EC SOURCES DETAIL NEW FARM SOCIAL PACKAGE

  The 350 mln Ecu three-year package of
  social and structural measures agreed early today by European
  Community farm ministers features a plan to compensate farmers
  for reducing output of certain surplus products, EC Commission
  sources said.
      The ministers agreed that under this "extensification"
  scheme, farmers would qualify for compensation if they cut
  output of specific products by at least 20 pct.
      The plan would initially apply to cereals, beef, veal and
  wine, they added.
      Cereals farmers would have to achieve their output cuts by
  reducing acreage, while cattle farmers would reduce their
  number of head and vinegrowers would cut yield. In each case,
  farmers would have to undertake not to step up their capacity
  for output of other products which are in surplus in the EC.
      The sources said payment levels have not yet been fixed but
  will be designed to compensate farmers for loss of profit on
  the production they forego.
      The sources said the package also contains provisions for
  payments to farmers who embark on a program aimed at protecting
  or improving the environment.
      It would also mean compensatory allowances in less favoured
  farming areas would be extended to crops. At present such
  allowances are available only for livestock.
      The package would provide 20 mln Ecus for research into
  alternative farming techniques, the sources added.
      At a news conference EC Farm Commissioner Frans Andriessen
  said the Commission is also working on proposals to enable the
  EC and member states to provide direct income supports for
  relatively poor farmers.
      Andriessen did not give full details, but said member state
  aid would be subject to "strict criteria to avoid distortion of
  competition."
      EC payments would aim to help farmers to survive a
  difficult period while the EC tackles the problems of surplus
  production.
      The Commission withdrew from the package agreed last night
  proposals to pay "early retirement" pensions to farmers aged 55
  or over who gave up production. Those who took their land
  completely out of farm production, rather than passing it on to
  their heirs, would have received more generous payments.
      Andriessen said the Commission plans to present revised
  proposals along these lines in an effort to get a scheme
  agreed.
  

