No L 112/2 Official Journal of the European Communities 3.5.94 COUNCIL REGULATION (EC) No 1017/94 of 26 April 1994 concerning the conversion of land currently under arable crops to extensive livestock farming in Portugal THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 43 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European Parli- ament ('), Whereas more than one million hectares in several regions of Portugal have been collectivized in the context of the ‘Reform Agraria’ ; whereas much of this land has been or is being redistributed to the former owners of their successors ; whereas part of this land was dedicated to livestock production before collectivization ; whereas, following collectivization, this land was largerly used for the cultivation of arable crops ; whereas, if the viability of the holdings concerned is not to be endangered, the conversion of the said land to traditional farming activi- ties, namely extensive farming of cattle and/or sheep and goats, as recommended by Portugal in the regions concerned, requires the existence of a sufficient number of premium rights as referred to in Article 4d of Council Regulation (EEC) No 805/68 of 27 June 1968 on the common organization of the market in beef and veal (3 and Atrticle 5a of Council Regulation (EEC) No 3013/89 of 25 September 1989 on the common organization of the market in sheepmeat and goatmeat(®); whereas Portugal should be enabled to implement a programme for the conversion of this land by providing it with a specific national reserve of premium rights; whereas, so as not to disturb the situation on the market in Portugal, the maximum number of livestock units (LU) which may be the subject of the conversion programme must be restricted ; Whereas the land collectivization process, because of its nature and scale, has affected all farming activity, and (") Opinion delivered on 22 April 1994 (not yet published in the Official Journal). () OJ No L 148, 28. 6. 1968, p. 24. Regulation as last amended by Commission Regulation (EC) No 3611/93 (O] No L 328, 29. 12. 1993, p. 7). () OJ No L 289, 7. 10. 1989, p. 1. Regulation as last amended by Commission Regulation (EC) No 233/94 (O] No L 30, 3. 2. 1994, p. 9). therefore all farms, in the regions concerned ; whereas all the agricultural areas in the collectivized regions should therefore be eligible for the conversion programme ; Whereas access to the conversion programme should be restricted to producers with all or part of their plots in the regions affected by collectivization, provided they fulfil certain conditions and undertake to convert such plots to extensive livestock farming with a maximum stocking density per converted hectare, in accordance with a conversion plan approved by the competent authorities ; Whereas male cattle born to new suckler cows installed under the conversion programme must also be eligible for the special premium provided for in Article 4 of Regula- tion (EEC) No 805/68, without prejudice to current producers ; whereas it is therefore appropriate that part of the premium rights arising from the conversion of arable crops to the raising of suckler cows should be used to incerease the regional ceiling on premiums referred to in the abovementioned Regulation ; Whereas, in order to prevent abuses of the system, the transfer and temporary transfer of rights obtained as a result of conversion should be restricted and provision should be made for penalties where producers do not fulfil their undertakings ; Whereas the conversion programme must be completed within a time limit ; whereas it should therefore be stipu- lated that, at the end of the programme, the specific reserve created pursuant to this Regulation as well as any rights not yet allocated should lapse ; Whereas the arable areas converted to extensive livestock farming must cease to be eligible for compensatory payments under the scheme set up by Council Regulation (EEC) No 1765/92 of 30 June 1992 establishing a support system for producers of certain arable crops (%) ; whereas such land should therefore be considered as permanent pasture as referred to in Article 9 of that Regulation and Portugal’s regional base area should therefore be reduced by the total area of land converted, () OJ No L 181, 1. 7. 199, p. 12. Regulation as last amended by Commission Regulation (EC) No 231/94 (O] No L 30, 3. 2. 1994, p. 2).