Common organisation of the market in hops
From 1 January 2005 (end of transitional period: 31 December 2005) European Union aid for hops will switch over to the decoupled system (aid granted independently of production) and to the single farm payment. Nevertheless, each Member State may grant a maximum of 25% of aid to the sector as additional aid for farmers and/or approved producer organisations.
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.
The common organisation of the market in hops covers fresh or dried hop cones, hop powder and pellets, and hop extracts.
From 1 January 2005, direct aid for hops will be completely decoupled from production (except in Member States which apply until 31 December 2005 the transitional period for switching over to the new system).
Subject to their respective national limits, Member States will be able to retain up to 25% of direct aid under the old system for the area in production or temporarily set aside. That aid is granted to take account of specific market circumstances or structural conditions at regional level (producer regions which constitute special cases).
Calculating the amount of direct aid (for areas in production or temporarily set aside)
To calculate the reference amount of aid per producer, the Member State multiplies the number of hectares (to two decimal places) for which aid was granted in 2000-02 by EUR 480 per hectare.
In the same way as for other direct aid, farmers must satisfy a number of criteria: cross compliance, modulation and financial discipline.
The common organisation of the market in hops was amended as part of the so-called Mediterranean package during negotiations at the Council and the European Parliament. The package also includes tobacco, cotton, olive oil and table olives. Although reform of the hop sector can start in 2005, reform of the common organisation of the markets in the other products is not due to enter into force until 1 January 2006.
Those products were subsequently incorporated into the system of single decoupled payments, but with some special features: either retaining part of the old per-hectare aid (cotton, olive oil); retaining supplementary aid to farmers or producer groups (hops) or switching over completely to the new system, but with a longer transitional period (tobacco).
Cotton, tobacco and olive oil are produced in a number of regions whose development is lagging behind. The reform attempts to support farming in those regions by giving priority to farmers' income rather than to product aid. In that context, tobacco and cotton will be eligible for production-coupled support aimed at adapting to the new system. Coupled aid for hops may be granted in order to take account of specific market circumstances or structural conditions at regional level.
The current "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 was preceded by a report on evolution of the hop sector [COM (2003) 571 final].
For the rules currently in force with regard to hops (until 31 December 2005 at the latest), please refer to the relevant SCADPlus factsheet.
For other information relating to hops, please consult the Directorate-General for Agriculture's reference page.
|Act||Entry into force||Deadline for transposition in the Member States||Official Journal|
|Regulation (EC) No 864/2004. [adoption: consultation: CNS/2003/0278]||1.5.2004||1.1.2005 (for hops)||OJ L 161 of 30.4.2004|
For more details, please see the legislation relating to hops.