Annexes to COM(1975)646 -

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dossier COM(1975)646 - .
document COM(1975)646 EN
date December 15, 1975
agreement and disagreement Between national legislations.    •    .    '

The expert made several proposals for overcoming the differences observed and for reaching a consistent solution.

Following discussions, the Commission's services in close collaboration with the experts from the six original Member States arrived at certain findings and drew up several proposals:

Findings

a) Definitions

17. Contributions, the amount of finance from' non-agricultural sources, and benefits received were calculated for a given number of farmers,

•, with no account being taken of the fact that the definitions of "farmer" used in the various Member States and insurance branches

differ. ■    v •    '    - .    -    -    :    ■    \

b) Number__of persons covered ‘ ; '

18. The number of persons covered by a social security scheme for agri

culture can only be calculated in Member States where a specific agricultural scheme exists for all or some of the branches of social security, as is the case in France, Luxembourg, Italy and the Federal Republic of Germany.    t    -    -A.

In the Netherlands and Belgium, farmers are covered by general schemes or ty the schemes applicable to selfr-employed workers; their number has to be calculated on the basis of demographic or employment statistics.

19. It should be emphasized that in the six original Member States

- apart from France, which has.a special social security scheme for agriculture - no separate statistics are available, relating to all branches of social security, for all farmers and farm workers covered.

The figures supplied are therefore in most cases estimates, necessarily implying some degree of inaccuracy.

c) Membership criteria    '

20. In Prance, Italy, Luxembourg and the Federal Republic of Germany, the two membership criteria are the following:

- a minimum size of holding,    .

- farming being the subject's main occupation.

The minimum size does, of course, vary from one country to another and the criterion of main occupation did not apply in all insurance branches.    ■

’ The same situation obtains for the members of a farmer’s family.

These differences in national rules result in a membership rate for persons in agricultural occupations which may be on the high side or the low side, thus distorting the comparison of the social situation of farmers in the Member States.

C. Guidelines    • ' .    ..

a) Concept of "farmer"    -

21. In view of these difficulties, the concept of "farmer" is retained and that of "member of the family engaged in agricultural activities" is rejected since the latter was even more vague than the former.

Consequently, Table III (benefits and social charges related to the active non-worker population) will be confined, for the comparison of per capita averages, to farmers alone.

b) Determination of the number of farmers and farm workers

22. Several methods were examined for determining for each Member State the number of farmers which would serve as a basis for establishing a valid comparison :

- comparison between insurance branches, since the membership criteria vary from one branch to another;

- overall comparison accompanied by a micro-economic analysis;

/■

- average number of insured persons calculated with regard to the amount of benefits granted in each branch of insurance, as a proportion of the total amount of benefits granted to farmers* This proportion is a coefficient applicable for each branch of social ’ security to the total number of insured persons in agriculture, the various figures thus obtained being added together.

23* These various methods were not adopted, either because they could not be applied in all the Member States or because they involved ' complexities which would not necessarily be an aid to accuracy*

Farmers    ■

24* Consequently, it is suggested that all Member States take the number of farmers as being that given in farm statistics and not that appearing in sooial security statistics or based on estimates.

; . The number of farmers is. obtained from the farm employment statistics drawn up by the Statistical: Office of the European Communities on the basis cf national employment surveys. These statistics form a harmonized series which, until 1970, were drawn up by the Statistical Office at intervals of several years but which since that date have been, and are to be, drawn up each' year. They include all far:    mers with a holding of at least one hectare of worked farmland

' "    whose work output is at least' equal to 50 $ of one annual' labour

’ unit. ' '    '    -    ■    '    ’

25. This series of statistics does not give the number of persons

employed in forestry. If, however, there is a significant number of persons active in this sector, that number must be added to the number of farmers, but it is for Member States alone to make this calculation. .    ,    .

The Statistical Office of the European Communities will provide the experts with the most up-to-date statistical information. If, however, the information necessary for the year under consideration is not yet available, Member States will provide provisional estimates based on their national statistics, which, where necessary, will have to be corrected the following year when the statistics drawn up by the Statistical Office become available.

26. With regard to the statistical tables for this category, it is

suggested that the five tables already referred to on pages 1 and 2 be retained, in view of the changes agreed upon below.

It should be mentioned that in the "farmers" tables, the contributions to be shown are those paid by the head of the undertaking to cover himself and the members of his family. The benefits to be considered are those provided for him and all members of his family.

27* . In table III "Benefits and contributions relative to the number of farmers" the following formulas should be adopted:

- benefits for families divided by the number of farmers,

- contributions paid by farmers divided by the number -of farmers,

28,    It should be pointed out that in Denmark each member of a farmer's family is entitled to benefits without paying contributions and that the concept of the farmer alone having a contribution liability does net exist.

Farm workers    .    ,    .

29,    The same statistical sources will be used for establishing the

number of farm workers as for farmers. The following statistical tables for this category will be used :    .    - •.    •,

10 -

TABLE I - FINNIC TNG
.......— ——————

Functions    -    ----

'    Receipts
1    Contrit

Workers•    -
>utions

----- —

Employers
Share borne by the State and local authorities
Sickness

Maternity

Invalidity

Old-age and survivors

Death

•Industrial accidents and occupational diseases

Family "benefits

Unemployment

Others

Subtotals

,

TOTAL
- - ■ .
i

........... .    i    .....
' ■ ■
. . * .._ '___ - _
i
TABLE II - BENEFITS
. FunctionsAmount    /•
Sickness    :

Maternity    ■    .

Invalidity

Old-age and survivors

Death

Industrial accidents and occupational diseases

Family benefits

Unemployment

Others

TOTAL
• - ■ "

•A

TABLE III - CONTRIBUTIONS AND BENEFITS IN TERMS OF THE NUMBER

OF FARM WORKERS
Average per farmworker
Total of farmworkers* contributions divided by the number of farmworkers
Total of benefits    ....    ..

divided by the number of farmworkers

c) Nature and duration of the work to be carried out

The following plan for implementing the Council's instructions is suggested :    ,

- Every two years, by 15 November, each Member State will provide, in accordance with the layout attached to this document, a report on the laws and regulations in force on 1 July.

- Every intervening year Member States will report, also in November any major changes in their legislation.

- Each year, in November, Member States will provide statistical ta

bles for the two preceding years (N-1 and N-2). For the earlier year, the statistics will be final.: ,    .    ;

- Every three years the Commission will draw up a summary report based on all these documents. .....

The report will highlight, in particular, the similarities and differences in national legislation and will compare the situation of farmers with that of self-employed persons outside agriculture and witli that of workers. It will also compare the situation of farmworkers with that of workers in the distributive and industrial sectors.    '    "    .....

Only the reports with a statistical appendix and the summary report will be distributed in all the Community languages. . ■

32. In this context it is suggested that the title used for the work should be "Social Security in Agriculture?', instead'. of. "Financing of Social Security in Agriculture". .    /.

IV. FINAL REMARKS    ..    1    ■    :

33. The guidelines of the Commission contained in part III (C. points

.    21-32) should make it possible to carry out the mandate assigned to

it on 26 November 197^t the final objective .of which was to provide a permanent source of information on the situation of social security in agriculture (for self-employed persons and workers) both as regards the legislative provisions and regulations and from the statistical and financial point of view (expenditure and receipts).

These guidelines can be implemented immediately after their adoption . by the Council. It should be noted that they have been agreed to, at a technical level, by the expert^ of all the Member States.

34. These guidelines are, however, merely one stage in the process of extending the study and improving its internal comparability - alrea-

- : dy markedly improved compared with earlier work in this field.

In this respect, it should be mentioned that during the meeting the experts expressed the wish to see the following achieved at a later .... stage..    .

- An improvement in the concept of comparable agricultural income

by using the integrated system of economic accounts for a better link between social and economic matters.    . ;

- An extension of the study by a micro-economic comparison, based . on the Community*s farm accountancy information system. In this

way, it would be possible to compare the incomes of similarly constituted families in each Member State farming certain types of holdings, talcing into account both social security contribu-' tions and benefits, particularly family benefits and old-age in-

surance

- A comparison of family 'benefits and of old-age benefits provided in the various Member States, in order to take more account of demographic trends in agriculture.

- Extension of the study to include social assistance measures and their financing.

- Development, in addition to the statistical tables on "farmworkers” (mentioned in para. 29), of a "Table IV” showing the proportion of social security in the income of workers. This income could possibly be obtained from "Table IV - Farmers” relating to comparable farm incomes.

The Commission recognises the interest of these suggestions but, before taking a position on them, considers that they recpiire closer examination. .

N IT E

LAYOUT OF THE RETORT ON_SOCIAL_SECURITY_IN AGRICULTURE

The report falls into two parts:    '

1. Social security for farmworkers    -    ■    '

II. Social security for farmers.    .    ‘

l

In each section, sickness, maternity, old-age and survivors, invalidity, family benefits,.industrial accidents and occupational diseases, and unemployment are described under the following headings: ,    .

1- Legal bases

2. Risks covered

3. Schemes (general or special)

4. Organization (institutions, control)

5. Benefits

- Type of benefits:

. benefits in kind    ,

• cash benefits

- Reimbursement    .

- Amount of benefits

- Beneficiaries

- Conditions governing the award of benefits

6* Financing

«• Contributions

- Sources of finance outside agriculture.