L 5832 Official Journal of the European Union 28.2.2006 COUNCIL REGULATION (EC) No 319/2006 of 20 February 2006 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 THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Commu- nity, and in particular the third subparagraph of Article 37(2) thereof, Having regard to the proposal from the Commission, Having regard to the Opinion of the European Parliament (1), Having regard to the Opinion of the European Economic and Social Committee (2), Whereas: (1) Council Regulation (EC) No 318/2006 of 20 February 2006 on the common organisation of the markets in the sugar sector (3) provides for an important reform of the sugar common market organisation. The measures intro- duced by that Regulation include a significant reduction in the institutional support price for Community sugar in steps. (2)  Asa consequence of reduced market support in the sugar sector, income support for farmers should be increased. The overall level of the payment should develop in parallel with the gradual reduction of market supports. (3)  The de-coupling of direct producer support and the intro- duction of the single payment scheme are essential ele- ments in the process of reforming the common agricultural policy aimed at moving away from a policy of price and production support to a policy of farmer income support. Regulation (EC) No 1782/2003 (*) introduced those ele- ments for a variety of agricultural products. (4)  In order to meet the objectives underlying the reform of the common agricultural policy, the support for sugar beet, cane and chicory used for the production of sugar or inu- lin syrup should be de-coupled and integrated into the single payment scheme. (1) Opinion delivered on 19 January 2006 (not yet published in the Official Journal). (%) Opinion delivered on 26 October 2005 (not yet published in the Official Journal). (?) See page 1 of this Official Journal. (%) OJL270,21.10.2003, p. 1. Regulation as last amended by Commis- sion Regulation (EC) No 2183/2005 (O] L 347, 30.12.2005, p. 56). () Consequently, the rules on direct support schemes laid down in Regulation (EC) No 1782/2003 should be adapted. To buffer the effects of the restructuring process in Mem- ber States which have granted the restructuring aid pro- vided for in Council Regulation (EC) No 320/2006 of 20 February 2006 establishing a temporary scheme for the restructuring of the sugar industry in the Commu- nity (°) for at least 50 % of the quota fixed in Regulation (EC) No 318/2006, sugar beet and cane producers should be granted an aid for a maximum of five consecutive years. The level of individual income support should be calcu- lated on the basis of the support the farmer has benefited from in the context of the common organisation of the market in the sugar sector for one or more marketing years to be determined by Member States. To ensure the proper application of the support scheme and for reasons of budget control, provision should be made for keeping the overall income support within the limit of national envelopes calculated on the basis of a his- torical reference year and taking into account, during the four first years, of additional amounts resulting from derived prices. Sugar beet and chicory growers in the new Member States have benefited since accession from price support in the framework of Regulation (EC) No 1260/2001 of 19 June 2001 on the common organisation of the markets in the sugar sector (°). Therefore, the sugar payment and the sugar and chicory components in the single payment scheme should not be subject to the application of the schedule of increments provided for in Article 143a of Regulation (EC) No 1782/2003. For the same reasons, Member States applying the single area payment scheme should, moreover, have the possibility to grant the support resulting from the sugar reform in the form of a separate direct payment outside that scheme. (°) See page 42 of this Official Journal. (6) OJ L 178, 30.6.2001, p. 1. Regulation as last amended by Commis- sion Regulation (EC) No 39/2004 (O] L 6, 10.1.2004, p. 16).