TITLE II

Agriculture

Article 38

1. The common market shall extend to agriculture and trade in agricultural products. Agricultural products' means the products of the soil, of stockfarming and of  fisheries and products of first stage processing directly related to these products.

2. Save as otherwise provided in Articles 39 to 46, the rules laid down for the  establishment of the common market shall apply to agricultural products.

3. The products subject to the provisions of Articles 39 to 46 are listed in Annex II  to this Treaty. Within two years of the entry into force of this Treaty, however, the  Council shall, acting by a qualified majority on a proposal from the Commission,  decide what products are to be added to this list.

4. The operation and development of the common market for agricultural products  must be accompanied by the establishment of a common agricultural policy among  the Member States.

Article 39

1. The objectives of the common agricultural policy shall be:  
a. to increase agricultural productivity by promoting technical progress and by  ensuring the rational development of agricultural production and the optimum  utilization of the factors of production, in particular labour;
b.thus to ensure a fair standard of living for the agricultural community, in  particular by increasing the individual earnings of persons engaged in  agriculture;
c. to stabilize markets;
d. to assure the availability of supplies;
e. to ensure that supplies reach consumers at reasonable prices.

2.  In working out the common agricultural policy and the special methods for its  application, account shall be taken of:
a. the particular nature of agricultural activity, which results from the social  structure of agriculture and from structural and natural disparities between the  various agricultural regions;
b. the need to effect the appropriate adjustments by degrees;
c. the fact that in the Member States agriculture constitutes a sector closely linked  with the economy as a whole.

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