Common organisation of the market in hops

From 1 January 2005 (end of transitional period: 31 December 2005) European Union aid for hops will switch over to the decoupled system (aid granted independently of production) and to the single farm payment. Nevertheless, each Member State may grant a maximum of 25% of aid to the sector as additional aid for farmers and/or approved producer organisations.

ACT

Council Regulation (EC) No 864/2004 of 29 April 2004 amending Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers, and adapting it by reason of the accession of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia to the European Union.

SUMMARY

Scope

The common organisation of the market in hops covers fresh or dried hop cones, hop powder and pellets, and hop extracts.

Decoupling

From 1 January 2005, direct aid for hops will be completely decoupled from production (except in Member States which apply until 31 December 2005 the transitional period for switching over to the new system).

Direct aid

Subject to their respective national limits, Member States will be able to retain up to 25% of direct aid under the old system for the area in production or temporarily set aside. That aid is granted to take account of specific market circumstances or structural conditions at regional level (producer regions which constitute special cases).

Calculating the amount of direct aid (for areas in production or temporarily set aside)

To calculate the reference amount of aid per producer, the Member State multiplies the number of hectares (to two decimal places) for which aid was granted in 2000-02 by EUR 480 per hectare.

Cross compliance

In the same way as for other direct aid, farmers must satisfy a number of criteria: cross compliance, modulation and financial discipline.

Background

The common organisation of the market in hops was amended as part of the so-called Mediterranean package during negotiations at the Council and the European Parliament. The package also includes tobacco, cotton, olive oil and table olives. Although reform of the hop sector can start in 2005, reform of the common organisation of the markets in the other products is not due to enter into force until 1 January 2006.

Those products were subsequently incorporated into the system of single decoupled payments, but with some special features: either retaining part of the old per-hectare aid (cotton, olive oil); retaining supplementary aid to farmers or producer groups (hops) or switching over completely to the new system, but with a longer transitional period (tobacco).

Cotton, tobacco and olive oil are produced in a number of regions whose development is lagging behind. The reform attempts to support farming in those regions by giving priority to farmers' income rather than to product aid. In that context, tobacco and cotton will be eligible for production-coupled support aimed at adapting to the new system. Coupled aid for hops may be granted in order to take account of specific market circumstances or structural conditions at regional level.

The current "Mediterranean products" reform is based on the Commission communication to the Council and the European Parliament entitled "Accomplishing a sustainable agricultural model for Europe through the reformed CAP - the tobacco, olive oil, cotton and sugar sectors ". For hops, the reform was preceded by a report on evolution of the hop sector [COM (2003) 571 final].

For the rules currently in force with regard to hops (until 31 December 2005 at the latest), please refer to the relevant SCADPlus factsheet.

For other information relating to hops, please consult the Directorate-General for Agriculture's reference page.

RELATED ACTS

Commission Regulation (EC) No 1850/2006 of 14 December 2006 laying down detailed rules for the certification of hops and hop products [Official Journal L 355 of 15.12.2006].

Commission Regulation (EC) No 1557/2006 of 18 October 2006 laying down detailed rules for implementing Council Regulation (EC) No 1952/2005 as regards registration of contracts and the communication of data concerning hops [Official Journal L 288 of 19.10.2006].

List of recognised hop producer groups and associations [Official Journal C 230 of 23.9.2006].

List of hop certification centres and the codes for each centre [Official Journal 230 of 23.9.2006].

List of hop production areas [Official Journal 230 of 23.9.2006].

See also

For more details, please see the legislation relating to hops.

Last updated: 14.01.2008