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Aids and refunds related to the common organisation of markets in agricultural products

 

SUMMARY OF:

Regulation (EU) No 1370/2013 determining measures on fixing certain aids and refunds related to the common organisation of the markets in agricultural products

WHAT IS THE AIM OF THE REGULATION?

It lays down the EU rules for fixing prices, levies, aid, refunds and quotas for various agricultural products.

KEY POINTS

The regulation is based on Article 43(3) of the Treaty on the Functioning of the European Union (TFEU), meaning that it is a regulation adopted by the Council. [Readers should note that this is in contrast to measures under Article 43(2) TFEU which are adopted by means of the ordinary legislative procedure (see Judgment of the Court of 7 September 2016, Federal Republic of Germany v European Parliament and Council of the European Union, Case C-113/14).]

The legislation sets out conditions for:

  • reference thresholds* for cereals, rice, sugar, beef and veal, milk and dairy products such as butter, pigmeat and olive oil;
  • public intervention prices* for wheat, durum wheat, barley, maize, rice, skimmed milk powder, butter, beef and veal;
  • ceilings on wheat (3 million tonnes), butter (50,000 tonnes) and skimmed milk powder (109,000 tonnes) which the EU may buy and take off the market over a certain period;
  • aid for private storage for products ranging from sugar and olive oil to cheese and beef;
  • EU finance for subsidised fruit, vegetables and milk for schools;
  • charges, refunds and quotas on sugar production until 30 September 2017.

The European Commission uses implementing acts to:

  • review and adjust reference thresholds in light of production costs and market trends;
  • increase or reduce public intervention prices;
  • organise tendering procedures for public intervention and storage aids;
  • set the maximum level of EU aid for school fruit, vegetables and milk and assess these every 3 years;
  • fix the level of export refunds according to market conditions.

The Committee for the Common Organisation of the Agricultural Markets assists the Commission in implementing the legislation.

FROM WHEN DOES THE REGULATION APPLY?

It has applied since 1 January 2014.

BACKGROUND

The Common Market Organisation is a set of rules that regulates the market for agricultural produce in the EU. It aims to provide a safety net for farmers by allocating sector-specific support.

KEY TERMS

Reference thresholds: a legally-fixed price level against which actual market prices are compared to determine whether EU aid should be triggered.
Intervention price: the price fixed by the EU to pay farmers for their products whatever the level of market prices.

MAIN DOCUMENT

Council Regulation (EU) No 1370/2013 of 16 December 2013 determining measures on fixing certain aids and refunds related to the common organisation of the markets in agricultural products (OJ L 346, 20.12.2013, pp. 12-19)

Successive amendments to Regulation (EU) No 1370/2013 have been incorporated into the original text. This consolidated version is of documentary value only.

RELATED DOCUMENTS

Regulation (EU) No 510/2014 of the European Parliament and of the Council of 16 April 2014 laying down the trade arrangements applicable to certain goods resulting from the processing of agricultural products and repealing Council Regulations (EC) No 1216/2009 and (EC) No 614/2009 (OJ L 150, 20.5.2014, pp. 1-58)

Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007 (OJ L 347, 20.12.2013, pp. 671-854)

See consolidated version.

Regulation (EU) No 1303/2013 of the European Parliament and of the Council of 17 December 2013 laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083/2006 (OJ L 347, 20.12.2013, pp. 320-469)

See consolidated version.

last update 21.03.2019

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