G/AG/N/CHE/68  
26 September 2014  
(14-5428)  Page: 1/14  
Committee on Agriculture  Original: French  
 
  NOTIFICATION 
The following submission, dated 4 September 2014,  is being circulated at the request of the 
delegation of Switzerland . The notification concerns new or modified domestic support measures 
exempt from reduction (Table DS:2) . 
 G/AG/N/CHE/68 
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  Table DS:2 
DOMESTIC SUPPORT: SWITZERLAND-LIECHTENSTEIN 
Notification under Article 18.3 of the Agreement: New or Modified Domestic Support Measures 
Exempt from Reduction  
______________________________________________________________________________ 
 (1) Full title of measure: Resource efficiency  payments 
Resource efficiency payments fall into three categories: 
 payments for emission-reducing spreading techniques; 
 payments for soil-preserving cultivation techniques; 
 payments for the use of precise application techniques. 
(2) Domestic legislation reference: 
Articles 77 to 82 of the Ordinance on Direct Pa yments in Agriculture (Ordinance on Direct 
Payments (OPD); RS: 910.13) of 23 October 2013, which is based on the Law on Agriculture 
(LAgr; RS: 910.1 (1 January 2014)).
 
(3) Detailed description of measure with re ference to criteria, i.e. those in: 
Resource efficiency payments encourage the sustainable use of the resources required for 
agricultural production, such as soil, air and water, and the efficient use of production inputs 
such as nitrogen, phosphorus, phytosanitary products and energy. This new instrument is vital in helping to ensure the widespread introduction of new techniques aimed at preserving resources. 
a. Payments for emission-reducing spread ing techniques (Articles 77 and 78 of 
the OPD) 
New spreading techniques are available to help reduce harmful emissions (such as 
ammonia). The materials required for emission-reducing techniques are more costly than 
traditional materials, so support must be provided. 
b. Payments for soil-preserving cultivation techniques (Articles 79 to 81 of 
the OPD) 
This measure seeks to ensure long-term soil fertility. Payments are made with a view to 
reducing soil compaction and protecting against erosion. 
c. Payments for the use of precise applicat ion techniques (Artic le 82 of the OPD) 
Precise application ensures that phytosanitary products are sprayed in a very targeted 
manner and reduces the chance of them drifting outside the area being treated. 
Resource efficiency payments meet the general criteria set forth in paragraph 1 
of Annex 2 of the Agreement on Agriculture: they are provided through a publicly funded 
government programme that does not involve transfers from consumers, and do not have the effect of providing price support to producers. 
The payments also meet the specific criteria set forth in paragraph 12 of Annex 2 
(Payments under environmental programmes). G/AG/N/CHE/68 
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  (4) Cost of measure: 
Financial needs are estimated at 48 million francs for 2014 and 74 million francs for 2017. 
(5) Date of entry into force: 01.01.14.  
(6) Application period: 2014-2017.  
(7) Products to principally benefit (if any individual product(s)): 
The support is not aimed at products, but at the efficient use of natural resources. 
The payments are not directly linked to products. 
Note: The Principality of Liechtenstein determines its agricultural policy independently; 
however, the measure described above is, for the most part, directly, or with minor differences, also implemented by Liechtenstein. Liechtenstein does not have measures such as those defined in Articles 77, 78, 81 and 82 of the Ordinance on Direct Payments in 
Agriculture (Ordinance on Direct Payments (OPD); RS: 910.13) of 23 October 2013. G/AG/N/CHE/68 
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  Table DS:2 
DOMESTIC SUPPORT: SWITZERLAND-LIECHTENSTEIN 
Notification under Article 18.3 of the Agreement: New or Modified Domestic Support Measures 
Exempt from Reduction 
______________________________________________________________________________ 
 (1) Full title of measure: Transition  payments 
(2) Domestic legislation reference: 
Articles 84 to 96 of the Ordinance on Direct Pa yments in Agriculture (Ordinance on Direct 
Payments (OPD); RS: 910.13) of 23 October 2013, which is based on the Law on Agriculture (LAgr; RS: 910.1 (1 January 2014)).
 
(3) Detailed description of measure with re ference to criteria, i.e. those in: 
Transition payments meet the general criteria set forth in paragraph 1 of Annex 2 of the 
Agreement on Agriculture: they are provid ed through a publicly funded government 
programme that does not involve transfers from  consumers, and do not have the effect of 
providing price support to producers. 
The payments also meet the criteria established in paragraph 6 of Annex 2. 
The introduction of transition payments guarantees the social acceptability of changes to the 
system at farm level and sectoral level. Transition payments are decoupled from production factors and help to improve land mobility and increase transfer efficiency. The granting of 
transition payments will be farm-linked an d therefore decoupled from production and 
production factors such as surface area and number of animals. In the event of a farm 
handover, transition payments are also transferred. 
The base value is set once for each farm on a fixed historical basis. It corresponds to the 
difference between general direct payments before the change of system and farmland and 
supply security payments, excluding summer pasturing payments. The years 2011 to 2013 
are used as a reference for calculating dire ct payments before the change of system. 
(4) Cost of measure: 
A sum of 419 million francs is envisaged for transition payments in 2014. However, since 
benefit-related direct payments will need to  increase by around 200 million francs by 2017 
due to increased participation in programmes, transition payment funding will fall to a 
maximum of 217 million francs by the end of the period. 
(5) Date of entry into force: 01.01.14.  
(6) Application period: 2014-2017.  
(7) Products to principally benefit (if any individual product(s)): 
Transition payments seek to ensure the social acceptability of changes to the system and do 
not support products. The payments are not directly linked to products. 
Note: The Principality of Liechtenstein determines its agricultural policy independently; 
Liechtenstein does not apply the measure described above. G/AG/N/CHE/68 
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  Table DS:2 
DOMESTIC SUPPORT: SWITZERLAND-LIECHTENSTEIN 
Notification under Article 18.3 of the Agreement: New or Modified Domestic Support Measures 
Exempt from Reduction 
______________________________________________________________________________ 
 (1) Full title of measure: Production system payments  
Production system payments fall into four categories: 
 organic farming payments; 
 payments for the extensive farming of cereals, sunflowers, high-protein peas, field beans 
and colza; 
 payments for pasture-based milk and meat production per hectare of pastureland; 
 animal welfare payments. 
(2) Domestic legislation reference: 
Articles 65 to 76 of the Ordinance on Direct Pa yments in Agriculture (Ordinance on Direct 
Payments (OPD); RS: 910.13) of 23 October 2013, which is based on the Law on Agriculture (LAgr; RS: 910.1 (1 January 2014)). 
(3) Detailed description of measure with re ference to criteria, i.e. those in: 
Production system payments encourage types of farming that show particular respect for the 
environment and animals. In many cases, privat e labels exist in the framework of specific 
programmes promoted by the Confederation. Labelling increases the incentive effect on 
producers, as it makes it possible to obtain added value and generates additional direct 
payments. All payments in the production syst em payments group meet the general criteria 
set forth in paragraph 1 of Annex 2 of the Ag reement on Agriculture: they are provided 
through a publicly funded government programme that does not involve transfers from 
consumers, and do not have the effect of providing price support to producers. 
Furthermore, the individual payments meet the specific criteria set forth in paragraph 12 of 
Annex 2 (Payments under environmental programmes). 
a. Organic farming payment (Articles 66 and 67 of the OPD) 
Studies show that organic farming makes an above-average contribution to natural 
resource conservation. Farming that meets organic farming requirements not only 
improves the fertility of the soil and its capacity to retain water, but also favours the 
formation of humus and, as a result, soil carbon sequestration. Organic farming payments are paid per hectare and scaled according to the following types of usage: 
special crops, open land set aside for crops other than special crops, and other eligible 
types of land. 
b. Payments for the extensive farming of ce reals, sunflowers, high-protein peas, 
field beans and colza (Articles 68 and 69 of the OPD) 
Payments for the extensive farming of cereals, sunflowers, high-protein peas, field beans 
and colza encourage crop production without the use of growth regulators, fungicides, insecticides and synthetic chemical natural defence stimulators. Stopping the use of 
phytosanitary products reduces agriculture's negative impact on the environment (water, 
air and soil), which ensures ecological added value. G/AG/N/CHE/68 
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  c. Payments for pasture-based milk and meat production per hectare of 
pastureland (Articles 70 and 71) 
These payments benefit farmers who cover the fodder requirements of their farms 
mainly with grass, hay (including second crops) and silage. Milk production involving a 
low amount of concentrated feed and a high use of pasture obtains, for most ecological 
indicators, better results per kilo of milk than  stalling, which involves the use of a large 
amount of concentrated feed. This measure encourages the use of grass-based ruminant 
feed well-suited to the surroundings. 
d. Animal welfare payments (Articles 72 to 76) 
Animal welfare payments remain unchanged. As their name implies, these payments 
encourage animal welfare beyond the provisions found in the law on animal protection. 
They adhere to the same concept as enviro nmental payments. The level of participation 
varies according to animal category. 
The Confederation makes animal welfare paym ents to farmers who keep all the animals 
in the production animal categories that they have notified, in compliance with the 
requirements of one or both of the following ethological programmes: 
a. housing systems that ensure a particularly high standard of animal care (SST); 
b. regular periods spent in the open air (SRPA). 
Payments are made exclusively for categories of animals kept on farms in accordance 
with requirements that are applicable throughout the entire payment year. 
(4) Cost of measure: 
Financial needs are expected to increase from 389 million francs in 2014 to 417 million 
francs in 2017. 
(5) Date of entry into force: 01.01.14.  
(6) Application period: 2014-2017. 
(7) Products to principally benefit (if any individual product(s)): 
The support is not aimed at products, but at production systems. There is no direct link 
between payments and production units. 
Note: The Principality of Liechtenstein determines its agricultural policy independently; 
however, part of the measure described above is directly, or with minor differences, also 
applied by Liechtenstein. Liechtenstein does not have measures such as "payments for 
pasture-based milk and meat production per hectare of pastureland". G/AG/N/CHE/68 
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  Table DS:2 
DOMESTIC SUPPORT: SWITZERLAND-LIECHTENSTEIN 
Notification under Article 18.3 of the Agreement: New or Modified Domestic Support Measures 
Exempt from Reduction 
______________________________________________________________________________ 
 (1) Full title of measure: Payments for farming in difficult conditions 
(2) Domestic legislation reference: 
Article 52 of the Ordinance on Direct Payments in Agriculture (Ordinance on Direct Payments 
(OPD); RS: 910.13) of 23 October 2013, which is based on the Law on Agriculture (LAgr; RS: 910.1 (1 January 2014)).
 
(3) Detailed description of measure with re ference to criteria, i.e. those in: 
Payments for farming in difficult conditions meet the general criteria set forth in paragraph 1 
of Annex 2 of the Agreement on Agriculture: they are provided through a publicly funded 
government programme that does not involve transfers from consumers, and do not have 
the effect of providing price support to producers. 
They also meet the criteria set forth in pa ragraph 13 of Annex 2 (Payments under regional 
assistance programmes): most of the land in mountainous and hilly areas (defined in 
Articles 1 and 2 of the Ordinance on Agricultural Areas of December 1998 (RS: 912.1)) can only be used for pasture, which considerably reduces farming options. Adequate consideration should therefore continue to be given to the difficulties involved in farming at 
altitude. The payment amount will take into account the difficulties of farming at altitude 
(i.e. lower yield capacity) in relation to farming in lowland areas, in conditions adapted to the location. 
(4) Cost of measure: 
A total of 158 million francs per year is envisaged for these payments. 
(5) Date of entry into force: 01.01.14.  
(6) Application period: 2014-2017.  
(7) Products to principally benefit (if any individual product(s)): 
The support is not aimed at products, but at farming in difficult conditions. The payments 
are not directly linked to products. 
Note: The Principality of Liechtenstein determines its agricultural policy independently; 
however, the measure described above is, with minor differences, also applied by 
Liechtenstein.  G/AG/N/CHE/68 
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  Table DS:2 
DOMESTIC SUPPORT: SWITZERLAND-LIECHTENSTEIN 
Notification under Article 18.3 of the Agreement: New or Modified Domestic Support Measures 
Exempt from Reduction 
______________________________________________________________________________ 
 (1) Full title of measure: Biodiversity payments  
Biodiversity payments fall into two categories: 
 biodiversity quality payments; 
 networking payments. 
(2) Domestic legislation reference: 
Articles 55 to 62 and Annex 4 of the Ordinance on Direct Payments in Agriculture (Ordinance 
on Direct Payments (OPD); RS: 910.13) of 23 October 2013, which is based on the Law on Agriculture (LAgr; RS: 910.1 (1 January 2014)).
 
(3) Detailed description of measure with re ference to criteria, i.e. those in: 
Biodiversity payments are made with a view to preserving and promoting animal and plant 
biodiversity. 
The measures meet the general criteria set forth in paragraph 1 of Annex 2 of the 
Agreement on Agriculture: they are provid ed through a publicly funded government 
programme that does not involve transfers from  consumers, and do not have the effect of 
providing price support to producers. 
The payments also meet the criteria set forth in paragraph 12 of Annex 2 (Payments under 
environmental programmes). 
a. Biodiversity quality payments (Articles 56 to 60 of the OPD) 
Biodiversity quality payments are made per hectare or per tree with a view to 
maintaining and promoting the natural biodiversity of areas of land in accordance with Article 55 of the OPD: extensively used meadows; low intensity meadows; extensively 
used pasture; forest pastures; litter meadows; hedgerows; riverside areas; wildflower 
strips; rotational fallows; conservation headlands; field margins in crop rotation areas; high-stem trees and orchards; indigenous trees and avenues adapted to the location; vineyards with natural biodiversity; grasslands and litter meadows rich in species in 
summer pasturing areas; and biodiversity promotion areas specific to the region. 
b. Networking payments (Articles 61 to 62 of the OPD) 
The Confederation supports cantonal projects aimed at promoting networking and the 
appropriate farming of biodiversity promotio n areas. Networking project measures are 
based on needs in terms of target and characteristic species. According to Annex 1 of the environmental objectives for agriculture (OFEV/OFAG 2008), agriculture is responsible 
for around 1,700 target and characteristic species. 
(4) Cost of measure: 
A total of around 300-350 million francs per year is envisaged for biodiversity payments. 
(5) Date of entry into force: 01.01.14.  
(6) Application period: 2014-2017.  G/AG/N/CHE/68 
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  (7) Products to principally benefit (if any individual product(s)): 
The support is not aimed at products, but at th e preservation and promotion of biodiversity. 
The payments are not directly linked to products. 
Comment: The Principality of Liechtenstein determines its agricultural policy independently; 
however, a large part of the measure described above is directly, or with minor differences, 
also applied by Liechtenstein. Liechtenstein does not have measures such as those defined in Articles 59 to 62 of the Ordinance on Direct Payments in Agriculture (Ordinance on Direct 
Payments (OPD); RS: 910.13) of 23 October 2013.  G/AG/N/CHE/68 
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  Table DS:2 
DOMESTIC SUPPORT: SWITZERLAND-LIECHTENSTEIN 
Notification under Article 18.3 of the Agreement: New or Modified Domestic Support Measures 
Exempt from Reduction 
______________________________________________________________________________ 
 (1) Full title of measure: Landscape quality payments 
(2) Domestic legislation reference: 
Articles 63 and 64 of the Ordinance on Direct Pa yments in Agriculture (Ordinance on Direct 
Payments (OPD); RS: 910.13) of 23 October 2013, which is based on the Law on Agriculture (LAgr; RS: 910.1 (1 January 2014)). 
(3) Detailed description of measure with re ference to criteria, i.e. those in: 
Landscape quality payments seek to promote the targeted maintenance of traditional 
cultivated landscapes, the restoration of unattractive cultivated landscapes, the protection of 
the environment in rural areas, and landscape-related agricultural activities that aim to meet 
the population's new expectations in relation to the rural environment, particularly in peri-urban areas (leisure, recreation). 
In this light, the Confederation supports region al projects to preserve, promote and develop 
diversified cultivated landscapes, with a view to preventing the loss of landscape diversity and keeping the environment intact. 
Regional projects must meet the following minimal requirements: 
a. objectives must be based on existing regional  concepts or be developed in the region in 
collaboration with interested parties; 
b. measures must be based on regional objectives; 
c. payments are set per measure, in accordance with the cost and value of the measure. 
Full encouragement can therefore be given to la ndscape-friendly agricultural activities based 
on concepts that exist or that are developed in a region. Landscape quality payments make 
it possible to create significant added value for the regions. 
These payments meet the general criteria set forth in paragraph 1 of Annex 2 of the 
Agreement on Agriculture: they are provid ed through a publicly funded government 
programme that does not involve transfers from  consumers, and do not have the effect of 
providing price support to producers. 
The payments also meet the specific criteria set forth in paragraph 12 of Annex 2 (Payments 
under environmental programmes). 
(4) Cost of measure: 
Landscape quality payments are a new instrument and therefore do not yet require 
substantial resources in the period between th e inception phase and the completion of pilot 
projects. 
Financial needs are expected to increase from 35 million francs in 2014 to 110 million francs 
in 2017. 
(5) Date of entry into force: 01.01.14.  G/AG/N/CHE/68 
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  (6) Application period: 2014-2017.  
(7) Products to principally benefit (if any individual product(s)): 
The support is not aimed at products, but at the preservation of diversified cultivated 
landscapes. The payments are not directly linked to products. 
Comment: The Principality of Liechtenstein determines its agricultural policy independently; 
the measure described above is not applied by Liechtenstein. G/AG/N/CHE/68 
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  Table DS:2 
DOMESTIC SUPPORT: SWITZERLAND-LIECHTENSTEIN 
Notification under Article 18.3 of the Agreement: New or Modified Domestic Support Measures 
Exempt from Reduction 
______________________________________________________________________________ 
 Full title of measure: Farmland payments 
There are six types of farmland payment: 
 open landscape maintenance payments; 
 payments for farming on sloping land; 
 payments for farming on steep slopes; 
 payments for wine cultivation on steep slopes; 
 mountain pasturing payments; 
 summer pasturing payments. 
These measures stem from a full revision of the Ordinance on Direct Payments in Agriculture 
for the period 2014-2017 (apart from the payment for wine cultivation on steep slopes, which existed under the previous system). 
(1) Domestic legislation reference: 
Articles 42 to 49 of the Ordinance on Direct Pa yments in Agriculture (Ordinance on Direct 
Payments (OPD); RS: 910.13) of 23 October 2013, which is based on the Law on Agriculture (LAgr; RS: 910.1 (1 January 2014)).
 
(2) Detailed description of measure with re ference to criteria, i.e. those in: 
Farmland payments encourage the maintaining of an open rural landscape. They seek to 
ensure the use of the greatest possible amount of agricultural and alpine land so as to 
prevent farmable land from being reclaimed by forest, particularly in regions and areas with 
difficult climatic or topographical conditions . However, the 2014-2017 agricultural policy 
provides for a number of instruments that offset the loss of agricultural land due to the 
growth of residential areas. 
The effects favouring the accrual of benefits are considerably reduced, farm rents tend to 
decrease and land mobility is improved. The fact that farmland payments are made in a more differentiated way depending on the difficulty of farming, will help to reduce the 
expansion of forest. 
All the measures meet the general criteria set forth in paragraph 1 of Annex 2 of the 
Agreement on Agriculture: the payments are provided through a publicly funded 
government programme that does not involve transfers from consumers, and do not have 
the effect of providing price support to producers. 
Depending on their objective, they meet the specific criteria set forth in paragraphs 12 or 13 
of Annex 2: 
a. Open landscape maintenance payments a ccording to area (Article 42 of the 
OPD) 
This measure meets the criteria set forth in paragraph 13 of Annex 2 (Payments under 
regional assistance programmes): the payment, which varies according to the area 
concerned, offsets the disadvantages associ ated with farming. These disadvantages 
include not only adverse weather conditions, but most notably the brevity of the growing G/AG/N/CHE/68 
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  season and other criteria that are taken into account in the delimitation of areas, such as 
access to and the configuration of the land. 
b. Payments for farming on sloping land (Article 43 of the OPD) 
This measure also meets the criteria set forth in paragraph 13 of Annex 2 (Payments 
under regional assistance programmes): the payments differ for land on an 18-35% 
slope and that on a slope exceeding 35%. Since the latter can only be farmed manually, a much higher payment must be paid due to the more difficult nature of the work. The 
farming difficulties involved are, in fact, comparable to those in mountainous and hilly 
areas and therefore justify the payment of an equivalent sum. 
c. Payments for farming on steep slopes (Article 44 of the OPD) 
This measure also meets the criteria set forth in paragraph 13 of Annex 2 (Payments 
under regional assistance programmes): the payments are allocated per hectare for land 
on slopes exceeding 35%, on farms where such land constitutes over 30% of the agricultural surface. 
d. Payments for wine cultivation on st eep slopes (Article 45 of the OPD) 
The nature of wine production requires a sp ecific grade of slope. These payments are 
for: 
a. sloping vineyards with a gradient of 30 to 50%; 
b. sloping vineyards with a gradient exceeding 50%; 
c. terraced vineyards with a natural gradient exceeding 30%. 
This measure also meets the criteria set forth in paragraph 13 of Annex 2 (Payments 
under regional assistance programmes): the payments offset terrain-related 
wine-production difficulties, which are comparable to farming difficulties in mountainous and hilly areas. 
e. Mountain pasturing payments (Article 46 of the OPD) 
Mountain pasturing payments meet the criteria set forth in paragraph 12 of Annex 2 
(Payments under environmental programmes). They constitute a targeted instrument 
that, for year-round farms, encourages the summer pasturing of animals. The payment 
is made per grazing unit ( pâquier normal , PN) for the summer pasturing of animals 
consuming coarse fodder, excluding deer an d bison. One PN corresponds to the summer 
pasturing of one livestock unit for 100 days. 
f. Summer pasturing payments (Article 47 of the OPD) 
These payments meet the criteria set forth in paragraph 12 of Annex 2 (Payments under 
environmental programmes). They substantially encourage the exploitation and 
maintenance of summer pasturing areas and will be maintained without any fundamental 
changes. Where sheep are summer pastured in a revolving pasturage system, a payment of an amount equivalent to that paid for the permanent surveillance system 
must be made. 
(3) Cost of measure: 
A total of approximately 500 million francs per year is envisaged for farmland payments. 
(4) Date of entry into force: 01.01.14. 
(5) Application period: 2014-2017. 
(6) Products to principally benefit (if any individual product(s)): G/AG/N/CHE/68 
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  The support is not aimed at products, but at ma intaining an open landscape and the regional 
agricultural practices applied there. The payments are not directly linked to products. 
Comment: The Principality of Liechtenstein determines its agricultural policy independently; 
however, a part of the measure described above is directly, or with minor differences, also 
applied by Liechtenstein. Liechtenstein does not have measures such as those defined within 
the framework of "open landscape maintenance payments" and "payments for wine cultivation on steep slopes". 
 
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