Processing aid for flax and hemp grown for fibre; hemp eligible for the single payment scheme

PURPOSE: to revise the amount of aid as regards the i) processing of flax and hemp grown for fibre and ii) hemp eligible for the single payment scheme.

LEGISLATIVE ACT: Council Regulation 953/2006/EC amending Regulation 1673/2000/EC as regards the processing aid for flax and hemp grown for fibre and Regulation 1782/2003/EC as regards hemp eligible for the single payment scheme.

CONTENT:  the Council adopted, by qualified majority, a Regulation amending Regulation 1673/2000/EC on the common organisation of the markets in flax and hemp grown for fibre and Regulation 1782/2003/EC as regards hemp eligible under the single payment scheme. The Czech delegation abstained.

The aim of the Regulation is to extend until the end of the 2007/2008 marketing year  processing aid for short flax fibre and hemp fibre (EUR 90 per tonne) and for long flax fibre (EUR 160 per tonne for 2006/2007 and 2007/2008 and EUR 200 per tonne from 2008/2009 onwards).

The Regulation also provides for the extension of transitional additional aid (from EUR 50 per hectare to EUR 120 per hectare depending on the different regions) in certain regions of the Netherlands, Belgium and France until the 2007/2008 marketing year. Such measures should allow for the gradual adaptation of farm structures to the new market conditions.

The Regulation also makes the cultivation of hemp for other industrial uses eligible for the single payment scheme, as well as hemp grown from fibre.

ENTRY INTO FORCE:  6 July 2006. Article 2 (production of hemp) will apply from 1 January 2007.