EXPERIENCE WITH THE INTEGRATED ADMINISTRA TIVE AND CONTROL-SYSTEM IN GERMANY

The EU agricultural reform of 1992 introduced direct income subsidies for farmers in compensation for the agreed price reductions. These inc lude acreage subsidies for producers of specified products (e.g. cerea ls and oilseeds), and animal subsidies for beef and mutton producers. The EU Council of Farm Ministers has imposed a highly differentiated s eries of preconditions for the granting of such subsidies, with specia l reference to conditions linked to the payment of subsidies for the i ndividual acreages and animals. In December 1992, the Council of Farm Ministers approved the Regulation on the Introduction of an Integrated Administrative and Control System (IACS) to administer the considerab le volume of applications from farmers and to maintain effective and u niform control over the manner in which the individual conditions of e ligibility for subsidies were being observed in the EU's member states . This is a novel and effective system designed to administer the maxi mum number of subsidies with the minimum of effort and expense. The sy stem will be based on modern information techniques, and will thus mak e the application procedures as effective, and for the farmers, as sim ple, as possible. The system is also designed to help provide a reliab le check on adherence to the myriad conditions applicable to subsidies and, by working our the actual eligibility for subsidisation, to obvi ate any unwarranted payments within the EU. The IACS comprises five ma in elements: the acreage identification system, the animal identificat ion system, the application forms, the computer-based data bank and th e integrated control system. These elements form a single unit, and ca nnot be viewed in isolation. An initial transitional period of three y ears was planned for the introduction of the IACS in the first instanc e. However, problems arose during the build up of the system. This was because, apart from its basic structure, the IACS will always be as c omplicated as the form of the individual subsidy measures demands. The simpler the regulations for the granting of subsidies, the simpler it will be to employ the IACS. It was for this reason that Germany and c ertain other EU member states demanded a series of simplifications in 1993/94, and forced them through. In the end, the EU Council of Farm M inisters agreed to extend the transitional period by one year. Only af ter close and unremitting co-operation between the federal government and the federal states, which are responsible for the implementation o f the EU's agricultural reform, has it proved possible to build-up a v iable IACS in Germany within the given period of time. The European Co mmission, exercising ist controlling function, will monitor the furthe r perfection of the system and its proper application.