26. 6. 87 Official Journal of the European Communities No L 167/1 (Acts whose publication is obligatory) COUNCIL REGULATION (EEC) No 1760/87 of 15 June 1987 amending Regulations (EEC) No 797/85, (EEC) No 270/79, (EEC) No 1360/78 and (EEC) No 355/77 as regards agricultural structures, the adjustment of agriculture to the new market situation and the preservation of the countryside THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular Articles 42 and 43 thereof, Having regard to the proposal from the Commission (!), Having regard to the opinion of the European Parli- ~ament (%), Having regard to the opinion of the Economic and Social Committee (3), Whereas the situation of the agricultural markets has changed, and will change further, as a result of the reori- entation of the common agricultural policy caused by the need to secure a gradual drop in output in those sectors where there is a surplus; Whereas, in this context, the policy on structures must be used to help farmers adapt to this new situation and to cushion the effects that the new markets and prices policy is likely to have on agricultural incomes in particular; Whereas, so that the objectives of the policy on structures can be realized, certain common measures covered by Article 6 of Council Regulation (EEC) No 729/70 of 21 April 1970 on the financing of the common agricultural policy (*), as last amended by Regulation (EEC) No 3769/8S5 (%), introduced in order to achieve the objectives of Article 39 of the EEC Treaty, should be adjusted; Whereas, in particular, the common measure introduced by Council Regulation (EEC) No 797/85 of 12 March 1985 on improving the efficiency of agricultural structu- res(¥), as last amended by Regulation (EEC) No 2224/86 ("), should be adjusted and amplified ; Whereas an aid scheme, designed to encourage farmers to embark upon conversion and extensification of produc- () OJ No C 273, 29. 10. 1986, p () O] No C 227, 8. 9. 1986, p. 1 () OJ No C 328, 22. 12. 1986, p. () OJ No L 94, 28. 4. 1970, p. 13 1 3. 10. 37. () OJ No L 362, 31. 12. 1985, p. 17. () OJ No L 93, 30. 3. 1985, p () OJ No L 194, 17. 7. 1986, p. 4. tion, may contribute towards adjusting the various produc- tion sectors to market requirements, in particular those in which there is a surplus; Whereas, during an initial period, application of the extensification scheme may be restricted to the cereals, beef and veal and wine sectors; Whereas provision should be made for compensation on the basis of the actual reduction in production, allowing for the maintenance of the incomes of farmers who have undertaken to reduce production ; Whereas the compensatory allowance for permanent - natural handicaps in the areas covered by Council Direc- tive 75/268/EEC (%), as last amended by Regulation (EEC) No 797/85, is indispensable both to help maintain farmers’ incomes, and thus the maintenance of agricul- tural holdings in these areas, and, at the same time, to facilitate the adaptation and reorganization of such holdings ; Whereas amplification and strengthening of this measure would further increase its effects and allow more account to be taken of the relative severity of permanent natural handicaps and the importance of the services provided by farmers ; Whereas it should be left to the Member States to set the amounts of this allowance not only according to the severity of the permanent natural handicaps in question but also with due regard to the economic situation and the incomes of the holdings; Whereas the Community’s financial contribution to the compensatory allowance must be limited to the income objectives of this Regulation ; Whereas farmers in areas that are sensitive from the point of view of protection of the environment or preservation of the landscape are in a position to perform a valuable service to society as a whole and whereas the introduction () OJ No L 128, 19. 5. 1975, p. 1.