BETA


1999/0237(CNS) Flax and hemp: common organisation of the markets CMO (amend. Regulation (EEC) No 1308/70)

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead AGRI SCHIERHUBER Agnes (icon: PPE-DE PPE-DE)
Committee Opinion BUDG CASACA Paulo (icon: PES PES)
Committee Opinion ITRE
Lead committee dossier:
Legal Basis:
EC Treaty (after Amsterdam) EC 036, EC Treaty (after Amsterdam) EC 037

Events

2008/05/20
   EC - Follow-up document
Details

The Commission presents this report on flax and hemp pursuant to Article 15(3) of Council Regulation (EC) No 1673/2000. The report is required to assess the impact of processing aid on producers, the processing industry and the market for textile fibres. The Commission must examine the possibility of extending processing aid for short flax fibre and hemp fibre and the additional aid beyond the 2007/2008 marketing year as well as the possibility of integrating this aid scheme in the general framework of support for farmers under the common agricultural policy laid down by Regulation (EC) No 1782/2003.

The report notes that the 2003 reform continued the shift from product to producer support through the introduction of a decoupled Single Payment Scheme. This was done in order to encourage competitiveness and market orientation and at the same time increase the transfer efficiency of income payments. The Health Check review poses the question whether coupled support, despite the overall orientation towards full decoupling, is still pertinent.

The additional processing aid for processors of flax grown in traditional areas was introduced by the Council as a transitional measure, and is scheduled to be abolished. The aid has contributed to competitiveness of flax cultivation in these regions (in particular in Belgium and the Netherlands), but it should not be continued from the 2009/2010 marketing year in view of its transitional character (to allow for gradual adjustment of the sector) and its application in three Member States only.

The objective of the temporary processing aid for short flax and hemp fibres is to encourage the development of new (industrial) products and potential outlets. The Commission questions whether years of support for short fibres have been most effective in encouraging such development. The use of short flax fibres has only slightly increased since 1999. Besides the traditional outlet for specialty papers, only use as composite material in the car industry shows significant growth.

Comparing the gross margins for hemp production with those for alternative crops shows that without aid for short fibre, margins would be narrower, specifically taking into account that hemp production is more labour intensive than alternative crops. This may lead to some reduction in the area under hemp.

The Council decided in 2000 to phase out the aid for short fibres, which has been extended for three additional years only to allow an assessment in the context of the overall Health Check review. Project support through Rural Development or research programmes may be a more cost efficient way to stimulate development of competitive renewable products. On the basis of these developments and considerations, the specific processing aid for short fibres should not be continued from the 2009/2010 marketing year.

Continuing processing aid for long flax fibres could contribute to maintaining employment and economic activity in production regions. However, maintaining processing aid is not in accordance with the principles of the 2003 CAP reform. In addition, continued high cereal prices would most likely entail a reduction in production and a loss of environmental benefits and employment, which, despite this specific aid, raises questions regarding its effectiveness.

Therefore full decoupling and integration of the aid in the Single Payment Scheme appears to be the best solution . Similar to the earlier integration of support for hemp and flax growers in the Single Payment Scheme, decoupling would integrate the processing aid budget into this system. This option would allow for considerable simplification compared to the relatively complex current regime.

Decoupling introduces flexibility in choice for producers. Farmers will continue to produce where it is profitable, and adapt their production to the market or change to alternative products where it is adequate, while they are still obliged to keep land in good agricultural and environmental condition, in line with cross-compliance rules. Overall, decoupling leaves the producer at least as well off as before, and most likely better off as a result of production flexibility and market orientation.

In view of the gross margins of alternative crops and the higher costs and risks of flax production, it is estimated that the area under flax will decrease. And without processing aid the smaller processors especially would face serious difficulties, specifically in the traditional production regions. For this reason, gradually phasing out processing aid for long flax fibres, together with the possibility to apply Article 69 of Regulation (EC) No 1782/2003, seem appropriate to allow restructuring and modernisation of the industry.

2008/05/20
   EC - Follow-up document
2000/07/29
   Final act published in Official Journal
2000/07/27
   EP/CSL - Act adopted by Council after consultation of Parliament
2000/07/27
   EP - End of procedure in Parliament
2000/07/17
   CSL - Council Meeting
2000/07/06
   EP - Text adopted by Parliament, 1st reading/single reading
2000/07/06
   EP - Decision by Parliament
Documents
2000/07/03
   EP - Vote in committee
2000/06/28
   EP - Amendments tabled in committee
Documents
2000/06/14
   CofR - Committee of the Regions: opinion
2000/05/16
   EP - Text adopted by Parliament, partial vote at 1st reading/single reading
2000/05/16
   EP - Decision by Parliament
Documents
2000/05/15
   EP - Debate in Parliament
2000/04/18
   EP - Committee report tabled for plenary, 1st reading/single reading
2000/04/18
   EP - Vote in committee
2000/04/18
   EP - Committee report tabled for plenary, 1st reading/single reading
Documents
2000/04/10
   EP - Committee opinion
Documents
2000/04/03
   EP - Amendments tabled in committee
Documents
2000/03/29
   ESC - Economic and Social Committee: opinion, report
2000/03/14
   EP - Committee draft report
Documents
2000/01/27
   EP - CASACA Paulo (PES) appointed as rapporteur in BUDG
1999/12/13
   EP - Committee referral announced in Parliament
1999/11/10
   EC - Legislative proposal published
1999/10/19
   EP - SCHIERHUBER Agnes (PPE-DE) appointed as rapporteur in AGRI

Documents

History

(these mark the time of scraping, not the official date of the change)

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  • date: 2000-06-28T00:00:00 docs: title: PE232.574/AMS type: Amendments tabled in committee body: EP
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  • date: 2008-05-20T00:00:00 docs: url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2008&nu_doc=307 title: EUR-Lex title: COM(2008)0307 summary: The Commission presents this report on flax and hemp pursuant to Article 15(3) of Council Regulation (EC) No 1673/2000. The report is required to assess the impact of processing aid on producers, the processing industry and the market for textile fibres. The Commission must examine the possibility of extending processing aid for short flax fibre and hemp fibre and the additional aid beyond the 2007/2008 marketing year as well as the possibility of integrating this aid scheme in the general framework of support for farmers under the common agricultural policy laid down by Regulation (EC) No 1782/2003. The report notes that the 2003 reform continued the shift from product to producer support through the introduction of a decoupled Single Payment Scheme. This was done in order to encourage competitiveness and market orientation and at the same time increase the transfer efficiency of income payments. The Health Check review poses the question whether coupled support, despite the overall orientation towards full decoupling, is still pertinent. The additional processing aid for processors of flax grown in traditional areas was introduced by the Council as a transitional measure, and is scheduled to be abolished. The aid has contributed to competitiveness of flax cultivation in these regions (in particular in Belgium and the Netherlands), but it should not be continued from the 2009/2010 marketing year in view of its transitional character (to allow for gradual adjustment of the sector) and its application in three Member States only. The objective of the temporary processing aid for short flax and hemp fibres is to encourage the development of new (industrial) products and potential outlets. The Commission questions whether years of support for short fibres have been most effective in encouraging such development. The use of short flax fibres has only slightly increased since 1999. Besides the traditional outlet for specialty papers, only use as composite material in the car industry shows significant growth. Comparing the gross margins for hemp production with those for alternative crops shows that without aid for short fibre, margins would be narrower, specifically taking into account that hemp production is more labour intensive than alternative crops. This may lead to some reduction in the area under hemp. The Council decided in 2000 to phase out the aid for short fibres, which has been extended for three additional years only to allow an assessment in the context of the overall Health Check review. Project support through Rural Development or research programmes may be a more cost efficient way to stimulate development of competitive renewable products. On the basis of these developments and considerations, the specific processing aid for short fibres should not be continued from the 2009/2010 marketing year. Continuing processing aid for long flax fibres could contribute to maintaining employment and economic activity in production regions. However, maintaining processing aid is not in accordance with the principles of the 2003 CAP reform. In addition, continued high cereal prices would most likely entail a reduction in production and a loss of environmental benefits and employment, which, despite this specific aid, raises questions regarding its effectiveness. Therefore full decoupling and integration of the aid in the Single Payment Scheme appears to be the best solution . Similar to the earlier integration of support for hemp and flax growers in the Single Payment Scheme, decoupling would integrate the processing aid budget into this system. This option would allow for considerable simplification compared to the relatively complex current regime. Decoupling introduces flexibility in choice for producers. Farmers will continue to produce where it is profitable, and adapt their production to the market or change to alternative products where it is adequate, while they are still obliged to keep land in good agricultural and environmental condition, in line with cross-compliance rules. Overall, decoupling leaves the producer at least as well off as before, and most likely better off as a result of production flexibility and market orientation. In view of the gross margins of alternative crops and the higher costs and risks of flax production, it is estimated that the area under flax will decrease. And without processing aid the smaller processors especially would face serious difficulties, specifically in the traditional production regions. For this reason, gradually phasing out processing aid for long flax fibres, together with the possibility to apply Article 69 of Regulation (EC) No 1782/2003, seem appropriate to allow restructuring and modernisation of the industry. type: Follow-up document body: EC
  • date: 2008-05-20T00:00:00 docs: url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=SECfinal&an_doc=2008&nu_doc=1905 title: EUR-Lex title: SEC(2008)1905 type: Follow-up document body: EC
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    procedure/instrument
    Old
    Regulation
    New
    • Regulation
    • Amended by 2003/0006(CNS) Amended by 2003/0275(CNS) Amended by 2006/0043(CNS)
    procedure/subject
    Old
    • 3.10.06.05 Textile plants, cotton
    New
    3.10.06.05
    Textile plants, cotton
    procedure/summary
    • Amended by
    • Amended by
    • Amended by
    activities/10/docs/1/url
    Old
    http://eur-lex.europa.eu/JOHtml.do?uri=OJ:L:2000:193:SOM:EN:HTML
    New
    http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L:2000:193:TOC
    links/European Commission/title
    Old
    PreLex
    New
    EUR-Lex
    procedure/dossier_of_the_committee
    AGRI/5/12285
    activities
    • date: 1999-11-10T00:00:00 docs: url: http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=1999&nu_doc=576 celexid: CELEX:51999PC0576(02):EN type: Legislative proposal published title: COM(1999)0576 type: Legislative proposal published body: EC commission:
    • date: 1999-12-13T00:00:00 body: EP type: Committee referral announced in Parliament, 1st reading/single reading committees: body: EP responsible: True committee: AGRI date: 1999-10-19T00:00:00 committee_full: Agriculture and Rural Development rapporteur: group: PPE-DE name: SCHIERHUBER Agnes body: EP responsible: False committee: BUDG date: 2000-01-27T00:00:00 committee_full: Budgets rapporteur: group: PSE name: CASACA Paulo body: EP responsible: False committee_full: Industry, External Trade, Research, Energy committee: ITRE
    • body: EP committees: body: EP responsible: True committee: AGRI date: 1999-10-19T00:00:00 committee_full: Agriculture and Rural Development rapporteur: group: PPE-DE name: SCHIERHUBER Agnes body: EP responsible: False committee: BUDG date: 2000-01-27T00:00:00 committee_full: Budgets rapporteur: group: PSE name: CASACA Paulo body: EP responsible: False committee_full: Industry, External Trade, Research, Energy committee: ITRE docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A5-2000-124&language=EN type: Committee report tabled for plenary, 1st reading/single reading title: A5-0124/2000 date: 2000-04-18T00:00:00 type: Vote in committee, 1st reading/single reading
    • date: 2000-05-15T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20000515&type=CRE type: Debate in Parliament title: Debate in Parliament body: EP type: Debate in Parliament
    • date: 2000-05-16T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P5-TA-2000-211 type: Decision by Parliament, 1st reading/single reading title: T5-0211/2000 body: EP type: Decision by Parliament, 1st reading/single reading
    • date: 2000-07-03T00:00:00 body: EP type: Vote in committee, 1st reading/single reading committees: body: EP responsible: True committee: AGRI date: 1999-10-19T00:00:00 committee_full: Agriculture and Rural Development rapporteur: group: PPE-DE name: SCHIERHUBER Agnes body: EP responsible: False committee: BUDG date: 2000-01-27T00:00:00 committee_full: Budgets rapporteur: group: PSE name: CASACA Paulo body: EP responsible: False committee_full: Industry, External Trade, Research, Energy committee: ITRE
    • date: 2000-07-06T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P5-TA-2000-307 type: Decision by Parliament, 1st reading/single reading title: T5-0307/2000 body: EP type: Decision by Parliament, 1st reading/single reading
    • date: 2000-07-17T00:00:00 body: CSL type: Council Meeting council: Agriculture and Fisheries meeting_id: 2284
    • date: 2000-07-27T00:00:00 body: EP type: End of procedure in Parliament
    • date: 2000-07-27T00:00:00 body: EP/CSL type: Act adopted by Council after consultation of Parliament
    • date: 2000-07-29T00:00:00 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=32000R1673 title: Regulation 2000/1673 url: http://eur-lex.europa.eu/JOHtml.do?uri=OJ:L:2000:193:SOM:EN:HTML title: OJ L 193 29.07.2000, p. 0016
    committees
    • body: EP responsible: True committee: AGRI date: 1999-10-19T00:00:00 committee_full: Agriculture and Rural Development rapporteur: group: PPE-DE name: SCHIERHUBER Agnes
    • body: EP responsible: False committee: BUDG date: 2000-01-27T00:00:00 committee_full: Budgets rapporteur: group: PSE name: CASACA Paulo
    • body: EP responsible: False committee_full: Industry, External Trade, Research, Energy committee: ITRE
    links
    European Commission
    other
      procedure
      reference
      1999/0237(CNS)
      instrument
      Regulation
      legal_basis
      stage_reached
      Procedure completed
      summary
      subtype
      Legislation
      title
      Flax and hemp: common organisation of the markets CMO (amend. Regulation (EEC) No 1308/70)
      type
      CNS - Consultation procedure
      final
      subject
      3.10.06.05 Textile plants, cotton