EC SOURCES DETAIL NEW FARM SOCIAL PACKAGE The 350 mln Ecu three-year package of social and structural measures agreed early today by European Community farm ministers features a plan to compensate farmers for reducing output of certain surplus products, EC Commission sources said. The ministers agreed that under this "extensification" scheme, farmers would qualify for compensation if they cut output of specific products by at least 20 pct. The plan would initially apply to cereals, beef, veal and wine, they added. Cereals farmers would have to achieve their output cuts by reducing acreage, while cattle farmers would reduce their number of head and vinegrowers would cut yield. In each case, farmers would have to undertake not to step up their capacity for output of other products which are in surplus in the EC. The sources said payment levels have not yet been fixed but will be designed to compensate farmers for loss of profit on the production they forego. The sources said the package also contains provisions for payments to farmers who embark on a program aimed at protecting or improving the environment. It would also mean compensatory allowances in less favoured farming areas would be extended to crops. At present such allowances are available only for livestock. The package would provide 20 mln Ecus for research into alternative farming techniques, the sources added. At a news conference EC Farm Commissioner Frans Andriessen said the Commission is also working on proposals to enable the EC and member states to provide direct income supports for relatively poor farmers. Andriessen did not give full details, but said member state aid would be subject to "strict criteria to avoid distortion of competition." EC payments would aim to help farmers to survive a difficult period while the EC tackles the problems of surplus production. The Commission withdrew from the package agreed last night proposals to pay "early retirement" pensions to farmers aged 55 or over who gave up production. Those who took their land completely out of farm production, rather than passing it on to their heirs, would have received more generous payments. Andriessen said the Commission plans to present revised proposals along these lines in an effort to get a scheme agreed.