Reform of the common agricultural policy (CAP): production, processing and marketing structures

This proposal followed a request from the Council to go into greater detail on the necessary adjustments to these regulations, submitted during the adoption in December 1993 of Regulation (EC) 3669/93 amending the regulations concerning Objective 5a. The amendments thus tabled could be summarised as follows: - the amounts of aid provided for under Regulation (EEC) No 2328/91 concerning production structures were updated to take account of average inflation rates; - the system of investment aid was made optional; - the criteria for accessing investment aid were relaxed by doing away with the ceiling of 120% for the reference income at the end of the plan as well as the condition for improving the level of income; - the refusals of, or limitations on, investment aid designed to prevent an increase in the production of products for which no normal market outlet could be found were relaxed for investment in the field of the protection of the environment, hygiene conditions on livestock enterprises and animal welfare, where there was no increase in production capacity; - investment aid in group-operated holdings was the subject of technical adjustments in order to facilitate aid to these holdings, in the case of associations with the legal status of a cooperative, and to provide for support for a greater number of group-operated holdings. In addition, more flexible conditions were laid down for cases where the majority of the farmers running such holdings met the conditions required to benefit from investment aid on an individual basis; - aid to young farmers was extended to those who were not full-time farmers but derived their income from several activities, including forestry, tourism or craft activities; - the framework of state aid was relaxed, particularly with regard to investment aid in the areas of the protection of the environment, hygiene conditions on livestock enterprises and animal welfare, provided that this investment did not give rise to an increase in production capacity; - Regulation (EEC) No 866/90 concerning processing and marketing structures was amended to align the time frame for payments to beneficiaries with the general provisions of the Structural Funds and to extend the range of criteria covering investments. Once these adjustments were adopted, the Commission planned to consolidate all the regulations concerned. �