckler cows (Budget items B1-2127 in the 1995 EC Budget): additional payment granted by EU member States (e.g. Portugal) not exceeding ECU 30.19 per cow, and with the first ECU 24.15 chargeable to the EAGGF Guarantee Section. It is applicable on holdings in regions regarded as lagging behind in their development and in member States specialising in suckler herds.
Suckler cow premium for mixed herds (Budget items B1-3804 in the 1995 EC Budget): see suckler cow premium above.
POSEIMA (Budget items B1-1831 and B1-2511 in the 1998 EC Budget): specific premiums for dairy cows; additional premium for fattening bovine animals (Reg. 91/315).
Sheepmeat and goat meat
Ewe and goat premiums (1986-92) (Budget items B1-2220 in the 1998 EC Budget): annual ewe payment calculated on the basis of income shortfall, when the EU average market price is less than the basic price. A technical coefficient representing the annual average lamb meat production from ewes producing heavy lambs is then applied to the income loss to determine the rate of ewe payment. A payment is also granted for goats in certain mountain areas and LFAs if goat-breeding is mainly intended for production. From 1993 marketing year an individual limit on premiums was introduced (Reg. 3567/92) and the payment is included under C.2 below. Limits are based on the number of eligible claims made in respect to the 1991 marketing year. Up to the end of the 1994 marketing year, the full payment was granted up to a limit of 1000 animals per producer in LFAs and 500 in the other areas; above these limits, 50% of the payment was granted. Rights to premium are transferable and may also be leased (Reg. 3567/92). Although the payment is not subject to any stocking density criteria, but the number of ewes upon which payment is claimed will be relevant when determining stock density levels for beef special premium and suckler cow premium claims.
Fixed ewe and goat premium in LFA and mountain areas (1986-92) (Budget items B1-223 in the 1998 EC Budget): since January 1991, producers in LFAs are eligible for a supplementary flat rate payment in addition to ewe premium. The payment of this supplement is subject to the same conditions as the payment of ewe premium.
Olive oil
Frost damage olive groves (EAGGF Guidance Fund, Reg. 122/88; Reg. 1654/86): budgetary expenditures on measures for replanting and converting olive groves damaged by frost.
Smaller Aegean islands (Reg. 2019/93), (Budget items B1-1833 in the 1998 EC Budget): per hectare payments for olive groves.
Wine
Smaller Aegean islands (Reg. 2019/93), (Budget items B1-1833 in the 1998 EC Budget): per hectare payments for vineyards.
Hops
(Budget item B1-181 in the 1998 EC Budget): payment per hectare based on historic average planted area.
Potatoes
POSEIMA (Reg. 91/315), (Budget items B1-1831 and B1-2511 in the 1998 EC Budget) and POSEICAN (Reg. 91/314), (Budget item B1-1832 in the 1998 EC Budget): per hectare payments for potatoes.
· National expenditures
Suckler cow premiums (France, Germany, Greece, Italy, Spain and Austria, 1986-92): see above.
Ewe and goat premiums (Austria, Greece): see above
Special premium for male cattle (Austria): payment per head of animal.
Premium for keeping farm animals (Austria): payment per head of animal. Allocated to livestock products according to their share in the value of agricultural production.
Premium for oilseeds and protein plants (Austria): payment per hectare of planted area. Allocated to oilseeds.
Other premia (Austria): allocated to crops according to their share in the value of agricultural production.
Frost damage aid (Austria): payment per hectare of affected area. Allocated to crops according to their share in the value of agricultural production.
Drought damage aid (Austria): payment per hectare of affected area. Allocated to crops according to their share in the value of agricultural production.
Disaster payments (Denmark, Finland, France, Italy, Luxembourg and Spain): payments to cereal producers to compensate for crop damage due to natural disaster, allocated to cereals according to their share in total cereal acreage. In Finland, 50% is allocated to crops and 50% to feed (E1).
Aid to pig producers (Ireland): payments to pig producers affected by fires at the border Ireland/Northern Ireland in 1998. The scheme contributes towards interest costs where farmers have agreed debt restructuring arrangements with banks. Allocated to pigmeat.
Environmental aid (Finland): Support to compensate producers for the increase in the production costs and income losses due to the restrictions imposed by the terms of the support. From 2000, environmental support consists of basic measures, additional measures and special measures. The basic measures and additional measures replace the earlier aid based on the GAEPS, and it is paid on the basis of the arable area to farmers who commit themselves to measures that reduce contamination to the environment. 80 % is allocated to all crops by the shares in the total value of production; the remaining 20 % allocated to set-aside (F2). [More information needed on implementation].
Compensation for damage caused by flooding (Finland): Disaster payment. Allocated to all commodities by the shares in the total value of production.
Exceptional assistance to young cattle breeder (France): Payments per cattle targeted to the most vulnerable farms, in particular younger farmers. Allocated to beef &veal.
Stabilisation programme for wine, 1986-87 (Germany): Payment per hectare of vineyards to stabilise the domestic market. Calculated on a fiscal year basis, and allocated to "other commodities".
Adjustment programme for the dairy industry, 1992-94 (Germany): Payment per cow to facilitate structural adjustment in the East German dairy industry after reunification. Calculated on a fiscal year basis, and allocated to milk.
Disaster Payments (Netherlands, Portugal): Direct payments allocated to all commodities by the share in the total value of production.
Harvest losses, 1998 (Netherlands): Direct payments allocated to all commodities by the share in the total value of production.
Special aid for cereals (Portugal): payment per hectare of cereals (except maize and rice). Allocated to wheat and other grains (see above).
Premium for indigenous races of cattle (Portugal): payment per head (see above).
Dried fruits (Spain): per hectare payments to dried fruit producers affected by erosion or drought.
Organic production (Sweden): in 1989 a temporary compensation scheme to farmers for acreage converted to organic production and for acreage continuing under organic production. Payments per hectare (arable land or pasture) granted for a three year period, although production must be carried out during six years, for acreage cultivated with price support regulated crops, except for the first year when pasture and ley on arable land was included. As data do not allow a distinction between crops and pasture, 50% is allocated to this category and 50% to category E1. Allocated to crops according to their share in total crop production.
Traditional, environmentally friendly cultivation of local varieties of brown beans (Sweden): per hectare payments to compensate for cultivation of brown beans in the traditional cultivated area.
Conservation of local breeds threaten by extinction (Sweden): payment per livestock unit to improve the conditions for continued breeding in order to conserve the genetic resources of domestic animals as an important contribution to biodiversity. Allocated to livestock products according to their share in livestock production.
Support to bee keeping (Czech Republic): Payment of CZK 150 per colony of bees.
Payments for integrated production of fruits and vegetables (Czech Republic): National expenditures.
Payments for cash crops (HRDP) (Czech Republic): Payment per hectare of cash crops implemented within the Rural Development Plan.
Ad hoc payments (Estonia, 2004): per hectare payments to crop producers to compensate losses due to natural disasters, allocated according to the actual budgetary expenditures to each crop.
Pre-accession Direct Payments (Hungary): Payment on all agricultural land; Payment per head for suckler cows; and Payment per head for ewes.
Area-based payment for crop production (Hungary, from 1999): payments per hectare of specific crops. Allocated to crop commodities according to their share in the total value of production.
Payments to the purchase and breeding of animals (Hungary, from 1995). Allocated to livestock products according to their share in the total value of production.
Disaster payments (Hungary): Payments to compensate overall revenue losses from disasters, allocated to all commodities according to their share in the total value of production.
Animal welfare (Hungary): Payments to support pig and poultry farmers meet EU animal health and welfare requirements.
Payments for high quality crops (Latvia, 2004): payments per hectare, allocated to crops according to their share in the value of crop production.
Pedigree cattle payments (Latvia, 2004): headage payments, allocated to beef and cows and pork.
Area payments (Latvia, 2004): payments per hectare for vegetables, rapeseed, flax, allocated to respective commodity.
Headage payments (Latvia, 2004): headage payments, allocated to milk cows.
Payment for sawn area (Latvia, 2004): area payments, allocated to potatoes.
Disaster losses compensations (Lithuania, 2004): per hectare payments, allocated to crops according to their share in the total value of crop production.
Payments for natural disaster relief and assistance (Poland, since 1997): budgetary expenditures. Allocated to crops according to their share in crop production.
Complementary National Direct Payments CNDP (Czech Rep., Estonia, Hungary, Latvia, Lithuania, Poland, Slovak Rep. from 2004): payments per hectare or animal numbers (so called top-up payments) for hop, sheep and goat meat, suckle cows, cattle, high quality seeds for fodder crops, flax and potatoes in the Czech Republic; arable crops, cattle and ewes in Estonia; for arable crops, oilseeds, rice; tobacco, and bulls in Hungary; for seeds, dairy cows, pigs, ewes, suckler cows in Latvia; for grains, rapeseed, starch potatoes, fiber flax, suckler cows, bulls, slaughtered adult cattle, ewes in Lithuania; hop, tobacco, crops on arable land, sheep and goat meat, and suckle cows in the Slovak Republic Allocated to the respective commodities.
2. Based on limited area or animal
numbers
Arable crops
Compensatory payments (1993-onwards) (Budget item B1-104 and B1-105 in the 1998 EC Budget): payments per hectare, calculated on historic regional yields (1986-90), granted on condition that producers set aside a defined percentage of the eligible land (with the exception of small producers). Introduced by the 1992 CAP reform to compensate cereal, oilseed and protein crop (peas, field pea beans, sweet lupins and non-textile flax seed) producers for the reduction or abolition of institutional prices (Reg. 1765/92). Non-disaggregated payments are allocated to cereals (durum wheat, common wheat, barley, oats, rye, maize, triticale, others) and oilseeds (soyabeans, rapeseed, sunflower) according to their share in total acreage.
Set-aside linked with per hectare aid (1993-onwards) (Budget item B1-1060 in the 1998 EC Budget): payments for set-aside area related to per hectare compensatory payments, determined by multiplying the fixed amount per tonne by the regional cereals reference yields (average yield of the 1986-90 period) and the area set-aside. This area may either be used for non-food purposes or taken out of production, with the possibility of rotation, afforested or used for non-agricultural purposes. Allocated to cereals and oilseeds according to their share in total cereal and oilseed acreage.
Supplementary aid for durum wheat (1994-onwards) (Budget item B-1055 in the 1998 EC Budget): supplementary payment per hectare to durum wheat producers in certain economically disadvantaged regions of Italy, Spain, Greece, France, Austria and Portugal. There is a limit to a total area eligible for the payment, which varies among member States.
Encouragement for growing traditional cereal (1992-94), (Budget item B1-3801 in the 1994 EC Budget): payment per hectare of cereal cultivated under traditional farming practices, allocated to all cereals according to their acreage.
Other aid and assistance for arable crops (Budget item B1-1079 in the 1996 EC Budget) (refers to oilseeds); Direct payments to oilseeds producers (1993) and Other interventions for oilseeds (1992) (Budget item B1-128 in the 1992 EC Budget) (payments per hectare for the 1992/93 marketing year). Allocated to rapeseed, sunflower and soyabeans according to the share in the total oilseed acreage.
Rice
Per hectare payments for rice (Budget item B1-1858 in the 1998 EC Budget): payments introduced in 1997/98 marketing year to compensate rice producers for a 15% cut in the intervention price. They are similar to the compensatory area payments for cereals, are based on historic national yields for the years between 1993/94 to 1995/96 and are subject to a ceiling on the area.
Beef
Suckler cow premiums (1993-onwards) (Budget items B1-2120 in the 1998 EC Budget): see category C.1 above
Additional premiums for suckler cows (1993-onwards) (Budget items B1-2121 in the 1998 EC Budget): see category C.1 above
Beef special premium (1993-onwards) (Budget items B1-2122 in the 1998 EC Budget): see category C.1 above
Deseasonalisation premiums (Budget items B1-2123 in the 1998 EC Budget): payments per animal to producers for withholding supplies at certain times of the year. When the number of male bovines slaughtered in a Member state between 1 September and 30 November exceeds 35% of the annual slaughtering of male bovines, an additional premium is granted. It is payable on degressive basis starting at ECU 72.5 per animal and is payable on animals that have already received the beef special premium and are slaughtered between 1 January and 30 April. By the end of the payment period the premium declines ton ECU 18.11. In practice this premium has only operated in Ireland and Northern Ireland.
Extensification premiums (Budget items B1-2125 in the 1998 EC Budget): complementary payment for producers with a stocking density of less than 1.5 LU per hectare, for whom the special and/or suckler cow premium are increased by ECU 36.2 or by ECU 52 if stocking is at less than 1 LU per hectare.
POSEIDOM (Reg. 89/687): complementary payments for suckler cows (Budget item B1-2510 in the 1998 EC Budget).
Sheepmeat and goat meat
Ewe and goat premiums: from 1993-onwards. See category C.1 above
Fixed ewe and goat premium in LFA and mountain areas: from 1993-onwards. See category C.1 above.
Fruits and vegetables
Specific measures (Budget items B1-1517 in the 1998 EC Budget): payment per hectare for asparagus planted for processing. It is a temporary scheme for three years, limiting to 9 000 hectares.
Wine
Restructuring and varietal conversion system for wine (Budget B1-165 item in the 2001 EC Budget): Established with the Agenda 2000 reform to compensate for the losses in receipts due to restructuring of vineyards to improve the quality of wine as well as a contribution to the cost of restructuring. The former part is paid per hectare, there is a limit of 54 000 hectare per wine year for the whole EU and the total budget is euro 400 million. Concerning the latter part, 50% of the costs is financed by the EU (75% in the Objective 1 areas). 50% allocated to C2 and 50% to E3 (Payments based on fixed inputs).
Compensatory allowances (Reg. 2328/91, Art. 19): payments per animal to farmers of dairy cows, cattle, sheep, goats and equine animals. In LFAs other than mountainous (Art. 3.3), the payment is limited to a maximum of 20 dairy cows per holding and 1.4 LU per forage hectare of the total forage area of the holding. The scheme also provides for an aid per hectare for crop production, excluding the area used for animal feed, durum wheat, fruit trees (apples, pears, peaches), vineyards and sugarbeet and, in practice, wheat (yields lower than 2.5 tonnes per hectare are eligible). Applicants must have a holding with at least 3 hectares of utilised agricultural land and undertake to continue farming for at least 5 years. Allocated to beef, sheepmeat and durum wheat according to their production share. As disagregated data are not available from the EC budget, the commodity shares of the compensatory allowances in member States was applied for the allocation.