# Official Journal L 435/2021

| | ISSN 1977-0677 |
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| Official Journal
  of the European Union | L 435 |
| | |
| English edition | Legislation | Volume 646 December 2021 |

ISSN 1977-0677

Official Journal

of the European Union

L 435

English edition

Legislation

Volume 646 December 2021

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| Contents | | I   Legislative acts | page |
| --- | --- | --- | --- |
| | | REGULATIONS |
| | * | Regulation (EU) 2021/2115 of the European Parliament and of the Council of 2 December 2021 establishing rules on support for strategic plans to be drawn up by Member States under the common agricultural policy (CAP Strategic Plans) and financed by the European Agricultural Guarantee Fund (EAGF) and by the European Agricultural Fund for Rural Development (EAFRD) and repealing Regulations (EU) No 1305/2013 and (EU) No 1307/2013 | 1 |
| | * | Regulation (EU) 2021/2116 of the European Parliament and of the Council of 2 December 2021 on the financing, management and monitoring of the common agricultural policy and repealing Regulation (EU) No 1306/2013 | 187 |
| | * | Regulation (EU) 2021/2117 of the European Parliament and of the Council of 2 December 2021 amending Regulations (EU) No 1308/2013 establishing a common organisation of the markets in agricultural products, (EU) No 1151/2012 on quality schemes for agricultural products and foodstuffs, (EU) No 251/2014 on the definition, description, presentation, labelling and the protection of geographical indications of aromatised wine products and (EU) No 228/2013 laying down specific measures for agriculture in the outermost regions of the Union | 262 |

Contents

I   Legislative acts

page

REGULATIONS

*

Regulation (EU) 2021/2115 of the European Parliament and of the Council of 2 December 2021 establishing rules on support for strategic plans to be drawn up by Member States under the common agricultural policy (CAP Strategic Plans) and financed by the European Agricultural Guarantee Fund (EAGF) and by the European Agricultural Fund for Rural Development (EAFRD) and repealing Regulations (EU) No 1305/2013 and (EU) No 1307/2013

1

*

Regulation (EU) 2021/2116 of the European Parliament and of the Council of 2 December 2021 on the financing, management and monitoring of the common agricultural policy and repealing Regulation (EU) No 1306/2013

187

*

Regulation (EU) 2021/2117 of the European Parliament and of the Council of 2 December 2021 amending Regulations (EU) No 1308/2013 establishing a common organisation of the markets in agricultural products, (EU) No 1151/2012 on quality schemes for agricultural products and foodstuffs, (EU) No 251/2014 on the definition, description, presentation, labelling and the protection of geographical indications of aromatised wine products and (EU) No 228/2013 laying down specific measures for agriculture in the outermost regions of the Union

262

| EN | Acts whose titles are printed in light type are those relating to day-to-day management of agricultural matters, and are generally valid for a limited period.
  The titles of all other Acts are printed in bold type and preceded by an asterisk. |
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EN

Acts whose titles are printed in light type are those relating to day-to-day management of agricultural matters, and are generally valid for a limited period.

The titles of all other Acts are printed in bold type and preceded by an asterisk.

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I Legislative acts

REGULATIONS

| 6.12.2021 | EN | Official Journal of the European Union | L 435/1 |
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6.12.2021

EN

Official Journal of the European Union

L 435/1

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REGULATION (EU) 2021/2115 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of 2 December 2021

establishing rules on support for strategic plans to be drawn up by Member States under the common agricultural policy (CAP Strategic Plans) and financed by the European Agricultural Guarantee Fund (EAGF) and by the European Agricultural Fund for Rural Development (EAFRD) and repealing Regulations (EU) No 1305/2013 and (EU) No 1307/2013

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 42 and Article 43(2) thereof,

Having regard to the 1979 Act of Accession, and in particular paragraph 6 of Protocol No 4 on cotton attached thereto,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the Court of Auditors (1),

Having regard to the opinion of the European Economic and Social Committee (2),

Having regard to the opinion of the Committee of the Regions (3),

Acting in accordance with the ordinary legislative procedure (4),

Whereas:

| (1) | The Commission communication of 29 November 2017 entitled ‘The Future of Food and Farming’ sets out the challenges, objectives and orientations for the future common agricultural policy (CAP) after 2020. Those objectives include making the CAP more result-driven and market-oriented, boosting modernisation and sustainability, including the economic, social, environmental and climate sustainability of the agricultural, forestry and rural areas, and helping reduce the Union legislation-related administrative burden for beneficiaries. |
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(1)

The Commission communication of 29 November 2017 entitled ‘The Future of Food and Farming’ sets out the challenges, objectives and orientations for the future common agricultural policy (CAP) after 2020. Those objectives include making the CAP more result-driven and market-oriented, boosting modernisation and sustainability, including the economic, social, environmental and climate sustainability of the agricultural, forestry and rural areas, and helping reduce the Union legislation-related administrative burden for beneficiaries.

| (2) | In order to address the global dimension and implications of the CAP, the Commission should ensure coherence with the Union external policies and instruments, in particular in development cooperation and trade. The Union’s commitment to policy coherence for development requires the taking into account of development objectives and principles when designing policies. |
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(2)

In order to address the global dimension and implications of the CAP, the Commission should ensure coherence with the Union external policies and instruments, in particular in development cooperation and trade. The Union’s commitment to policy coherence for development requires the taking into account of development objectives and principles when designing policies.

| (3) | Since the CAP needs to sharpen its responses to the challenges and opportunities as they manifest themselves at international, Union, national, regional, local and farm levels, it is necessary to streamline the governance of the CAP and improve its delivery on the Union objectives and to significantly decrease the administrative burden. The CAP should be based on delivery of performance (‘the delivery model’). Therefore, the Union should set the basic policy parameters, such as the objectives of the CAP and its basic requirements, while Member States should bear greater responsibility as to how they meet those objectives and achieve targets. Enhanced subsidiarity makes it possible to better take into account local conditions and needs and 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, tailoring the support to maximise the contribution to the achievement of Union objectives. |
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(3)

Since the CAP needs to sharpen its responses to the challenges and opportunities as they manifest themselves at international, Union, national, regional, local and farm levels, it is necessary to streamline the governance of the CAP and improve its delivery on the Union objectives and to significantly decrease the administrative burden. The CAP should be based on delivery of performance (‘the delivery model’). Therefore, the Union should set the basic policy parameters, such as the objectives of the CAP and its basic requirements, while Member States should bear greater responsibility as to how they meet those objectives and achieve targets. Enhanced subsidiarity makes it possible to better take into account local conditions and needs and 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, tailoring the support to maximise the contribution to the achievement of Union objectives.

| (4) | Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 of the Treaty on the Functioning of the European Union (TFEU) apply to this Regulation. Those rules are laid down in Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (5) (the ‘Financial Regulation’) and determine in particular the procedure for establishing and implementing the budget through grants, procurement, prizes and indirect implementation, and provide for checks on the responsibility of financial actors. Rules adopted on the basis of Article 322 TFEU also include a general regime of conditionality for the protection of the Union budget. |
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(4)

Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 of the Treaty on the Functioning of the European Union (TFEU) apply to this Regulation. Those rules are laid down in Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (5) (the ‘Financial Regulation’) and determine in particular the procedure for establishing and implementing the budget through grants, procurement, prizes and indirect implementation, and provide for checks on the responsibility of financial actors. Rules adopted on the basis of Article 322 TFEU also include a general regime of conditionality for the protection of the Union budget.

| (5) | Rules on measures linking the effectiveness of Union funds to sound economic governance, on territorial development and on the visibility of support from Union funds laid down in Regulation (EU) 2021/1060 of the European Parliament and of the Council (6) should also apply to support for rural development under this Regulation to ensure coherence with the Union funds concerned in relation to those aspects. |
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(5)

Rules on measures linking the effectiveness of Union funds to sound economic governance, on territorial development and on the visibility of support from Union funds laid down in Regulation (EU) 2021/1060 of the European Parliament and of the Council (6) should also apply to support for rural development under this Regulation to ensure coherence with the Union funds concerned in relation to those aspects.

| (6) | Synergies between the EAFRD and Horizon Europe, established by Regulation (EU) 2021/695 of the European Parliament and of the Council (7), should encourage the EAFRD to make the best use of research and innovation results, in particular those stemming from projects funded by Horizon Europe and the European Innovation Partnership for agricultural productivity and sustainability (EIP), leading to innovations in the farming sector and rural areas. |
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(6)

Synergies between the EAFRD and Horizon Europe, established by Regulation (EU) 2021/695 of the European Parliament and of the Council (7), should encourage the EAFRD to make the best use of research and innovation results, in particular those stemming from projects funded by Horizon Europe and the European Innovation Partnership for agricultural productivity and sustainability (EIP), leading to innovations in the farming sector and rural areas.

| (7) | Given the importance of tackling the dramatic loss of biodiversity, support under this Regulation should contribute to mainstreaming biodiversity action in Union policies and to the achievement of the overall ambition of providing 7,5 % of annual spending under the multiannual financial framework (MFF) to biodiversity objectives in 2024 and 10 % of annual spending under the MFF to biodiversity objectives in 2026 and 2027. |
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(7)

Given the importance of tackling the dramatic loss of biodiversity, support under this Regulation should contribute to mainstreaming biodiversity action in Union policies and to the achievement of the overall ambition of providing 7,5 % of annual spending under the multiannual financial framework (MFF) to biodiversity objectives in 2024 and 10 % of annual spending under the MFF to biodiversity objectives in 2026 and 2027.

| (8) | Member States should be given the flexibility to specify certain definitions and conditions in their CAP Strategic Plans. In order to ensure a common level playing field, a certain framework has, however, to be set at Union level constituting the necessary common elements to be included in those definitions and conditions (‘framework definitions’). |
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(8)

Member States should be given the flexibility to specify certain definitions and conditions in their CAP Strategic Plans. In order to ensure a common level playing field, a certain framework has, however, to be set at Union level constituting the necessary common elements to be included in those definitions and conditions (‘framework definitions’).

| (9) | In order to enhance the role of agriculture in providing public goods, it is necessary to establish an appropriate framework definition of ‘agricultural activity’. Moreover, in order to ensure that the Union can comply with its international obligations on domestic support as set out in the WTO Agreement on Agriculture, and in particular that the basic income support for sustainability and related types of intervention continue to be notified as ‘Green Box’ support which has no, or at most minimal, trade-distorting effects or effects on production, the framework definition of ‘agricultural activity’ should provide for both the production of agricultural products and the maintenance of the agricultural area, leaving the choice between those two types of activity to farmers. In order to adjust to local conditions, Member States should lay down the actual definition of ‘agricultural activity’ and the relevant conditions in their CAP Strategic Plans. |
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(9)

In order to enhance the role of agriculture in providing public goods, it is necessary to establish an appropriate framework definition of ‘agricultural activity’. Moreover, in order to ensure that the Union can comply with its international obligations on domestic support as set out in the WTO Agreement on Agriculture, and in particular that the basic income support for sustainability and related types of intervention continue to be notified as ‘Green Box’ support which has no, or at most minimal, trade-distorting effects or effects on production, the framework definition of ‘agricultural activity’ should provide for both the production of agricultural products and the maintenance of the agricultural area, leaving the choice between those two types of activity to farmers. In order to adjust to local conditions, Member States should lay down the actual definition of ‘agricultural activity’ and the relevant conditions in their CAP Strategic Plans.

| (10) | In order to retain essential Union-wide elements to ensure comparability between Member State decisions, without however limiting Member States in reaching Union objectives, a framework definition of ‘agricultural area’ should be set out. The related framework definitions of ‘arable land’, ‘permanent crops’ and ‘permanent grassland’ should be set out in a broad way so as to allow Member States to further specify definitions according to their local conditions. |
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(10)

In order to retain essential Union-wide elements to ensure comparability between Member State decisions, without however limiting Member States in reaching Union objectives, a framework definition of ‘agricultural area’ should be set out. The related framework definitions of ‘arable land’, ‘permanent crops’ and ‘permanent grassland’ should be set out in a broad way so as to allow Member States to further specify definitions according to their local conditions.

| (11) | The framework definition of ‘arable land’ should be laid down in such a way that it allows Member States to cover different production forms and that requires the inclusion of fallow land areas in order to ensure the decoupled nature of the interventions. |
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(11)

The framework definition of ‘arable land’ should be laid down in such a way that it allows Member States to cover different production forms and that requires the inclusion of fallow land areas in order to ensure the decoupled nature of the interventions.

| (12) | The framework definition of ‘permanent crops’ should include both areas actually used for production and those that are not, as well as nurseries and short rotation coppice to be defined by Member States. |
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(12)

The framework definition of ‘permanent crops’ should include both areas actually used for production and those that are not, as well as nurseries and short rotation coppice to be defined by Member States.

| (13) | The framework definition of ‘permanent grassland’ should be set in such a way that, in cases where grasses and other herbaceous forage remain predominant, it does not exclude other species that can be grazed. It should also enable Member States to specify further criteria and allow them to include species other than grasses or other herbaceous forage that may produce animal feed, whether used for actual production or not. This could encompass species of which parts of the plant, such as leaves, flowers, stems or fruits, can be grazed directly or when they fall to the ground. Member States should also be able to decide whether to limit the land where grasses and other herbaceous forage are not predominant or absent in grazing areas, including limiting it to land which forms part of established local practices. |
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(13)

The framework definition of ‘permanent grassland’ should be set in such a way that, in cases where grasses and other herbaceous forage remain predominant, it does not exclude other species that can be grazed. It should also enable Member States to specify further criteria and allow them to include species other than grasses or other herbaceous forage that may produce animal feed, whether used for actual production or not. This could encompass species of which parts of the plant, such as leaves, flowers, stems or fruits, can be grazed directly or when they fall to the ground. Member States should also be able to decide whether to limit the land where grasses and other herbaceous forage are not predominant or absent in grazing areas, including limiting it to land which forms part of established local practices.

| (14) | The framework definitions of ‘agricultural area’ should ensure that Member States cover agroforestry systems, where trees are grown in agricultural parcels on which agricultural activities are carried out to improve the sustainable use of the land. |
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(14)

The framework definitions of ‘agricultural area’ should ensure that Member States cover agroforestry systems, where trees are grown in agricultural parcels on which agricultural activities are carried out to improve the sustainable use of the land.

| (15) | In order to ensure legal certainty that support is paid for an agricultural area which is at the farmer’s disposal and where an agricultural activity is exercised, a framework definition of ‘eligible hectare’ with the essential elements should be set out. In particular, Member States should set the conditions to determine whether the land is at the farmer’s disposal. Considering the likelihood of occasional and temporary use of agricultural land for an activity which is not strictly agricultural, and given the potential of certain non-agricultural activities to contribute to the income diversification of agricultural holdings, Member States should set appropriate conditions to include areas also used for non-agricultural activities as eligible hectares. |
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(15)

In order to ensure legal certainty that support is paid for an agricultural area which is at the farmer’s disposal and where an agricultural activity is exercised, a framework definition of ‘eligible hectare’ with the essential elements should be set out. In particular, Member States should set the conditions to determine whether the land is at the farmer’s disposal. Considering the likelihood of occasional and temporary use of agricultural land for an activity which is not strictly agricultural, and given the potential of certain non-agricultural activities to contribute to the income diversification of agricultural holdings, Member States should set appropriate conditions to include areas also used for non-agricultural activities as eligible hectares.

| (16) | In view of the high environmental ambition of the CAP, the eligible area should not be reduced as a result of the implementation of certain rules of conditionality and of the schemes for the climate, the environment and animal welfare (‘eco-schemes’) under direct payments. Agricultural areas should not become ineligible for direct payments when cultivated with non-agricultural products by way of paludiculture under either Union or national schemes which contribute to achieving one or more environmental or climate-related objectives of the Union. Furthermore, agricultural areas should remain eligible for direct payments when subject to certain Union requirements relating to the environmental protection, or afforested under rural development measures, including those afforested under the compliant national schemes, or areas under certain set-aside commitments. |
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(16)

In view of the high environmental ambition of the CAP, the eligible area should not be reduced as a result of the implementation of certain rules of conditionality and of the schemes for the climate, the environment and animal welfare (‘eco-schemes’) under direct payments. Agricultural areas should not become ineligible for direct payments when cultivated with non-agricultural products by way of paludiculture under either Union or national schemes which contribute to achieving one or more environmental or climate-related objectives of the Union. Furthermore, agricultural areas should remain eligible for direct payments when subject to certain Union requirements relating to the environmental protection, or afforested under rural development measures, including those afforested under the compliant national schemes, or areas under certain set-aside commitments.

| (17) | Taking into account the need for simplification, Member States should be allowed to decide that landscape features that do not significantly hamper the performance of the agricultural activity on a parcel remain part of the eligible area. When calculating the eligible area of permanent grassland while deducting the areas occupied by ineligible features, Member States should be allowed to apply simplified methodology. |
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(17)

Taking into account the need for simplification, Member States should be allowed to decide that landscape features that do not significantly hamper the performance of the agricultural activity on a parcel remain part of the eligible area. When calculating the eligible area of permanent grassland while deducting the areas occupied by ineligible features, Member States should be allowed to apply simplified methodology.

| (18) | As regards the areas used for the production of hemp, in order to preserve public health and to ensure coherence with other bodies of legislation, the use of hemp seed varieties with tetrahydrocannabinol content below 0,3 % should be included within the definition of ‘eligible hectare’. |
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(18)

As regards the areas used for the production of hemp, in order to preserve public health and to ensure coherence with other bodies of legislation, the use of hemp seed varieties with tetrahydrocannabinol content below 0,3 % should be included within the definition of ‘eligible hectare’.

| (19) | With a view to further improving the performance of the CAP, income support should be targeted towards active farmers. To ensure a common approach at Union level, a framework definition of ‘active farmer’ displaying the essential elements should be set out. Member States should determine in their CAP Strategic Plans, on the basis of objective conditions, which farmers are considered to be active farmers. To reduce the administrative burden, Member States should be allowed to grant direct payments to smaller farmers who also contribute to the vitality of rural areas and to establish a negative list of non-agricultural activities compared to which the agricultural activities are typically marginal. The negative list should not be the only way in which the definition is determined but should be used as a complementary tool to help to identify such non-agricultural activities, without prejudice for the persons concerned to prove that they fulfil the criteria of the definition of ‘active farmer’. To ensure a better income, strengthen the socio-economic fabric of rural areas or pursue related objectives, the definition of ‘active farmer’ should not preclude the granting of support to pluri-active or part-time farmers who in addition to farming are also engaged in non-agricultural activities. |
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(19)

With a view to further improving the performance of the CAP, income support should be targeted towards active farmers. To ensure a common approach at Union level, a framework definition of ‘active farmer’ displaying the essential elements should be set out. Member States should determine in their CAP Strategic Plans, on the basis of objective conditions, which farmers are considered to be active farmers. To reduce the administrative burden, Member States should be allowed to grant direct payments to smaller farmers who also contribute to the vitality of rural areas and to establish a negative list of non-agricultural activities compared to which the agricultural activities are typically marginal. The negative list should not be the only way in which the definition is determined but should be used as a complementary tool to help to identify such non-agricultural activities, without prejudice for the persons concerned to prove that they fulfil the criteria of the definition of ‘active farmer’. To ensure a better income, strengthen the socio-economic fabric of rural areas or pursue related objectives, the definition of ‘active farmer’ should not preclude the granting of support to pluri-active or part-time farmers who in addition to farming are also engaged in non-agricultural activities.

| (20) | In order to ensure consistency between the direct-payment types of intervention and the rural-development types of intervention when addressing the objective of generational renewal, a framework definition of ‘young farmer’ with the essential elements should be set out at Union level. |
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(20)

In order to ensure consistency between the direct-payment types of intervention and the rural-development types of intervention when addressing the objective of generational renewal, a framework definition of ‘young farmer’ with the essential elements should be set out at Union level.

| (21) | In order to ensure consistency between the direct-payment types of intervention and the rural-development types of intervention when addressing the objective of facilitating business development in rural areas, a framework definition of ‘new farmer’ with common elements should be set out at Union level. |
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(21)

In order to ensure consistency between the direct-payment types of intervention and the rural-development types of intervention when addressing the objective of facilitating business development in rural areas, a framework definition of ‘new farmer’ with common elements should be set out at Union level.

| (22) | In order to give substance to the objectives of the CAP as established by Article 39 TFEU, as well as to ensure that the Union adequately addresses its most recent challenges, it is appropriate to provide for a set of general objectives reflecting the orientations given in the communication on ‘The Future of Food and Farming’. A set of specific objectives should be further defined at Union level and applied by the Member States in their CAP Strategic Plans, taking into account the fact that in the Member States agriculture constitutes a sector closely linked with the economy as a whole. While striking a balance across the dimensions of sustainable development, in line with the impact assessment, those specific objectives should translate the general objectives of the CAP into more concrete priorities and take into account relevant Union legislation, particularly with regard to climate, energy and environment. |
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(22)

In order to give substance to the objectives of the CAP as established by Article 39 TFEU, as well as to ensure that the Union adequately addresses its most recent challenges, it is appropriate to provide for a set of general objectives reflecting the orientations given in the communication on ‘The Future of Food and Farming’. A set of specific objectives should be further defined at Union level and applied by the Member States in their CAP Strategic Plans, taking into account the fact that in the Member States agriculture constitutes a sector closely linked with the economy as a whole. While striking a balance across the dimensions of sustainable development, in line with the impact assessment, those specific objectives should translate the general objectives of the CAP into more concrete priorities and take into account relevant Union legislation, particularly with regard to climate, energy and environment.

| (23) | A smarter, modernised and more sustainable CAP needs to embrace research and innovation in order to serve the multi-functionality of Union agriculture, forestry and food systems, investing in technological development and digitalisation, as well as improving the uptake and effective deployment of technologies, digital technologies in particular, and the access to, and increased sharing of, impartial, sound, relevant and new knowledge. |
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(23)

A smarter, modernised and more sustainable CAP needs to embrace research and innovation in order to serve the multi-functionality of Union agriculture, forestry and food systems, investing in technological development and digitalisation, as well as improving the uptake and effective deployment of technologies, digital technologies in particular, and the access to, and increased sharing of, impartial, sound, relevant and new knowledge.

| (24) | The Union needs to foster a modern, competitive, resilient and diversified agricultural sector which reaps the benefits of high-quality production and resource-efficiency and which ensures long-term food security as part of a competitive and productive agri-food sector while safeguarding the family farm model. |
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(24)

The Union needs to foster a modern, competitive, resilient and diversified agricultural sector which reaps the benefits of high-quality production and resource-efficiency and which ensures long-term food security as part of a competitive and productive agri-food sector while safeguarding the family farm model.

| (25) | In order to support viable farm income and resilience of the agricultural sector across the Union to enhance long-term food security, there is a need to improve the farmers’ position in the value chain, in particular by encouraging forms of cooperation that involve and benefit farmers, as well as by promoting short supply chains and improving market transparency. |
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(25)

In order to support viable farm income and resilience of the agricultural sector across the Union to enhance long-term food security, there is a need to improve the farmers’ position in the value chain, in particular by encouraging forms of cooperation that involve and benefit farmers, as well as by promoting short supply chains and improving market transparency.

| (26) | The Union needs to improve the response to societal demands on food and health, including high-quality, safe, and nutritious food produced in a sustainable way. In order to advance in that direction, specific sustainable farming practices, such as organic farming, integrated pest management, agro-ecology, agroforestry or precision farming, will need to be promoted. Similarly, actions to promote higher levels of animal welfare and initiatives to combat antimicrobial resistance should also be stimulated. |
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(26)

The Union needs to improve the response to societal demands on food and health, including high-quality, safe, and nutritious food produced in a sustainable way. In order to advance in that direction, specific sustainable farming practices, such as organic farming, integrated pest management, agro-ecology, agroforestry or precision farming, will need to be promoted. Similarly, actions to promote higher levels of animal welfare and initiatives to combat antimicrobial resistance should also be stimulated.

| (27) | The delivery model should not lead to a situation in which there are 27 different national agricultural policies, thus endangering the common nature of the CAP and the internal market. It should, however, leave to Member States a certain degree of flexibility within a strong common regulatory framework. This Regulation should therefore set the Union objectives and establish the types of intervention as well as the common Union requirements applicable to Member States, thus ensuring the common nature of the CAP. Member States should be in charge of translating that Union regulatory framework into support arrangements applicable to beneficiaries using an increased level of flexibility. In that context, Member States should act in line with the Charter of Fundamental Rights of the European Union and the general principles of Union law and ensure that the legal framework for the granting of Union support to beneficiaries is based on their CAP Strategic Plans and complies with the principles and requirements set out under this Regulation and Regulation (EU) 2021/2116 of the European Parliament and of the Council (8). They should also implement their CAP Strategic Plans as approved by the Commission. |
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(27)

The delivery model should not lead to a situation in which there are 27 different national agricultural policies, thus endangering the common nature of the CAP and the internal market. It should, however, leave to Member States a certain degree of flexibility within a strong common regulatory framework. This Regulation should therefore set the Union objectives and establish the types of intervention as well as the common Union requirements applicable to Member States, thus ensuring the common nature of the CAP. Member States should be in charge of translating that Union regulatory framework into support arrangements applicable to beneficiaries using an increased level of flexibility. In that context, Member States should act in line with the Charter of Fundamental Rights of the European Union and the general principles of Union law and ensure that the legal framework for the granting of Union support to beneficiaries is based on their CAP Strategic Plans and complies with the principles and requirements set out under this Regulation and Regulation (EU) 2021/2116 of the European Parliament and of the Council (8). They should also implement their CAP Strategic Plans as approved by the Commission.

| (28) | In order to foster a smart and resilient agricultural sector, direct payments keep on constituting an essential part to guarantee a fair income support to farmers. Likewise, investments into farm restructuring, modernisation, innovation, diversification and uptake of new practices and technologies are necessary to improve farmers’ market reward. |
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(28)

In order to foster a smart and resilient agricultural sector, direct payments keep on constituting an essential part to guarantee a fair income support to farmers. Likewise, investments into farm restructuring, modernisation, innovation, diversification and uptake of new practices and technologies are necessary to improve farmers’ market reward.

| (29) | In the context of greater market orientation of the CAP, as outlined by the communication on ‘The Future of Food and Farming’, market exposure, climate change and associated frequency and severity of extreme weather events, as well as sanitary and phytosanitary crises, may lead to risks of price volatility and increasing pressures on incomes, in particular of primary producers. Thus, although farmers are ultimately responsible for designing their on-farm strategies and for improving the resilience of their farms, a robust framework should be set up to ensure appropriate risk management. |
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(29)

In the context of greater market orientation of the CAP, as outlined by the communication on ‘The Future of Food and Farming’, market exposure, climate change and associated frequency and severity of extreme weather events, as well as sanitary and phytosanitary crises, may lead to risks of price volatility and increasing pressures on incomes, in particular of primary producers. Thus, although farmers are ultimately responsible for designing their on-farm strategies and for improving the resilience of their farms, a robust framework should be set up to ensure appropriate risk management.

| (30) | Supporting and improving environmental protection and climate action and contributing to the achievement of Union’s environmental and climate-related objectives is a very high priority in the future of Union agriculture and forestry. The CAP should play a role both in reducing negative impacts on the environment and climate, including biodiversity, and in increasing the provision of environmental public goods on all types of farmland and forest land (including high-nature-value areas) and in rural areas as a whole. The architecture of the CAP should therefore reflect greater ambition with respect to those objectives. It should include elements which support or otherwise induce a wide range of action in pursuit of the objectives within agriculture, food production, forestry and rural areas as a whole. |
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(30)

Supporting and improving environmental protection and climate action and contributing to the achievement of Union’s environmental and climate-related objectives is a very high priority in the future of Union agriculture and forestry. The CAP should play a role both in reducing negative impacts on the environment and climate, including biodiversity, and in increasing the provision of environmental public goods on all types of farmland and forest land (including high-nature-value areas) and in rural areas as a whole. The architecture of the CAP should therefore reflect greater ambition with respect to those objectives. It should include elements which support or otherwise induce a wide range of action in pursuit of the objectives within agriculture, food production, forestry and rural areas as a whole.

| (31) | The best combination of types of action for addressing those objectives will vary from one Member State to another. Concurrently with the need to increase efforts on adaptation to climate change, reductions in greenhouse gas emissions and enhanced carbon sequestration are both important in mitigating climate change. Energy production and use supported through the CAP should concern energy which clearly displays the characteristics of sustainability, including as regards greenhouse gases. With regard to the management of natural resources, a lower dependence on chemicals such as artificial fertilisers and pesticides may be particularly helpful including for the protection of biodiversity, where lower dependence on pesticides and action to halt and reverse the decline of pollinator populations is needed in a timely manner in many parts of the Union. |
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(31)

The best combination of types of action for addressing those objectives will vary from one Member State to another. Concurrently with the need to increase efforts on adaptation to climate change, reductions in greenhouse gas emissions and enhanced carbon sequestration are both important in mitigating climate change. Energy production and use supported through the CAP should concern energy which clearly displays the characteristics of sustainability, including as regards greenhouse gases. With regard to the management of natural resources, a lower dependence on chemicals such as artificial fertilisers and pesticides may be particularly helpful including for the protection of biodiversity, where lower dependence on pesticides and action to halt and reverse the decline of pollinator populations is needed in a timely manner in many parts of the Union.

| (32) | As many rural areas in the Union suffer from structural problems such as a lack of attractive employment opportunities, skill shortages, underinvestment in broadband and connectivity, digital and other infrastructures and essential services, as well as youth drain, it is fundamental to strengthen the socio-economic fabric in those areas, in line with the Cork 2.0 Declaration ‘A Better Life in Rural Areas’, in particular through job creation and generational renewal, by bringing the Commission’s jobs and growth agenda to rural areas, by promoting social inclusion, support for young people, generational renewal and the development of ‘smart villages’ across the European countryside, and by contributing to mitigating depopulation. |
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(32)

As many rural areas in the Union suffer from structural problems such as a lack of attractive employment opportunities, skill shortages, underinvestment in broadband and connectivity, digital and other infrastructures and essential services, as well as youth drain, it is fundamental to strengthen the socio-economic fabric in those areas, in line with the Cork 2.0 Declaration ‘A Better Life in Rural Areas’, in particular through job creation and generational renewal, by bringing the Commission’s jobs and growth agenda to rural areas, by promoting social inclusion, support for young people, generational renewal and the development of ‘smart villages’ across the European countryside, and by contributing to mitigating depopulation.

| (33) | Equality between women and men is a core principle of the Union and gender mainstreaming is an important tool in the integration of that principle into to the CAP. There should therefore be a particular focus on promoting the participation of women in the socio-economic development of rural areas, with special attention to farming, supporting women’s key role. Member States should be required to assess the situation of women in farming and address challenges in their CAP Strategic Plans. Gender equality should be an integral part of the preparation, implementation and evaluation of CAP interventions. Member States should also strengthen their capacity in gender mainstreaming and in the collection of data disaggregated by gender. |
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(33)

Equality between women and men is a core principle of the Union and gender mainstreaming is an important tool in the integration of that principle into to the CAP. There should therefore be a particular focus on promoting the participation of women in the socio-economic development of rural areas, with special attention to farming, supporting women’s key role. Member States should be required to assess the situation of women in farming and address challenges in their CAP Strategic Plans. Gender equality should be an integral part of the preparation, implementation and evaluation of CAP interventions. Member States should also strengthen their capacity in gender mainstreaming and in the collection of data disaggregated by gender.

| (34) | With a view to stabilising and diversifying the rural economy, the development, establishment and retention of non-agricultural enterprises should be supported. As indicated in the communication on ‘The Future of Food and Farming’, new rural value chains such as renewable energy, the emerging bio-economy, the circular economy, and ecotourism can offer good growth and job potential for rural areas while conserving natural resources. In this context, financial instruments and the use of the EU guarantee under InvestEU, established by Regulation (EU) 2021/523 of the European Parliament and of the Council (9), can play a crucial role for ensuring access to financing and for bolstering the growth capacity of farms and enterprises. There is a potential for employment opportunities in rural areas for legally staying third-country nationals, promoting their social and economic integration especially in the framework of community-led local development strategies. |
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(34)

With a view to stabilising and diversifying the rural economy, the development, establishment and retention of non-agricultural enterprises should be supported. As indicated in the communication on ‘The Future of Food and Farming’, new rural value chains such as renewable energy, the emerging bio-economy, the circular economy, and ecotourism can offer good growth and job potential for rural areas while conserving natural resources. In this context, financial instruments and the use of the EU guarantee under InvestEU, established by Regulation (EU) 2021/523 of the European Parliament and of the Council (9), can play a crucial role for ensuring access to financing and for bolstering the growth capacity of farms and enterprises. There is a potential for employment opportunities in rural areas for legally staying third-country nationals, promoting their social and economic integration especially in the framework of community-led local development strategies.

| (35) | The CAP should keep ensuring food security, which should be understood as meaning access to sufficient, safe and nutritious food at all times. Moreover, it should help to improve the response of Union agriculture to new societal demands on food and health, including sustainable agricultural production, healthier nutrition, animal welfare and reduction of food waste. The CAP should continue to promote production with specific and valuable characteristics while helping farmers to proactively adjust their production according to market signals and consumers’ demands. |
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(35)

The CAP should keep ensuring food security, which should be understood as meaning access to sufficient, safe and nutritious food at all times. Moreover, it should help to improve the response of Union agriculture to new societal demands on food and health, including sustainable agricultural production, healthier nutrition, animal welfare and reduction of food waste. The CAP should continue to promote production with specific and valuable characteristics while helping farmers to proactively adjust their production according to market signals and consumers’ demands.

| (36) | In view of the scope of the reform that is necessary to achieve the objectives pursued and respond to concerns raised, it is appropriate to provide for a new legal framework in one single Regulation that covers the Union support financed by the European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural Development (EAFRD) and that replaces the arrangements currently laid down in Regulation (EU) No 1305/2013 of the European Parliament and of the Council (10) and Regulation (EU) No 1307/2013 of the European Parliament and of the Council (11). |
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(36)

In view of the scope of the reform that is necessary to achieve the objectives pursued and respond to concerns raised, it is appropriate to provide for a new legal framework in one single Regulation that covers the Union support financed by the European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural Development (EAFRD) and that replaces the arrangements currently laid down in Regulation (EU) No 1305/2013 of the European Parliament and of the Council (10) and Regulation (EU) No 1307/2013 of the European Parliament and of the Council (11).

| (37) | This Regulation should lay down the rules that apply to Union support financed by the EAGF and the EAFRD and granted in the form of types of intervention specified in CAP Strategic Plans drawn up by the Member States and approved by the Commission. |
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(37)

This Regulation should lay down the rules that apply to Union support financed by the EAGF and the EAFRD and granted in the form of types of intervention specified in CAP Strategic Plans drawn up by the Member States and approved by the Commission.

| (38) | In order to ensure that the Union can respect its international obligations on domestic support as set out in the WTO Agreement on Agriculture, certain types of intervention provided for in this Regulation should continue to be notified as ‘Green Box’ support which has no, or at most minimal, trade-distorting effects or effects on production, or to be notified as ‘Blue Box’ support under production-limiting programmes and therefore exempted from reduction commitments. While the provisions of this Regulation for such types of intervention are already in compliance with the ‘Green Box’ requirements set out in Annex 2 to the WTO Agreement on Agriculture or the ‘Blue Box’ requirements set out in its Article 6.5, it should be ensured that the interventions planned by Member States in their CAP Strategic Plans for those types of intervention continue to comply with those requirements. In particular, the crop-specific payment for cotton under this Regulation should continue to be designed to comply with the provisions of the ‘Blue Box’. |
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(38)

In order to ensure that the Union can respect its international obligations on domestic support as set out in the WTO Agreement on Agriculture, certain types of intervention provided for in this Regulation should continue to be notified as ‘Green Box’ support which has no, or at most minimal, trade-distorting effects or effects on production, or to be notified as ‘Blue Box’ support under production-limiting programmes and therefore exempted from reduction commitments. While the provisions of this Regulation for such types of intervention are already in compliance with the ‘Green Box’ requirements set out in Annex 2 to the WTO Agreement on Agriculture or the ‘Blue Box’ requirements set out in its Article 6.5, it should be ensured that the interventions planned by Member States in their CAP Strategic Plans for those types of intervention continue to comply with those requirements. In particular, the crop-specific payment for cotton under this Regulation should continue to be designed to comply with the provisions of the ‘Blue Box’.

| (39) | It should be ensured that interventions, including coupled income support, comply with the Union’s international commitments. This includes the requirements of the Memorandum of Understanding between the European Economic Community and the United States of America on oil seeds under GATT (12), as applicable subsequent to changes to the Union separate base area for oilseeds following changes to the composition of the Union. |
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(39)

It should be ensured that interventions, including coupled income support, comply with the Union’s international commitments. This includes the requirements of the Memorandum of Understanding between the European Economic Community and the United States of America on oil seeds under GATT (12), as applicable subsequent to changes to the Union separate base area for oilseeds following changes to the composition of the Union.

| (40) | The information on, and assessment of, the performance of the CAP based on the implementation of the CAP Strategic Plans will be taken into account in the regular assessments by the Commission of the Policy Coherence for Sustainable Development, established on the basis of the 2030 Agenda for Sustainable Development. |
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(40)

The information on, and assessment of, the performance of the CAP based on the implementation of the CAP Strategic Plans will be taken into account in the regular assessments by the Commission of the Policy Coherence for Sustainable Development, established on the basis of the 2030 Agenda for Sustainable Development.

| (41) | Building on the previous system of cross-compliance implemented until 2022, the system of new conditionality links full receipt of CAP support to the compliance of farmers and other beneficiaries with basic standards concerning the environment, climate change, public health, plant health and animal welfare. The basic standards encompass in a streamlined form a list of statutory management requirements (SMRs) and standards of good agricultural and environmental conditions of land (GAEC standards). Those basic standards should better take into account the environmental and climate challenges and the new environmental architecture of the CAP, thus delivering a higher level of environmental and climate ambition as set out in the Commission communication on the ‘Future of Food and Farming’ and the MFF for the years 2021 to 2027, established by Council Regulation (EU, Euratom) 2020/2093 (13). |
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(41)

Building on the previous system of cross-compliance implemented until 2022, the system of new conditionality links full receipt of CAP support to the compliance of farmers and other beneficiaries with basic standards concerning the environment, climate change, public health, plant health and animal welfare. The basic standards encompass in a streamlined form a list of statutory management requirements (SMRs) and standards of good agricultural and environmental conditions of land (GAEC standards). Those basic standards should better take into account the environmental and climate challenges and the new environmental architecture of the CAP, thus delivering a higher level of environmental and climate ambition as set out in the Commission communication on the ‘Future of Food and Farming’ and the MFF for the years 2021 to 2027, established by Council Regulation (EU, Euratom) 2020/2093 (13).

| (42) | Conditionality aims to contribute to the development of sustainable agriculture through better awareness on the part of beneficiaries of the need to comply with those basic standards. It also aims to make the CAP more compatible with the expectations of society through improving consistency of the CAP with the environment, public health, plant health and animal welfare objectives. Conditionality should form an integral part of the environmental architecture of the CAP, as part of the baseline for more ambitious environmental and climate-related commitments, and should be comprehensively applied across the Union. Member States should ensure that proportionate, effective and dissuasive penalties are applied in accordance with Regulation (EU) 2021/2116 to farmers and other beneficiaries who do not comply with those requirements. |
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(42)

Conditionality aims to contribute to the development of sustainable agriculture through better awareness on the part of beneficiaries of the need to comply with those basic standards. It also aims to make the CAP more compatible with the expectations of society through improving consistency of the CAP with the environment, public health, plant health and animal welfare objectives. Conditionality should form an integral part of the environmental architecture of the CAP, as part of the baseline for more ambitious environmental and climate-related commitments, and should be comprehensively applied across the Union. Member States should ensure that proportionate, effective and dissuasive penalties are applied in accordance with Regulation (EU) 2021/2116 to farmers and other beneficiaries who do not comply with those requirements.

| (43) | The framework of GAEC standards aims to contribute to the mitigation of, and adaptation to, climate change, tackling water challenges, the protection and quality of soil and the protection and quality of biodiversity. The framework needs to be enhanced to take into account in particular the practices set until the year 2022 under the greening of direct payments, the mitigation of climate change and the need to improve farms’ sustainability and their contribution to biodiversity. It is acknowledged that each GAEC standard contributes to achieving multiple objectives. In order to implement the framework, Member States should set a national standard for each of the standards set at Union level, taking into account the specific characteristics of the area concerned, including soil and climatic conditions, existing farming conditions, farming practices, farm size and farm structures, land use, and the specificities of outermost regions. Member States should be able to set other national standards related to the main objectives of the GAEC standards in order to improve the environmental and climate delivery of the framework of the GAEC standards. Given the existing practices under organic farming system, no further requirement should be imposed on organic farmers as regards crop rotation. In addition, as regards the standards on crop rotation and on minimum share of arable land for biodiversity, Member States should be able to consider certain exceptions to avoid excessive burden on smaller farms or to exclude some farms that already fulfil the objective of the GAEC standards as they are covered to a significant extent by grassland, land lying fallow or leguminous crops. An exception should also be provided for the biodiversity requirement of minimum share of arable land in the case of predominantly forested Member States. |
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(43)

The framework of GAEC standards aims to contribute to the mitigation of, and adaptation to, climate change, tackling water challenges, the protection and quality of soil and the protection and quality of biodiversity. The framework needs to be enhanced to take into account in particular the practices set until the year 2022 under the greening of direct payments, the mitigation of climate change and the need to improve farms’ sustainability and their contribution to biodiversity. It is acknowledged that each GAEC standard contributes to achieving multiple objectives. In order to implement the framework, Member States should set a national standard for each of the standards set at Union level, taking into account the specific characteristics of the area concerned, including soil and climatic conditions, existing farming conditions, farming practices, farm size and farm structures, land use, and the specificities of outermost regions. Member States should be able to set other national standards related to the main objectives of the GAEC standards in order to improve the environmental and climate delivery of the framework of the GAEC standards. Given the existing practices under organic farming system, no further requirement should be imposed on organic farmers as regards crop rotation. In addition, as regards the standards on crop rotation and on minimum share of arable land for biodiversity, Member States should be able to consider certain exceptions to avoid excessive burden on smaller farms or to exclude some farms that already fulfil the objective of the GAEC standards as they are covered to a significant extent by grassland, land lying fallow or leguminous crops. An exception should also be provided for the biodiversity requirement of minimum share of arable land in the case of predominantly forested Member States.

| (44) | SMRs need to be fully implemented by Member States in order to become operational at farm level and ensure equal treatment of farmers. To ensure the consistency of the rules on conditionality in enhancing the sustainability of the policy, SMRs should encompass the main Union legislation on the environment, public health, plant health and animal welfare, as implemented at national level, which imposes precise obligations on individual farmers and other beneficiaries, including obligations under Council Directive 92/43/EEC (14) and Directive 2009/147/EC of the European Parliament and of the Council (15) or Council Directive 91/676/EEC (16). In order to follow up on the joint statement made by the European Parliament and the Council annexed to Regulation (EU) No 1306/2013 of the European Parliament and of the Council (17), the relevant provisions of Directive 2000/60/EC of the European Parliament and of the Council (18) and Directive 2009/128/EC of the European Parliament and of the Council (19) should be included as SMRs into the scope of conditionality and the list of GAEC standards should be adapted accordingly. |
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(44)

SMRs need to be fully implemented by Member States in order to become operational at farm level and ensure equal treatment of farmers. To ensure the consistency of the rules on conditionality in enhancing the sustainability of the policy, SMRs should encompass the main Union legislation on the environment, public health, plant health and animal welfare, as implemented at national level, which imposes precise obligations on individual farmers and other beneficiaries, including obligations under Council Directive 92/43/EEC (14) and Directive 2009/147/EC of the European Parliament and of the Council (15) or Council Directive 91/676/EEC (16). In order to follow up on the joint statement made by the European Parliament and the Council annexed to Regulation (EU) No 1306/2013 of the European Parliament and of the Council (17), the relevant provisions of Directive 2000/60/EC of the European Parliament and of the Council (18) and Directive 2009/128/EC of the European Parliament and of the Council (19) should be included as SMRs into the scope of conditionality and the list of GAEC standards should be adapted accordingly.

| (45) | In order to contribute to the development of socially sustainable agriculture through better awareness, on the part of beneficiaries of CAP support, of the employment and social standards, a new mechanism integrating social concerns should be introduced. |
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(45)

In order to contribute to the development of socially sustainable agriculture through better awareness, on the part of beneficiaries of CAP support, of the employment and social standards, a new mechanism integrating social concerns should be introduced.

| (46) | Such a mechanism should link full receipt of CAP direct payments as well as payments for environmental, climate-related and other management commitments, payments for natural or other area-specific constraints and payments for area-specific disadvantages resulting from certain mandatory requirements to the compliance of farmers and other beneficiaries with basic standards concerning working and employment conditions for farm workers and occupational safety and health, in particular certain standards under Council Directive 89/391/EEC (20) and Directives 2009/104/EC (21) and (EU) 2019/1152 (22) of the European Parliament and of the Council. By 2025, the Commission should assess the feasibility of including Article 7(1) of Regulation (EU) 492/2011 of the European Parliament and of the Council (23) and should, if appropriate, propose legislation to that effect. |
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(46)

Such a mechanism should link full receipt of CAP direct payments as well as payments for environmental, climate-related and other management commitments, payments for natural or other area-specific constraints and payments for area-specific disadvantages resulting from certain mandatory requirements to the compliance of farmers and other beneficiaries with basic standards concerning working and employment conditions for farm workers and occupational safety and health, in particular certain standards under Council Directive 89/391/EEC (20) and Directives 2009/104/EC (21) and (EU) 2019/1152 (22) of the European Parliament and of the Council. By 2025, the Commission should assess the feasibility of including Article 7(1) of Regulation (EU) 492/2011 of the European Parliament and of the Council (23) and should, if appropriate, propose legislation to that effect.

| (47) | Member States should ensure that proportionate, effective and dissuasive penalties are applied in accordance with Regulation (EU) 2021/2116 to farmers and other beneficiaries who do not comply with those standards. Due to the principle of judicial independence, it is not possible to impose upon the judicial systems specific requirements on how decisions and convictions are made other than what is provided for in the legislation upon which those decisions and convictions are based. |
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(47)

Member States should ensure that proportionate, effective and dissuasive penalties are applied in accordance with Regulation (EU) 2021/2116 to farmers and other beneficiaries who do not comply with those standards. Due to the principle of judicial independence, it is not possible to impose upon the judicial systems specific requirements on how decisions and convictions are made other than what is provided for in the legislation upon which those decisions and convictions are based.

| (48) | When establishing the social conditionality mechanism, in order to respect the right of Member States to define the fundamental principles of their social and labour systems, due account should be taken of the diverse national frameworks. Therefore, the Member State’s choice of enforcement methods, collective bargaining and the role of social partners, including, where applicable, in the implementation of directives in the social and employment domain, should be considered. National labour market models and the autonomy of the social partners should be respected. This Regulation should not impose any obligations on the social partners or on Member States regarding enforcement or controls in areas which according to the national labour market models are the responsibility of the social partners. |
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(48)

When establishing the social conditionality mechanism, in order to respect the right of Member States to define the fundamental principles of their social and labour systems, due account should be taken of the diverse national frameworks. Therefore, the Member State’s choice of enforcement methods, collective bargaining and the role of social partners, including, where applicable, in the implementation of directives in the social and employment domain, should be considered. National labour market models and the autonomy of the social partners should be respected. This Regulation should not impose any obligations on the social partners or on Member States regarding enforcement or controls in areas which according to the national labour market models are the responsibility of the social partners.

| (49) | Because of the complexity of setting up systems at national level which respect the autonomy and specificity of national systems, Member States should be allowed to implement social conditionality at a later date but in any event no later than as from 1 January 2025. |
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(49)

Because of the complexity of setting up systems at national level which respect the autonomy and specificity of national systems, Member States should be allowed to implement social conditionality at a later date but in any event no later than as from 1 January 2025.

| (50) | Member States should ensure that there are farm advisory services tailored to the various types of production for the purpose of improving the sustainable management and overall performance of agricultural holdings and rural businesses, covering economic, environmental and social dimensions, and of identifying the necessary improvements as regards all measures at farm level provided for in the CAP Strategic Plans, including digitalisation. Farm advisory services should help farmers and other beneficiaries of CAP support to become more aware of the relationship between farm management and land management on the one hand, and certain standards, requirements and information, including environmental and climate ones, on the other hand. The list of the latter includes standards applying to, or necessary for, farmers and other CAP beneficiaries, including cooperatives, and set in the CAP Strategic Plan, as well as those stemming from the legislation on water, on the sustainable use of pesticides, on nutrient management as well as on the initiatives to combat antimicrobial resistance. Advice should also be available on the management of risks and innovation support for preparing and implementing emerging EIP operational group projects, whilst capturing and making use of grassroot innovative ideas. In order to enhance the quality and effectiveness of the advice, Member States should integrate all public and private advisors and advisory networks within the Agricultural Knowledge and Innovation Systems (AKIS), in order to be able to deliver up-to-date technological and scientific information developed by research and innovation. |
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(50)

Member States should ensure that there are farm advisory services tailored to the various types of production for the purpose of improving the sustainable management and overall performance of agricultural holdings and rural businesses, covering economic, environmental and social dimensions, and of identifying the necessary improvements as regards all measures at farm level provided for in the CAP Strategic Plans, including digitalisation. Farm advisory services should help farmers and other beneficiaries of CAP support to become more aware of the relationship between farm management and land management on the one hand, and certain standards, requirements and information, including environmental and climate ones, on the other hand. The list of the latter includes standards applying to, or necessary for, farmers and other CAP beneficiaries, including cooperatives, and set in the CAP Strategic Plan, as well as those stemming from the legislation on water, on the sustainable use of pesticides, on nutrient management as well as on the initiatives to combat antimicrobial resistance. Advice should also be available on the management of risks and innovation support for preparing and implementing emerging EIP operational group projects, whilst capturing and making use of grassroot innovative ideas. In order to enhance the quality and effectiveness of the advice, Member States should integrate all public and private advisors and advisory networks within the Agricultural Knowledge and Innovation Systems (AKIS), in order to be able to deliver up-to-date technological and scientific information developed by research and innovation.

| (51) | In order to support both the agronomic and the environmental performance of farms, information on nutrient management, with focus on nitrogen and phosphate which are the nutrients that from an environmental perspective can pose particular challenges and therefore deserve particular attention, should be provided with the help of a dedicated electronic Farm Sustainability Tool made available by the Member States to individual farmers. The Farm Sustainability Tool should provide on-farm decision support. In order to ensure a level playing field between farmers and across the Union, the Commission should be able to provide support to the Member States in the design of the Farm Sustainability Tool. |
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(51)

In order to support both the agronomic and the environmental performance of farms, information on nutrient management, with focus on nitrogen and phosphate which are the nutrients that from an environmental perspective can pose particular challenges and therefore deserve particular attention, should be provided with the help of a dedicated electronic Farm Sustainability Tool made available by the Member States to individual farmers. The Farm Sustainability Tool should provide on-farm decision support. In order to ensure a level playing field between farmers and across the Union, the Commission should be able to provide support to the Member States in the design of the Farm Sustainability Tool.

| (52) | In order to better inform and advise farmers on their obligations towards their workers with regard to the social dimension of the CAP, the farm advisory services should inform about the requirements regarding the provision, in writing, of the information referred to in Article 4 of Directive (EU) 2019/1152 and on the health and safety standards which are applicable on farms. |
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(52)

In order to better inform and advise farmers on their obligations towards their workers with regard to the social dimension of the CAP, the farm advisory services should inform about the requirements regarding the provision, in writing, of the information referred to in Article 4 of Directive (EU) 2019/1152 and on the health and safety standards which are applicable on farms.

| (53) | In order to ensure a fairer distribution of income support, Member States should be allowed to cap or reduce the amounts of direct payments above a certain ceiling and the product should either be used for decoupled direct payments and in priority for the complementary redistributive income support for sustainability, or be transferred to the EAFRD. In order to avoid negative effects on employment, Member States should be allowed to take into account labour when applying the mechanism. |
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(53)

In order to ensure a fairer distribution of income support, Member States should be allowed to cap or reduce the amounts of direct payments above a certain ceiling and the product should either be used for decoupled direct payments and in priority for the complementary redistributive income support for sustainability, or be transferred to the EAFRD. In order to avoid negative effects on employment, Member States should be allowed to take into account labour when applying the mechanism.

| (54) | To avoid the excessive administrative burden caused by managing numerous payments of small amounts and to ensure an effective contribution of the support to achieving the objectives of the CAP to which the direct payments contribute, Member States should set requirements in terms of minimum area or support-related minimum amount for receiving direct payments in their CAP Strategic Plans. When Member States decide to grant animal-related income support to be paid per animal, they should always set a threshold in terms of minimum amount to avoid penalising farmers who are eligible for this support, but whose area is below the threshold. Due to the very specific farming structure in the smaller Aegean islands, Greece should be able to decide whether any minimum threshold should apply in that area. |
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(54)

To avoid the excessive administrative burden caused by managing numerous payments of small amounts and to ensure an effective contribution of the support to achieving the objectives of the CAP to which the direct payments contribute, Member States should set requirements in terms of minimum area or support-related minimum amount for receiving direct payments in their CAP Strategic Plans. When Member States decide to grant animal-related income support to be paid per animal, they should always set a threshold in terms of minimum amount to avoid penalising farmers who are eligible for this support, but whose area is below the threshold. Due to the very specific farming structure in the smaller Aegean islands, Greece should be able to decide whether any minimum threshold should apply in that area.

| (55) | Considering the importance of farmers’ participation in risk management tools, Member States should be allowed to assign a certain percentage of direct payments to support the farmers’ contributions to such tools. |
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(55)

Considering the importance of farmers’ participation in risk management tools, Member States should be allowed to assign a certain percentage of direct payments to support the farmers’ contributions to such tools.

| (56) | In order to guarantee a minimum level of agricultural income support for all active farmers, as well as to comply with the objective of ensuring a fair standard of living for the agricultural community laid down in Article 39(1), point (b), TFEU, an annual area-based decoupled payment should be established as the type of intervention ‘basic income support for sustainability’. In order to better target that support, it should be possible to differentiate the payment amounts by groups of territories, based on socio-economic or agronomic conditions, or to reduce them taking into account other interventions. With a view to avoiding disruptive effects for farmers’ income, Member States should be allowed to implement the basic income support for sustainability on the basis of payment entitlements. In that case, the value of payment entitlements before any further convergence should be proportional to their value as established under the basic payment schemes pursuant to Regulation (EU) No 1307/2013, taking into account the payments for agricultural practices beneficial for the climate and the environment. Member States should also achieve further convergence in order to continue to move progressively away from historical values. |
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(56)

In order to guarantee a minimum level of agricultural income support for all active farmers, as well as to comply with the objective of ensuring a fair standard of living for the agricultural community laid down in Article 39(1), point (b), TFEU, an annual area-based decoupled payment should be established as the type of intervention ‘basic income support for sustainability’. In order to better target that support, it should be possible to differentiate the payment amounts by groups of territories, based on socio-economic or agronomic conditions, or to reduce them taking into account other interventions. With a view to avoiding disruptive effects for farmers’ income, Member States should be allowed to implement the basic income support for sustainability on the basis of payment entitlements. In that case, the value of payment entitlements before any further convergence should be proportional to their value as established under the basic payment schemes pursuant to Regulation (EU) No 1307/2013, taking into account the payments for agricultural practices beneficial for the climate and the environment. Member States should also achieve further convergence in order to continue to move progressively away from historical values.

| (57) | When providing decoupled direct payments based on the system of payment entitlements, Member States should continue to manage a national reserve or reserves per group of territories. Such reserves should be used, as a matter of priority, for young farmers and new farmers. Rules on the use and transfers of payment entitlements are also necessary in order to guarantee a smooth functioning of the system. |
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(57)

When providing decoupled direct payments based on the system of payment entitlements, Member States should continue to manage a national reserve or reserves per group of territories. Such reserves should be used, as a matter of priority, for young farmers and new farmers. Rules on the use and transfers of payment entitlements are also necessary in order to guarantee a smooth functioning of the system.

| (58) | Small farms remain a cornerstone of Union agriculture as they play a vital role in supporting rural employment and contribute to territorial development. In order to promote a more balanced distribution of support and to reduce administrative burden for beneficiaries of small amounts, Member States should have the option to design a specific intervention for small farmers replacing the other direct payments interventions. In order to ensure better targeting of that support, a differentiation of the payment should be possible. To enable small farmers to choose the system that best suits their needs, participation of farmers in the intervention should be optional. |
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(58)

Small farms remain a cornerstone of Union agriculture as they play a vital role in supporting rural employment and contribute to territorial development. In order to promote a more balanced distribution of support and to reduce administrative burden for beneficiaries of small amounts, Member States should have the option to design a specific intervention for small farmers replacing the other direct payments interventions. In order to ensure better targeting of that support, a differentiation of the payment should be possible. To enable small farmers to choose the system that best suits their needs, participation of farmers in the intervention should be optional.

| (59) | In view of the acknowledged need to promote a more balanced distribution of support to small and medium-sized holdings in a visible and measurable way, Member States should implement complementary redistributive income support for sustainability and dedicate at least 10 % of the direct payments envelope to such support. To allow for a better targeting of this complementary support and in view of the differences in farm structures across the Union, Member States should have the possibility to provide different amounts of complementary support for different ranges of hectares as well as to differentiate the support by regional level or by the same groups of territories as set in their CAP Strategic Plans for the basic income support for sustainability. |
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(59)

In view of the acknowledged need to promote a more balanced distribution of support to small and medium-sized holdings in a visible and measurable way, Member States should implement complementary redistributive income support for sustainability and dedicate at least 10 % of the direct payments envelope to such support. To allow for a better targeting of this complementary support and in view of the differences in farm structures across the Union, Member States should have the possibility to provide different amounts of complementary support for different ranges of hectares as well as to differentiate the support by regional level or by the same groups of territories as set in their CAP Strategic Plans for the basic income support for sustainability.

| (60) | It is within the responsibility of Member States to provide for a targeted distribution of direct payments and to reinforce income support for those who need it most. Various instruments available for Member States can effectively contribute to the achievement of that objective, including capping and degressivity, as well as interventions such as the complementary redistributive income support for sustainability and the payment for small farmers. An overview of Member States’ efforts in that respect should be laid down in their CAP Strategic Plans. Based on the needs in terms of fairer distribution of direct payments, including needs based on specific farm structure, Member States should have the possibility to opt either for the application of a mandatory redistributive payment and the corresponding minimum percentage, or for other appropriate measures, including the redistributive payment at a lower percentage. |
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(60)

It is within the responsibility of Member States to provide for a targeted distribution of direct payments and to reinforce income support for those who need it most. Various instruments available for Member States can effectively contribute to the achievement of that objective, including capping and degressivity, as well as interventions such as the complementary redistributive income support for sustainability and the payment for small farmers. An overview of Member States’ efforts in that respect should be laid down in their CAP Strategic Plans. Based on the needs in terms of fairer distribution of direct payments, including needs based on specific farm structure, Member States should have the possibility to opt either for the application of a mandatory redistributive payment and the corresponding minimum percentage, or for other appropriate measures, including the redistributive payment at a lower percentage.

| (61) | The creation and development of new economic activity in the agricultural sector by young farmers is financially challenging and constitutes an element that should be considered when designing the intervention strategy in the allocation and targeting of direct payments. That development is essential for the competitiveness of the agricultural sector in the Union and, for that reason, Member States should be allowed to establish complementary income support for young farmers. That type of intervention should provide young farmers with additional income support after the initial setting-up. Based on their assessment of needs, Member States should be able to decide on a calculation method for the payment, either per hectare or as a lump sum, and possibly limited to a maximum number of hectares. Since it should only cover the initial period of the life of the business, such payment should only be granted for a maximum duration after the submission of aid application and shortly after the initial setting-up. Where the duration of the payment goes beyond the year 2027, Member States should ensure that no legal expectations of beneficiaries are created for the period after that year. |
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(61)

The creation and development of new economic activity in the agricultural sector by young farmers is financially challenging and constitutes an element that should be considered when designing the intervention strategy in the allocation and targeting of direct payments. That development is essential for the competitiveness of the agricultural sector in the Union and, for that reason, Member States should be allowed to establish complementary income support for young farmers. That type of intervention should provide young farmers with additional income support after the initial setting-up. Based on their assessment of needs, Member States should be able to decide on a calculation method for the payment, either per hectare or as a lump sum, and possibly limited to a maximum number of hectares. Since it should only cover the initial period of the life of the business, such payment should only be granted for a maximum duration after the submission of aid application and shortly after the initial setting-up. Where the duration of the payment goes beyond the year 2027, Member States should ensure that no legal expectations of beneficiaries are created for the period after that year.

| (62) | The CAP should ensure that Member States increase the environmental delivery by respecting local needs and farmers’ actual circumstances. Member States should, under direct payments in the CAP Strategic Plan, set up eco-schemes which are voluntary for farmers, and which should be fully coordinated with the other relevant interventions. They should be determined by the Member States as a payment granted either for incentivising and remunerating the provision of public goods by agricultural practices beneficial to the environment and climate, or as compensation for carrying out those practices. In both cases, they should aim to enhance the environmental and climate-related performance of the CAP and should consequently be conceived to go beyond the mandatory requirements already prescribed by the system of conditionality. |
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(62)

The CAP should ensure that Member States increase the environmental delivery by respecting local needs and farmers’ actual circumstances. Member States should, under direct payments in the CAP Strategic Plan, set up eco-schemes which are voluntary for farmers, and which should be fully coordinated with the other relevant interventions. They should be determined by the Member States as a payment granted either for incentivising and remunerating the provision of public goods by agricultural practices beneficial to the environment and climate, or as compensation for carrying out those practices. In both cases, they should aim to enhance the environmental and climate-related performance of the CAP and should consequently be conceived to go beyond the mandatory requirements already prescribed by the system of conditionality.

| (63) | To ensure efficiency, eco-schemes should as a general rule cover at least two areas of action for the climate, the environment, animal welfare and combatting antimicrobial resistance. For the same purpose, while compensation should be based on costs incurred, income loss and transaction costs stemming from the agricultural practices committed, taking into account the targets set under eco-schemes, the payments additional to basic income support need to reflect the level of ambition of the practices committed. Member States should have the possibility to set up eco-schemes for agricultural practices carried out by farmers on agricultural areas, in particular agricultural activities but also certain practices going beyond agricultural activities. Those practices may include the enhanced management of permanent pastures and landscape features, the rewetting of peatlands, paludiculture, and organic farming. |
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(63)

To ensure efficiency, eco-schemes should as a general rule cover at least two areas of action for the climate, the environment, animal welfare and combatting antimicrobial resistance. For the same purpose, while compensation should be based on costs incurred, income loss and transaction costs stemming from the agricultural practices committed, taking into account the targets set under eco-schemes, the payments additional to basic income support need to reflect the level of ambition of the practices committed. Member States should have the possibility to set up eco-schemes for agricultural practices carried out by farmers on agricultural areas, in particular agricultural activities but also certain practices going beyond agricultural activities. Those practices may include the enhanced management of permanent pastures and landscape features, the rewetting of peatlands, paludiculture, and organic farming.

| (64) | Organic farming, regulated by Regulation (EU) 2018/848 of the European Parliament and of the Council (24), is a farming system that has the potential to substantially contribute to the achievement of multiple specific objectives of the CAP, and in particular to its specific environmental and climate-related objectives. In view of the positive effects of organic farming on the environment and the climate, Member States should in particular be able to consider organic farming when setting up eco-schemes for agricultural practices and assess in that context the level of support needed for agricultural land managed under the organic farming scheme. |
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(64)

Organic farming, regulated by Regulation (EU) 2018/848 of the European Parliament and of the Council (24), is a farming system that has the potential to substantially contribute to the achievement of multiple specific objectives of the CAP, and in particular to its specific environmental and climate-related objectives. In view of the positive effects of organic farming on the environment and the climate, Member States should in particular be able to consider organic farming when setting up eco-schemes for agricultural practices and assess in that context the level of support needed for agricultural land managed under the organic farming scheme.

| (65) | It should be possible for Member States to establish eco-schemes as ‘entry-level schemes’ as a condition for farmers for taking up more ambitious environmental, climate-related and animal welfare commitments under rural development. To ensure simplification, Member States should be able to establish enhanced eco-schemes. Member States should also be able to establish eco-schemes for supporting practices on animal welfare and combatting antimicrobial resistance. |
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(65)

It should be possible for Member States to establish eco-schemes as ‘entry-level schemes’ as a condition for farmers for taking up more ambitious environmental, climate-related and animal welfare commitments under rural development. To ensure simplification, Member States should be able to establish enhanced eco-schemes. Member States should also be able to establish eco-schemes for supporting practices on animal welfare and combatting antimicrobial resistance.

| (66) | In order to ensure a level playing field between farmers, a maximum allocation should be set for the coupled income support under direct payments that Member States are allowed to grant in order to improve competitiveness, sustainability, or quality in certain sectors and productions that are particularly important for social, economic or environmental reasons and encounter certain difficulties. When designing those interventions, Member States should take into account their potential impact on the internal market. |
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(66)

In order to ensure a level playing field between farmers, a maximum allocation should be set for the coupled income support under direct payments that Member States are allowed to grant in order to improve competitiveness, sustainability, or quality in certain sectors and productions that are particularly important for social, economic or environmental reasons and encounter certain difficulties. When designing those interventions, Member States should take into account their potential impact on the internal market.

| (67) | As it is widely recognised that the production of protein crops is encountering serious difficulties in the Union, there is no need to demonstrate such difficulties in the case of coupled income support interventions that target those crops. Member States should be allowed to use an additional part of their financial ceiling available for direct payments to grant coupled income support specifically for the support of protein crop production in order to reduce the Union’s deficit in this regard. Furthermore, Member States should be able to support mixtures of legumes and grasses under coupled income support as long as legumes remain predominant in the mixture. |
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(67)

As it is widely recognised that the production of protein crops is encountering serious difficulties in the Union, there is no need to demonstrate such difficulties in the case of coupled income support interventions that target those crops. Member States should be allowed to use an additional part of their financial ceiling available for direct payments to grant coupled income support specifically for the support of protein crop production in order to reduce the Union’s deficit in this regard. Furthermore, Member States should be able to support mixtures of legumes and grasses under coupled income support as long as legumes remain predominant in the mixture.

| (68) | In accordance with the objectives set out in Protocol No 4 on cotton attached to the 1979 Act of Accession, it is necessary to continue a ‘crop-specific payment’ per eligible hectare linked with the cultivation of cotton, as well as the support for interbranch organisations in the cotton producing regions. However, since the budgetary allocation for cotton is fixed and cannot be used for other purposes and because the implementation of the crop-specific payment has a legal basis in the Treaties, the payment for cotton should not be part of the interventions approved in the CAP Strategic Plan and should not be subject to performance clearance and performance review. Specific rules as well as derogations from this Regulation and Regulation (EU) 2021/2116 should thus be laid down accordingly. For the sake of consistency, it is appropriate to do so in this Regulation. |
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(68)

In accordance with the objectives set out in Protocol No 4 on cotton attached to the 1979 Act of Accession, it is necessary to continue a ‘crop-specific payment’ per eligible hectare linked with the cultivation of cotton, as well as the support for interbranch organisations in the cotton producing regions. However, since the budgetary allocation for cotton is fixed and cannot be used for other purposes and because the implementation of the crop-specific payment has a legal basis in the Treaties, the payment for cotton should not be part of the interventions approved in the CAP Strategic Plan and should not be subject to performance clearance and performance review. Specific rules as well as derogations from this Regulation and Regulation (EU) 2021/2116 should thus be laid down accordingly. For the sake of consistency, it is appropriate to do so in this Regulation.

| (69) | Types of intervention in certain sectors are needed to contribute to achieving the CAP objectives and reinforce synergies with other CAP instruments. In line with the delivery model, minimum requirements concerning the contents and objectives for such types of intervention in certain sectors should be established at Union level in order to ensure a level playing field in the internal market and avoid conditions of unequal and unfair competition. Member States should justify their inclusion in their CAP Strategic Plans and ensure consistency with other interventions at sector level. The broad types of intervention to be established at Union level should be laid down for the fruit and vegetables, wine, apiculture products, olive oil and table olives and hops sectors, as well as for other sectors among the sectors referred to in Article 1(2) of Regulation (EU) No 1308/2013 of the European Parliament and of the Council (25) and sectors covering products to be listed in an Annex to this Regulation, for which the establishment of specific interventions is deemed to have beneficial effects on the achievement of some or all of the general and specific objectives of the CAP pursued by this Regulation. In particular, given the Union’s deficit on plant protein and the environmental benefits their production brings, legumes should be included among the products listed in that Annex while respecting the EU WTO schedule on oilseeds, and those benefits should be promoted to farmers through, inter alia, the farm advisory services. |
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(69)

Types of intervention in certain sectors are needed to contribute to achieving the CAP objectives and reinforce synergies with other CAP instruments. In line with the delivery model, minimum requirements concerning the contents and objectives for such types of intervention in certain sectors should be established at Union level in order to ensure a level playing field in the internal market and avoid conditions of unequal and unfair competition. Member States should justify their inclusion in their CAP Strategic Plans and ensure consistency with other interventions at sector level. The broad types of intervention to be established at Union level should be laid down for the fruit and vegetables, wine, apiculture products, olive oil and table olives and hops sectors, as well as for other sectors among the sectors referred to in Article 1(2) of Regulation (EU) No 1308/2013 of the European Parliament and of the Council (25) and sectors covering products to be listed in an Annex to this Regulation, for which the establishment of specific interventions is deemed to have beneficial effects on the achievement of some or all of the general and specific objectives of the CAP pursued by this Regulation. In particular, given the Union’s deficit on plant protein and the environmental benefits their production brings, legumes should be included among the products listed in that Annex while respecting the EU WTO schedule on oilseeds, and those benefits should be promoted to farmers through, inter alia, the farm advisory services.

| (70) | National financial envelopes or other limitations in the form of caps are needed in order to maintain specificity of intervention and facilitate programming interventions for apiculture products, wine, olive oil and table olives, hops and other sectors to be defined in this Regulation. However, in order not to undermine the achievement of the objectives of the types of intervention in the fruit and vegetables sector, no financial limitations should apply in line with the current approach. Where Member States would introduce support for types of intervention in other sectors in their CAP Strategic Plans, the corresponding financial allocation should be deducted from the allocations for direct payments of the Member State concerned in order to remain financially neutral. Where a Member State would choose not to implement the specific interventions for the hops sector or the olive oil and table olives sector, the related allocations for that Member State should be made available as additional allocations for types of intervention in the form of direct payments. |
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(70)

National financial envelopes or other limitations in the form of caps are needed in order to maintain specificity of intervention and facilitate programming interventions for apiculture products, wine, olive oil and table olives, hops and other sectors to be defined in this Regulation. However, in order not to undermine the achievement of the objectives of the types of intervention in the fruit and vegetables sector, no financial limitations should apply in line with the current approach. Where Member States would introduce support for types of intervention in other sectors in their CAP Strategic Plans, the corresponding financial allocation should be deducted from the allocations for direct payments of the Member State concerned in order to remain financially neutral. Where a Member State would choose not to implement the specific interventions for the hops sector or the olive oil and table olives sector, the related allocations for that Member State should be made available as additional allocations for types of intervention in the form of direct payments.

| (71) | For interventions for rural development, principles are set out at Union level, in particular with regard to the basic requirements for the Member States to apply selection criteria. However, Member States should have ample discretion to lay down specific conditions according to their needs. Types of intervention for rural development include payments for environmental, climate-related and other management commitments that Member States should support throughout their territories, in accordance with their specific national, regional or local needs. Member States should grant payments to farmers and other land managers who undertake, on a voluntary basis, management commitments that contribute to climate change mitigation and adaptation and to the protection and improvement of the environment including water quality and quantity, air quality, soil, biodiversity and ecosystem services including voluntary commitments in Natura 2000 and support for genetic diversity. Support under payments for management commitments may also be granted in the form of locally-led, integrated or cooperative approaches and result-based interventions. |
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(71)

For interventions for rural development, principles are set out at Union level, in particular with regard to the basic requirements for the Member States to apply selection criteria. However, Member States should have ample discretion to lay down specific conditions according to their needs. Types of intervention for rural development include payments for environmental, climate-related and other management commitments that Member States should support throughout their territories, in accordance with their specific national, regional or local needs. Member States should grant payments to farmers and other land managers who undertake, on a voluntary basis, management commitments that contribute to climate change mitigation and adaptation and to the protection and improvement of the environment including water quality and quantity, air quality, soil, biodiversity and ecosystem services including voluntary commitments in Natura 2000 and support for genetic diversity. Support under payments for management commitments may also be granted in the form of locally-led, integrated or cooperative approaches and result-based interventions.

| (72) | Support for management commitments may in particular include organic farming premiums for the maintenance of, and the conversion to, organic land. Member States should, on the basis of their in-depth analysis of the organic sector and taking into account the objectives they intend to achieve in relation to organic production, consider organic farming for management commitments in accordance with their specific territorial needs, allocate support to increase the share of agricultural land managed under the organic farming scheme and ensure that allocated budgets match the expected growth in organic production. Support for management commitments could also include payments for other types of intervention supporting environmentally friendly production systems such as agro-ecology, conservation agriculture and integrated production; forest environmental and climate services and forest conservation; premiums for forests and establishment of agroforestry systems; animal welfare; conservation, sustainable use and development of genetic resources, in particular through traditional breeding methods. Member States should be allowed to develop other schemes under that type of intervention on the basis of their needs. That type of payment should cover additional costs and income foregone only resulting from commitments going beyond the baseline of mandatory standards and requirements established in Union and national law, as well as conditionality, as laid down in the CAP Strategic Plan. It should be possible for commitments related to that type of intervention to be undertaken for a pre-established annual or pluri-annual period and go beyond seven years where duly justified. |
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(72)

Support for management commitments may in particular include organic farming premiums for the maintenance of, and the conversion to, organic land. Member States should, on the basis of their in-depth analysis of the organic sector and taking into account the objectives they intend to achieve in relation to organic production, consider organic farming for management commitments in accordance with their specific territorial needs, allocate support to increase the share of agricultural land managed under the organic farming scheme and ensure that allocated budgets match the expected growth in organic production. Support for management commitments could also include payments for other types of intervention supporting environmentally friendly production systems such as agro-ecology, conservation agriculture and integrated production; forest environmental and climate services and forest conservation; premiums for forests and establishment of agroforestry systems; animal welfare; conservation, sustainable use and development of genetic resources, in particular through traditional breeding methods. Member States should be allowed to develop other schemes under that type of intervention on the basis of their needs. That type of payment should cover additional costs and income foregone only resulting from commitments going beyond the baseline of mandatory standards and requirements established in Union and national law, as well as conditionality, as laid down in the CAP Strategic Plan. It should be possible for commitments related to that type of intervention to be undertaken for a pre-established annual or pluri-annual period and go beyond seven years where duly justified.

| (73) | Forestry interventions should contribute to the implementation of Commission communication of 16 July 2021 entitled ‘New EU Forest Strategy for 2030’ and, where appropriate, to widening the use of agroforestry systems. They should be based on Member States’ national or subnational forest programmes or equivalent instruments, which should build on the commitments stemming from Regulation (EU) 2018/841 of the European Parliament and of the Council (26) and those made by the Ministerial Conferences on the Protection of Forests in Europe. Interventions should be based on sustainable forest management plans or equivalent instruments that duly consider effective carbon storage and sequestration from the atmosphere while enhancing biodiversity protection and may comprise forest area development and sustainable management of forests, including the afforestation of land, fire prevention and the creation and regeneration of agroforestry systems; the protection, restoration and improvement of forest resources, taking into account adaptation needs; investments to guarantee and enhance forest conservation and resilience, and the provision of forest ecosystem and climate services; and measures and investments in support of the renewable energy and bio-economy. |
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(73)

Forestry interventions should contribute to the implementation of Commission communication of 16 July 2021 entitled ‘New EU Forest Strategy for 2030’ and, where appropriate, to widening the use of agroforestry systems. They should be based on Member States’ national or subnational forest programmes or equivalent instruments, which should build on the commitments stemming from Regulation (EU) 2018/841 of the European Parliament and of the Council (26) and those made by the Ministerial Conferences on the Protection of Forests in Europe. Interventions should be based on sustainable forest management plans or equivalent instruments that duly consider effective carbon storage and sequestration from the atmosphere while enhancing biodiversity protection and may comprise forest area development and sustainable management of forests, including the afforestation of land, fire prevention and the creation and regeneration of agroforestry systems; the protection, restoration and improvement of forest resources, taking into account adaptation needs; investments to guarantee and enhance forest conservation and resilience, and the provision of forest ecosystem and climate services; and measures and investments in support of the renewable energy and bio-economy.

| (74) | In order to ensure a fair income and a resilient agricultural sector across the Union territory, Member States should be allowed to grant support to farmers in areas facing natural and other area-specific constraints, including mountain and island areas. As regards payments for areas facing natural and other specific constraints, the designation made pursuant to Article 32 of Regulation (EU) No 1305/2013 should continue to apply. |
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(74)

In order to ensure a fair income and a resilient agricultural sector across the Union territory, Member States should be allowed to grant support to farmers in areas facing natural and other area-specific constraints, including mountain and island areas. As regards payments for areas facing natural and other specific constraints, the designation made pursuant to Article 32 of Regulation (EU) No 1305/2013 should continue to apply.

| (75) | For the CAP to deliver enhanced Union added value on the environment and to reinforce its synergies with the financing of investments in nature and biodiversity, it is necessary to keep a separate measure aiming at compensating beneficiaries for disadvantages related to the implementation of Natura 2000, established by Directive 92/43/EEC, and of Directive 2000/60/EC. Support should therefore continue to be granted to farmers and forest holders to help address specific disadvantages resulting from the implementation of Directives 92/43/EEC and 2009/147/EC and in order to contribute to the effective management of Natura 2000 sites. Support should also be made available to farmers to help address disadvantages in river basin areas resulting from the implementation of Directive 2000/60/EC. Support should be linked to specific requirements described in the CAP Strategic Plans that go beyond relevant mandatory standards and requirements. Member States should also ensure that payments to farmers do not lead to double funding with eco-schemes while allowing enough flexibility in CAP Strategic Plans to facilitate complementarity between different interventions. Furthermore, the specific needs of Natura 2000 areas should be taken into account by Member States in the overall design of their CAP Strategic Plans. |
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(75)

For the CAP to deliver enhanced Union added value on the environment and to reinforce its synergies with the financing of investments in nature and biodiversity, it is necessary to keep a separate measure aiming at compensating beneficiaries for disadvantages related to the implementation of Natura 2000, established by Directive 92/43/EEC, and of Directive 2000/60/EC. Support should therefore continue to be granted to farmers and forest holders to help address specific disadvantages resulting from the implementation of Directives 92/43/EEC and 2009/147/EC and in order to contribute to the effective management of Natura 2000 sites. Support should also be made available to farmers to help address disadvantages in river basin areas resulting from the implementation of Directive 2000/60/EC. Support should be linked to specific requirements described in the CAP Strategic Plans that go beyond relevant mandatory standards and requirements. Member States should also ensure that payments to farmers do not lead to double funding with eco-schemes while allowing enough flexibility in CAP Strategic Plans to facilitate complementarity between different interventions. Furthermore, the specific needs of Natura 2000 areas should be taken into account by Member States in the overall design of their CAP Strategic Plans.

| (76) | The objectives of the CAP should also be pursued through support for investments, productive as well as non-productive, on-farm as well as off-farm. Such investments may concern, inter alia, infrastructures related to the development, modernisation or adaptation to climate change of agriculture and forestry, including access to farm and forest land, land consolidation and improvement, agro-forestry practices and the supply and saving of energy and water. It may also cover investments in the restoration of agricultural or forestry potential following natural disasters, adverse climatic events or catastrophic events, including fires, storms, floods, pests and diseases. In order to better ensure the consistency of the CAP Strategic Plans with Union objectives, as well as a level playing field between Member States, a negative list of investment topics should be included in this Regulation. Member States should make the best use of the available funds for investments by aligning support for investments with the relevant Union rules in the areas of environment and animal welfare. |
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(76)

The objectives of the CAP should also be pursued through support for investments, productive as well as non-productive, on-farm as well as off-farm. Such investments may concern, inter alia, infrastructures related to the development, modernisation or adaptation to climate change of agriculture and forestry, including access to farm and forest land, land consolidation and improvement, agro-forestry practices and the supply and saving of energy and water. It may also cover investments in the restoration of agricultural or forestry potential following natural disasters, adverse climatic events or catastrophic events, including fires, storms, floods, pests and diseases. In order to better ensure the consistency of the CAP Strategic Plans with Union objectives, as well as a level playing field between Member States, a negative list of investment topics should be included in this Regulation. Member States should make the best use of the available funds for investments by aligning support for investments with the relevant Union rules in the areas of environment and animal welfare.

| (77) | Young farmers in particular need to modernise their farms in order to make them viable in the long term. However, they often experience low turnover during the first years of business. It is therefore important that Member States facilitate and give priority to investment interventions carried out by young farmers. To that end, Member States should be allowed to set in their CAP Strategic Plans higher support rates and other preferential conditions for investments on young farmers’ holdings. Member States should also be allowed to give increased investment support to small farms. |
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(77)

Young farmers in particular need to modernise their farms in order to make them viable in the long term. However, they often experience low turnover during the first years of business. It is therefore important that Member States facilitate and give priority to investment interventions carried out by young farmers. To that end, Member States should be allowed to set in their CAP Strategic Plans higher support rates and other preferential conditions for investments on young farmers’ holdings. Member States should also be allowed to give increased investment support to small farms.

| (78) | When providing support for investments, Member States should take particularly into account the cross-cutting objective of modernising agriculture and rural areas by fostering and sharing of knowledge, innovation and digitalisation in agriculture and rural areas, and encouraging their uptake. Support for investments in installation of digital technologies in agriculture, forestry and rural areas, such as investments in precision farming, smart villages, rural businesses and information and communications technology infrastructures should be included in the description in the CAP Strategic Plans of the contribution of those plans to the cross-cutting objective. |
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(78)

When providing support for investments, Member States should take particularly into account the cross-cutting objective of modernising agriculture and rural areas by fostering and sharing of knowledge, innovation and digitalisation in agriculture and rural areas, and encouraging their uptake. Support for investments in installation of digital technologies in agriculture, forestry and rural areas, such as investments in precision farming, smart villages, rural businesses and information and communications technology infrastructures should be included in the description in the CAP Strategic Plans of the contribution of those plans to the cross-cutting objective.

| (79) | Taking into consideration the Union’s objective of good status for water bodies and the need for investments to be in line with that objective, it is important to set rules as regards the support for the modernisation and the development of irrigation infrastructures so that agricultural water use does not put that objective at risk. |
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(79)

Taking into consideration the Union’s objective of good status for water bodies and the need for investments to be in line with that objective, it is important to set rules as regards the support for the modernisation and the development of irrigation infrastructures so that agricultural water use does not put that objective at risk.

| (80) | In the light of the need to fill the investment gap in the Union agricultural sector and improve access to finance for priority groups, particularly young farmers and new farmers with higher risk profiles, use of the EU guarantee under InvestEU and combination of grants and financial instruments should be encouraged. Since the use of financial instruments across Member States varies considerably as a result of differences in terms of access to finance, banking sector development, presence of risk capital, familiarity of public administrations and potential range of beneficiaries, Member States should establish in their CAP Strategic Plans appropriate targets, beneficiaries and preferential conditions, and other possible eligibility rules. |
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(80)

In the light of the need to fill the investment gap in the Union agricultural sector and improve access to finance for priority groups, particularly young farmers and new farmers with higher risk profiles, use of the EU guarantee under InvestEU and combination of grants and financial instruments should be encouraged. Since the use of financial instruments across Member States varies considerably as a result of differences in terms of access to finance, banking sector development, presence of risk capital, familiarity of public administrations and potential range of beneficiaries, Member States should establish in their CAP Strategic Plans appropriate targets, beneficiaries and preferential conditions, and other possible eligibility rules.

| (81) | Young farmers, new farmers and other new entrants still face significant barriers regarding access to land, high prices or access to credit. Their businesses are more threatened by price volatility for both inputs and produce and their needs in terms of training in entrepreneurial, risk prevention and risk management skills are high. It is therefore essential to continue the support for the setting-up of new businesses and new farms. Member States should also be allowed to set in their CAP Strategic Plans preferential conditions for financial instruments for young farmers, new farmers and other new entrants. The maximum amount of aid for the setting-up of young farmers and rural business start-up should be increased up to EUR 100 000, which can be accessed also through or in combination with financial instrument form of support. |
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(81)

Young farmers, new farmers and other new entrants still face significant barriers regarding access to land, high prices or access to credit. Their businesses are more threatened by price volatility for both inputs and produce and their needs in terms of training in entrepreneurial, risk prevention and risk management skills are high. It is therefore essential to continue the support for the setting-up of new businesses and new farms. Member States should also be allowed to set in their CAP Strategic Plans preferential conditions for financial instruments for young farmers, new farmers and other new entrants. The maximum amount of aid for the setting-up of young farmers and rural business start-up should be increased up to EUR 100 000, which can be accessed also through or in combination with financial instrument form of support.

| (82) | In the light of the need to ensure appropriate risk management tools, support to help farmers manage their production and income risks should be maintained and widened under the EAFRD. Specifically, insurance premiums and mutual funds, including an income stabilisation tool, should remain possible, but support should also be made available for other risk management tools. Furthermore, all types of risk management tool should have the scope to cover production or income risks, as well as to be targetable to agricultural sectors or territorial areas where needed. Member States should be allowed to make use of procedural simplifications, such as relying on indexes to calculate the production and income of the farmer, while ensuring appropriate responsiveness of the tools to the farmers’ individual performance and avoiding overcompensation of losses. |
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(82)

In the light of the need to ensure appropriate risk management tools, support to help farmers manage their production and income risks should be maintained and widened under the EAFRD. Specifically, insurance premiums and mutual funds, including an income stabilisation tool, should remain possible, but support should also be made available for other risk management tools. Furthermore, all types of risk management tool should have the scope to cover production or income risks, as well as to be targetable to agricultural sectors or territorial areas where needed. Member States should be allowed to make use of procedural simplifications, such as relying on indexes to calculate the production and income of the farmer, while ensuring appropriate responsiveness of the tools to the farmers’ individual performance and avoiding overcompensation of losses.

| (83) | Support should enable the establishment and implementation of cooperation between at least two entities with a view to achieving the objectives of the CAP. It should be possible for such support to entail all aspects of such cooperation, such as the setting-up of quality schemes and information and promotion activities for quality schemes; collective environmental and climate action; the promotion of short supply chain and local markets; pilot projects; operational group projects within the EIP local development projects, smart villages, buyers’ clubs and machinery rings; farm partnerships; forest management plans; networks and clusters; social farming; community supported agriculture; actions within the scope of LEADER; and the setting-up of producer groups and producer organisations, as well as other forms of cooperation deemed necessary to achieve the specific objectives of the CAP. |
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(83)

Support should enable the establishment and implementation of cooperation between at least two entities with a view to achieving the objectives of the CAP. It should be possible for such support to entail all aspects of such cooperation, such as the setting-up of quality schemes and information and promotion activities for quality schemes; collective environmental and climate action; the promotion of short supply chain and local markets; pilot projects; operational group projects within the EIP local development projects, smart villages, buyers’ clubs and machinery rings; farm partnerships; forest management plans; networks and clusters; social farming; community supported agriculture; actions within the scope of LEADER; and the setting-up of producer groups and producer organisations, as well as other forms of cooperation deemed necessary to achieve the specific objectives of the CAP.

| (84) | It is important to support preparation of certain kind of cooperation, in particular for EIP operational groups, LEADER groups and smart-village strategies. |
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(84)

It is important to support preparation of certain kind of cooperation, in particular for EIP operational groups, LEADER groups and smart-village strategies.

| (85) | The communication on ‘The Future of Food and Farming’ refers to the exchange of knowledge and focus on innovation as a cross-cutting objective for the new CAP. The CAP should continue to support the interactive innovation model, which enhances the collaboration between actors to make best use of complementary knowledge with a view to spreading solutions ready for practice. Farm advisory services should be strengthened within the AKIS. The CAP Strategic Plan should provide information on how advisors, researchers and the national CAP network will work together. Each Member State or region, as appropriate, in order to strengthen its AKIS and in line with its AKIS strategic approach should be able to fund a number of actions aimed at knowledge exchange and innovation, as well as facilitate the development by farmers of farm-level strategies to increase the resilience of their holdings, using the types of intervention developed in this Regulation. In addition, each Member State should establish a strategy for the development of digital technologies and for the use of those technologies to demonstrate how digitalisation in agriculture and rural areas will be boosted. |
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(85)

The communication on ‘The Future of Food and Farming’ refers to the exchange of knowledge and focus on innovation as a cross-cutting objective for the new CAP. The CAP should continue to support the interactive innovation model, which enhances the collaboration between actors to make best use of complementary knowledge with a view to spreading solutions ready for practice. Farm advisory services should be strengthened within the AKIS. The CAP Strategic Plan should provide information on how advisors, researchers and the national CAP network will work together. Each Member State or region, as appropriate, in order to strengthen its AKIS and in line with its AKIS strategic approach should be able to fund a number of actions aimed at knowledge exchange and innovation, as well as facilitate the development by farmers of farm-level strategies to increase the resilience of their holdings, using the types of intervention developed in this Regulation. In addition, each Member State should establish a strategy for the development of digital technologies and for the use of those technologies to demonstrate how digitalisation in agriculture and rural areas will be boosted.

| (86) | The EAGF should continue financing types of intervention in the form of direct payments and types of intervention in certain sectors, whereas the EAFRD should continue financing types of intervention for rural development. The rules for the financial management of the CAP should be laid down separately for the two funds and for the activities supported by each of them, taking into account that the new delivery model gives more flexibility and subsidiarity for Member States to reach their objectives. Types of intervention under this Regulation should cover the period from 1 January 2023 to 31 December 2027. |
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(86)

The EAGF should continue financing types of intervention in the form of direct payments and types of intervention in certain sectors, whereas the EAFRD should continue financing types of intervention for rural development. The rules for the financial management of the CAP should be laid down separately for the two funds and for the activities supported by each of them, taking into account that the new delivery model gives more flexibility and subsidiarity for Member States to reach their objectives. Types of intervention under this Regulation should cover the period from 1 January 2023 to 31 December 2027.

| (87) | Support for direct payments under the CAP Strategic Plans should be granted within national allocations to be fixed by this Regulation. Those national allocations should reflect a continuation of the changes whereby the allocations to Member States with the lowest support level per hectare are gradually increased to close 50 % of the gap towards 90 % of the Union average. In order to take into account the reduction of payments’ mechanism and the use of its product in the Member State, the total indicative financial allocations per year in the CAP Strategic Plan of a Member State should be allowed to exceed the national allocation. |
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(87)

Support for direct payments under the CAP Strategic Plans should be granted within national allocations to be fixed by this Regulation. Those national allocations should reflect a continuation of the changes whereby the allocations to Member States with the lowest support level per hectare are gradually increased to close 50 % of the gap towards 90 % of the Union average. In order to take into account the reduction of payments’ mechanism and the use of its product in the Member State, the total indicative financial allocations per year in the CAP Strategic Plan of a Member State should be allowed to exceed the national allocation.

| (88) | In order to facilitate the management of EAFRD funds, a single contribution rate for support from the EAFRD should be set in relation to public expenditure in the Member States. In order to take account of their particular importance or nature, specific contribution rates should be set in relation to certain types of operation. In order to mitigate the specific constraints resulting from their level of development, their remoteness or their insularity, an appropriate EAFRD contribution rate should be set for less developed regions, for the outermost regions, and the smaller Aegean islands, and for transition regions. |
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(88)

In order to facilitate the management of EAFRD funds, a single contribution rate for support from the EAFRD should be set in relation to public expenditure in the Member States. In order to take account of their particular importance or nature, specific contribution rates should be set in relation to certain types of operation. In order to mitigate the specific constraints resulting from their level of development, their remoteness or their insularity, an appropriate EAFRD contribution rate should be set for less developed regions, for the outermost regions, and the smaller Aegean islands, and for transition regions.

| (89) | Objective criteria should be established for categorising regions and areas at Union level for support from the EAFRD. To that end, the identification of the regions and areas at Union level should be based on the common system of classification of the regions established by Regulation (EC) No 1059/2003 of the European Parliament and the Council (27). The latest classifications and data should be used to ensure adequate support, in particular for addressing regions that are lagging behind and interregional disparities within a Member State. |
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(89)

Objective criteria should be established for categorising regions and areas at Union level for support from the EAFRD. To that end, the identification of the regions and areas at Union level should be based on the common system of classification of the regions established by Regulation (EC) No 1059/2003 of the European Parliament and the Council (27). The latest classifications and data should be used to ensure adequate support, in particular for addressing regions that are lagging behind and interregional disparities within a Member State.

| (90) | The EAFRD should not provide support for investments that would harm the environment. Hence, it is necessary to provide in this Regulation a number of exclusion rules. In particular, the EAFRD should not finance investments in irrigation which do not contribute to the achievement, or the preservation, of good status of the associated water body or bodies, and should not finance investments in afforestation which are not consistent with environmental and climate-related objectives in line with sustainable forest management principles. |
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(90)

The EAFRD should not provide support for investments that would harm the environment. Hence, it is necessary to provide in this Regulation a number of exclusion rules. In particular, the EAFRD should not finance investments in irrigation which do not contribute to the achievement, or the preservation, of good status of the associated water body or bodies, and should not finance investments in afforestation which are not consistent with environmental and climate-related objectives in line with sustainable forest management principles.

| (91) | For the purpose of ensuring adequate financing for certain priorities, rules on minimum and maximum financial allocations for these priorities should be set. Member States should reserve at least an amount corresponding to 3 % of their annual direct payments envelope before any transfer for interventions targeting generational renewal. Such interventions may include enhanced income support and setting-up support. Considering the importance of investment support for young farmers to make their farms viable in the long term and reinforce the attractiveness of the sector, a share of the expenditure for the investment interventions with higher support rate for young farmers should also count towards the minimum amount to be reserved for contributing to achieving the specific objective to attract and sustain young farmers and new farmers and facilitate sustainable business development in rural areas. |
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(91)

For the purpose of ensuring adequate financing for certain priorities, rules on minimum and maximum financial allocations for these priorities should be set. Member States should reserve at least an amount corresponding to 3 % of their annual direct payments envelope before any transfer for interventions targeting generational renewal. Such interventions may include enhanced income support and setting-up support. Considering the importance of investment support for young farmers to make their farms viable in the long term and reinforce the attractiveness of the sector, a share of the expenditure for the investment interventions with higher support rate for young farmers should also count towards the minimum amount to be reserved for contributing to achieving the specific objective to attract and sustain young farmers and new farmers and facilitate sustainable business development in rural areas.

| (92) | With a view to ensuring that sufficient financing is made available under the CAP to deliver on the environmental, climate-related and animal welfare objectives in line with the Union’s priorities, a certain share of both EAFRD support, including investments, and direct payments should be reserved for those purposes. Given that the schemes for the climate, the environment and animal welfare are introduced for the first time under direct payments, certain flexibilities in terms of planning and implementation should be granted, in particular in the first two years, to allow Member States and farmers to gain experience and ensure a smooth and successful implementation, taking also the level of the environmental and climate-related ambitions under EAFRD into account. With a view to respecting the overall environmental and climate-related ambition, such flexibility should be framed and subject to compensation within certain limits. |
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(92)

With a view to ensuring that sufficient financing is made available under the CAP to deliver on the environmental, climate-related and animal welfare objectives in line with the Union’s priorities, a certain share of both EAFRD support, including investments, and direct payments should be reserved for those purposes. Given that the schemes for the climate, the environment and animal welfare are introduced for the first time under direct payments, certain flexibilities in terms of planning and implementation should be granted, in particular in the first two years, to allow Member States and farmers to gain experience and ensure a smooth and successful implementation, taking also the level of the environmental and climate-related ambitions under EAFRD into account. With a view to respecting the overall environmental and climate-related ambition, such flexibility should be framed and subject to compensation within certain limits.

| (93) | The LEADER approach for local development has proven its effectiveness in promoting the development of rural areas by fully taking into account the multi-sectoral needs for endogenous rural development through its bottom-up approach. LEADER should therefore be continued in the future and its application should remain compulsory with a minimum allocation under the EAFRD. |
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(93)

The LEADER approach for local development has proven its effectiveness in promoting the development of rural areas by fully taking into account the multi-sectoral needs for endogenous rural development through its bottom-up approach. LEADER should therefore be continued in the future and its application should remain compulsory with a minimum allocation under the EAFRD.

| (94) | Reflecting the importance of tackling climate change in line with the Union’s commitments to implement the Paris Agreement and the United Nations Sustainable Development Goals, the CAP should contribute to mainstreaming climate action in the Union’s policies and to the achievement of an overall target of 30 % of the Union’s budget expenditures supporting climate objectives. Actions under the CAP are expected to contribute 40 % of the overall financial envelope of the CAP to the achievement of climate-related objectives. Relevant actions should be identified during the CAP Strategic Plans’ preparation and implementation, and reassessed in the context of the relevant evaluations and review processes. |
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(94)

Reflecting the importance of tackling climate change in line with the Union’s commitments to implement the Paris Agreement and the United Nations Sustainable Development Goals, the CAP should contribute to mainstreaming climate action in the Union’s policies and to the achievement of an overall target of 30 % of the Union’s budget expenditures supporting climate objectives. Actions under the CAP are expected to contribute 40 % of the overall financial envelope of the CAP to the achievement of climate-related objectives. Relevant actions should be identified during the CAP Strategic Plans’ preparation and implementation, and reassessed in the context of the relevant evaluations and review processes.

| (95) | Where unit amounts are not based on actual costs or income foregone, Member States should set the appropriate level of support based on their assessment of needs. The appropriate unit amount might be a range of appropriate unit amounts rather than one single uniform or average unit amount. Therefore, Member States should also be allowed to lay down, in their CAP Strategic Plans, a justified maximum or minimum unit amount for certain interventions without prejudice to the provisions relating to the level of payments for the relevant interventions. |
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(95)

Where unit amounts are not based on actual costs or income foregone, Member States should set the appropriate level of support based on their assessment of needs. The appropriate unit amount might be a range of appropriate unit amounts rather than one single uniform or average unit amount. Therefore, Member States should also be allowed to lay down, in their CAP Strategic Plans, a justified maximum or minimum unit amount for certain interventions without prejudice to the provisions relating to the level of payments for the relevant interventions.

| (96) | The transfer of responsibility to Member States for assessing needs and achieving targets goes hand in hand with an increased flexibility to set up the combination of types of intervention in the form of direct payments, types of intervention in certain sectors and types of intervention for rural development. This should be supported by some flexibility to adjust the relevant national allocations of funds. When Member States estimate that the pre-allocated envelope is too low to have room for all intended measures, a certain degree of flexibility is therefore justified, while avoiding considerable fluctuations in the level of annual direct income support versus the amounts available for multi-annual interventions under the EAFRD. |
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(96)

The transfer of responsibility to Member States for assessing needs and achieving targets goes hand in hand with an increased flexibility to set up the combination of types of intervention in the form of direct payments, types of intervention in certain sectors and types of intervention for rural development. This should be supported by some flexibility to adjust the relevant national allocations of funds. When Member States estimate that the pre-allocated envelope is too low to have room for all intended measures, a certain degree of flexibility is therefore justified, while avoiding considerable fluctuations in the level of annual direct income support versus the amounts available for multi-annual interventions under the EAFRD.

| (97) | To enhance the Union added value and to preserve a functioning agricultural internal market, as well as to pursue the general and specific objectives of the CAP, Member States should not take decisions pursuant to this Regulation in isolation but in the framework of a structured process that should materialise in a CAP Strategic Plan. Union top-down rules should lay down the specific Union-wide objectives of the CAP, the main types of intervention, the performance framework and the governance structure. Such a distribution of tasks is aimed at ensuring full correspondence between financial resources invested and results achieved. |
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(97)

To enhance the Union added value and to preserve a functioning agricultural internal market, as well as to pursue the general and specific objectives of the CAP, Member States should not take decisions pursuant to this Regulation in isolation but in the framework of a structured process that should materialise in a CAP Strategic Plan. Union top-down rules should lay down the specific Union-wide objectives of the CAP, the main types of intervention, the performance framework and the governance structure. Such a distribution of tasks is aimed at ensuring full correspondence between financial resources invested and results achieved.

| (98) | In order to ensure a clear strategic nature of these CAP Strategic Plans and to facilitate the links with other Union policies, and particularly with established long-term national targets deriving from Union legislation or international agreements such as those related to climate change, forests, biodiversity, and water, it is appropriate that there should be one single CAP Strategic Plan per Member State, taking into account its constitutional and institutional provisions. The CAP Strategic Plan may, where appropriate, include regionalised interventions. |
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(98)

In order to ensure a clear strategic nature of these CAP Strategic Plans and to facilitate the links with other Union policies, and particularly with established long-term national targets deriving from Union legislation or international agreements such as those related to climate change, forests, biodiversity, and water, it is appropriate that there should be one single CAP Strategic Plan per Member State, taking into account its constitutional and institutional provisions. The CAP Strategic Plan may, where appropriate, include regionalised interventions.

| (99) | In the process of development of their CAP Strategic Plans, Member States should analyse their specific situation and needs, set targets linked to the achievement of the objectives of the CAP and design the interventions which will allow those targets to be reached, while being adapted to the national and specific regional contexts, including those of the outermost regions. Such process should promote more subsidiarity within a common Union framework, while compliance with the general principles of Union law and the objectives of the CAP should be ensured. It is therefore appropriate to set rules on the structure and content of the CAP Strategic Plans. |
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(99)

In the process of development of their CAP Strategic Plans, Member States should analyse their specific situation and needs, set targets linked to the achievement of the objectives of the CAP and design the interventions which will allow those targets to be reached, while being adapted to the national and specific regional contexts, including those of the outermost regions. Such process should promote more subsidiarity within a common Union framework, while compliance with the general principles of Union law and the objectives of the CAP should be ensured. It is therefore appropriate to set rules on the structure and content of the CAP Strategic Plans.

| (100) | In order to ensure that the setting of targets by Member States and that the design of interventions is appropriate and maximises the contribution to achieving the objectives of the CAP, it is necessary to base the strategy of the CAP Strategic Plans on a prior analysis of the local contexts and an assessment of needs in relation to the objectives of the CAP. It is also important to ensure that the CAP Strategic Plans can reflect changes in Member States’ conditions, structures (both internal and external) and market situations adequately and that they can, therefore, be adjusted over time to reflect those changes. |
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(100)

In order to ensure that the setting of targets by Member States and that the design of interventions is appropriate and maximises the contribution to achieving the objectives of the CAP, it is necessary to base the strategy of the CAP Strategic Plans on a prior analysis of the local contexts and an assessment of needs in relation to the objectives of the CAP. It is also important to ensure that the CAP Strategic Plans can reflect changes in Member States’ conditions, structures (both internal and external) and market situations adequately and that they can, therefore, be adjusted over time to reflect those changes.

| (101) | The CAP Strategic Plans should aim to ensure enhanced coherence across the multiple tools of the CAP, since they should cover types of intervention in the form of direct payments, types of intervention in certain sectors and types of intervention for rural development. They should also ensure and demonstrate the alignment and appropriateness of the choices made by Member States to the Union priorities and objectives. In that perspective, CAP Strategic Plans should include an overview and explanation of the tools ensuring a fairer distribution and more effective and efficient targeting of income support. It is therefore appropriate that they contain a result-oriented intervention strategy structured around the specific objectives of the CAP, including quantified targets in relation to those objectives. In order to allow their monitoring on an annual basis, it is appropriate that those targets are based on result indicators. |
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(101)

The CAP Strategic Plans should aim to ensure enhanced coherence across the multiple tools of the CAP, since they should cover types of intervention in the form of direct payments, types of intervention in certain sectors and types of intervention for rural development. They should also ensure and demonstrate the alignment and appropriateness of the choices made by Member States to the Union priorities and objectives. In that perspective, CAP Strategic Plans should include an overview and explanation of the tools ensuring a fairer distribution and more effective and efficient targeting of income support. It is therefore appropriate that they contain a result-oriented intervention strategy structured around the specific objectives of the CAP, including quantified targets in relation to those objectives. In order to allow their monitoring on an annual basis, it is appropriate that those targets are based on result indicators.

| (102) | The intervention strategy should also highlight complementarity both between CAP tools and with the other Union policies. In particular, each CAP Strategic Plan should take account of the relevant environmental and climate legislation, and national plans emanating from that legislation should be described as part of the analysis of the current situation (‘SWOT analysis’). It is appropriate to list the legislative acts which should specifically be referred to in the CAP Strategic Plan. |
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(102)

The intervention strategy should also highlight complementarity both between CAP tools and with the other Union policies. In particular, each CAP Strategic Plan should take account of the relevant environmental and climate legislation, and national plans emanating from that legislation should be described as part of the analysis of the current situation (‘SWOT analysis’). It is appropriate to list the legislative acts which should specifically be referred to in the CAP Strategic Plan.

| (103) | Given that flexibility should be accorded to Member States as regards the choice of delegating part of the design and implementation of their CAP Strategic Plans at regional level on the basis of a national framework, in order to facilitate co-ordination among the regions in addressing nation-wide challenges, it is appropriate that the CAP Strategic Plans provide a description of the interplay between national and regional interventions. |
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(103)

Given that flexibility should be accorded to Member States as regards the choice of delegating part of the design and implementation of their CAP Strategic Plans at regional level on the basis of a national framework, in order to facilitate co-ordination among the regions in addressing nation-wide challenges, it is appropriate that the CAP Strategic Plans provide a description of the interplay between national and regional interventions.

| (104) | Since the CAP Strategic Plans should allow the Commission to assume its responsibility for the management of the Union budget and provide Member States with legal certainty on certain elements of the CAP Strategic Plan, it is appropriate that the CAP Strategic Plans contain a specific description of the individual interventions, including the eligibility conditions, the budgetary allocations, the planned outputs and the unit costs. A financial plan is necessary to provide an overview on all budgetary aspects and for each intervention, together with a target plan. |
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(104)

Since the CAP Strategic Plans should allow the Commission to assume its responsibility for the management of the Union budget and provide Member States with legal certainty on certain elements of the CAP Strategic Plan, it is appropriate that the CAP Strategic Plans contain a specific description of the individual interventions, including the eligibility conditions, the budgetary allocations, the planned outputs and the unit costs. A financial plan is necessary to provide an overview on all budgetary aspects and for each intervention, together with a target plan.

| (105) | In order to ensure the immediate start and efficient implementation of the CAP Strategic Plans, support from the EAGF and the EAFRD should be based on the existence of sound administrative framework conditions. Each CAP Strategic Plan should therefore include the identification of all governance and coordination structures of the CAP Strategic Plan, including the control systems and penalties, and the monitoring and reporting structure. |
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(105)

In order to ensure the immediate start and efficient implementation of the CAP Strategic Plans, support from the EAGF and the EAFRD should be based on the existence of sound administrative framework conditions. Each CAP Strategic Plan should therefore include the identification of all governance and coordination structures of the CAP Strategic Plan, including the control systems and penalties, and the monitoring and reporting structure.

| (106) | Considering the importance of the specific objective of modernising agriculture and rural areas, and in view of its cross-cutting nature, it is appropriate that Member States include in their CAP Strategic Plans a dedicated description of the contribution that those CAP Strategic Plans will make to achieving that objective, including their contribution to the digital transition. |
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(106)

Considering the importance of the specific objective of modernising agriculture and rural areas, and in view of its cross-cutting nature, it is appropriate that Member States include in their CAP Strategic Plans a dedicated description of the contribution that those CAP Strategic Plans will make to achieving that objective, including their contribution to the digital transition.

| (107) | In view of the concerns related to administrative burden under shared management, simplification should also be subject to specific attention in the CAP Strategic Plan. |
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(107)

In view of the concerns related to administrative burden under shared management, simplification should also be subject to specific attention in the CAP Strategic Plan.

| (108) | Given that it is not appropriate for the Commission to approve information which can be considered to be background or historical information, or which is under the responsibility of the Member States, certain information should be provided as Annexes to the CAP Strategic Plan. |
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(108)

Given that it is not appropriate for the Commission to approve information which can be considered to be background or historical information, or which is under the responsibility of the Member States, certain information should be provided as Annexes to the CAP Strategic Plan.

| (109) | Pursuant to paragraphs 22 and 23 of the Inter institutional Agreement of 13 April 2016 on Better Law-Making (28), Union funds need to be evaluated on the basis of information collected through specific monitoring requirements, while avoiding overregulation and administrative burdens, in particular on Member States. Those requirements, where appropriate, can include measurable indicators, as a basis for evaluating the effects of the funds on the ground. |
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(109)

Pursuant to paragraphs 22 and 23 of the Inter institutional Agreement of 13 April 2016 on Better Law-Making (28), Union funds need to be evaluated on the basis of information collected through specific monitoring requirements, while avoiding overregulation and administrative burdens, in particular on Member States. Those requirements, where appropriate, can include measurable indicators, as a basis for evaluating the effects of the funds on the ground.

| (110) | The approval of the CAP Strategic Plan by the Commission is a crucial step in order to ensure that the policy is implemented in accordance with the common objectives. In accordance with the principle of subsidiarity, the Commission should provide the Member States with appropriate guidance in presenting coherent and ambitious intervention logics. |
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(110)

The approval of the CAP Strategic Plan by the Commission is a crucial step in order to ensure that the policy is implemented in accordance with the common objectives. In accordance with the principle of subsidiarity, the Commission should provide the Member States with appropriate guidance in presenting coherent and ambitious intervention logics.

| (111) | It is necessary to provide for the possibility for programming and revising CAP Strategic Plans, in accordance with the conditions laid down in this Regulation. |
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(111)

It is necessary to provide for the possibility for programming and revising CAP Strategic Plans, in accordance with the conditions laid down in this Regulation.

| (112) | A national managing authority should be responsible for the management and implementation of each CAP Strategic Plan and should be the primary contact point for the Commission. However, where elements relating to rural development policy are dealt with on a regional basis, Member States should be able to establish regional managing authorities. The managing authorities should be able to delegate part of their duties while retaining responsibility for the efficiency and correctness of management and ensuring coherence and consistency of the CAP Strategic Plan and coordination between the national managing authority and the regional managing authorities. Member States should ensure that, in the management and implementation of their CAP Strategic Plans, the financial interests of the Union are protected in accordance with the Financial Regulation and Regulation (EU) 2021/2116. |
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(112)

A national managing authority should be responsible for the management and implementation of each CAP Strategic Plan and should be the primary contact point for the Commission. However, where elements relating to rural development policy are dealt with on a regional basis, Member States should be able to establish regional managing authorities. The managing authorities should be able to delegate part of their duties while retaining responsibility for the efficiency and correctness of management and ensuring coherence and consistency of the CAP Strategic Plan and coordination between the national managing authority and the regional managing authorities. Member States should ensure that, in the management and implementation of their CAP Strategic Plans, the financial interests of the Union are protected in accordance with the Financial Regulation and Regulation (EU) 2021/2116.

| (113) | The responsibility for monitoring the CAP Strategic Plan should be shared between the national managing authority and a national monitoring committee set up for that purpose. The national monitoring committee should be responsible for the monitoring of the effectiveness of the implementation of the CAP Strategic Plan. To that end, its responsibilities should be specified. Where the CAP Strategic Plan contains elements that are established by regions, Member States and the regions concerned should be able to establish and compose regional monitoring committees. In that event, the rules on coordination with the national monitoring committee should be clarified. |
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(113)

The responsibility for monitoring the CAP Strategic Plan should be shared between the national managing authority and a national monitoring committee set up for that purpose. The national monitoring committee should be responsible for the monitoring of the effectiveness of the implementation of the CAP Strategic Plan. To that end, its responsibilities should be specified. Where the CAP Strategic Plan contains elements that are established by regions, Member States and the regions concerned should be able to establish and compose regional monitoring committees. In that event, the rules on coordination with the national monitoring committee should be clarified.

| (114) | The EAFRD should support through technical assistance, at the initiative of the Commission, actions relating to the fulfilment of the tasks referred to in Article 7 of Regulation (EU) 2021/2116. Technical assistance may also be provided, at the initiative of Member States, for the purpose of the fulfilment of the tasks necessary for the effective administration and implementation of support in relation to the CAP Strategic Plan. An increase in the technical assistance at the initiative of Member States is only available for Member States whose EAFRD allocation is not higher than EUR 1,1 billion. The EAFRD support for technical assistance should take into account the increase in administrative capacity building as regards the new governance and control systems in the Member States. |
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(114)

The EAFRD should support through technical assistance, at the initiative of the Commission, actions relating to the fulfilment of the tasks referred to in Article 7 of Regulation (EU) 2021/2116. Technical assistance may also be provided, at the initiative of Member States, for the purpose of the fulfilment of the tasks necessary for the effective administration and implementation of support in relation to the CAP Strategic Plan. An increase in the technical assistance at the initiative of Member States is only available for Member States whose EAFRD allocation is not higher than EUR 1,1 billion. The EAFRD support for technical assistance should take into account the increase in administrative capacity building as regards the new governance and control systems in the Member States.

| (115) | In a context where Member States will have much more flexibility and subsidiarity in the design of interventions to reach common objectives, networks are a key tool to drive and steer policy and to promote stakeholder engagement, knowledge sharing and capacity building for Member States and other actors. The scope of networking activities will be extended from rural development to encompass both pillars of the CAP. A single Union-level CAP network should ensure better coordination between networking activities at the Union and at the national and regional levels. The European and national CAP networks should replace the current European Network for Rural Development and the EIP-AGRI Network at Union level and the national rural networks, respectively. The European CAP network should contribute to the activities of the national CAP networks to the extent possible. The networks should provide a platform for promoting increased exchange of knowledge in order to improve the implementation of the CAP Strategic Plans and capture the results and added value of the policy at Union level, including the Horizon Europe policy and its multi-actor projects. In the same perspective of improvement of the exchange of knowledge and innovation, the EIP assisted by the European and national CAP networks should support the implementation of the interactive innovation model in accordance with the methodology outlined in this Regulation. |
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(115)

In a context where Member States will have much more flexibility and subsidiarity in the design of interventions to reach common objectives, networks are a key tool to drive and steer policy and to promote stakeholder engagement, knowledge sharing and capacity building for Member States and other actors. The scope of networking activities will be extended from rural development to encompass both pillars of the CAP. A single Union-level CAP network should ensure better coordination between networking activities at the Union and at the national and regional levels. The European and national CAP networks should replace the current European Network for Rural Development and the EIP-AGRI Network at Union level and the national rural networks, respectively. The European CAP network should contribute to the activities of the national CAP networks to the extent possible. The networks should provide a platform for promoting increased exchange of knowledge in order to improve the implementation of the CAP Strategic Plans and capture the results and added value of the policy at Union level, including the Horizon Europe policy and its multi-actor projects. In the same perspective of improvement of the exchange of knowledge and innovation, the EIP assisted by the European and national CAP networks should support the implementation of the interactive innovation model in accordance with the methodology outlined in this Regulation.

| (116) | Each CAP Strategic Plan should be subject to regular monitoring of the implementation and of progress towards the established targets. Such a performance, monitoring and evaluation framework of the CAP should be set up with the purpose of demonstrating the progress and assessing the impact and efficiency of policy implementation. |
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(116)

Each CAP Strategic Plan should be subject to regular monitoring of the implementation and of progress towards the established targets. Such a performance, monitoring and evaluation framework of the CAP should be set up with the purpose of demonstrating the progress and assessing the impact and efficiency of policy implementation.

| (117) | The result orientation triggered by the delivery model requires a strong performance framework, particularly since CAP Strategic Plans would contribute to the achievement of broad general objectives for other policies under shared management. A performance-based policy implies annual and multi-annual assessment on the basis of selected outputs, result and impact indicators, as defined in the performance, monitoring and evaluation framework. To that end, a limited and targeted set of indicators should be selected in a way which reflects as closely as possible whether the supported intervention contributes to achieving the envisaged objectives. It should be possible for the indicators relating to the specific environmental and climate-related objectives to cover interventions which contribute to fulfilling the commitments emanating from the relevant Union legislative acts. |
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(117)

The result orientation triggered by the delivery model requires a strong performance framework, particularly since CAP Strategic Plans would contribute to the achievement of broad general objectives for other policies under shared management. A performance-based policy implies annual and multi-annual assessment on the basis of selected outputs, result and impact indicators, as defined in the performance, monitoring and evaluation framework. To that end, a limited and targeted set of indicators should be selected in a way which reflects as closely as possible whether the supported intervention contributes to achieving the envisaged objectives. It should be possible for the indicators relating to the specific environmental and climate-related objectives to cover interventions which contribute to fulfilling the commitments emanating from the relevant Union legislative acts.

| (118) | As part of the performance, monitoring and evaluation framework, Member States should monitor and report annually to the Commission on the progress made. The information provided by the Member States is the basis on which the Commission should report on the progress towards the achievement of specific objectives over the whole CAP Strategic Plan period, using for that purpose a core set of indicators. |
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(118)

As part of the performance, monitoring and evaluation framework, Member States should monitor and report annually to the Commission on the progress made. The information provided by the Member States is the basis on which the Commission should report on the progress towards the achievement of specific objectives over the whole CAP Strategic Plan period, using for that purpose a core set of indicators.

| (119) | Mechanisms should be put in place to take action to protect the Union’s financial interests in case the CAP Strategic Plan implementation deviates significantly from the targets set. It should therefore be possible for the Commission to ask Member States to submit action plans in the case of significant and non-justified underperformance. This could lead to suspensions and, ultimately, reductions of the Union funds if the planned results are not achieved. |
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(119)

Mechanisms should be put in place to take action to protect the Union’s financial interests in case the CAP Strategic Plan implementation deviates significantly from the targets set. It should therefore be possible for the Commission to ask Member States to submit action plans in the case of significant and non-justified underperformance. This could lead to suspensions and, ultimately, reductions of the Union funds if the planned results are not achieved.

| (120) | In accordance with the principle of shared management, Member States, where relevant ensuring the involvement of the regions in the design of the evaluation plan and in the monitoring and evaluation of the regional interventions of the CAP Strategic Plan, should be responsible for the evaluation of their CAP Strategic Plans, whereas the Commission should be responsible for the syntheses at Union level of the Member States’ ex-ante evaluations, and for carrying out the Union-level interim and ex-post evaluations. |
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(120)

In accordance with the principle of shared management, Member States, where relevant ensuring the involvement of the regions in the design of the evaluation plan and in the monitoring and evaluation of the regional interventions of the CAP Strategic Plan, should be responsible for the evaluation of their CAP Strategic Plans, whereas the Commission should be responsible for the syntheses at Union level of the Member States’ ex-ante evaluations, and for carrying out the Union-level interim and ex-post evaluations.

| (121) | In order to ensure a comprehensive and meaningful evaluation of the CAP at Union level, the Commission should rely on context and impact indicators. Those indicators should be primarily based on established data sources. The Commission and the Member States should cooperate to ensure and further improve the robustness of the data needed for the context and impact indicators. |
| --- | --- |

(121)

In order to ensure a comprehensive and meaningful evaluation of the CAP at Union level, the Commission should rely on context and impact indicators. Those indicators should be primarily based on established data sources. The Commission and the Member States should cooperate to ensure and further improve the robustness of the data needed for the context and impact indicators.

| (122) | When assessing the proposed CAP Strategic Plans, the Commission should assess the consistency and contribution of the proposed CAP Strategic Plans to the Union’s environmental and climate legislation and commitments and, in particular, to the Union targets for 2030 set out in the Commission communication of 20 May 2020 entitled ‘A Farm to Fork Strategy for a fair, healthy and environmentally-friendly food system’ (‘Farm to Fork Strategy’) and the Commission communication of 20 May 2020 entitled ‘EU Biodiversity Strategy for 2030: Bringing nature back into our lives’ (‘EU Biodiversity Strategy’). |
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(122)

When assessing the proposed CAP Strategic Plans, the Commission should assess the consistency and contribution of the proposed CAP Strategic Plans to the Union’s environmental and climate legislation and commitments and, in particular, to the Union targets for 2030 set out in the Commission communication of 20 May 2020 entitled ‘A Farm to Fork Strategy for a fair, healthy and environmentally-friendly food system’ (‘Farm to Fork Strategy’) and the Commission communication of 20 May 2020 entitled ‘EU Biodiversity Strategy for 2030: Bringing nature back into our lives’ (‘EU Biodiversity Strategy’).

| (123) | Member States should be required to show, through their CAP Strategic Plans, a greater overall ambition in comparison with the past in respect of the specific environmental and climate-related objectives of the CAP. Such ambition should be considered to consist of a range of elements related to, inter alia, impact indicators, targets set against result indicators, design of interventions, intended implementation of the system of conditionality, and financial planning. Member States should be required to explain in their CAP Strategic Plans how they are displaying the greater overall ambition required, with reference to the various relevant elements. That explanation should include national contributions to achieving the Union’s targets for 2030 set out in the Farm to Fork Strategy and the EU Biodiversity Strategy. |
| --- | --- |

(123)

Member States should be required to show, through their CAP Strategic Plans, a greater overall ambition in comparison with the past in respect of the specific environmental and climate-related objectives of the CAP. Such ambition should be considered to consist of a range of elements related to, inter alia, impact indicators, targets set against result indicators, design of interventions, intended implementation of the system of conditionality, and financial planning. Member States should be required to explain in their CAP Strategic Plans how they are displaying the greater overall ambition required, with reference to the various relevant elements. That explanation should include national contributions to achieving the Union’s targets for 2030 set out in the Farm to Fork Strategy and the EU Biodiversity Strategy.

| (124) | The Commission should draw up a summary report on Member States’ CAP Strategic Plans to assess the joint effort and collective ambition of Member States to address the specific objectives of the CAP at the beginning of the implementation period, taking into account the Union’s targets for 2030 set out in the Farm to Fork Strategy and the EU Biodiversity Strategy. |
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(124)

The Commission should draw up a summary report on Member States’ CAP Strategic Plans to assess the joint effort and collective ambition of Member States to address the specific objectives of the CAP at the beginning of the implementation period, taking into account the Union’s targets for 2030 set out in the Farm to Fork Strategy and the EU Biodiversity Strategy.

| (125) | The Commission should submit a report to the European Parliament and the Council in order to assess the operation of the new delivery model by the Member States and combined contribution of the interventions set out in Member States’ CAP Strategic Plans’ to achieving the environmental and climate-related commitments of the Union, in particular those emerging from the European Green Deal. |
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(125)

The Commission should submit a report to the European Parliament and the Council in order to assess the operation of the new delivery model by the Member States and combined contribution of the interventions set out in Member States’ CAP Strategic Plans’ to achieving the environmental and climate-related commitments of the Union, in particular those emerging from the European Green Deal.

| (126) | Articles 107, 108 and 109 TFEU should apply to the support for the types of intervention under this Regulation. Nevertheless, given the specific characteristics of the agricultural sector, those TFEU provisions should not apply to types of intervention in the form of direct payments and types of intervention for rural development concerning operations falling within the scope of Article 42 TFEU that are carried out under and in conformity with this Regulation, or to payments made by Member States intended to provide additional national financing for types of intervention for rural development for which Union support is granted and which fall within the scope of Article 42 TFEU. |
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(126)

Articles 107, 108 and 109 TFEU should apply to the support for the types of intervention under this Regulation. Nevertheless, given the specific characteristics of the agricultural sector, those TFEU provisions should not apply to types of intervention in the form of direct payments and types of intervention for rural development concerning operations falling within the scope of Article 42 TFEU that are carried out under and in conformity with this Regulation, or to payments made by Member States intended to provide additional national financing for types of intervention for rural development for which Union support is granted and which fall within the scope of Article 42 TFEU.

| (127) | In order to avoid a sudden and substantial decrease in support in certain sectors in Member States having granted transitional national aid in the period 2015-2022, those Member States should be allowed to continue to grant such aid under certain conditions and limitations. Taking into account the transitional nature of that aid, it is appropriate to continue its phasing out by gradually reducing, on an annual basis, the sector-specific financial envelopes for that aid. |
| --- | --- |

(127)

In order to avoid a sudden and substantial decrease in support in certain sectors in Member States having granted transitional national aid in the period 2015-2022, those Member States should be allowed to continue to grant such aid under certain conditions and limitations. Taking into account the transitional nature of that aid, it is appropriate to continue its phasing out by gradually reducing, on an annual basis, the sector-specific financial envelopes for that aid.

| (128) | Personal data collected for the purposes of the application of any provision enshrined in this Regulation should be processed in a way that is compatible with those purposes. They should also be made anonymous when processed for monitoring or evaluation purposes, and be protected in accordance with Union law concerning the protection of individuals with regard to the processing of personal data and on the free movement of such data, in particular Regulation (EU) 2016/679 of the European Parliament and of the Council (29) and Regulation (EU) 2018/1725 of the European Parliament and of the Council (30). Data subjects should be informed of such processing and of their data protection rights. |
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(128)

Personal data collected for the purposes of the application of any provision enshrined in this Regulation should be processed in a way that is compatible with those purposes. They should also be made anonymous when processed for monitoring or evaluation purposes, and be protected in accordance with Union law concerning the protection of individuals with regard to the processing of personal data and on the free movement of such data, in particular Regulation (EU) 2016/679 of the European Parliament and of the Council (29) and Regulation (EU) 2018/1725 of the European Parliament and of the Council (30). Data subjects should be informed of such processing and of their data protection rights.

| (129) | Notifications are needed from Member States for the purpose of applying this Regulation, and for the purpose of monitoring, analysing and managing financial entitlements. |
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(129)

Notifications are needed from Member States for the purpose of applying this Regulation, and for the purpose of monitoring, analysing and managing financial entitlements.

| (130) | In order to supplement or amend certain non-essential elements of this Regulation, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Inter institutional Agreement on Better Law-Making. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. |
| --- | --- |

(130)

In order to supplement or amend certain non-essential elements of this Regulation, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Inter institutional Agreement on Better Law-Making. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

| (131) | In order to ensure legal certainty, protect the rights of farmers and guarantee a level playing field between Member States as regards common requirements and indicators, the power to adopt certain acts should be delegated to the Commission in respect of the adaptation of common indicators related to output, result, impact and context to address technical problems with their implementation; and rules as regards the ratio for GAEC standard 1. |
| --- | --- |

(131)

In order to ensure legal certainty, protect the rights of farmers and guarantee a level playing field between Member States as regards common requirements and indicators, the power to adopt certain acts should be delegated to the Commission in respect of the adaptation of common indicators related to output, result, impact and context to address technical problems with their implementation; and rules as regards the ratio for GAEC standard 1.

| (132) | In order to ensure legal certainty, protect the rights of farmers and guarantee a smooth, coherent and efficient functioning of types of intervention in the form of direct payments, the power to adopt certain acts should be delegated to the Commission in respect of rules making the granting of payments conditional upon the use of certified seeds of certain hemp varieties and the procedure for the determination of hemp varieties and the verification of their tetrahydrocannabinol content; rules establishing a harmonised basis for the calculation of the reduction of payments in the framework of capping and degressivity; measures to avoid beneficiaries of coupled income support suffering from structural market imbalances in a sector, including the decision that such support may continue to be paid until 2027 on the basis of the production units for which it was granted in a past reference period; rules and conditions for the authorisation of land and varieties for the purposes of the crop-specific payment for cotton and rules on the conditions for the granting of that payment and on the eligibility requirements and agronomic practices relating thereto; rules in respect of criteria for the approval of interbranch organisations and rules governing the consequences where the approved interbranch organisation does not satisfy such criteria and obligations for producers. |
| --- | --- |

(132)

In order to ensure legal certainty, protect the rights of farmers and guarantee a smooth, coherent and efficient functioning of types of intervention in the form of direct payments, the power to adopt certain acts should be delegated to the Commission in respect of rules making the granting of payments conditional upon the use of certified seeds of certain hemp varieties and the procedure for the determination of hemp varieties and the verification of their tetrahydrocannabinol content; rules establishing a harmonised basis for the calculation of the reduction of payments in the framework of capping and degressivity; measures to avoid beneficiaries of coupled income support suffering from structural market imbalances in a sector, including the decision that such support may continue to be paid until 2027 on the basis of the production units for which it was granted in a past reference period; rules and conditions for the authorisation of land and varieties for the purposes of the crop-specific payment for cotton and rules on the conditions for the granting of that payment and on the eligibility requirements and agronomic practices relating thereto; rules in respect of criteria for the approval of interbranch organisations and rules governing the consequences where the approved interbranch organisation does not satisfy such criteria and obligations for producers.

| (133) | In order to ensure that types of intervention in certain sectors contribute to achieving the CAP objectives and reinforce synergies with other CAP instruments and in order to ensure a level playing field in the internal market and avoid unequal or unfair competition, the power to adopt certain acts should be delegated to the Commission in respect of rules for the proper functioning of types of intervention in certain sectors, the type of expenditure to be covered and in particular administrative and personnel costs, the basis for the calculation of Union financial assistance, including the reference periods and the calculation of the value of marketed production and of the degree of organisation of producers in certain regions, and the maximum level of Union financial assistance for certain interventions aiming to prevent market crisis and to manage risks in certain sectors; rules for the fixing of a ceiling for expenditure on the replanting of orchards, olive groves or vineyards; rules under which producers are to withdraw the by-products of winemaking, and on exceptions to that obligation in order to avoid additional administrative burden and rules for the voluntary certification of distillers, and rules for the different form of support and the minimum durability of supported investments in certain sectors as well as on the combination of funding for some interventions in the wine sector. In particular, in order to ensure the effective and efficient use of Union funds for interventions in the apiculture sector, the power to adopt certain acts should be delegated to the Commission in respect of additional requirements concerning the notification obligation and the establishment of a minimum Union contribution to the expenditure to implement those types of intervention. |
| --- | --- |

(133)

In order to ensure that types of intervention in certain sectors contribute to achieving the CAP objectives and reinforce synergies with other CAP instruments and in order to ensure a level playing field in the internal market and avoid unequal or unfair competition, the power to adopt certain acts should be delegated to the Commission in respect of rules for the proper functioning of types of intervention in certain sectors, the type of expenditure to be covered and in particular administrative and personnel costs, the basis for the calculation of Union financial assistance, including the reference periods and the calculation of the value of marketed production and of the degree of organisation of producers in certain regions, and the maximum level of Union financial assistance for certain interventions aiming to prevent market crisis and to manage risks in certain sectors; rules for the fixing of a ceiling for expenditure on the replanting of orchards, olive groves or vineyards; rules under which producers are to withdraw the by-products of winemaking, and on exceptions to that obligation in order to avoid additional administrative burden and rules for the voluntary certification of distillers, and rules for the different form of support and the minimum durability of supported investments in certain sectors as well as on the combination of funding for some interventions in the wine sector. In particular, in order to ensure the effective and efficient use of Union funds for interventions in the apiculture sector, the power to adopt certain acts should be delegated to the Commission in respect of additional requirements concerning the notification obligation and the establishment of a minimum Union contribution to the expenditure to implement those types of intervention.

| (134) | In order to ensure legal certainty and to guarantee that interventions for rural development achieve their objectives, the power to adopt certain acts should be delegated to the Commission in respect of support for management commitments concerning genetic resources and animal welfare and for quality schemes. |
| --- | --- |

(134)

In order to ensure legal certainty and to guarantee that interventions for rural development achieve their objectives, the power to adopt certain acts should be delegated to the Commission in respect of support for management commitments concerning genetic resources and animal welfare and for quality schemes.

| (135) | In order to take into account future changes in Member States’ financial allocations or to address problems experienced by Member States in the implementation of their CAP Strategic Plans, the power to adopt certain acts should be delegated to the Commission in respect of the Member States’ allocations for types of intervention in the form of direct payments, modifying weightings applied to support on the basis of its contribution to the achievement of climate change objectives, and rules on the content of the CAP Strategic Plan. |
| --- | --- |

(135)

In order to take into account future changes in Member States’ financial allocations or to address problems experienced by Member States in the implementation of their CAP Strategic Plans, the power to adopt certain acts should be delegated to the Commission in respect of the Member States’ allocations for types of intervention in the form of direct payments, modifying weightings applied to support on the basis of its contribution to the achievement of climate change objectives, and rules on the content of the CAP Strategic Plan.

| (136) | In order to facilitate the transition from the arrangements provided for in Regulations (EU) No 1305/2013 and (EU) No 1307/2013 to those laid down in this Regulation, the power to adopt certain acts should be delegated to the Commission in respect of measures to protect any acquired rights and legitimate expectations of beneficiaries. |
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(136)

In order to facilitate the transition from the arrangements provided for in Regulations (EU) No 1305/2013 and (EU) No 1307/2013 to those laid down in this Regulation, the power to adopt certain acts should be delegated to the Commission in respect of measures to protect any acquired rights and legitimate expectations of beneficiaries.

| (137) | In order to ensure uniform conditions for the implementation of this Regulation and to avoid unfair competition or discrimination between farmers, implementing powers should be conferred on the Commission as regards the fixing of reference areas for the support for oilseeds, rules for the authorisation of land and varieties for the purposes of the crop-specific payment for cotton and related notifications, the calculation of the reduction where the eligible area of cotton exceeds the base area, the Union financial assistance for distillation of by-products of winemaking, rules on the presentation of the elements to be included in the CAP Strategic Plan, uniform conditions for the application of the information and publicity requirements relating to the possibilities offered by the CAP Strategic Plans, setting out the organisational structure and operation of the European CAP network, rules relating to the performance, monitoring and evaluation framework, rules for the presentation of the content of the annual performance report, rules on the information to be sent by the Member States for the performance assessment by the Commission and rules on the data needs and synergies between potential data sources, and rules for the operation of a system for a secure exchange of data of common interest between the Commission and Member States. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council (31). |
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(137)

In order to ensure uniform conditions for the implementation of this Regulation and to avoid unfair competition or discrimination between farmers, implementing powers should be conferred on the Commission as regards the fixing of reference areas for the support for oilseeds, rules for the authorisation of land and varieties for the purposes of the crop-specific payment for cotton and related notifications, the calculation of the reduction where the eligible area of cotton exceeds the base area, the Union financial assistance for distillation of by-products of winemaking, rules on the presentation of the elements to be included in the CAP Strategic Plan, uniform conditions for the application of the information and publicity requirements relating to the possibilities offered by the CAP Strategic Plans, setting out the organisational structure and operation of the European CAP network, rules relating to the performance, monitoring and evaluation framework, rules for the presentation of the content of the annual performance report, rules on the information to be sent by the Member States for the performance assessment by the Commission and rules on the data needs and synergies between potential data sources, and rules for the operation of a system for a secure exchange of data of common interest between the Commission and Member States. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council (31).

| (138) | In the light of the fact that indicators are already laid down in Annex I for the purpose of monitoring, evaluation and the annual performance reporting, the adoption of other indicators for the monitoring and evaluation of the CAP should be submitted to additional scrutiny by Member States. Equally, the additional information that Members States are required to provide to the Commission for the monitoring and evaluation of the CAP should be subject to a positive opinion of the Common Agricultural Policy Committee. The Commission should therefore not be allowed to lay down an obligation for Member States to provide additional indicators and information on CAP implementation for the monitoring and evaluation of the CAP if the Common Agricultural Policy Committee does not find a qualified majority for or against the Commission proposal and therefore cannot express any opinion. |
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(138)

In the light of the fact that indicators are already laid down in Annex I for the purpose of monitoring, evaluation and the annual performance reporting, the adoption of other indicators for the monitoring and evaluation of the CAP should be submitted to additional scrutiny by Member States. Equally, the additional information that Members States are required to provide to the Commission for the monitoring and evaluation of the CAP should be subject to a positive opinion of the Common Agricultural Policy Committee. The Commission should therefore not be allowed to lay down an obligation for Member States to provide additional indicators and information on CAP implementation for the monitoring and evaluation of the CAP if the Common Agricultural Policy Committee does not find a qualified majority for or against the Commission proposal and therefore cannot express any opinion.

| (139) | In order to ensure uniform conditions for the implementation of this Regulation, the implementing powers should be conferred on the Commission to adopt implementing acts without applying Regulation (EU) No 182/2011 approving the CAP Strategic Plans and the amendments thereof. |
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(139)

In order to ensure uniform conditions for the implementation of this Regulation, the implementing powers should be conferred on the Commission to adopt implementing acts without applying Regulation (EU) No 182/2011 approving the CAP Strategic Plans and the amendments thereof.

| (140) | The Commission should adopt immediately applicable implementing acts where, in duly justified cases relating to solving specific problems while ensuring the continuity of the direct payments system in the case of extraordinary circumstances, imperative grounds of urgency so require. Moreover, in order to solve urgent problems occurring in one or more Member States while ensuring the continuity of the direct payments system, the Commission should adopt immediately applicable implementing acts where, in duly justified cases, extraordinary circumstances affect the granting of support and jeopardise the effective implementation of the payments under the support schemes listed in this Regulation. |
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(140)

The Commission should adopt immediately applicable implementing acts where, in duly justified cases relating to solving specific problems while ensuring the continuity of the direct payments system in the case of extraordinary circumstances, imperative grounds of urgency so require. Moreover, in order to solve urgent problems occurring in one or more Member States while ensuring the continuity of the direct payments system, the Commission should adopt immediately applicable implementing acts where, in duly justified cases, extraordinary circumstances affect the granting of support and jeopardise the effective implementation of the payments under the support schemes listed in this Regulation.

| (141) | Regulation (EU) No 228/2013 of the European Parliament and of the Council (32) and Regulation (EU) No 229/2013 of the European Parliament and of the Council (33) should remain outside the scope of this Regulation, except where some of their provisions are explicitly referred to. |
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(141)

Regulation (EU) No 228/2013 of the European Parliament and of the Council (32) and Regulation (EU) No 229/2013 of the European Parliament and of the Council (33) should remain outside the scope of this Regulation, except where some of their provisions are explicitly referred to.

| (142) | Since the objectives of this Regulation cannot be sufficiently achieved by the Member States but can rather, by reason of the disparities between the various rural areas and the limited financial resources of the Member States, be better achieved at Union level through the multiannual guarantee of Union financing and by concentrating on clearly identified priorities, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives. |
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(142)

Since the objectives of this Regulation cannot be sufficiently achieved by the Member States but can rather, by reason of the disparities between the various rural areas and the limited financial resources of the Member States, be better achieved at Union level through the multiannual guarantee of Union financing and by concentrating on clearly identified priorities, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives.

| (143) | Regulations (EU) No 1305/2013 and (EU) No 1307/2013 should therefore be repealed. |
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(143)

Regulations (EU) No 1305/2013 and (EU) No 1307/2013 should therefore be repealed.

| (144) | In order to ensure the smooth implementation of the measures envisaged and as a matter of urgency, this Regulation should enter into force on the day following that of its publication in the Official Journal of the European Union, |
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(144)

In order to ensure the smooth implementation of the measures envisaged and as a matter of urgency, this Regulation should enter into force on the day following that of its publication in the Official Journal of the European Union,

HAVE ADOPTED THIS REGULATION:

TITLE I

SUBJECT MATTER AND SCOPE, APPLICABLE PROVISIONS AND DEFINITIONS

Article 1

Subject matter and scope

1.   This Regulation lays down rules on:

| (a) | general and specific objectives to be pursued through Union support financed by the European Agricultural Guarantee Fund (EAGF) and by the European Agricultural Fund for Rural Development (EAFRD) under the common agricultural policy (CAP) as well as the related indicators; |
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(a)

general and specific objectives to be pursued through Union support financed by the European Agricultural Guarantee Fund (EAGF) and by the European Agricultural Fund for Rural Development (EAFRD) under the common agricultural policy (CAP) as well as the related indicators;

| (b) | types of intervention and common requirements for Member States to pursue those objectives as well as the related financial arrangements; |
| --- | --- |

(b)

types of intervention and common requirements for Member States to pursue those objectives as well as the related financial arrangements;

| (c) | CAP Strategic Plans, which are to be drawn up by Member States and which set targets, specify conditions for interventions and allocate financial resources, according to the specific objectives and identified needs; |
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(c)

CAP Strategic Plans, which are to be drawn up by Member States and which set targets, specify conditions for interventions and allocate financial resources, according to the specific objectives and identified needs;

| (d) | coordination and governance as well as monitoring, reporting and evaluation. |
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(d)

coordination and governance as well as monitoring, reporting and evaluation.

2.   This Regulation applies to Union support financed by the EAGF and the EAFRD for interventions specified in a CAP Strategic Plan drawn up by a Member State and approved by the Commission, covering the period from 1 January 2023 to 31 December 2027 (‘the CAP Strategic Plan period’).

Article 2

Applicable provisions

1.   Regulation (EU) 2021/2116 and the provisions adopted pursuant to that Regulation apply to support provided under this Regulation.

2.   Article 19, Chapter II of Title III with the exception of Article 28, first subparagraph, point (c), and Articles 46 and 48 of Regulation (EU) 2021/1060 apply to support financed by the EAFRD under this Regulation.

Article 3

Definitions

For the purposes of this Regulation, the following definitions apply:

| (1) | ‘farmer’ means a natural or legal person, or a group of natural or legal persons, regardless of the legal status granted to such group and its members by national law, whose holding is situated within the territorial scope of the Treaties, as defined in Article 52 of the Treaty on European Union in conjunction with Articles 349 and 355 of the Treaty on the Functioning of the European Union (TFEU), and who exercises an agricultural activity as determined by Member States in accordance with Article 4(2) of this Regulation; |
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(1)

‘farmer’ means a natural or legal person, or a group of natural or legal persons, regardless of the legal status granted to such group and its members by national law, whose holding is situated within the territorial scope of the Treaties, as defined in Article 52 of the Treaty on European Union in conjunction with Articles 349 and 355 of the Treaty on the Functioning of the European Union (TFEU), and who exercises an agricultural activity as determined by Member States in accordance with Article 4(2) of this Regulation;

| (2) | ‘holding’ means all the units used for agricultural activities and managed by a farmer situated within the territory of the same Member State; |
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(2)

‘holding’ means all the units used for agricultural activities and managed by a farmer situated within the territory of the same Member State;

| (3) | ‘intervention’ means a support instrument with a set of eligibility conditions specified by a Member State in its CAP Strategic Plan based on a type of intervention provided for in this Regulation; |
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(3)

‘intervention’ means a support instrument with a set of eligibility conditions specified by a Member State in its CAP Strategic Plan based on a type of intervention provided for in this Regulation;

| (4) | ‘operation’ means:






  (a) | a project, contract, action or group of projects or actions selected under the CAP Strategic Plan concerned; |
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(4)

‘operation’ means:

(a)

a project, contract, action or group of projects or actions selected under the CAP Strategic Plan concerned;

| (b) | in the context of financial instruments, the total eligible public expenditure granted to a financial instrument and the subsequent financial support provided to final recipients by that financial instrument; |
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(b)

in the context of financial instruments, the total eligible public expenditure granted to a financial instrument and the subsequent financial support provided to final recipients by that financial instrument;

| (5) | ‘public expenditure’ means any contribution to the financing of operations the source of which is the budget of national, regional or local public authorities, the budget of the Union made available to the EAGF and the EAFRD, the budget of public law bodies or the budget of associations of public authorities or of public law bodies; |
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(5)

‘public expenditure’ means any contribution to the financing of operations the source of which is the budget of national, regional or local public authorities, the budget of the Union made available to the EAGF and the EAFRD, the budget of public law bodies or the budget of associations of public authorities or of public law bodies;

| (6) | ‘milestones’ means intermediate pre-established values, set by Member States in the framework of their intervention strategies referred to in Article 107(1), point (b), for a specific financial year to be achieved at a given point in time during the CAP Strategic Plan period to ensure timely progress in relation to the result indicators; |
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(6)

‘milestones’ means intermediate pre-established values, set by Member States in the framework of their intervention strategies referred to in Article 107(1), point (b), for a specific financial year to be achieved at a given point in time during the CAP Strategic Plan period to ensure timely progress in relation to the result indicators;

| (7) | ‘targets’ means pre-established values, set by Member States in the framework of their intervention strategies referred to in Article 107(1), point (b), to be achieved at the end of the CAP Strategic Plan period in relation to the result indicators; |
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(7)

‘targets’ means pre-established values, set by Member States in the framework of their intervention strategies referred to in Article 107(1), point (b), to be achieved at the end of the CAP Strategic Plan period in relation to the result indicators;

| (8) | ‘outermost regions’ means the outermost regions referred to in Article 349 TFEU; |
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(8)

‘outermost regions’ means the outermost regions referred to in Article 349 TFEU;

| (9) | ‘AKIS’ means the combined organisation and knowledge flows between persons, organisations and institutions who use and produce knowledge for agriculture and interrelated fields (Agricultural Knowledge and Innovation System); |
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(9)

‘AKIS’ means the combined organisation and knowledge flows between persons, organisations and institutions who use and produce knowledge for agriculture and interrelated fields (Agricultural Knowledge and Innovation System);

| (10) | ‘smaller Aegean islands’ means smaller Aegean islands as defined in Article 1(2) of Regulation (EU) No 229/2013; |
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(10)

‘smaller Aegean islands’ means smaller Aegean islands as defined in Article 1(2) of Regulation (EU) No 229/2013;

| (11) | ‘mutual fund’ means a scheme accredited by a Member State in accordance with its national law for affiliated farmers to insure themselves, whereby compensation payments are made to affiliated farmers who experience economic losses; |
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(11)

‘mutual fund’ means a scheme accredited by a Member State in accordance with its national law for affiliated farmers to insure themselves, whereby compensation payments are made to affiliated farmers who experience economic losses;

| (12) | ‘less developed regions’ means less developed regions within the meaning of Article 108(2), first subparagraph, point (a), of Regulation (EU) 2021/1060; |
| --- | --- |

(12)

‘less developed regions’ means less developed regions within the meaning of Article 108(2), first subparagraph, point (a), of Regulation (EU) 2021/1060;

| (13) | ‘beneficiary’ in relation to the types of intervention for rural development referred to in Article 69 means:






  (a) | a public or private law body, an entity with or without legal personality, a natural person or a group of natural or legal persons responsible for initiating or both initiating and implementing operations; |
| --- | --- | --- |

(13)

‘beneficiary’ in relation to the types of intervention for rural development referred to in Article 69 means:

(a)

a public or private law body, an entity with or without legal personality, a natural person or a group of natural or legal persons responsible for initiating or both initiating and implementing operations;

| (b) | in the context of State aid schemes, the undertaking which receives the aid; |
| --- | --- |

(b)

in the context of State aid schemes, the undertaking which receives the aid;

| (c) | in the context of financial instruments, the body that implements the holding fund or, where there is no holding fund structure, the body that implements the specific fund or, where the managing authority referred to in Article 123 (‘the managing authority’) manages the financial instrument, the managing authority; |
| --- | --- |

(c)

in the context of financial instruments, the body that implements the holding fund or, where there is no holding fund structure, the body that implements the specific fund or, where the managing authority referred to in Article 123 (‘the managing authority’) manages the financial instrument, the managing authority;

| (14) | ‘support rate’ means the rate of public expenditure to an operation; in the context of financial instruments it refers to the gross grant equivalent of the support as defined in Article 2, point (20), of Commission Regulation (EU) No 702/2014 (34); |
| --- | --- |

(14)

‘support rate’ means the rate of public expenditure to an operation; in the context of financial instruments it refers to the gross grant equivalent of the support as defined in Article 2, point (20), of Commission Regulation (EU) No 702/2014 (34);

34

| (15) | ‘LEADER’ means community-led local development referred to in Article 31 of Regulation (EU) 2021/1060; |
| --- | --- |

(15)

‘LEADER’ means community-led local development referred to in Article 31 of Regulation (EU) 2021/1060;

| (16) | ‘intermediate body’ means any public or private law body, including regional or local bodies, regional development bodies or non-governmental organisations, which acts under the responsibility of a national or regional managing authority, or which carries out duties on behalf of such an authority; |
| --- | --- |

(16)

‘intermediate body’ means any public or private law body, including regional or local bodies, regional development bodies or non-governmental organisations, which acts under the responsibility of a national or regional managing authority, or which carries out duties on behalf of such an authority;

| (17) | ‘financial year’ means agricultural financial year in accordance with Article 35 of Regulation (EU) 2021/2116. |
| --- | --- |

(17)

‘financial year’ means agricultural financial year in accordance with Article 35 of Regulation (EU) 2021/2116.

Article 4

Definitions and conditions to be provided in the CAP Strategic Plans

1.   Member States shall provide in their CAP Strategic Plans the definitions of ‘agricultural activity’, ‘agricultural area’, ‘eligible hectare’, ‘active farmer’, ‘young farmer’ and ‘new farmer’, as well as the relevant conditions in accordance with this Article.

2.   
  ‘Agricultural activity’ shall be determined in such a way that it allows to contribute to the provision of private and public goods through one or both of the following:

| (a) | the production of agricultural products, which includes actions such as raising animals or cultivation including by way of paludiculture, where agricultural products means products listed in Annex I to the TFEU with the exception of fishery products, as well as cotton and short rotation coppice; |
| --- | --- |

(a)

the production of agricultural products, which includes actions such as raising animals or cultivation including by way of paludiculture, where agricultural products means products listed in Annex I to the TFEU with the exception of fishery products, as well as cotton and short rotation coppice;

| (b) | the maintenance of the agricultural area in a state which makes it suitable for grazing or cultivation, without preparatory action going beyond the use of usual agricultural methods and machinery. |
| --- | --- |

(b)

the maintenance of the agricultural area in a state which makes it suitable for grazing or cultivation, without preparatory action going beyond the use of usual agricultural methods and machinery.

3.   
  ‘Agricultural area’ shall be determined in such a way as to comprise arable land, permanent crops and permanent grassland, including when they form agroforestry systems on that area. The terms ‘arable land’, ‘permanent crops’ and ‘permanent grassland’ shall be further specified by Member States within the following framework:

| (a) | ‘arable land’ shall be land cultivated for crop production or areas available for crop production but lying fallow; in addition, it shall, for the duration of the commitment, be land cultivated for crop production or areas available for crop production but lying fallow that have been set aside in accordance with Article 31 or Article 70 or GAEC standard 8 listed in Annex III to this Regulation, or with Articles 22, 23 or 24 of Council Regulation (EC) No 1257/1999 (35), or with Article 39 of Council Regulation (EC) No 1698/2005 (36), or with Article 28 of Regulation (EU) No 1305/2013 of the European Parliament and of the Council (37); |
| --- | --- |

(a)

‘arable land’ shall be land cultivated for crop production or areas available for crop production but lying fallow; in addition, it shall, for the duration of the commitment, be land cultivated for crop production or areas available for crop production but lying fallow that have been set aside in accordance with Article 31 or Article 70 or GAEC standard 8 listed in Annex III to this Regulation, or with Articles 22, 23 or 24 of Council Regulation (EC) No 1257/1999 (35), or with Article 39 of Council Regulation (EC) No 1698/2005 (36), or with Article 28 of Regulation (EU) No 1305/2013 of the European Parliament and of the Council (37);

| (b) | ‘permanent crops’ shall be non-rotational crops other than permanent grassland and permanent pasture that occupy the land for five years or more and that yield repeated harvests, including nurseries and short rotation coppice; |
| --- | --- |

(b)

‘permanent crops’ shall be non-rotational crops other than permanent grassland and permanent pasture that occupy the land for five years or more and that yield repeated harvests, including nurseries and short rotation coppice;

| (c) | ‘permanent grassland and permanent pasture’ (together referred to as ‘permanent grassland’) shall be land that is used to grow grasses or other herbaceous forage naturally (self-seeded) or through cultivation (sown) and that has not been included in the crop rotation of the holding for five years or more and, where Member States so decide, that has not been ploughed up, or tilled, or reseeded with different types of grass or other herbaceous forage, for five years or more. It may include other species, such as shrubs or trees, which can be grazed and, where Member States so decide, other species such as shrubs or trees which produce animal feed, provided that the grasses and other herbaceous forage remain predominant.
  Member States may also decide to consider the following types of land to be permanent grassland:






  (i) | land which is covered by any of the species referred to in this point and which forms part of established local practices, where grasses and other herbaceous forage are traditionally not predominant or absent in grazing areas; |
| --- | --- | --- |

(c)

‘permanent grassland and permanent pasture’ (together referred to as ‘permanent grassland’) shall be land that is used to grow grasses or other herbaceous forage naturally (self-seeded) or through cultivation (sown) and that has not been included in the crop rotation of the holding for five years or more and, where Member States so decide, that has not been ploughed up, or tilled, or reseeded with different types of grass or other herbaceous forage, for five years or more. It may include other species, such as shrubs or trees, which can be grazed and, where Member States so decide, other species such as shrubs or trees which produce animal feed, provided that the grasses and other herbaceous forage remain predominant.

Member States may also decide to consider the following types of land to be permanent grassland:

(i)

land which is covered by any of the species referred to in this point and which forms part of established local practices, where grasses and other herbaceous forage are traditionally not predominant or absent in grazing areas;

| (ii) | land covered by any of the species referred to in this point, where grasses and other herbaceous forage are not predominant or are absent in grazing areas. |
| --- | --- |

(ii)

land covered by any of the species referred to in this point, where grasses and other herbaceous forage are not predominant or are absent in grazing areas.

4.   For the purpose of types of intervention in the form of direct payments, ‘eligible hectare’ shall be determined in such a way that it covers areas which are at the farmer’s disposal and which consist of:

| (a) | any agricultural area of the holding that, during the year for which support is requested, is used for an agricultural activity or, where the area is also used for non-agricultural activities, is predominantly used for agricultural activities; where duly justified for environmental, biodiversity and climate-related reasons, Member States may decide that eligible hectares also include certain areas used for agricultural activities only every second year; |
| --- | --- |

(a)

any agricultural area of the holding that, during the year for which support is requested, is used for an agricultural activity or, where the area is also used for non-agricultural activities, is predominantly used for agricultural activities; where duly justified for environmental, biodiversity and climate-related reasons, Member States may decide that eligible hectares also include certain areas used for agricultural activities only every second year;

| (b) | any area of the holding which is:






  (i) | covered by landscape features subject to the retention obligation under GAEC standard 8 listed in Annex III; |
| --- | --- | --- |

(b)

any area of the holding which is:

(i)

covered by landscape features subject to the retention obligation under GAEC standard 8 listed in Annex III;

| (ii) | used to attain the minimum share of arable land devoted to non-productive areas and features, including land lying fallow, under GAEC standard 8 listed in Annex III; or |
| --- | --- |

(ii)

used to attain the minimum share of arable land devoted to non-productive areas and features, including land lying fallow, under GAEC standard 8 listed in Annex III; or

| (iii) | for the duration of the relevant commitment by the farmer, established or maintained as a result of an eco-scheme referred to in Article 31. |
| --- | --- |

(iii)

for the duration of the relevant commitment by the farmer, established or maintained as a result of an eco-scheme referred to in Article 31.

If Member States so decide, ‘eligible hectare’ may contain other landscape features, provided they are not predominant and do not significantly hamper the performance of the agricultural activity due to the area they occupy on the agricultural parcel. In implementing that principle, Member States may set a maximum share of the agricultural parcel covered by those other landscape features.

As regards permanent grassland with scattered ineligible features, Member States may decide to apply fixed reduction coefficients to determine the area considered eligible;

| (c) | any area of the holding that gave a right to payments under Title III, Chapter II, Section 2, Subsection 2, of this Regulation or under the basic payment scheme or the single area payment scheme laid down in Title III of Regulation (EU) No 1307/2013, and which is not an ‘eligible hectare’ as determined by Member States on the basis of points (a) and (b) of this paragraph:






  (i) | as a result of the application of Directive 92/43/EEC, 2009/147/EC or 2000/60/EC to that area; |
| --- | --- | --- |

(c)

any area of the holding that gave a right to payments under Title III, Chapter II, Section 2, Subsection 2, of this Regulation or under the basic payment scheme or the single area payment scheme laid down in Title III of Regulation (EU) No 1307/2013, and which is not an ‘eligible hectare’ as determined by Member States on the basis of points (a) and (b) of this paragraph:

(i)

as a result of the application of Directive 92/43/EEC, 2009/147/EC or 2000/60/EC to that area;

| (ii) | as a result of area-based interventions set out under this Regulation covered by the integrated system referred to in Article 65(1) of Regulation (EU) 2021/2116 allowing for the production of products not listed in Annex I TFEU by way of paludiculture, or under national schemes for biodiversity or greenhouse gas reductions the conditions of which comply with those area-based interventions, provided that those interventions and national schemes contribute to achieving one or more specific objectives set out in Article 6(1), points (d), (e) and (f), of this Regulation; |
| --- | --- |

(ii)

as a result of area-based interventions set out under this Regulation covered by the integrated system referred to in Article 65(1) of Regulation (EU) 2021/2116 allowing for the production of products not listed in Annex I TFEU by way of paludiculture, or under national schemes for biodiversity or greenhouse gas reductions the conditions of which comply with those area-based interventions, provided that those interventions and national schemes contribute to achieving one or more specific objectives set out in Article 6(1), points (d), (e) and (f), of this Regulation;

| (iii) | for the duration of an afforestation commitment by the farmer, pursuant to Article 31 of Regulation (EC) No 1257/1999 or to Article 43 of Regulation (EC) No 1698/2005 or to Article 22 of Regulation (EU) No 1305/2013 or to Article 70 or Article 73 of this Regulation, or under a national scheme the conditions of which comply with Article 43(1), (2) and (3) of Regulation (EC) No 1698/2005 or Article 22 of Regulation (EU) No 1305/2013 or Article 70 or Article 73 of this Regulation; |
| --- | --- |

(iii)

for the duration of an afforestation commitment by the farmer, pursuant to Article 31 of Regulation (EC) No 1257/1999 or to Article 43 of Regulation (EC) No 1698/2005 or to Article 22 of Regulation (EU) No 1305/2013 or to Article 70 or Article 73 of this Regulation, or under a national scheme the conditions of which comply with Article 43(1), (2) and (3) of Regulation (EC) No 1698/2005 or Article 22 of Regulation (EU) No 1305/2013 or Article 70 or Article 73 of this Regulation;

| (iv) | for the duration of a commitment by the farmer resulting in the setting aside of the area, pursuant to Articles 22, 23 and 24 of Regulation (EC) No 1257/1999, to Article 39 of Regulation (EC) No 1698/2005, to Article 28 of Regulation (EU) No 1305/2013 or to Article 70 of this Regulation. |
| --- | --- |

(iv)

for the duration of a commitment by the farmer resulting in the setting aside of the area, pursuant to Articles 22, 23 and 24 of Regulation (EC) No 1257/1999, to Article 39 of Regulation (EC) No 1698/2005, to Article 28 of Regulation (EU) No 1305/2013 or to Article 70 of this Regulation.

Areas used for the production of hemp shall be eligible hectares only if the varieties used have a tetrahydrocannabinol content not exceeding 0,3 %.

5.   ‘Active farmer’ shall be determined in such a way as to ensure that support is granted only to natural or legal persons, or to groups of natural or legal persons, engaged in at least a minimum level of agricultural activity, while not necessarily precluding the granting of support to pluri-active or part-time farmers.

When determining who is an ‘active farmer’, Member States shall apply objective and non-discriminatory criteria, such as income tests, labour inputs on the farm, company object and inclusion of their agricultural activities in national or regional registers. Such criteria may be introduced in one or more forms chosen by Member States, including through a negative list disqualifying a farmer from being considered to be an active farmer. If a Member State considers to be ‘active farmers’ those farmers who did not receive direct payments exceeding a certain amount for the previous year, such an amount shall not be higher than EUR 5 000.

6.   
  ‘Young farmer’ shall be determined in such a way as to include:

| (a) | an upper age limit set between 35 years and 40 years; |
| --- | --- |

(a)

an upper age limit set between 35 years and 40 years;

| (b) | the conditions for being ‘head of the holding’; |
| --- | --- |

(b)

the conditions for being ‘head of the holding’;

| (c) | the appropriate training or skills required, as determined by Member States. |
| --- | --- |

(c)

the appropriate training or skills required, as determined by Member States.

7.   ‘New farmer’ shall be determined in such a way as to refer to a farmer other than a young farmer and who is ‘head of the holding’ for the first time. Member States shall include further objective and non-discriminatory requirements concerning appropriate training and skills.

8.   The Commission is empowered to adopt delegated acts in accordance with Article 152 supplementing this Regulation with rules making the granting of payments conditional upon the use of certified seeds of certain hemp varieties and the procedure for the determination of hemp varieties, as well as the verification of their tetrahydrocannabinol content referred to in paragraph 4, second subparagraph, of this Article, to preserve public health.

TITLE II

OBJECTIVES AND INDICATORS

Article 5

General objectives

In accordance with the objectives of the CAP set out in Article 39 TFEU, with the objective to maintain the functioning of the internal market and a level playing field between farmers in the Union and with the principle of subsidiarity, support from the EAGF and the EAFRD shall aim to further improve the sustainable development of farming, food and rural areas and shall contribute to achieving the following general objectives in the economic, environmental and social spheres, which will contribute to the implementation of the 2030 Agenda for Sustainable Development:

| (a) | to foster a smart, competitive, resilient and diversified agricultural sector ensuring long-term food security; |
| --- | --- |

(a)

to foster a smart, competitive, resilient and diversified agricultural sector ensuring long-term food security;

| (b) | to support and strengthen environmental protection, including biodiversity, and climate action and to contribute to achieving the environmental and climate-related objectives of the Union, including its commitments under the Paris Agreement; |
| --- | --- |

(b)

to support and strengthen environmental protection, including biodiversity, and climate action and to contribute to achieving the environmental and climate-related objectives of the Union, including its commitments under the Paris Agreement;

| (c) | to strengthen the socio-economic fabric of rural areas. |
| --- | --- |

(c)

to strengthen the socio-economic fabric of rural areas.

Article 6

Specific objectives

1.   The achievement of the general objectives shall be pursued through the following specific objectives:

| (a) | to support viable farm income and resilience of the agricultural sector across the Union in order to enhance long-term food security and agricultural diversity as well as to ensure the economic sustainability of agricultural production in the Union; |
| --- | --- |

(a)

to support viable farm income and resilience of the agricultural sector across the Union in order to enhance long-term food security and agricultural diversity as well as to ensure the economic sustainability of agricultural production in the Union;

| (b) | to enhance market orientation and increase farm competitiveness both in the short and long term, including greater focus on research, technology and digitalisation; |
| --- | --- |

(b)

to enhance market orientation and increase farm competitiveness both in the short and long term, including greater focus on research, technology and digitalisation;

| (c) | to improve the farmers’ position in the value chain; |
| --- | --- |

(c)

to improve the farmers’ position in the value chain;

| (d) | to contribute to climate change mitigation and adaptation, including by reducing greenhouse gas emissions and enhancing carbon sequestration, as well as to promote sustainable energy; |
| --- | --- |

(d)

to contribute to climate change mitigation and adaptation, including by reducing greenhouse gas emissions and enhancing carbon sequestration, as well as to promote sustainable energy;

| (e) | to foster sustainable development and efficient management of natural resources such as water, soil and air, including by reducing chemical dependency; |
| --- | --- |

(e)

to foster sustainable development and efficient management of natural resources such as water, soil and air, including by reducing chemical dependency;

| (f) | to contribute to halting and reversing biodiversity loss, enhance ecosystem services and preserve habitats and landscapes; |
| --- | --- |

(f)

to contribute to halting and reversing biodiversity loss, enhance ecosystem services and preserve habitats and landscapes;

| (g) | to attract and sustain young farmers and new farmers and facilitate sustainable business development in rural areas; |
| --- | --- |

(g)

to attract and sustain young farmers and new farmers and facilitate sustainable business development in rural areas;

| (h) | to promote employment, growth, gender equality, including the participation of women in farming, social inclusion and local development in rural areas, including the circular bio-economy and sustainable forestry; |
| --- | --- |

(h)

to promote employment, growth, gender equality, including the participation of women in farming, social inclusion and local development in rural areas, including the circular bio-economy and sustainable forestry;

| (i) | to improve the response of Union agriculture to societal demands on food and health, including high-quality, safe and nutritious food produced in a sustainable way, to reduce food waste, as well as to improve animal welfare and to combat antimicrobial resistance. |
| --- | --- |

(i)

to improve the response of Union agriculture to societal demands on food and health, including high-quality, safe and nutritious food produced in a sustainable way, to reduce food waste, as well as to improve animal welfare and to combat antimicrobial resistance.

2.   The objectives set out in paragraph 1 shall be complemented and interconnected with the cross-cutting objective of modernising agriculture and rural areas by fostering and sharing of knowledge, innovation and digitalisation in agriculture and rural areas and by encouraging their uptake by farmers, through improved access to research, innovation, knowledge exchange and training.

3.   When pursuing the specific objectives set out in paragraphs 1 and 2, Member States, with the support of the Commission, shall take appropriate measures to reduce the administrative burden and ensure simplification in the implementation of the CAP.

Article 7

Indicators

1.   Achievement of the objectives referred to in Articles 5 and Article 6(1) and (2) shall be assessed on the basis of common indicators related to output, result, impact and context as set out in Annex I. Those common indicators shall include:

| (a) | output indicators relating to the realised output of the interventions supported; |
| --- | --- |

(a)

output indicators relating to the realised output of the interventions supported;

| (b) | result indicators relating to the specific objectives concerned referred to in Article 6(1) and (2), and which are used for the establishment of quantified milestones and targets in relation to those specific objectives in the CAP Strategic Plans and for assessing progress towards those targets; result indicators relating to environmental and climate-related objectives may cover interventions which contribute to the fulfilment of the commitments emanating from the Union legislative acts listed in Annex XIII; |
| --- | --- |

(b)

result indicators relating to the specific objectives concerned referred to in Article 6(1) and (2), and which are used for the establishment of quantified milestones and targets in relation to those specific objectives in the CAP Strategic Plans and for assessing progress towards those targets; result indicators relating to environmental and climate-related objectives may cover interventions which contribute to the fulfilment of the commitments emanating from the Union legislative acts listed in Annex XIII;

| (c) | impact indicators related to the objectives set out in Article 5 and Article 6(1) and (2) and used in the context of the CAP Strategic Plans and of the CAP; |
| --- | --- |

(c)

impact indicators related to the objectives set out in Article 5 and Article 6(1) and (2) and used in the context of the CAP Strategic Plans and of the CAP;

| (d) | context indicators referred to in Article 115(2) and listed in Annex I. |
| --- | --- |

(d)

context indicators referred to in Article 115(2) and listed in Annex I.

2.   The Commission is empowered to adopt delegated acts in accordance with Article 152 amending Annex I to adapt the common output, result, impact and context indicators. Those delegated acts shall be strictly limited to addressing technical problems experienced by Member States regarding the application of those indicators.

TITLE III

COMMON REQUIREMENTS AND TYPES OF INTERVENTION

CHAPTER I

COMMON REQUIREMENTS

Section 1

General principles

Article 8

Strategic approach

Member States shall pursue the objectives set out in Title II by specifying interventions on the basis of the types of intervention set out in Chapters II, III and IV of this Title in accordance with their assessment of needs and with the common requirements set out in this Chapter.

Article 9

General principles

Member States shall design the interventions of their CAP Strategic Plans and GAEC standards referred to in Article 13 in accordance with the Charter of Fundamental Rights of the European Union and the general principles of Union law.

Member States shall ensure that interventions and GAEC standards referred to in Article 13 are set out on the basis of objective and non-discriminatory criteria, are compatible with the proper functioning of the internal market and do not distort competition.

Member States shall establish the legal framework governing the granting of Union support to farmers and other beneficiaries in accordance with the CAP Strategic Plans as approved by the Commission in accordance with Articles 118 and 119 of this Regulation and with the principles and requirements set out in this Regulation and in Regulation (EU) 2021/2116. They shall implement those CAP Strategic Plans as approved by the Commission.

Article 10

WTO domestic support

Member States shall design the interventions on the basis of the types of intervention which are listed in Annex II to this Regulation, including the definitions and conditions set out in Article 4, in such a way that they qualify under the criteria of Annex 2 to the WTO Agreement on Agriculture.

In particular, the basic income support for sustainability, the complementary redistributive income support for sustainability, the complementary income support for young farmers and the schemes for the climate, the environment and animal welfare shall qualify under the criteria of the paragraphs of Annex 2 to the WTO Agreement on Agriculture indicated in Annex II to this Regulation for those interventions. For other interventions, the paragraphs of Annex 2 to the WTO Agreement on Agriculture indicated in Annex II to this Regulation are indicative and those interventions may instead comply with a different paragraph of Annex 2 to the WTO Agreement on Agriculture if that is specified and explained in the CAP Strategic Plan.

Article 11

Implementation of the Memorandum of Understanding on oilseeds

1.   Where Member States provide for area-based interventions, other than those which comply with the provisions of Annex 2 to the WTO Agreement on Agriculture, including coupled income support under Title III, Chapter II, Section 3, Subsection 1, of this Regulation, and where those interventions concern some or all of the oilseeds referred to in the Annex to the Memorandum of Understanding between the European Economic Community and the United States of America on oil seeds under GATT, the total of the support area based upon the planned outputs included in the CAP Strategic Plans of the Member States concerned shall not exceed the maximum support area for the whole Union for the purpose of ensuring compliance with its international commitments.

2.   By 8 June 2022, the Commission shall adopt implementing acts fixing an indicative reference support area for each Member State, calculated on the basis of each Member State’s share of the average cultivation area in the Union during the years 2016 to 2020. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 153(2).

3.   Each Member State that intends to grant the support referred to in paragraph 1 of this Article shall indicate the corresponding planned outputs in terms of hectares in its CAP Strategic Plan proposal referred to in Article 118(1).

If, following the notification of all planned outputs by Member States, the maximum support area for the whole Union referred to in paragraph 1 of this Article is exceeded, the Commission shall calculate for each Member State that notified an excess compared to its reference area a reduction coefficient that is proportionate to the excess of its planned outputs so that the maximum support area for the whole Union is maintained. Each Member State concerned shall be informed about that reduction coefficient in the Commission’s observations to the CAP Strategic Plan in accordance with Article 118(3). The reduction coefficient for each Member State shall be set in the implementing decision referred to in Article 118(6) by means of which the Commission approves the CAP Strategic Plan.

Member States shall not amend their support area on their own initiative after the date referred to in Article 118(1).

4.   If a Member State intends to increase its planned outputs referred to in paragraph 1 of this Article set out in its CAP Strategic Plan approved by the Commission, it shall notify the Commission of the revised planned outputs by means of a request for amendment of its CAP Strategic Plan in accordance with Article 119 before 1 January of the year preceding the claim year concerned.

5.   Where appropriate, in order to avoid the maximum support area for the whole Union referred to in paragraph 1 being exceeded, the Commission shall set reduction coefficients, or revise the existing reduction coefficients where such coefficients were set in accordance with paragraph 3, second subparagraph, for all Member States that exceeded their reference support area in their CAP Strategic Plans.

The Commission shall inform the Member States concerned about the reduction coefficients by 31 January of the year preceding the claim year concerned.

Each Member State concerned shall submit a corresponding request for amendment of its CAP Strategic Plan with the reduction coefficient referred to in the second subparagraph by 31 March of the year preceding the claim year concerned. The reduction coefficient for that Member State shall be set in the implementing decision referred to in Article 119(10) by means of which the Commission approves the amendment of the CAP Strategic Plan.

6.   With regard to the oilseeds concerned by the Memorandum of Understanding referred to in paragraph 1 of this Article, Member States shall inform the Commission of the total number of hectares for which support has been actually paid in the annual performance reports referred to in Article 134.

7.   Member States shall exclude the cultivation of confectionery sunflower seed from any area-based intervention referred to in paragraph 1.

Section 2

Conditionality

Article 12

Principle and scope

1.   Member States shall include in their CAP Strategic Plans a system of conditionality under which farmers and other beneficiaries receiving direct payments under Chapter II or annual payments under Articles 70, 71 and 72 are subject to an administrative penalty if they do not comply with the statutory management requirements under Union law and the GAEC standards established in the CAP Strategic Plans, as listed in Annex III, relating to the following specific areas:

| (a) | the climate and the environment, including water, soil and biodiversity of ecosystems; |
| --- | --- |

(a)

the climate and the environment, including water, soil and biodiversity of ecosystems;

| (b) | public health and plant health; |
| --- | --- |

(b)

public health and plant health;

| (c) | animal welfare. |
| --- | --- |

(c)

animal welfare.

2.   The CAP Strategic Plans shall include rules on an effective and proportionate system of administrative penalties. Those rules shall comply in particular with the requirements set out in Title IV, Chapter IV, of Regulation (EU) 2021/2116.

3.   The legal acts referred to in Annex III concerning the statutory management requirements shall apply in the version that is applicable and, in the case of Directives, as implemented by the Member States.

4.   For the purpose of this Section, ‘statutory management requirement’ means each individual statutory management requirement under Union law listed in Annex III within a given legal act, differing in substance from any other requirement in the same act.

Article 13

Obligations of Member States relating to good agricultural and environmental condition

1.   Member States shall ensure that all agricultural areas, including land which is no longer used for production purposes, are maintained in good agricultural and environmental condition. Member States shall set, at national or regional level, minimum standards for farmers and other beneficiaries for each GAEC standard listed in Annex III in line with the main objective of those standards as referred to in that Annex. In setting their standards, Member States shall take into account, where relevant, the specific characteristics of the areas concerned including soil and climatic condition, existing farming systems, farming practices, farm size and farm structures, land use, and the specificities of outermost regions.

2.   In respect of the main objectives laid down in Annex III, Member States may set standards additional to those laid down in that Annex concerning those main objectives. Such additional standards shall be non-discriminatory and proportionate and shall correspond to the needs identified.

Member States shall not set minimum standards for main objectives other than the main objectives laid down in Annex III.

3.   The Commission is empowered to adopt delegated acts in accordance with Article 152 supplementing this Regulation with rules to ensure a level playing field as regards the ratio for GAEC standard 1.

Section 3

Social conditionality

Article 14

Principle and scope

1.   Member States shall indicate in their CAP Strategic Plans that, at the latest as from 1 January 2025, farmers and other beneficiaries receiving direct payments under Chapter II or annual payments under Articles 70, 71 and 72 are to be subject to an administrative penalty if they do not comply with the requirements related to applicable working and employment conditions or employer obligations arising from the legal acts referred to in Annex IV.

2.   When including a system of administrative penalties in their CAP Strategic Plans as referred in paragraph 1, Member States shall, in accordance with their institutional provisions, consult relevant national social partners representing management and labour in the agriculture sector and shall fully respect their autonomy, as well as their right to negotiate and conclude collective agreements. That system of administrative penalties shall not affect the rights and obligations of the social partners where they are, in accordance with national legal and collective bargaining frameworks, responsible for the implementation or enforcement of the legal acts referred to in Annex IV.

3.   The CAP Strategic Plan shall include rules on an effective and proportionate system of administrative penalties. Those rules shall comply with the relevant requirements set out in Title IV, Chapter V, of Regulation (EU) 2021/2116.

4.   The legal acts referred to in Annex IV containing the provisions to be covered by the system of administrative penalties referred to in paragraph 1 shall apply in the version that is applicable, and as implemented by the Member States.

Section 4

Farm advisory services

Article 15

Farm advisory services

1.   Member States shall include in their CAP Strategic Plans a system providing services for advising farmers and other beneficiaries of CAP support on land management and farm management (‘farm advisory services’). Member States may build upon existing systems.

2.   The farm advisory services shall cover economic, environmental and social dimensions, taking into account existing farming practices, and deliver up-to-date technological and scientific information developed by means of research and innovation projects, including as regards the provision of public goods.

Through the farm advisory services, appropriate assistance shall be offered along the cycle of the farm development, including for the setting-up for the first time, conversion of production patterns towards consumer demand, innovative practices, agricultural techniques for resilience to climate change, including agroforestry and agroecology, improved animal welfare, and where necessary safety standards and social support.

Farm advisory services shall be integrated within the interrelated services of farm advisors, researchers, farmer organisations and other relevant stakeholders that form the AKIS.

3.   Member States shall ensure that the advice given is impartial and that advisors are suitably qualified, appropriately trained and have no conflict of interest.

4.   The farm advisory services shall be adapted to the various types of production and farms and shall cover at least the following:

| (a) | all requirements, conditions and management commitments applying to farmers and other beneficiaries set in the CAP Strategic Plan, including requirements and standards under conditionality and conditions for interventions, as well as information on financial instruments and business plans established under the CAP Strategic Plan; |
| --- | --- |

(a)

all requirements, conditions and management commitments applying to farmers and other beneficiaries set in the CAP Strategic Plan, including requirements and standards under conditionality and conditions for interventions, as well as information on financial instruments and business plans established under the CAP Strategic Plan;

| (b) | the requirements laid down by Member States for implementing Directive 92/43/EEC, Directive 2000/60/EC, Article 55 of Regulation (EC) No 1107/2009 of the European Parliament and of the Council (38), Directive 2008/50/EC of the European Parliament and of the Council (39), Directive 2009/128/EC, Directive 2009/147/EC, Regulation (EU) 2016/429 of the European Parliament and of the Council (40), Regulation (EU) 2016/2031 of the European Parliament and of the Council (41) and Directive (EU) 2016/2284 of the European Parliament and of the Council (42); |
| --- | --- |

(b)

the requirements laid down by Member States for implementing Directive 92/43/EEC, Directive 2000/60/EC, Article 55 of Regulation (EC) No 1107/2009 of the European Parliament and of the Council (38), Directive 2008/50/EC of the European Parliament and of the Council (39), Directive 2009/128/EC, Directive 2009/147/EC, Regulation (EU) 2016/429 of the European Parliament and of the Council (40), Regulation (EU) 2016/2031 of the European Parliament and of the Council (41) and Directive (EU) 2016/2284 of the European Parliament and of the Council (42);

| (c) | farm practices preventing the development of antimicrobial resistance as set out in Commission communication of 29 June 2017 entitled ‘A European One Health Action Plan against Antimicrobial Resistance (AMR)’; |
| --- | --- |

(c)

farm practices preventing the development of antimicrobial resistance as set out in Commission communication of 29 June 2017 entitled ‘A European One Health Action Plan against Antimicrobial Resistance (AMR)’;

| (d) | risk prevention and management; |
| --- | --- |

(d)

risk prevention and management;

| (e) | innovation support, in particular for preparing and for implementing the projects of the EIP operational groups referred to in Article 127(3); |
| --- | --- |

(e)

innovation support, in particular for preparing and for implementing the projects of the EIP operational groups referred to in Article 127(3);

| (f) | digital technologies in agriculture and rural areas as referred to in Article 114, point (b); |
| --- | --- |

(f)

digital technologies in agriculture and rural areas as referred to in Article 114, point (b);

| (g) | sustainable management of nutrients, including at the latest as from 2024 the use of a Farm Sustainability Tool for Nutrients, which is any digital application that provides at least:






  (i) | a balance of the main nutrients at field scale; |
| --- | --- | --- |

(g)

sustainable management of nutrients, including at the latest as from 2024 the use of a Farm Sustainability Tool for Nutrients, which is any digital application that provides at least:

(i)

a balance of the main nutrients at field scale;

| (ii) | the legal requirements on nutrients; |
| --- | --- |

(ii)

the legal requirements on nutrients;

| (iii) | soil data, based on available information and analyses; |
| --- | --- |

(iii)

soil data, based on available information and analyses;

| (iv) | data from the integrated administration and control system (IACS) relevant for nutrient management; |
| --- | --- |

(iv)

data from the integrated administration and control system (IACS) relevant for nutrient management;

| (h) | conditions of employment, employer obligations, occupational health and safety and social support in farming communities. |
| --- | --- |

(h)

conditions of employment, employer obligations, occupational health and safety and social support in farming communities.

CHAPTER II

TYPES OF INTERVENTION IN THE FORM OF DIRECT PAYMENTS

Section 1

Types of intervention, reduction and minimum requirements

Article 16

Types of intervention in the form of direct payments

1.   The types of intervention under this Chapter may take the form of decoupled and coupled direct payments.

2.   Decoupled direct payments shall be the following:

| (a) | the basic income support for sustainability; |
| --- | --- |

(a)

the basic income support for sustainability;

| (b) | the complementary redistributive income support for sustainability; |
| --- | --- |

(b)

the complementary redistributive income support for sustainability;

| (c) | the complementary income support for young farmers; |
| --- | --- |

(c)

the complementary income support for young farmers;

| (d) | the schemes for the climate, the environment and animal welfare. |
| --- | --- |

(d)

the schemes for the climate, the environment and animal welfare.

3.   Coupled direct payments shall be the following:

| (a) | the coupled income support; |
| --- | --- |

(a)

the coupled income support;

| (b) | the crop-specific payment for cotton. |
| --- | --- |

(b)

the crop-specific payment for cotton.

Article 17

Capping and degressivity of payments

1.   Member States may cap the amount of the basic income support for sustainability to be granted to a farmer for a given calendar year. Member States that choose to introduce capping shall reduce by 100 % the amount exceeding EUR 100 000.

2.   Member States may reduce the amount of the basic income support for sustainability to be granted to a farmer for a given calendar year exceeding EUR 60 000 by up to 85 %.

Member States may set additional tranches above EUR 60 000, and specify the percentages of reduction for those additional tranches. They shall ensure that the reduction for each tranche is equal to or higher than for the previous tranche.

3.   Before applying paragraph 1 or 2, Member States may subtract from the amount of the basic income support for sustainability to be granted to a farmer in a given calendar year:

| (a) | all the salaries linked to an agricultural activity declared by the farmer, including taxes and social contributions related to employment; |
| --- | --- |

(a)

all the salaries linked to an agricultural activity declared by the farmer, including taxes and social contributions related to employment;

| (b) | the equivalent cost of regular and unpaid labour linked to an agricultural activity practiced by persons working on the farm concerned who do not receive a salary, or who receive less remuneration than the amount normally paid for the services rendered, but are rewarded through the economic result of the farm business; |
| --- | --- |

(b)

the equivalent cost of regular and unpaid labour linked to an agricultural activity practiced by persons working on the farm concerned who do not receive a salary, or who receive less remuneration than the amount normally paid for the services rendered, but are rewarded through the economic result of the farm business;

| (c) | the labour cost element of the contracting costs linked to an agricultural activity declared by the farmer. |
| --- | --- |

(c)

the labour cost element of the contracting costs linked to an agricultural activity declared by the farmer.

To calculate the amounts referred to in the first subparagraph, point (a), Member States shall use salary costs actually incurred by the farmer. In duly justified cases, farmers may request to use standards costs to be determined by the Member State concerned according to a method to be further specified in its CAP Strategic Plan based on the average standard salaries linked to an agricultural activity at national or regional level multiplied by the number of annual work units declared by the farmer concerned.

To calculate the amounts referred to in the first subparagraph, point (b), Member States shall use standard costs to be determined by the Member State concerned according to a method to be further specified in its CAP Strategic Plan based on the average standard salaries linked to an agricultural activity at national or regional level multiplied by the number of annual work units declared by the farmer concerned.

4.   In the case of a legal person, or a group of natural or legal persons, Member States may apply the reduction referred to in paragraphs 1 and 2 at the level of the members of those legal persons or groups where national law provides for the individual members to assume rights and obligations comparable to those of individual farmers who have the status of a head of holding, in particular as regards their economic, social and tax status, provided that they have contributed to strengthening the agricultural structures of the legal persons or groups concerned.

5.   The estimated product of the reduction of payments shall primarily be used to contribute to the financing of the complementary redistributive income support for sustainability, if it is established in the relevant CAP Strategic Plan, and thereafter of other interventions belonging to decoupled direct payments.

Member States may also use all or part of the product to finance types of intervention under the EAFRD as specified in Chapter IV by means of a transfer. Such transfer to the EAFRD shall be part of the CAP Strategic Plan financial tables and may be reviewed in 2025 in accordance with Article 103. It shall not be subject to the maximum limits for the transfers of funds from the EAGF to the EAFRD established under that Article.

6.   The Commission is empowered to adopt delegated acts in accordance with Article 152 supplementing this Regulation with rules establishing a harmonised basis for the calculation of the reduction of payments laid down in paragraphs 1 and 2 of this Article to provide detailed rules for the distribution of funds to farmers.

Article 18

Minimum requirements

1.   Member States shall set a minimum area and not grant direct payments to active farmers whose eligible area of the holding for which direct payments are claimed is lower than that minimum area.

Alternatively, Member States may set a minimum amount of direct payments that may be paid to a farmer.

2.   Where a Member State has decided to set a minimum area in accordance with paragraph 1, first subparagraph, it shall nevertheless set a minimum amount in accordance with paragraph 1, second subparagraph, for those farmers receiving an animal-related support to be paid per animal in the form of direct payments who hold fewer hectares than that minimum area.

When setting the minimum area or minimum amount, Member States shall aim to ensure that direct payments are granted only to active farmers if:

| (a) | the management of the corresponding payments does not cause excessive administrative burden; and |
| --- | --- |

(a)

the management of the corresponding payments does not cause excessive administrative burden; and

| (b) | the corresponding amounts make an effective contribution to achieving the specific objectives set out in Article 6(1) to which direct payments contribute. |
| --- | --- |

(b)

the corresponding amounts make an effective contribution to achieving the specific objectives set out in Article 6(1) to which direct payments contribute.

3.   Greece may decide not to apply this Article to the smaller Aegean islands.

Article 19

Contribution to risk management tools

By way of derogation from Article 44(1) of Regulation (EU) 2021/2116, a Member State may decide to assign up to 3 % of the direct payments to be paid to a farmer for the farmer’s contribution to a risk management tool.

Member States that decide to make use of this provision shall apply it to all farmers receiving direct payments in a given year.

Section 2

Decoupled direct payments

Subsection 1

General provisions

Article 20

General requirements for receiving decoupled direct payments

Member States shall grant decoupled direct payments to active farmers under the conditions set out in this Section and as further specified in their CAP Strategic Plans.

Subsection 2

Basic income support for sustainability

Article 21

General rules

1.   Member States shall provide for a basic income support for sustainability (‘basic income support’) under the conditions set out in this Subsection and as further specified in their CAP Strategic Plans.

2.   Member States shall provide for a basic income support in the form of an annual decoupled payment per eligible hectare.

3.   Without prejudice to Articles 23 to 27, the basic income support shall be granted for each eligible hectare declared by an active farmer.

Article 22

Amount of support per hectare

1.   Unless Member States decide to grant the basic income support on the basis of payment entitlements as referred to in Article 23, the support shall be paid as a uniform amount per hectare.

2.   Member States may decide to differentiate the amount of the basic income support per hectare amongst different groups of territories faced with similar socio-economic or agronomic conditions, including traditional forms of agriculture as determined by Member States, such as traditional extensive alpine pasture. In accordance with Article 109(2), point (d), the amount of basic income support per hectare may be reduced, taking into account support under other interventions in the CAP Strategic Plan concerned.

Article 23

Payment entitlements

1.   Member States having applied the basic payment scheme as laid down in Title III, Chapter I, Section 1, of Regulation (EU) No 1307/2013 may decide to grant the basic income support on the basis of payment entitlements in accordance with Articles 24 to 27 of this Regulation.

2.   Where Member States having applied the basic payment scheme as laid down in Title III, Chapter I, Section 1, of Regulation (EU) No 1307/2013 decide to no longer grant the basic income support on the basis of payment entitlements, the payment entitlements allocated under that Regulation shall expire on 31 December of the year preceding the year from which the decision is to apply.

Article 24

Value of payment entitlements and convergence

1.   Member States shall determine the unit value of payment entitlements before convergence in accordance with this Article by adjusting the value of payment entitlements proportionally to their value as established in accordance with Regulation (EU) No 1307/2013 for claim year 2022 and the related payment for agricultural practices beneficial for the climate and environment provided for in Title III, Chapter III, of that Regulation for claim year 2022.

2.   Member States may decide to differentiate the value of payment entitlements in accordance with Article 22(2).

3.   Each Member State shall, by claim year 2026 at the latest, set a maximum level for the value of individual payment entitlements for the Member State or for each group of territories referred to in Article 22(2).

4.   Where the value of payment entitlements as determined in accordance with paragraph 1 is not uniform within a Member State or within a group of territories referred to in Article 22(2), the Member State concerned shall ensure a convergence of the value of payment entitlements towards a uniform unit value by claim year 2026 at the latest.

5.   For the purposes of paragraph 4, each Member State shall ensure that, for claim year 2026 at the latest, all payment entitlements have a value of at least 85 % of the planned average unit amount referred to in Article 102(1) for the basic income support for claim year 2026, as laid down in its CAP Strategic Plan for the Member State or for the group of territories referred to in Article 22(2).

6.   Member States shall finance the increases in the value of payment entitlements needed to comply with paragraphs 4 and 5 of this Article by using any possible amounts that become available through the application of paragraph 3 of this Article, and, where necessary, by reducing the difference between the unit value of payment entitlements determined in accordance with paragraph 1 of this Article and the planned unit amount referred to in Article 102(1), for the basic income support for claim year 2026, as laid down in the CAP Strategic Plan for the Member State or for the group of territories referred to in Article 22(2).

Member States may decide to apply the reduction to all or part of the payment entitlements with a value determined in accordance with paragraph 1 of this Article exceeding the planned unit amount referred to in Article 102(1) for the basic income support for claim year 2026, as laid down in the CAP Strategic Plan for the Member State or for group of territories referred to in Article 22(2).

7.   The reductions referred to in paragraph 6 shall be based on objective and non-discriminatory criteria. Without prejudice to the minimum value set in accordance with paragraph 5, such criteria may include the fixing of a maximum decrease that may not be lower than 30 %.

8.   Member States shall ensure that the adjustment of the payment entitlement values in accordance with paragraphs 3 to 7 starts from the year 2023.

Article 25

Activation of payment entitlements

1.   Member States which have decided to grant support on the basis of payment entitlements shall grant basic income support to active farmers holding owned or leased-in payment entitlements upon activation of those payment entitlements. Member States shall ensure that, for the purpose of the activation of payment entitlements, active farmers declare the eligible hectares accompanying any payment entitlement.

2.   Member States shall ensure that payment entitlements, including in the case of actual or anticipated inheritance, are activated only in the Member State or within the group of territories referred to in Article 22(2) where they were allocated.

3.   Member States shall ensure that activated payment entitlements give a right to payment based on the amount fixed therein.

Article 26

Reserves for payment entitlements

1.   Each Member State that decides to grant the basic income support on the basis of payment entitlements shall manage a national reserve.

2.   By way of derogation from paragraph 1 of this Article, where a Member State decides to differentiate the basic income support in accordance with Article 22(2), it may decide to have a reserve for each group of territories referred to in that Article.

3.   Member States shall ensure that payment entitlements from the reserve be only allocated to active farmers.

4.   Member States shall use their reserve as a matter of priority to allocate payment entitlements to the following farmers:

| (a) | young farmers who have newly set up a holding for the first time; |
| --- | --- |

(a)

young farmers who have newly set up a holding for the first time;

| (b) | new farmers. |
| --- | --- |

(b)

new farmers.

5.   A Member State shall allocate payment entitlements to, or increase the value of the existing payment entitlements of, active farmers who are entitled by virtue of a final court ruling or by virtue of a final administrative act of the competent authority of that Member State. It shall ensure that those active farmers receive the number and value of payment entitlements established in that ruling or act at a date to be fixed by that Member State.

6.   Member States shall ensure that the reserve is replenished by a linear reduction of the value of all payment entitlements where the reserve is insufficient to cover the allocation of payment entitlements in accordance with paragraphs 4 and 5.

7.   Member States may lay down additional rules for the use of the reserve, including additional categories of farmer to be served from the reserve provided the priority groups referred to in paragraphs 4 and 5 have been served, and for the cases that would trigger the replenishment of the reserve. Where the reserve is replenished by linear reduction of the value of payment entitlements, such linear reduction shall apply to all payment entitlements at national level or, where Member States apply the derogation provided for in paragraph 2, at the level of the relevant group of territories referred to in Article 22(2).

8.   Member States shall fix the value of new payment entitlements allocated from the reserve at the national average value of payment entitlements in the year of allocation or at the average value of payment entitlements for each group of territories referred to in Article 22(2) in the year of allocation.

9.   Member States may decide to increase the value of the existing payment entitlements up to the national average value in the year of allocation or up to the average value for each group of territories referred to in Article 22(2).

Article 27

Transfers of payment entitlements

1.   Except in the case of transfer by actual or anticipated inheritance, payment entitlements shall be transferred only to an active farmer established in the same Member State.

2.   Where Member States decide to differentiate the basic income support in accordance with Article 22(2), payment entitlements shall only be transferred within the group of territories where they were allocated.

Article 28

Payments for small farmers

Member States may grant a payment to small farmers, as determined by Member States, by way of a lump sum or of amounts per hectare replacing direct payments under this Section and Section 3 of this Chapter. Member States shall design the corresponding intervention in the CAP Strategic Plan as optional for the farmers.

The annual payment for each farmer shall not exceed EUR 1 250.

Member States may decide to set different lump sums or amounts per hectare linked to different area thresholds.

Subsection 3

Complementary income support

Article 29

Complementary redistributive income support for sustainability

1.   Member States shall provide for a complementary redistributive income support for sustainability (‘redistributive income support’) under the conditions set out in this Article and as further specified in their CAP Strategic Plans.

By way of derogation from the first subparagraph of this paragraph or from Article 98, Member States may address the need for redistribution of income support by other instruments and interventions financed by the EAGF pursuing the objective of fairer distribution and more effective and efficient targeting of income support, provided they can demonstrate in their CAP Strategic Plans that such need is sufficiently addressed.

2.   Member States shall ensure redistribution of direct payments from larger to smaller or medium-sized holdings by providing for a redistributive income support in the form of an annual decoupled payment per eligible hectare to farmers who are entitled to a payment under the basic income support referred to in Article 21.

3.   Member States shall establish at national or regional level, which may be the level of the groups of territories referred to in Article 22(2), an amount per hectare or different amounts for different ranges of hectares, as well as the maximum number of hectares per farmer for which the redistributive income support shall be paid.

4.   The amount per hectare planned for a given claim year shall not exceed the national average amount of direct payments per hectare for that claim year.

5.   The national average amount of direct payments per hectare is defined as the ratio of the national ceiling for direct payments for a given claim year laid down in Annex V and the total planned outputs for the basic income support for that claim year, expressed in number of hectares.

6.   In the case of a legal person, or a group of natural or legal persons, Member States may apply the maximum number of hectares referred to in paragraph 3 at the level of the members of those legal persons or groups where national law provides for the individual members to assume rights and obligations comparable to those of individual farmers who have the status of a head of holding, in particular as regards their economic, social and tax status, provided that they have contributed to strengthening the agricultural structures of the legal persons or groups concerned.

In the case of farmers who are part of a group of affiliated legal entities, as determined by Member States, Member States may apply the maximum number of hectares referred to in paragraph 3 at the level of that group under conditions to be determined by them.

Article 30

Complementary income support for young farmers

1.   Member States may provide for complementary income support for young farmers determined in accordance with the criteria laid down in Article 4(6) under the conditions set out in this Article and as further specified in their CAP Strategic Plans.

2.   As part of their obligations to attract young farmers in line with the objective set out in Article 6(1), point (g), and to dedicate to this objective, in accordance with Article 95, at least an amount as set out in Annex XII, Member States may provide a complementary income support for young farmers who have newly set up for the first time and who are entitled to a payment under the basic income support referred to in Article 21.

Member States may decide to grant the support under this Article to farmers who have received support under Article 50 of Regulation (EU) No 1307/2013 for the remainder of the period referred to in paragraph 5 of that Article.

3.   The complementary income support for young farmers shall be granted for a maximum duration of five years, starting from the first year of submission of the application for the payment for young farmers, and subject to the conditions to be determined by the CAP legal framework applicable for the period after 2027 when the duration of five years goes beyond 2027. Member States shall ensure that no legal expectations of beneficiaries are created for the period after 2027.

That support shall take the form either of an annual decoupled payment per eligible hectare or of a lump-sum payment per young farmer.

Member States may decide to grant the support under this Article only to a maximum number of hectares per young farmer.

4.   In the case of a legal person, or a group of natural or legal persons such as group of farmers, producer organisations or cooperatives, Member States may apply the maximum number of hectares referred to in paragraph 3 at the level of the members of those legal persons or groups:

| (a) | who comply with the definition and conditions for a ‘young farmer’ determined in accordance with Article 4(6); and |
| --- | --- |

(a)

who comply with the definition and conditions for a ‘young farmer’ determined in accordance with Article 4(6); and

| (b) | where national law provides for the individual members to assume rights and obligations comparable to those of individual farmers who have the status of a head of holding, in particular as regards their economic, social and tax status, provided that they have contributed to strengthening the agricultural structures of the legal persons or groups concerned. |
| --- | --- |

(b)

where national law provides for the individual members to assume rights and obligations comparable to those of individual farmers who have the status of a head of holding, in particular as regards their economic, social and tax status, provided that they have contributed to strengthening the agricultural structures of the legal persons or groups concerned.

Subsection 4

Schemes for the climate, the environment and animal welfare

Article 31

Schemes for the climate, the environment and animal welfare

1.   Member States shall establish, and provide support for, voluntary schemes for the climate, the environment and animal welfare (‘eco-schemes’) under the conditions set out in this Article and as further specified in their CAP Strategic Plans.

2.   Member States shall support under this Article active farmers or groups of active farmers who make commitments to observe agricultural practices beneficial for the climate, the environment and animal welfare and combatting antimicrobial resistance.

3.   Member States shall establish a list of the agricultural practices beneficial for the climate, the environment and animal welfare and combatting antimicrobial resistance referred to in paragraph 2. Those practices shall be designed to meet one or more of the specific objectives set out in Article 6(1), points (d), (e) and (f) and, as regards improving animal welfare and combatting antimicrobial resistance, in Article 6(1), point (i).

4.   Each eco-scheme shall in principle cover at least two of the following areas of actions for the climate, the environment, animal welfare and combatting antimicrobial resistance:

| (a) | climate change mitigation, including reduction of greenhouse gas emissions from agricultural practices, as well as maintenance of existing carbon stores and enhancement of carbon sequestration; |
| --- | --- |

(a)

climate change mitigation, including reduction of greenhouse gas emissions from agricultural practices, as well as maintenance of existing carbon stores and enhancement of carbon sequestration;

| (b) | climate change adaptation, including actions to improve resilience of food production systems and animal and plant diversity for stronger resistance to diseases and climate change; |
| --- | --- |

(b)

climate change adaptation, including actions to improve resilience of food production systems and animal and plant diversity for stronger resistance to diseases and climate change;

| (c) | protection or improvement of water quality and reduction of pressure on water resources; |
| --- | --- |

(c)

protection or improvement of water quality and reduction of pressure on water resources;

| (d) | prevention of soil degradation, soil restoration, improvement of soil fertility and of nutrient management and soil biota; |
| --- | --- |

(d)

prevention of soil degradation, soil restoration, improvement of soil fertility and of nutrient management and soil biota;

| (e) | protection of biodiversity, conservation or restoration of habitats or species, including maintenance and creation of landscape features or non-productive areas; |
| --- | --- |

(e)

protection of biodiversity, conservation or restoration of habitats or species, including maintenance and creation of landscape features or non-productive areas;

| (f) | actions for a sustainable and reduced use of pesticides, in particular pesticides that present a risk for human health or environment; |
| --- | --- |

(f)

actions for a sustainable and reduced use of pesticides, in particular pesticides that present a risk for human health or environment;

| (g) | actions to enhance animal welfare or combat antimicrobial resistance. |
| --- | --- |

(g)

actions to enhance animal welfare or combat antimicrobial resistance.

5.   Under this Article, Member States shall only provide payments covering commitments which:

| (a) | go beyond the relevant statutory management requirements and GAEC standards established under Chapter I, Section 2; |
| --- | --- |

(a)

go beyond the relevant statutory management requirements and GAEC standards established under Chapter I, Section 2;

| (b) | go beyond the relevant minimum requirements for the use of fertiliser and plant protection products, animal welfare, as well as other relevant mandatory requirements established by national and Union law; |
| --- | --- |

(b)

go beyond the relevant minimum requirements for the use of fertiliser and plant protection products, animal welfare, as well as other relevant mandatory requirements established by national and Union law;

| (c) | go beyond the conditions established for the maintenance of the agricultural area in accordance with Article 4(2), point (b); |
| --- | --- |

(c)

go beyond the conditions established for the maintenance of the agricultural area in accordance with Article 4(2), point (b);

| (d) | are different from commitments in respect of which payments are granted under Article 70. |
| --- | --- |

(d)

are different from commitments in respect of which payments are granted under Article 70.

For commitments referred to in the first subparagraph, point (b), where national law imposes new requirements which go beyond the corresponding minimum requirements laid down in Union law, support may be granted for commitments contributing to compliance with those requirements for a maximum of 24 months from the date on which they become mandatory for the holding.

6.   Pursuant to paragraph 5, Member States may, for the description of the commitments to be fulfilled by the beneficiary of eco-schemes referred to in this Article, build upon one or more of the requirements and standards established under Chapter I, Section 2, provided that the obligations of the eco-schemes go beyond the relevant statutory management requirements and the minimum standards for good agricultural and environmental condition of land established by Member States under Chapter I, Section 2.

Without prejudice to Article 87(1) of Regulation (EU) 2021/2116, active farmers or groups of active farmers participating in eco-schemes established in accordance with the first subparagraph shall be deemed to comply with the relevant requirements and standards referred to in Annex III, provided that they fulfil the commitments under the eco-scheme concerned.

Member States that establish eco-schemes in accordance with the first subparagraph of this paragraph may ensure that their management and control systems do not duplicate checks where the same requirements and standards apply both under those eco-schemes and the obligations set in Annex III.

7.   Support for a particular eco-scheme shall take the form of an annual payment for all eligible hectares covered by the commitments. Payments shall be granted as either:

| (a) | payments additional to the basic income support set out in Subsection 2; or |
| --- | --- |

(a)

payments additional to the basic income support set out in Subsection 2; or

| (b) | payments compensating active farmers or groups of active farmers for all or part of the additional costs incurred and income foregone as a result of the commitments made which shall be calculated in accordance with Article 82 and taking into account the targets for eco-schemes; those payments may also cover transaction costs. |
| --- | --- |

(b)

payments compensating active farmers or groups of active farmers for all or part of the additional costs incurred and income foregone as a result of the commitments made which shall be calculated in accordance with Article 82 and taking into account the targets for eco-schemes; those payments may also cover transaction costs.

By way of derogation from the first subparagraph, payments granted in accordance with point (b) thereof for animal welfare commitments, commitments combatting antimicrobial resistance and, if duly justified, commitments for agricultural practices beneficial for the climate may also take the form of an annual payment for the livestock units.

8.   Member States shall demonstrate how the agricultural practices committed under eco-schemes respond to the needs referred to in Article 108 and how they contribute to the environmental and climate architecture referred to in Article 109(2), point (a), and to animal welfare and combatting antimicrobial resistance. They shall use a rating or scoring system or any other appropriate methodology to ensure the effectiveness and efficiency of the eco-schemes to deliver on the targets set. When establishing the level of payments for different commitments under the eco-schemes pursuant to paragraph 7, first subparagraph, point (a), of this Article, Member States shall take into account the level of sustainability and ambition of each eco-scheme, based on objective and transparent criteria.

9.   Member States shall ensure that interventions under this Article are consistent with those based on Article 70.

Section 3

Coupled direct payments

Subsection 1

Coupled income support

Article 32

General rules

1.   Member States may grant coupled income support to active farmers under the conditions set out in this Subsection and as further specified in their CAP Strategic Plans.

2.   The Member States’ interventions shall help the supported sectors and productions or specific types of farming therein listed in Article 33 to address the difficulties encountered by improving competitiveness, sustainability or quality. Member States shall not be required to demonstrate the difficulties encountered in relation to protein crops.

3.   Coupled income support shall take the form of an annual payment per hectare or animal.

Article 33

Scope

Coupled income support may only be granted to the following sectors and productions or specific types of farming therein where they are important for socio-economic or environmental reasons:

| (a) | cereals; |
| --- | --- |

(a)

cereals;

| (b) | oilseeds excluding confectionary sunflower seeds as laid down in Article 11(7); |
| --- | --- |

(b)

oilseeds excluding confectionary sunflower seeds as laid down in Article 11(7);

| (c) | protein crops, including legumes and mixtures of legumes and grasses provided that legumes remain predominant in the mixture; |
| --- | --- |

(c)

protein crops, including legumes and mixtures of legumes and grasses provided that legumes remain predominant in the mixture;

| (d) | flax; |
| --- | --- |

(d)

flax;

| (e) | hemp; |
| --- | --- |

(e)

hemp;

| (f) | rice; |
| --- | --- |

(f)

rice;

| (g) | nuts; |
| --- | --- |

(g)

nuts;

| (h) | starch potatoes; |
| --- | --- |

(h)

starch potatoes;

| (i) | milk and milk products; |
| --- | --- |

(i)

milk and milk products;

| (j) | seeds; |
| --- | --- |

(j)

seeds;

| (k) | sheep meat and goat meat; |
| --- | --- |

(k)

sheep meat and goat meat;

| (l) | beef and veal; |
| --- | --- |

(l)

beef and veal;

| (m) | olive oil and table olives; |
| --- | --- |

(m)

olive oil and table olives;

| (n) | silk worms; |
| --- | --- |

(n)

silk worms;

| (o) | dried fodder; |
| --- | --- |

(o)

dried fodder;

| (p) | hops; |
| --- | --- |

(p)

hops;

| (q) | sugar beet, cane and chicory roots; |
| --- | --- |

(q)

sugar beet, cane and chicory roots;

| (r) | fruit and vegetables; |
| --- | --- |

(r)

fruit and vegetables;

| (s) | short rotation coppice. |
| --- | --- |

(s)

short rotation coppice.

Article 34

Eligibility

1.   Member States may grant coupled income support in the form of a payment per hectare only for areas they have determined as eligible hectares.

2.   Where the coupled income support concerns bovine animals or sheep and goats, Member States shall set as eligibility conditions for the support the requirements to identify and register the animals in compliance with Part IV, Title I, Chapter 2, Section 1, of Regulation (EU) 2016/429. However, without prejudice to other applicable eligibility conditions, bovine animals or sheep and goats shall be considered to be eligible for support as long as the identification and registration requirements are met by a certain date in the claim year concerned to be fixed by the Member States.

Article 35

Delegated powers in the case of structural market imbalances in a sector

The Commission is empowered to adopt delegated acts in accordance with Article 152 supplementing this Regulation with measures to avoid beneficiaries of coupled income support suffering from structural market imbalances in a sector. Those delegated acts may allow Member States to decide that coupled income support may continue to be paid until 2027 on the basis of the production units for which such support was granted in a past reference period.

Subsection 2

Crop-specific payment for cotton

Article 36

Scope

Bulgaria, Greece, Spain and Portugal shall grant a crop-specific payment for cotton to active farmers producing cotton falling within CN code 5201 00 under the conditions laid down in this Subsection.

Article 37

General rules

1.   The crop-specific payment for cotton shall be granted per hectare of eligible area of cotton. The area shall be eligible only if it is located on agricultural land authorised by the Member State for cotton production, sown with varieties authorised by the Member State and actually harvested under normal growing conditions.

2.   The crop-specific payment for cotton shall be paid for cotton of sound, fair and marketable quality.

3.   Bulgaria, Greece, Spain and Portugal shall authorise the land and the varieties referred to in paragraph 1 in accordance with any rules and conditions adopted pursuant to paragraph 5.

4.   For the interventions covered in this Subsection:

| (a) | the eligibility of the expenditure incurred shall be determined on the basis of Article 37, point (a), of Regulation (EU) 2021/2116; |
| --- | --- |

(a)

the eligibility of the expenditure incurred shall be determined on the basis of Article 37, point (a), of Regulation (EU) 2021/2116;

| (b) | for the purposes of Article 12(2) of Regulation (EU) 2021/2116, the opinion to be provided by the certification bodies shall cover points (a), (b) and (d) thereof, as well as the management declaration. |
| --- | --- |

(b)

for the purposes of Article 12(2) of Regulation (EU) 2021/2116, the opinion to be provided by the certification bodies shall cover points (a), (b) and (d) thereof, as well as the management declaration.

5.   The Commission is empowered to adopt delegated acts in accordance with Article 152 supplementing this Regulation with rules and conditions for the authorisation of land and varieties for the purposes of the crop-specific payment for cotton.

6.   The Commission shall adopt implementing acts laying down rules on the procedure for the authorisation of land and varieties for the purposes of the crop-specific payment for cotton and on the notifications to the producers related to this authorisation. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 153(2).

Article 38

Base areas, fixed yields and reference amounts

1.   The following national base areas are established:

| — | Bulgaria: 3 342 ha, |
| --- | --- |

—

Bulgaria: 3 342 ha,

| — | Greece: 250 000 ha, |
| --- | --- |

—

Greece: 250 000 ha,

| — | Spain: 48 000 ha, |
| --- | --- |

—

Spain: 48 000 ha,

| — | Portugal: 360 ha. |
| --- | --- |

—

Portugal: 360 ha.

2.   The following fixed yields in the reference period are established:

| — | Bulgaria: 1,2 tonne/ha, |
| --- | --- |

—

Bulgaria: 1,2 tonne/ha,

| — | Greece: 3,2 tonne/ha, |
| --- | --- |

—

Greece: 3,2 tonne/ha,

| — | Spain: 3,5 tonne/ha, |
| --- | --- |

—

Spain: 3,5 tonne/ha,

| — | Portugal: 2,2 tonne/ha. |
| --- | --- |

—

Portugal: 2,2 tonne/ha.

3.   The amount of the crop-specific payment per hectare of eligible area shall be calculated by multiplying the yields established in paragraph 2 with the following reference amounts:

| — | Bulgaria: EUR 636,13, |
| --- | --- |

—

Bulgaria: EUR 636,13,

| — | Greece: EUR 229,37, |
| --- | --- |

—

Greece: EUR 229,37,

| — | Spain: EUR 354,73, |
| --- | --- |

—

Spain: EUR 354,73,

| — | Portugal: EUR 223,32. |
| --- | --- |

—

Portugal: EUR 223,32.

4.   If the eligible area of cotton in a given Member State and a given year exceeds the base area established in paragraph 1, the amount referred to in paragraph 3 for that Member State shall be reduced proportionately to the overrun of the base area.

5.   The Commission is empowered to adopt delegated acts in accordance with Article 152 supplementing this Regulation with rules on the conditions for the granting of the crop-specific payment for cotton, on the eligibility requirements and on agronomic practices.

6.   The Commission may adopt implementing acts laying down rules on the calculation of the reduction provided for in paragraph 4. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 153(2).

Article 39

Approved interbranch organisations

1.   For the purpose of this Subsection, an ‘approved interbranch organisation’ means a legal entity made up of farmers producing cotton and at least one ginner, carrying out activities such as:

| (a) | helping to better coordinate the way in which cotton is placed on the market, in particular through research studies and market surveys; |
| --- | --- |

(a)

helping to better coordinate the way in which cotton is placed on the market, in particular through research studies and market surveys;

| (b) | drawing up standard forms of contract compatible with Union rules; |
| --- | --- |

(b)

drawing up standard forms of contract compatible with Union rules;

| (c) | orienting production towards products that are better adapted to market needs and consumer demand, in particular with regard to quality and consumer protection; |
| --- | --- |

(c)

orienting production towards products that are better adapted to market needs and consumer demand, in particular with regard to quality and consumer protection;

| (d) | updating methods and means to improve product quality; |
| --- | --- |

(d)

updating methods and means to improve product quality;

| (e) | developing marketing strategies to promote cotton via quality certification schemes. |
| --- | --- |

(e)

developing marketing strategies to promote cotton via quality certification schemes.

2.   The Member State where the ginners are established shall approve interbranch organisations that satisfy any criteria laid down pursuant to paragraph 3.

3.   The Commission is empowered to adopt delegated acts in accordance with Article 152 supplementing this Regulation with rules on:

| (a) | criteria for the approval of interbranch organisations; |
| --- | --- |

(a)

criteria for the approval of interbranch organisations;

| (b) | obligations for producers; |
| --- | --- |

(b)

obligations for producers;

| (c) | the consequences where the approved interbranch organisation does not satisfy the criteria referred to in point (a). |
| --- | --- |

(c)

the consequences where the approved interbranch organisation does not satisfy the criteria referred to in point (a).

Article 40

Granting of the payment

1.   Farmers shall be granted the crop-specific payment for cotton for hectares that are eligible as established in Article 38.

2.   In the case of farmers who are members of an approved interbranch organisation, the crop-specific payment for cotton for hectares that are eligible within the base area laid down in Article 38(1) shall be increased by an amount of EUR 2.

Article 41

Derogations

1.   Articles 101 and 102 and Title VII, with the exception of Chapter III thereof, shall not apply to the crop-specific payment for cotton laid down in this Subsection.

2.   The crop-specific payment for cotton shall not be included in any of the sections of the CAP Strategic Plan referred to in Articles 108 to 114, except as regards Article 112(2), point (a), relating to the financial plan.

3.   Article 55(1), second and third subparagraphs, of Regulation (EU) 2021/2116 shall not apply to the interventions referred to in this Subsection.

CHAPTER III

TYPES OF INTERVENTION IN CERTAIN SECTORS

Section 1

General provisions

Article 42

Scope

This Chapter lays down rules concerning the types of intervention:

| (a) | in the fruit and vegetables sector, as referred to in Article 1(2), point (i), of Regulation (EU) No 1308/2013; |
| --- | --- |

(a)

in the fruit and vegetables sector, as referred to in Article 1(2), point (i), of Regulation (EU) No 1308/2013;

| (b) | in the apiculture products sector, as referred to in Article 1(2), point (v), of Regulation (EU) No 1308/2013 (‘apiculture sector’); |
| --- | --- |

(b)

in the apiculture products sector, as referred to in Article 1(2), point (v), of Regulation (EU) No 1308/2013 (‘apiculture sector’);

| (c) | in the wine sector, as referred to in Article 1(2), point (l), of Regulation (EU) No 1308/2013; |
| --- | --- |

(c)

in the wine sector, as referred to in Article 1(2), point (l), of Regulation (EU) No 1308/2013;

| (d) | in the hops sector, as referred to in Article 1(2), point (f), of Regulation (EU) No 1308/2013; |
| --- | --- |

(d)

in the hops sector, as referred to in Article 1(2), point (f), of Regulation (EU) No 1308/2013;

| (e) | in the olive oil and table olives sector, as referred to in Article 1(2), point (g), of Regulation (EU) No 1308/2013; |
| --- | --- |

(e)

in the olive oil and table olives sector, as referred to in Article 1(2), point (g), of Regulation (EU) No 1308/2013;

| (f) | in the other sectors set out in Article 1(2), points (a) to (h), (k), (m), (o) to (t) and (w), of Regulation (EU) No 1308/2013 and sectors covering products listed in Annex VI to this Regulation. |
| --- | --- |

(f)

in the other sectors set out in Article 1(2), points (a) to (h), (k), (m), (o) to (t) and (w), of Regulation (EU) No 1308/2013 and sectors covering products listed in Annex VI to this Regulation.

Article 43

Mandatory and optional types of intervention

1.   The types of intervention in the fruit and vegetables sector referred to in Article 42, point (a), shall be mandatory for Member States with producer organisations in that sector recognised under Regulation (EU) No 1308/2013.

Where a Member State without recognised producer organisations in the fruit and vegetables sector at the moment of submitting its CAP Strategic Plan recognises a producer organisation in that sector under Regulation (EU) No 1308/2013 during the CAP Strategic Plan period, that Member State shall submit a request for amendment of its CAP Strategic Plan in accordance with Article 119 in order to include interventions in the fruit and vegetables sector.

2.   The types of intervention in the apiculture sector referred to in Article 42, point (b), shall be mandatory for every Member State.

3.   The types of intervention in the wine sector referred to in Article 42, point (c), shall be mandatory for the Member States listed in Annex VII.

4.   Member States may choose in their CAP Strategic Plans to implement the types of intervention referred to in Article 42, points (d), (e) and (f).

5.   Germany may implement in the hops sector the types of intervention referred to in Article 42, point (f), only if it decides in its CAP Strategic Plan not to implement the types of intervention referred to in Article 42, point (d).

6.   Greece, France and Italy may implement in the olive oil and table olives sector the types of intervention referred to in Article 42, point (f), only if they decide in their CAP Strategic Plans not to implement the types of intervention referred to in Article 42, point (e).

Article 44

Forms of support

1.   In the sectors referred to in Article 42, support may take any of the following forms:

| (a) | reimbursement of eligible costs actually incurred by a beneficiary; |
| --- | --- |

(a)

reimbursement of eligible costs actually incurred by a beneficiary;

| (b) | unit costs; |
| --- | --- |

(b)

unit costs;

| (c) | lump sums; |
| --- | --- |

(c)

lump sums;

| (d) | flat-rate financing. |
| --- | --- |

(d)

flat-rate financing.

2.   The amounts for the forms of support referred to under paragraph 1, points (b), (c) and (d), shall be established in one of the following ways:

| (a) | a fair, equitable and verifiable calculation method based on:






  (i) | statistical data, other objective information or an expert judgement; |
| --- | --- | --- |

(a)

a fair, equitable and verifiable calculation method based on:

(i)

statistical data, other objective information or an expert judgement;

| (ii) | verified historical data of beneficiaries; or |
| --- | --- |

(ii)

verified historical data of beneficiaries; or

| (iii) | the application of usual cost accounting practices of beneficiaries; |
| --- | --- |

(iii)

the application of usual cost accounting practices of beneficiaries;

| (b) | draft budgets established on a case-by-case basis and agreed ex ante by the body selecting the operation in the case of interventions in the wine and apiculture sectors or the body approving the operational programmes referred to in Article 50 in the case of interventions in the other eligible sectors; |
| --- | --- |

(b)

draft budgets established on a case-by-case basis and agreed ex ante by the body selecting the operation in the case of interventions in the wine and apiculture sectors or the body approving the operational programmes referred to in Article 50 in the case of interventions in the other eligible sectors;

| (c) | in accordance with the rules for application of corresponding unit costs, lump sums and flat rates applicable in Union policies for a similar type of intervention; |
| --- | --- |

(c)

in accordance with the rules for application of corresponding unit costs, lump sums and flat rates applicable in Union policies for a similar type of intervention;

| (d) | in accordance with the rules for application of corresponding unit costs, lump sums and flat rates applied under support schemes funded entirely by the Member State for a similar type of intervention. |
| --- | --- |

(d)

in accordance with the rules for application of corresponding unit costs, lump sums and flat rates applied under support schemes funded entirely by the Member State for a similar type of intervention.

Article 45

Delegated powers for additional requirements for types of intervention

The Commission shall be empowered to adopt delegated acts in accordance with Article 152 supplementing this Regulation with requirements additional to those laid down in this Chapter as regards:

| (a) | ensuring the proper functioning of types of intervention laid down in this Chapter, in particular by avoiding distortions of competition in the internal market; |
| --- | --- |

(a)

ensuring the proper functioning of types of intervention laid down in this Chapter, in particular by avoiding distortions of competition in the internal market;

| (b) | the type of expenditure covered by the interventions included in this Chapter, including, by way of derogation from Article 22 of Regulation (EU) 2021/2116, the eligibility of administrative and personnel costs of producer organisations or other beneficiaries when implementing those interventions; |
| --- | --- |

(b)

the type of expenditure covered by the interventions included in this Chapter, including, by way of derogation from Article 22 of Regulation (EU) 2021/2116, the eligibility of administrative and personnel costs of producer organisations or other beneficiaries when implementing those interventions;

| (c) | the basis for the calculation of Union financial assistance referred to in this Chapter, including the reference periods and the calculation of the value of marketed production, and for the calculation of the degree of organisation of producers for the purpose of the national financial assistance referred to in Article 53; |
| --- | --- |

(c)

the basis for the calculation of Union financial assistance referred to in this Chapter, including the reference periods and the calculation of the value of marketed production, and for the calculation of the degree of organisation of producers for the purpose of the national financial assistance referred to in Article 53;

| (d) | the maximum level of Union financial assistance for the types of intervention referred to in Article 47(2), points (a), (c), (f), (g), (h) and (i), and for the types of intervention referred to in Article 58(1), first subparagraph, points (c), (d) and (l), including packaging and transport rates for products withdrawn for free distribution and processing costs prior to delivery for that purpose; |
| --- | --- |

(d)

the maximum level of Union financial assistance for the types of intervention referred to in Article 47(2), points (a), (c), (f), (g), (h) and (i), and for the types of intervention referred to in Article 58(1), first subparagraph, points (c), (d) and (l), including packaging and transport rates for products withdrawn for free distribution and processing costs prior to delivery for that purpose;

| (e) | the rules for the fixing of a ceiling for expenditure and for measuring of the eligible area for the purpose of the types of intervention referred to in Article 47(2), point (d), and in Article 58(1), first subparagraph, point (a); |
| --- | --- |

(e)

the rules for the fixing of a ceiling for expenditure and for measuring of the eligible area for the purpose of the types of intervention referred to in Article 47(2), point (d), and in Article 58(1), first subparagraph, point (a);

| (f) | the rules under which producers are to withdraw the by-products of winemaking, rules on exceptions to that obligation in order to avoid additional administrative burden and rules for the voluntary certification of distillers; |
| --- | --- |

(f)

the rules under which producers are to withdraw the by-products of winemaking, rules on exceptions to that obligation in order to avoid additional administrative burden and rules for the voluntary certification of distillers;

| (g) | the conditions to be applied for the use of forms of support listed in Article 44(1). |
| --- | --- |

(g)

the conditions to be applied for the use of forms of support listed in Article 44(1).

| (h) | the rules on minimum durability requirement for productive and non-productive investments supported by interventions included in this Chapter; |
| --- | --- |

(h)

the rules on minimum durability requirement for productive and non-productive investments supported by interventions included in this Chapter;

| (i) | the rules on the combination of funding for investments pursuant to Article 58(1), first subparagraph, point (b), and for promotion pursuant to Article 58(1), first subparagraph, point (k). |
| --- | --- |

(i)

the rules on the combination of funding for investments pursuant to Article 58(1), first subparagraph, point (b), and for promotion pursuant to Article 58(1), first subparagraph, point (k).

Article 46

Objectives in the fruit and vegetables sector, the hops sector, the olive oil and table olives sector and in the other sectors referred to in Article 42, point (f)

The objectives in the sectors referred to in Article 42, points (a), (d), (e) and (f), shall be the following:

| (a) | planning and organisation of production, adjusting production to demand, in particular with regard to quality and quantity, optimisation of production costs and returns on investments, and stabilising producer prices; those objectives relate to the specific objectives set out in Article 6(1), points (a), (b), (c) and (i); |
| --- | --- |

(a)

planning and organisation of production, adjusting production to demand, in particular with regard to quality and quantity, optimisation of production costs and returns on investments, and stabilising producer prices; those objectives relate to the specific objectives set out in Article 6(1), points (a), (b), (c) and (i);

| (b) | concentration of supply and placing on the market of the products, including through direct marketing; those objectives relate to the specific objectives set out in Article 6(1), points (a), (b) and (c); |
| --- | --- |

(b)

concentration of supply and placing on the market of the products, including through direct marketing; those objectives relate to the specific objectives set out in Article 6(1), points (a), (b) and (c);

| (c) | improvement of medium- and long-term competitiveness, in particular through modernisation; that objective relates to the specific objective set out in Article 6(1), point (c); |
| --- | --- |

(c)

improvement of medium- and long-term competitiveness, in particular through modernisation; that objective relates to the specific objective set out in Article 6(1), point (c);

| (d) | research into, and development of, sustainable production methods, including pest resilience, animal disease resistance and climate change mitigation and adaptation, innovative practices and production techniques boosting economic competitiveness and bolstering market developments; those objectives relate to the specific objectives set out in Article 6(1), points (a), (b), (c) and (i); |
| --- | --- |

(d)

research into, and development of, sustainable production methods, including pest resilience, animal disease resistance and climate change mitigation and adaptation, innovative practices and production techniques boosting economic competitiveness and bolstering market developments; those objectives relate to the specific objectives set out in Article 6(1), points (a), (b), (c) and (i);

| (e) | promoting, developing and implementing:






  (i) | production methods and techniques that are respectful of the environment; |
| --- | --- | --- |

(e)

promoting, developing and implementing:

(i)

production methods and techniques that are respectful of the environment;

| (ii) | pest and disease resilient production practices; |
| --- | --- |

(ii)

pest and disease resilient production practices;

| (iii) | animal health and welfare standards going beyond minimum requirements established under Union and national law; |
| --- | --- |

(iii)

animal health and welfare standards going beyond minimum requirements established under Union and national law;

| (iv) | reduction of waste and environmentally sound use and management of by-products, including their reuse and valorisation; |
| --- | --- |

(iv)

reduction of waste and environmentally sound use and management of by-products, including their reuse and valorisation;

| (v) | protection and enhancement of biodiversity and sustainable use of natural resources, in particular protection of water, soil and air. |
| --- | --- |

(v)

protection and enhancement of biodiversity and sustainable use of natural resources, in particular protection of water, soil and air.

Those objectives relate to the specific objectives set out in Article 6(1), points (e), (f) and (i);

| (f) | contributing to climate change mitigation and adaptation, as set out in Article 6(1), point (d); |
| --- | --- |

(f)

contributing to climate change mitigation and adaptation, as set out in Article 6(1), point (d);

| (g) | boosting products’ commercial value and quality, including improving product quality and developing products with a protected designation of origin or with a protected geographical indication or covered by Union or national quality schemes recognised by Member States; those objectives relate to the specific objective set out in Article 6(1), point (b); |
| --- | --- |

(g)

boosting products’ commercial value and quality, including improving product quality and developing products with a protected designation of origin or with a protected geographical indication or covered by Union or national quality schemes recognised by Member States; those objectives relate to the specific objective set out in Article 6(1), point (b);

| (h) | promotion and marketing of the products; those objectives relate to the specific objectives set out in Article 6(1), points (b), (c) and (i); |
| --- | --- |

(h)

promotion and marketing of the products; those objectives relate to the specific objectives set out in Article 6(1), points (b), (c) and (i);

| (i) | increasing consumption of the products of the fruit and vegetables sector, whether in a fresh or processed form; that objective relates to the specific objective set out in Article 6(1), point (i); |
| --- | --- |

(i)

increasing consumption of the products of the fruit and vegetables sector, whether in a fresh or processed form; that objective relates to the specific objective set out in Article 6(1), point (i);

| (j) | crisis prevention and risk management, aimed at avoiding and dealing with disturbances in the markets of the relevant sector; those objectives relate to the specific objectives set out in Article 6(1), points (a), (b) and (c); |
| --- | --- |

(j)

crisis prevention and risk management, aimed at avoiding and dealing with disturbances in the markets of the relevant sector; those objectives relate to the specific objectives set out in Article 6(1), points (a), (b) and (c);

| (k) | improving the conditions of employment and enforcing employer obligations as well as occupational health and safety requirements in accordance with Directives 89/391/EEC, 2009/104/EC and (EU) 2019/1152. |
| --- | --- |

(k)

improving the conditions of employment and enforcing employer obligations as well as occupational health and safety requirements in accordance with Directives 89/391/EEC, 2009/104/EC and (EU) 2019/1152.

Article 47

Types of intervention in the fruit and vegetables sector, the hops sector, the olive oil and table olives sector and in the other sectors referred to in Article 42, point (f)

1.   For each objective chosen from among those referred to in Article 46, points (a) to (i) and (k), Member States shall choose in their CAP Strategic Plans one or more of the following types of intervention in the sectors referred to in Article 42, points (a), (d), (e) and (f):

| (a) | investments in tangible and intangible assets, research and experimental and innovative production methods and other actions, in areas such as:






  (i) | soil conservation, including the enhancement of soil carbon and soil structure, and the reduction of contaminants; |
| --- | --- | --- |

(a)

investments in tangible and intangible assets, research and experimental and innovative production methods and other actions, in areas such as:

(i)

soil conservation, including the enhancement of soil carbon and soil structure, and the reduction of contaminants;

| (ii) | improvement of the use of and sound management of water, including water saving, water conservation and drainage; |
| --- | --- |

(ii)

improvement of the use of and sound management of water, including water saving, water conservation and drainage;

| (iii) | preventing damage caused by adverse climatic events and promoting the development and use of varieties, breeds and management practices adapted to changing climate conditions; |
| --- | --- |

(iii)

preventing damage caused by adverse climatic events and promoting the development and use of varieties, breeds and management practices adapted to changing climate conditions;

| (iv) | increasing energy saving, energy efficiency and the use of renewable energy; |
| --- | --- |

(iv)

increasing energy saving, energy efficiency and the use of renewable energy;

| (v) | ecological packaging, only in the field of research and experimental production; |
| --- | --- |

(v)

ecological packaging, only in the field of research and experimental production;

| (vi) | biosecurity, animal health and welfare; |
| --- | --- |

(vi)

biosecurity, animal health and welfare;

| (vii) | reducing emissions and waste, improving the use of by-products, including their reuse and valorisation, and the management of waste; |
| --- | --- |

(vii)

reducing emissions and waste, improving the use of by-products, including their reuse and valorisation, and the management of waste;

| (viii) | improving resilience against pests and reducing risks and impacts of pesticide use, including implementing Integrated Pest Management techniques; |
| --- | --- |

(viii)

improving resilience against pests and reducing risks and impacts of pesticide use, including implementing Integrated Pest Management techniques;

| (ix) | improving resilience against animal disease and reducing the use of veterinary medicines, including antibiotics; |
| --- | --- |

(ix)

improving resilience against animal disease and reducing the use of veterinary medicines, including antibiotics;

| (x) | creating and maintaining habitats favourable to biodiversity; |
| --- | --- |

(x)

creating and maintaining habitats favourable to biodiversity;

| (xi) | improving product quality; |
| --- | --- |

(xi)

improving product quality;

| (xii) | improving genetic resources; |
| --- | --- |

(xii)

improving genetic resources;

| (xiii) | improving the conditions of employment and enforcing employer obligations as well as occupational health and safety requirements in accordance with Directives 89/391/EEC, 2009/104/EC and (EU) 2019/1152; |
| --- | --- |

(xiii)

improving the conditions of employment and enforcing employer obligations as well as occupational health and safety requirements in accordance with Directives 89/391/EEC, 2009/104/EC and (EU) 2019/1152;

| (b) | advisory services and technical assistance, in particular concerning sustainable pest and disease control techniques, sustainable use of plant protection and animal health products, climate change adaptation and mitigation, the conditions of employment, employer obligations and occupational health and safety; |
| --- | --- |

(b)

advisory services and technical assistance, in particular concerning sustainable pest and disease control techniques, sustainable use of plant protection and animal health products, climate change adaptation and mitigation, the conditions of employment, employer obligations and occupational health and safety;

| (c) | training, including coaching and exchange of best practices, in particular concerning sustainable pest and disease control techniques, sustainable use of plant protection and animal health products, climate change adaptation and mitigation, as well as the use of organised trading platforms and commodity exchanges on the spot and futures market; |
| --- | --- |

(c)

training, including coaching and exchange of best practices, in particular concerning sustainable pest and disease control techniques, sustainable use of plant protection and animal health products, climate change adaptation and mitigation, as well as the use of organised trading platforms and commodity exchanges on the spot and futures market;

| (d) | organic or integrated production; |
| --- | --- |

(d)

organic or integrated production;

| (e) | actions to increase the sustainability and efficiency of transport and of storage of products; |
| --- | --- |

(e)

actions to increase the sustainability and efficiency of transport and of storage of products;

| (f) | promotion, communication and marketing including actions and activities aimed in particular at raising consumer awareness about the Union quality schemes and the importance of healthy diets, and at diversification and consolidation of markets; |
| --- | --- |

(f)

promotion, communication and marketing including actions and activities aimed in particular at raising consumer awareness about the Union quality schemes and the importance of healthy diets, and at diversification and consolidation of markets;

| (g) | implementation of Union and national quality schemes; |
| --- | --- |

(g)

implementation of Union and national quality schemes;

| (h) | implementation of traceability and certification systems, in particular the monitoring of the quality of products sold to final consumers; |
| --- | --- |

(h)

implementation of traceability and certification systems, in particular the monitoring of the quality of products sold to final consumers;

| (i) | actions to mitigate, and to adapt to, climate change. |
| --- | --- |

(i)

actions to mitigate, and to adapt to, climate change.

2.   As regards the objective referred to in Article 46, point (j), Member States shall choose in their CAP Strategic Plans one or more of the following types of intervention in the sectors referred to in Article 42, points (a), (d), (e) and (f):

| (a) | setting-up, filling and replenishing of mutual funds by producer organisations and by associations of producer organisations recognised under Regulation (EU) No 1308/2013, or under Article 67(7) of this Regulation; |
| --- | --- |

(a)

setting-up, filling and replenishing of mutual funds by producer organisations and by associations of producer organisations recognised under Regulation (EU) No 1308/2013, or under Article 67(7) of this Regulation;

| (b) | investments in tangible and intangible assets making the management of the volumes placed on the market more efficient including for collective storage; |
| --- | --- |

(b)

investments in tangible and intangible assets making the management of the volumes placed on the market more efficient including for collective storage;

| (c) | collective storage of products produced by the producer organisation or by its members, including where necessary collective processing to facilitate such storage; |
| --- | --- |

(c)

collective storage of products produced by the producer organisation or by its members, including where necessary collective processing to facilitate such storage;

| (d) | replanting of orchards or olive groves where that is necessary following mandatory grubbing up for health or phytosanitary reasons on the instruction of the Member State competent authority or to adapt to climate change; |
| --- | --- |

(d)

replanting of orchards or olive groves where that is necessary following mandatory grubbing up for health or phytosanitary reasons on the instruction of the Member State competent authority or to adapt to climate change;

| (e) | restocking with livestock after compulsory slaughter for health reasons or because of losses resulting from natural disasters; |
| --- | --- |

(e)

restocking with livestock after compulsory slaughter for health reasons or because of losses resulting from natural disasters;

| (f) | market withdrawal for free distribution or other destinations, including where necessary processing to facilitate such withdrawal; |
| --- | --- |

(f)

market withdrawal for free distribution or other destinations, including where necessary processing to facilitate such withdrawal;

| (g) | green harvesting, consisting of the total harvesting on a given area of unripe non-marketable products which have not been damaged prior to the green harvesting, whether due to climatic reasons, disease or otherwise; |
| --- | --- |

(g)

green harvesting, consisting of the total harvesting on a given area of unripe non-marketable products which have not been damaged prior to the green harvesting, whether due to climatic reasons, disease or otherwise;

| (h) | non-harvesting, consisting of the termination of the current production cycle on the area concerned where the product is well developed and is of sound, fair and marketable quality, excluding destruction of products due to a climatic event or disease; |
| --- | --- |

(h)

non-harvesting, consisting of the termination of the current production cycle on the area concerned where the product is well developed and is of sound, fair and marketable quality, excluding destruction of products due to a climatic event or disease;

| (i) | harvest and production insurance that contributes to safeguarding producers’ incomes where there are losses as a consequence of natural disasters, adverse climatic events, diseases or pest infestations while ensuring that beneficiaries take necessary risk prevention measures; |
| --- | --- |

(i)

harvest and production insurance that contributes to safeguarding producers’ incomes where there are losses as a consequence of natural disasters, adverse climatic events, diseases or pest infestations while ensuring that beneficiaries take necessary risk prevention measures;

| (j) | coaching to other producer organisations and associations of producer organisations recognised under Regulation (EU) No 1308/2013 or under Article 67(7) of this Regulation, or to individual producers; |
| --- | --- |

(j)

coaching to other producer organisations and associations of producer organisations recognised under Regulation (EU) No 1308/2013 or under Article 67(7) of this Regulation, or to individual producers;

| (k) | implementation and management of third-country sanitary and phytosanitary requirements in the territory of the Union to facilitate access to third-country markets; |
| --- | --- |

(k)

implementation and management of third-country sanitary and phytosanitary requirements in the territory of the Union to facilitate access to third-country markets;

| (l) | communication actions aiming at raising awareness and informing consumers. |
| --- | --- |

(l)

communication actions aiming at raising awareness and informing consumers.

Article 48

Planning, reporting and performance clearance at operational programme level

Article 7(1), point (a), Article 102, Article 111, points (g) and (h), Article 112(3), point (b), and Article 134 shall apply for the types of intervention in the sectors referred to in Article 42, points (a), (d), (e) and (f), at the level of operational programmes instead of at the level of intervention. The planning, reporting and performance clearance for those types of intervention shall also be carried out at the level of operational programmes.

Section 2

Fruit and vegetables sector

Article 49

Objectives in the fruit and vegetables sector

Member States shall pursue one or more of the objectives set out in Article 46 in the fruit and vegetables sector referred to in Article 42, point (a). The objectives set out in Article 46, points (g), (h), (i) and (k), shall cover the products whether in a fresh or processed form, while the objectives set out in the other points of that Article shall cover only products in fresh form.

Member States shall ensure that the interventions correspond to the types of intervention chosen in accordance with Article 47.

Article 50

Operational programmes

1.   The objectives referred to in Article 46 and the interventions in the fruit and vegetables sector set out by the Member States in their CAP Strategic Plans shall be implemented through approved operational programmes of producer organisations or associations of producer organisations recognised under Regulation (EU) No 1308/2013, or both, under the conditions laid down in this Article.

2.   Operational programmes shall have a minimum duration of three years and a maximum duration of seven years.

3.   Operational programmes shall pursue at least the objectives referred to in Article 46, points (b), (e) and (f).

4.   For each objective selected, the operational programmes shall describe the interventions selected from among those set out by the Member States in their CAP Strategic Plans.

5.   Producer organisations or associations of producer organisations recognised under Regulation (EU) No 1308/2013 shall submit operational programmes to Member States for approval and, if approved, shall implement them.

6.   Operational programmes of associations of producer organisations shall not cover the same interventions as operational programmes of member organisations. Member States shall consider operational programmes of associations of producer organisations together with operational programmes of member organisations.

To that end Member States shall ensure that:

| (a) | interventions under operational programmes of an association of producer organisations are entirely financed, without prejudice to Article 51(1), point (b), by contributions of the member organisations of that association and that such funding is collected from the operational funds of those member organisations; |
| --- | --- |

(a)

interventions under operational programmes of an association of producer organisations are entirely financed, without prejudice to Article 51(1), point (b), by contributions of the member organisations of that association and that such funding is collected from the operational funds of those member organisations;

| (b) | interventions and their corresponding financial share are identified in the operational programme of each member organisation; |
| --- | --- |

(b)

interventions and their corresponding financial share are identified in the operational programme of each member organisation;

| (c) | there is no duplication of funding. |
| --- | --- |

(c)

there is no duplication of funding.

7.   Member States shall ensure that, for each operational programme:

| (a) | at least 15 % of expenditure covers the interventions linked to the objectives referred to in Article 46, points (e) and (f); |
| --- | --- |

(a)

at least 15 % of expenditure covers the interventions linked to the objectives referred to in Article 46, points (e) and (f);

| (b) | the operational programme includes three or more actions linked to the objectives referred to in Article 46, points (e) and (f); |
| --- | --- |

(b)

the operational programme includes three or more actions linked to the objectives referred to in Article 46, points (e) and (f);

| (c) | at least 2 % of expenditure covers the interventions linked to the objective referred to in Article 46, point (d); and |
| --- | --- |

(c)

at least 2 % of expenditure covers the interventions linked to the objective referred to in Article 46, point (d); and

| (d) | the expenditure for interventions within the types of intervention referred to in Article 47(2), points (f), (g) and (h), does not exceed one third of the total expenditure. |
| --- | --- |

(d)

the expenditure for interventions within the types of intervention referred to in Article 47(2), points (f), (g) and (h), does not exceed one third of the total expenditure.

Where at least 80 % of the members of a producer organisation are subject to one or more identical agri-environment-climate or organic farming commitments provided for in Chapter IV, each of those commitments shall count as an action for the minimum of three referred to in the first subparagraph, point (b).

8.   Operational programmes may set out the actions proposed to ensure that workers in the sector enjoy fair and safe working conditions.

Article 51

Operational funds

1.   Any producer organisation in the fruit and vegetables sector or association of such producer organisations may set up an operational fund. The fund shall be financed by:

| (a) | financial contributions from:






  (i) | members of the producer organisation or the producer organisation itself or both; or |
| --- | --- | --- |

(a)

financial contributions from:

(i)

members of the producer organisation or the producer organisation itself or both; or

| (ii) | the association of producer organisations through the members of that association; |
| --- | --- |

(ii)

the association of producer organisations through the members of that association;

| (b) | Union financial assistance, which may be granted to producer organisations or to their associations where those organisations or associations submit an operational programme. |
| --- | --- |

(b)

Union financial assistance, which may be granted to producer organisations or to their associations where those organisations or associations submit an operational programme.

2.   Operational funds shall be used only to finance operational programmes that have been approved by the Member States.

Article 52

Union financial assistance to the fruit and vegetables sector

1.   The Union financial assistance shall be equal to the amount of the financial contributions referred to in Article 51(1), point (a), actually paid and limited to 50 % of the actual expenditure incurred.

2.   The Union financial assistance shall be limited to:

| (a) | 4,1 % of the value of the marketed production of each producer organisation; |
| --- | --- |

(a)

4,1 % of the value of the marketed production of each producer organisation;

| (b) | 4,5 % of the value of marketed production of each association of producer organisations; |
| --- | --- |

(b)

4,5 % of the value of marketed production of each association of producer organisations;

| (c) | 5 % of the value of marketed production of each transnational producer organisation or transnational association of producer organisations. |
| --- | --- |

(c)

5 % of the value of marketed production of each transnational producer organisation or transnational association of producer organisations.

Those limits may be increased by 0,5 percentage points provided that the amount in excess of the relevant percentage set out in the first subparagraph is used solely for one or more interventions linked to the objectives referred to in Article 46, points (d), (e), (f), (h), (i) and (j). In the case of associations of producer organisations, including transnational associations of producer organisations, those interventions may be implemented by the association on behalf of its members.

3.   At the request of a producer organisation or of an association of producer organisations, the 50 % limit provided for in paragraph 1 shall be increased to 60 % for an operational programme or part of an operational programme if at least one of the following applies:

| (a) | transnational producer organisations implement in two or more Member States interventions linked to the objectives referred to in Article 46, points (b), (e) and (f); |
| --- | --- |

(a)

transnational producer organisations implement in two or more Member States interventions linked to the objectives referred to in Article 46, points (b), (e) and (f);

| (b) | one or more producer organisations or associations of producer organisations are engaged in interventions operated on an interbranch basis; |
| --- | --- |

(b)

one or more producer organisations or associations of producer organisations are engaged in interventions operated on an interbranch basis;

| (c) | the operational programme covers solely specific support for the production of organic products covered by Regulation (EU) 2018/848; |
| --- | --- |

(c)

the operational programme covers solely specific support for the production of organic products covered by Regulation (EU) 2018/848;

| (d) | the producer organisation or the association of producer organisations recognised under Regulation (EU) No 1308/2013 implements for the first time an operational programme; |
| --- | --- |

(d)

the producer organisation or the association of producer organisations recognised under Regulation (EU) No 1308/2013 implements for the first time an operational programme;

| (e) | producer organisations market less than 20 % of fruit and vegetable production in a Member State; |
| --- | --- |

(e)

producer organisations market less than 20 % of fruit and vegetable production in a Member State;

| (f) | the producer organisation operates in one of the outermost regions; |
| --- | --- |

(f)

the producer organisation operates in one of the outermost regions;

| (g) | the operational programme comprises the interventions linked to the objectives referred to in Article 46, points (d), (e), (f), (i) and (j); |
| --- | --- |

(g)

the operational programme comprises the interventions linked to the objectives referred to in Article 46, points (d), (e), (f), (i) and (j);

| (h) | the operational programme is for the first time implemented by a recognised producer organisation which is the result of a merger between two or more recognised producer organisations. |
| --- | --- |

(h)

the operational programme is for the first time implemented by a recognised producer organisation which is the result of a merger between two or more recognised producer organisations.

4.   The 50 % limit provided for in paragraph 1 shall be increased to 80 % for expenditure linked to the objective referred to in Article 46, point (d), if that expenditure covers at least 5 % of the expenditure under the operational programme.

5.   The 50 % limit provided for in paragraph 1 shall be increased to 80 % for expenditure linked to the objectives referred to in Article 46, points (e) and (f), if that expenditure covers at least 20 % of the expenditure under the operational programme.

6.   The 50 % limit provided for in paragraph 1 shall be increased to 100 % in the following cases:

| (a) | market withdrawals of fruit and vegetables which do not exceed 5 % of the volume of marketed production of each producer organisation and which are disposed of by way of:






  (i) | free distribution to charitable organisations and foundations approved to that effect by the Member States, for use in their activities to assist persons whose right to public assistance is recognised in national law, in particular because they lack the necessary means of subsistence; |
| --- | --- | --- |

(a)

market withdrawals of fruit and vegetables which do not exceed 5 % of the volume of marketed production of each producer organisation and which are disposed of by way of:

(i)

free distribution to charitable organisations and foundations approved to that effect by the Member States, for use in their activities to assist persons whose right to public assistance is recognised in national law, in particular because they lack the necessary means of subsistence;

| (ii) | free distribution to penal institutions, schools and public education institutions, establishments referred to in Article 22 of Regulation (EU) No 1308/2013 and to children’s holiday camps as well as to hospitals and old people’s homes designated by the Member States, which shall take all necessary steps to ensure that the quantities thus distributed are additional to the quantities normally bought in by such establishments; |
| --- | --- |

(ii)

free distribution to penal institutions, schools and public education institutions, establishments referred to in Article 22 of Regulation (EU) No 1308/2013 and to children’s holiday camps as well as to hospitals and old people’s homes designated by the Member States, which shall take all necessary steps to ensure that the quantities thus distributed are additional to the quantities normally bought in by such establishments;

| (b) | actions related to coaching of other producer organisations recognised under Regulation (EU) No 1308/2013, provided that those producer organisations are from regions of Member States referred to in Article 53(2) of this Regulation, or of individual producers. |
| --- | --- |

(b)

actions related to coaching of other producer organisations recognised under Regulation (EU) No 1308/2013, provided that those producer organisations are from regions of Member States referred to in Article 53(2) of this Regulation, or of individual producers.

Article 53

National financial assistance

1.   In regions of the Member States in which the degree of organisation of producers in the fruit and vegetables sector is significantly below the Union average, Member States may grant producer organisations recognised under Regulation (EU) No 1308/2013 national financial assistance equal to a maximum of 80 % of the financial contributions referred to in Article 51(1), point (a), of this Regulation and up to 10 % of the value of the marketed production of any such producer organisation. The national financial assistance shall be additional to the operational fund.

2.   The degree of organisation of producers in a region of a Member State shall be considered to be significantly below the Union average where the average degree of organisation has been less than 20 % for three consecutive years preceding the implementation of the operational programme. The degree of organisation shall be calculated as the value of fruit and vegetable production that was obtained in the region concerned and marketed by producer organisations and associations of producer organisations recognised under Regulation (EU) No 1308/2013, divided by the total value of the fruit and vegetable production that was obtained in that region.

3.   Member States that grant national financial assistance in accordance with paragraph 1 shall inform the Commission of the regions that meet the criteria referred to in paragraph 2 and of the national financial assistance granted to producer organisations in those regions.

Section 3

Apiculture sector

Article 54

Objectives in the apiculture sector

The Member States shall pursue at least one of the relevant specific objectives set out in Article 6(1) in the apiculture sector.

Article 55

Types of intervention in the apiculture sector and Union financial assistance

1.   Member States shall choose in their CAP Strategic Plans for each chosen specific objective set out in Article 6(1) one or more of the following types of intervention in the apiculture sector:

| (a) | advisory services, technical assistance, training, information and exchange of best practices, including through networking, for beekeepers and beekeepers’ organisations; |
| --- | --- |

(a)

advisory services, technical assistance, training, information and exchange of best practices, including through networking, for beekeepers and beekeepers’ organisations;

| (b) | investments in tangible and intangible assets, as well as other actions, including for:






  (i) | combatting beehive invaders and diseases, in particular varroasis; |
| --- | --- | --- |

(b)

investments in tangible and intangible assets, as well as other actions, including for:

(i)

combatting beehive invaders and diseases, in particular varroasis;

| (ii) | preventing damage caused by adverse climatic events and promoting the development and use of management practices adapted to changing climate conditions; |
| --- | --- |

(ii)

preventing damage caused by adverse climatic events and promoting the development and use of management practices adapted to changing climate conditions;

| (iii) | restocking of beehives in the Union, including bee breeding; |
| --- | --- |

(iii)

restocking of beehives in the Union, including bee breeding;

| (iv) | rationalising transhumance; |
| --- | --- |

(iv)

rationalising transhumance;

| (c) | actions to support laboratories for the analysis of apiculture products, bee losses or productivity drops, and substances potentially toxic to bees; |
| --- | --- |

(c)

actions to support laboratories for the analysis of apiculture products, bee losses or productivity drops, and substances potentially toxic to bees;

| (d) | actions to preserve or increase the existing number of beehives in the Union, including bee breeding; |
| --- | --- |

(d)

actions to preserve or increase the existing number of beehives in the Union, including bee breeding;

| (e) | cooperation with specialised bodies for the implementation of research programmes in the field of beekeeping and apiculture products; |
| --- | --- |

(e)

cooperation with specialised bodies for the implementation of research programmes in the field of beekeeping and apiculture products;

| (f) | promotion, communication and marketing including market monitoring actions and activities aimed in particular at raising consumer awareness about the quality of apiculture products; |
| --- | --- |

(f)

promotion, communication and marketing including market monitoring actions and activities aimed in particular at raising consumer awareness about the quality of apiculture products;

| (g) | actions to enhance product quality. |
| --- | --- |

(g)

actions to enhance product quality.

2.   Member States shall substantiate in their CAP Strategic Plans their choice of specific objectives and types of intervention. Within the chosen types of intervention, they shall specify interventions.

3.   Member States shall set out in their CAP Strategic Plans the funding provided by them for the types of intervention chosen in their CAP Strategic Plans.

4.   Member States shall provide at least the same amount of funding as the Union financial assistance they use on the basis of Article 88(2) for supporting the types of intervention referred to in paragraph 2 of this Article.

5.   The total financial assistance provided by the Union and Member States shall not exceed the expenditure incurred by the beneficiary.

6.   When drawing up their CAP Strategic Plans, Member States shall collaborate with the representatives of organisations in the beekeeping field.

7.   Member States shall notify the Commission annually of the number of beehives in their territory.

Article 56

Additional delegated powers for types of intervention in the apiculture sector

The Commission shall be empowered to adopt delegated acts in accordance with Article 152 supplementing this Regulation with requirements additional to those laid down in this Section concerning:

| (a) | the obligation of Member States to notify the Commission annually of the number of beehives in their territory laid down in Article 55(7); |
| --- | --- |

(a)

the obligation of Member States to notify the Commission annually of the number of beehives in their territory laid down in Article 55(7);

| (b) | a definition of ‘beehive’ and methods for calculating the number of beehives; |
| --- | --- |

(b)

a definition of ‘beehive’ and methods for calculating the number of beehives;

| (c) | the minimum Union contribution to the expenditure related to the implementation of the types of intervention and interventions referred to in Article 55. |
| --- | --- |

(c)

the minimum Union contribution to the expenditure related to the implementation of the types of intervention and interventions referred to in Article 55.

Section 4

Wine sector

Article 57

Objectives in the wine sector

The Member States referred to in Article 88(1) shall pursue one or more of the following objectives in the wine sector:

| (a) | improving the economic sustainability and competitiveness of Union wine producers; that objective relates to the specific objectives set out in Article 6(1), points (a), (b), (c) and (h); |
| --- | --- |

(a)

improving the economic sustainability and competitiveness of Union wine producers; that objective relates to the specific objectives set out in Article 6(1), points (a), (b), (c) and (h);

| (b) | contributing to climate change mitigation and adaptation and to the improvement of the sustainability of production systems and the reduction of the environmental impact of the Union wine sector, including by supporting winegrowers in reducing the use of inputs and implementing more environmentally sustainable methods and cultivation practices; those objectives relate to the specific objectives set out in Article 6(1), points (d) to (f) and (i); |
| --- | --- |

(b)

contributing to climate change mitigation and adaptation and to the improvement of the sustainability of production systems and the reduction of the environmental impact of the Union wine sector, including by supporting winegrowers in reducing the use of inputs and implementing more environmentally sustainable methods and cultivation practices; those objectives relate to the specific objectives set out in Article 6(1), points (d) to (f) and (i);

| (c) | improving the conditions of employment and enforcing employer obligations as well as occupational health and safety requirements in accordance with Directives 89/391/EEC, 2009/104/EC and (EU) 2019/1152; |
| --- | --- |

(c)

improving the conditions of employment and enforcing employer obligations as well as occupational health and safety requirements in accordance with Directives 89/391/EEC, 2009/104/EC and (EU) 2019/1152;

| (d) | improving the performance of Union wine enterprises and their adaptation to market demands, as well as increasing their long-term competitiveness in the production and marketing of grapevine products, including energy savings, global energy efficiency and sustainable processes; those objectives relate to the specific objectives set out in Article 6(1), points (a), to (e), (g) and (h); |
| --- | --- |

(d)

improving the performance of Union wine enterprises and their adaptation to market demands, as well as increasing their long-term competitiveness in the production and marketing of grapevine products, including energy savings, global energy efficiency and sustainable processes; those objectives relate to the specific objectives set out in Article 6(1), points (a), to (e), (g) and (h);

| (e) | contributing to restoring the balance of supply and demand in the Union wine market in order to prevent market crises; that objective relates to the specific objective set out in Article 6(1), point (a); |
| --- | --- |

(e)

contributing to restoring the balance of supply and demand in the Union wine market in order to prevent market crises; that objective relates to the specific objective set out in Article 6(1), point (a);

| (f) | contributing to safeguarding Union producers’ incomes where they incur losses as a consequence of natural disasters, adverse climatic events, animals, diseases or pest infestations; that objective relates to the specific objective set out in Article 6(1), point (a); |
| --- | --- |

(f)

contributing to safeguarding Union producers’ incomes where they incur losses as a consequence of natural disasters, adverse climatic events, animals, diseases or pest infestations; that objective relates to the specific objective set out in Article 6(1), point (a);

| (g) | increasing the marketability and competitiveness of Union grapevine products, in particular through the development of innovative products, processes and technologies, and the addition of value at any stage of the supply chain; that objective may include knowledge transfer and relates to the specific objectives set out in Article 6(1), points (a), (b), (c), (e) and (i); |
| --- | --- |

(g)

increasing the marketability and competitiveness of Union grapevine products, in particular through the development of innovative products, processes and technologies, and the addition of value at any stage of the supply chain; that objective may include knowledge transfer and relates to the specific objectives set out in Article 6(1), points (a), (b), (c), (e) and (i);

| (h) | sustaining the use of wine making by-products for industrial and energy purposes in order to ensure the quality of Union wine while protecting the environment; that objective relates to the specific objectives set out in Article 6(1), points (d) and (e); |
| --- | --- |

(h)

sustaining the use of wine making by-products for industrial and energy purposes in order to ensure the quality of Union wine while protecting the environment; that objective relates to the specific objectives set out in Article 6(1), points (d) and (e);

| (i) | contributing to increasing consumer awareness about responsible consumption of wine and about Union quality schemes for wine; that objective relates to the specific objectives set out in Article 6(1), points (b) and (i); |
| --- | --- |

(i)

contributing to increasing consumer awareness about responsible consumption of wine and about Union quality schemes for wine; that objective relates to the specific objectives set out in Article 6(1), points (b) and (i);

| (j) | improving the competitiveness of Union grapevine products in third countries, including the opening and diversification of the wine markets; that objective relates to the specific objectives set out in Article 6(1), points (b) and (h); |
| --- | --- |

(j)

improving the competitiveness of Union grapevine products in third countries, including the opening and diversification of the wine markets; that objective relates to the specific objectives set out in Article 6(1), points (b) and (h);

| (k) | contributing to increasing resilience of producers against market fluctuations; that objective relates to the specific objective set out in Article 6(1), point (a). |
| --- | --- |

(k)

contributing to increasing resilience of producers against market fluctuations; that objective relates to the specific objective set out in Article 6(1), point (a).

Article 58

Types of intervention in the wine sector

1.   For each objective chosen from among those laid down in Article 57, the Member States referred to in Article 88(1) shall choose in their CAP Strategic Plans one or more of the following types of intervention:

| (a) | restructuring and conversion of vineyards, which is a process consisting of one or more of the following:






  (i) | varietal conversions, also by means of grafting-on, including for improving the quality or environmental sustainability, for reasons of adaptation to climate change or for the enhancement of genetic diversity; |
| --- | --- | --- |

(a)

restructuring and conversion of vineyards, which is a process consisting of one or more of the following:

(i)

varietal conversions, also by means of grafting-on, including for improving the quality or environmental sustainability, for reasons of adaptation to climate change or for the enhancement of genetic diversity;

| (ii) | relocation of vineyards; |
| --- | --- |

(ii)

relocation of vineyards;

| (iii) | replanting of vineyards where that is necessary following mandatory grubbing up for health or phytosanitary reasons on the instruction of the Member State competent authority; |
| --- | --- |

(iii)

replanting of vineyards where that is necessary following mandatory grubbing up for health or phytosanitary reasons on the instruction of the Member State competent authority;

| (iv) | improvements to vineyard management techniques, in particular the introduction of advanced systems of sustainable production including the reduction of the use of pesticides, but excluding the normal renewal of vineyards consisting of replanting with the same grape variety according to the same system of vine cultivation when vines have to come to the end of their natural life; |
| --- | --- |

(iv)

improvements to vineyard management techniques, in particular the introduction of advanced systems of sustainable production including the reduction of the use of pesticides, but excluding the normal renewal of vineyards consisting of replanting with the same grape variety according to the same system of vine cultivation when vines have to come to the end of their natural life;

| (b) | investments in tangible and intangible assets in wine-growing farming systems, excluding operations relevant to the type of intervention provided for in point (a), in processing facilities and winery infrastructure, as well as in marketing structures and tools; |
| --- | --- |

(b)

investments in tangible and intangible assets in wine-growing farming systems, excluding operations relevant to the type of intervention provided for in point (a), in processing facilities and winery infrastructure, as well as in marketing structures and tools;

| (c) | green harvesting, which means the total destruction or removal of grape bunches while still in their immature stage, thereby reducing the yield of the relevant area to zero, and excluding non-harvesting comprising of leaving commercial grapes on the plants at the end of the normal production cycle; |
| --- | --- |

(c)

green harvesting, which means the total destruction or removal of grape bunches while still in their immature stage, thereby reducing the yield of the relevant area to zero, and excluding non-harvesting comprising of leaving commercial grapes on the plants at the end of the normal production cycle;

| (d) | harvest insurance against income losses resulting from adverse climatic events assimilated to natural disasters, adverse climatic events, damages caused by animals, plant diseases or pest infestations; |
| --- | --- |

(d)

harvest insurance against income losses resulting from adverse climatic events assimilated to natural disasters, adverse climatic events, damages caused by animals, plant diseases or pest infestations;

| (e) | tangible and intangible investments in innovation consisting of development of innovative products, including products from, and by-products of, wine making, innovative processes and technologies for the production of wine products and the digitalisation of those processes and technologies, as well as other investments adding value at any stage of the supply chain, including for knowledge exchange and contribution to adaptation to the climate change; |
| --- | --- |

(e)

tangible and intangible investments in innovation consisting of development of innovative products, including products from, and by-products of, wine making, innovative processes and technologies for the production of wine products and the digitalisation of those processes and technologies, as well as other investments adding value at any stage of the supply chain, including for knowledge exchange and contribution to adaptation to the climate change;

| (f) | advisory services, in particular concerning the conditions of employment, employer obligations and occupational health and safety; |
| --- | --- |

(f)

advisory services, in particular concerning the conditions of employment, employer obligations and occupational health and safety;

| (g) | distillation of by-products of wine making carried out in accordance with the restrictions laid down in Part II, Section D, of Annex VIII to Regulation (EU) No 1308/2013; |
| --- | --- |

(g)

distillation of by-products of wine making carried out in accordance with the restrictions laid down in Part II, Section D, of Annex VIII to Regulation (EU) No 1308/2013;

| (h) | information actions concerning Union wines carried out in Member States encouraging responsible consumption of wine or promoting Union quality schemes covering designations of origin and geographical indications; |
| --- | --- |

(h)

information actions concerning Union wines carried out in Member States encouraging responsible consumption of wine or promoting Union quality schemes covering designations of origin and geographical indications;

| (i) | actions undertaken by interbranch organisations recognised by Member States in the wine sector in accordance with Regulation (EU) No 1308/2013 aiming at enhancing the reputation of Union vineyards by promoting wine tourism in production regions; |
| --- | --- |

(i)

actions undertaken by interbranch organisations recognised by Member States in the wine sector in accordance with Regulation (EU) No 1308/2013 aiming at enhancing the reputation of Union vineyards by promoting wine tourism in production regions;

| (j) | actions undertaken by interbranch organisations recognised by Member States in the wine sector in accordance with Regulation (EU) No 1308/2013 aiming at improving market knowledge; |
| --- | --- |

(j)

actions undertaken by interbranch organisations recognised by Member States in the wine sector in accordance with Regulation (EU) No 1308/2013 aiming at improving market knowledge;

| (k) | promotion and communication carried out in third countries, consisting of one or more of the following actions and activities aimed at improving the competitiveness of the wine sector, and the opening, diversification or consolidation of the markets:






  (i) | public relations, promotion or advertisement actions, in particular highlighting the high standards of the Union products, especially in terms of quality, food safety or the environment; |
| --- | --- | --- |

(k)

promotion and communication carried out in third countries, consisting of one or more of the following actions and activities aimed at improving the competitiveness of the wine sector, and the opening, diversification or consolidation of the markets:

(i)

public relations, promotion or advertisement actions, in particular highlighting the high standards of the Union products, especially in terms of quality, food safety or the environment;

| (ii) | participation in events, fairs or exhibitions of international importance; |
| --- | --- |

(ii)

participation in events, fairs or exhibitions of international importance;

| (iii) | information campaigns, in particular on the Union quality schemes concerning designations of origin, geographical indications and organic production; |
| --- | --- |

(iii)

information campaigns, in particular on the Union quality schemes concerning designations of origin, geographical indications and organic production;

| (iv) | studies of new or existing markets which are necessary for the expansion and consolidation of market outlets; |
| --- | --- |

(iv)

studies of new or existing markets which are necessary for the expansion and consolidation of market outlets;

| (v) | studies to evaluate the results of the information and promotion operations; |
| --- | --- |

(v)

studies to evaluate the results of the information and promotion operations;

| (vi) | preparation of technical files, including laboratory tests and assessments, concerning oenological practices, phytosanitary and hygiene rules, as well as other third-country requirements for import of products of the wine sector, to prevent restriction of, or to enable, access to third-country markets; |
| --- | --- |

(vi)

preparation of technical files, including laboratory tests and assessments, concerning oenological practices, phytosanitary and hygiene rules, as well as other third-country requirements for import of products of the wine sector, to prevent restriction of, or to enable, access to third-country markets;

| (l) | temporary and degressive assistance to cover administrative costs of setting up mutual funds; |
| --- | --- |

(l)

temporary and degressive assistance to cover administrative costs of setting up mutual funds;

| (m) | investments in tangible and intangible assets aiming to enhance the sustainability of wine production by:






  (i) | improving the use and management of water; |
| --- | --- | --- |

(m)

investments in tangible and intangible assets aiming to enhance the sustainability of wine production by:

(i)

improving the use and management of water;

| (ii) | converting to organic production; |
| --- | --- |

(ii)

converting to organic production;

| (iii) | introducing integrated production techniques; |
| --- | --- |

(iii)

introducing integrated production techniques;

| (iv) | purchasing equipment for precision or digitised production methods; |
| --- | --- |

(iv)

purchasing equipment for precision or digitised production methods;

| (v) | contributing to soil conservation and enhancement of soil carbon sequestration; |
| --- | --- |

(v)

contributing to soil conservation and enhancement of soil carbon sequestration;

| (vi) | creating or preserving habitats favourable for biodiversity or maintaining landscape, including the conservation of historical features; or |
| --- | --- |

(vi)

creating or preserving habitats favourable for biodiversity or maintaining landscape, including the conservation of historical features; or

| (vii) | reducing waste production and improving waste management. |
| --- | --- |

(vii)

reducing waste production and improving waste management.

The first subparagraph, point (k), shall apply only to wines with a protected designation of origin or a protected geographical indication or wines with an indication of the wine grape variety. Promotion and communication operations aimed at the consolidation of market outlets shall be limited to a maximum non-extendable duration of three years, and shall concern only the Union quality schemes covering designations of origin and geographical indications.

2.   The Member States referred to in Article 88(1) shall substantiate in their CAP Strategic Plans their choice of objectives and the types of intervention in the wine sector. Within the chosen types of intervention, they shall specify interventions.

Member States that chose the types of intervention provided for in paragraph 1, first subparagraph, point (k), of this Article shall lay down specific provisions for the information and promotion actions and activities, in particular with regard to their maximum duration.

3.   In addition to the requirements set out in Title V, the Member States referred to in Article 88(1) shall set out in their CAP Strategic Plans an implementation schedule for the chosen types of intervention, interventions and a general financial table showing the resources to be deployed and the envisaged allocation of resources between the chosen types of intervention and between interventions in accordance with the financial allocations laid down in Annex VII.

Article 59

Union financial assistance to the wine sector

1.   The Union financial assistance for restructuring and conversion of vineyards referred to in Article 58(1), first subparagraph, point (a), shall not exceed 50 % of the actual costs of restructuring and conversion of vineyards, or 75 % of the actual costs of restructuring and conversion of vineyards in less developed regions.

However, that financial assistance may, for steep slopes and terraces in zones where the inclination is greater than 40 %, go up to 60 % of the actual costs of restructuring and conversion of vineyards, or up to 80 % of the actual costs of restructuring and conversion of vineyards in less developed regions.

The assistance may only take the form of compensation to producers for loss of revenue due to the implementation of the intervention and contribution to the costs of restructuring and conversion. The compensation to producers for loss of revenue due to the implementation of the intervention may cover up to 100 % of the relevant loss and take one of the following forms:

| (a) | the permission for old and new vines to coexist for a maximum period which shall not exceed three years; |
| --- | --- |

(a)

the permission for old and new vines to coexist for a maximum period which shall not exceed three years;

| (b) | financial compensation for a maximum period which shall not exceed three years. |
| --- | --- |

(b)

financial compensation for a maximum period which shall not exceed three years.

2.   The Union financial assistance for investments referred to in Article 58(1), first subparagraph, point (b), shall not exceed:

| (a) | 50 % of eligible investment costs in less developed regions; |
| --- | --- |

(a)

50 % of eligible investment costs in less developed regions;

| (b) | 40 % of eligible investment costs in regions other than less developed regions; |
| --- | --- |

(b)

40 % of eligible investment costs in regions other than less developed regions;

| (c) | 75 % of eligible investment costs in the outermost regions; |
| --- | --- |

(c)

75 % of eligible investment costs in the outermost regions;

| (d) | 65 % of eligible investment costs in the smaller Aegean islands. |
| --- | --- |

(d)

65 % of eligible investment costs in the smaller Aegean islands.

The Union financial assistance at the maximum rate set out in the first subparagraph shall only be granted to micro, small and medium-sized enterprises within the meaning of Commission Recommendation 2003/361/EC (43). However, it may be granted to all enterprises in the outermost regions and in the smaller Aegean islands.

For enterprises not covered by Article 2(1) of the Annex to Recommendation 2003/361/EC, with fewer than 750 employees or with an annual turnover of less than EUR 200 million, the maximum levels of Union financial assistance set out in the first subparagraph of this paragraph shall be halved.

No Union financial assistance shall be granted to enterprises in difficulty within the meaning of the Commission communication entitled ‘Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty’ (44).

3.   The Union financial assistance for green harvesting referred to in Article 58(1), first subparagraph, point (c), shall not exceed 50 % of the sum of the direct costs of the destruction or removal of grape bunches and the loss of revenue related to such destruction or removal.

4.   The Union financial assistance for the interventions referred to in Article 58(1), first subparagraph, points (i), (j) and (m), shall not exceed 50 % of the direct or eligible costs.

5.   The Union financial assistance for harvest insurance referred to in Article 58(1), first subparagraph, point (d), shall not exceed:

| (a) | 80 % of the cost of the insurance premiums paid by producers for insurance against losses resulting from adverse climatic events which can be assimilated to natural disasters; |
| --- | --- |

(a)

80 % of the cost of the insurance premiums paid by producers for insurance against losses resulting from adverse climatic events which can be assimilated to natural disasters;

| (b) | 50 % of the cost of insurance premiums paid by producers for insurance against:






  (i) | losses referred to in point (a) and losses caused by other adverse climatic events; |
| --- | --- | --- |

(b)

50 % of the cost of insurance premiums paid by producers for insurance against:

(i)

losses referred to in point (a) and losses caused by other adverse climatic events;

| (ii) | losses caused by animals, plant diseases or pest infestations. |
| --- | --- |

(ii)

losses caused by animals, plant diseases or pest infestations.

Union financial assistance for harvest insurance may be granted if insurance payments concerned do not compensate producers for more than 100 % of the income loss suffered, taking into account any compensation the producers may have obtained from other support schemes related to the insured risk. Insurance contracts shall require beneficiaries to undertake necessary risk prevention measures.

6.   The Union financial assistance for innovation referred to in Article 58(1), first subparagraph, point (e), shall not exceed:

| (a) | 50 % of eligible investment costs in less developed regions; |
| --- | --- |

(a)

50 % of eligible investment costs in less developed regions;

| (b) | 40 % of eligible investment costs in regions other than less developed regions; |
| --- | --- |

(b)

40 % of eligible investment costs in regions other than less developed regions;

| (c) | 80 % of eligible investment costs in the outermost regions; |
| --- | --- |

(c)

80 % of eligible investment costs in the outermost regions;

| (d) | 65 % of eligible investment costs in the smaller Aegean islands. |
| --- | --- |

(d)

65 % of eligible investment costs in the smaller Aegean islands.

The Union financial assistance at its maximum rate set out in the first subparagraph shall be granted only to micro, small and medium-sized enterprises within the meaning of Recommendation 2003/361/EC; however, it may be granted to all enterprises in the outermost regions and in the smaller Aegean islands.

For enterprises not covered by Article 2(1) of the Annex to Recommendation 2003/361/EC, with fewer than 750 employees or with an annual turnover of less than EUR 200 million, the maximum levels of Union financial assistance set out in the first subparagraph of this paragraph shall be halved.

7.   The Union financial assistance for information actions and promotion referred to in Article 58(1), first subparagraph, points (h) and (k), shall not exceed 50 % of eligible expenditure.

In addition, the Member States referred to in Article 88(1) may grant national payments up to 30 % of eligible expenditure, but Union financial assistance and Member State payments shall together not exceed 80 % of eligible expenditure.

8.   The Commission shall adopt implementing acts fixing the Union financial assistance for distillation of by-products of wine making referred to in Article 58(1), first subparagraph, point (g), in accordance with the specific rules laid down in Article 60(3). Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 153(2).

Article 60

Specific rules on Union financial assistance to the wine sector

1.   The Member States referred to in Article 88(1) shall ensure that the Union financial assistance for harvest insurance does not distort competition in the insurance market.

2.   The Member States referred to in Article 88(1) shall establish a system based on objective criteria to ensure that green harvesting does not lead to compensation of individual producers in excess of the limit laid down in Article 59(3).

3.   The amount of the Union assistance for distillation of by-products of wine making referred to in Article 58(1), first subparagraph, point (g), shall be fixed per % volume and per hectolitre of alcohol produced. No Union financial assistance shall be paid for the volume of alcohol contained in the by-products to be distilled which exceeds 10 % in relation to the volume of alcohol contained in the wine produced.

The Member States referred to in Article 88(1) shall ensure that the Union financial assistance for distillation of by-products of wine making is paid to distillers that process by-products of winemaking delivered for distillation into raw alcohol with an alcoholic strength of at least 92 % by volume.

The Union financial assistance shall include a lump sum amount to compensate for the costs of collection of the by-products of winemaking. That amount shall be transferred from the distiller to the producer in cases where the relevant costs are borne by the latter.

The Member States referred to in Article 88(1) shall ensure that the alcohol resulting from the distillation of by-products of winemaking for which a Union financial assistance has been granted is used exclusively for industrial or energy purposes that do not distort competition.

4.   The Member States referred to in Article 88(1) shall ensure in their CAP Strategic Plans that at least 5 % of the expenditure is earmarked and at least one action is adopted to meet the objectives in favour of protection of the environment, adaptation to climate change, improving sustainability of production systems and processes, reduction of environmental impact of the Union wine sector, energy savings and improving global energy efficiency in the wine sector, in accordance with the objectives laid down in Article 57, points (b), (d) and (h).

Section 5

Hops sector

Article 61

Objectives and types of intervention in the hops sector

1.   Germany shall pursue in the hops sector one or more of the objectives set out in Article 46, points (a) to (h), (j) and (k).

2.   Germany shall choose in its CAP Strategic Plan one or more of the types of intervention referred to in Article 47 to pursue the objectives chosen as laid down in paragraph 1 of this Article. Within the chosen types of intervention, Germany shall specify interventions. It shall substantiate in its CAP Strategic Plan the choice of objectives, types of intervention and interventions to meet those objectives.

3.   The interventions specified by Germany shall be implemented through approved operational programmes of producer organisations or their associations recognised under Regulation (EU) No 1308/2013.

4.   The operational programmes referred to in paragraph 3 shall fulfil the conditions laid down in Article 50(2), (4), (5), (6) and (8).

5.   Germany shall ensure that the Union financial assistance provided to each producer organisation or association of producer organisations under this Article for the types of intervention referred to in Article 47(2), points (f), (g) and (h), does not exceed, in average over three consecutive years, one third of the total Union financial assistance received for its operational programme over the same period.

Article 62

Union financial assistance

1.   Within the financial allocation set out in Article 88(3), Germany shall allocate the maximum Union financial assistance to the producer organisations or their associations implementing the operational programmes referred to in Article 61(3) in proportion to the number of hectares cultivated with hops represented by each producer organisation.

2.   Within the maximum amounts allocated to each producer organisation or association of producer organisations pursuant to paragraph 1, the Union financial assistance to the operational programmes referred to in Article 61 shall be limited to 50 % of the actual expenditure incurred for the types of intervention referred to in that Article. The remaining part of the expenditure shall be borne by the producer organisation or association benefitting from the Union financial assistance.

The Union financial assistance shall be paid to operational funds set up by the producer organisations or their associations recognised under Regulation (EU) No 1308/2013 implementing the operational programmes. For this purpose, Article 51 of this Regulation shall apply mutatis mutandis.

3.   The 50 % limit provided for in paragraph 2 shall be increased to 100 %:

| (a) | for types of intervention linked to one or more of the objectives referred to in Article 46, points (d), (e), (f) and (h); |
| --- | --- |

(a)

for types of intervention linked to one or more of the objectives referred to in Article 46, points (d), (e), (f) and (h);

| (b) | for the interventions of collective storage, advisory services, technical assistance, training and exchange of best practices linked to either or both of the objectives referred to in Article 46, points (a) and (j). |
| --- | --- |

(b)

for the interventions of collective storage, advisory services, technical assistance, training and exchange of best practices linked to either or both of the objectives referred to in Article 46, points (a) and (j).

Section 6

Olive oil and table olives sector

Article 63

Objectives in the olive oil and table olives sector

Greece, France and Italy shall pursue in the olive oil and table olives sector one or more of the objectives set out in Article 46, points (a) to (h), (j) and (k).

Article 64

Types of intervention in the olive oil and table olives sector

1.   To pursue the objectives referred to in Article 63, Greece, France and Italy shall choose in their CAP Strategic Plans one or more of the types of intervention referred to in Article 47. Within the chosen types of intervention, they shall specify interventions.

2.   The interventions specified by Greece, France and Italy shall be implemented through approved operational programmes of producer organisations or associations of producer organisations recognised under Regulation (EU) No 1308/2013. For this purpose, Article 50(2), (4), (5), (6) and (8) and Article 51 of this Regulation shall apply mutatis mutandis, without prejudice to Article 65(3).

Article 65

Union financial assistance

1.   The Union financial assistance to the eligible costs shall not exceed:

| (a) | 75 % of actual expenditure incurred for interventions linked to objectives referred to in Article 46, points (a) to (f), (h) and (k); |
| --- | --- |

(a)

75 % of actual expenditure incurred for interventions linked to objectives referred to in Article 46, points (a) to (f), (h) and (k);

| (b) | 75 % of actual expenditure incurred for fixed assets investments and 50 % for other interventions linked to the objective referred to in Article 46, point (g); |
| --- | --- |

(b)

75 % of actual expenditure incurred for fixed assets investments and 50 % for other interventions linked to the objective referred to in Article 46, point (g);

| (c) | 50 % of actual expenditure incurred for interventions linked to the objective referred to in Article 46, point (j); |
| --- | --- |

(c)

50 % of actual expenditure incurred for interventions linked to the objective referred to in Article 46, point (j);

| (d) | 75 % of the actual expenditure incurred for the types of intervention referred to in Article 47(1), points (f) and (h), where the operational programme is implemented in at least three third countries or non-producing Member States by producer organisations or associations of producer organisations from at least two producing Member States, or 50 % where that condition is not met. |
| --- | --- |

(d)

75 % of the actual expenditure incurred for the types of intervention referred to in Article 47(1), points (f) and (h), where the operational programme is implemented in at least three third countries or non-producing Member States by producer organisations or associations of producer organisations from at least two producing Member States, or 50 % where that condition is not met.

2.   The Union financial assistance shall be limited to 30 % of the value of marketed production of each producer organisation or association of producer organisations in 2023 and 2024, 15 % in 2025 and 2026 and 10 % as from 2027.

3.   Greece, France and Italy may provide complementary financing of the operational funds referred to in Article 51 up to 50 % of the costs not covered by the Union financial assistance.

4.   Greece, France and Italy shall ensure that the expenditure on the types of intervention referred to in Article 47(2), points (f), (g) and (h), does not exceed one third of the total expenditure under each operational programme as set out in their CAP Strategic Plans.

Section 7

Other sectors

Article 66

Objectives in other sectors

Member States may choose in their CAP Strategic Plans those sectors referred to in Article 42, point (f), in which they implement the types of intervention laid down in Article 47. For each sector that Member States choose, they shall pursue one or more of the objectives set out in Article 46, points (a) to (h), (j) and (k). Member States shall substantiate their choice of sectors and objectives.

Article 67

Types of intervention in other sectors

1.   For each sector chosen in accordance with Article 66, Member States shall choose one or more of the types of intervention referred to in Article 47 to be implemented through approved operational programmes drawn up by:

| (a) | producer organisations and their associations recognised under Regulation (EU) No 1308/2013 or under paragraph 7 of this Article; or |
| --- | --- |

(a)

producer organisations and their associations recognised under Regulation (EU) No 1308/2013 or under paragraph 7 of this Article; or

| (b) | cooperatives, as well as other forms of cooperation between producers constituted at the initiative of producers and controlled by them, that have been identified by the competent authority of a Member State as producer groups, for a transitional period of up to four years from the start of an approved operational programme ending on 31 December 2027 at the latest. |
| --- | --- |

(b)

cooperatives, as well as other forms of cooperation between producers constituted at the initiative of producers and controlled by them, that have been identified by the competent authority of a Member State as producer groups, for a transitional period of up to four years from the start of an approved operational programme ending on 31 December 2027 at the latest.

2.   Member States shall set the criteria for being identified as producer groups and shall determine the activities and objectives of the producer groups referred to in paragraph 1, point (b), with the aim that those producer groups be able to meet the requirements for recognition as producer organisations under Articles 152 to 154 or 161 of Regulation (EU) No 1308/2013 or under paragraph 7 of this Article.

3.   Producer groups referred to in paragraph 1, point (b), shall, in addition to an operational programme, draw up and submit a recognition plan with a view to fulfilling, within the transitional period referred to in that point, the requirements laid down in Articles 152 to 154 or 161 of Regulation (EU) No 1308/2013 or under paragraph 7 of this Article for recognition as producer organisations.

The recognition plan shall set activities and targets to ensure the progress towards obtaining such recognition.

The support granted to a producer group that is not recognised as a producer organisation by the end of the transitional period shall be subject to recovery.

4.   Member States shall substantiate their choice of types of intervention referred to in paragraph 1.

Member States that decide to implement types of intervention provided for in this Section for products listed in Annex VI shall specify, for each sector they choose, the list of products covered by that sector.

5.   Types of intervention referred to in Article 47(2), points (c) and (f) to (i), shall not apply to cotton, rape and colza seeds, sunflower seeds and soya beans included in Annex VI.

6.   The operational programmes referred to in paragraph 1 shall fulfil the conditions laid down in Article 50(2), (4), (5), (6) and (8).

7.   Member States which choose to implement types of intervention referred to in Article 42, point (f), in the cotton sector shall recognise producer organisations in that sector and associations of such producer organisations in accordance with the requirements and using the procedures laid down in Article 152(1) and in Articles 153 to 156 of Regulation (EU) No 1308/2013. Producer groups of cotton and federations of such producer groups recognised by Member States in accordance with the Protocol No 4 to the 1979 Act of Accession of the Hellenic Republic before the entry into application of this Regulation are, for the purposes of this Section, considered to be producer organisations or associations of producer organisations, respectively.

8.   Member States shall ensure that the expenditure on the types of intervention referred to in Article 47(2), points (f), (g) and (h), does not exceed one third of the total expenditure under each operational programme as set out in their CAP Strategic Plans.

Article 68

Union financial assistance

1.   The Union financial assistance shall be limited to 50 % of the actual expenditure incurred for the types of intervention referred to in Article 67. The remaining part of the expenditure shall be borne by the beneficiaries.

The Union financial assistance shall be paid to operational funds set up by producer organisations or their associations recognised under Regulation (EU) No 1308/2013 or under Article 67(7) of this Regulation or by producer groups referred to in Article 67(1), point (b) of this Regulation. For this purpose, Article 51 and Article 52(1) of this Regulation shall apply mutatis mutandis.

2.   The 50 % limit provided for in paragraph 1 shall be increased to 60 % for producer organisations or associations of producer organisations recognised under Regulation (EU) No 1308/2013 or under Article 67(7) of this Regulation for the first five years after the year of recognition.

3.   The Union financial assistance shall be limited to 6 % of the value of marketed production of:

| (a) | each producer organisation or association of producer organisations referred to in Article 67(1), point (a); or |
| --- | --- |

(a)

each producer organisation or association of producer organisations referred to in Article 67(1), point (a); or

| (b) | each producer group referred to in Article 67(1), point (b). |
| --- | --- |

(b)

each producer group referred to in Article 67(1), point (b).

CHAPTER IV

TYPES OF INTERVENTION FOR RURAL DEVELOPMENT

Section 1

Types of intervention

Article 69

Types of intervention for rural development

The types of intervention under this Chapter shall consist in payments or support with regard to:

| (a) | environmental, climate-related and other management commitments; |
| --- | --- |

(a)

environmental, climate-related and other management commitments;

| (b) | natural or other area-specific constraints; |
| --- | --- |

(b)

natural or other area-specific constraints;

| (c) | area-specific disadvantages resulting from certain mandatory requirements; |
| --- | --- |

(c)

area-specific disadvantages resulting from certain mandatory requirements;

| (d) | investments, including investments in irrigation; |
| --- | --- |

(d)

investments, including investments in irrigation;

| (e) | setting-up of young farmers and new farmers and rural business start-up; |
| --- | --- |

(e)

setting-up of young farmers and new farmers and rural business start-up;

| (f) | risk management tools; |
| --- | --- |

(f)

risk management tools;

| (g) | cooperation; |
| --- | --- |

(g)

cooperation;

| (h) | knowledge exchange and dissemination of information. |
| --- | --- |

(h)

knowledge exchange and dissemination of information.

Article 70

Environmental, climate-related and other management commitments

1.   Member States shall include agri-environment-climate commitments among the interventions in their CAP Strategic Plans and may include other management commitments therein. The payments for those commitments shall be granted under the conditions set out in this Article and as further specified in the CAP Strategic Plans.

2.   Member States shall grant payments only to farmers or other beneficiaries who undertake, on a voluntary basis, management commitments which are considered to be beneficial to achieving one or more of the specific objectives set out in Article 6(1) and (2).

3.   Under this Article, Member States shall provide payments only for commitments which:

| (a) | go beyond the relevant statutory management requirements and GAEC standards established under Chapter I, Section 2; |
| --- | --- |

(a)

go beyond the relevant statutory management requirements and GAEC standards established under Chapter I, Section 2;

| (b) | go beyond the relevant minimum requirements for the use of fertiliser and plant protection products or for animal welfare, as well as other relevant mandatory requirements established by national and Union law; that requirement does not apply to commitments related to agroforestry systems and the maintenance of afforested areas; |
| --- | --- |

(b)

go beyond the relevant minimum requirements for the use of fertiliser and plant protection products or for animal welfare, as well as other relevant mandatory requirements established by national and Union law; that requirement does not apply to commitments related to agroforestry systems and the maintenance of afforested areas;

| (c) | go beyond the conditions established for the maintenance of the agricultural area in accordance with Article 4(2); |
| --- | --- |

(c)

go beyond the conditions established for the maintenance of the agricultural area in accordance with Article 4(2);

| (d) | are different from commitments in respect of which payments are granted under Article 31. |
| --- | --- |

(d)

are different from commitments in respect of which payments are granted under Article 31.

For commitments referred to in the first subparagraph, point (b), where national law imposes new requirements which go beyond the corresponding minimum requirements laid down in Union law, support may be granted for commitments contributing to compliance with those requirements for a maximum of 24 months from the date on which they become mandatory for the holding.

4.   Member States shall determine the payments to be made on the basis of the additional costs incurred and income foregone resulting from the commitments made, taking into account the targets set. Those payments shall be granted annually and may also cover transaction costs. In duly justified cases, Member States may grant support as a one-off payment per unit.

5.   Member States may promote and support collective schemes and result-based payment schemes to encourage farmers or other beneficiaries to deliver a significant enhancement of the quality of the environment at a larger scale or in a measurable way.

6.   Commitments shall be undertaken for a period of five to seven years.

However, Member States may in their CAP Strategic Plans determine:

| (a) | a longer period for particular types of commitment, including by means of providing for their annual extension after the termination of the initial period, where such longer period is necessary in order to achieve or maintain certain environmental or animal welfare benefits; |
| --- | --- |

(a)

a longer period for particular types of commitment, including by means of providing for their annual extension after the termination of the initial period, where such longer period is necessary in order to achieve or maintain certain environmental or animal welfare benefits;

| (b) | a shorter period of at least one year for animal welfare commitments, for commitments for the conservation, sustainable use and development of genetic resources, for conversion to organic farming, for new commitments directly following the commitment performed in the initial period or in other duly justified cases. |
| --- | --- |

(b)

a shorter period of at least one year for animal welfare commitments, for commitments for the conservation, sustainable use and development of genetic resources, for conversion to organic farming, for new commitments directly following the commitment performed in the initial period or in other duly justified cases.

7.   Member States shall ensure that a revision clause is provided for operations implemented under the type of intervention referred to in this Article in order to ensure their adjustment in consequence of amendments to the relevant mandatory standards, requirements or obligations referred to in paragraph 3 beyond which the commitments have to go or to ensure compliance with the first subparagraph, point (d), of that paragraph. If such adjustment is not accepted by the beneficiary, the commitment shall expire and no reimbursement of payments under this Article shall be required in respect of the period during which the commitment was effective.

Member States shall also ensure that a revision clause is provided for operations implemented under the type of intervention referred to in this Article which extend beyond the CAP Strategic Plan period in order to allow for their adjustment to the legal framework applicable in the following period.

8.   Where support under this Article is granted to agri-environment-climate commitments or commitments to convert to or maintain organic farming practices and methods as laid down in Regulation (EU) 2018/848, Member States shall establish a payment per hectare. For other commitments, Member States may apply units other than hectares. In duly justified cases, Member States may grant support under this Article as a lump sum.

9.   Member States shall ensure that persons carrying out operations under this type of intervention have access to the relevant knowledge and information required to implement such operations, and that, in order to assist farmers who commit to change their production systems, appropriate training is made available for those who require it, as well as access to expertise.

10.   Member States shall ensure that interventions under this Article are consistent with those based on Article 31.

Article 71

Natural or other area-specific constraints

1.   Member States may grant payments for natural or other area-specific constraints under the conditions set out in this Article and as further specified in their CAP Strategic Plans with the view of contributing to the achievement of one or more of the specific objectives set out in Article 6(1) and (2).

2.   Payments under this Article shall be granted to active farmers in respect of areas designated pursuant to Article 32 of Regulation (EU) No 1305/2013.

3.   Member States may carry out a fine-tuning exercise in accordance with the conditions provided for in Article 32(3), third subparagraph, of Regulation (EU) No 1305/2013.

4.   Member States may grant payments under this Article only in order to compensate beneficiaries for all or part of the additional costs and income foregone related to the natural or other area-specific constraints in the area concerned.

5.   Additional costs and income foregone as referred to in paragraph 4 shall be calculated in respect of natural or other area-specific constraints, in comparison to areas which are not affected by natural or other area-specific constraints.

6.   Payments under this Article shall be granted annually per hectare of agricultural area.

Article 72

Area-specific disadvantages resulting from certain mandatory requirements

1.   Member States may grant payments for area-specific disadvantages imposed by requirements resulting from the implementation of Directives 92/43/EEC, 2009/147/EC or 2000/60/EC under the conditions set out in this Article and as further specified in their CAP Strategic Plans with the view of contributing to the achievement of one or more of the specific objectives set out in Article 6(1) and (2).

2.   Payments under this Article shall be granted to farmers, forest holders and their associations as well as other land managers.

3.   When determining areas with disadvantages, Member States may include one or more of the following areas:

| (a) | Natura 2000 agricultural and forest areas designated pursuant to Directives 92/43/EEC and 2009/147/EC; |
| --- | --- |

(a)

Natura 2000 agricultural and forest areas designated pursuant to Directives 92/43/EEC and 2009/147/EC;

| (b) | other delimited nature protection areas with environmental restrictions applicable to farming or forestry which contribute to the implementation of Article 10 of Directive 92/43/EEC, provided that those areas do not exceed 5 % of the designated Natura 2000 areas covered by territorial scope of each CAP Strategic Plan; |
| --- | --- |

(b)

other delimited nature protection areas with environmental restrictions applicable to farming or forestry which contribute to the implementation of Article 10 of Directive 92/43/EEC, provided that those areas do not exceed 5 % of the designated Natura 2000 areas covered by territorial scope of each CAP Strategic Plan;

| (c) | agricultural areas included in river basin management plans pursuant to Directive 2000/60/EC. |
| --- | --- |

(c)

agricultural areas included in river basin management plans pursuant to Directive 2000/60/EC.

4.   Member States may only grant payments under this Article in order to compensate beneficiaries for all or part of the additional costs and income foregone related to the area-specific disadvantages in the area concerned, including transaction costs.

5.   Additional costs and income foregone as referred to in paragraph 4 shall be calculated:

| (a) | in respect of constraints arising from Directives 92/43/EEC and 2009/147/EC, in relation to disadvantages resulting from requirements that go beyond the relevant GAEC standards established under Chapter I, Section 2, of this Title as well as the conditions established for the maintenance of the agricultural area in accordance with Article 4(2) of this Regulation; |
| --- | --- |

(a)

in respect of constraints arising from Directives 92/43/EEC and 2009/147/EC, in relation to disadvantages resulting from requirements that go beyond the relevant GAEC standards established under Chapter I, Section 2, of this Title as well as the conditions established for the maintenance of the agricultural area in accordance with Article 4(2) of this Regulation;

| (b) | in respect of constraints arising from Directive 2000/60/EC, in relation to disadvantages resulting from requirements that go beyond the relevant statutory management requirements, with the exception of SMR 1 listed in Annex III to this Regulation, and GAEC standards established under Chapter I, Section 2, of this Title as well as the conditions established for the maintenance of the agricultural area in accordance with Article 4(2) of this Regulation. |
| --- | --- |

(b)

in respect of constraints arising from Directive 2000/60/EC, in relation to disadvantages resulting from requirements that go beyond the relevant statutory management requirements, with the exception of SMR 1 listed in Annex III to this Regulation, and GAEC standards established under Chapter I, Section 2, of this Title as well as the conditions established for the maintenance of the agricultural area in accordance with Article 4(2) of this Regulation.

6.   Payments under this Article shall be granted annually per hectare.

Article 73

Investments

1.   Member States may grant support for investments under the conditions set out in this Article and as further specified in their CAP Strategic Plans.

2.   Member States may only grant support under this Article for those investments in tangible and intangible assets that contribute to achieving one or more of the specific objectives set out in Article 6(1) and (2).

For holdings above a certain size, to be determined by the Member States in their CAP Strategic Plans, support for the forestry sector shall be conditional on the presentation of the relevant information from a forest management plan or equivalent instrument in accordance with the sustainable management of forests as defined in the General Guidelines for the Sustainable Management of Forests in Europe, adopted at the Second Ministerial Conference on the Protection of Forests in Europe held in Helsinki on 16-17 June 1993.

3.   Member States shall establish a list of ineligible investments and categories of expenditure, including at least the following:

| (a) | purchase of agricultural production rights; |
| --- | --- |

(a)

purchase of agricultural production rights;

| (b) | purchase of payment entitlements; |
| --- | --- |

(b)

purchase of payment entitlements;

| (c) | purchase of land for an amount exceeding 10 % of the total eligible expenditure for the operation concerned, with the exception of land purchase for environmental conservation and carbon-rich soil preservation or land purchased by young farmers through the use of financial instruments; in the case of financial instruments, that ceiling shall apply to the eligible public expenditure paid to the final recipient, or, in the case of guarantees, to the amount of the underlying loan; |
| --- | --- |

(c)

purchase of land for an amount exceeding 10 % of the total eligible expenditure for the operation concerned, with the exception of land purchase for environmental conservation and carbon-rich soil preservation or land purchased by young farmers through the use of financial instruments; in the case of financial instruments, that ceiling shall apply to the eligible public expenditure paid to the final recipient, or, in the case of guarantees, to the amount of the underlying loan;

| (d) | purchase of animals, and purchase of annual plants and their planting. for a purpose other than:






  (i) | restoring agricultural or forestry potential following natural disaster, adverse climatic events or catastrophic event; |
| --- | --- | --- |

(d)

purchase of animals, and purchase of annual plants and their planting. for a purpose other than:

(i)

restoring agricultural or forestry potential following natural disaster, adverse climatic events or catastrophic event;

| (ii) | protecting livestock against large predators or being used in forestry instead of machinery; |
| --- | --- |

(ii)

protecting livestock against large predators or being used in forestry instead of machinery;

| (iii) | rearing endangered breeds as defined in Article 2, point (24), of Regulation (EU) 2016/1012 of the European Parliament and of the Council (45) under the commitments referred to in Article 70; or |
| --- | --- |

(iii)

rearing endangered breeds as defined in Article 2, point (24), of Regulation (EU) 2016/1012 of the European Parliament and of the Council (45) under the commitments referred to in Article 70; or

| (iv) | preserving plant varieties under threat of genetic erosion under the commitments referred to in Article 70; |
| --- | --- |

(iv)

preserving plant varieties under threat of genetic erosion under the commitments referred to in Article 70;

| (e) | interest rate on debt, except in relation to grants given in the form of an interest rate subsidy or guarantee fee subsidy; |
| --- | --- |

(e)

interest rate on debt, except in relation to grants given in the form of an interest rate subsidy or guarantee fee subsidy;

| (f) | investments in large-scale infrastructure, as determined by Member States in their CAP Strategic Plans, not being part of the community-led local development strategies set out in Article 32 of Regulation (EU) 2021/1060, except for broadband and flood or coastal protection preventive actions aimed at reducing the consequences of probable natural disasters, adverse climatic events or catastrophic events; |
| --- | --- |

(f)

investments in large-scale infrastructure, as determined by Member States in their CAP Strategic Plans, not being part of the community-led local development strategies set out in Article 32 of Regulation (EU) 2021/1060, except for broadband and flood or coastal protection preventive actions aimed at reducing the consequences of probable natural disasters, adverse climatic events or catastrophic events;

| (g) | investments in afforestation which are not consistent with environmental and climate-related objectives in line with sustainable forest management principles, as developed in the Pan-European Guidelines for Afforestation and Reforestation. |
| --- | --- |

(g)

investments in afforestation which are not consistent with environmental and climate-related objectives in line with sustainable forest management principles, as developed in the Pan-European Guidelines for Afforestation and Reforestation.

The first subparagraph, points (a), (b), (d) and (f), shall not apply where support is provided through financial instruments.

4.   Member States shall limit the support to one or more rates not exceeding 65 % of the eligible costs.

The maximum support rates may be increased:

| (a) | up to 80 % for the following investments:






  (i) | investments linked to one or more of the specific objectives set out in Article 6(1), points (d), (e) and (f) and, as regards animal welfare, in Article 6(1), point (i); |
| --- | --- | --- |

(a)

up to 80 % for the following investments:

(i)

investments linked to one or more of the specific objectives set out in Article 6(1), points (d), (e) and (f) and, as regards animal welfare, in Article 6(1), point (i);

| (ii) | investments by young farmers who fulfil the conditions provided for by Member States in their CAP Strategic Plans in accordance with Article 4(6); |
| --- | --- |

(ii)

investments by young farmers who fulfil the conditions provided for by Member States in their CAP Strategic Plans in accordance with Article 4(6);

| (iii) | investments in the outermost regions or the smaller Aegean islands; |
| --- | --- |

(iii)

investments in the outermost regions or the smaller Aegean islands;

| (b) | up to 85 % for investments of small farms, as determined by Member States; |
| --- | --- |

(b)

up to 85 % for investments of small farms, as determined by Member States;

| (c) | up to 100 % for the following investments:






  (i) | afforestation, establishment and regeneration of agro-forestry systems, land consolidation in forestry and non-productive investments linked to one or more of the specific objectives set out in Article 6(1), points (d), (e) and (f), including non-productive investments aimed at protecting livestock and crops against damage caused by wild animals; |
| --- | --- | --- |

(c)

up to 100 % for the following investments:

(i)

afforestation, establishment and regeneration of agro-forestry systems, land consolidation in forestry and non-productive investments linked to one or more of the specific objectives set out in Article 6(1), points (d), (e) and (f), including non-productive investments aimed at protecting livestock and crops against damage caused by wild animals;

| (ii) | investments in basic services in rural areas and infrastructure in agriculture and forestry, as determined by Member States; |
| --- | --- |

(ii)

investments in basic services in rural areas and infrastructure in agriculture and forestry, as determined by Member States;

| (iii) | investments in the restoration of agricultural or forestry potential following natural disasters, adverse climatic events or catastrophic events and investments in appropriate preventive actions, as well as investments in maintaining the health of forests; |
| --- | --- |

(iii)

investments in the restoration of agricultural or forestry potential following natural disasters, adverse climatic events or catastrophic events and investments in appropriate preventive actions, as well as investments in maintaining the health of forests;

| (iv) | non-productive investments supported through community-led local development strategies set out in Article 32 of Regulation (EU) 2021/1060 and the projects of EIP operational groups as referred to in Article 127(3) of this Regulation. |
| --- | --- |

(iv)

non-productive investments supported through community-led local development strategies set out in Article 32 of Regulation (EU) 2021/1060 and the projects of EIP operational groups as referred to in Article 127(3) of this Regulation.

5.   Where Union law results in the imposition of new requirements on farmers, support may be granted for investments to comply with those requirements for a maximum of 24 months from the date on which they become mandatory for the holding.

Article 74

Investments in irrigation

1.   Member States may grant support for investments in irrigation in new and existing irrigated areas, provided that the conditions laid down in Article 73 and in this Article are fulfilled.

2.   Investments in irrigation shall be supported only where the Member State concerned has sent to the Commission a river basin management plan as provided for in Directive 2000/60/EC for the entire area in which the investment is to take place, as well as for any other areas whose environment may be affected by the investment. The measures taking effect under the river basin management plan in accordance with Article 11 of that Directive and of relevance to the agricultural sector shall be specified in the relevant programme of measures.

3.   Water metering enabling measurement of water use at the level of the supported investment shall be in place or shall be put in place as part of the investment.

4.   Member States may grant support for an investment in an improvement to an existing irrigation installation or element of irrigation infrastructure only if:

| (a) | it is assessed ex ante as offering potential water savings reflecting the technical parameters of the existing installation or infrastructure; |
| --- | --- |

(a)

it is assessed ex ante as offering potential water savings reflecting the technical parameters of the existing installation or infrastructure;

| (b) | where the investment affects bodies of groundwater or surface water whose status has been identified as less than good in the relevant river basin management plan for reasons related to water quantity, an effective reduction in water use is achieved contributing to the achievement of good status of those water bodies, as laid down in Article 4(1) of Directive 2000/60/EC. |
| --- | --- |

(b)

where the investment affects bodies of groundwater or surface water whose status has been identified as less than good in the relevant river basin management plan for reasons related to water quantity, an effective reduction in water use is achieved contributing to the achievement of good status of those water bodies, as laid down in Article 4(1) of Directive 2000/60/EC.

Member States shall set percentages for potential water savings and effective reduction in water use as an eligibility condition in their CAP Strategic Plans in accordance with Article 111, point (d). Such water savings shall reflect the needs set out in the river basin management plans emanating from Directive 2000/60/EC listed in Annex XIII to this Regulation.

None of the conditions in this paragraph shall apply to an investment in an existing installation which affects only energy efficiency, to an investment in the creation of a reservoir, or to an investment in the use of reclaimed water which does not affect a body of groundwater or surface water.

5.   Member States may grant support for investments in the use of reclaimed water as an alternative water supply only if the provision and use of such water is compliant with Regulation (EU) 2020/741 of the European Parliament and of the Council (46).

6.   Member States may grant support for an investment resulting in a net increase of the irrigated area affecting a given body of groundwater or surface water only if:

| (a) | the status of the water body has not been identified as less than good in the relevant river basin management plan for reasons related to water quantity; and |
| --- | --- |

(a)

the status of the water body has not been identified as less than good in the relevant river basin management plan for reasons related to water quantity; and

| (b) | an environmental impact analysis shows that there will be no significant negative environmental impact from the investment; that environmental impact analysis shall be either carried out or approved by the competent authority and may also refer to groups of holdings. |
| --- | --- |

(b)

an environmental impact analysis shows that there will be no significant negative environmental impact from the investment; that environmental impact analysis shall be either carried out or approved by the competent authority and may also refer to groups of holdings.

7.   Member States may grant support for an investment in the creation or expansion of a reservoir for the purpose of irrigation only if it does not lead to significant negative environmental impact.

8.   Member States shall limit the support to one or more rates not exceeding:

| (a) | 80 % of the eligible costs for irrigation on-farm investments made under paragraph 4; |
| --- | --- |

(a)

80 % of the eligible costs for irrigation on-farm investments made under paragraph 4;

| (b) | 100 % of the eligible costs for investments in off-farm infrastructure in agriculture to be used for irrigation; |
| --- | --- |

(b)

100 % of the eligible costs for investments in off-farm infrastructure in agriculture to be used for irrigation;

| (c) | 65 % of the eligible costs for other irrigation on-farm investments. |
| --- | --- |

(c)

65 % of the eligible costs for other irrigation on-farm investments.

Article 75

Setting-up of young farmers and new farmers and rural business start-up

1.   Member States may grant support for the setting-up of young farmers and the start-up of rural businesses, including the setting-up of new farmers, under the conditions set out in this Article and as further specified in their CAP Strategic Plans with the view of contributing to the achievement of one or more of the specific objectives set out in Article 6(1) and (2).

2.   Member States may only grant support under this Article to help:

| (a) | the setting-up of young farmers who fulfil the conditions provided for by Member States in their CAP Strategic Plans in accordance with Article 4(6); |
| --- | --- |

(a)

the setting-up of young farmers who fulfil the conditions provided for by Member States in their CAP Strategic Plans in accordance with Article 4(6);

| (b) | the start-up of rural businesses linked to agriculture or forestry including the setting up of new farmers, or farm household income diversification into non-agricultural activities; |
| --- | --- |

(b)

the start-up of rural businesses linked to agriculture or forestry including the setting up of new farmers, or farm household income diversification into non-agricultural activities;

| (c) | the business start-up of non-agricultural activities in rural areas related to the community-led local development strategies set out in Article 32 of Regulation (EU) 2021/1060. |
| --- | --- |

(c)

the business start-up of non-agricultural activities in rural areas related to the community-led local development strategies set out in Article 32 of Regulation (EU) 2021/1060.

3.   Member States shall set conditions for the submission and the content of a business plan which beneficiaries must provide in order to receive support under this Article.

4.   Member States shall grant support in the form of lump sums or financial instruments or a combination of both. Support shall be limited to the maximum amount of aid of EUR 100 000 and may be differentiated in accordance with objective criteria.

Article 76

Risk management tools

1.   Member States may grant support for risk management tools under the conditions set out in this Article and as further specified in their CAP Strategic Plans.

2.   Support under this Article may be granted to promote risk management tools which help active farmers manage production and income risks related to their agricultural activity that are outside their control and which contribute to achieving one or more of the specific objectives set out in Article 6(1) and (2).

3.   Member States may, in line with their assessment of needs, grant support for different types of risk management tool, including income stabilisation tools, and in particular:

| (a) | financial contributions to premiums for insurance schemes; |
| --- | --- |

(a)

financial contributions to premiums for insurance schemes;

| (b) | financial contributions to mutual funds, including for the administrative cost of setting up. |
| --- | --- |

(b)

financial contributions to mutual funds, including for the administrative cost of setting up.

4.   When providing the support referred to in paragraph 3, Member States shall establish the following eligibility conditions:

| (a) | the types and coverage of eligible risk management tools; |
| --- | --- |

(a)

the types and coverage of eligible risk management tools;

| (b) | the methodology for the calculation of losses and triggering factors for compensation; |
| --- | --- |

(b)

the methodology for the calculation of losses and triggering factors for compensation;

| (c) | the rules for the constitution and management of the mutual funds and, where relevant, other eligible risk management tools. |
| --- | --- |

(c)

the rules for the constitution and management of the mutual funds and, where relevant, other eligible risk management tools.

5.   Member States shall ensure that support is granted only for covering losses which exceed a threshold of at least 20 % of the average annual production or income of the farmer in the preceding three-year period, or a three-year average based on the preceding five-year period excluding the highest and lowest entry. Sectoral production risk management tools shall calculate the losses either at holding level or at the level of the holding’s activity in the sector concerned.

Member States may provide support in the form of standalone working capital finance under financial instruments referred to in Article 80(3) for the compensation of losses referred to in the first subparagraph of this paragraph to farmers who do not participate in a risk management tool.

6.   Member States shall limit the support to one or more rates not exceeding 70 % of the eligible costs.

This paragraph shall not apply to the contributions referred to in Article 19.

7.   Member States shall ensure that any overcompensation resulting from the combination of the interventions under this Article with other public or private risk management schemes is avoided.

Article 77

Cooperation

1.   Member States may grant support for cooperation under the conditions set out in this Article and as further specified in their CAP Strategic Plans to:

| (a) | prepare and implement the projects of the EIP operational groups referred to in Article 127(3); |
| --- | --- |

(a)

prepare and implement the projects of the EIP operational groups referred to in Article 127(3);

| (b) | prepare and implement LEADER; |
| --- | --- |

(b)

prepare and implement LEADER;

| (c) | promote and support quality schemes recognised by the Union or by the Member States and their use by farmers; |
| --- | --- |

(c)

promote and support quality schemes recognised by the Union or by the Member States and their use by farmers;

| (d) | support producer groups, producer organisations or interbranch organisations; |
| --- | --- |

(d)

support producer groups, producer organisations or interbranch organisations;

| (e) | prepare and implement smart-village strategies, as determined by Member States; |
| --- | --- |

(e)

prepare and implement smart-village strategies, as determined by Member States;

| (f) | support other forms of cooperation. |
| --- | --- |

(f)

support other forms of cooperation.

2.   Member States may only grant support under this Article to promote new forms of cooperation, including existing ones if starting a new activity. That cooperation shall involve at least two actors and shall contribute to achieving one or more of the specific objectives set out in Article 6(1) and (2).

3.   Member States may cover under this Article the costs related to all aspects of the cooperation.

4.   Member States may grant the support as an overall amount under this Article covering the costs of cooperation and the costs of the operations implemented, or they may cover only the costs of cooperation and use funds from other types of intervention for rural development, or from other national or Union support instruments, to cover the costs of the operations implemented.

Where support is paid as an overall amount, Member States shall ensure that the operation implemented complies with the relevant rules and requirements laid down in Articles 70 to 76 and 78.

In the case of LEADER, by way of derogation from the first subparagraph of this paragraph:

| (a) | support for all costs eligible for preparatory support under Article 34(1), point (a), of Regulation (EU) 2021/1060 and for implementing selected strategies under points (b) and (c) of that paragraph shall only be granted as an overall amount under this Article; and |
| --- | --- |

(a)

support for all costs eligible for preparatory support under Article 34(1), point (a), of Regulation (EU) 2021/1060 and for implementing selected strategies under points (b) and (c) of that paragraph shall only be granted as an overall amount under this Article; and

| (b) | Member States shall ensure that implemented operations which consist of investments comply with the relevant Union rules and requirements under the type of intervention for investments laid down in Article 73 of this Regulation. |
| --- | --- |

(b)

Member States shall ensure that implemented operations which consist of investments comply with the relevant Union rules and requirements under the type of intervention for investments laid down in Article 73 of this Regulation.

5.   Member States shall not support under this Article cooperation solely involving research bodies.

6.   In the case of cooperation in the context of farm succession, in particular for generational renewal at farm level, Member States may grant support only to farmers who have, or will have by the end of the operation, reached the retirement age determined by the Member State concerned in accordance with its national legislation.

7.   Member States shall limit support to a maximum of seven years. That condition shall not apply to LEADER and in duly justified cases to collective environment and climate actions necessary to achieve the specific objectives set out in Article 6(1), points (d), (e) and (f).

8.   Member States shall limit the support for:

| (a) | information and promotion actions for quality schemes to one or more rates not exceeding 70 % of the eligible costs; |
| --- | --- |

(a)

information and promotion actions for quality schemes to one or more rates not exceeding 70 % of the eligible costs;

| (b) | setting-up of producer groups, producer organisations or interbranch organisations to 10 % of the annual marketed production of the group or organisation with a maximum of EUR 100 000 per year; that support shall be degressive and limited to the first five years following recognition. |
| --- | --- |

(b)

setting-up of producer groups, producer organisations or interbranch organisations to 10 % of the annual marketed production of the group or organisation with a maximum of EUR 100 000 per year; that support shall be degressive and limited to the first five years following recognition.

Article 78

Knowledge exchange and dissemination of information

1.   Member States may grant support for knowledge exchange and dissemination of information under the conditions set out in this Article and as further detailed in their CAP Strategic Plans with a view to contributing to achieving one or more of the specific objectives set out in Article 6(1) and (2) while specifically targeting the protection of nature, environment and climate, including environmental education and awareness actions and the development of rural businesses and communities.

2.   Support under this Article may cover the costs of any relevant action to promote innovation, training and advice and other forms of knowledge exchange and dissemination of information, including through the drawing up and updating of plans and studies with the aim of knowledge exchange and dissemination of information. Such actions shall contribute to achieving one or more of the specific objectives set out in Article 6(1) and (2).

3.   Support for advisory services shall only be granted for advisory services that comply with Article 15(3).

4.   For the setting up of advisory services, Member States may grant support in the form of a fixed amount of a maximum of EUR 200 000. They shall ensure that support is limited in time.

5.   Member States shall ensure that actions supported under this type of intervention are based on, and are consistent with, the description of the AKIS provided in their CAP Strategic Plans in accordance with Article 114, point (a)(i).

Section 2

Elements applying to several types of intervention

Article 79

Selection of operations

1.   After consultation of the monitoring committee referred to in Article 124 (‘the monitoring committee’), the national managing authority, regional managing authorities where relevant, or designated intermediate bodies shall set out selection criteria for interventions relating to the following types of intervention: investments, setting-up of young farmers and new farmers and rural business start-up, cooperation, knowledge exchange and dissemination of information. Those selection criteria shall aim to ensure equal treatment of applicants, better use of financial resources and targeting of the support in accordance with the purpose of the interventions.

Member States may decide not to apply selection criteria for investment interventions clearly targeting environmental purposes or carried out in connection with restoration activities.

By way of derogation from the first subparagraph, a different selection method may be established in duly justified cases after consultation of the monitoring committee.

2.   The responsibility of the managing authorities or designated intermediate bodies set out in paragraph 1 shall be without prejudice to the tasks of the local action groups referred to in Article 33 of Regulation (EU) 2021/1060.

3.   Paragraph 1 shall not apply where support is provided in the form of financial instruments.

4.   Member States may decide not to apply the selection criteria referred to in paragraph 1 to operations that have received a Seal of Excellence certification under Horizon 2020, established by Regulation (EU) No 1291/2013 of the European Parliament and of the Council (47), under Horizon Europe or under the Programme for the Environment and Climate Action (LIFE), established by Regulation (EU) 2021/783 of the European Parliament and of the Council (48), provided that those operations are consistent with the CAP Strategic Plan.

5.   All or part of an operation may be implemented outside the Member State concerned, including outside the Union, provided that the operation contributes to the achievement of the objectives of the CAP Strategic Plan.

Article 80

Specific rules for financial instruments

1.   Support in the form of financial instruments referred to in Article 58 of Regulation (EU) 2021/1060 may be granted under the types of intervention referred to in Articles 73 to 78 of this Regulation.

2.   Where support is granted in the form of financial instruments, the definitions of ‘financial instrument’, ‘financial product’, ‘final recipient’, ‘holding fund’, ‘specific fund’, ‘leverage effect’, ‘multiplier ratio’, ‘management costs’ and ‘management fees’ laid down in Article 2 of Regulation (EU) 2021/1060 and the provisions of Title V, Chapter II, Section II, of that Regulation shall apply.

In addition, paragraphs 3, 4 and 5 of this Article shall apply.

3.   In accordance with Article 58(2) of Regulation (EU) 2021/1060, working capital, including standalone working capital, may be eligible expenditure under Articles 73, 74, 76, 77 and 78 of this Regulation if it contributes to the achievement of at least one specific objective relevant for the intervention concerned. Support for standalone working capital finance under any of those Articles may be provided without being subject to the requirement that the final recipient receives support for other expenditure under the same Article.

For activities falling within the scope of Article 42 TFEU, the total amount of support for working capital provided to a final recipient shall not exceed a gross grant equivalent of EUR 200 000 over any period of three fiscal years.

4.   By way of derogation from Articles 73, 74, 76, 77 and 78, the support rates laid down in those Articles shall not apply to standalone working capital finance.

5.   Eligible expenditure of a financial instrument shall be the total amount of eligible public expenditure paid, excluding additional national financing as referred to in Article 115(5), or, in the case of guarantees, set aside for guarantee contracts by the financial instrument within the eligibility period. That amount shall correspond to:

| (a) | payments to final recipients, in the case of loans, equity and quasi-equity investments; |
| --- | --- |

(a)

payments to final recipients, in the case of loans, equity and quasi-equity investments;

| (b) | resources set aside for guarantee contracts, whether outstanding or having already come to maturity, in order to honour possible guarantee calls for losses, calculated on the basis of a multiplier ratio established for the respective underlying disbursed new loans or equity investments in final recipients; |
| --- | --- |

(b)

resources set aside for guarantee contracts, whether outstanding or having already come to maturity, in order to honour possible guarantee calls for losses, calculated on the basis of a multiplier ratio established for the respective underlying disbursed new loans or equity investments in final recipients;

| (c) | payments to, or for the benefit of, final recipients where financial instruments are combined with other Union contributions in a single financial instrument operation in accordance with Article 58(5) of Regulation (EU) 2021/1060; |
| --- | --- |

(c)

payments to, or for the benefit of, final recipients where financial instruments are combined with other Union contributions in a single financial instrument operation in accordance with Article 58(5) of Regulation (EU) 2021/1060;

| (d) | payments of management fees and reimbursements of management costs incurred by the bodies implementing the financial instrument. |
| --- | --- |

(d)

payments of management fees and reimbursements of management costs incurred by the bodies implementing the financial instrument.

Where a financial instrument is implemented across consecutive programming periods, support may be provided to, or for the benefit of, final recipients, including management costs and fees, based on agreements made under the previous programming period, provided that such support complies with the eligibility rules of the subsequent programming period. In such cases, the eligibility of expenditure submitted in the declarations of expenditure shall be determined in accordance with the rules of the programming period concerned.

For the purposes of the first subparagraph, point (b), if the entity benefitting from the guarantees has not disbursed the planned amount of new loans, equity or quasi-equity investments to final recipients in accordance with the multiplier ratio, the eligible expenditure shall be reduced proportionally. The multiplier ratio may be reviewed where justified by subsequent changes in market conditions. Such a review shall not have retroactive effect.

For the purposes of the first subparagraph, point (d), of this paragraph, management fees shall be performance-based. Where bodies implementing a holding fund are selected through a direct award of contract pursuant to Article 59(3) of Regulation (EU) 2021/1060, the amount of management cost and fees paid to those bodies that can be declared as eligible expenditure shall be subject to a threshold of up to 5 % of the total amount of eligible public expenditure disbursed to final recipients in loans or set aside for guarantee contracts and up to 7 % of the total amount of eligible public expenditure disbursed to final recipients in equity and quasi-equity investments.

Where bodies implementing a specific fund are selected through a direct award of contract pursuant to Article 59(3) of Regulation (EU) 2021/1060, the amount of management cost and fees paid to those bodies that can be declared as eligible expenditure shall be subject to a threshold of up to 7 % of the total amount of the eligible public expenditure disbursed to final recipients in loans or set aside for guarantee contracts and up to 15 % of the total amount of eligible public expenditure disbursed to final recipients in equity or quasi-equity investments.

For the purposes of the first subparagraph, point (d), where bodies implementing a holding fund or specific funds are selected through a competitive tender in accordance with the applicable law, the amount of management costs and fees shall be established in the funding agreement and shall reflect the result of the competitive tender.

Where arrangement fees, or any part thereof, are charged to final recipients, they shall not be declared as eligible expenditure.

Article 81

Use of the EAFRD delivered through InvestEU

1.   Member States may allocate, in the proposal for a CAP Strategic Plan referred to in Article 118 or in the request for amendment of a CAP Strategic Plan referred to in Article 119, an amount of up to 3 % of the initial total EAFRD allocation to the CAP Strategic Plan to be contributed to InvestEU and delivered through the EU guarantee and the InvestEU Advisory Hub. The CAP Strategic Plan shall contain a justification for the use of InvestEU and its contribution to the achievement of one or more of the specific objectives set out in Article 6(1) and (2) and chosen under the CAP Strategic Plan.

The amount contributed to InvestEU shall be implemented in accordance with the rules established in Regulation (EU) 2021/523.

2.   Member States shall determine the total amount contributed for each year. In the case of a request for an amendment of a CAP Strategic Plan, those amounts shall concern only future years.

3.   The amount referred to in paragraph 1 shall be used for the provisioning of the part of the EU guarantee under the Member State compartment and for the InvestEU Advisory Hub, upon conclusion of the contribution agreement referred to in Article 10(3) of Regulation (EU) 2021/523. The budgetary commitments of the Union in respect of each contribution agreement may be made by the Commission in annual instalments during the period between 1 January 2023 and 31 December 2027.

4.   Where a contribution agreement as referred to in Article 10(2) of Regulation (EU) 2021/523 for the amount referred to in paragraph 1 of this Article allocated in the CAP Strategic Plan has not been concluded within four months following the adoption of the Commission implementing decision approving that CAP Strategic Plan in accordance with Article 118 of this Regulation, the corresponding amount shall be reallocated in the CAP Strategic Plan following the approval of a request for amendment by the Member State submitted in accordance with Article 119 of this Regulation.

A contribution agreement for the amount referred to in paragraph 1 of this Article allocated in a request for amendment of a CAP Strategic Plan submitted in accordance with Article 119 of this Regulation shall be concluded simultaneously with the adoption of the Commission implementing decision approving that amendment of the CAP Strategic Plan.

5.   Where a guarantee agreement as referred to in Article 10(4), second subparagraph, of Regulation (EU) 2021/523 has not been concluded within nine months from the approval of the contribution agreement, the contribution agreement shall be terminated or prolonged by mutual agreement.

Where the participation of a Member State in InvestEU is discontinued, the amounts concerned paid into the common provisioning fund as provisioning shall be recovered as internal assigned revenue pursuant to Article 21(5) of the Financial Regulation and the Member State shall submit a request for amendment of its CAP Strategic Plan to use the amounts recovered and the amounts allocated to future calendar years in accordance with paragraph 2 of this Article.

The termination or amendment of the contribution agreement shall be concluded simultaneously with the adoption of the Commission implementing decision approving the relevant amendment of the CAP Strategic Plan and at the latest on 31 December 2026.

6.   Where a guarantee agreement as referred to in Article 10(4), third subparagraph, of Regulation (EU) 2021/523 has not been duly implemented within the period agreed in the contribution agreement, but not exceeding four years from the signature of the guarantee agreement, the contribution agreement shall be amended. The Member State may request that amounts contributed to the EU guarantee under paragraph 1 of this Article and committed in the guarantee agreement but not covering underlying loans, equity investments or other risk bearing instruments are treated in accordance with paragraph 5 of this Article.

7.   Resources generated by or attributable to the amounts contributed to the EU guarantee shall be made available to the Member State in accordance with Article 10(5), point (a), of Regulation (EU) 2021/523 and shall be used for support under the same objective or objectives referred to in paragraph 1 of this Article in the form of financial instruments or budgetary guarantees.

8.   The automatic decommitment time limit as provided for in Article 34 of Regulation (EU) 2021/2116 for the amounts to be reused in a CAP Strategic Plan in accordance with paragraphs 4, 5 and 6 of this Article shall start in the year in which the corresponding budgetary commitments are made.

Article 82

Adequacy and accuracy of payment calculation

Where payments are granted on the basis of additional costs and income foregone in accordance with Articles 70, 71 and 72, Member States shall ensure that the relevant calculations are adequate and accurate and established in advance on the basis of a fair, equitable and verifiable calculation method. To that end, bodies that are functionally independent from the authorities responsible for the implementation of the CAP Strategic Plan and possess the appropriate expertise shall perform the calculations or confirm the adequacy and accuracy of the calculations.

Article 83

Forms of grants

1.   Without prejudice to Articles 70, 71, 72 and 75, the grants under this Chapter may take any of the following forms:

| (a) | reimbursement of eligible costs actually incurred by a beneficiary; |
| --- | --- |

(a)

reimbursement of eligible costs actually incurred by a beneficiary;

| (b) | unit costs; |
| --- | --- |

(b)

unit costs;

| (c) | lump sums; |
| --- | --- |

(c)

lump sums;

| (d) | flat-rate financing. |
| --- | --- |

(d)

flat-rate financing.

2.   The amounts for the forms of grants referred to in paragraph 1, points (b), (c) and (d), shall be established in one of the following ways:

| (a) | a fair, equitable and verifiable calculation method based on:






  (i) | statistical data, other objective information or an expert judgement; |
| --- | --- | --- |

(a)

a fair, equitable and verifiable calculation method based on:

(i)

statistical data, other objective information or an expert judgement;

| (ii) | verified historical data of individual beneficiaries; or |
| --- | --- |

(ii)

verified historical data of individual beneficiaries; or

| (iii) | the application of usual cost accounting practices of individual beneficiaries; |
| --- | --- |

(iii)

the application of usual cost accounting practices of individual beneficiaries;

| (b) | draft budgets established on a case-by-case basis and agreed ex ante by the body selecting the operation; |
| --- | --- |

(b)

draft budgets established on a case-by-case basis and agreed ex ante by the body selecting the operation;

| (c) | in accordance with the rules for application of corresponding unit costs, lump sums and flat rates applicable in Union policies for a similar type of operation; |
| --- | --- |

(c)

in accordance with the rules for application of corresponding unit costs, lump sums and flat rates applicable in Union policies for a similar type of operation;

| (d) | in accordance with the rules for application of corresponding unit costs, lump sums and flat rates applied under schemes for grants funded entirely by the Member State for a similar type of operation. |
| --- | --- |

(d)

in accordance with the rules for application of corresponding unit costs, lump sums and flat rates applied under schemes for grants funded entirely by the Member State for a similar type of operation.

3.   Member States may provide to beneficiaries grants under conditions which are fully or partially repayable as specified in the document setting out the conditions for support and in accordance with the following conditions:

| (a) | repayments by the beneficiary shall be made under the conditions agreed by the managing authority and the beneficiary; |
| --- | --- |

(a)

repayments by the beneficiary shall be made under the conditions agreed by the managing authority and the beneficiary;

| (b) | Member States shall reuse resources paid back by the beneficiary for the same specific objective of the CAP Strategic Plan by 31 December 2029 either in the form of grants under conditions, in the form of a financial instrument or in another form of support; the amounts paid back and information about their reuse shall be included in the last annual performance report; |
| --- | --- |

(b)

Member States shall reuse resources paid back by the beneficiary for the same specific objective of the CAP Strategic Plan by 31 December 2029 either in the form of grants under conditions, in the form of a financial instrument or in another form of support; the amounts paid back and information about their reuse shall be included in the last annual performance report;

| (c) | Member States shall adopt the necessary measures to ensure that the resources are kept in separate accounts or under appropriate accounting codes; |
| --- | --- |

(c)

Member States shall adopt the necessary measures to ensure that the resources are kept in separate accounts or under appropriate accounting codes;

| (d) | Union resources paid back by beneficiaries at any time but not reused by 31 December 2029 shall be repaid to the Union budget in accordance with Article 34 of Regulation (EU) 2021/2116. |
| --- | --- |

(d)

Union resources paid back by beneficiaries at any time but not reused by 31 December 2029 shall be repaid to the Union budget in accordance with Article 34 of Regulation (EU) 2021/2116.

Article 84

Delegated powers for additional requirements for types of intervention for rural development

The Commission is empowered to adopt delegated acts in accordance with Article 152 supplementing this Regulation with requirements additional to those laid down in this Chapter concerning the conditions for granting support for the:

| (a) | management commitments referred to in Article 70 concerning genetic resources and animal welfare; |
| --- | --- |

(a)

management commitments referred to in Article 70 concerning genetic resources and animal welfare;

| (b) | quality schemes referred to in Article 77 as regards the specificity of the final product, the access to the scheme, the verification of binding product specifications, the transparency of the scheme and the traceability of the products, as well as the recognition by Member States of voluntary certification schemes. |
| --- | --- |

(b)

quality schemes referred to in Article 77 as regards the specificity of the final product, the access to the scheme, the verification of binding product specifications, the transparency of the scheme and the traceability of the products, as well as the recognition by Member States of voluntary certification schemes.

TITLE IV

FINANCIAL PROVISIONS

Article 85

EAGF and EAFRD expenditure

1.   The EAGF shall finance the types of intervention related to:

| (a) | direct payments laid down in Article 16; |
| --- | --- |

(a)

direct payments laid down in Article 16;

| (b) | interventions in certain sectors laid down in Title III, Chapter III. |
| --- | --- |

(b)

interventions in certain sectors laid down in Title III, Chapter III.

2.   The EAFRD shall finance the types of intervention referred to in Title III, Chapter IV, and technical assistance at the initiative of the Member States referred to in Article 94.

Article 86

Eligibility of expenditure

1.   Expenditure shall be eligible:

| (a) | for a contribution from the EAGF from 1 January of the year following the year of the approval of the CAP Strategic Plan by the Commission; |
| --- | --- |

(a)

for a contribution from the EAGF from 1 January of the year following the year of the approval of the CAP Strategic Plan by the Commission;

| (b) | for a contribution from the EAFRD from the date of submission of the CAP Strategic Plan, but not before 1 January 2023. |
| --- | --- |

(b)

for a contribution from the EAFRD from the date of submission of the CAP Strategic Plan, but not before 1 January 2023.

2.   Expenditure that becomes eligible as a result of an amendment of a CAP Strategic Plan shall be eligible for a contribution from the EAGF after the approval of that amendment by the Commission and from the date of effect of the amendment set by the Member State concerned in accordance with Article 119(8).

3.   Expenditure that becomes eligible as a result of an amendment of a CAP Strategic Plan shall be eligible for a contribution from the EAFRD from the date of submission to the Commission of the request for amendment, or from the date of notification of modification referred to in Article 119(9).

By way of derogation from the first subparagraph of this paragraph and from paragraph 4, second subparagraph, the CAP Strategic Plan may provide that, in cases of emergency measures due to natural disasters, catastrophic events or adverse climatic events or a significant and sudden change in the socio-economic conditions of the Member State or region, the eligibility of EAFRD-financed expenditure relating to amendments to the CAP Strategic Plan may start from the date on which the event occurred.

4.   Expenditure shall be eligible for a contribution from the EAFRD if it has been incurred by a beneficiary and paid by 31 December 2029. In addition, expenditure shall be eligible for a contribution from the EAFRD only if the relevant aid is actually paid by the paying agency by 31 December 2029.

Member States shall set the starting date of eligibility of costs incurred by the beneficiary. The starting date shall not be before 1 January 2023.

Operations shall not be eligible for support where they have been physically completed or fully implemented before the application for support is submitted to the managing authority, irrespective of whether all related payments have been made.

However, operations relating to early tending of seedling stands and tending of young stands in accordance with sustainable forest management principles and addressing one or more of the specific objectives set out in Article 6(1), points (d), (e) and (f), as defined by the Member State, may be eligible for support even if they had been physically completed before the application for support is submitted to the managing authority.

5.   Contributions in kind and depreciation costs may be eligible for support under the EAFRD, subject to conditions to be set by the Member States.

Article 87

Financial allocations for types of intervention in the form of direct payments

1.   Without prejudice to Article 17 of Regulation (EU) 2021/2116, the total amount for types of intervention in the form of direct payments which may be granted in a Member State pursuant to Title III, Chapter II, of this Regulation in respect of a calendar year shall not exceed the financial allocation of that Member State set out in Annex V.

Without prejudice to Article 17 of Regulation (EU) 2021/2116, the maximum amount which may be granted in a Member State, in a calendar year, pursuant to Title III, Chapter II, Section 3, Subsection 2, of this Regulation and before the application of Article 17 of this Regulation, shall not exceed the financial allocation of that Member State set out in Annex VIII.

For the purpose of Articles 96, 97 and 98, the financial allocation of a Member State set out in Annex V after deduction of the amounts set out in Annex VIII and before any transfers pursuant to Article 17 is set out in Annex IX.

2.   The Commission is empowered to adopt delegated acts in accordance with Article 152 amending the Member States’ allocations set out in Annexes V and IX to take account of the developments relating to the total maximum amount of direct payments that may be granted, including the transfers referred to in Articles 17 and 103, transfers of financial allocations referred to in Article 88(5) and any deductions needed to finance types of intervention in other sectors referred to in Article 88(6).

However, the adaptation of Annex IX shall not take into account any transfers in accordance with Article 17.

3.   The amount of the indicative financial allocations per intervention referred to in Article 101 for the types of intervention in the form of direct payments laid down in Article 16 to be granted in a Member State in respect of a calendar year may exceed the allocation of that Member State set out in Annex V by the estimated amount of reduction of payments taken up in the CAP Strategic Plan in accordance with Article 112(3), point (a), second subparagraph.

Article 88

Financial allocations for certain types of intervention in certain sectors

1.   The Union financial assistance for types of intervention in the wine sector is allocated to Member States as set out in Annex VII.

2.   The Union financial assistance for types of intervention in the apiculture sector is allocated to Member States as set out in Annex X.

3.   The Union financial assistance for types of intervention in the hops sector allocated to Germany shall be EUR 2 188 000 per financial year.

4.   The Union financial assistance for types of intervention in the olive oil and table olives sector, per financial year, is allocated as follows:

| (a) | EUR 10 666 000 for Greece; |
| --- | --- |

(a)

EUR 10 666 000 for Greece;

| (b) | EUR 554 000 for France; and |
| --- | --- |

(b)

EUR 554 000 for France; and

| (c) | EUR 34 590 000 for Italy. |
| --- | --- |

(c)

EUR 34 590 000 for Italy.

5.   The Member States concerned may decide in their CAP Strategic Plans to transfer the total financial allocations referred to in paragraphs 3 and 4 to their allocations for direct payments. That decision may not be reviewed.

The Member States’ financial allocations transferred to allocations for direct payments shall no longer be available for the types of intervention referred to in paragraphs 3 and 4.

6.   Member States may decide in their CAP Strategic Plans to use up to 3 % of their allocations for direct payments set out in Annex V, where relevant after deduction of the allocations for cotton set in Annex VIII, for types of intervention in other sectors referred to in Title III, Chapter III, Section 7.

Member States may decide to increase the percentage referred to in the first subparagraph up to 5 %. In that case, the amount corresponding to that increase shall be deducted from the maximum set in Article 96(1), (2) or (5) and shall no longer be available for allocation to coupled income support interventions referred to in Title III, Chapter II, Section 3, Subsection 1.

The amount corresponding to the percentage of Member States’ allocations for direct payments referred to in the first and second subparagraphs of this paragraph and used for types of intervention in other sectors for a certain financial year shall be considered to be Member States’ allocations per financial year for types of intervention in other sectors.

7.   Member States may, in 2025, review their decisions referred to in paragraph 6 as part of a request for amendment of their CAP Strategic Plans made in accordance with Article 119.

8.   The amounts set out in the approved CAP Strategic Plan resulting from the application of paragraphs 6 and 7 shall be binding in the Member State concerned.

Article 89

Financial allocations for types of intervention for rural development

1.   The total amount of Union support for types of intervention for rural development under this Regulation for the period from 1 January 2023 to 31 December 2027 shall be EUR 60 544 439 600 in current prices in accordance with the multiannual financial framework for the years 2021 to 2027 set out in Regulation (EU, Euratom) 2020/2093.

2.   0,25 % of the resources referred to in paragraph 1 shall be devoted to finance the activities of technical assistance on the initiative of the Commission referred to in Article 7 of Regulation (EU) 2021/2116, including the European CAP network referred to in Article 126(2) of this Regulation and the EIP referred to in Article 127 of this Regulation. Those activities may concern previous programming periods and subsequent CAP Strategic Plan periods.

3.   The annual breakdown by Member State of the amounts referred to in paragraph 1, after deduction of the amount referred to in paragraph 2, is set out in Annex XI.

4.   The Commission is empowered to adopt delegated acts in accordance with Article 152 amending Annex XI to review the annual breakdown by Member State to take account of relevant developments, including the transfers referred to in Articles 17 and 103, to make technical adjustments without changing the overall allocations, or to take account of any other change provided for by a legislative act after the adoption of this Regulation.

Article 90

EAFRD contribution

The Commission implementing decision approving a CAP Strategic Plan pursuant to Article 118(6) shall set the maximum contribution from the EAFRD to the plan. The EAFRD contribution shall be calculated on the basis of the amount of eligible public expenditure, excluding additional national financing referred to in Article 115(5).

Article 91

EAFRD contribution rates

1.   The CAP Strategic Plans shall establish, at regional or national level, a single EAFRD contribution rate applicable to all interventions.

2.   By way of derogation from paragraph 1, the maximum EAFRD contribution rate shall be:

| (a) | 85 % of the eligible public expenditure in less developed regions; |
| --- | --- |

(a)

85 % of the eligible public expenditure in less developed regions;

| (b) | 80 % of the eligible public expenditure in the outermost regions and in the smaller Aegean islands; |
| --- | --- |

(b)

80 % of the eligible public expenditure in the outermost regions and in the smaller Aegean islands;

| (c) | 60 % of the eligible public expenditure in transition regions within the meaning of Article 108(2), first subparagraph, point (b), of Regulation (EU) 2021/1060; |
| --- | --- |

(c)

60 % of the eligible public expenditure in transition regions within the meaning of Article 108(2), first subparagraph, point (b), of Regulation (EU) 2021/1060;

| (d) | 43 % of the eligible public expenditure in the other regions. |
| --- | --- |

(d)

43 % of the eligible public expenditure in the other regions.

3.   By way of derogation from paragraphs 1 and 2, the maximum EAFRD contribution rate shall, if the rate set in the CAP Strategic Plan in accordance with paragraph 2 is lower, be:

| (a) | 65 % of the eligible public expenditure for payments for natural or other area-specific constraints under Article 71; |
| --- | --- |

(a)

65 % of the eligible public expenditure for payments for natural or other area-specific constraints under Article 71;

| (b) | 80 % of the eligible public expenditure for payments under Article 70, for payments under Article 72, for support for non-productive investments referred to in Article 73, for support for the projects of the EIP operational groups under Article 77(1), point (a), and for LEADER under Article 77(1), point (b); |
| --- | --- |

(b)

80 % of the eligible public expenditure for payments under Article 70, for payments under Article 72, for support for non-productive investments referred to in Article 73, for support for the projects of the EIP operational groups under Article 77(1), point (a), and for LEADER under Article 77(1), point (b);

| (c) | 100 % of the eligible public expenditure for operations receiving funding from funds transferred to the EAFRD in accordance with Articles 17 and 103. |
| --- | --- |

(c)

100 % of the eligible public expenditure for operations receiving funding from funds transferred to the EAFRD in accordance with Articles 17 and 103.

4.   The minimum EAFRD contribution rate shall be 20 % of the eligible public expenditure.

5.   The eligible public expenditure referred to in paragraphs 2, 3 and 4 shall exclude the additional national financing referred to in Article 115(5).

Article 92

Minimum financial allocations for LEADER

1.   At least 5 % of the total EAFRD contribution to the CAP Strategic Plan set out in Annex XI shall be reserved for LEADER.

2.   For the entire period of the CAP Strategic Plan, the total EAFRD expenditure for rural development other than for LEADER as established in the financial plan in accordance with Article 112(2), point (a), shall not exceed 95 % of the total EAFRD contribution to the CAP Strategic Plan set out in Annex XI. That financial ceiling, once approved by the Commission in accordance with Article 118 or Article 119, shall constitute a financial ceiling set by Union law.

Article 93

Minimum financial allocations for interventions addressing environmental and climate-related specific objectives

1.   At least 35 % of the total EAFRD contribution to the CAP Strategic Plan as set out in Annex XI shall be reserved for the interventions addressing the specific objectives set out in Article 6(1), points (d), (e) and (f) and, as regards animal welfare, in Article 6(1), point (i).

2.   For the purpose of determining the contribution towards the percentage set out in paragraph 1, Member States shall include expenditure for the following interventions:

| (a) | 100 % for management commitments referred to in Article 70; |
| --- | --- |

(a)

100 % for management commitments referred to in Article 70;

| (b) | 50 % for natural or other area-specific constraints referred to in Article 71; |
| --- | --- |

(b)

50 % for natural or other area-specific constraints referred to in Article 71;

| (c) | 100 % for area-specific disadvantages referred to in Article 72; |
| --- | --- |

(c)

100 % for area-specific disadvantages referred to in Article 72;

| (d) | 100 % for investments under Articles 73 and 74 linked to one or more of the specific objectives set out in Article 6(1), points (d), (e) and (f) and, as regards animal welfare, in Article 6(1), point (i). |
| --- | --- |

(d)

100 % for investments under Articles 73 and 74 linked to one or more of the specific objectives set out in Article 6(1), points (d), (e) and (f) and, as regards animal welfare, in Article 6(1), point (i).

3.   For the entire period of the CAP Strategic Plan, the total EAFRD expenditure for rural development other than for the interventions referred to in paragraph 2 of this Article, as established in the financial plan in accordance with Article 112(2), point (a), shall not exceed 65 % of the total EAFRD contribution to the CAP Strategic Plan as set out in Annex XI. That financial ceiling, once approved by the Commission in accordance with Article 118 or Article 119, shall constitute a financial ceiling set by Union law.

4.   This Article shall not apply to expenditure for the outermost regions.

Article 94

Maximum financial allocations for technical assistance

1.   A maximum of 4 % of the total EAFRD contribution to the CAP Strategic Plan as set out in Annex XI may be used to finance the actions of technical assistance at the initiative of the Member States referred to in Article 125.

The EAFRD contribution may be increased to 6 % for CAP Strategic Plans where the total amount of Union support for rural development is up to EUR 1,1 billion.

2.   Technical assistance shall be reimbursed as a flat-rate financing in accordance with Article 125(1), point (e), of the Financial Regulation in the framework of interim payments pursuant to Article 32 of Regulation (EU) 2021/2116. That flat rate shall represent the percentage set in the CAP Strategic Plan for technical assistance of the total expenditure declared.

Article 95

Minimum financial allocations for support for young farmers

1.   For each Member State the minimum amount set out in Annex XII shall be reserved for contributing to the achievement of the specific objective set out in Article 6(1), point (g). On the basis of the analysis of the situation in terms of strengths, weaknesses, opportunities and threats (‘the SWOT analysis’) and the identification of the needs that are to be addressed, the amount shall be used for either or both of the following types of intervention:

| (a) | the complementary income support for young farmers laid down in Article 30; |
| --- | --- |

(a)

the complementary income support for young farmers laid down in Article 30;

| (b) | the setting-up of young farmers referred to in Article 75(2), point (a). |
| --- | --- |

(b)

the setting-up of young farmers referred to in Article 75(2), point (a).

2.   In addition to the types of intervention referred to in paragraph 1 of this Article, Member States may use the minimum amount referred to in that paragraph for investment interventions for young farmers referred to in Article 73, provided that a higher support rate in accordance with Article 73(4), second subparagraph, point (a)(ii), is applied. When that possibility is used, a maximum of 50 % of the expenditure for investments referred to in the first sentence shall be counted against the minimum amount to be reserved.

3.   For each calendar year, the total expenditure for types of intervention in the form of direct payments other than the complementary income support for young farmers laid down in Article 30 shall not exceed the financial allocation for direct payments for the relevant calendar year as laid down in Annex V, reduced by the part of Annex XII reserved under the complementary income support for young farmers for the relevant calendar year, as established by Member States in their financial plans in accordance with Article 112(2), point (a), and approved by the Commission in accordance with Article 118 or Article 119. That financial ceiling shall constitute a financial ceiling set by Union law.

4.   For the entire period of the CAP plan, the total EAFRD expenditure for rural development other than for the setting-up of young farmers referred to in Article 75(2), point (a), shall not exceed the total EAFRD contribution to the CAP Strategic Plan as set out in Annex XI, reduced by the part of Annex XII reserved for the setting-up of young farmers referred to in Article 75(2), point (a), for the entire CAP Strategic Plan period, as established by Member States in their financial plans in accordance with Article 112(2), point (a), and approved by the Commission in accordance with Article 118 or Article 119. That financial ceiling shall constitute a financial ceiling set by Union law.

5.   Where a Member State decides to use the possibility provided for in paragraph 2 of this Article, the share of expenditure for investment interventions for young farmers with a higher support rate in accordance with Article 73(4), second subparagraph, point (a)(ii), not exceeding 50 % as established by that Member State in its financial plan in accordance with Article 112(2), point (a), and approved by the Commission in accordance with Article 118 or Article 119, shall be counted for the establishment of the financial ceiling referred to in paragraph 4 of this Article.

Article 96

Maximum financial allocations for coupled income support

1.   The indicative financial allocations for the coupled income support interventions referred to in Title III, Chapter II, Section 3, Subsection 1, shall be limited to a maximum of 13 % of the amounts set out in Annex IX.

2.   By way of derogation from paragraph 1, Member States that, in accordance with Article 53(4) of Regulation (EU) No 1307/2013, used for the purpose of voluntary coupled support more than 13 % of their annual national ceiling set out in Annex II to that Regulation may decide to use for the purpose of coupled income support more than 13 % of the amount set out in Annex IX to this Regulation. The resulting percentage shall not exceed the percentage approved by the Commission for voluntary coupled support in respect of claim year 2018.

3.   The percentage referred to in paragraph 1 may be increased by a maximum of 2 percentage points, provided that the amount corresponding to the percentage exceeding the 13 % is allocated to the support for protein crops under Title III, Chapter II, Section 3, Subsection 1.

4.   The amount included in the approved CAP Strategic Plan resulting from the application of paragraphs 1, 2 and 3 may not be exceeded.

5.   By way of derogation from paragraphs 1 and 2, Member States may choose to use up to EUR 3 million per year for financing coupled income support.

6.   Without prejudice to Article 17 of Regulation (EU) 2021/2116, the maximum amount which may be granted in a Member State before the application of Article 17 of this Regulation pursuant Title III, Chapter II, Section 3, Subsection 1, of this Regulation in respect of a calendar year shall not exceed the amounts fixed in the CAP Strategic Plan in accordance with this Article.

Article 97

Minimum financial allocations for eco-schemes

1.   At least 25 % of the allocations set out in Annex IX shall be reserved for every calendar year from 2023 to 2027 for eco-schemes referred to in Title III, Chapter II, Section 2, Subsection 4.

2.   Where the amount of the total EAFRD contribution reserved by a Member State for interventions in accordance with Articles 70, 72, 73 and 74, insofar as those interventions address the specific objectives set out in Article 6(1), points (d), (e) and (f) and, as regards animal welfare, in Article 6(1), point (i), exceeds 30 % of the total EAFRD contribution as set out in Annex XI for the CAP Strategic Plan period, Member States may reduce the sum of the amounts to be reserved under paragraph 1 of this Article. The total reduction shall not be higher than the amount by which the percentage referred to in the first sentence is exceeded.

3.   The reduction referred to in paragraph 2 may not lead to a reduction of the annual amount to be reserved for eco-schemes for the CAP Strategic Plan period pursuant to paragraph 1 by more than 50 %.

4.   By way of derogation from paragraph 3, Member States may reduce the annual amount to be reserved pursuant to paragraph 1 by up to 75 % if the total amount planned for interventions under Article 70 over the CAP Strategic Plan period amounts to more than 150 % of the sum of the amounts to be reserved pursuant to paragraph 1 of this Article before application of paragraph 2.

5.   Member States may, in calendar years 2023 and 2024, in accordance with Article 101(3), use amounts reserved in accordance with this Article for eco-schemes to finance in that year other interventions referred to in Title III, Chapter II, Section 2, provided that all possibilities to use the funds for eco-schemes have been exhausted,

| (a) | up to a threshold corresponding to 5 % of the amounts set out in Annex IX for the calendar year concerned; |
| --- | --- |

(a)

up to a threshold corresponding to 5 % of the amounts set out in Annex IX for the calendar year concerned;

| (b) | above a threshold corresponding to 5 % of the amounts set out in Annex IX for the calendar year concerned, provided that the conditions of paragraph 6 are complied with. |
| --- | --- |

(b)

above a threshold corresponding to 5 % of the amounts set out in Annex IX for the calendar year concerned, provided that the conditions of paragraph 6 are complied with.

6.   When applying paragraph 5, point (b), Member States shall amend their CAP Strategic Plans in accordance with Article 119 in order to:

| (a) | increase the amounts reserved in accordance with this Article for eco-schemes for the remaining years of the CAP Strategic Plan period by an amount at least equivalent to the amount used to finance other interventions referred to in Title III, Chapter II, Section 2, in accordance with paragraph 5, point (b), of this Article; or |
| --- | --- |

(a)

increase the amounts reserved in accordance with this Article for eco-schemes for the remaining years of the CAP Strategic Plan period by an amount at least equivalent to the amount used to finance other interventions referred to in Title III, Chapter II, Section 2, in accordance with paragraph 5, point (b), of this Article; or

| (b) | increase the amounts reserved for interventions under Articles 70, 72, 73 and 74, insofar as those interventions address the specific objectives set out in Article 6(1), points (d), (e) and (f) and, as regards animal welfare, in Article 6(1), point (i), by an amount at least equivalent to the amount used to finance other interventions referred to in Title III, Chapter II, Section 2, in accordance with paragraph 5, point (b), of this Article. Additional amounts reserved for interventions under Articles 70, 72, 73 and 74 in accordance with this paragraph shall not be taken into account if a Member State makes use of the option referred to in paragraph 2 of this Article. |
| --- | --- |

(b)

increase the amounts reserved for interventions under Articles 70, 72, 73 and 74, insofar as those interventions address the specific objectives set out in Article 6(1), points (d), (e) and (f) and, as regards animal welfare, in Article 6(1), point (i), by an amount at least equivalent to the amount used to finance other interventions referred to in Title III, Chapter II, Section 2, in accordance with paragraph 5, point (b), of this Article. Additional amounts reserved for interventions under Articles 70, 72, 73 and 74 in accordance with this paragraph shall not be taken into account if a Member State makes use of the option referred to in paragraph 2 of this Article.

7.   If a Member State, when applying paragraph 5, point (a), uses for the total period 2023 to 2024 an amount exceeding 2,5 % of the sum of the allocations set out in Annex IX for the years 2023 and 2024 to finance other interventions referred to in Title III, Chapter II, Section 2, it shall compensate for the amounts exceeding the 2,5 % of the sum of the allocations set out in Annex IX for the years 2023 and 2024 and used to finance in those years other interventions referred to in Title III, Chapter II, Section 2, by amending its CAP Strategic Plan in accordance with Article 119 in order to:

| (a) | increase the amounts reserved in accordance with this Article for eco-schemes for the remaining years of the CAP Strategic Plan period by an amount at least equivalent to the amounts exceeding the 2,5 % of the sum of the allocations set out in Annex IX for the years 2023 and 2024; or |
| --- | --- |

(a)

increase the amounts reserved in accordance with this Article for eco-schemes for the remaining years of the CAP Strategic Plan period by an amount at least equivalent to the amounts exceeding the 2,5 % of the sum of the allocations set out in Annex IX for the years 2023 and 2024; or

| (b) | increase the amounts reserved for interventions under Articles 70, 72, 73 and 74, insofar as those interventions address the specific objectives set out in Article 6(1), points (d), (e) and (f) and, as regards animal welfare, in Article 6(1), point (i), by an amount at least equivalent to the amount exceeding the 2,5 % of the sum of the allocations set out in Annex IX for the years 2023 and 2024. Additional amounts reserved for interventions under Articles 70, 72, 73 and 74 in accordance with this paragraph shall not be taken into account if a Member State makes use of the option referred to in paragraph 2 of this Article. |
| --- | --- |

(b)

increase the amounts reserved for interventions under Articles 70, 72, 73 and 74, insofar as those interventions address the specific objectives set out in Article 6(1), points (d), (e) and (f) and, as regards animal welfare, in Article 6(1), point (i), by an amount at least equivalent to the amount exceeding the 2,5 % of the sum of the allocations set out in Annex IX for the years 2023 and 2024. Additional amounts reserved for interventions under Articles 70, 72, 73 and 74 in accordance with this paragraph shall not be taken into account if a Member State makes use of the option referred to in paragraph 2 of this Article.

8.   Member States may, in calendar years 2025 and 2026, in accordance with Article 101(3), use an amount up to a threshold corresponding to 2 % of the amounts set out in Annex IX for the calendar year concerned, and reserved in accordance with this Article for eco-schemes to finance within the same year other interventions referred to in Title III, Chapter II, Section 2, provided that all possibilities to use the funds for eco-schemes have been exhausted and the conditions of paragraph 9 are complied with.

9.   When applying paragraph 8, Member States shall amend their CAP Strategic Plans in accordance with Article 119 in order to:

| (a) | increase the amounts reserved in accordance with this Article for eco-schemes for the remaining years of the CAP Strategic Plan period by an amount at least equivalent to the amount used to finance other interventions referred to in Title III, Chapter II, Section 2, in accordance with paragraph 8; or |
| --- | --- |

(a)

increase the amounts reserved in accordance with this Article for eco-schemes for the remaining years of the CAP Strategic Plan period by an amount at least equivalent to the amount used to finance other interventions referred to in Title III, Chapter II, Section 2, in accordance with paragraph 8; or

| (b) | increase the amounts reserved for interventions under Articles 70, 72, 73 and 74, insofar as those interventions address the specific objectives set out in Article 6(1), points (d), (e) and (f) and, as regards animal welfare, in Article 6(1), point (i), by an amount at least equivalent to the amount used to finance other interventions referred to in Title III, Chapter II, Section 2, in accordance with paragraph 8 of this Article. Additional amounts reserved for interventions under Articles 70, 72, 73 and 74 in accordance with this paragraph shall not be taken into account if a Member State makes use of the option referred to in paragraph 2 of this Article. |
| --- | --- |

(b)

increase the amounts reserved for interventions under Articles 70, 72, 73 and 74, insofar as those interventions address the specific objectives set out in Article 6(1), points (d), (e) and (f) and, as regards animal welfare, in Article 6(1), point (i), by an amount at least equivalent to the amount used to finance other interventions referred to in Title III, Chapter II, Section 2, in accordance with paragraph 8 of this Article. Additional amounts reserved for interventions under Articles 70, 72, 73 and 74 in accordance with this paragraph shall not be taken into account if a Member State makes use of the option referred to in paragraph 2 of this Article.

10.   For each calendar year as from calendar year 2025, the total expenditure for types of intervention in the form of direct payments other than eco-schemes shall not exceed the financial allocation for direct payments for the relevant calendar year as laid down in Annex V, reduced by an amount corresponding to 23 % of the amount in Annex IX reserved for eco-schemes in accordance with this paragraph for calendar years 2025 and 2026, and corresponding to 25 % of the amount in Annex IX reserved for eco-schemes in accordance with this paragraph for calendar year 2027, where relevant corrected by the amount resulting from the application of paragraphs 2, 3, 4, 6, 7 and 9 of this Article, and as established by Member States in their financial plans in accordance with Article 112(2), point (a), and approved by the Commission in accordance with Article 118 or Article 119. That financial ceiling shall constitute a financial ceiling set by Union law.

11.   If Member States apply paragraphs 2, 3, 4, 6, 7 and 9 of this Article for the entire CAP Strategic Plan period, the total EAFRD expenditure for rural development other than the amounts reserved for interventions in accordance with Articles 70, 72, 73 and 74, insofar as those interventions address the specific objectives set out in Article 6(1), points (d), (e) and (f) and, as regards animal welfare, in Article 6(1), point (i), shall not exceed the total EAFRD contribution for rural development for the entire CAP Strategic Plan period as set out in Annex XI, reduced by the amounts reserved for interventions in accordance with Articles 70, 72, 73 and 74, insofar as those interventions address the specific objectives set out in Article 6(1), points (d), (e) and (f) and, as regards animal welfare, in Article 6(1), point (i), following the application of paragraphs 2, 6, 7 and 9 of this Article, as established by Member States in their financial plans in accordance with Article 112(2), point (a), and approved by the Commission in accordance with Article 118 or Article 119. That financial ceiling shall constitute a financial ceiling set by Union law.

Article 98

Minimum financial allocations for the redistributive income support

1.   At least 10 % of the allocations set out in Annex IX shall be reserved annually for the redistributive income support referred to in Article 29.

2.   For each calendar year, the total expenditure for types of intervention in the form of direct payments other than the redistributive income support shall not exceed the financial allocation for direct payments for the relevant calendar year as laid down in Annex V, reduced by an amount corresponding to 10 % of the financial allocation for direct payments for the relevant calendar year as laid down in Annex IX, where relevant corrected following the application of Article 29(1), second subparagraph, as established by Member States in their financial plans in accordance with Article 112(2), point (a), and approved by the Commission in accordance with Article 118 or Article 119. That financial ceiling shall constitute a financial ceiling set by Union law.

Article 99

Voluntary contribution from the EAFRD allocation to actions under LIFE and Erasmus+

Member States may decide in their CAP Strategic Plans to use a certain share of the EAFRD allocation to leverage support and upscale integrated Strategic Nature Projects benefitting farmers’ communities as provided for under Regulation (EU) 2021/783 and to finance actions in respect of transnational learning mobility of people in the field of agricultural and rural development with a focus on young farmers and women in rural areas, in accordance with Regulation (EU) 2021/817 of the European Parliament and of the Council (49).

49

Article 100

Tracking climate expenditure

1.   On the basis of the information provided by Member States, the Commission shall evaluate the contribution of the policy to achieving the climate change objectives using a simple and common methodology.

2.   The contribution to achieving the expenditure target shall be estimated through the application of specific weightings differentiated on the basis of whether the support makes a significant or a moderate contribution towards achieving climate change objectives. Those weightings shall be as follows:

| (a) | 40 % for the expenditure under the basic income support and the complementary income support referred to in Title III, Chapter II, Section 2, Subsections 2 and 3; |
| --- | --- |

(a)

40 % for the expenditure under the basic income support and the complementary income support referred to in Title III, Chapter II, Section 2, Subsections 2 and 3;

| (b) | 100 % for expenditure under the eco-schemes referred to in Title III, Chapter II, Section 2, Subsection 4; |
| --- | --- |

(b)

100 % for expenditure under the eco-schemes referred to in Title III, Chapter II, Section 2, Subsection 4;

| (c) | 100 % for expenditure for the interventions referred to in Article 93(1) other than those referred to in point (d) of this paragraph; |
| --- | --- |

(c)

100 % for expenditure for the interventions referred to in Article 93(1) other than those referred to in point (d) of this paragraph;

| (d) | 40 % for expenditure for natural or other area-specific constraints referred to in Article 71. |
| --- | --- |

(d)

40 % for expenditure for natural or other area-specific constraints referred to in Article 71.

3.   The Commission is empowered to adopt delegated acts after 31 December 2025 in accordance with Article 152 amending paragraph 2 of this Article to modify the weightings referred to therein where such modification is warranted for more precise tracking of expenditure on environmental and climate-related objectives.

Article 101

Indicative financial allocations

1.   Member States shall set out, in their CAP Strategic Plans, an indicative financial allocation for each intervention and for each year. This indicative financial allocation shall represent the expected level of payments under the CAP Strategic Plan for the intervention in the relevant financial year, excluding expected payments on the basis of additional national financing referred to in Article 115(5).

2.   By derogation to paragraph 1, for the types of intervention in the sectors referred to in Article 42, points (a), (d), (e) and (f), Member States shall set out, in their CAP Strategic Plans, an indicative financial allocation for each sector and for each year, representing the expected level of payments for the interventions in that sector per financial year, excluding expected payments on the basis of national financial assistance referred to in Article 53.

3.   The indicative financial allocations set out by Member States in accordance with paragraphs 1 and 2 shall not prevent those Member States from using funds from those indicative financial allocations as funds for other interventions, without amending their CAP Strategic Plans in accordance with Article 119, subject to compliance with this Regulation, and in particular with Articles 87, 88, 89, 90, 92 to 98 and 102 thereof, and with Regulation (EU) 2021/2116, and in particular with Article 32(6), point (b), thereof, as well as with the following conditions:

| (a) | financial allocations for interventions in the form of direct payments are used for other interventions in the form of direct payments; |
| --- | --- |

(a)

financial allocations for interventions in the form of direct payments are used for other interventions in the form of direct payments;

| (b) | financial allocations for rural development interventions are used for other interventions for rural development; |
| --- | --- |

(b)

financial allocations for rural development interventions are used for other interventions for rural development;

| (c) | financial allocations for interventions in the apiculture sector and in the wine sector are only used for other interventions in the same sector; |
| --- | --- |

(c)

financial allocations for interventions in the apiculture sector and in the wine sector are only used for other interventions in the same sector;

| (d) | financial allocations for interventions in other sectors referred to in Article 42, point (f), are used for interventions in other sectors referred to in that point laid down in the CAP Strategic Plan and such use does not affect approved operational programmes. |
| --- | --- |

(d)

financial allocations for interventions in other sectors referred to in Article 42, point (f), are used for interventions in other sectors referred to in that point laid down in the CAP Strategic Plan and such use does not affect approved operational programmes.

For the purpose of the first subparagraph, point (a), Member States which have decided to grant the basic income support on the basis of payment entitlements in accordance with Article 23 may linearly increase or decrease the amounts to be paid on the basis of the value of the entitlements activated in the calendar year, within the limits of the minimum and maximum planned unit amounts set out for interventions under the basic income support in accordance with Article 102(2).

Article 102

Planned unit amounts and planned outputs

1.   Member States shall set out one or more planned unit amounts for each intervention included in their CAP Strategic Plans. The planned unit amount may be uniform or average, as determined by Member States. The ‘planned uniform unit amount’ is the value that is expected to be paid for each related output. The ‘planned average unit amount’ is the average value of the different unit amounts that are expected to be paid for the related outputs.

For interventions covered by the integrated system referred to in Article 65(2) of Regulation (EU) 2021/2116, uniform unit amounts shall be set out, except where uniform unit amounts are not possible or appropriate because of the design or scope of the intervention. In such cases, average unit amounts shall be set out.

2.   For types of intervention in the form of direct payments, Member States may set maximum or minimum planned unit amounts or both for each unit amount planned for each intervention.

The ‘maximum planned unit amount’ and the ‘minimum planned unit amount’ are the maximum and minimum unit amounts that are expected to be paid for the related outputs.

When setting the maximum or minimum planned unit amounts or both, Member States may justify those values with the necessary flexibility for reallocation to avoid unused funds.

The realised unit amount referred to in Article 134(5), first subparagraph, point (c), may only be lower than the planned unit amount or the minimum planned unit amount, where such amount is set out, to prevent an excess of the financial allocations for types of intervention in the form of direct payments referred to in Article 87(1).

3.   For types of intervention for rural development, when using planned average unit amounts, Member States may set a maximum planned average unit amount.

The ‘maximum planned average unit amount’ is the maximum amount that is expected to be paid on average for the related outputs.

4.   Where different unit amounts are established for an intervention, paragraphs 2 and 3 shall apply to each relevant unit amount of that intervention.

5.   Member States shall set out the annual planned outputs for each intervention quantified for each planned uniform or average unit amount. Within an intervention, the annual planned outputs may be provided at an aggregated level for all unit amounts or for a group of unit amounts.

Article 103

Flexibility between direct payment allocations and EAFRD allocations

1.   As part of its CAP Strategic Plan proposal referred to in Article 118(1), a Member State may decide to transfer:

| (a) | up to 25 % of its allocation for direct payments set out in Annex V, where relevant after deduction of the allocations for cotton set in Annex VIII for calendar years 2023 to 2026, to its allocation for the EAFRD in financial years 2024 to 2027; or |
| --- | --- |

(a)

up to 25 % of its allocation for direct payments set out in Annex V, where relevant after deduction of the allocations for cotton set in Annex VIII for calendar years 2023 to 2026, to its allocation for the EAFRD in financial years 2024 to 2027; or

| (b) | up to 25 % of its allocation for the EAFRD in financial years 2024 to 2027 to its allocation for direct payments set out in Annex V for calendar years 2023 to 2026. |
| --- | --- |

(b)

up to 25 % of its allocation for the EAFRD in financial years 2024 to 2027 to its allocation for direct payments set out in Annex V for calendar years 2023 to 2026.

2.   The percentage of transfer from a Member State’s allocation for direct payments to its allocation for the EAFRD referred to in paragraph 1, point (a), may be increased by:

| (a) | up to 15 percentage points if that Member State uses the corresponding increase for EAFRD-financed interventions addressing the specific objectives set out in Article 6(1), points (d), (e) and (f); |
| --- | --- |

(a)

up to 15 percentage points if that Member State uses the corresponding increase for EAFRD-financed interventions addressing the specific objectives set out in Article 6(1), points (d), (e) and (f);

| (b) | up to 2 percentage points if that Member State uses the corresponding increase in accordance with Article 95(1), point (b). |
| --- | --- |

(b)

up to 2 percentage points if that Member State uses the corresponding increase in accordance with Article 95(1), point (b).

3.   The percentage of transfer from a Member State’s allocation for the EAFRD to its allocation for direct payments referred to in paragraph 1, point (b), may be increased to 30 % for Member States with direct payments per hectare below 90 % of the Union average. This condition is fulfilled in the case of Bulgaria, Estonia, Spain, Latvia, Lithuania, Poland, Portugal, Romania, Slovakia, Finland and Sweden.

4.   The decisions referred to in paragraph 1 shall set out the percentage referred to in paragraphs 1, 2 and 3, which may vary by calendar year.

5.   Member States may, in 2025, review their decisions referred to in paragraph 1 as part of a request for amendment of their CAP Strategic Plans referred to in Article 119.

TITLE V

CAP STRATEGIC PLAN

CHAPTER I

GENERAL REQUIREMENTS

Article 104

CAP Strategic Plans

1.   Member States shall establish CAP Strategic Plans in accordance with this Regulation to implement the Union support financed by the EAGF and the EAFRD for the achievement of the specific objectives set out in Article 6(1) and (2).

2.   Each Member State shall establish a single CAP Strategic Plan for its entire territory, taking into account its constitutional and institutional provisions.

Where elements of the CAP Strategic Plan are established at regional level, the Member State shall ensure the coherence and the consistency with the elements of the CAP Strategic Plan established at national level. The elements established at regional level shall be appropriately reflected in the relevant sections of the CAP Strategic Plan as laid down in Article 107.

3.   Based on the SWOT analysis referred to in Article 115(2) and an assessment of needs referred to in Article 108, Member State shall establish in the CAP Strategic Plans an intervention strategy as referred to in Article 109 in which quantitative targets and milestones shall be set to achieve the specific objectives set out in Article 6(1) and (2). The targets shall be set using a common set of result indicators set out in Annex I.

To reach those targets Member States shall set out interventions based on the types of intervention laid down in Title III.

4.   Each CAP Strategic Plan shall cover the period from 1 January 2023 to 31 December 2027.

Article 105

Increased ambition with regard to environmental and climate-related objectives

1.   Member States shall aim to make, through their CAP Strategic Plans and in particular through the elements of the intervention strategy referred to in Article 109(2), point (a), a greater overall contribution to the achievement of the specific objectives set out in Article 6(1), points (d), (e) and (f), in comparison to the overall contribution made to the achievement of the objective laid down in Article 110(2), first subparagraph, point (b), of Regulation (EU) No 1306/2013 through support under the EAGF and the EAFRD in the period 2014 to 2020.

2.   Member States shall explain in their CAP Strategic Plans, on the basis of available information, how they intend to achieve the greater overall contribution set out in paragraph 1. That explanation shall be based on relevant information, such as the elements referred to in Article 107(1), points (a) to (f), and in Article 107(2), point (b), as well as the expected improvements against the relevant impact indicators set out in Annex I.

Article 106

Procedural requirements

1.   Member States shall draw up the CAP Strategic Plans on the basis of transparent procedures, where applicable in collaboration with their regions, in accordance with their institutional and legal framework.

2.   The body of the Member State responsible for drawing up the CAP Strategic Plan shall ensure that:

| (a) | where applicable, the relevant authorities at regional level are effectively involved in the preparation of the CAP Strategic Plan; and |
| --- | --- |

(a)

where applicable, the relevant authorities at regional level are effectively involved in the preparation of the CAP Strategic Plan; and

| (b) | the public competent authorities for the environment and climate are effectively involved in the preparation of the environmental and climate-related aspects of the CAP Strategic Plan. |
| --- | --- |

(b)

the public competent authorities for the environment and climate are effectively involved in the preparation of the environmental and climate-related aspects of the CAP Strategic Plan.

3.   Each Member State shall organise a partnership with the competent regional and local authorities. The partnership shall include at least the following partners:

| (a) | relevant authorities at regional and local level, as well as other public authorities, including authorities competent for environmental and climate issues; |
| --- | --- |

(a)

relevant authorities at regional and local level, as well as other public authorities, including authorities competent for environmental and climate issues;

| (b) | economic and social partners, including representatives of the agricultural sector; |
| --- | --- |

(b)

economic and social partners, including representatives of the agricultural sector;

| (c) | relevant bodies representing civil society and where relevant bodies responsible for promoting social inclusion, fundamental rights, gender equality and non-discrimination. |
| --- | --- |

(c)

relevant bodies representing civil society and where relevant bodies responsible for promoting social inclusion, fundamental rights, gender equality and non-discrimination.

Member States shall effectively involve those partners in the preparation of the CAP Strategic Plans and shall consult with relevant stakeholders, including as regards the minimum standards referred to in Article 13, where appropriate.

4.   Member States, including where applicable their regions, and the Commission shall cooperate to ensure effective coordination in the implementation of CAP Strategic Plans, taking account of the principles of proportionality and shared management.

5.   The organisation and implementation of partnership shall be carried out in accordance with the delegated act adopted on the basis of Article 5(3) of Regulation (EU) No 1303/2013.

CHAPTER II

CONTENT OF THE CAP STRATEGIC PLAN

Article 107

Content of the CAP Strategic Plan

1.   Each CAP Strategic Plan shall contain sections on the following:

| (a) | the assessment of needs; |
| --- | --- |

(a)

the assessment of needs;

| (b) | the intervention strategy; |
| --- | --- |

(b)

the intervention strategy;

| (c) | the elements common to several interventions; |
| --- | --- |

(c)

the elements common to several interventions;

| (d) | the direct payments, interventions in certain sectors and interventions for rural development specified in the strategy; |
| --- | --- |

(d)

the direct payments, interventions in certain sectors and interventions for rural development specified in the strategy;

| (e) | target and financial plans; |
| --- | --- |

(e)

target and financial plans;

| (f) | the governance and coordination system; |
| --- | --- |

(f)

the governance and coordination system;

| (g) | the elements that ensure modernisation of the CAP; |
| --- | --- |

(g)

the elements that ensure modernisation of the CAP;

| (h) | where elements of the CAP Strategic Plan are established at regional level, a short description about the Member State’s national and regional set-up, and in particular which elements are established at national and at regional level. |
| --- | --- |

(h)

where elements of the CAP Strategic Plan are established at regional level, a short description about the Member State’s national and regional set-up, and in particular which elements are established at national and at regional level.

2.   Each CAP Strategic Plan shall contain the following annexes:

| (a) | Annex I on the ex-ante evaluation and the strategic environmental assessment (SEA) referred to in Directive 2001/42/EC of the European Parliament and of the Council (50); |
| --- | --- |

(a)

Annex I on the ex-ante evaluation and the strategic environmental assessment (SEA) referred to in Directive 2001/42/EC of the European Parliament and of the Council (50);

| (b) | Annex II on the SWOT analysis; |
| --- | --- |

(b)

Annex II on the SWOT analysis;

| (c) | Annex III on the consultation of the partners; |
| --- | --- |

(c)

Annex III on the consultation of the partners;

| (d) | where relevant, Annex IV on the crop-specific payment for cotton; |
| --- | --- |

(d)

where relevant, Annex IV on the crop-specific payment for cotton;

| (e) | Annex V on the additional national financing provided within the scope of the CAP Strategic Plan; |
| --- | --- |

(e)

Annex V on the additional national financing provided within the scope of the CAP Strategic Plan;

| (f) | where relevant, Annex VI on transitional national aid. |
| --- | --- |

(f)

where relevant, Annex VI on transitional national aid.

3.   Detailed rules for the content of the sections and the annexes of the CAP Strategic Plans referred to in paragraphs 1 and 2 are laid down in Articles 108 to 115.

Article 108

Assessment of needs

The assessment of needs referred to in Article 107(1), point (a), shall include the following:

| (a) | summary of the SWOT analysis as referred to in Article 115(2); |
| --- | --- |

(a)

summary of the SWOT analysis as referred to in Article 115(2);

| (b) | identification of needs for each specific objective set out in Article 6(1) and (2) based on the evidence from the SWOT analysis; all the needs arising from the SWOT analysis shall be described, regardless whether they will be addressed through the CAP Strategic Plan or not; |
| --- | --- |

(b)

identification of needs for each specific objective set out in Article 6(1) and (2) based on the evidence from the SWOT analysis; all the needs arising from the SWOT analysis shall be described, regardless whether they will be addressed through the CAP Strategic Plan or not;

| (c) | for the specific objective of supporting viable farm income and resilience set out in Article 6(1), point (a), an assessment of needs in relation to a fairer distribution and more effective and efficient targeting of direct payments, where relevant taking into account their farm structure, and in relation to risk management; |
| --- | --- |

(c)

for the specific objective of supporting viable farm income and resilience set out in Article 6(1), point (a), an assessment of needs in relation to a fairer distribution and more effective and efficient targeting of direct payments, where relevant taking into account their farm structure, and in relation to risk management;

| (d) | where relevant, an analysis of the needs of specific geographical areas, such as the outermost regions as well as mountain and island areas; |
| --- | --- |

(d)

where relevant, an analysis of the needs of specific geographical areas, such as the outermost regions as well as mountain and island areas;

| (e) | prioritisation of needs, including a sound justification of the choices made covering if relevant the reasons why certain identified needs are not addressed or partially addressed in the CAP Strategic Plan. |
| --- | --- |

(e)

prioritisation of needs, including a sound justification of the choices made covering if relevant the reasons why certain identified needs are not addressed or partially addressed in the CAP Strategic Plan.

For the specific objectives set out in Article 6(1), points (d), (e), and (f), the assessment of needs shall take into account the national environmental and climate plans emanating from the legislative acts listed in Annex XIII.

Member States shall use for their assessment of needs data which are recent and reliable and, where available, disaggregated by gender.

Article 109

Intervention strategy

1.   The intervention strategy referred to in Article 107(1), point (b), shall set out, for each specific objective set out in Article 6(1) and (2) and addressed in the CAP Strategic Plan:

| (a) | targets and related milestones for the relevant result indicators used by the Member State on the basis of its assessment of needs referred to in Article 108. The value of those targets shall be justified on the basis of that assessment of needs. As regards the specific objectives set out in Article 6(1), points (d), (e), and (f), targets shall be derived from the elements of explanation given in paragraph 2, point (a), of this Article; |
| --- | --- |

(a)

targets and related milestones for the relevant result indicators used by the Member State on the basis of its assessment of needs referred to in Article 108. The value of those targets shall be justified on the basis of that assessment of needs. As regards the specific objectives set out in Article 6(1), points (d), (e), and (f), targets shall be derived from the elements of explanation given in paragraph 2, point (a), of this Article;

| (b) | interventions, based on the types of intervention set out in Title III, which shall be designed to address the specific situation in the area concerned, following a sound intervention logic, supported by the ex-ante evaluation referred to in Article 139, the SWOT analysis referred to in Article 115(2) and the assessment of needs referred to in Article 108; |
| --- | --- |

(b)

interventions, based on the types of intervention set out in Title III, which shall be designed to address the specific situation in the area concerned, following a sound intervention logic, supported by the ex-ante evaluation referred to in Article 139, the SWOT analysis referred to in Article 115(2) and the assessment of needs referred to in Article 108;

| (c) | elements showing how the interventions allow reaching the targets and how they are mutually coherent and compatible; |
| --- | --- |

(c)

elements showing how the interventions allow reaching the targets and how they are mutually coherent and compatible;

| (d) | elements demonstrating that the allocation of financial resources to the interventions of the CAP Strategic Plan is justified and adequate to achieve the targets set, and is consistent with the financial plan referred to in Article 112. |
| --- | --- |

(d)

elements demonstrating that the allocation of financial resources to the interventions of the CAP Strategic Plan is justified and adequate to achieve the targets set, and is consistent with the financial plan referred to in Article 112.

2.   The intervention strategy shall demonstrate the consistency of the strategy and the complementarity of interventions across the specific objectives set out in Article 6(1) and (2) by providing:

| (a) | an overview of the environmental and climate architecture of the CAP Strategic Plan which describes the following:






  (i) | for each GAEC standard listed in Annex III, the way in which the Union standard is implemented, including the following elements: summary of the on-farm practice, territorial scope, types of farmers and other beneficiaries subject to the standard, and where necessary a description of how the practice contributes to achieving that GAEC standard’s main objective; |
| --- | --- | --- |

(a)

an overview of the environmental and climate architecture of the CAP Strategic Plan which describes the following:

(i)

for each GAEC standard listed in Annex III, the way in which the Union standard is implemented, including the following elements: summary of the on-farm practice, territorial scope, types of farmers and other beneficiaries subject to the standard, and where necessary a description of how the practice contributes to achieving that GAEC standard’s main objective;

| (ii) | the overall contribution of conditionality to achieving the specific objectives set out in Article 6(1), points (d), (e) and (f); |
| --- | --- |

(ii)

the overall contribution of conditionality to achieving the specific objectives set out in Article 6(1), points (d), (e) and (f);

| (iii) | the complementarity between the relevant baseline conditions, as referred to in Article 31(5) and Article 70(3), conditionality and the different interventions, including support for organic farming, addressing the specific objectives set out in Article 6(1), points (d), (e), and (f); |
| --- | --- |

(iii)

the complementarity between the relevant baseline conditions, as referred to in Article 31(5) and Article 70(3), conditionality and the different interventions, including support for organic farming, addressing the specific objectives set out in Article 6(1), points (d), (e), and (f);

| (iv) | the way to achieve the greater overall contribution set out in Article 105; |
| --- | --- |

(iv)

the way to achieve the greater overall contribution set out in Article 105;

| (v) | how the environmental and climate architecture of the CAP Strategic Plan is meant to contribute to the achievement of, and be consistent with, the long-term national targets set out in or deriving from the legislative acts listed in Annex XIII; |
| --- | --- |

(v)

how the environmental and climate architecture of the CAP Strategic Plan is meant to contribute to the achievement of, and be consistent with, the long-term national targets set out in or deriving from the legislative acts listed in Annex XIII;

| (b) | in relation to the specific objective set out in Article 6(1), point (g), an overview of the relevant interventions and specific conditions for young farmers set out in the CAP Strategic Plan such as those specified in Article 26(4), point (a), Articles 30, 73 and 75 and Article 77(6). Member States shall in particular refer to Article 95 when presenting the financial plan in relation to the types of intervention referred to in Articles 30, 73 and 75. The overview shall also explain in general terms the interplay with national instruments with a view of improving the consistency between Union and national actions in this area; |
| --- | --- |

(b)

in relation to the specific objective set out in Article 6(1), point (g), an overview of the relevant interventions and specific conditions for young farmers set out in the CAP Strategic Plan such as those specified in Article 26(4), point (a), Articles 30, 73 and 75 and Article 77(6). Member States shall in particular refer to Article 95 when presenting the financial plan in relation to the types of intervention referred to in Articles 30, 73 and 75. The overview shall also explain in general terms the interplay with national instruments with a view of improving the consistency between Union and national actions in this area;

| (c) | an explanation how the interventions under coupled income support as referred to in Title III, Chapter II, Section 3, Subsection 1, are consistent with Directive 2000/60/EC; |
| --- | --- |

(c)

an explanation how the interventions under coupled income support as referred to in Title III, Chapter II, Section 3, Subsection 1, are consistent with Directive 2000/60/EC;

| (d) | in relation to the specific objective set out in Article 6(1), point (a), an overview of how the aim of fairer distribution and more effective and efficient targeting of income support to be granted to farmers under the CAP Strategic Plan is addressed including, where applicable, information justifying the use of the derogation provided for in Article 29(1), second subparagraph. That overview shall, where relevant, also address the consistency and complementarity of the territorialisation of the basic income support referred to in Article 22(2) with support under other interventions, in particular the payments for natural or other area-specific constraints referred to in Article 71; |
| --- | --- |

(d)

in relation to the specific objective set out in Article 6(1), point (a), an overview of how the aim of fairer distribution and more effective and efficient targeting of income support to be granted to farmers under the CAP Strategic Plan is addressed including, where applicable, information justifying the use of the derogation provided for in Article 29(1), second subparagraph. That overview shall, where relevant, also address the consistency and complementarity of the territorialisation of the basic income support referred to in Article 22(2) with support under other interventions, in particular the payments for natural or other area-specific constraints referred to in Article 71;

| (e) | an overview of the sector-related interventions, including the coupled income support referred to in Title III, Chapter II, Section 3, Subsection 1, and the interventions in certain sectors referred to in Title III, Chapter III, providing a justification for targeting the sectors concerned, the list of interventions per sector, and their complementarity; |
| --- | --- |

(e)

an overview of the sector-related interventions, including the coupled income support referred to in Title III, Chapter II, Section 3, Subsection 1, and the interventions in certain sectors referred to in Title III, Chapter III, providing a justification for targeting the sectors concerned, the list of interventions per sector, and their complementarity;

| (f) | where relevant, an explanation as to which interventions are intended to contribute to ensuring a coherent and integrated approach to risk management; |
| --- | --- |

(f)

where relevant, an explanation as to which interventions are intended to contribute to ensuring a coherent and integrated approach to risk management;

| (g) | where relevant, a description of the interplay between national and regional interventions, including the distribution of financial allocations per intervention and per fund; |
| --- | --- |

(g)

where relevant, a description of the interplay between national and regional interventions, including the distribution of financial allocations per intervention and per fund;

| (h) | an overview of how the CAP Strategic Plan contributes to achieving the specific objective of improving animal welfare and combatting antimicrobial resistance set out in Article 6(1), point (i), including the baseline conditions and the complementarity between conditionality and the different interventions; |
| --- | --- |

(h)

an overview of how the CAP Strategic Plan contributes to achieving the specific objective of improving animal welfare and combatting antimicrobial resistance set out in Article 6(1), point (i), including the baseline conditions and the complementarity between conditionality and the different interventions;

| (i) | an explanation of how the interventions and elements common to several interventions contribute to simplification for final beneficiaries and reducing the administrative burden. |
| --- | --- |

(i)

an explanation of how the interventions and elements common to several interventions contribute to simplification for final beneficiaries and reducing the administrative burden.

3.   Where elements of the CAP Strategic Plan are established at regional level, the intervention strategy shall ensure the coherence and the consistency of those elements with the elements of the CAP Strategic Plan established at national level.

Article 110

Elements common to several interventions

The section on the elements common to several interventions referred to in Article 107(1), point (c), shall include:

| (a) | the definitions and conditions provided by Member States in compliance with Article 4, as well as the minimum requirements for interventions in the form of direct payments pursuant to Article 18; |
| --- | --- |

(a)

the definitions and conditions provided by Member States in compliance with Article 4, as well as the minimum requirements for interventions in the form of direct payments pursuant to Article 18;

| (b) | a description of the use of ‘technical assistance’ referred to in Articles 94 and 125 and a description of the national CAP network referred to in Article 126; |
| --- | --- |

(b)

a description of the use of ‘technical assistance’ referred to in Articles 94 and 125 and a description of the national CAP network referred to in Article 126;

| (c) | in relation to the specific objectives set out in Article 6(1), the definition of rural areas used in the CAP Strategic Plan as determined by Member States; |
| --- | --- |

(c)

in relation to the specific objectives set out in Article 6(1), the definition of rural areas used in the CAP Strategic Plan as determined by Member States;

| (d) | other information on implementation, in particular:






  (i) | a short description of the establishment of the value of payment entitlements and of the functioning of the reserve, where applicable; |
| --- | --- | --- |

(d)

other information on implementation, in particular:

(i)

a short description of the establishment of the value of payment entitlements and of the functioning of the reserve, where applicable;

| (ii) | where relevant, the use of the estimated product of the reduction of direct payments referred to in Article 17; |
| --- | --- |

(ii)

where relevant, the use of the estimated product of the reduction of direct payments referred to in Article 17;

| (iii) | the decision and its justification with regard to the implementation of Article 17(4), Article 29(6), and Article 30(4) of this Regulation and of Article 17(1), second subparagraph, of Regulation (EU) 2021/2116; |
| --- | --- |

(iii)

the decision and its justification with regard to the implementation of Article 17(4), Article 29(6), and Article 30(4) of this Regulation and of Article 17(1), second subparagraph, of Regulation (EU) 2021/2116;

| (iv) | where relevant, the decision and the description of its main elements with regard to the implementation of Article 19; |
| --- | --- |

(iv)

where relevant, the decision and the description of its main elements with regard to the implementation of Article 19;

| (v) | an overview of the coordination, demarcation and complementarities between the EAFRD and other Union funds active in rural areas. |
| --- | --- |

(v)

an overview of the coordination, demarcation and complementarities between the EAFRD and other Union funds active in rural areas.

Article 111

Interventions

The section on each intervention specified in the strategy referred to in Article 107(1), point (d), including the interventions established at regional level, shall include:

| (a) | the type of intervention on which it is based; |
| --- | --- |

(a)

the type of intervention on which it is based;

| (b) | the territorial scope; |
| --- | --- |

(b)

the territorial scope;

| (c) | the specific design or requirements of that intervention that ensure an effective contribution to achieving the specific objective or objectives set out in Article 6(1) and (2); for environmental and climate-related interventions, articulation with the conditionality requirements shall show that the practices are complementary and do not overlap; |
| --- | --- |

(c)

the specific design or requirements of that intervention that ensure an effective contribution to achieving the specific objective or objectives set out in Article 6(1) and (2); for environmental and climate-related interventions, articulation with the conditionality requirements shall show that the practices are complementary and do not overlap;

| (d) | the eligibility conditions; |
| --- | --- |

(d)

the eligibility conditions;

| (e) | the result indicators as laid down in Annex I to which the intervention should contribute directly and significantly; |
| --- | --- |

(e)

the result indicators as laid down in Annex I to which the intervention should contribute directly and significantly;

| (f) | for each intervention which is based on the types of intervention listed in Annex II to this Regulation, how it respects the relevant provisions of Annex 2 to the WTO Agreement on Agriculture as specified in Article 10 of this Regulation and in Annex II to this Regulation, and for each intervention which is not based on the types of intervention listed in Annex II to this Regulation, whether and, if so, how it respects relevant provisions of Article 6.5 of, or Annex 2 to, the WTO Agreement on Agriculture; |
| --- | --- |

(f)

for each intervention which is based on the types of intervention listed in Annex II to this Regulation, how it respects the relevant provisions of Annex 2 to the WTO Agreement on Agriculture as specified in Article 10 of this Regulation and in Annex II to this Regulation, and for each intervention which is not based on the types of intervention listed in Annex II to this Regulation, whether and, if so, how it respects relevant provisions of Article 6.5 of, or Annex 2 to, the WTO Agreement on Agriculture;

| (g) | one output indicator and the annual planned outputs for the intervention referred to in Article 102(5); |
| --- | --- |

(g)

one output indicator and the annual planned outputs for the intervention referred to in Article 102(5);

| (h) | the annual planned uniform or average unit amounts referred to in Article 102(1) and, where relevant, the maximum or minimum planned unit amounts referred to in Article 102(2) and (3); |
| --- | --- |

(h)

the annual planned uniform or average unit amounts referred to in Article 102(1) and, where relevant, the maximum or minimum planned unit amounts referred to in Article 102(2) and (3);

| (i) | an explanation of how the amounts referred to in point (h) of this paragraph were set; |
| --- | --- |

(i)

an explanation of how the amounts referred to in point (h) of this paragraph were set;

| (j) | where applicable:






  (i) | the form and rate of support; |
| --- | --- | --- |

(j)

where applicable:

(i)

the form and rate of support;

| (ii) | the method for calculating the planned unit amounts of support and its certification in accordance with Article 82; |
| --- | --- |

(ii)

the method for calculating the planned unit amounts of support and its certification in accordance with Article 82;

| (k) | the annual financial allocation for the intervention referred to in Article 101(1) or, in the case of sectors referred to in Article 42, points (a), (d), (e) and (f), the annual financial allocation for the relevant sector referred to in Article 101(2), including, where applicable, a breakdown on amounts planned for grants and amounts planned for financial instruments; |
| --- | --- |

(k)

the annual financial allocation for the intervention referred to in Article 101(1) or, in the case of sectors referred to in Article 42, points (a), (d), (e) and (f), the annual financial allocation for the relevant sector referred to in Article 101(2), including, where applicable, a breakdown on amounts planned for grants and amounts planned for financial instruments;

| (l) | an indication as to whether the intervention falls outside the scope of Article 42 TFEU and is subject to State aid assessment. |
| --- | --- |

(l)

an indication as to whether the intervention falls outside the scope of Article 42 TFEU and is subject to State aid assessment.

Point (e) of the first subparagraph shall not apply to interventions under the type of intervention in the apiculture sector referred to in Article 55(1), points (a) and (c) to (g), interventions under the type of intervention in the wine sector referred to in Article 58(1), points (h) to (k), and the information and promotion actions for quality schemes under the type of intervention for cooperation referred to in Article 77.

Article 112

Target and financial plans

1.   The target plan referred to in Article 107(1), point (e), shall consist of a recapitulative table showing the targets and milestones referred to in Article 109(1), point (a).

2.   The financial plan referred to in Article 107(1), point (e), shall comprise an overview table providing for:

| (a) | the Member State’s allocations for the types of intervention in the form of direct payments referred to in Article 87(1), for the types of intervention in the wine sector referred to in Article 88(1), for the types of intervention in the apiculture sector referred to in Article 88(2) and for the types of intervention for rural development referred to in Article 89(3), with a specification of the annual and overall amounts reserved by Member States to comply with the requirements on minimum financial allocations laid down in Articles 92 to 98; |
| --- | --- |

(a)

the Member State’s allocations for the types of intervention in the form of direct payments referred to in Article 87(1), for the types of intervention in the wine sector referred to in Article 88(1), for the types of intervention in the apiculture sector referred to in Article 88(2) and for the types of intervention for rural development referred to in Article 89(3), with a specification of the annual and overall amounts reserved by Member States to comply with the requirements on minimum financial allocations laid down in Articles 92 to 98;

| (b) | the transfers of the amounts referred to in point (a) between types of intervention in the form of direct payments and types of intervention for rural development in accordance with Article 103 and any deductions of the Member State’s allocations for the types of intervention in the form of direct payments to make amounts available for the types of intervention in other sectors referred to in Title III, Chapter III, Section 7, in accordance with Article 88(6); |
| --- | --- |

(b)

the transfers of the amounts referred to in point (a) between types of intervention in the form of direct payments and types of intervention for rural development in accordance with Article 103 and any deductions of the Member State’s allocations for the types of intervention in the form of direct payments to make amounts available for the types of intervention in other sectors referred to in Title III, Chapter III, Section 7, in accordance with Article 88(6);

| (c) | the Member State’s allocations for the types of intervention in the hops sector referred to in Article 88(3) and for the types of intervention in the olive oil and table olives sector referred to in Article 88(4), and if those types of intervention are not implemented, the decision to include the corresponding allocations in the Member State’s allocation for direct payments in accordance with Article 88(5); |
| --- | --- |

(c)

the Member State’s allocations for the types of intervention in the hops sector referred to in Article 88(3) and for the types of intervention in the olive oil and table olives sector referred to in Article 88(4), and if those types of intervention are not implemented, the decision to include the corresponding allocations in the Member State’s allocation for direct payments in accordance with Article 88(5);

| (d) | where relevant, transfer of Member State’s allocations from the EAFRD for support under InvestEU in accordance with Article 81 of this Regulation, under Regulation (EU) 2021/783 or under Regulation (EU) 2021/817 in accordance with Article 99 of this Regulation; |
| --- | --- |

(d)

where relevant, transfer of Member State’s allocations from the EAFRD for support under InvestEU in accordance with Article 81 of this Regulation, under Regulation (EU) 2021/783 or under Regulation (EU) 2021/817 in accordance with Article 99 of this Regulation;

| (e) | where relevant, the amounts planned for the outermost regions. |
| --- | --- |

(e)

where relevant, the amounts planned for the outermost regions.

3.   In addition to paragraph 2, a detailed financial plan shall provide for each financial year, and expressed as Member State’s forecasts of execution of payments, the following tables consistent with Article 111, points (g) and (k):

| (a) | a breakdown of the Member State’s allocations for types of intervention in the form of direct payments after transfers as specified in paragraph 2, points (b) and (c), based on indicative financial allocations per type of intervention and per intervention, specifying for each intervention the planned outputs, the planned average or uniform unit amounts referred to in Article 102(1) and, where relevant, the maximum or minimum planned unit amounts, or both, referred to in Article 102(2). Where applicable, the breakdown shall include the amount of the reserve of payment entitlements.
  The total estimated product of the reduction of payments referred to in Article 17 shall be specified.
  Taking into account the use of the estimated product of the reduction of payments referred to in Article 17 and Article 87(3), those indicative financial allocations, the related planned outputs and the corresponding planned average or uniform unit amounts shall be established before the reduction of payments; |
| --- | --- |

(a)

a breakdown of the Member State’s allocations for types of intervention in the form of direct payments after transfers as specified in paragraph 2, points (b) and (c), based on indicative financial allocations per type of intervention and per intervention, specifying for each intervention the planned outputs, the planned average or uniform unit amounts referred to in Article 102(1) and, where relevant, the maximum or minimum planned unit amounts, or both, referred to in Article 102(2). Where applicable, the breakdown shall include the amount of the reserve of payment entitlements.

The total estimated product of the reduction of payments referred to in Article 17 shall be specified.

Taking into account the use of the estimated product of the reduction of payments referred to in Article 17 and Article 87(3), those indicative financial allocations, the related planned outputs and the corresponding planned average or uniform unit amounts shall be established before the reduction of payments;

| (b) | a breakdown of the allocations for the types of intervention referred to in Title III, Chapter III, per intervention and with an indication of the planned outputs or in the case of sectors referred to in Article 42, points (a), (d), (e) and (f) the indicative financial allocation per sector with an indication of the planned outputs expressed as number of operational programmes per sector; |
| --- | --- |

(b)

a breakdown of the allocations for the types of intervention referred to in Title III, Chapter III, per intervention and with an indication of the planned outputs or in the case of sectors referred to in Article 42, points (a), (d), (e) and (f) the indicative financial allocation per sector with an indication of the planned outputs expressed as number of operational programmes per sector;

| (c) | a breakdown of the Member State’s allocations for rural development after transfers to and from direct payments as specified in point (b), per type of intervention and per intervention, including totals for the CAP Strategic Plan period, indicating also the applicable EAFRD contribution rate, broken down per intervention and per type of region where applicable. In the case of transfer of funds from direct payments, the intervention(s) or part of intervention financed by the transfer shall be specified. That table shall also specify the planned outputs per intervention and the planned average or uniform unit amounts referred to in Article 102(1), as well as, where relevant, the maximum planned average unit amounts referred to in Article 102(3). Where applicable, the table shall also include a breakdown of the grants and amounts planned for financial instruments. The amounts for technical assistance shall also be specified. |
| --- | --- |

(c)

a breakdown of the Member State’s allocations for rural development after transfers to and from direct payments as specified in point (b), per type of intervention and per intervention, including totals for the CAP Strategic Plan period, indicating also the applicable EAFRD contribution rate, broken down per intervention and per type of region where applicable. In the case of transfer of funds from direct payments, the intervention(s) or part of intervention financed by the transfer shall be specified. That table shall also specify the planned outputs per intervention and the planned average or uniform unit amounts referred to in Article 102(1), as well as, where relevant, the maximum planned average unit amounts referred to in Article 102(3). Where applicable, the table shall also include a breakdown of the grants and amounts planned for financial instruments. The amounts for technical assistance shall also be specified.

Article 113

Governance and coordination systems

The section on the governance and coordination systems referred to in Article 107(1), point (f), shall comprise:

| (a) | the identification of all governance bodies referred to in Title II, Chapter II, of Regulation (EU) 2021/2116 as well as of the national managing authority and, where relevant, the regional managing authorities; |
| --- | --- |

(a)

the identification of all governance bodies referred to in Title II, Chapter II, of Regulation (EU) 2021/2116 as well as of the national managing authority and, where relevant, the regional managing authorities;

| (b) | the identification and role of intermediate bodies referred to in Article 123(4) of this Regulation; |
| --- | --- |

(b)

the identification and role of intermediate bodies referred to in Article 123(4) of this Regulation;

| (c) | information on the control systems and penalties referred to in Title IV of Regulation (EU) 2021/2116, including:






  (i) | the integrated administration and control system referred to in Title IV, Chapter II, of Regulation (EU) 2021/2116; |
| --- | --- | --- |

(c)

information on the control systems and penalties referred to in Title IV of Regulation (EU) 2021/2116, including:

(i)

the integrated administration and control system referred to in Title IV, Chapter II, of Regulation (EU) 2021/2116;

| (ii) | the control and penalty system for conditionality referred to in Title IV, Chapters IV and V, of Regulation (EU) 2021/2116; |
| --- | --- |

(ii)

the control and penalty system for conditionality referred to in Title IV, Chapters IV and V, of Regulation (EU) 2021/2116;

| (iii) | the competent control bodies responsible for the checks; |
| --- | --- |

(iii)

the competent control bodies responsible for the checks;

| (d) | an overview of the monitoring and reporting structure. |
| --- | --- |

(d)

an overview of the monitoring and reporting structure.

Article 114

Modernisation

The section on the elements that ensure modernisation of the CAP referred to in Article 107(1), point (g), shall highlight the elements of the CAP Strategic Plan that support the modernisation of the agriculture and rural areas and the CAP, and shall contain in particular:

| (a) | an overview of how the CAP Strategic Plan will contribute to the achievement of the cross-cutting objective set out in Article 6(2), in particular through:






  (i) | a description of the organisational set-up of the AKIS; |
| --- | --- | --- |

(a)

an overview of how the CAP Strategic Plan will contribute to the achievement of the cross-cutting objective set out in Article 6(2), in particular through:

(i)

a description of the organisational set-up of the AKIS;

| (ii) | a description of how advisory services as referred to in Article 15, research and the national CAP network referred to in Article 126 will cooperate to provide advice, knowledge flows and innovation services and how the actions supported under interventions pursuant to Article 78 or other relevant interventions are integrated into the AKIS; |
| --- | --- |

(ii)

a description of how advisory services as referred to in Article 15, research and the national CAP network referred to in Article 126 will cooperate to provide advice, knowledge flows and innovation services and how the actions supported under interventions pursuant to Article 78 or other relevant interventions are integrated into the AKIS;

| (b) | a description of the strategy for the development of digital technologies in agriculture and rural areas and for the use of those technologies to improve the effectiveness and efficiency of the CAP Strategic Plan interventions. |
| --- | --- |

(b)

a description of the strategy for the development of digital technologies in agriculture and rural areas and for the use of those technologies to improve the effectiveness and efficiency of the CAP Strategic Plan interventions.

Article 115

Annexes

1.   Annex I to the CAP Strategic Plan referred to in Article 107(2), point (a), shall include a summary of the main results of the ex-ante evaluation referred to in Article 139 and the SEA referred to in Directive 2001/42/EC and how they have been addressed or a justification of why they have not been taken into account, and a link to the complete ex-ante evaluation report and SEA report.

2.   Annex II to the CAP Strategic Plan referred to in Article 107(2), point (b), shall include a SWOT analysis of the current situation of the area covered by the CAP Strategic Plan.

The SWOT analysis shall be based on the current situation of the area covered by the CAP Strategic Plan and shall comprise, for each specific objective set out in Article 6(1) and (2), an overall description of the current situation of the area covered by the CAP Strategic Plan, based on common context indicators and other quantitative and qualitative up-to-date information such as studies, past evaluation reports, sectoral analyses and lessons learned from previous experiences.

Where relevant, the SWOT analysis shall include an analysis of territorial aspects, including regional specificities, highlighting those territories specifically targeted by interventions, and an analysis of sectoral aspects, in particular for those sectors that are subject to specific interventions or programmes.

In addition, that description shall, in particular, highlight in relation to each general and specific objective set out in Article 5 and Article 6(1) and (2):

| (a) | strengths identified in the CAP Strategic Plan area; |
| --- | --- |

(a)

strengths identified in the CAP Strategic Plan area;

| (b) | weaknesses identified in the CAP Strategic Plan area; |
| --- | --- |

(b)

weaknesses identified in the CAP Strategic Plan area;

| (c) | opportunities identified in the CAP Strategic Plan area; |
| --- | --- |

(c)

opportunities identified in the CAP Strategic Plan area;

| (d) | threats identified in the CAP Strategic Plan area. |
| --- | --- |

(d)

threats identified in the CAP Strategic Plan area.

For the specific objectives set out in Article 6(1), points (d), (e) and (f), the SWOT analysis shall refer to the national plans emanating from the legislative acts listed in Annex XIII.

For the specific objective set out in Article 6(1), point (g), the SWOT analysis shall include a short analysis of access to land, land mobility and land restructuring, access to finance and credits, and access to knowledge and advice.

For the cross-cutting objective set out in Article 6(2), the SWOT analysis shall also provide relevant information about the functioning of the AKIS and related structures.

3.   Annex III to the CAP Strategic Plan referred to in Article 107(2), point (c), shall include the outcomes of the consultation of the partners, and in particular the relevant authorities at regional and local level, and a brief description of how the consultation was carried out.

4.   Annex IV to the CAP Strategic Plan referred to in Article 107(2), point (d), shall provide a brief description of the crop-specific payment for cotton and its complementarity with the other CAP Strategic Plan interventions.

5.   Annex V to the CAP Strategic Plan referred to in Article 107(2), point (e), shall contain the following:

| (a) | a short description of additional national financing for interventions in rural development laid down in Title III, Chapter IV, which is provided within the scope of the CAP Strategic Plan, including the amounts per intervention and indication of compliance with the requirements under this Regulation; |
| --- | --- |

(a)

a short description of additional national financing for interventions in rural development laid down in Title III, Chapter IV, which is provided within the scope of the CAP Strategic Plan, including the amounts per intervention and indication of compliance with the requirements under this Regulation;

| (b) | an explanation of the complementarity with the CAP Strategic Plan interventions; |
| --- | --- |

(b)

an explanation of the complementarity with the CAP Strategic Plan interventions;

| (c) | an indication as to whether the additional national financing falls outside the scope of Article 42 TFEU and is subject to State aid assessment; and |
| --- | --- |

(c)

an indication as to whether the additional national financing falls outside the scope of Article 42 TFEU and is subject to State aid assessment; and

| (d) | the national financial assistance in the fruit and vegetables sector referred to in Article 53. |
| --- | --- |

(d)

the national financial assistance in the fruit and vegetables sector referred to in Article 53.

6.   Annex VI to the CAP Strategic Plan referred to in Article 107(2), point (f), shall contain the following information as regards transitional national aid:

| (a) | the annual sector-specific financial envelope for each sector for which transitional national aid is granted; |
| --- | --- |

(a)

the annual sector-specific financial envelope for each sector for which transitional national aid is granted;

| (b) | where relevant, the maximum unit rate of support for each year of the period; |
| --- | --- |

(b)

where relevant, the maximum unit rate of support for each year of the period;

| (c) | where relevant, information as regards the reference period modified in accordance with Article 147(2), second subparagraph; |
| --- | --- |

(c)

where relevant, information as regards the reference period modified in accordance with Article 147(2), second subparagraph;

| (d) | a brief description of the complementarity of the transitional national aid with CAP Strategic Plan interventions. |
| --- | --- |

(d)

a brief description of the complementarity of the transitional national aid with CAP Strategic Plan interventions.

Article 116

Delegated powers for the content of the CAP Strategic Plan

The Commission is empowered to adopt delegated acts in accordance with Article 152 until 31 December 2023 amending this Chapter as regards the content of the CAP Strategic Plan and its annexes. Those delegated acts shall be strictly limited to addressing problems experienced by Member States.

Article 117

Implementing powers for the content of the CAP Strategic Plan

The Commission may adopt implementing acts laying down rules for the presentation of the elements described in Articles 108 to 115 in CAP Strategic Plans. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 153(2).

CHAPTER III

APPROVAL AND AMENDMENT OF THE CAP STRATEGIC PLAN

Article 118

Approval of the CAP Strategic Plan

1.   Each Member State shall submit to the Commission a proposal for a CAP Strategic Plan, with the content referred to in Article 107, no later than 1 January 2022.

2.   The Commission shall assess the proposed CAP Strategic Plan as regards its completeness, its consistency and coherence with the general principles of Union law, with this Regulation and the delegated and implementing acts adopted pursuant to it and with Regulation (EU) 2021/2116, its effective contribution to the achievement of the specific objectives set out in Article 6(1) and (2) and its impact on the proper functioning of the internal market and distortion of competition and on the level of administrative burden on beneficiaries and administration. The assessment shall address, in particular, the adequacy of the strategy of the CAP Strategic Plan, the corresponding specific objectives, targets, interventions and the allocation of budgetary resources to meet the specific CAP Strategic Plan objectives through the proposed set of interventions on the basis of the SWOT analysis and the ex-ante evaluation.

3.   Depending on the results of the assessment referred to in paragraph 2, the Commission may address observations to the Member States within three months of the date of submission of the CAP Strategic Plan.

The Member State shall provide to the Commission all necessary additional information and, where appropriate, revise the proposed plan.

4.   The Commission shall approve the proposed CAP Strategic Plan provided that the necessary information has been submitted and the Plan is compatible with Article 9 and the other requirements set out in this Regulation and in Regulation (EU) 2021/2116 as well as the delegated and implementing acts adopted pursuant to them. The approval shall exclusively be based on acts which are legally binding on Member States.

5.   The approval of each CAP Strategic Plan shall take place no later than six months following its submission by the Member State concerned.

The approval shall not cover the information referred to in Article 113, point (c), and in Annexes I to IV to the CAP Strategic Plan referred to in Article 107(2), points (a) to (d).

In duly justified cases, a Member State may ask the Commission to approve a CAP Strategic Plan which does not contain all elements. In that case the Member State concerned shall indicate the parts of the CAP Strategic Plan that are missing and provide indicative targets and financial plans as referred to in Article 112 for the whole CAP Strategic Plan in order to show the overall consistency and coherence of the plan. The missing elements of the CAP Strategic Plan shall be submitted to the Commission as an amendment of the plan in accordance with Article 119 within a timeframe not exceeding three months from the date of approval of the CAP Strategic Plan.

6.   Each CAP Strategic Plan shall be approved by the Commission by means of an implementing decision without applying the Committee procedure referred to in Article 153.

7.   The CAP Strategic Plans shall have legal effects only after their approval by the Commission.

Article 119

Amendment of the CAP Strategic Plan

1.   Member States may submit to the Commission requests to amend their CAP Strategic Plans.

2.   Requests for amendment of CAP Strategic Plans shall be duly justified and shall in particular set out the expected impact of the changes to the plan on achieving the specific objectives set out in Article 6(1) and (2). They shall be accompanied by the amended plan including the updated annexes as appropriate.

3.   The Commission shall assess the consistency of the amendment with this Regulation and the delegated and implementing acts adopted pursuant to it as well as with Regulation (EU) 2021/2116 and its effective contribution to achieving the specific objectives.

4.   The Commission shall approve the requested amendment of a CAP Strategic Plan provided that the necessary information has been submitted and the amended plan is compatible with Article 9 and the other requirements set out in this Regulation and in Regulation (EU) 2021/2116, as well as the delegated and implementing acts adopted pursuant to them.

5.   The Commission may make observations within 30 working days from the submission of the request for amendment of the CAP Strategic Plan. The Member State shall provide to the Commission all necessary additional information.

6.   The approval of a request for amendment of a CAP Strategic Plan shall take place no later than three months after its submission by the Member State.

7.   A request for amendment of the CAP Strategic Plan may be submitted once per calendar year, subject to possible exceptions provided for in this Regulation or to be determined by the Commission in accordance with Article 122. In addition, three further requests for amendment of the CAP Strategic Plan may be submitted during the duration of the CAP Strategic Plan period. This paragraph shall not apply to requests for amendments to submit the missing elements in accordance with Article 118(5).

A request for amendment of the CAP Strategic Plan related to Article 17(5), Article 88(7), Article 103(5) or Article 120 shall not count for the limitation laid down in the first subparagraph of this paragraph.

8.   An amendment of the CAP Strategic Plan related to Article 17(5), Article 88(7) or Article 103(1) in relation to the EAGF shall take effect from 1 January of the calendar year following the year of approval of the request for amendment by the Commission and following the corresponding amendment of the allocations in accordance with Article 87(2).

An amendment of the CAP Strategic Plan related to Article 103(1) in relation to the EAFRD shall take effect after the approval of the request for amendment by the Commission and following the corresponding amendment of the allocations in accordance with Article 89(4).

An amendment of the CAP Strategic Plan related to the EAGF, other than amendments referred to in the first subparagraph of this paragraph, shall take effect from a date to be determined by the Member State that is later than the date of approval of the request for that amendment by the Commission. Member States may set different date or dates of effect for different elements of the amendment. When determining this date, Member States shall take into account the time limits for the approval procedure laid down in this Article and the need of farmers and other beneficiaries to have sufficient time to take the amendment into account. The planned date shall be indicated by the Member State with the request to amend the CAP Strategic Plan and shall be subject to the approval by the Commission in accordance with paragraph 10 of this Article.

9.   By way of derogation from paragraphs 2 to 8, 10 and 11 of this Article, Member States may, at any time, make and apply modifications to elements of their CAP Strategic Plans pertaining to interventions under Title III, Chapter IV, including the eligibility conditions of such interventions, that do not lead to changes of the targets referred to in Article 109(1), point (a). They shall notify such modifications to the Commission by the time they start applying them and include them in the next request for amendment of the CAP Strategic Plan in accordance with paragraph 1 of this Article.

10.   Each amendment of the CAP Strategic Plan shall be approved by the Commission by means of an implementing decision without applying the committee procedure referred to in Article 153.

11.   Without prejudice to Article 86, amendments to CAP Strategic Plans shall only have legal effects after their approval by the Commission.

12.   Corrections of clerical or obvious errors or of a purely editorial nature that do not affect the implementation of the policy and the intervention shall not be considered to be a request for amendment under this Article. Member States shall inform the Commission of such corrections.

Article 120

Review of the CAP Strategic Plans

When an amendment is made to any of the legislative acts listed in Annex XIII, each Member State shall assess whether its CAP Strategic Plan should be amended accordingly, in particular the explanation referred to in Article 109(2), point (a)(v), and the further elements of the CAP Strategic Plan referred to in that explanation. Each Member State shall, within six months after the deadline of transposition of the amendment in the case of a Directive listed in Annex XIII or within six months after the date of application of the amendment in the case of a Regulation listed in Annex XIII, notify the Commission of the outcome of its assessment with an accompanying explanation and, if necessary, submit a request to amend its CAP Strategic Plan in accordance with Article 119(2).

Article 121

Calculation of time limits for Commission actions

For the purposes of this Chapter, where a time limit is set for an action by the Commission, that time limit shall start when all information complying with the requirements laid down in this Regulation and the provisions adopted pursuant to it has been submitted.

This time limit shall not include:

| (a) | the period which starts on the date following the date on which the Commission sends its observations or a request for revised documents to the Member State and ends on the date on which the Member State responds to the Commission; |
| --- | --- |

(a)

the period which starts on the date following the date on which the Commission sends its observations or a request for revised documents to the Member State and ends on the date on which the Member State responds to the Commission;

| (b) | for amendments related to Article 17(5), Article 88(7) and Article 103(5), the period for the adoption of the delegated act for the amendment of the allocations in accordance with Article 87(2). |
| --- | --- |

(b)

for amendments related to Article 17(5), Article 88(7) and Article 103(5), the period for the adoption of the delegated act for the amendment of the allocations in accordance with Article 87(2).

Article 122

Delegated powers concerning amendments of CAP Strategic Plans

The Commission is empowered to adopt delegated acts in accordance with Article 152 supplementing this Chapter as regards:

| (a) | procedures and time limits for submission of requests for amendment to CAP Strategic Plans; |
| --- | --- |

(a)

procedures and time limits for submission of requests for amendment to CAP Strategic Plans;

| (b) | the determination of further cases for which the maximum number of amendments referred to in Article 119(7) does not count. |
| --- | --- |

(b)

the determination of further cases for which the maximum number of amendments referred to in Article 119(7) does not count.

TITLE VI

COORDINATION AND GOVERNANCE

Article 123

Managing authority

1.   Each Member State shall designate a national managing authority for its CAP Strategic Plan.

Member States may, taking into account their constitutional and institutional provisions, designate regional managing authorities to be responsible for some or all of the tasks referred to in paragraph 2.

Member States shall ensure that the relevant management and control system has been set up in such a way that it ensures a clear allocation and separation of functions between the national managing authority and, where relevant, regional managing authorities and other bodies. Member States shall be responsible for ensuring that the system functions effectively throughout the CAP Strategic Plan period.

2.   The managing authority shall be responsible for managing and implementing the CAP Strategic Plan in an efficient, effective and correct way. In particular, it shall ensure that:

| (a) | there is an electronic information system as referred to in Article 130; |
| --- | --- |

(a)

there is an electronic information system as referred to in Article 130;

| (b) | farmers, other beneficiaries and other bodies involved in the implementation of interventions:






  (i) | are informed of their obligations resulting from the aid granted, and maintain either a separate accounting system or an adequate accounting code for all transactions relating to an operation, where relevant; |
| --- | --- | --- |

(b)

farmers, other beneficiaries and other bodies involved in the implementation of interventions:

(i)

are informed of their obligations resulting from the aid granted, and maintain either a separate accounting system or an adequate accounting code for all transactions relating to an operation, where relevant;

| (ii) | are aware of the requirements concerning the provision of data to the managing authority and the recording of outputs and results; |
| --- | --- |

(ii)

are aware of the requirements concerning the provision of data to the managing authority and the recording of outputs and results;

| (c) | the farmers and other beneficiaries concerned are provided, where appropriate by the use of electronic means, with clear and precise information on the statutory management requirements and the minimum GAEC standards established pursuant to Title III, Chapter I, Section 2, as well as on the requirements related to social conditionality established pursuant to Title III, Chapter I, Section 3, to be applied at farm level; |
| --- | --- |

(c)

the farmers and other beneficiaries concerned are provided, where appropriate by the use of electronic means, with clear and precise information on the statutory management requirements and the minimum GAEC standards established pursuant to Title III, Chapter I, Section 2, as well as on the requirements related to social conditionality established pursuant to Title III, Chapter I, Section 3, to be applied at farm level;

| (d) | the ex-ante evaluation referred to in Article 139 conforms to the evaluation and monitoring system and is submitted to the Commission; |
| --- | --- |

(d)

the ex-ante evaluation referred to in Article 139 conforms to the evaluation and monitoring system and is submitted to the Commission;

| (e) | the evaluation plan referred to in Article 140(4) is in place and that the ex-post evaluations referred to in that Article are conducted within the time limits laid down in this Regulation, ensuring that such evaluations conform to the monitoring and evaluation system and that they are submitted to the monitoring committee and the Commission; |
| --- | --- |

(e)

the evaluation plan referred to in Article 140(4) is in place and that the ex-post evaluations referred to in that Article are conducted within the time limits laid down in this Regulation, ensuring that such evaluations conform to the monitoring and evaluation system and that they are submitted to the monitoring committee and the Commission;

| (f) | the monitoring committee is provided with the information and documents needed to monitor the implementation of the CAP Strategic Plan in the light of its specific objectives and priorities; |
| --- | --- |

(f)

the monitoring committee is provided with the information and documents needed to monitor the implementation of the CAP Strategic Plan in the light of its specific objectives and priorities;

| (g) | the annual performance report is drawn up, including aggregate monitoring tables, and, after the report has been submitted to the monitoring committee for opinion, is submitted to the Commission in accordance with Article 9(3), first subparagraph, point (b), of Regulation (EU) 2021/2116. |
| --- | --- |

(g)

the annual performance report is drawn up, including aggregate monitoring tables, and, after the report has been submitted to the monitoring committee for opinion, is submitted to the Commission in accordance with Article 9(3), first subparagraph, point (b), of Regulation (EU) 2021/2116.

| (h) | relevant follow-up actions on Commission’s observations on the annual performance reports are taken; |
| --- | --- |

(h)

relevant follow-up actions on Commission’s observations on the annual performance reports are taken;

| (i) | the paying agency receives all necessary information, in particular on the procedures operated and any controls carried out in relation to interventions selected for funding, before payments are authorised; |
| --- | --- |

(i)

the paying agency receives all necessary information, in particular on the procedures operated and any controls carried out in relation to interventions selected for funding, before payments are authorised;

| (j) | beneficiaries under interventions financed by the EAFRD, other than area- and animal-related interventions, acknowledge the financial support received, including the appropriate use of the Union emblem in accordance with the rules laid down by the Commission in accordance with paragraph 5; |
| --- | --- |

(j)

beneficiaries under interventions financed by the EAFRD, other than area- and animal-related interventions, acknowledge the financial support received, including the appropriate use of the Union emblem in accordance with the rules laid down by the Commission in accordance with paragraph 5;

| (k) | publicity is made for the CAP Strategic Plan, including through the national CAP network, by informing:






  (i) | potential beneficiaries, professional organisations, the economic and social partners, bodies involved in promoting equality between men and women, and the non-governmental organisations concerned, including environmental organisations, of the possibilities offered by the CAP Strategic Plan and the rules for gaining access to the CAP Strategic Plan funding; and |
| --- | --- | --- |

(k)

publicity is made for the CAP Strategic Plan, including through the national CAP network, by informing:

(i)

potential beneficiaries, professional organisations, the economic and social partners, bodies involved in promoting equality between men and women, and the non-governmental organisations concerned, including environmental organisations, of the possibilities offered by the CAP Strategic Plan and the rules for gaining access to the CAP Strategic Plan funding; and

| (ii) | farmers, other beneficiaries and the general public of the Union support for agriculture and rural development through the CAP Strategic Plan. |
| --- | --- |

(ii)

farmers, other beneficiaries and the general public of the Union support for agriculture and rural development through the CAP Strategic Plan.

For support financed by the EAGF, as appropriate, Member States shall provide for the managing authority to use the visibility and communication tools and structures used by the EAFRD.

3.   Where regional managing authorities referred to in paragraph 1, second subparagraph, are responsible for the tasks referred to in paragraph 2, the national managing authority shall ensure appropriate coordination between those authorities with a view to guaranteeing the coherence and consistency of the CAP Strategic Plan design and implementation.

4.   The national managing authority or, where relevant, the regional managing authorities may delegate tasks to intermediate bodies. In that case, the delegating managing authority shall retain full responsibility for the efficiency and correctness of the management and implementation of those tasks and ensure that appropriate provisions are in place to allow the intermediate body to obtain all necessary data and information for the execution of those tasks.

5.   The Commission may adopt implementing acts laying down uniform conditions for the application of the information, publicity and visibility requirements referred to in paragraph 2, points (j) and (k). Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 153(2).

Article 124

Monitoring committee

1.   Each Member State shall set up a national committee to monitor the implementation of the CAP Strategic Plan within three months of the date of notification to the Member State of the Commission implementing decision approving a CAP Strategic Plan.

Each monitoring committee shall adopt its rules of procedure, which shall include provisions on the coordination with regional monitoring committees when set up in accordance with paragraph 5, on the prevention of conflicts of interest and on the application of the principle of transparency.

The monitoring committee shall meet at least once a year and shall review all issues that affect the CAP Strategic Plan progress towards achieving its targets.

Each Member State shall publish the rules of procedure and the opinions of the monitoring committee.

2.   Each Member State shall decide the composition of the monitoring committee and shall ensure a balanced representation of the relevant public authorities and intermediate bodies and of representatives of the partners referred to in Article 106(3).

Each member of the monitoring committee shall have a vote.

The Member State shall publish the list of the members of the monitoring committee online.

Representatives of the Commission shall participate in the work of the monitoring committee in an advisory capacity.

3.   The monitoring committee shall examine in particular:

| (a) | progress in CAP Strategic Plan implementation and in achieving the milestones and targets; |
| --- | --- |

(a)

progress in CAP Strategic Plan implementation and in achieving the milestones and targets;

| (b) | any issues that affect the performance of the CAP Strategic Plan and the actions taken to address those issues, including progress towards simplification and reduction of administrative burden for final beneficiaries; |
| --- | --- |

(b)

any issues that affect the performance of the CAP Strategic Plan and the actions taken to address those issues, including progress towards simplification and reduction of administrative burden for final beneficiaries;

| (c) | the elements of the ex-ante assessment listed in Article 58(3) of Regulation (EU) 2021/1060 and the strategy document referred to in Article 59(1) of that Regulation; |
| --- | --- |

(c)

the elements of the ex-ante assessment listed in Article 58(3) of Regulation (EU) 2021/1060 and the strategy document referred to in Article 59(1) of that Regulation;

| (d) | progress made in carrying out evaluations, syntheses of evaluations and any follow-up given to findings; |
| --- | --- |

(d)

progress made in carrying out evaluations, syntheses of evaluations and any follow-up given to findings;

| (e) | relevant information related to the performance of the CAP Strategic Plan supplied by the national CAP network; |
| --- | --- |

(e)

relevant information related to the performance of the CAP Strategic Plan supplied by the national CAP network;

| (f) | the implementation of communication and visibility actions; |
| --- | --- |

(f)

the implementation of communication and visibility actions;

| (g) | administrative capacity building for public authorities and farmers and other beneficiaries, where relevant. |
| --- | --- |

(g)

administrative capacity building for public authorities and farmers and other beneficiaries, where relevant.

4.   The monitoring committee shall give its opinion on:

| (a) | the methodology and criteria used for the selection of operations; |
| --- | --- |

(a)

the methodology and criteria used for the selection of operations;

| (b) | the annual performance reports; |
| --- | --- |

(b)

the annual performance reports;

| (c) | the evaluation plan and amendments thereof; |
| --- | --- |

(c)

the evaluation plan and amendments thereof;

| (d) | any proposal by the managing authority for an amendment of the CAP Strategic Plan. |
| --- | --- |

(d)

any proposal by the managing authority for an amendment of the CAP Strategic Plan.

5.   Where elements are established at regional level, the Member State concerned may set up regional monitoring committees to monitor the implementation of the regional elements and provide the national monitoring committee with information in this respect. This Article shall apply to those regional monitoring committees mutatis mutandis as regards the elements established at regional level.

Article 125

Technical assistance at the initiative of Member States

1.   At the initiative of a Member State, the EAFRD may support actions which are necessary for the effective administration and implementation of support in relation to the CAP Strategic Plan, including establishing and operating the national CAP networks referred to in Article 126(1). The actions referred to in this paragraph may concern previous programming periods and subsequent CAP Strategic Plan periods.

2.   Actions of the authority of the Lead Fund in accordance with Article 31(4), (5) and (6) of Regulation (EU) 2021/1060 may also be supported provided that LEADER involves support from the EAFRD.

3.   Technical assistance at the initiative of Member States shall not finance certification bodies referred to in Article 12 of Regulation (EU) 2021/2116.

Article 126

National and European CAP networks

1.   Each Member State shall establish a national network for the common agricultural policy (‘national CAP network’) for the networking of organisations and administrations, advisors, researchers and other innovation actors, and other actors in the field of agriculture and rural development at national level at the latest 12 months after the approval by the Commission of the CAP Strategic Plan. The national CAP networks shall build on the existing networking experience and practices in the Member States.

2.   The Commission shall establish a European network for the common agricultural policy (‘European CAP network’) for the networking of national networks, organisations, and administrations in the field of agriculture and rural development at Union level.

3.   Networking through the national and European CAP networks shall have the following objectives:

| (a) | increase the involvement of all relevant stakeholders in the implementation of CAP Strategic Plans and, where relevant, in their design; |
| --- | --- |

(a)

increase the involvement of all relevant stakeholders in the implementation of CAP Strategic Plans and, where relevant, in their design;

| (b) | accompany the Member States’ administrations in the implementation of CAP Strategic Plans and the transition to a performance-based delivery model; |
| --- | --- |

(b)

accompany the Member States’ administrations in the implementation of CAP Strategic Plans and the transition to a performance-based delivery model;

| (c) | contribute to improving the quality of implementation of CAP Strategic Plans; |
| --- | --- |

(c)

contribute to improving the quality of implementation of CAP Strategic Plans;

| (d) | contribute to the information of the public and potential beneficiaries on the CAP and funding opportunities; |
| --- | --- |

(d)

contribute to the information of the public and potential beneficiaries on the CAP and funding opportunities;

| (e) | foster innovation in agriculture and rural development and support peer-to-peer learning and the inclusion of, and the interaction between, all stakeholders in the knowledge-exchange and knowledge-building process; |
| --- | --- |

(e)

foster innovation in agriculture and rural development and support peer-to-peer learning and the inclusion of, and the interaction between, all stakeholders in the knowledge-exchange and knowledge-building process;

| (f) | contribute to monitoring and evaluation capacity and activities; |
| --- | --- |

(f)

contribute to monitoring and evaluation capacity and activities;

| (g) | contribute to the dissemination of CAP Strategic Plans results. |
| --- | --- |

(g)

contribute to the dissemination of CAP Strategic Plans results.

The objective set out in the first subparagraph, point (d), shall be addressed in particular through the national CAP networks.

4.   The tasks of the national and European CAP networks for the achievement of the objectives set out in paragraph 3 shall be the following:

| (a) | collection, analysis and dissemination of information on actions and good practices implemented or supported under CAP Strategic Plans as well as analysis on developments in agriculture and rural areas relevant to the specific objectives set out in Article 6(1) and (2); |
| --- | --- |

(a)

collection, analysis and dissemination of information on actions and good practices implemented or supported under CAP Strategic Plans as well as analysis on developments in agriculture and rural areas relevant to the specific objectives set out in Article 6(1) and (2);

| (b) | contribution to capacity building for Member States administrations and of other actors involved in the implementation of CAP Strategic Plans, including as regards monitoring and evaluation processes; |
| --- | --- |

(b)

contribution to capacity building for Member States administrations and of other actors involved in the implementation of CAP Strategic Plans, including as regards monitoring and evaluation processes;

| (c) | creation of platforms, fora and events to facilitate exchanges of experience between stakeholders and peer-to-peer learning, including where relevant exchanges with networks in third countries; |
| --- | --- |

(c)

creation of platforms, fora and events to facilitate exchanges of experience between stakeholders and peer-to-peer learning, including where relevant exchanges with networks in third countries;

| (d) | collection of information and facilitation of its dissemination as well as networking of funded structures and projects, such as local action groups referred to in Article 33 of Regulation (EU) 2021/1060, EIP operational groups referred to in Article 127(3) of this Regulation and equivalent structures and projects; |
| --- | --- |

(d)

collection of information and facilitation of its dissemination as well as networking of funded structures and projects, such as local action groups referred to in Article 33 of Regulation (EU) 2021/1060, EIP operational groups referred to in Article 127(3) of this Regulation and equivalent structures and projects;

| (e) | support for cooperation projects between EIP operational groups referred to in Article 127(3) of this Regulation, local action groups referred to in Article 33 of Regulation (EU) 2021/1060 or similar local development structures, including transnational cooperation; |
| --- | --- |

(e)

support for cooperation projects between EIP operational groups referred to in Article 127(3) of this Regulation, local action groups referred to in Article 33 of Regulation (EU) 2021/1060 or similar local development structures, including transnational cooperation;

| (f) | creation of links to other Union-funded strategies or networks; |
| --- | --- |

(f)

creation of links to other Union-funded strategies or networks;

| (g) | contribution to the further development of the CAP and preparation of any subsequent CAP Strategic Plan period; |
| --- | --- |

(g)

contribution to the further development of the CAP and preparation of any subsequent CAP Strategic Plan period;

| (h) | in the case of national CAP networks, participating in, and contributing to, the activities of the European CAP network; |
| --- | --- |

(h)

in the case of national CAP networks, participating in, and contributing to, the activities of the European CAP network;

| (i) | in the case of the European CAP network, cooperating with, and contributing to, the activities of the national CAP networks. |
| --- | --- |

(i)

in the case of the European CAP network, cooperating with, and contributing to, the activities of the national CAP networks.

5.   The Commission shall adopt implementing acts setting out the organisational structure and operation of the European CAP network. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 153(2).

Article 127

European Innovation Partnership for agricultural productivity and sustainability

1.   The aim of the European Innovation Partnership for agricultural productivity and sustainability (EIP) shall be to stimulate innovation and improve the exchange of knowledge.

The EIP shall support the AKIS, by connecting policies and instruments to speed up innovation.

2.   The EIP shall contribute to achieving the specific objectives set out in Article 6(1) and (2).

It shall in particular:

| (a) | create added value by better linking research and farming practice and encouraging the wider use of available innovation measures; |
| --- | --- |

(a)

create added value by better linking research and farming practice and encouraging the wider use of available innovation measures;

| (b) | connect innovation actors and projects; |
| --- | --- |

(b)

connect innovation actors and projects;

| (c) | promote the faster and wider transposition of innovative solutions into practice, including farmer-to-farmer exchange; and |
| --- | --- |

(c)

promote the faster and wider transposition of innovative solutions into practice, including farmer-to-farmer exchange; and

| (d) | inform the scientific community about the research needs of farming practice. |
| --- | --- |

(d)

inform the scientific community about the research needs of farming practice.

3.   EIP operational groups supported under the cooperation type of intervention referred to in Article 77 shall form part of the EIP. Each EIP operational group shall draw up a plan for an innovative project to be developed or implemented. The innovative project shall be based on the interactive innovation model which has as key principles:

| (a) | developing innovative solutions focusing on farmers’ or foresters’ needs while also tackling the interactions across the whole supply chain where useful; |
| --- | --- |

(a)

developing innovative solutions focusing on farmers’ or foresters’ needs while also tackling the interactions across the whole supply chain where useful;

| (b) | bringing together partners with complementary knowledge such as farmers, advisors, researchers, enterprises or non-governmental organisations in a targeted combination as best suited to achieve the project objectives; and |
| --- | --- |

(b)

bringing together partners with complementary knowledge such as farmers, advisors, researchers, enterprises or non-governmental organisations in a targeted combination as best suited to achieve the project objectives; and

| (c) | co-deciding and co-creating all along the project. |
| --- | --- |

(c)

co-deciding and co-creating all along the project.

EIP operational groups may act at transnational, including cross-border, level. The envisaged innovation may be based on new practices, but also on traditional practices in a new geographical or environmental context.

EIP operational groups shall disseminate a summary of their plans and of the results of their projects, in particular through the national and European CAP networks.

TITLE VII

MONITORING, REPORTING AND EVALUATION

CHAPTER I

PERFORMANCE FRAMEWORK

Article 128

Establishment of the performance framework

1.   A performance framework shall be established under the shared responsibility of Member States and the Commission. The performance framework shall allow reporting, monitoring and evaluation of the performance of the CAP Strategic Plan during its implementation.

2.   The performance framework shall include the following elements:

| (a) | a set of common output, result, impact and context indicators referred to in Article 7 which will be used as the basis for monitoring, evaluation and the annual performance reporting; |
| --- | --- |

(a)

a set of common output, result, impact and context indicators referred to in Article 7 which will be used as the basis for monitoring, evaluation and the annual performance reporting;

| (b) | targets and annual milestones established in relation to the relevant specific objective using the relevant result indicators; |
| --- | --- |

(b)

targets and annual milestones established in relation to the relevant specific objective using the relevant result indicators;

| (c) | data collection, storage and transmission; |
| --- | --- |

(c)

data collection, storage and transmission;

| (d) | regular reporting on performance, monitoring and evaluation activities; |
| --- | --- |

(d)

regular reporting on performance, monitoring and evaluation activities;

| (e) | the ex-ante, interim, and ex-post evaluations and all other evaluation activities linked to the CAP Strategic Plan. |
| --- | --- |

(e)

the ex-ante, interim, and ex-post evaluations and all other evaluation activities linked to the CAP Strategic Plan.

Article 129

Objectives of the performance framework

The performance framework’s objectives shall be to:

| (a) | assess the impact, effectiveness, efficiency, relevance, coherence and Union added value of the CAP; |
| --- | --- |

(a)

assess the impact, effectiveness, efficiency, relevance, coherence and Union added value of the CAP;

| (b) | monitor progress made towards achieving the targets of the CAP Strategic Plans; |
| --- | --- |

(b)

monitor progress made towards achieving the targets of the CAP Strategic Plans;

| (c) | assess the impact, effectiveness, efficiency, relevance and coherence of the interventions of the CAP Strategic Plans; |
| --- | --- |

(c)

assess the impact, effectiveness, efficiency, relevance and coherence of the interventions of the CAP Strategic Plans;

| (d) | support a common learning process related to monitoring and evaluation. |
| --- | --- |

(d)

support a common learning process related to monitoring and evaluation.

Article 130

Electronic information system

Member States shall establish a secure electronic information system, or use an existing one, in which they shall record and keep key information on the implementation of the CAP Strategic Plan that is needed for monitoring and evaluation, in particular for monitoring progress towards the objectives and targets set, including information on each beneficiary and operation.

Article 131

Provision of information

Member States shall ensure that beneficiaries of support under the CAP Strategic Plan interventions and local action groups referred to in Article 33 of Regulation (EU) 2021/1060 provide to the managing authority, or other bodies delegated to perform functions on its behalf, all the information necessary for the purpose of monitoring and evaluation of the CAP Strategic Plan.

Member States shall ensure that comprehensive, timely and reliable data sources are established to enable effective follow-up of policy progress towards objectives using output, result and impact indicators.

Article 132

Monitoring procedures

The managing authority and the monitoring committee shall monitor the implementation of the CAP Strategic Plan and progress made towards achieving the targets of the CAP Strategic Plan on the basis of the output and result indicators.

Article 133

Implementing powers for the performance framework

The Commission shall adopt implementing acts on the content of the performance framework. Such acts shall include indicators other than those of Annex I which are needed for the appropriate monitoring and evaluation of the policy, the methods for the calculation of indicators set out in and outside of Annex I, and the necessary provisions to guarantee accuracy and reliability of the data collected by Member States. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 153(2).

CHAPTER II

ANNUAL PERFORMANCE REPORTS

Article 134

Annual performance reports

1.   Member States shall, in accordance with Article 9(3) and Article 10 of Regulation (EU) 2021/2116 provide an annual performance report on the implementation of the CAP Strategic Plan in the previous financial year.

2.   The last annual performance report, to be provided in accordance with Article 9(3) and Article 10 of Regulation (EU) 2021/2116, shall comprise a summary of the evaluations carried out during the implementation period.

3.   In order to be admissible, the annual performance report shall contain all the information required in paragraphs 4, 5, 7, 8, 9 and 10, and, where relevant, paragraph 6. Without prejudice to the annual clearance procedures provided for in Regulation (EU) 2021/2116, the Commission shall inform the Member State concerned within 15 working days from the submission of the annual performance report if it is not admissible, failing which it shall be deemed admissible.

4.   Annual performance reports shall set out key qualitative and quantitative information on the implementation of the CAP Strategic Plan by reference to financial data and to output and result indicators, including at regional level where relevant.

5.   The quantitative information referred to in paragraph 4 shall include:

| (a) | the realised outputs; |
| --- | --- |

(a)

the realised outputs;

| (b) | the expenditure declared in the annual accounts and relevant to the outputs referred to in point (a), before application of any penalties or other reductions, and for the EAFRD, taking into account reallocation of cancelled or recovered funds pursuant to Article 57 of Regulation (EU) 2021/2116; |
| --- | --- |

(b)

the expenditure declared in the annual accounts and relevant to the outputs referred to in point (a), before application of any penalties or other reductions, and for the EAFRD, taking into account reallocation of cancelled or recovered funds pursuant to Article 57 of Regulation (EU) 2021/2116;

| (c) | the ratio between expenditure referred in point (b) and relevant outputs referred to in point (a) (‘realised unit amount’); |
| --- | --- |

(c)

the ratio between expenditure referred in point (b) and relevant outputs referred to in point (a) (‘realised unit amount’);

| (d) | results and distance to corresponding milestones set in accordance with Article 109(1), point (a). |
| --- | --- |

(d)

results and distance to corresponding milestones set in accordance with Article 109(1), point (a).

The information referred to in the first subparagraph, points (a), (b) and (c), shall be broken down per unit amount as set out in the CAP Strategic Plan in accordance with Article 111, point (h), for the purpose of performance clearance. For output indicators which are marked in Annex I as used only for monitoring, only the information referred to in the first subparagraph, point (a), of this paragraph shall be included.

6.   For an intervention not covered by the integrated system referred to in Article 65(2) of Regulation (EU) 2021/2116, Member States may, in addition to the information provided under paragraph 5 of this Article, decide to provide in each annual performance report:

| (a) | either the average unit amounts for the operations selected in the previous financial year and the related number of outputs and expenditure; or |
| --- | --- |

(a)

either the average unit amounts for the operations selected in the previous financial year and the related number of outputs and expenditure; or

| (b) | the ratio between the total public expenditure excluding additional national financing referred to in Article 115(5), committed for operations for which payments have been made in the previous financial year and the realised outputs as well as the related number of outputs and expenditure. |
| --- | --- |

(b)

the ratio between the total public expenditure excluding additional national financing referred to in Article 115(5), committed for operations for which payments have been made in the previous financial year and the realised outputs as well as the related number of outputs and expenditure.

That information shall be used by the Commission for the purposes of Articles 40 and 54 of Regulation (EU) 2021/2116 for each of the years when payments are made for the related operations.

7.   The qualitative information referred to in paragraph 4 shall include:

| (a) | a synthesis of the state of implementation of the CAP Strategic Plan in respect of the previous financial year; |
| --- | --- |

(a)

a synthesis of the state of implementation of the CAP Strategic Plan in respect of the previous financial year;

| (b) | any issues which affect the performance of the CAP Strategic Plan, in particular as regards deviations from milestones, where appropriate, giving reasons and, where relevant, describing the measures taken. |
| --- | --- |

(b)

any issues which affect the performance of the CAP Strategic Plan, in particular as regards deviations from milestones, where appropriate, giving reasons and, where relevant, describing the measures taken.

8.   For the purposes of Article 54(2) of Regulation (EU) 2021/2116, Member States may decide to also include under the qualitative information referred to in paragraph 4 of this Article:

| (a) | justification of any excess of the realised unit amount compared to the corresponding planned unit amount or, where applicable, the maximum planned unit amount referred to in Article 102 of this Regulation; or |
| --- | --- |

(a)

justification of any excess of the realised unit amount compared to the corresponding planned unit amount or, where applicable, the maximum planned unit amount referred to in Article 102 of this Regulation; or

| (b) | where a Member State decides to make use of one of the possibilities provided in paragraph 6 of this Article, justification of any excess of the realised unit amount compared to either the corresponding average unit amount for operations selected or the ratio between the total public expenditure, excluding additional national financing referred to in Article 115(5), committed for operations for which payments have been made in the previous financial year and the related realised outputs, depending on the Member State’s choice. |
| --- | --- |

(b)

where a Member State decides to make use of one of the possibilities provided in paragraph 6 of this Article, justification of any excess of the realised unit amount compared to either the corresponding average unit amount for operations selected or the ratio between the total public expenditure, excluding additional national financing referred to in Article 115(5), committed for operations for which payments have been made in the previous financial year and the related realised outputs, depending on the Member State’s choice.

9.   Justification shall be included for the purpose of Article 40(2) of Regulation (EU) 2021/2116 where the excess referred to in paragraph 8, point (a), of this Article is higher than 50 %.

Alternatively, where a Member State decides to make use of the possibility provided for in paragraph 6, justification shall be required only where the excess referred to in paragraph 8, point (b), is higher than 50 %.

10.   For financial instruments, in addition to the data to be provided under paragraph 4, information shall be provided on:

| (a) | the eligible expenditure by type of financial product; |
| --- | --- |

(a)

the eligible expenditure by type of financial product;

| (b) | the amount of management costs and fees declared as eligible expenditure; |
| --- | --- |

(b)

the amount of management costs and fees declared as eligible expenditure;

| (c) | the amount, by type of financial product, of private and public resources mobilised in addition to the EAFRD; |
| --- | --- |

(c)

the amount, by type of financial product, of private and public resources mobilised in addition to the EAFRD;

| (d) | interest and other gains generated by support from the EAFRD contribution to financial instruments in accordance with Article 60 of Regulation (EU) 2021/1060 and resources returned attributable to support from the EAFRD in accordance with Article 62 of that Regulation; |
| --- | --- |

(d)

interest and other gains generated by support from the EAFRD contribution to financial instruments in accordance with Article 60 of Regulation (EU) 2021/1060 and resources returned attributable to support from the EAFRD in accordance with Article 62 of that Regulation;

| (e) | total value of loans, equity or quasi-equity investments in final recipients which were guaranteed with eligible public expenditure excluding additional national financing referred to in Article 115(5) of this Regulation and which were actually disbursed to final recipients. |
| --- | --- |

(e)

total value of loans, equity or quasi-equity investments in final recipients which were guaranteed with eligible public expenditure excluding additional national financing referred to in Article 115(5) of this Regulation and which were actually disbursed to final recipients.

Where Member States decide to apply paragraph 6 of this Article to financial instruments, the information referred to in that paragraph shall be provided at the level of final recipients.

11.   For the purpose of the biennial performance review referred to in Article 135, the annual performance report shall contain information on the additional national financing referred to in Article 115(5), points (a) and (d). That financing shall be taken into account for the biennial performance review.

12.   The annual performance reports, as well as a summary for citizens of their content, shall be made available to the public.

13.   Without prejudice to the annual clearance procedures provided for in Regulation (EU) 2021/2116, the Commission may make observations on the admissible annual performance reports within one month from their submission. Where the Commission does not provide observations within that deadline, the reports shall be deemed to be accepted. Article 121 of this Regulation on calculation of time limits for Commission actions shall apply mutatis mutandis.

14.   The Commission shall adopt implementing acts laying down rules for the presentation of the content of the annual performance report. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 153(2).

Article 135

Biennial performance review

1.   The Commission shall carry out a biennial performance review based on the information provided in the annual performance reports.

2.   Where the value of one or more result indicators reported in accordance with Article 134 that have been used by the Member State concerned for performance review in the CAP Strategic Plan in accordance with Annex I reveals a shortfall of more than 35 % from the respective milestone for financial year 2024 and 25 % for financial year 2026, the Member State concerned shall submit a justification for this deviation. Following the assessment of that justification, the Commission may where necessary ask the Member State concerned to submit an action plan in accordance with Article 41(1) of Regulation (EU) 2021/2116 describing the intended remedial actions and the expected timeframe.

3.   In 2026, the Commission shall review the information provided in the performance reports for financial year 2025. Where the value of one or more result indicators reported in accordance with Article 134 that have been used by the Member State concerned for performance review in the CAP Strategic Plan in accordance with Annex I reveals a shortfall of more than 35 % from the milestone concerned for financial year 2025, the Commission may ask the Member State concerned for remedial actions.

Article 136

Annual review meetings

1.   Member States shall organise each year a review meeting with the Commission. The review meeting shall be chaired jointly or by the Commission and shall take place not earlier than two months after the submission of the annual performance report.

2.   The review meeting shall aim to examine the performance of each plan, including progress made towards achieving established targets and available information on relevant impacts, as well as any issues affecting performance and past or future actions to be taken to address them.

CHAPTER III

REPORTING FOR THE CROP-SPECIFIC PAYMENT FOR COTTON AND THE TRANSITIONAL NATIONAL AID

Article 137

Annual reporting

By 15 February 2025 and 15 February of each subsequent year until 2030, the Member States that grant the crop-specific payment for cotton laid down in Title III, Chapter II, Section 3, Subsection 2, shall provide the Commission with the following information on the implementation of that payment in the previous financial year:

| (a) | the number of beneficiaries; |
| --- | --- |

(a)

the number of beneficiaries;

| (b) | the amount of payment per hectare; and |
| --- | --- |

(b)

the amount of payment per hectare; and

| (c) | the number of hectares for which the payment was granted. |
| --- | --- |

(c)

the number of hectares for which the payment was granted.

Article 138

Annual reporting on transitional national aid

By 15 February 2025 and 15 February of each subsequent year until 2030, the Member States that grant the transitional national aid laid down in Article 147 shall provide the Commission with the following information on the implementation of that aid in the previous financial year for each relevant sector:

| (a) | the number of beneficiaries; |
| --- | --- |

(a)

the number of beneficiaries;

| (b) | the total amount of transitional national aid granted; and |
| --- | --- |

(b)

the total amount of transitional national aid granted; and

| (c) | the number of hectares, animals or other units for which that aid has been granted. |
| --- | --- |

(c)

the number of hectares, animals or other units for which that aid has been granted.

CHAPTER IV

CAP STRATEGIC PLAN EVALUATION

Article 139

Ex-ante evaluations

1.   Member States shall carry out ex-ante evaluations to improve the quality of the design of their CAP Strategic Plans.

2.   The ex-ante evaluation shall be carried out under the responsibility of the authority responsible for the preparation of the CAP Strategic Plan.

3.   The ex-ante evaluation shall assess:

| (a) | the contribution of the CAP Strategic Plan to achieving the specific objectives set out in Article 6(1) and (2), taking into account national and regional needs and potential for development as well as lessons drawn from implementation of the CAP in previous programming periods; |
| --- | --- |

(a)

the contribution of the CAP Strategic Plan to achieving the specific objectives set out in Article 6(1) and (2), taking into account national and regional needs and potential for development as well as lessons drawn from implementation of the CAP in previous programming periods;

| (b) | the internal coherence of the proposed CAP Strategic Plan and its relationship with other relevant instruments; |
| --- | --- |

(b)

the internal coherence of the proposed CAP Strategic Plan and its relationship with other relevant instruments;

| (c) | the consistency of the allocation of budgetary resources with those specific objectives set out in Article 6(1) and (2) that are addressed by the CAP Strategic Plan; |
| --- | --- |

(c)

the consistency of the allocation of budgetary resources with those specific objectives set out in Article 6(1) and (2) that are addressed by the CAP Strategic Plan;

| (d) | how the expected outputs will contribute to results; |
| --- | --- |

(d)

how the expected outputs will contribute to results;

| (e) | whether the quantified target values for results and milestones are appropriate and realistic, having regard to the support envisaged from the EAGF and EAFRD; |
| --- | --- |

(e)

whether the quantified target values for results and milestones are appropriate and realistic, having regard to the support envisaged from the EAGF and EAFRD;

| (f) | measures planned to reduce the administrative burden on farmers and other beneficiaries; |
| --- | --- |

(f)

measures planned to reduce the administrative burden on farmers and other beneficiaries;

| (g) | where relevant, the rationale for the use of financial instruments financed by the EAFRD. |
| --- | --- |

(g)

where relevant, the rationale for the use of financial instruments financed by the EAFRD.

4.   The ex-ante evaluation may incorporate the requirements for the SEA set out in Directive 2001/42/EC taking into account climate change mitigation needs.

Article 140

Evaluation of CAP Strategic Plans during the implementation period and ex post

1.   Member States shall carry out evaluations of their CAP Strategic Plans during implementation and ex post to improve the quality of the design and implementation of the plans. Member States shall assess their CAP Strategic Plans’ effectiveness, efficiency, relevance, coherence, Union added value and impact in relation to their contribution to achiving the CAP general objectives set out in Article 5 and those specific objectives set out in Article 6(1) and (2) which are addressed by the CAP Strategic Plan concerned. The CAP Strategic Plan’s overall impact shall be assessed by the ex-post evaluation only.

2.   Member States shall entrust evaluations to functionally independent experts.

3.   Member States shall ensure that procedures are in place to produce and collect the data necessary for evaluations.

4.   Member States shall draw up an evaluation plan providing indications on intended evaluation activities during the implementation period.

5.   Member States shall submit the evaluation plan to the monitoring committee no later than one year after the adoption of the CAP Strategic Plan.

6.   The managing authority shall be responsible for completing a comprehensive ex-post evaluation of the CAP Strategic Plan by 31 December 2031.

7.   Member States shall make all evaluations available to the public.

CHAPTER V

PERFORMANCE ASSESSMENT BY THE COMMISSION

Article 141

Performance assessment and evaluation

1.   The Commission shall establish a multiannual evaluation plan of the CAP to be carried out under its responsibility. That evaluation plan shall also cover the measures under Regulation (EU) No 1308/2013.

2.   The Commission shall submit to the European Parliament and to the Council a summary report of Member States’ CAP Strategic Plans by 31 December 2023. The report shall include an analysis of the joint effort and collective ambition of Member States to address the specific objectives set out in Article 6(1) and (2), in particular those mentioned in Article 6(1), points (d), (e), (f) and (i).

3.   By 31 December 2025, the Commission shall submit a report to the European Parliament and the Council in order to assess the operation of the new delivery model by the Member States and consistency and combined contribution of the interventions in Member States’ CAP Strategic Plans to achieving environmental and climate-related commitments of the Union. When necessary, the Commission shall issue recommendations to the Member States to facilitate the achievement of those commitments.

4.   The Commission shall carry out an interim evaluation to examine the effectiveness, efficiency, relevance, coherence and Union added value of the EAGF and the EAFRD by 31 December 2026, taking into account the indicators set out in Annex I. The Commission may make use of all relevant information already available in accordance with Article 128 of the Financial Regulation.

5.   The Commission shall carry out an ex-post evaluation to examine the effectiveness, efficiency, relevance, coherence and Union added value of the EAGF and the EAFRD.

6.   Based on evidence provided in evaluations on the CAP, including evaluations on CAP Strategic Plans, as well as other relevant information sources, the Commission shall present a report on the interim evaluation, including first results on the performance of the CAP, to the European Parliament and the Council by 31 December 2027. A second report including an assessment of the performance of the CAP shall be presented by 31 December 2031.

Article 142

Reporting based on a core set of indicators

In compliance with the reporting requirement pursuant to Article 41(3), point (h)(iii), of the Financial Regulation, the Commission shall present to the European Parliament and the Council the performance information referred to in that Article measured by the core set of indicators set out in Annex XIV to this Regulation.

Article 143

General provisions

1.   Member States shall provide the Commission with the available information necessary to enable it to perform the monitoring and evaluation of the CAP referred to in Article 141.

2.   Data needed for the context and impact indicators shall primarily come from established data sources, such as the Farm Accountancy Data Network and Eurostat. Where data for those indicators are not available or not complete, the gaps shall be addressed in the context of the European Statistical Programme established under Regulation (EC) No 223/2009 of the European Parliament and of the Council (51), the Farm Accountancy Data Network established by Council Regulation (EC) No 1217/2009 (52), or through formal agreements with other data providers such as the Joint Research Centre and the European Environment Agency.

3.   Data from administrative registers, such as the integrated system referred to in Article 65(2) of Regulation (EU) 2021/2116, the identification system for agricultural parcels referred to in Article 68 of that Regulation, and animal and vineyard registers, shall also be used for statistical purposes, in cooperation with statistical authorities in Member States and with Eurostat.

4.   The Commission may adopt implementing acts laying down rules on the information to be sent by Member States, taking into account the need to avoid any undue administrative burden, as well as the data needs and synergies between potential data sources. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 153(2).

TITLE VIII

COMPETITION PROVISIONS

Article 144

Rules applying to undertakings

Where support under Title III of this Regulation is granted to forms of cooperation between undertakings, it may be granted only to such forms of cooperation which comply with the competition rules as they apply by virtue of Articles 206 to 210 of Regulation (EU) No 1308/2013.

Article 145

State aid

1.   Save as otherwise provided for in this Title, Articles 107, 108 and 109 TFEU shall apply to support under this Regulation.

2.   Articles 107, 108 and 109 TFEU shall not apply to support provided by Member States pursuant to and in accordance with this Regulation, or to additional national financing referred to in Article 146 of this Regulation, falling within the scope of Article 42 TFEU.

Article 146

Additional national financing

Support provided by Member States in relation to operations falling within the scope of Article 42 TFEU that is intended to provide additional financing for interventions in rural development laid down in Title III, Chapter IV, of this Regulation for which Union support is granted at any time during the CAP Strategic Plan period may only be made if it complies with this Regulation and is included in Annex V to the CAP Strategic Plans approved by the Commission.

Member States shall not provide support for interventions in sectors referred to in Title III, Chapter III, of this Regulation except where it is explicitly provided for in that Chapter.

Article 147

Transitional national aid

1.   Member States having granted transitional national aid in the period 2015-2022 in accordance with Article 37 of Regulation (EU) No 1307/2013 may continue to grant transitional national aid to farmers.

2.   The conditions for granting transitional national aid shall be identical to those referred to in Article 37(3) of Regulation (EU) No 1307/2013.

By way of derogation from the first subparagraph of this paragraph, where the conditions for granting transitional national aid referred to in the first subparagraph related to a reference period, Member States may decide to modify the reference period to no later than year 2018.

3.   The total amount of transitional national aid that may be granted per sector shall be limited to the following percentage of the level of payments in each of the sector-specific financial envelopes authorised by the Commission in accordance with Article 132(7) or Article 133a(5) of Council Regulation (EC) No 73/2009 (53) in 2013:

| — | 50 % in 2023, |
| --- | --- |

—

50 % in 2023,

| — | 45 % in 2024, |
| --- | --- |

—

45 % in 2024,

| — | 40 % in 2025, |
| --- | --- |

—

40 % in 2025,

| — | 35 % in 2026, |
| --- | --- |

—

35 % in 2026,

| — | 30 % in 2027. |
| --- | --- |

—

30 % in 2027.

For Cyprus, the percentage shall be calculated on the basis of the sector-specific financial envelopes set out in Annex XVIIa to Regulation (EC) No 73/2009.

TITLE IX

GENERAL AND FINAL PROVISIONS

CHAPTER I

GENERAL PROVISIONS

Article 148

Measures to resolve specific problems

1.   In order to resolve specific problems, the Commission shall adopt implementing acts which are both necessary and justifiable in an emergency. Such implementing acts may derogate from provisions of this Regulation to the extent and for such a period as is strictly necessary. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 153(2).

2.   On duly justified imperative grounds of urgency, and in order to resolve such specific problems as referred to in paragraph 1 while ensuring the continuity of the CAP Strategic Plan in the case of extraordinary circumstances, the Commission shall adopt immediately applicable implementing acts in accordance with the procedure referred to in Article 153(3).

3.   Measures adopted under paragraph 1 or 2 shall remain in force for a period not exceeding twelve months. If after this period the specific problems referred to in those paragraphs persist, the Commission may, in order to establish a permanent solution, submit an appropriate legislative proposal.

4.   The Commission shall inform the European Parliament and the Council of any measure adopted under paragraph 1 or 2 within two working days of its adoption.

Article 149

Application to the outermost regions and the smaller Aegean islands

1.   Title III, Chapter II, does not apply to the outermost regions.

2.   For direct payments granted in the outermost regions of the Union in accordance with Chapter IV of Regulation (EU) No 228/2013 and in the smaller Aegean islands in accordance with Chapter IV of Regulation (EU) No 229/2013, Article 3, points (1) and (2), Article 4(2), (3) and (5), Article 4(4), second subparagraph, Title III, Chapter I, Sections 2 and 3, and Title IX of this Regulation apply. Article 4(2), (3) and (5) and Title III, Chapter I, Section 2, apply without any obligations related to the CAP Strategic Plan.

CHAPTER II

INFORMATION SYSTEM AND PROTECTION OF PERSONAL DATA

Article 150

Exchange of information and documents

1.   The Commission, in collaboration with Member States, shall establish an information system to enable the secure exchange of data of common interest between the Commission and each Member State.

2.   The Commission shall ensure that there is an appropriate secure electronic system in which key information and report on monitoring and evaluation can be recorded, maintained and managed.

3.   The Commission shall adopt implementing acts laying down rules for the operation of the system referred to in paragraph 1. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 153(2).

Article 151

Processing and protection of personal data

1.   Without prejudice to Articles 98, 99 and 100 of Regulation (EU) 2021/2116, Member States and the Commission shall collect personal data for the purpose of carrying out their respective management, control, monitoring and evaluation obligations under this Regulation, and in particular those laid down in Titles VI and VII, and shall not process those data in a way which is incompatible with this purpose.

2.   Where personal data are processed for monitoring and evaluation purposes under Title VII using the secure electronic system referred to in Article 150, they shall be made anonymous.

3.   Personal data, including when they are processed by providers of farm advisory services referred to in Article 15, shall be processed in accordance with Regulations (EU) 2016/679 and (EU) 2018/1725. In particular, such data shall not be stored in a form which permits identification of data subjects for longer than is necessary for the purposes for which they were collected or for which they are further processed, taking into account the minimum retention periods laid down in the applicable national and Union law.

4.   Member States shall inform the data subjects that their personal data may be processed by national and Union bodies in accordance with paragraph 1 and that in this respect they enjoy the data protection rights provided by Regulations (EU) 2016/679 and (EU) 2018/1725.

CHAPTER III

DELEGATED ACTS AND IMPLEMENTING ACTS

Article 152

Exercise of delegation

1.   The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

2.   The power to adopt delegated acts referred to in Article 4(8), Article 7(2), Article 13(3), Article 17(6), Article 35, Article 37(5), Article 38(5), Article 39(3), Articles 45, 56 and 84, Article 87(2), Article 89(4), Article 100(3) and Articles 116, 122 and 158 shall be conferred on the Commission for a period of seven years from 7 December 2021. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the seven-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.

3.   The delegation of powers referred to in Article 4(8), Article 7(2), Article 13(3), Article 17(6), Article 35, Article 37(5), Article 38(5), Article 39(3), Articles 45, 56 and 84, Article 87(2), Article 89(4), Article 100(3) and Articles 116, 122 and 158 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the powers specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

4.   Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.

5.   As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.

6.   A delegated act adopted pursuant to Article 4(8), Article 7(2), Article 13(3), Article 17(6), Article 35, Article 37(5), Article 38(5), Article 39(3), Articles 45, 56 and 84, Article 87(2), Article 89(4), Article 100(3) and Articles 116, 122 and 158 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.

Article 153

Committee procedure

1.   The Commission shall be assisted by a committee called ‘Common Agricultural Policy Committee’. That Committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

2.   Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

In the case of acts referred to in Article 133 and Article 143(4) of this Regulation, where the Committee delivers no opinion, the Commission shall not adopt the draft implementing act and Article 5(4), third subparagraph, of Regulation (EU) No 182/2011 shall apply.

3.   Where reference is made to this paragraph, Article 8 of Regulation (EU) No 182/2011, in conjunction with Article 5 thereof, shall apply.

CHAPTER IV

TRANSITIONAL AND FINAL PROVISIONS

Article 154

Repeals

1.   Regulation (EU) No 1305/2013 is repealed with effect from 1 January 2023.

However, it shall, subject to Regulation (EU) 2020/2220 of the European Parliament and of the Council (54), continue to apply to the implementation of rural development programmes pursuant to Regulation (EU) No 1305/2013 until 31 December 2025. It shall, under the same conditions, apply to expenditure incurred by the beneficiaries and paid by the paying agency in the framework of those rural development programmes until 31 December 2025.

Article 32 of, and Annex III to, Regulation (EU) No 1305/2013 shall continue to apply in respect of the designation of areas facing natural and other specific constraints. References to the rural development programmes shall be read as references to the CAP Strategic Plans.

Until the national and European CAP networks referred to in Article 126 of this Regulation are established, the European network for rural development, the European Innovation Partnership network and the national rural networks referred to in Articles 52, 53 and 54 of Regulation (EU) No 1305/2013 may carry out, in addition to the activities referred to in those Articles, the activities referred to in Article 126 and 127 of this Regulation.

When the national and European CAP networks referred to in Article 126 of this Regulation are established, they may carry out until 31 December 2025, in addition to the activities referred to in Articles 126 and 127 of this Regulation, the tasks referred to in Article 52(3), Article 53(3) and Article 54(3) of Regulation (EU) No 1305/2013 related to the implementation of the rural development programmes pursuant to that Regulation.

2.   Regulation (EU) No 1307/2013 is repealed with effect from 1 January 2023.

However, it shall continue to apply in respect of aid applications relating to claim years starting before 1 January 2023.

3.   The references made in this Regulation to Regulations (EC) No 73/2009 and (EU) No 1307/2013 shall be understood as being made to those Regulations such as they were in force before their repeal.

Article 155

Eligibility of certain types of expenditure relating to the CAP Strategic Plan period

1.   Expenditure relating to legal commitments to beneficiaries incurred under the measures referred to in Article 31 of Regulation (EC) No 1257/1999 or in Article 39 or Article 43 of Regulation (EC) No 1698/2005 which are receiving support under Regulation (EU) No 1305/2013 may continue to be eligible for an EAFRD contribution in the CAP Strategic Plan period, subject to the following conditions:

| (a) | such expenditure is provided for in the relevant CAP Strategic Plan in accordance with this Regulation and complies with Regulation (EU) 2021/2116; |
| --- | --- |

(a)

such expenditure is provided for in the relevant CAP Strategic Plan in accordance with this Regulation and complies with Regulation (EU) 2021/2116;

| (b) | the EAFRD contribution rate of the intervention set in the CAP Strategic Plan in accordance with this Regulation to cover those measures applies; |
| --- | --- |

(b)

the EAFRD contribution rate of the intervention set in the CAP Strategic Plan in accordance with this Regulation to cover those measures applies;

| (c) | the integrated system referred to in Article 65(2) of Regulation (EU) 2021/2116 applies to the legal commitments undertaken under measures that correspond to the area- and animal-based types of intervention listed in Title III, Chapters II and IV, of this Regulation and the relevant operations are clearly identified; and |
| --- | --- |

(c)

the integrated system referred to in Article 65(2) of Regulation (EU) 2021/2116 applies to the legal commitments undertaken under measures that correspond to the area- and animal-based types of intervention listed in Title III, Chapters II and IV, of this Regulation and the relevant operations are clearly identified; and

| (d) | the payments for the legal commitments referred to in point (c) are made within the period laid down in Article 44(2) of Regulation (EU) 2021/2116. |
| --- | --- |

(d)

the payments for the legal commitments referred to in point (c) are made within the period laid down in Article 44(2) of Regulation (EU) 2021/2116.

2.   Expenditure relating to legal commitments to beneficiaries incurred under the measures referred to in Article 23 of Regulation (EC) No 1698/2005 may continue to be eligible for an EAFRD contribution in the CAP Strategic Plan period, subject to the following conditions:

| (a) | such expenditure is notified to the Commission as an additional information in the part of the CAP Strategic Plan dedicated to the intervention strategy, referred to in Article 109, and by indicating the expenditure in the financial plan of the CAP Strategic Plan referred to in Article 112(2); |
| --- | --- |

(a)

such expenditure is notified to the Commission as an additional information in the part of the CAP Strategic Plan dedicated to the intervention strategy, referred to in Article 109, and by indicating the expenditure in the financial plan of the CAP Strategic Plan referred to in Article 112(2);

| (b) | it complies with Regulation (EU) No 1306/2013, which continues to apply to such expenditure in accordance with Article 104(1), second subparagraph, point (d), of Regulation (EU) 2021/2116; and |
| --- | --- |

(b)

it complies with Regulation (EU) No 1306/2013, which continues to apply to such expenditure in accordance with Article 104(1), second subparagraph, point (d), of Regulation (EU) 2021/2116; and

| (c) | the EAFRD contribution rate established in the CAP Strategic Plan pursuant to Article 91(2), point (d), of this Regulation applies. |
| --- | --- |

(c)

the EAFRD contribution rate established in the CAP Strategic Plan pursuant to Article 91(2), point (d), of this Regulation applies.

3.   Expenditure relating to legal commitments to beneficiaries incurred under the multiannual measures referred to in Articles 22, 28, 29, 33 and 34 of Regulation (EU) No 1305/2013 may be eligible for an EAFRD contribution in the CAP Strategic Plan period, subject to the following conditions:

| (a) | such expenditure is provided for in the relevant CAP Strategic Plan in accordance with this Regulation and complies with Regulation (EU) 2021/2116; |
| --- | --- |

(a)

such expenditure is provided for in the relevant CAP Strategic Plan in accordance with this Regulation and complies with Regulation (EU) 2021/2116;

| (b) | the EAFRD contribution rate of the intervention set in the CAP Strategic Plan in accordance with this Regulation to cover those measures applies; |
| --- | --- |

(b)

the EAFRD contribution rate of the intervention set in the CAP Strategic Plan in accordance with this Regulation to cover those measures applies;

| (c) | the integrated system referred to in Article 65(2) of Regulation (EU) 2021/2116 applies to the legal commitments undertaken under measures that correspond to the area- and animal-based types of intervention listed in Title III, Chapters II and IV, of this Regulation and the relevant operations are clearly identified; and |
| --- | --- |

(c)

the integrated system referred to in Article 65(2) of Regulation (EU) 2021/2116 applies to the legal commitments undertaken under measures that correspond to the area- and animal-based types of intervention listed in Title III, Chapters II and IV, of this Regulation and the relevant operations are clearly identified; and

| (d) | the payments for the legal commitments referred to in point (c) of this paragraph are made within the period laid down in Article 44(2) of Regulation (EU) 2021/2116. |
| --- | --- |

(d)

the payments for the legal commitments referred to in point (c) of this paragraph are made within the period laid down in Article 44(2) of Regulation (EU) 2021/2116.

4.   Expenditure relating to legal commitments to beneficiaries incurred under the measures referred to in Articles 14 to 18, Article 19(1), points (a) and (b), and Articles 20, 23 to 27, 35, 38, 39 and 39a of Regulation (EU) No 1305/2013, Article 35 of Regulation (EU) No 1303/2013 and Article 4 of Regulation (EU) 2020/2220 after 31 December 2025 may be eligible for an EAFRD contribution in the CAP Strategic Plan period, subject to the following conditions:

| (a) | such expenditure is provided for in the relevant CAP Strategic Plan in accordance with this Regulation, with the exception of Article 73(3), first subparagraph, point (f), thereof, and complies with Regulation (EU) ; |
| --- | --- |

(a)

such expenditure is provided for in the relevant CAP Strategic Plan in accordance with this Regulation, with the exception of Article 73(3), first subparagraph, point (f), thereof, and complies with Regulation (EU) ;

| (b) | the EAFRD contribution rate of the intervention established in the CAP Strategic Plan in accordance with this Regulation to cover those measures applies. |
| --- | --- |

(b)

the EAFRD contribution rate of the intervention established in the CAP Strategic Plan in accordance with this Regulation to cover those measures applies.

5.   Expenditure relating to legal commitments to beneficiaries incurred under the multiannual measures referred to in Articles 28 and 29 of Regulation (EU) No 1305/2013 may be eligible for support from the EAGF in the CAP Strategic Plan period, subject to the following conditions:

| (a) | such expenditure is provided for in the relevant CAP Strategic Plan in accordance with Article 31(7), first subparagraph, point (b), of this Regulation and complies with Regulation (EU) 2021/2116; |
| --- | --- |

(a)

such expenditure is provided for in the relevant CAP Strategic Plan in accordance with Article 31(7), first subparagraph, point (b), of this Regulation and complies with Regulation (EU) 2021/2116;

| (b) | the integrated system referred to in Article 65(2) of Regulation (EU) 2021/2116 applies to the legal commitments undertaken under measures that correspond to eco-schemes referred to in Article 31 of this Regulation and the relevant operations are clearly identified; |
| --- | --- |

(b)

the integrated system referred to in Article 65(2) of Regulation (EU) 2021/2116 applies to the legal commitments undertaken under measures that correspond to eco-schemes referred to in Article 31 of this Regulation and the relevant operations are clearly identified;

| (c) | the payments for the legal commitments referred to in point (b) of this paragraph are made within the period laid down in Article 44(2) of Regulation (EU) 2021/2116. |
| --- | --- |

(c)

the payments for the legal commitments referred to in point (b) of this paragraph are made within the period laid down in Article 44(2) of Regulation (EU) 2021/2116.

Article 156

Transition for financial allocations for types of intervention in certain sectors

As from the date from which a CAP Strategic Plan has legal effects in accordance with Article 118(7) of this Regulation, the sum of the payments made in a financial year within each of the aid schemes referred to in Articles 29 to 31 and Articles 39 to 60 of Regulation (EU) No 1308/2013 and within each of the types of intervention for certain sectors referred to in Article 42, points (b) to (e), of this Regulation shall not exceed the financial allocations laid down in Article 88 of this Regulation for each financial year for each of those types of intervention.

Article 157

Eligibility of expenditure for multi-funded community-led local development

By way of derogation from Articles 86(1) and 118(7) of this Regulation, expenditure incurred under Article 31(2), point (c), and Article 31(3) of Regulation (EU) 2021/1060 in combination with Article 77(1), point (b), and Article 2(2) of this Regulation shall be eligible for a contribution from the EAFRD from the date of submission of the CAP Strategic Plan provided that the support is paid by the paying agency as of 1 January 2023. Regulation (EU) No 1306/2013 shall apply in respect of such expenditure from the date of submission of the CAP Strategic Plan until 31 December 2022.

Article 158

Transitional measures

The Commission is empowered to adopt delegated acts in accordance with Article 152 supplementing this Regulation with measures to protect any acquired rights and legitimate expectations of beneficiaries to the extent necessary for the transition from the arrangements provided for in Regulations (EU) No 1305/2013, (EU) No 1307/2013 and (EU) No 1308/2013 to those laid down in this Regulation. Those transitional rules shall in particular lay down the conditions under which support approved by the Commission under Regulations (EU) No 1305/2013 and (EU) No 1308/2013 may be integrated into support provided for under this Regulation, including for technical assistance and for the ex-post evaluations.

Article 159

Review of Annex XIII

By 31 December 2025, the Commission shall review the list in Annex XIII on the basis of the Union acquis in the area of environment and climate existing at that time and, where appropriate, make legislative proposals to add additional legislative acts to that list.

Article 160

Entry into force

This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

Official Journal of the European Union

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 2 December 2021.

For the European Parliament

The President

D. M. SASSOLI

For the Council

The President

J. VRTOVEC

---

(1)  
  OJ C 41, 1.2.2019, p. 1.

1

(2)  
  OJ C 62, 15.2.2019, p. 214.

2

(3)  
  OJ C 86, 7.3.2019, p. 173.

3

(4)  Position of the European Parliament of 23 November 2021 (not yet published in the Official Journal) and decision of the Council of 2 December 2021.

4

(5)  Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1).

5

(6)  Regulation (EU) 2021/1060 of the European Parliament and of the Council of 24 June 2021 laying down common provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund, the Just Transition Fund and the European Maritime, Fisheries and Aquaculture Fund and financial rules for those and for the Asylum, Migration and Integration Fund, the Internal Security Fund and the Instrument for Financial Support for Border Management and Visa Policy (OJ L 231, 30.6.2021, p. 159).

6

(7)  Regulation (EU) 2021/695 of the European Parliament and of the Council of 28 April 2021 establishing Horizon Europe – the Framework Programme for Research and Innovation, laying down its rules for participation and dissemination, and repealing Regulations (EU) No 1290/2013 and (EU) No 1291/2013 (OJ L 170, 12.5.2021, p. 1).

7

(8)  Regulation (EU) 2021/2116 of the European Parliament and of the Council of 2 December 2021 on the financing, management and monitoring of the common agricultural policy and repealing Regulation (EU) No 1306/2013 (see page 187 of this Official Journal).

8

(9)  Regulation (EU) 2021/523 of the European Parliament and of the Council of 24 March 2021 establishing the InvestEU Programme and amending Regulation (EU) 2015/1017 (OJ L 107, 26.3.2021, p. 30).

9

(10)  Regulation (EU) No 1305/2013 of the European Parliament and of the Council of 17 December 2013 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) and repealing Council Regulation (EC) No 1698/2005 (OJ L 347, 20.12.2013, p. 487).

10

(11)  Regulation (EU) No 1307/2013 of the European Parliament and of the Council of 17 December 2013 establishing rules for direct payments to farmers under support schemes within the framework of the common agricultural policy and repealing Council Regulation (EC) No 637/2008 and Council Regulation (EC) No 73/2009 (OJ L 347, 20.12.2013, p. 608).

11

(12)  
  OJ L 147, 18.6.1993, p. 26.

12

(13)  Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021 to 2027 (OJ L 433 I, 22.12.2020, p. 11).

13

(14)  Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora (OJ L 206, 22.7.1992, p. 7).

14

(15)  Directive 2009/147/EC of the European Parliament and of the Council of 30 November 2009 on the conservation of wild birds (OJ L 20, 26.1.2010, p. 7).

15

(16)  Council Directive 91/676/EEC of 12 December 1991 concerning the protection of waters against pollution caused by nitrates from agricultural sources (OJ L 375, 31.12.1991, p. 1).

16

(17)  Regulation (EU) No 1306/2013 of the European Parliament and of the Council of 17 December 2013 on the financing, management and monitoring of the common agricultural policy and repealing Council Regulations (EEC) No 352/78, (EC) No 165/94, (EC) No 2799/98, (EC) No 814/2000, (EC) No 1290/2005 and (EC) No 485/2008 (OJ L 347, 20.12.2013, p. 549).

17

(18)  Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy (OJ L 327, 22.12.2000, p. 1).

18

(19)  Directive 2009/128/EC of the European Parliament and of the Council of 21 October 2009 establishing a framework for Community action to achieve the sustainable use of pesticides (OJ L 309, 24.11.2009, p. 71).

19

(20)  Council Directive 89/391/EEC of 12 June 1989 on the introduction of measures to encourage improvements in the safety and health of workers at work (OJ L 183, 29.6.1989, p. 1).

20

(21)  Directive 2009/104/EC of the European Parliament and of the Council of 16 September 2009 concerning the minimum safety and health requirements for the use of work equipment by workers at work (second individual Directive within the meaning of Article 16(1) of Directive 89/391/EEC) (OJ L 260, 3.10.2009, p. 5).

21

(22)  Directive (EU) 2019/1152 of the European Parliament and of the Council of 20 June 2019 on transparent and predictable working conditions in the European Union (OJ L 186, 11.7.2019, p. 105).

22

(23)  Regulation (EU) No 492/2011 of the European Parliament and of the Council of 5 April 2011 on freedom of movement for workers within the Union (OJ L 141, 27.5.2011, p. 1).

23

(24)  Regulation (EU) 2018/848 of the European Parliament and of the Council of 30 May 2018 on organic production and labelling of organic products and repealing Council Regulation (EC) No 834/2007 (OJ L 150, 14.6.2018, p. 1).

24

(25)  Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007 (OJ L 347, 20.12.2013, p. 671).

25

(26)  Regulation (EU) 2018/841 of the European Parliament and of the Council of 30 May 2018 on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry in the 2030 climate and energy framework, and amending Regulation (EU) No 525/2013 and Decision No 529/2013/EU (OJ L 156, 19.6.2018, p. 1).

26

(27)  Regulation (EC) No 1059/2003 of the European Parliament and of the Council of 26 May 2003 on the establishment of a common classification of territorial units for statistics (NUTS) (OJ L 154, 21.6.2003, p. 1).

27

(28)  
  OJ L 123, 12.5.2016, p. 1.

28

(29)  Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 4.5.2016, p. 1).

29

(30)  Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October 2018 on the protection of natural persons with regard to the processing of personal data by the Union institutions, bodies, offices and agencies and on the free movement of such data, and repealing Regulation (EC) No 45/2001 and Decision No 1247/2002/EC (OJ L 295, 21.11.2018, p. 39).

30

(31)  Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by the Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).

31

(32)  Regulation (EU) No 228/2013 of the European Parliament and of the Council of 13 March 2013 laying down specific measures for agriculture in the outermost regions of the Union and repealing Council Regulation (EC) No 247/2006 (OJ L 78, 20.3.2013, p. 23).

32

(33)  Regulation (EU) No 229/2013 of the European Parliament and of the Council of 13 March 2013 laying down specific measures for agriculture in favour of the smaller Aegean islands and repealing Council Regulation (EC) No 1405/2006 (OJ L 78, 20.3.2013, p. 41).

33

(34)  Commission Regulation (EU) No 702/2014 of 25 June 2014 declaring certain categories of aid in the agricultural and forestry sectors and in rural areas compatible with the internal market in application of Articles 107 and 108 of the Treaty on the Functioning of the European Union (OJ L 193, 1.7.2014, p. 1).

34

(35)  Council Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations (OJ L 160, 26.6.1999, p. 80).

35

(36)  Council Regulation (EC) No 1698/2005 of 20 September 2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) (OJ L 277, 21.10.2005, p. 1).

36

(37)  Regulation (EU) No 1305/2013 of the European Parliament and of the Council of 17 December 2013 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) and repealing Council Regulation (EC) No 1698/2005 (OJ L 347, 20.12.2013, p. 487).

37

(38)  Regulation (EC) No 1107/2009 of the European Parliament and of the Council of 21 October 2009 concerning the placing of plant protection products on the market and repealing Council Directives 79/117/EEC and 91/414/EEC (OJ L 309, 24.11.2009, p. 1).

38

(39)  Directive 2008/50/EC of the European Parliament and of the Council of 21 May 2008 on ambient air quality and cleaner air for Europe (OJ L 152, 11.6.2008, p. 1).

39

(40)  Regulation (EU) 2016/429 of the European Parliament and of the Council of 9 March 2016 on transmissible animal diseases and amending and repealing certain acts in the area of animal health (‘Animal Health Law’) (OJ L 84, 31.3.2016, p. 1).

40

(41)  Regulation (EU) 2016/2031 of the European Parliament of the Council of 26 October 2016 on protective measures against pests of plants, amending Regulations (EU) No 228/2013, (EU) No 652/2014 and (EU) No 1143/2014 of the European Parliament and of the Council and repealing Council Directives 69/464/EEC, 74/647/EEC, 93/85/EEC, 98/57/EC, 2000/29/EC, 2006/91/EC and 2007/33/EC (OJ L 317, 23.11.2016, p. 4).

41

(42)  Directive (EU) 2016/2284 of the European Parliament and of the Council of 14 December 2016 on the reduction of national emissions of certain atmospheric pollutants, amending Directive 2003/35/EC and repealing Directive 2001/81/EC (OJ L 344, 17.12.2016, p. 1).

42

(43)  Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (OJ L 124, 20.5.2003, p. 36).

43

(44)  
  OJ C 249, 31.7.2014, p. 1.

44

(45)  Regulation (EU) 2016/1012 of the European Parliament and of the Council of 8 June 2016 on zootechnical and genealogical conditions for the breeding, trade in and entry into the Union of purebred breeding animals, hybrid breeding pigs and the germinal products thereof and amending Regulation (EU) No 652/2014, Council Directives 89/608/EEC and 90/425/EEC and repealing certain acts in the area of animal breeding (‘Animal Breeding Regulation’) ( OJ L 171, 29.6.2016, p. 66).

45

(46)  Regulation (EU) 2020/741 of the European Parliament and of the Council of 25 May 2020 on minimum requirements for water reuse (OJ L 177, 5.6.2020, p. 32).

46

(47)  Regulation (EU) No 1291/2013 of the European Parliament and of the Council of 11 December 2013 establishing Horizon 2020 - the Framework Programme for Research and Innovation (2014-2020) and repealing Decision No 1982/2006/EC (OJ L 347, 20.12.2013, p. 104).

47

(48)  Regulation (EU) 2021/783 of the European Parliament and of the Council of 29 April 2021 establishing a Programme for the Environment and Climate Action (LIFE), and repealing Regulation (EU) No 1293/2013 (OJ L 172, 17.5.2021, p. 53).

48

(49)  Regulation (EU) 2021/817 of the European Parliament and of the Council of 20 May 2021 establishing Erasmus+: the Union Programme for education and training, youth and sport and repealing Regulation (EU) No 1288/2013 (OJ L 189, 28.5.2021, p. 1).

49

(50)  Directive 2001/42/EC of the European Parliament and of the Council of 27 June 2001 on the assessment of the effects of certain plans and programmes on the environment (OJ L 197, 21.7.2001, p. 30).

50

(51)  Regulation (EC) No 223/2009 of the European Parliament and of the Council of 11 March 2009 on European statistics and repealing Regulation (EC, Euratom) No 1101/2008 of the European Parliament and of the Council on the transmission of data subject to statistical confidentiality to the Statistical Office of the European Communities, Council Regulation (EC) No 322/97 on Community Statistics, and Council Decision 89/382/EEC, Euratom establishing a Committee on the Statistical Programmes of the European Communities (OJ L 87, 31.3.2009, p. 164).

51

(52)  Council Regulation (EC) No 1217/2009 of 30 November 2009 setting up a network for the collection of accountancy data on the incomes and business operation of agricultural holdings in the European Union (OJ L 328, 15.12.2009, p. 27).

52

(53)  Council Regulation (EC) No 73/2009 of 19 January 2009 establishing common rules for direct support schemes for farmers under the common agricultural policy and establishing certain support schemes for farmers, amending Regulations (EC) No 1290/2005, (EC) No 247/2006, (EC) No 378/2007 and repealing Regulation (EC) No 1782/2003 (OJ L 30, 31.1.2009, p. 16).

53

(54)  Regulation (EU) 2020/2220 of the European Parliament and of the Council of 23 December 2020 laying down certain transitional provisions for support from the European Agricultural Fund for Rural Development (EAFRD) and from the European Agricultural Guarantee Fund (EAGF) in the years 2021 and 2022 and amending Regulations (EU) No 1305/2013, (EU) No 1306/2013 and (EU) No 1307/2013 as regards resources and application in the years 2021 and 2022 and Regulation (EU) No 1308/2013 as regards resources and the distribution of such support in respect of the years 2021 and 2022 (OJ L 437, 28.12.2020, p. 1).

54

---

ANNEX I

IMPACT, RESULT, OUTPUT AND CONTEXT INDICATORS PURSUANT TO ARTICLE 7

| Assessment of the performance of the policy (multi-annual) - IMPACT
  Objectives and the corresponding impact indicators (1) | Performance review - RESULT (2)

  Only based on interventions supported by the CAP |
| --- | --- |

Assessment of the performance of the policy (multi-annual) - IMPACT

Objectives and the corresponding impact indicators (1)

Performance review - RESULT (2)

Only based on interventions supported by the CAP

| EU cross-cutting objective | Impact indicators | | Result indicators |
| --- | --- | --- | --- |
| Modernising agriculture and rural areas by fostering and sharing knowledge, innovation and digitalisation in agriculture and rural areas and by encouraging their uptake by farmers, through improved access to research, innovation, knowledge exchange and training | I.1 | Sharing knowledge and innovation: Share of CAP budget for knowledge sharing and innovation |

EU cross-cutting objective

Impact indicators

Result indicators

Modernising agriculture and rural areas by fostering and sharing knowledge, innovation and digitalisation in agriculture and rural areas and by encouraging their uptake by farmers, through improved access to research, innovation, knowledge exchange and training

I.1

Sharing knowledge and innovation: Share of CAP budget for knowledge sharing and innovation

| R.1PR | Enhancing performance through knowledge and innovation: Number of persons benefitting from advice, training, knowledge exchange or participating in European Innovation Partnership (EIP) operational groups supported by the CAP in order to enhance sustainable economic, social, environmental, climate-related and resource efficiency performance |
| --- | --- |

R.1PR

Enhancing performance through knowledge and innovation: Number of persons benefitting from advice, training, knowledge exchange or participating in European Innovation Partnership (EIP) operational groups supported by the CAP in order to enhance sustainable economic, social, environmental, climate-related and resource efficiency performance

| R.2 | Linking advice and knowledge systems: Number of advisors receiving support to be integrated within the Agricultural Knowledge and Innovation Systems (AKIS) |
| --- | --- |

R.2

Linking advice and knowledge systems: Number of advisors receiving support to be integrated within the Agricultural Knowledge and Innovation Systems (AKIS)

| R.3 | Digitalising agriculture: Share of farms benefitting from support for digital farming technology through CAP |
| --- | --- |

R.3

Digitalising agriculture: Share of farms benefitting from support for digital farming technology through CAP

| EU specific objective | Impact indicators | | Result indicators |
| --- | --- | --- | --- |
| To support viable farm income and resilience of the agricultural sector across the Union in order to enhance long-term food security and agricultural diversity as well as to ensure the economic sustainability of agricultural production in the Union | I.2 | Reducing income disparities: Evolution of agricultural income compared to the general economy |

EU specific objective

Impact indicators

Result indicators

To support viable farm income and resilience of the agricultural sector across the Union in order to enhance long-term food security and agricultural diversity as well as to ensure the economic sustainability of agricultural production in the Union

I.2

Reducing income disparities: Evolution of agricultural income compared to the general economy

| I.3 | Reducing farm income variability: Evolution of agricultural income |
| --- | --- |

I.3

Reducing farm income variability: Evolution of agricultural income

| I.4 | Supporting viable farm income: Evolution of agricultural income level by type of farming (compared to the average in agriculture) |
| --- | --- |

I.4

Supporting viable farm income: Evolution of agricultural income level by type of farming (compared to the average in agriculture)

| I.5 | Contributing to territorial balance: Evolution of agricultural income in areas with natural constraints (compared to the average) |
| --- | --- |

I.5

Contributing to territorial balance: Evolution of agricultural income in areas with natural constraints (compared to the average)

| R.4 | Linking income support to standards and good practices: Share of utilised agricultural area (UAA) covered by income support and subject to conditionality |
| --- | --- |

R.4

Linking income support to standards and good practices: Share of utilised agricultural area (UAA) covered by income support and subject to conditionality

| R.5 | Risk management: Share of farms with supported CAP risk management tools |
| --- | --- |

R.5

Risk management: Share of farms with supported CAP risk management tools

| R.6PR | Redistribution to smaller farms: Percentage of additional direct payments per hectare for eligible farms below average farm size (compared to average) |
| --- | --- |

R.6PR

Redistribution to smaller farms: Percentage of additional direct payments per hectare for eligible farms below average farm size (compared to average)

| R.7PR | Enhancing support for farms in areas with specific needs: Percentage of additional support per hectare in areas with higher needs (compared to average) |
| --- | --- |

R.7PR

Enhancing support for farms in areas with specific needs: Percentage of additional support per hectare in areas with higher needs (compared to average)

To enhance market orientation and increase farm competitiveness both in the short and long term, including greater focus on research, technology and digitalisation

| I.6 | Increasing farm productivity: Total factor productivity in agriculture |
| --- | --- |

I.6

Increasing farm productivity: Total factor productivity in agriculture

| I.7 | Harnessing agri-food trade: Agri-food imports and exports |
| --- | --- |

I.7

Harnessing agri-food trade: Agri-food imports and exports

| R.8 | Targeting farms in specific sectors: | Share of farms benefitting from coupled income support for improving competitiveness, sustainability or quality |
| --- | --- | --- |

R.8

Targeting farms in specific sectors:

Share of farms benefitting from coupled income support for improving competitiveness, sustainability or quality

| R.9PR | Farm modernisation: Share of farms receiving investment support to restructure and modernise, including to improve resource efficiency |
| --- | --- |

R.9PR

Farm modernisation: Share of farms receiving investment support to restructure and modernise, including to improve resource efficiency

To improve the farmers’ position in the value chain

| I.8 | Improving farmers’ position in the food chain: Value added for primary producers in the food chain |
| --- | --- |

I.8

Improving farmers’ position in the food chain: Value added for primary producers in the food chain

| R.10PR | Better supply chain organisation: Share of farms participating in producer groups, producer organisations, local markets, short supply chain circuits and quality schemes supported by the CAP |
| --- | --- |

R.10PR

Better supply chain organisation: Share of farms participating in producer groups, producer organisations, local markets, short supply chain circuits and quality schemes supported by the CAP

| R.11 | Concentration of supply: Share of value of marketed production by producer organisations or producer groups with operational programmes in certain sectors |
| --- | --- |

R.11

Concentration of supply: Share of value of marketed production by producer organisations or producer groups with operational programmes in certain sectors

To contribute to climate change mitigation and adaptation, including by reducing greenhouse gas emissions and enhancing carbon sequestration, as well as to promote sustainable energy

| I.9 | Improving the resilience of agriculture to climate change: Agricultural sector resilience progress indicator |
| --- | --- |

I.9

Improving the resilience of agriculture to climate change: Agricultural sector resilience progress indicator

| I.10 | Contributing to climate change mitigation: Greenhouse gas emissions from agriculture |
| --- | --- |

I.10

Contributing to climate change mitigation: Greenhouse gas emissions from agriculture

| I.11 | Enhancing carbon sequestration: Soil organic carbon in agricultural land |
| --- | --- |

I.11

Enhancing carbon sequestration: Soil organic carbon in agricultural land

| I.12 | Increasing sustainable energy in agriculture: Sustainable production of renewable energy from agriculture and forestry |
| --- | --- |

I.12

Increasing sustainable energy in agriculture: Sustainable production of renewable energy from agriculture and forestry

| R.12 | Adaptation to climate change: Share of utilised agricultural area (UAA) under supported commitments to improve adaptation to climate change |
| --- | --- |

R.12

Adaptation to climate change: Share of utilised agricultural area (UAA) under supported commitments to improve adaptation to climate change

| R.13PR | Reducing emissions in the livestock sector: Share of livestock units (LU) under supported commitments to reduce emissions of greenhouse gases and/or ammonia, including manure management |
| --- | --- |

R.13PR

Reducing emissions in the livestock sector: Share of livestock units (LU) under supported commitments to reduce emissions of greenhouse gases and/or ammonia, including manure management

| R.14PR | Carbon storage in soils and biomass: Share of utilised agricultural area (UAA) under supported commitments to reduce emissions or to maintain or enhance carbon storage (including permanent grassland, permanent crops with permanent green cover, agricultural land in wetland and peatland) |
| --- | --- |

R.14PR

Carbon storage in soils and biomass: Share of utilised agricultural area (UAA) under supported commitments to reduce emissions or to maintain or enhance carbon storage (including permanent grassland, permanent crops with permanent green cover, agricultural land in wetland and peatland)

| R.15 | Renewable energy from agriculture, forestry and from other renewable sources: Supported investments in renewable energy production capacity, including bio-based (in MW) |
| --- | --- |

R.15

Renewable energy from agriculture, forestry and from other renewable sources: Supported investments in renewable energy production capacity, including bio-based (in MW)

| R.16 | Investments related to climate: Share of farms benefitting from CAP investment support contributing to climate change mitigation and adaptation, and to the production of renewable energy or biomaterials |
| --- | --- |

R.16

Investments related to climate: Share of farms benefitting from CAP investment support contributing to climate change mitigation and adaptation, and to the production of renewable energy or biomaterials

| R.17PR | Afforested land: Area supported for afforestation, agroforestry and restoration, including breakdowns |
| --- | --- |

R.17PR

Afforested land: Area supported for afforestation, agroforestry and restoration, including breakdowns

| R.18 | Investment support for the forest sector: Total investment to improve the performance of the forestry sector |
| --- | --- |

R.18

Investment support for the forest sector: Total investment to improve the performance of the forestry sector

To foster sustainable development and efficient management of natural resources such as water, soil and air, including by reducing chemical dependency

| I.13 | Reducing soil erosion: Percentage of agricultural land in moderate and severe soil erosion |
| --- | --- |

I.13

Reducing soil erosion: Percentage of agricultural land in moderate and severe soil erosion

| I.14 | Improving air quality: Ammonia emissions from agriculture |
| --- | --- |

I.14

Improving air quality: Ammonia emissions from agriculture

| I.15 | Improving water quality: Gross nutrient balance on agricultural land |
| --- | --- |

I.15

Improving water quality: Gross nutrient balance on agricultural land

| I.16 | Reducing nutrient leakage: Nitrates in ground water – percentage of ground water stations with nitrates concentration over 50 mg/l under Directive 91/676/EEC |
| --- | --- |

I.16

Reducing nutrient leakage: Nitrates in ground water – percentage of ground water stations with nitrates concentration over 50 mg/l under Directive 91/676/EEC

| I.17 | Reducing pressure on water resource: Water Exploitation Index Plus (WEI+) |
| --- | --- |

I.17

Reducing pressure on water resource: Water Exploitation Index Plus (WEI+)

| I.18 | Sustainable and reduced use of pesticides: Risks, use and impacts of pesticides |
| --- | --- |

I.18

Sustainable and reduced use of pesticides: Risks, use and impacts of pesticides

| R.19PR | Improving and protecting soils: Share of utilised agricultural area (UAA) under supported commitments beneficial for soil management to improve soil quality and biota (such as reducing tillage, soil cover with crops, crop rotation included with leguminous crops) |
| --- | --- |

R.19PR

Improving and protecting soils: Share of utilised agricultural area (UAA) under supported commitments beneficial for soil management to improve soil quality and biota (such as reducing tillage, soil cover with crops, crop rotation included with leguminous crops)

| R.20PR | Improving air quality: Share of utilised agricultural area (UAA) under supported commitments to reduce ammonia emission |
| --- | --- |

R.20PR

Improving air quality: Share of utilised agricultural area (UAA) under supported commitments to reduce ammonia emission

| R.21PR | Protecting water quality: Share of utilised agricultural area (UAA) under supported commitments for the quality of water bodies |
| --- | --- |

R.21PR

Protecting water quality: Share of utilised agricultural area (UAA) under supported commitments for the quality of water bodies

| R.22PR | Sustainable nutrient management: Share of utilised agricultural area (UAA) under supported commitments related to improved nutrient management |
| --- | --- |

R.22PR

Sustainable nutrient management: Share of utilised agricultural area (UAA) under supported commitments related to improved nutrient management

| R.23PR | Sustainable water use: Share of utilised agricultural area (UAA) under supported commitments to improve water balance |
| --- | --- |

R.23PR

Sustainable water use: Share of utilised agricultural area (UAA) under supported commitments to improve water balance

| R.24PR | Sustainable and reduced use of pesticides: Share of utilised agricultural area (UAA) under supported specific commitments which lead to a sustainable use of pesticides in order to reduce risks and impacts of pesticides such as pesticides leakage |
| --- | --- |

R.24PR

Sustainable and reduced use of pesticides: Share of utilised agricultural area (UAA) under supported specific commitments which lead to a sustainable use of pesticides in order to reduce risks and impacts of pesticides such as pesticides leakage

| R.25 | Environmental performance in the livestock sector: Share of livestock units (LU) under supported commitments to improve environmental sustainability |
| --- | --- |

R.25

Environmental performance in the livestock sector: Share of livestock units (LU) under supported commitments to improve environmental sustainability

| R.26 | Investments related to natural resources: Share of farms benefitting from CAP productive and non-productive investment support related to care for the natural resources |
| --- | --- |

R.26

Investments related to natural resources: Share of farms benefitting from CAP productive and non-productive investment support related to care for the natural resources

| R.27 | Environmental or climate-related performance through investment in rural areas: Number of operations contributing to environmental sustainability and the achievement of climate mitigation and adaptation goals in rural areas |
| --- | --- |

R.27

Environmental or climate-related performance through investment in rural areas: Number of operations contributing to environmental sustainability and the achievement of climate mitigation and adaptation goals in rural areas

| R.28 | Environmental or climate-related performance through knowledge and innovation: Number of persons benefitting from advice, training, knowledge exchange, or participating in European Innovation Partnership (EIP) operational groups supported by the CAP related to environmental or climate-related performance |
| --- | --- |

R.28

Environmental or climate-related performance through knowledge and innovation: Number of persons benefitting from advice, training, knowledge exchange, or participating in European Innovation Partnership (EIP) operational groups supported by the CAP related to environmental or climate-related performance

To contribute to halting and reversing biodiversity loss, enhance ecosystem services and preserve habitats and landscapes

| I.19 | Increasing farmland bird populations: Farmland Bird Index |
| --- | --- |

I.19

Increasing farmland bird populations: Farmland Bird Index

| I.20 | Enhancing biodiversity protection: Percentage of species and habitats of Community interest related to agriculture with stable or increasing trends, with a breakdown of the percentage for wild pollinators species (3) |
| --- | --- |

I.20

Enhancing biodiversity protection: Percentage of species and habitats of Community interest related to agriculture with stable or increasing trends, with a breakdown of the percentage for wild pollinators species (3)

| I.21 | Enhancing provision of ecosystem services: Share of agricultural land covered with landscape features |
| --- | --- |

I.21

Enhancing provision of ecosystem services: Share of agricultural land covered with landscape features

| I.22 | Increasing agro-biodiversity in farming system: Crop diversity |
| --- | --- |

I.22

Increasing agro-biodiversity in farming system: Crop diversity

| R.29PR | Development of organic agriculture: Share of utilised agricultural area (UAA) supported by the CAP for organic farming, with a split between maintenance and conversion |
| --- | --- |

R.29PR

Development of organic agriculture: Share of utilised agricultural area (UAA) supported by the CAP for organic farming, with a split between maintenance and conversion

| R.30PR | Supporting sustainable forest management: Share of forest land under commitments to support forest protection and management of ecosystem services |
| --- | --- |

R.30PR

Supporting sustainable forest management: Share of forest land under commitments to support forest protection and management of ecosystem services

| R.31PR | Preserving habitats and species: Share of utilised agricultural area (UAA) under supported commitments for supporting biodiversity conservation or restoration including high-nature-value farming practices |
| --- | --- |

R.31PR

Preserving habitats and species: Share of utilised agricultural area (UAA) under supported commitments for supporting biodiversity conservation or restoration including high-nature-value farming practices

| R.32 | Investments related to biodiversity: Share of farms benefitting from CAP investment support contributing to biodiversity |
| --- | --- |

R.32

Investments related to biodiversity: Share of farms benefitting from CAP investment support contributing to biodiversity

| R.33 | Improving Natura 2000 management: Share of total Natura 2000 area under supported commitments |
| --- | --- |

R.33

Improving Natura 2000 management: Share of total Natura 2000 area under supported commitments

| R.34PR | Preserving landscape features: Share of utilised agricultural area (UAA) under supported commitments for managing landscape features, including hedgerows and trees |
| --- | --- |

R.34PR

Preserving landscape features: Share of utilised agricultural area (UAA) under supported commitments for managing landscape features, including hedgerows and trees

| R.35 | Preserving beehives: Share of beehives supported by the CAP |
| --- | --- |

R.35

Preserving beehives: Share of beehives supported by the CAP

To attract and sustain young farmers and other new farmers and facilitate sustainable business development in rural areas

| I.23 | Attracting young farmers: Evolution of the number of new farm managers and the number of new young farm managers, including a gender breakdown |
| --- | --- |

I.23

Attracting young farmers: Evolution of the number of new farm managers and the number of new young farm managers, including a gender breakdown

| R.36PR | Generational renewal: Number of young farmers benefitting from setting up with support from the CAP, including a gender breakdown |
| --- | --- |

R.36PR

Generational renewal: Number of young farmers benefitting from setting up with support from the CAP, including a gender breakdown

To promote employment, growth, gender equality, including the participation of women in farming, social inclusion and local development in rural areas, including the circular bio-economy and sustainable forestry

| I.24 | Contributing to jobs in rural areas: Evolution of the employment rate in rural areas, including a gender breakdown |
| --- | --- |

I.24

Contributing to jobs in rural areas: Evolution of the employment rate in rural areas, including a gender breakdown

| I.25 | Contributing to growth in rural areas: Evolution of gross domestic product (GDP) per capita in rural areas |
| --- | --- |

I.25

Contributing to growth in rural areas: Evolution of gross domestic product (GDP) per capita in rural areas

| I.26 | A fairer CAP: Distribution of CAP support |
| --- | --- |

I.26

A fairer CAP: Distribution of CAP support

| I.27 | Promoting rural inclusion: Evolution of poverty index in rural areas |
| --- | --- |

I.27

Promoting rural inclusion: Evolution of poverty index in rural areas

| R.37 | Growth and jobs in rural areas: New jobs supported in CAP projects |
| --- | --- |

R.37

Growth and jobs in rural areas: New jobs supported in CAP projects

| R.38 | LEADER coverage: Share of rural population covered by local development strategies |
| --- | --- |

R.38

LEADER coverage: Share of rural population covered by local development strategies

| R.39 | Developing the rural economy: Number of rural businesses, including bio-economy businesses, developed with CAP support |
| --- | --- |

R.39

Developing the rural economy: Number of rural businesses, including bio-economy businesses, developed with CAP support

| R.40 | Smart transition of the rural economy: Number of supported smart-village strategies |
| --- | --- |

R.40

Smart transition of the rural economy: Number of supported smart-village strategies

| R.41PR | Connecting rural Europe: Share of rural population benefitting from improved access to services and infrastructure through CAP support |
| --- | --- |

R.41PR

Connecting rural Europe: Share of rural population benefitting from improved access to services and infrastructure through CAP support

| R.42 | Promoting social inclusion: Number of persons covered by supported social inclusion projects |
| --- | --- |

R.42

Promoting social inclusion: Number of persons covered by supported social inclusion projects

To improve the response of Union agriculture to societal demands on food and health, including high-quality, safe and nutritious food produced in a sustainable way, to reduce food waste, as well as to improve animal welfare and to combat antimicrobial resistances

| I.28 | Limiting antimicrobial use in farmed animals: Sales/use of antimicrobials for food-producing animals |
| --- | --- |

I.28

Limiting antimicrobial use in farmed animals: Sales/use of antimicrobials for food-producing animals

| I.29 | Responding to consumer demand for quality food: Value of production under Union quality schemes and of organic production |
| --- | --- |

I.29

Responding to consumer demand for quality food: Value of production under Union quality schemes and of organic production

| R.43PR | Limiting antimicrobial use: Share of livestock units (LU) concerned by supported actions to limit the use of antimicrobials (prevention/reduction) |
| --- | --- |

R.43PR

Limiting antimicrobial use: Share of livestock units (LU) concerned by supported actions to limit the use of antimicrobials (prevention/reduction)

| R.44PR | Improving animal welfare: Share of livestock units (LU) covered by supported actions to improve animal welfare |
| --- | --- |

R.44PR

Improving animal welfare: Share of livestock units (LU) covered by supported actions to improve animal welfare

Annual performance clearance - OUTPUT

Types of intervention and their output indicators (4)

| Types of intervention | Output indicators (5) |
| --- | --- |
| Cooperation (Article 77) | O.1 | Number of European Innovation Partnership (EIP) operational group projects |

Types of intervention

Output indicators (5)

Cooperation (Article 77)

O.1

Number of European Innovation Partnership (EIP) operational group projects

Knowledge exchange and dissemination of information (Article 78)

| O.2 | Number of advice actions or units to provide innovation support for preparing or implementing European Innovation Partnership (EIP) operational group projects |
| --- | --- |

O.2

Number of advice actions or units to provide innovation support for preparing or implementing European Innovation Partnership (EIP) operational group projects

Horizontal indicator

| O.3MO | Number of CAP support beneficiaries |
| --- | --- |

O.3MO

Number of CAP support beneficiaries

Basic income support (Article 21)

| O.4 | Number of hectares benefitting from basic income support |
| --- | --- |

O.4

Number of hectares benefitting from basic income support

Payment for small farmers (Article 28)

| O.5 | Number of beneficiaries or hectares benefitting from payments for small farmers |
| --- | --- |

O.5

Number of beneficiaries or hectares benefitting from payments for small farmers

Complementary income support for young farmers (Article 30)

| O.6 | Number of hectares benefitting from complementary income support for young farmers |
| --- | --- |

O.6

Number of hectares benefitting from complementary income support for young farmers

Redistributive income support (Article 29)

| O.7 | Number of hectares benefitting from redistributive income support |
| --- | --- |

O.7

Number of hectares benefitting from redistributive income support

Eco-schemes (Article 31)

| O.8 | Number of hectares or of livestock units benefitting from eco-schemes |
| --- | --- |

O.8

Number of hectares or of livestock units benefitting from eco-schemes

Risk management tools (Article 76)

| O.9 | Number of units covered by supported CAP risk management tools |
| --- | --- |

O.9

Number of units covered by supported CAP risk management tools

Coupled income support (Article 32)

| O.10 | Number of hectares benefitting from coupled income support |
| --- | --- |

O.10

Number of hectares benefitting from coupled income support

| O.11 | Number of heads benefitting from coupled income support |
| --- | --- |

O.11

Number of heads benefitting from coupled income support

Natural or other area-specific constraints (Article 71)

| O.12 | Number of hectares benefitting from support for areas facing natural or other specific constraints, including a breakdown per type of area |
| --- | --- |

O.12

Number of hectares benefitting from support for areas facing natural or other specific constraints, including a breakdown per type of area

Area-specific disadvantages resulting from certain mandatory requirements (Article 72)

| O.13 | Number of hectares benefitting from support under Natura 2000 or Directive 2000/60/EC |
| --- | --- |

O.13

Number of hectares benefitting from support under Natura 2000 or Directive 2000/60/EC

Environmental, climate-related and other management commitments (Article 70)

| O.14 | Number of hectares (excluding forestry) or number of other units covered by environmental or climate-related commitments going beyond mandatory requirements |
| --- | --- |

O.14

Number of hectares (excluding forestry) or number of other units covered by environmental or climate-related commitments going beyond mandatory requirements

| O.15 | Number of hectares (forestry) or number of other units covered by environmental or climate-related commitments going beyond mandatory requirements |
| --- | --- |

O.15

Number of hectares (forestry) or number of other units covered by environmental or climate-related commitments going beyond mandatory requirements

| O.16 | Number of hectares or number of other units under maintenance commitments for afforestation and agroforestry |
| --- | --- |

O.16

Number of hectares or number of other units under maintenance commitments for afforestation and agroforestry

| O.17 | Number of hectares or number of other units benefitting from support for organic farming |
| --- | --- |

O.17

Number of hectares or number of other units benefitting from support for organic farming

| O.18 | Number of livestock units (LU) benefitting from support for animal welfare, health or increased biosecurity measures |
| --- | --- |

O.18

Number of livestock units (LU) benefitting from support for animal welfare, health or increased biosecurity measures

| O.19 | Number of operations or units supporting genetic resources |
| --- | --- |

O.19

Number of operations or units supporting genetic resources

Investments (Articles 73 and 74)

| O.20 | Number of supported on-farm productive investment operations or units |
| --- | --- |

O.20

Number of supported on-farm productive investment operations or units

| O.21 | Number of supported on-farm non-productive investment operations or units |
| --- | --- |

O.21

Number of supported on-farm non-productive investment operations or units

| O.22 | Number of supported infrastructure investment operations or units |
| --- | --- |

O.22

Number of supported infrastructure investment operations or units

| O.23 | Number of supported off-farm non-productive investment operations or units |
| --- | --- |

O.23

Number of supported off-farm non-productive investment operations or units

| O.24 | Number of supported off-farm productive investment operations or units |
| --- | --- |

O.24

Number of supported off-farm productive investment operations or units

Setting-up of young farmers and new farmers and rural business start-up (Article 75)

| O.25 | Number of young farmers receiving setting-up support |
| --- | --- |

O.25

Number of young farmers receiving setting-up support

| O.26 | Number of new farmers receiving setting-up support (other than young farmers reported under O.25) |
| --- | --- |

O.26

Number of new farmers receiving setting-up support (other than young farmers reported under O.25)

| O.27 | Number of rural businesses receiving support for start-up |
| --- | --- |

O.27

Number of rural businesses receiving support for start-up

Cooperation (Article 77)

| O.28 | Number of supported producer groups and producer organisations |
| --- | --- |

O.28

Number of supported producer groups and producer organisations

| O.29 | Number of beneficiaries receiving support to participate in official quality schemes |
| --- | --- |

O.29

Number of beneficiaries receiving support to participate in official quality schemes

| O.30 | Number of supported operations or units for generational renewal (excluding setting-up support) |
| --- | --- |

O.30

Number of supported operations or units for generational renewal (excluding setting-up support)

| O.31 | Number of supported local development strategies (LEADER) or preparatory actions |
| --- | --- |

O.31

Number of supported local development strategies (LEADER) or preparatory actions

| O.32 | Number of supported other cooperation operations or units (excluding EIP reported under O.1) |
| --- | --- |

O.32

Number of supported other cooperation operations or units (excluding EIP reported under O.1)

Knowledge exchange and dissemination of information (Article 78)

| O.33 | Number of supported training, advice and awareness actions or units |
| --- | --- |

O.33

Number of supported training, advice and awareness actions or units

Horizontal indicator

| O.34MO | Number of hectares under environmental practices (summary indicator on physical area covered by conditionality, eco-schemes, agri- and forest-environment-climate management commitments) |
| --- | --- |

O.34MO

Number of hectares under environmental practices (summary indicator on physical area covered by conditionality, eco-schemes, agri- and forest-environment-climate management commitments)

Types of intervention in certain sectors (Article 47)

| O.35 | Number of supported operational programmes |
| --- | --- |

O.35

Number of supported operational programmes

Types of intervention in the wine sector (Article 58)

| O.36 | Number of actions or units supported in the wine sector |
| --- | --- |

O.36

Number of actions or units supported in the wine sector

Types of intervention in the apiculture sector (Article 55)

| O.37 | Number of actions or units for beekeeping preservation or improvement |
| --- | --- |

O.37

Number of actions or units for beekeeping preservation or improvement

CONTEXT INDICATORS

| | Indicator number | Context indicator |
| --- | --- | --- |
| Population | C.01 | Total population |
| C.02 | Population density |
| C.03 | Age structure of the population |
| Total area | C.04 | Total area |
| C.05 | Land cover |
| Labour market | C.06 | Employment rate in rural areas |
| C.07 | Unemployment rate in rural areas |
| C.08 | Employment (by sector, by type of region, by economic activity) |
| Economy | C.09 | GDP per capita |
| C.10 | Poverty rate |
| C.11 | Gross value added by sector, by type of region, in agriculture and for primary producers |
| Farms and farmers | C.12 | Agricultural holdings (farms) |
| C.13 | Farm labour force |
| C.14 | Age structure of farm managers |
| C.15 | Agricultural training of farm managers |
| C.16 | New farm managers and new young farm managers |
| Agricultural land | C.17 | Utilised agricultural area |
| C.18 | Irrigable land |
| C.19 | Farming in Natura 2000 areas |
| C.20 | Areas facing natural and other specific constraints |
| C.21 | Agricultural land covered with landscape features |
| C.22 | Crop diversity |
| Livestock | C.23 | Livestock units |
| C.24 | Livestock density |
| Agricultural and farm income | C.25 | Agricultural factor income |
| C.26 | Comparison of agricultural income with non-agricultural labour cost |
| C.27 | Farm income by type of farming, by region, by farm size, in areas facing natural and other specific constraints |
| C.28 | Gross fixed capital formation in agriculture |
| Agricultural productivity | C.29 | Total factor productivity in agriculture |
| C.30 | Labour productivity in agriculture, in forestry and in the food industry |
| Agricultural trade | C.31 | Agricultural imports and exports |
| Other gainful activities | C.32 | Tourism infrastructure |
| Farming practices | C.33 | Agricultural area under organic farming |
| C.34 | Farming intensity |
| C.35 | Value of production under Union quality schemes and of organic production |
| Biodiversity | C.36 | Farmland Bird Index |
| C.37 | Percentage of species and habitats of Community interest related to agriculture with stable or increasing trends |
| Water | C.38 | Water use in agriculture |
| C.39 | Water quality |
| Gross nutrient balance – nitrogen |
| Gross nutrient balance – phosphorus |
| Nitrates in ground water |
| Soil | C.40 | Soil organic carbon in agricultural land |
| C.41 | Soil erosion by water |
| Energy | C.42 | Sustainable production of renewable energy from agriculture and forestry |
| C.43 | Energy use in agriculture, forestry and food industry |
| Climate | C.44 | Greenhouse gas emissions from agriculture |
| C.45 | Agricultural sector resilience progress indicator |
| C.46 | Direct agricultural loss attributed to disasters |
| Air | C.47 | Ammonia emissions from agriculture |
| Health | C.48 | Sales/use of antimicrobials for food-producing animals |
| C.49 | Risk, use and impacts of pesticides |

Indicator number

Context indicator

Population

C.01

Total population

C.02

Population density

C.03

Age structure of the population

Total area

C.04

Total area

C.05

Land cover

Labour market

C.06

Employment rate in rural areas

C.07

Unemployment rate in rural areas

C.08

Employment (by sector, by type of region, by economic activity)

Economy

C.09

GDP per capita

C.10

Poverty rate

C.11

Gross value added by sector, by type of region, in agriculture and for primary producers

Farms and farmers

C.12

Agricultural holdings (farms)

C.13

Farm labour force

C.14

Age structure of farm managers

C.15

Agricultural training of farm managers

C.16

New farm managers and new young farm managers

Agricultural land

C.17

Utilised agricultural area

C.18

Irrigable land

C.19

Farming in Natura 2000 areas

C.20

Areas facing natural and other specific constraints

C.21

Agricultural land covered with landscape features

C.22

Crop diversity

Livestock

C.23

Livestock units

C.24

Livestock density

Agricultural and farm income

C.25

Agricultural factor income

C.26

Comparison of agricultural income with non-agricultural labour cost

C.27

Farm income by type of farming, by region, by farm size, in areas facing natural and other specific constraints

C.28

Gross fixed capital formation in agriculture

Agricultural productivity

C.29

Total factor productivity in agriculture

C.30

Labour productivity in agriculture, in forestry and in the food industry

Agricultural trade

C.31

Agricultural imports and exports

Other gainful activities

C.32

Tourism infrastructure

Farming practices

C.33

Agricultural area under organic farming

C.34

Farming intensity

C.35

Value of production under Union quality schemes and of organic production

Biodiversity

C.36

Farmland Bird Index

C.37

Percentage of species and habitats of Community interest related to agriculture with stable or increasing trends

Water

C.38

Water use in agriculture

C.39

Water quality

Gross nutrient balance – nitrogen

Gross nutrient balance – phosphorus

Nitrates in ground water

Soil

C.40

Soil organic carbon in agricultural land

C.41

Soil erosion by water

Energy

C.42

Sustainable production of renewable energy from agriculture and forestry

C.43

Energy use in agriculture, forestry and food industry

Climate

C.44

Greenhouse gas emissions from agriculture

C.45

Agricultural sector resilience progress indicator

C.46

Direct agricultural loss attributed to disasters

Air

C.47

Ammonia emissions from agriculture

Health

C.48

Sales/use of antimicrobials for food-producing animals

C.49

Risk, use and impacts of pesticides

---

(1)  Most of impact indicators are already collected via other channels (European statistics, Joint Research Centre, European Environment Agency, etc.) and used in the framework of other Union legislation or the Sustainable Development Goals. The data collection frequency is not always annual and there might be two or three years delay.

(2)  Proxies for results. Data notified annually by Member States to monitor the progress towards the targets they established in their CAP Strategic Plans. Result indicators which are mandatory for performance review when used by Member States in accordance with Article 109(1), point (a), are marked with PR. Member States may use for performance review any other relevant result indicator laid down in this Annex in addition to those marked with PR.

(3)  The assessment of the trends for pollinators shall be performed by using relevant Union measures for pollinator indicators, in particular by a pollinator indicator and other measures adopted through the governance framework of the EU Biodiversity Strategy for 2030 (Commission communication of 20 May 2020) on the basis of the EU Pollinators Initiative (Commission communication of 1 June 2018).

(4)  Data notified annually for their declared expenditure.

(5)  Output indicators used for monitoring only are marked with MO.

---

ANNEX II

WTO DOMESTIC SUPPORT PURSUANT TO ARTICLE 10

| Type of intervention | Reference in this Regulation | Paragraph of Annex 2 to the WTO Agreement on Agriculture (‘Green Box’) |
| --- | --- | --- |
| Basic income support | Title III, Chapter II, Section 2, Subsection 2 | 5 | (if implementation is not based on payment entitlements) |

Type of intervention

Reference in this Regulation

Paragraph of Annex 2 to the WTO Agreement on Agriculture (‘Green Box’)

Basic income support

Title III, Chapter II, Section 2, Subsection 2

5

(if implementation is not based on payment entitlements)

| 6 | (if implementation is based on payment entitlements) |
| --- | --- |

6

(if implementation is based on payment entitlements)

Redistributive income support

Article 29

| 5 | (if implementation of the related basic income support is not based on payment entitlements) |
| --- | --- |

5

(if implementation of the related basic income support is not based on payment entitlements)

| 6 | (if implementation of the related basic income support is based on payment entitlements) |
| --- | --- |

6

(if implementation of the related basic income support is based on payment entitlements)

Complementary income support for young farmers

Article 30

| 5 | (if implementation of the related basic income support is not based on payment entitlements) |
| --- | --- |

5

(if implementation of the related basic income support is not based on payment entitlements)

| 6 | (if implementation of the related basic income support is based on payment entitlements) |
| --- | --- |

6

(if implementation of the related basic income support is based on payment entitlements)

Schemes for the climate, the environment and animal welfare (eco-schemes)

Article 31(7), first subparagraph, point (a)

| 5 | (if implementation of the related basic income support is not based on payment entitlements) |
| --- | --- |

5

(if implementation of the related basic income support is not based on payment entitlements)

| 6 | (if implementation of the related basic income support is based on payment entitlements) |
| --- | --- |

6

(if implementation of the related basic income support is based on payment entitlements)

Schemes for the climate, the environment and animal welfare (eco-schemes)

Article 31(7), first subparagraph, point (b)

12

Fruit and vegetables, hops, olive oil table olives and other sectors referred to in Article 42, point (f) – investments in tangible and intangible assets, research and experimental and innovative production methods and other actions, in areas such as:

Article 47(1), point (a)

2, 11 or 12

| — | soil conservation, including the enhancement of soil carbon and soil structure, and the reduction of contaminants |
| --- | --- |

—

soil conservation, including the enhancement of soil carbon and soil structure, and the reduction of contaminants

Article 47(1), point (a)(i)

12

| — | improvement of the use of and sound management of water, including water saving, water conservation and drainage |
| --- | --- |

—

improvement of the use of and sound management of water, including water saving, water conservation and drainage

Article 47(1), point (a)(ii)

12

| — | preventing damage caused by adverse climatic events and promoting the development and use of varieties, breeds and management practices adapted to changing climate conditions |
| --- | --- |

—

preventing damage caused by adverse climatic events and promoting the development and use of varieties, breeds and management practices adapted to changing climate conditions

Article 47(1), point (a)(iii)

12

| — | increasing energy saving, energy efficiency and the use of renewable energy |
| --- | --- |

—

increasing energy saving, energy efficiency and the use of renewable energy

Article 47(1), point (a)(iv)

11 or 12

| — | ecological packaging, only in the field of research and experimental production |
| --- | --- |

—

ecological packaging, only in the field of research and experimental production

Article 47(1), point (a)(v)

2

| — | biosecurity, animal health and welfare |
| --- | --- |

—

biosecurity, animal health and welfare

Article 47(1), point (a)(vi)

12

| — | reducing emissions and waste, improving the use of by-products, including their reuse and valorisation, and the management of waste |
| --- | --- |

—

reducing emissions and waste, improving the use of by-products, including their reuse and valorisation, and the management of waste

Article 47(1), point (a)(vii)

11 or 12

| — | improving resilience against pests and reducing risks and impacts of pesticide use, including implementing Integrated Pest Management techniques |
| --- | --- |

—

improving resilience against pests and reducing risks and impacts of pesticide use, including implementing Integrated Pest Management techniques

Article 47(1), point (a)(viii)

2, 11 or 12

| — | improving resilience against animal disease and reducing the use of veterinary medicines, including antibiotics |
| --- | --- |

—

improving resilience against animal disease and reducing the use of veterinary medicines, including antibiotics

Article 47(1), point (a)(ix)

2

| — | creating and maintaining habitats favourable to biodiversity |
| --- | --- |

—

creating and maintaining habitats favourable to biodiversity

Article 47(1), point (a)(x)

12

| — | improving product quality |
| --- | --- |

—

improving product quality

Article 47(1), point (a)(xi)

2

| — | improving genetic resources |
| --- | --- |

—

improving genetic resources

Article 47(1), point (a) (xii)

2

| — | improving the conditions of employment and ensuring compliance with employer obligations as well as occupational health and safety requirements in accordance with Directives 89/391/EEC, 2009/104/EC and (EU) 2019/1152 |
| --- | --- |

—

improving the conditions of employment and ensuring compliance with employer obligations as well as occupational health and safety requirements in accordance with Directives 89/391/EEC, 2009/104/EC and (EU) 2019/1152

Article 47(1), point (a)(xiii)

2

Fruit and vegetables, hops, olive oil, table olives and other sectors referred to in Article 42, point (f) – advisory services and technical assistance

Article 47(1), point (b)

2

Fruit and vegetables, hops, olive oil, table olives and other sectors referred to in Article 42, point (f) – training and exchange of best practices

Article 47(1), point (c)

2

Fruit and vegetables, hops, olive oil, table olives and other sectors referred to in Article 42, point (f) – organic or integrated production

Article 47(1), point (d)

12

Fruit and vegetables, hops, olive oil, table olives and other sectors referred to in Article 42, point (f) – actions to increase the sustainability and efficiency of transport and storage

Article 47(1), point (e)

11, 12 or 2

Fruit and vegetables, hops, olive oil, table olives and other sectors referred to in Article 42, point (f) – promotion, communication and marketing

Article 47(1), point (f)

2

Fruit and vegetables, hops, olive oil, table olives and other sectors referred to in Article 42, point (f) – quality schemes

Article 47(1), point (g)

2

Fruit and vegetables, hops, olive oil, table olives and other sectors referred to in Article 42, point (f) – traceability and certification systems

Article 47(1), point (h)

2

Fruit and vegetables, hops, olive oil, table olives and other sectors referred to in Article 42, point (f) – climate change adaptation and mitigation

Article 47(1), point (i)

11, 2 or 12

Fruit and vegetables, hops, olive oil, table olives and other sectors referred to in Article 42, point (f) - mutual funds

Article 47(2), point (a)

7 or 2

Fruit and vegetables, hops, olive oil, table olives and other sectors referred to in Article 42, point (f) - investments in tangible and intangible assets

Article 47(2), point (b)

11 or 2

Fruit and vegetables, hops, olive oil, table olives and other sectors referred to in Article 42, point (f) - orchard or olive groves replanting

Article 47(2), point (d)

8

Fruit and vegetables, hops, olive oil, table olives and other sectors referred to in Article 42, point (f) - restocking with livestock for health reasons or because of losses resulting from natural disasters

Article 47(2), point (e)

8

Fruit and vegetables, hops, olive oil, table olives and other sectors referred to in Article 42, point (f) - coaching

Article 47(2), point (j)

2

Fruit and vegetables, hops, olive oil, table olives and other sectors referred to in Article 42, point (f) - implementation and management of third-country phytosanitary requirements

Article 47(2), point (k)

2

Fruits and vegetables, hops, olive oil, table olives and other sectors referred to in Article 42, point (f) – communication actions

Article 47(2), point (l)

2

Apiculture – advisory services, technical assistance, training, information and exchange of best practices

Article 55(1), point (a)

2

Apiculture – investment in tangible and intangible assets, as well as other actions, including for combatting beehive invaders and diseases

Article 55(1), point (b)(i)

11 or 12 or 2

Apiculture – investment in tangible and intangible assets, as well as other actions, including for preventing damage caused by adverse climatic conditions, development and use of management practices

Article 55(1), point (b)(ii)

11 or 12 or 2

Apiculture – support laboratories

Article 55(1), point (c)

2

Apiculture – research programmes

Article 55(1), point (e)

2

Apiculture – promotion, communication and marketing

Article 55(1), point (f)

2

Apiculture – enhancing product quality

Article 55(1), point (g)

2

Wine – restructuring and conversion

Article 58(1), first subaragraph, point (a)

8, 11 or 12

Wine – investments in tangible and intangible assets

Article 58(1), first subaragraph, point (b)

11

Wine – tangible and intangible investments in innovation

Article 58(1), first subaragraph, point (e)

11

Wine – advisory services

Article 58(1), first subaragraph, point (f)

2

Wine – information actions

Article 58(1), first subaragraph, point (h)

2

Wine – promotion of wine tourism

Article 58(1), first subaragraph, point (i)

2

Wine – improvement of market knowledge

Article 58(1), first subaragraph, point (j)

2

Wine – promotion and communication

Article 58(1), first subaragraph, point (k)

2

Wine – administrative costs of mutual funds

Article 58(1), first subaragraph, point (l)

2

Wine – investments to enhance sustainability

Article 58(1), first subaragraph, point (m)

11 or 12 or 2

Environmental, climate-related and other management commitments

Article 70

12

Natural or other area-specific constraints

Article 71

13

Area-specific disadvantages resulting from certain mandatory requirements

Article 72

12

Investments

Article 73

11 or 8

Investments in irrigation

Article 74

11

Cooperation

Article 77

2

Knowledge exchange and dissemination of information

Article 78

2

---

ANNEX III

RULES ON CONDITIONALITY PURSUANT TO ARTICLE 12

SMR: Statutory management requirement

GAEC: Standard for good agricultural and environmental condition of land

| Areas | Main issue | Requirements and standards | Main objective of the standard |
| --- | --- | --- | --- |
| Climate and environment | Climate change
  (mitigation of and adaptation to) | GAEC 1 | Maintenance of permanent grassland based on a ratio of permanent grassland in relation to agricultural area at national, regional, subregional, group-of-holdings or holding level in comparison to the reference year 2018
  Maximum decrease of 5 % compared to the reference year | General safeguard against conversion to other agricultural uses to preserve carbon stock |
| GAEC 2 | Protection of wetland and peatland (1) | Protection of carbon-rich soils |
| GAEC 3 | Ban on burning arable stubble, except for plant health reasons | Maintenance of soil organic matter |
| | Water | SMR 1 | Directive 2000/60/EC of 23 October 2000 of the European Parliament and of the Council establishing a framework for Community action in the field of water policy (OJ L 327, 22.12.2000, p. 1):
  Article 11(3), point (e), and point (h), as regards mandatory requirements to control diffuse sources of pollution by phosphates | |
| | | SMR 2 | Council Directive 91/676/EEC of 12 December 1991 concerning the protection of waters against pollution caused by nitrates from agricultural sources (OJ L 375, 31.12.1991, p. 1):
  Articles 4 and 5 | |
| GAEC 4 | Establishment of buffer strips along water courses (2) | Protection of river courses against pollution and run-off |
| | Soil
  (protection and quality) | GAEC 5 | Tillage management, reducing the risk of soil degradation and erosion, including consideration of the slope gradient | Minimum land management reflecting site specific conditions to limit erosion |
| GAEC 6 | Minimum soil cover to avoid bare soil in periods that are most sensitive (3) | Protection of soils in periods that are most sensitive |
| GAEC 7 | Crop rotation in arable land, except for crops growing under water (4) | Preserving the soil potential |
| | Biodiversity and landscape
  (protection and quality) | SMR 3 | Directive 2009/147/EC of the European Parliament and of the Council of 30 November 2009 on the conservation of wild birds (OJ L 20, 26.1.2010, p. 7):
  Article 3(1), Article 3(2), point (b), Article 4(1), (2) and (4) | |
| SMR 4 | Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild flora and fauna (OJ L 206, 22.7.1992, p. 7):
  Article 6(1) and (2) | |
| | | GAEC 8 | — | Minimum share of agricultural area devoted to non-productive areas or features (5) |

Areas

Main issue

Requirements and standards

Main objective of the standard

Climate and environment

Climate change

(mitigation of and adaptation to)

GAEC 1

Maintenance of permanent grassland based on a ratio of permanent grassland in relation to agricultural area at national, regional, subregional, group-of-holdings or holding level in comparison to the reference year 2018

Maximum decrease of 5 % compared to the reference year

General safeguard against conversion to other agricultural uses to preserve carbon stock

GAEC 2

Protection of wetland and peatland (1)

Protection of carbon-rich soils

GAEC 3

Ban on burning arable stubble, except for plant health reasons

Maintenance of soil organic matter

Water

SMR 1

Directive 2000/60/EC of 23 October 2000 of the European Parliament and of the Council establishing a framework for Community action in the field of water policy (OJ L 327, 22.12.2000, p. 1):

Article 11(3), point (e), and point (h), as regards mandatory requirements to control diffuse sources of pollution by phosphates

SMR 2

Council Directive 91/676/EEC of 12 December 1991 concerning the protection of waters against pollution caused by nitrates from agricultural sources (OJ L 375, 31.12.1991, p. 1):

Articles 4 and 5

GAEC 4

Establishment of buffer strips along water courses (2)

Protection of river courses against pollution and run-off

Soil

(protection and quality)

GAEC 5

Tillage management, reducing the risk of soil degradation and erosion, including consideration of the slope gradient

Minimum land management reflecting site specific conditions to limit erosion

GAEC 6

Minimum soil cover to avoid bare soil in periods that are most sensitive (3)

Protection of soils in periods that are most sensitive

GAEC 7

Crop rotation in arable land, except for crops growing under water (4)

Preserving the soil potential

Biodiversity and landscape

(protection and quality)

SMR 3

Directive 2009/147/EC of the European Parliament and of the Council of 30 November 2009 on the conservation of wild birds (OJ L 20, 26.1.2010, p. 7):

Article 3(1), Article 3(2), point (b), Article 4(1), (2) and (4)

SMR 4

Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild flora and fauna (OJ L 206, 22.7.1992, p. 7):

Article 6(1) and (2)

GAEC 8

—

Minimum share of agricultural area devoted to non-productive areas or features (5)

| — | Minimum share of at least 4 % of arable land at farm level devoted to non-productive areas and features, including land lying fallow. |
| --- | --- |

—

Minimum share of at least 4 % of arable land at farm level devoted to non-productive areas and features, including land lying fallow.

| — | Where a farmer commits to devote at least 7 % of his/her arable land to non-productive areas or features, including land lying fallow, under an enhanced eco-scheme in accordance with Article 31(6), the share to be attributed to compliance with this GAEC standard shall be limited to 3 %. |
| --- | --- |

—

Where a farmer commits to devote at least 7 % of his/her arable land to non-productive areas or features, including land lying fallow, under an enhanced eco-scheme in accordance with Article 31(6), the share to be attributed to compliance with this GAEC standard shall be limited to 3 %.

| — | Minimum share of at least 7 % of arable land at farm level if this includes also catch crops or nitrogen fixing crops, cultivated without the use of plant protection products, of which 3 % shall be land lying fallow or non-productive features. Member States should use the weighting factor of 0,3 for catch crops. |
| --- | --- |

—

Minimum share of at least 7 % of arable land at farm level if this includes also catch crops or nitrogen fixing crops, cultivated without the use of plant protection products, of which 3 % shall be land lying fallow or non-productive features. Member States should use the weighting factor of 0,3 for catch crops.

| — | Retention of landscape features |
| --- | --- |

—

Retention of landscape features

| — | Ban on cutting hedges and trees during the bird breeding and rearing season |
| --- | --- |

—

Ban on cutting hedges and trees during the bird breeding and rearing season

| — | As an option, measures for avoiding invasive plant species |
| --- | --- |

—

As an option, measures for avoiding invasive plant species

Maintenance of non-productive features and area to improve on-farm biodiversity

GAEC 9

Ban on converting or ploughing permanent grassland designated as environmentally-sensitive permanent grasslands in Natura 2000 sites

Protection of habitats and species

Public health, and plant health

Food safety

SMR 5

Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 laying down the general principles and requirements of food law, establishing the European Food Safety Authority and laying down procedures in matters of food safety (OJ L 31, 1.2.2002, p. 1):

Articles 14 and 15, Article 17(1) (6) and Articles 18, 19 and 20

SMR 6

Council Directive 96/22/EC of 29 April 1996 concerning the prohibition on the use in stockfarming of certain substances having a hormonal or thyrostatic action and beta-agonists, and repealing Directives 81/602/EEC, 88/146/EEC and 88/299/EEC (OJ L 125, 23.5.1996, p. 3):

Article 3, points (a), (b), (d) and (e), and Articles 4, 5 and 7

Plant protection products

SMR 7

Regulation (EC) No 1107/2009 of the European Parliament and of the Council of 21 October 2009 concerning the placing of plant protection products on the market and repealing Council Directives 79/117/EEC and 91/414/EEC (OJ L 309, 24.11.2009, p. 1):

Article 55, first and second sentence

SMR 8

Directive 2009/128/EC of the European Parliament and of the Council of 21 October 2009 establishing a framework for Community action to achieve the sustainable use of pesticides (OJ L 309, 24.11.2009, p. 71):

Article 5(2) and Article 8(1) to (5) Article 12 with regard to restrictions on the use of pesticides in protected areas defined on the basis of Directive 2000/60/EC and Natura 2000 legislation

Article 13(1) and (3) on handling and storage of pesticides and disposal of remnants

Animal welfare

Animal welfare

SMR 9

Council Directive 2008/119/EC of 18 December 2008 laying down minimum standards for the protection of calves (OJ L 10, 15.1.2009, p. 7):

Articles 3 and 4

SMR 10

Council Directive 2008/120/EC of 18 December 2008 laying down minimum standards for the protection of pigs (OJ L 47, 18.2.2009, p. 5):

Articles 3 and 4

SMR 11

Council Directive 98/58/EC of 20 July 1998 concerning the protection of animals kept for farming purposes (OJ L 221, 8.8.1998, p. 23):

Article 4

---

(1)  Member States may provide in their CAP Strategic Plans that this GAEC will only be applicable as from claim year 2024 or 2025. In such cases, Member States shall demonstrate that the delay is necessary for the establishment of the management system in accordance with a detailed planning.

Member States, when establishing GAEC standard 2, shall ensure that on the land concerned an agricultural activity suitable for qualifying the land as agricultural area may be maintained.

(2)  The buffer strips along water courses under this GAEC standard shall, as a general rule and in compliance with Union law, respect a minimum width of 3 meters without using pesticides and fertilisers.

In areas with significant dewatering and irrigation ditches, Member States may adjust, if duly justified for those areas, the minimum width in accordance with specific local circumstances.

(3)  In duly justified cases, Member States may adapt in the regions concerned the minimum standards to take into account the short vegetation period resulting from the length and severity of the winter period.

(4)  Rotation shall consist in a change of crop at least once a year at land parcel level (except in case of multiannual crops, grasses and other herbaceous forage, and land lying fallow), including the appropriately managed secondary crops.

On the basis of diversity of farming methods and agro-climatic conditions, Member States may authorise in the regions concerned other practices of enhanced crop rotation with leguminous crops or crop diversification which aim at improving and preserving the soil potential in line with the objectives of this GAEC standard.

Member States may exempt from the obligation under this standard holdings:

| (a) | where more than 75 % of the arable land is used for the production of grasses or other herbaceous forage, is land lying fallow, is used for cultivation of leguminous crops, or is subject to a combination of those uses; |
| --- | --- |

(a)

where more than 75 % of the arable land is used for the production of grasses or other herbaceous forage, is land lying fallow, is used for cultivation of leguminous crops, or is subject to a combination of those uses;

| (b) | where more than 75 % of the eligible agricultural area is permanent grassland, is used for the production of grasses or other herbaceous forage or for the cultivation of crops under water either for a significant part of the year or for a significant part of the crop cycle, or is subject to a combination of those uses; or |
| --- | --- |

(b)

where more than 75 % of the eligible agricultural area is permanent grassland, is used for the production of grasses or other herbaceous forage or for the cultivation of crops under water either for a significant part of the year or for a significant part of the crop cycle, or is subject to a combination of those uses; or

| (c) | with a size of arable land up to 10 hectares.
  Member States may introduce a maximum limit of area covered with a single crop to prevent large monocultures.
  Farmers certified in accordance with Regulation (EU) 2018/848 shall be deemed to comply with this GAEC standard. |
| --- | --- |

(c)

with a size of arable land up to 10 hectares.

Member States may introduce a maximum limit of area covered with a single crop to prevent large monocultures.

Farmers certified in accordance with Regulation (EU) 2018/848 shall be deemed to comply with this GAEC standard.

(5)  ,Member States may exempt from the obligation under this indent holdings:

| (a) | where more than 75 % of the arable land is used for the production of grasses or other herbaceous forage, is land lying fallow, is used for cultivation of leguminous crops, or is subject to a combination of those uses; |
| --- | --- |

(a)

where more than 75 % of the arable land is used for the production of grasses or other herbaceous forage, is land lying fallow, is used for cultivation of leguminous crops, or is subject to a combination of those uses;

| (b) | where more than 75 % of the eligible agricultural area is permanent grassland, is used for the production of grasses or other herbaceous forage or for the cultivation of crops under water either for a significant part of the year or for a significant part of the crop cycle, or is subject to a combination of those uses; or |
| --- | --- |

(b)

where more than 75 % of the eligible agricultural area is permanent grassland, is used for the production of grasses or other herbaceous forage or for the cultivation of crops under water either for a significant part of the year or for a significant part of the crop cycle, or is subject to a combination of those uses; or

| (c) | with a size of arable land up to 10 hectares.
  Member States with more than 50 % of their total land surface area covered by forest may exempt from the obligation under this indent holdings located in areas designated by those Member States as areas facing natural constraints in accordance with Article 32(1), point (a) or (b), of Regulation (EU) No 1305/2013, provided that more than 50 % of the land surface area of the unit referred to in the second sentence of this paragraph is covered by forest and the ratio of forest land to agricultural land is higher than 3:1. The area covered by forest and the ratio of forest land to agricultural land shall be assessed on an area level equivalent to the LAU2 level or on the level of another clearly delineated unit which covers a single clear contiguous geographical area having similar agricultural conditions. |
| --- | --- |

(c)

with a size of arable land up to 10 hectares.

Member States with more than 50 % of their total land surface area covered by forest may exempt from the obligation under this indent holdings located in areas designated by those Member States as areas facing natural constraints in accordance with Article 32(1), point (a) or (b), of Regulation (EU) No 1305/2013, provided that more than 50 % of the land surface area of the unit referred to in the second sentence of this paragraph is covered by forest and the ratio of forest land to agricultural land is higher than 3:1. The area covered by forest and the ratio of forest land to agricultural land shall be assessed on an area level equivalent to the LAU2 level or on the level of another clearly delineated unit which covers a single clear contiguous geographical area having similar agricultural conditions.

(6)  As implemented in particular by:

| — | Article 14 of Regulation (EC) No 470/2009 and the Annex to Regulation (EC) No 37/2010, |
| --- | --- |

—

Article 14 of Regulation (EC) No 470/2009 and the Annex to Regulation (EC) No 37/2010,

| — | Regulation (EC) No 852/2004: Article 4(1) and Annex I part A (II 4 (g, h, j), 5 (f, h), 6; III 8 (a, b, d, e), 9 (a, c)), |
| --- | --- |

—

Regulation (EC) No 852/2004: Article 4(1) and Annex I part A (II 4 (g, h, j), 5 (f, h), 6; III 8 (a, b, d, e), 9 (a, c)),

| — | Regulation (EC) No 853/2004: Article 3(1), Annex III Section IX Chapter 1 (I-1 b, c, d, e; I-2 a (i, ii, iii), b (i, ii), c; I-3; I-4; I-5; II-A 1, 2, 3, 4; II-B 1(a, d), 2, 4 (a, b)), Annex III Section X Chapter 1(1), |
| --- | --- |

—

Regulation (EC) No 853/2004: Article 3(1), Annex III Section IX Chapter 1 (I-1 b, c, d, e; I-2 a (i, ii, iii), b (i, ii), c; I-3; I-4; I-5; II-A 1, 2, 3, 4; II-B 1(a, d), 2, 4 (a, b)), Annex III Section X Chapter 1(1),

| — | Regulation (EC) No 183/2005: Article 5(1), (5) and (6), Annex I, part A (I-4 e, g; II-2 a, b, e), and Annex III (under the heading ‘FEEDING’, point 1 entitled ‘Storage’, first and last sentences, and point 2 entitled ‘Distribution’, third sentence), and |
| --- | --- |

—

Regulation (EC) No 183/2005: Article 5(1), (5) and (6), Annex I, part A (I-4 e, g; II-2 a, b, e), and Annex III (under the heading ‘FEEDING’, point 1 entitled ‘Storage’, first and last sentences, and point 2 entitled ‘Distribution’, third sentence), and

| — | Regulation (EC) No 396/2005: Article 18. |
| --- | --- |

—

Regulation (EC) No 396/2005: Article 18.

---

ANNEX IV

RULES ON SOCIAL CONDITIONALITY PURSUANT TO ARTICLE 14

| Areas | Applicable legislation | Relevant provisions | Requirements |
| --- | --- | --- | --- |
| Employment | Transparent and predictable working conditions
  Directive 2019/1152 | Article 3 | Employment conditions to be provided in writing (‘employment contract’) |
| Article 4 | Ensure that agricultural employment is subject to an employment contract |
| Article 5 | Employment contract to be provided within first seven days of working |
| Article 6 | Changes to the employment relationship to be provided in documentary form. |
| Article 8 | Probationary period |
| Article 10 | Conditions regarding minimum predictability of work |
| Article 13 | Mandatory training |
| Health and safety | Measures to encourage improvements in safety and health of workers
  Directive 89/391/EEC | Article 5 | General provision laying down duty of employer to ensure safety and health of workers |
| Article 6 | General obligation on employers to take measures necessary for safety and health protection, including prevention of risks and provision of information and training |
| Article 7 | Protective and preventive services: worker(s) to be designated for health and safety activities or competent external service to be engaged |
| Article 8 | Employer to take measures for first aid, fire-fighting and evacuation of workers |
| Article 9 | Obligations on employers regarding assessment of risks, protective measures and equipment, recording and reporting of occupational accidents |
| Article 10 | Provision of information to workers on safety and health risks and protective and preventive measures |
| Article 11 | Consultation and participation of workers in discussions on all questions relating to safety and health at work |
| Article 12 | Employer to ensure that workers receive adequate safety and health training |
| | Minimum safety and health requirements for use of work equipment by workers
  Directive 2009/104/EC | Article 3 | General obligations to ensure that work equipment is suitable for work to be carried out by workers without impairment of safety or health |
| Article 4 | Rules concerning work equipment: must comply with the Directive and established minimum requirements and be adequately maintained |
| Article 5 | Inspection of work equipment – equipment to be inspected after instalment and periodic inspections by competent persons |
| Article 6 | Work equipment involving specific risks to be restricted to persons tasked with using it and all repairs, modifications, maintenance to be performed by designated workers |
| Article 7 | Ergonomics and occupational health |
| Article 8 | Workers to receive adequate information and, where appropriate, written instructions on use of work equipment |
| Article 9 | Workers to receive adequate training |

Areas

Applicable legislation

Relevant provisions

Requirements

Employment

Transparent and predictable working conditions

Directive 2019/1152

Article 3

Employment conditions to be provided in writing (‘employment contract’)

Article 4

Ensure that agricultural employment is subject to an employment contract

Article 5

Employment contract to be provided within first seven days of working

Article 6

Changes to the employment relationship to be provided in documentary form.

Article 8

Probationary period

Article 10

Conditions regarding minimum predictability of work

Article 13

Mandatory training

Health and safety

Measures to encourage improvements in safety and health of workers

Directive 89/391/EEC

Article 5

General provision laying down duty of employer to ensure safety and health of workers

Article 6

General obligation on employers to take measures necessary for safety and health protection, including prevention of risks and provision of information and training

Article 7

Protective and preventive services: worker(s) to be designated for health and safety activities or competent external service to be engaged

Article 8

Employer to take measures for first aid, fire-fighting and evacuation of workers

Article 9

Obligations on employers regarding assessment of risks, protective measures and equipment, recording and reporting of occupational accidents

Article 10

Provision of information to workers on safety and health risks and protective and preventive measures

Article 11

Consultation and participation of workers in discussions on all questions relating to safety and health at work

Article 12

Employer to ensure that workers receive adequate safety and health training

Minimum safety and health requirements for use of work equipment by workers

Directive 2009/104/EC

Article 3

General obligations to ensure that work equipment is suitable for work to be carried out by workers without impairment of safety or health

Article 4

Rules concerning work equipment: must comply with the Directive and established minimum requirements and be adequately maintained

Article 5

Inspection of work equipment – equipment to be inspected after instalment and periodic inspections by competent persons

Article 6

Work equipment involving specific risks to be restricted to persons tasked with using it and all repairs, modifications, maintenance to be performed by designated workers

Article 7

Ergonomics and occupational health

Article 8

Workers to receive adequate information and, where appropriate, written instructions on use of work equipment

Article 9

Workers to receive adequate training

---

ANNEX V

MEMBER STATES’ ALLOCATIONS FOR DIRECT PAYMENTS REFERRED TO IN ARTICLE 87(1), FIRST SUBPARAGRAPH

| (current prices, in EUR) |
| --- |
| Calendar year | 2023 | 2024 | 2025 | 2026 | 2027 and subsequent years |
| Belgium | 494 925 924 | 494 925 924 | 494 925 924 | 494 925 924 | 494 925 924 |
| Bulgaria | 808 442 754 | 817 072 343 | 825 701 932 | 834 331 520 | 834 331 520 |
| Czechia | 854 947 297 | 854 947 297 | 854 947 297 | 854 947 297 | 854 947 297 |
| Denmark | 862 367 277 | 862 367 277 | 862 367 277 | 862 367 277 | 862 367 277 |
| Germany | 4 915 695 459 | 4 915 695 459 | 4 915 695 459 | 4 915 695 459 | 4 915 695 459 |
| Estonia | 196 436 567 | 199 297 294 | 202 158 021 | 205 018 748 | 205 018 748 |
| Ireland | 1 186 281 996 | 1 186 281 996 | 1 186 281 996 | 1 186 281 996 | 1 186 281 996 |
| Greece | 2 075 656 043 | 2 075 656 043 | 2 075 656 043 | 2 075 656 043 | 2 075 656 043 |
| Spain | 4 874 879 750 | 4 882 179 366 | 4 889 478 982 | 4 896 778 599 | 4 896 778 599 |
| France | 7 285 000 537 | 7 285 000 537 | 7 285 000 537 | 7 285 000 537 | 7 285 000 537 |
| Croatia | 374 770 237 | 374 770 237 | 374 770 237 | 374 770 237 | 374 770 237 |
| Italy | 3 628 529 155 | 3 628 529 155 | 3 628 529 155 | 3 628 529 155 | 3 628 529 155 |
| Cyprus | 47 647 540 | 47 647 540 | 47 647 540 | 47 647 540 | 47 647 540 |
| Latvia | 349 226 285 | 354 312 105 | 359 397 925 | 364 483 744 | 364 483 744 |
| Lithuania | 587 064 372 | 595 613 853 | 604 163 335 | 612 712 816 | 612 712 816 |
| Luxembourg | 32 747 827 | 32 747 827 | 32 747 827 | 32 747 827 | 32 747 827 |
| Hungary | 1 243 185 165 | 1 243 185 165 | 1 243 185 165 | 1 243 185 165 | 1 243 185 165 |
| Malta | 4 594 021 | 4 594 021 | 4 594 021 | 4 594 021 | 4 594 021 |
| Netherlands | 717 382 327 | 717 382 327 | 717 382 327 | 717 382 327 | 717 382 327 |
| Austria | 677 581 846 | 677 581 846 | 677 581 846 | 677 581 846 | 677 581 846 |
| Poland | 3 092 416 671 | 3 123 600 494 | 3 154 784 317 | 3 185 968 140 | 3 185 968 140 |
| Portugal | 613 619 128 | 622 403 166 | 631 187 204 | 639 971 242 | 639 971 242 |
| Romania | 1 946 921 018 | 1 974 479 078 | 2 002 037 137 | 2 029 595 196 | 2 029 595 196 |
| Slovenia | 131 530 052 | 131 530 052 | 131 530 052 | 131 530 052 | 131 530 052 |
| Slovakia | 400 894 402 | 405 754 516 | 410 614 629 | 415 474 743 | 415 474 743 |
| Finland | 519 350 246 | 521 168 786 | 522 987 325 | 524 805 865 | 524 805 865 |
| Sweden | 686 131 966 | 686 360 116 | 686 588 267 | 686 816 417 | 686 816 417 |

(current prices, in EUR)

Calendar year

2023

2024

2025

2026

2027 and subsequent years

Belgium

494 925 924

494 925 924

494 925 924

494 925 924

494 925 924

Bulgaria

808 442 754

817 072 343

825 701 932

834 331 520

834 331 520

Czechia

854 947 297

854 947 297

854 947 297

854 947 297

854 947 297

Denmark

862 367 277

862 367 277

862 367 277

862 367 277

862 367 277

Germany

4 915 695 459

4 915 695 459

4 915 695 459

4 915 695 459

4 915 695 459

Estonia

196 436 567

199 297 294

202 158 021

205 018 748

205 018 748

Ireland

1 186 281 996

1 186 281 996

1 186 281 996

1 186 281 996

1 186 281 996

Greece

2 075 656 043

2 075 656 043

2 075 656 043

2 075 656 043

2 075 656 043

Spain

4 874 879 750

4 882 179 366

4 889 478 982

4 896 778 599

4 896 778 599

France

7 285 000 537

7 285 000 537

7 285 000 537

7 285 000 537

7 285 000 537

Croatia

374 770 237

374 770 237

374 770 237

374 770 237

374 770 237

Italy

3 628 529 155

3 628 529 155

3 628 529 155

3 628 529 155

3 628 529 155

Cyprus

47 647 540

47 647 540

47 647 540

47 647 540

47 647 540

Latvia

349 226 285

354 312 105

359 397 925

364 483 744

364 483 744

Lithuania

587 064 372

595 613 853

604 163 335

612 712 816

612 712 816

Luxembourg

32 747 827

32 747 827

32 747 827

32 747 827

32 747 827

Hungary

1 243 185 165

1 243 185 165

1 243 185 165

1 243 185 165

1 243 185 165

Malta

4 594 021

4 594 021

4 594 021

4 594 021

4 594 021

Netherlands

717 382 327

717 382 327

717 382 327

717 382 327

717 382 327

Austria

677 581 846

677 581 846

677 581 846

677 581 846

677 581 846

Poland

3 092 416 671

3 123 600 494

3 154 784 317

3 185 968 140

3 185 968 140

Portugal

613 619 128

622 403 166

631 187 204

639 971 242

639 971 242

Romania

1 946 921 018

1 974 479 078

2 002 037 137

2 029 595 196

2 029 595 196

Slovenia

131 530 052

131 530 052

131 530 052

131 530 052

131 530 052

Slovakia

400 894 402

405 754 516

410 614 629

415 474 743

415 474 743

Finland

519 350 246

521 168 786

522 987 325

524 805 865

524 805 865

Sweden

686 131 966

686 360 116

686 588 267

686 816 417

686 816 417

---

ANNEX VI

LIST OF PRODUCTS REFERRED TO IN ARTICLE 42, POINT (f)

| CN code | Description |
| --- | --- |
| ex 0101 | Live horses, asses, mules and hinnies: |
| | – Horses |
| 0101 21 00 | – – Pure-bred breeding animals (1) |
| 0101 29 | – – Other: |
| 0101 29 10 | – – – For slaughter |
| 0101 29 90 | – – – Other |
| 0101 30 00 | – Asses |
| 0101 90 00 | – Other |
| ex 0103 | Live swine: |
| 0103 10 00 | – Pure-bred breeding animals (2) |
| ex 0106 | Other live animals: |
| 0106 14 10 | – Domestics rabbits |
| ex 0106 19 00 | – – Other: reindeer and deer |
| 0106 33 00 | – – Ostriches; emus (Dromaius novaehollandiae) |
| 0106 39 10 | – – – Pigeons |
| 0106 39 80 | – – – Other birds |
| ex 0205 00 | Meat of horses, fresh, chilled or frozen |
| ex 0208 | Other meat and edible meat offal, fresh, chilled or frozen: |
| ex 0208 10 10 | – – Meat of domestic rabbits |
| ex 0208 90 10 | – – Meat of domestic pigeons |
| ex 0208 90 30 | – – Meat of game other than rabbits or hares |
| ex 0208 90 60 | – – Meat of reindeer |
| ex 0407 | Birds’ eggs, in shell, fresh, preserved or cooked: |
| 0407 19 90 | – Fertilised, other than of poultry |
| 0407 29 90 | – Other fresh eggs, other than of poultry |
| 0407 90 90 | – Other eggs, other than of poultry |
| 0701 | Potatoes, fresh or chilled |
| ex 0713 | Dried leguminous vegetables, shelled, whether or not skinned or split: |
| ex 0713 10 | – Peas (Pisum sativum): |
| 0713 10 90 | – – Other than for sowing |
| ex 0713 20 00 | – Chickpeas (garbanzos): |
| | – – Other than for sowing |
| | – Beans (Vigna spp., Phaseolus spp.): |
| ex 0713 31 00 | – – Beans of the species Vigna mungo (L) Hepper or Vigna radiata (L) Wilczek: |
| | – – – Other than for sowing |
| ex 0713 32 00 | – – Small red (Adzuki) beans (Phaseolus or Vigna angularis): |
| | – – – Other than for sowing |
| ex 0713 33 | – – Kidney beans, including white pea beans (Phaseolus vulgaris): |
| 0713 33 90 | – – – Other than for sowing |
| ex 0713 34 00 | – – Bambara beans (Vigna subterranea or Voandzeia subterranea): |
| | – – – Other than for sowing |
| ex 0713 35 00 | – – Cow peas (Vigna unguiculata): |
| | – – – Other than for sowing |
| ex 0713 39 00 | – – Other: |
| | – – – Other than for sowing |
| ex 0713 40 00 | – Lentils: |
| | – – Other than for sowing |
| ex 0713 50 00 | – Broad beans (Vicia faba var. major) and horse beans (Vicia faba var. equina and Vicia faba var. minor): |
| | – – Other than for sowing |
| ex 0713 60 00 | – Pigeon peas (Cajanus cajan): |
| | – – Other than for sowing |
| ex 0713 90 00 | – Other: |
| | – – Other than for sowing |
| 1201 90 00 | Soya beans, whether or not broken, other than seed |
| 1202 41 00 | Groundnuts, not roasted or otherwise cooked, in shell, other than seed |
| 1202 42 00 | Groundnuts, not roasted or otherwise cooked, shelled, whether or not broken, other than seed |
| 1203 00 00 | Copra |
| 1204 00 90 | Linseed, whether or not broken, other than for sowing |
| 1205 10 90 | Low euricic acid rape or colza seeds, whether or not broken, other than for sowing |
| 1205 90 00 | Other rape or colza seeds, whether or not broken, other than for sowing |
| 1206 00 91 | Sunflower seeds, shelled; in grey and white striped shell, whether or not broken, other than for sowing |
| 1206 00 99 | Other sunflower seeds, whether or not broken, other than for sowing |
| 1207 29 00 | Cotton seeds, whether or not broken, other than for sowing |
| 1207 40 90 | Sesamum seeds, whether or not broken, other than for sowing |
| 1207 50 90 | Mustard seeds, whether or not broken, other than for sowing |
| 1207 60 00 | – Safflower (Carthamus tinctorius) seeds |
| 1207 91 90 | Poppy seeds, whether or not broken, other than for sowing |
| 1207 99 91 | Hemp seeds, whether or not broken, other than for sowing |
| ex 1207 99 96 | Other oilseeds and oleaginous fruits, whether or not broken, other than for sowing |
| ex 1209 29 50 | – – – Lupine seed, other than for sowing |
| ex 1211 | Plants and parts of plants (including seeds and fruits) of a kind used primarily in perfumery, in pharmacy or for insecticidal, fungicidal or similar purposes, fresh or dried, whether or not cut, crushed or powdered excluding the products listed under CN code ex 1211 90 86 in Part IX |
| 1212 94 00 | Chicory roots |
| ex 1214 | Swedes, mangolds, fodder roots, hay, lucerne (alfalfa), clover, sainfoin, forage kale, lupines, vetches and similar forage products, whether or not in the form of pellets: |
| ex 1214 10 00 | – Lucerne (alfalfa) meal and pellets: |
| | – – – Other than lucerne artificially heat-dried or of lucerne otherwise dried and ground |
| ex 1214 90 | – Other: |
| 1214 90 10 | – – Mangolds, swedes and other fodder roots |
| ex 1214 90 90 | – – Other, excluding: |
| | – – – Sainfoin, clover, lupines, vetches and similar fodder products artificially heat- dried, except hay and fodder kale and products containing hay |
| | – – – Sainfoin, clover, lupines, vetches, honey lotus, chickling pea and birdsfoot, otherwise dried and ground |
| ex 2206 | Other fermented beverages (for example, cider, perry, mead); mixtures of fermented beverages and mixtures of fermented beverages and non-alcoholic beverages, not elsewhere specified or included: |
| ex 2206 00 31 to ex 2206 00 89 | – Fermented beverages other than piquette |
| 5201 | Cotton, not carded or combed |

CN code

Description

ex 0101

Live horses, asses, mules and hinnies:

– Horses

0101 21 00

– – Pure-bred breeding animals (1)

0101 29

– – Other:

0101 29 10

– – – For slaughter

0101 29 90

– – – Other

0101 30 00

– Asses

0101 90 00

– Other

ex 0103

Live swine:

0103 10 00

– Pure-bred breeding animals (2)

ex 0106

Other live animals:

0106 14 10

– Domestics rabbits

ex 0106 19 00

– – Other: reindeer and deer

0106 33 00

– – Ostriches; emus (Dromaius novaehollandiae)

0106 39 10

– – – Pigeons

0106 39 80

– – – Other birds

ex 0205 00

Meat of horses, fresh, chilled or frozen

ex 0208

Other meat and edible meat offal, fresh, chilled or frozen:

ex 0208 10 10

– – Meat of domestic rabbits

ex 0208 90 10

– – Meat of domestic pigeons

ex 0208 90 30

– – Meat of game other than rabbits or hares

ex 0208 90 60

– – Meat of reindeer

ex 0407

Birds’ eggs, in shell, fresh, preserved or cooked:

0407 19 90

– Fertilised, other than of poultry

0407 29 90

– Other fresh eggs, other than of poultry

0407 90 90

– Other eggs, other than of poultry

0701

Potatoes, fresh or chilled

ex 0713

Dried leguminous vegetables, shelled, whether or not skinned or split:

ex 0713 10

– Peas (Pisum sativum):

0713 10 90

– – Other than for sowing

ex 0713 20 00

– Chickpeas (garbanzos):

– – Other than for sowing

– Beans (Vigna spp., Phaseolus spp.):

ex 0713 31 00

– – Beans of the species Vigna mungo (L) Hepper or Vigna radiata (L) Wilczek:

– – – Other than for sowing

ex 0713 32 00

– – Small red (Adzuki) beans (Phaseolus or Vigna angularis):

– – – Other than for sowing

ex 0713 33

– – Kidney beans, including white pea beans (Phaseolus vulgaris):

0713 33 90

– – – Other than for sowing

ex 0713 34 00

– – Bambara beans (Vigna subterranea or Voandzeia subterranea):

– – – Other than for sowing

ex 0713 35 00

– – Cow peas (Vigna unguiculata):

– – – Other than for sowing

ex 0713 39 00

– – Other:

– – – Other than for sowing

ex 0713 40 00

– Lentils:

– – Other than for sowing

ex 0713 50 00

– Broad beans (Vicia faba var. major) and horse beans (Vicia faba var. equina and Vicia faba var. minor):

– – Other than for sowing

ex 0713 60 00

– Pigeon peas (Cajanus cajan):

– – Other than for sowing

ex 0713 90 00

– Other:

– – Other than for sowing

1201 90 00

Soya beans, whether or not broken, other than seed

1202 41 00

Groundnuts, not roasted or otherwise cooked, in shell, other than seed

1202 42 00

Groundnuts, not roasted or otherwise cooked, shelled, whether or not broken, other than seed

1203 00 00

Copra

1204 00 90

Linseed, whether or not broken, other than for sowing

1205 10 90

Low euricic acid rape or colza seeds, whether or not broken, other than for sowing

1205 90 00

Other rape or colza seeds, whether or not broken, other than for sowing

1206 00 91

Sunflower seeds, shelled; in grey and white striped shell, whether or not broken, other than for sowing

1206 00 99

Other sunflower seeds, whether or not broken, other than for sowing

1207 29 00

Cotton seeds, whether or not broken, other than for sowing

1207 40 90

Sesamum seeds, whether or not broken, other than for sowing

1207 50 90

Mustard seeds, whether or not broken, other than for sowing

1207 60 00

– Safflower (Carthamus tinctorius) seeds

1207 91 90

Poppy seeds, whether or not broken, other than for sowing

1207 99 91

Hemp seeds, whether or not broken, other than for sowing

ex 1207 99 96

Other oilseeds and oleaginous fruits, whether or not broken, other than for sowing

ex 1209 29 50

– – – Lupine seed, other than for sowing

ex 1211

Plants and parts of plants (including seeds and fruits) of a kind used primarily in perfumery, in pharmacy or for insecticidal, fungicidal or similar purposes, fresh or dried, whether or not cut, crushed or powdered excluding the products listed under CN code ex 1211 90 86 in Part IX

1212 94 00

Chicory roots

ex 1214

Swedes, mangolds, fodder roots, hay, lucerne (alfalfa), clover, sainfoin, forage kale, lupines, vetches and similar forage products, whether or not in the form of pellets:

ex 1214 10 00

– Lucerne (alfalfa) meal and pellets:

– – – Other than lucerne artificially heat-dried or of lucerne otherwise dried and ground

ex 1214 90

– Other:

1214 90 10

– – Mangolds, swedes and other fodder roots

ex 1214 90 90

– – Other, excluding:

– – – Sainfoin, clover, lupines, vetches and similar fodder products artificially heat- dried, except hay and fodder kale and products containing hay

– – – Sainfoin, clover, lupines, vetches, honey lotus, chickling pea and birdsfoot, otherwise dried and ground

ex 2206

Other fermented beverages (for example, cider, perry, mead); mixtures of fermented beverages and mixtures of fermented beverages and non-alcoholic beverages, not elsewhere specified or included:

ex 2206 00 31 to ex 2206 00 89

– Fermented beverages other than piquette

5201

Cotton, not carded or combed

---

(1)  Entry under this subheading is subject to the conditions laid down in the relevant Union provisions (see Regulation (EU) 2016/1012 and Commission Implementing Regulation (EU) 2015/262 of 17 February 2015 laying down rules pursuant to Council Directives 90/427/EEC and 2009/156/EC as regards the methods for the identification of equidae (Equine Passport Regulation), OJ L 59, 3.3.2015, p. 1).

(2)  Regulation (EU) 2016/1012.

---

ANNEX VII

MEMBER STATES’ ALLOCATIONS (PER FINANCIAL YEAR) FOR TYPES OF INTERVENTION IN THE WINE SECTOR AS REFERRED TO IN ARTICLE 88(1)

| | EUR (current prices) |
| --- | --- |
| Bulgaria | 25 721 000 |
| Czechia | 4 954 000 |
| Germany | 37 381 000 |
| Greece | 23 030 000 |
| Spain | 202 147 000 |
| France | 269 628 000 |
| Croatia | 10 410 000 |
| Italy | 323 883 000 |
| Cyprus | 4 465 000 |
| Lithuania | 43 000 |
| Hungary | 27 970 000 |
| Austria | 13 155 000 |
| Portugal | 62 670 000 |
| Romania | 45 844 000 |
| Slovenia | 4 849 000 |
| Slovakia | 4 887 000 |

EUR (current prices)

Bulgaria

25 721 000

Czechia

4 954 000

Germany

37 381 000

Greece

23 030 000

Spain

202 147 000

France

269 628 000

Croatia

10 410 000

Italy

323 883 000

Cyprus

4 465 000

Lithuania

43 000

Hungary

27 970 000

Austria

13 155 000

Portugal

62 670 000

Romania

45 844 000

Slovenia

4 849 000

Slovakia

4 887 000

---

ANNEX VIII

MEMBER STATES’ ALLOCATIONS FOR COTTON REFERRED TO IN ARTICLE 87(1), SECOND SUBPARAGRAPH

| (current prices, in EUR) |
| --- |
| Calendar year | 2023 | 2024 | 2025 | 2026 | 2027 and subsequent years |
| Bulgaria | 2 557 820 | 2 557 820 | 2 557 820 | 2 557 820 | 2 557 820 |
| Greece | 183 996 000 | 183 996 000 | 183 996 000 | 183 996 000 | 183 996 000 |
| Spain | 59 690 640 | 59 690 640 | 59 690 640 | 59 690 640 | 59 690 640 |
| Portugal | 177 589 | 177 589 | 177 589 | 177 589 | 177 589 |

(current prices, in EUR)

Calendar year

2023

2024

2025

2026

2027 and subsequent years

Bulgaria

2 557 820

2 557 820

2 557 820

2 557 820

2 557 820

Greece

183 996 000

183 996 000

183 996 000

183 996 000

183 996 000

Spain

59 690 640

59 690 640

59 690 640

59 690 640

59 690 640

Portugal

177 589

177 589

177 589

177 589

177 589

---

ANNEX IX

MEMBER STATES’ ALLOCATIONS FOR DIRECT PAYMENTS WITHOUT COTTON AND BEFORE THE TRANSFERS REFERRED TO IN ARTICLE 87(1), THIRD SUBPARAGRAPH

| (current prices, in EUR) |
| --- |
| Calendar year | 2023 | 2024 | 2025 | 2026 | 2027 and subsequent years |
| Belgium | 494 925 924 | 494 925 924 | 494 925 924 | 494 925 924 | 494 925 924 |
| Bulgaria | 805 884 934 | 814 514 523 | 823 144 112 | 831 773 700 | 831 773 700 |
| Czechia | 854 947 297 | 854 947 297 | 854 947 297 | 854 947 297 | 854 947 297 |
| Denmark | 862 367 277 | 862 367 277 | 862 367 277 | 862 367 277 | 862 367 277 |
| Germany | 4 915 695 459 | 4 915 695 459 | 4 915 695 459 | 4 915 695 459 | 4 915 695 459 |
| Estonia | 196 436 567 | 199 297 294 | 202 158 021 | 205 018 748 | 205 018 748 |
| Ireland | 1 186 281 996 | 1 186 281 996 | 1 186 281 996 | 1 186 281 996 | 1 186 281 996 |
| Greece | 1 891 660 043 | 1 891 660 043 | 1 891 660 043 | 1 891 660 043 | 1 891 660 043 |
| Spain | 4 815 189 110 | 4 822 488 726 | 4 829 788 342 | 4 837 087 959 | 4 837 087 959 |
| France | 7 285 000 537 | 7 285 000 537 | 7 285 000 537 | 7 285 000 537 | 7 285 000 537 |
| Croatia | 374 770 237 | 374 770 237 | 374 770 237 | 374 770 237 | 374 770 237 |
| Italy | 3 628 529 155 | 3 628 529 155 | 3 628 529 155 | 3 628 529 155 | 3 628 529 155 |
| Cyprus | 47 647 540 | 47 647 540 | 47 647 540 | 47 647 540 | 47 647 540 |
| Latvia | 349 226 285 | 354 312 105 | 359 397 925 | 364 483 744 | 364 483 744 |
| Lithuania | 587 064 372 | 595 613 853 | 604 163 335 | 612 712 816 | 612 712 816 |
| Luxembourg | 32 747 827 | 32 747 827 | 32 747 827 | 32 747 827 | 32 747 827 |
| Hungary | 1 243 185 165 | 1 243 185 165 | 1 243 185 165 | 1 243 185 165 | 1 243 185 165 |
| Malta | 4 594 021 | 4 594 021 | 4 594 021 | 4 594 021 | 4 594 021 |
| Netherlands | 717 382 327 | 717 382 327 | 717 382 327 | 717 382 327 | 717 382 327 |
| Austria | 677 581 846 | 677 581 846 | 677 581 846 | 677 581 846 | 677 581 846 |
| Poland | 3 092 416 671 | 3 123 600 494 | 3 154 784 317 | 3 185 968 140 | 3 185 968 140 |
| Portugal | 613 441 539 | 622 225 577 | 631 009 615 | 639 793 653 | 639 793 653 |
| Romania | 1 946 921 018 | 1 974 479 078 | 2 002 037 137 | 2 029 595 196 | 2 029 595 196 |
| Slovenia | 131 530 052 | 131 530 052 | 131 530 052 | 131 530 052 | 131 530 052 |
| Slovakia | 400 894 402 | 405 754 516 | 410 614 629 | 415 474 743 | 415 474 743 |
| Finland | 519 350 246 | 521 168 786 | 522 987 325 | 524 805 865 | 524 805 865 |
| Sweden | 686 131 966 | 686 360 116 | 686 588 267 | 686 816 417 | 686 816 417 |

(current prices, in EUR)

Calendar year

2023

2024

2025

2026

2027 and subsequent years

Belgium

494 925 924

494 925 924

494 925 924

494 925 924

494 925 924

Bulgaria

805 884 934

814 514 523

823 144 112

831 773 700

831 773 700

Czechia

854 947 297

854 947 297

854 947 297

854 947 297

854 947 297

Denmark

862 367 277

862 367 277

862 367 277

862 367 277

862 367 277

Germany

4 915 695 459

4 915 695 459

4 915 695 459

4 915 695 459

4 915 695 459

Estonia

196 436 567

199 297 294

202 158 021

205 018 748

205 018 748

Ireland

1 186 281 996

1 186 281 996

1 186 281 996

1 186 281 996

1 186 281 996

Greece

1 891 660 043

1 891 660 043

1 891 660 043

1 891 660 043

1 891 660 043

Spain

4 815 189 110

4 822 488 726

4 829 788 342

4 837 087 959

4 837 087 959

France

7 285 000 537

7 285 000 537

7 285 000 537

7 285 000 537

7 285 000 537

Croatia

374 770 237

374 770 237

374 770 237

374 770 237

374 770 237

Italy

3 628 529 155

3 628 529 155

3 628 529 155

3 628 529 155

3 628 529 155

Cyprus

47 647 540

47 647 540

47 647 540

47 647 540

47 647 540

Latvia

349 226 285

354 312 105

359 397 925

364 483 744

364 483 744

Lithuania

587 064 372

595 613 853

604 163 335

612 712 816

612 712 816

Luxembourg

32 747 827

32 747 827

32 747 827

32 747 827

32 747 827

Hungary

1 243 185 165

1 243 185 165

1 243 185 165

1 243 185 165

1 243 185 165

Malta

4 594 021

4 594 021

4 594 021

4 594 021

4 594 021

Netherlands

717 382 327

717 382 327

717 382 327

717 382 327

717 382 327

Austria

677 581 846

677 581 846

677 581 846

677 581 846

677 581 846

Poland

3 092 416 671

3 123 600 494

3 154 784 317

3 185 968 140

3 185 968 140

Portugal

613 441 539

622 225 577

631 009 615

639 793 653

639 793 653

Romania

1 946 921 018

1 974 479 078

2 002 037 137

2 029 595 196

2 029 595 196

Slovenia

131 530 052

131 530 052

131 530 052

131 530 052

131 530 052

Slovakia

400 894 402

405 754 516

410 614 629

415 474 743

415 474 743

Finland

519 350 246

521 168 786

522 987 325

524 805 865

524 805 865

Sweden

686 131 966

686 360 116

686 588 267

686 816 417

686 816 417

---

ANNEX X

MEMBER STATES’ ALLOCATIONS (PER FINANCIAL YEAR) FOR TYPES OF INTERVENTION IN THE APICULTURE SECTOR AS REFERRED TO IN ARTICLE 88(2)

| | EUR (current prices) |
| --- | --- |
| Belgium | 422 967 |
| Bulgaria | 2 063 885 |
| Czechia | 2 121 528 |
| Denmark | 295 539 |
| Germany | 2 790 875 |
| Estonia | 140 473 |
| Ireland | 61 640 |
| Greece | 6 162 645 |
| Spain | 9 559 944 |
| France | 6 419 062 |
| Croatia | 1 913 290 |
| Italy | 5 166 537 |
| Cyprus | 169 653 |
| Latvia | 328 804 |
| Lithuania | 549 828 |
| Luxembourg | 30 621 |
| Hungary | 4 271 227 |
| Malta | 14 137 |
| Netherlands | 295 172 |
| Austria | 1 477 188 |
| Poland | 5 024 968 |
| Portugal | 2 204 232 |
| Romania | 6 081 630 |
| Slovenia | 649 455 |
| Slovakia | 999 973 |
| Finland | 196 182 |
| Sweden | 588 545 |

EUR (current prices)

Belgium

422 967

Bulgaria

2 063 885

Czechia

2 121 528

Denmark

295 539

Germany

2 790 875

Estonia

140 473

Ireland

61 640

Greece

6 162 645

Spain

9 559 944

France

6 419 062

Croatia

1 913 290

Italy

5 166 537

Cyprus

169 653

Latvia

328 804

Lithuania

549 828

Luxembourg

30 621

Hungary

4 271 227

Malta

14 137

Netherlands

295 172

Austria

1 477 188

Poland

5 024 968

Portugal

2 204 232

Romania

6 081 630

Slovenia

649 455

Slovakia

999 973

Finland

196 182

Sweden

588 545

---

ANNEX XI

BREAKDOWN OF UNION SUPPORT FOR TYPES OF INTERVENTION FOR RURAL DEVELOPMENT (2023 to 2027) REFERRED TO IN ARTICLE 89(3)

| (current prices, in EUR) |
| --- |
| Year | 2023 | 2024 | 2025 | 2026 | 2027 | Total 2023-2027 |
| Belgium | 82 800 894 | 82 800 894 | 82 800 894 | 82 800 894 | 82 800 894 | 414 004 470 |
| Bulgaria | 282 162 644 | 282 162 644 | 282 162 644 | 282 162 644 | 282 162 644 | 1 410 813 220 |
| Czechia | 259 187 708 | 259 187 708 | 259 187 708 | 259 187 708 | 259 187 708 | 1 295 938 540 |
| Denmark | 75 934 060 | 75 934 060 | 75 934 060 | 75 934 060 | 75 934 060 | 379 670 300 |
| Germany | 1 092 359 738 | 1 092 359 738 | 1 092 359 738 | 1 092 359 738 | 1 092 359 738 | 5 461 798 690 |
| Estonia | 88 016 648 | 88 016 648 | 88 016 648 | 88 016 648 | 88 016 648 | 440 083 240 |
| Ireland | 311 640 628 | 311 640 628 | 311 640 628 | 311 640 628 | 311 640 628 | 1 558 203 140 |
| Greece | 556 953 600 | 556 953 600 | 556 953 600 | 556 953 600 | 556 953 600 | 2 784 768 000 |
| Spain | 1 080 382 825 | 1 080 382 825 | 1 080 382 825 | 1 080 382 825 | 1 080 382 825 | 5 401 914 125 |
| France | 1 459 440 070 | 1 459 440 070 | 1 459 440 070 | 1 459 440 070 | 1 459 440 070 | 7 297 200 350 |
| Croatia | 297 307 401 | 297 307 401 | 297 307 401 | 297 307 401 | 297 307 401 | 1 486 537 005 |
| Italy | 1 349 921 375 | 1 349 921 375 | 1 349 921 375 | 1 349 921 375 | 1 349 921 375 | 6 749 606 875 |
| Cyprus | 23 770 514 | 23 770 514 | 23 770 514 | 23 770 514 | 23 770 514 | 118 852 570 |
| Latvia | 117 495 173 | 117 495 173 | 117 495 173 | 117 495 173 | 117 495 173 | 587 475 865 |
| Lithuania | 195 495 162 | 195 495 162 | 195 495 162 | 195 495 162 | 195 495 162 | 977 475 810 |
| Luxembourg | 12 310 644 | 12 310 644 | 12 310 644 | 12 310 644 | 12 310 644 | 61 553 220 |
| Hungary | 416 869 149 | 416 869 149 | 416 869 149 | 416 869 149 | 416 869 149 | 2 084 345 745 |
| Malta | 19 984 497 | 19 984 497 | 19 984 497 | 19 984 497 | 19 984 497 | 99 922 485 |
| Netherlands | 73 268 369 | 73 268 369 | 73 268 369 | 73 268 369 | 73 268 369 | 366 341 845 |
| Austria | 520 024 752 | 520 024 752 | 520 024 752 | 520 024 752 | 520 024 752 | 2 600 123 760 |
| Poland | 1 320 001 539 | 1 320 001 539 | 1 320 001 539 | 1 320 001 539 | 1 320 001 539 | 6 600 007 695 |
| Portugal | 540 550 620 | 540 550 620 | 540 550 620 | 540 550 620 | 540 550 620 | 2 702 753 100 |
| Romania | 967 049 892 | 967 049 892 | 967 049 892 | 967 049 892 | 967 049 892 | 4 835 249 460 |
| Slovenia | 110 170 192 | 110 170 192 | 110 170 192 | 110 170 192 | 110 170 192 | 550 850 960 |
| Slovakia | 259 077 909 | 259 077 909 | 259 077 909 | 259 077 909 | 259 077 909 | 1 295 389 545 |
| Finland | 354 549 956 | 354 549 956 | 354 549 956 | 354 549 956 | 354 549 956 | 1 772 749 780 |
| Sweden | 211 889 741 | 211 889 741 | 211 889 741 | 211 889 741 | 211 889 741 | 1 059 448 705 |
| Total EU-27 | 12 078 615 700 | 12 078 615 700 | 12 078 615 700 | 12 078 615 700 | 12 078 615 700 | 60 393 078 500 |
| Technical assistance (0,25 %) | 30 272 220 | 30 272 220 | 30 272 220 | 30 272 220 | 30 272 220 | 151 361 100 |
| Total | 12 108 887 920 | 12 108 887 920 | 12 108 887 920 | 12 108 887 920 | 12 108 887 920 | 60 544 439 600 |

(current prices, in EUR)

Year

2023

2024

2025

2026

2027

Total 2023-2027

Belgium

82 800 894

82 800 894

82 800 894

82 800 894

82 800 894

414 004 470

Bulgaria

282 162 644

282 162 644

282 162 644

282 162 644

282 162 644

1 410 813 220

Czechia

259 187 708

259 187 708

259 187 708

259 187 708

259 187 708

1 295 938 540

Denmark

75 934 060

75 934 060

75 934 060

75 934 060

75 934 060

379 670 300

Germany

1 092 359 738

1 092 359 738

1 092 359 738

1 092 359 738

1 092 359 738

5 461 798 690

Estonia

88 016 648

88 016 648

88 016 648

88 016 648

88 016 648

440 083 240

Ireland

311 640 628

311 640 628

311 640 628

311 640 628

311 640 628

1 558 203 140

Greece

556 953 600

556 953 600

556 953 600

556 953 600

556 953 600

2 784 768 000

Spain

1 080 382 825

1 080 382 825

1 080 382 825

1 080 382 825

1 080 382 825

5 401 914 125

France

1 459 440 070

1 459 440 070

1 459 440 070

1 459 440 070

1 459 440 070

7 297 200 350

Croatia

297 307 401

297 307 401

297 307 401

297 307 401

297 307 401

1 486 537 005

Italy

1 349 921 375

1 349 921 375

1 349 921 375

1 349 921 375

1 349 921 375

6 749 606 875

Cyprus

23 770 514

23 770 514

23 770 514

23 770 514

23 770 514

118 852 570

Latvia

117 495 173

117 495 173

117 495 173

117 495 173

117 495 173

587 475 865

Lithuania

195 495 162

195 495 162

195 495 162

195 495 162

195 495 162

977 475 810

Luxembourg

12 310 644

12 310 644

12 310 644

12 310 644

12 310 644

61 553 220

Hungary

416 869 149

416 869 149

416 869 149

416 869 149

416 869 149

2 084 345 745

Malta

19 984 497

19 984 497

19 984 497

19 984 497

19 984 497

99 922 485

Netherlands

73 268 369

73 268 369

73 268 369

73 268 369

73 268 369

366 341 845

Austria

520 024 752

520 024 752

520 024 752

520 024 752

520 024 752

2 600 123 760

Poland

1 320 001 539

1 320 001 539

1 320 001 539

1 320 001 539

1 320 001 539

6 600 007 695

Portugal

540 550 620

540 550 620

540 550 620

540 550 620

540 550 620

2 702 753 100

Romania

967 049 892

967 049 892

967 049 892

967 049 892

967 049 892

4 835 249 460

Slovenia

110 170 192

110 170 192

110 170 192

110 170 192

110 170 192

550 850 960

Slovakia

259 077 909

259 077 909

259 077 909

259 077 909

259 077 909

1 295 389 545

Finland

354 549 956

354 549 956

354 549 956

354 549 956

354 549 956

1 772 749 780

Sweden

211 889 741

211 889 741

211 889 741

211 889 741

211 889 741

1 059 448 705

Total EU-27

12 078 615 700

12 078 615 700

12 078 615 700

12 078 615 700

12 078 615 700

60 393 078 500

Technical assistance (0,25 %)

30 272 220

30 272 220

30 272 220

30 272 220

30 272 220

151 361 100

Total

12 108 887 920

12 108 887 920

12 108 887 920

12 108 887 920

12 108 887 920

60 544 439 600

---

ANNEX XII

MINIMUM AMOUNTS RESERVED FOR THE SPECIFIC OBJECTIVE REFERRED TO IN ARTICLE 6(1), POINT (g)

| (current prices, in EUR) |
| --- |
| Calendar year | 2023 | 2024 | 2025 | 2026 | 2027 and subsequent years |
| Belgium | 14 847 778 | 14 847 778 | 14 847 778 | 14 847 778 | 14 847 778 |
| Bulgaria | 24 176 548 | 24 435 436 | 24 694 323 | 24 953 211 | 24 953 211 |
| Czechia | 25 648 419 | 25 648 419 | 25 648 419 | 25 648 419 | 25 648 419 |
| Denmark | 25 871 018 | 25 871 018 | 25 871 018 | 25 871 018 | 25 871 018 |
| Germany | 147 470 864 | 147 470 864 | 147 470 864 | 147 470 864 | 147 470 864 |
| Estonia | 5 893 097 | 5 978 919 | 6 064 741 | 6 150 562 | 6 150 562 |
| Ireland | 35 588 460 | 35 588 460 | 35 588 460 | 35 588 460 | 35 588 460 |
| Greece | 56 749 801 | 56 749 801 | 56 749 801 | 56 749 801 | 56 749 801 |
| Spain | 144 455 673 | 144 674 662 | 144 893 650 | 145 112 639 | 145 112 639 |
| France | 218 550 016 | 218 550 016 | 218 550 016 | 218 550 016 | 218 550 016 |
| Croatia | 11 243 107 | 11 243 107 | 11 243 107 | 11 243 107 | 11 243 107 |
| Italy | 108 855 875 | 108 855 875 | 108 855 875 | 108 855 875 | 108 855 875 |
| Cyprus | 1 429 426 | 1 429 426 | 1 429 426 | 1 429 426 | 1 429 426 |
| Latvia | 10 476 789 | 10 629 363 | 10 781 938 | 10 934 512 | 10 934 512 |
| Lithuania | 17 611 931 | 17 868 416 | 18 124 900 | 18 381 384 | 18 381 384 |
| Luxembourg | 982 435 | 982 435 | 982 435 | 982 435 | 982 435 |
| Hungary | 37 295 555 | 37 295 555 | 37 295 555 | 37 295 555 | 37 295 555 |
| Malta | 137 821 | 137 821 | 137 821 | 137 821 | 137 821 |
| Netherlands | 21 521 470 | 21 521 470 | 21 521 470 | 21 521 470 | 21 521 470 |
| Austria | 20 327 455 | 20 327 455 | 20 327 455 | 20 327 455 | 20 327 455 |
| Poland | 92 772 500 | 93 708 015 | 94 643 530 | 95 579 044 | 95 579 044 |
| Portugal | 18 403 246 | 18 666 767 | 18 930 288 | 19 193 810 | 19 193 810 |
| Romania | 58 407 631 | 59 234 372 | 60 061 114 | 60 887 856 | 60 887 856 |
| Slovenia | 3 945 902 | 3 945 902 | 3 945 902 | 3 945 902 | 3 945 902 |
| Slovakia | 12 026 832 | 12 172 635 | 12 318 439 | 12 464 242 | 12 464 242 |
| Finland | 15 580 507 | 15 635 064 | 15 689 620 | 15 744 176 | 15 744 176 |
| Sweden | 20 583 959 | 20 590 803 | 20 597 648 | 20 604 493 | 20 604 493 |

(current prices, in EUR)

Calendar year

2023

2024

2025

2026

2027 and subsequent years

Belgium

14 847 778

14 847 778

14 847 778

14 847 778

14 847 778

Bulgaria

24 176 548

24 435 436

24 694 323

24 953 211

24 953 211

Czechia

25 648 419

25 648 419

25 648 419

25 648 419

25 648 419

Denmark

25 871 018

25 871 018

25 871 018

25 871 018

25 871 018

Germany

147 470 864

147 470 864

147 470 864

147 470 864

147 470 864

Estonia

5 893 097

5 978 919

6 064 741

6 150 562

6 150 562

Ireland

35 588 460

35 588 460

35 588 460

35 588 460

35 588 460

Greece

56 749 801

56 749 801

56 749 801

56 749 801

56 749 801

Spain

144 455 673

144 674 662

144 893 650

145 112 639

145 112 639

France

218 550 016

218 550 016

218 550 016

218 550 016

218 550 016

Croatia

11 243 107

11 243 107

11 243 107

11 243 107

11 243 107

Italy

108 855 875

108 855 875

108 855 875

108 855 875

108 855 875

Cyprus

1 429 426

1 429 426

1 429 426

1 429 426

1 429 426

Latvia

10 476 789

10 629 363

10 781 938

10 934 512

10 934 512

Lithuania

17 611 931

17 868 416

18 124 900

18 381 384

18 381 384

Luxembourg

982 435

982 435

982 435

982 435

982 435

Hungary

37 295 555

37 295 555

37 295 555

37 295 555

37 295 555

Malta

137 821

137 821

137 821

137 821

137 821

Netherlands

21 521 470

21 521 470

21 521 470

21 521 470

21 521 470

Austria

20 327 455

20 327 455

20 327 455

20 327 455

20 327 455

Poland

92 772 500

93 708 015

94 643 530

95 579 044

95 579 044

Portugal

18 403 246

18 666 767

18 930 288

19 193 810

19 193 810

Romania

58 407 631

59 234 372

60 061 114

60 887 856

60 887 856

Slovenia

3 945 902

3 945 902

3 945 902

3 945 902

3 945 902

Slovakia

12 026 832

12 172 635

12 318 439

12 464 242

12 464 242

Finland

15 580 507

15 635 064

15 689 620

15 744 176

15 744 176

Sweden

20 583 959

20 590 803

20 597 648

20 604 493

20 604 493

---

ANNEX XIII

UNION LEGISLATIVE ACTS CONCERNING THE ENVIRONMENT AND CLIMATE TO WHOSE OBJECTIVES MEMBER STATES’ CAP STRATEGIC PLANS SHOULD CONTRIBUTE TO, AND BE CONSISTENT WITH, PURSUANT TO ARTICLES 108, 109 AND 115

| — | Directive 2009/147/EC of the European Parliament and of the Council of 30 November 2009 on the conservation of wild birds; |
| --- | --- |

—

Directive 2009/147/EC of the European Parliament and of the Council of 30 November 2009 on the conservation of wild birds;

| — | Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora; |
| --- | --- |

—

Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora;

| — | Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy; |
| --- | --- |

—

Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy;

| — | Council Directive 91/676/EEC of 12 December 1991 concerning the protection of waters against pollution caused by nitrates from agricultural sources; |
| --- | --- |

—

Council Directive 91/676/EEC of 12 December 1991 concerning the protection of waters against pollution caused by nitrates from agricultural sources;

| — | Directive 2008/50/EC of the European Parliament and of the Council of 21 May 2008 on ambient air quality and cleaner air for Europe; |
| --- | --- |

—

Directive 2008/50/EC of the European Parliament and of the Council of 21 May 2008 on ambient air quality and cleaner air for Europe;

| — | Directive (EU) 2016/2284 of the European Parliament and of the Council of 14 December 2016 on the reduction of national emissions of certain atmospheric pollutants, amending Directive 2003/35/EC and repealing Directive 2001/81/EC; |
| --- | --- |

—

Directive (EU) 2016/2284 of the European Parliament and of the Council of 14 December 2016 on the reduction of national emissions of certain atmospheric pollutants, amending Directive 2003/35/EC and repealing Directive 2001/81/EC;

| — | Regulation (EU) 2018/841 of the European Parliament and of the Council of 30 May 2018 on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry in the 2030 climate and energy framework, and amending Regulation No 525/2013 and Decision No 529/2013/EU; |
| --- | --- |

—

Regulation (EU) 2018/841 of the European Parliament and of the Council of 30 May 2018 on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry in the 2030 climate and energy framework, and amending Regulation No 525/2013 and Decision No 529/2013/EU;

| — | Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013; |
| --- | --- |

—

Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013;

| — | Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources; |
| --- | --- |

—

Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources;

| — | Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC; |
| --- | --- |

—

Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC;

| — | Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council; |
| --- | --- |

—

Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council;

| — | Directive 2009/128/EC of the European Parliament and of the Council of 21 October 2009 establishing a framework for Community action to achieve the sustainable use of pesticides. |
| --- | --- |

—

Directive 2009/128/EC of the European Parliament and of the Council of 21 October 2009 establishing a framework for Community action to achieve the sustainable use of pesticides.

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ANNEX XIV

REPORTING BASED ON CORE SET OF INDICATORS PURSUANT TO ARTICLE 142

Indicators for the European Agriculture Guarantee Fund (EAGF) and the European Agriculture Fund for Rural Development (EAFRD)

| Objective | Core set of indicators |
| --- | --- |
| To support viable farm income and resilience of the agricultural sector across the Union in order to enhance long-term food security and agricultural diversity as well as to ensure the economic sustainability of agricultural production in the Union | O.3 | Number of CAP support beneficiaries |

Objective

Core set of indicators

To support viable farm income and resilience of the agricultural sector across the Union in order to enhance long-term food security and agricultural diversity as well as to ensure the economic sustainability of agricultural production in the Union

O.3

Number of CAP support beneficiaries

| C.25 | Agricultural factor income |
| --- | --- |

C.25

Agricultural factor income

| R.6 | Redistribution to smaller farms: Percentage of additional direct payments per hectare for eligible farms below average farm size (compared to average) |
| --- | --- |

R.6

Redistribution to smaller farms: Percentage of additional direct payments per hectare for eligible farms below average farm size (compared to average)

To enhance market orientation and increase farm competitiveness both in the short and long term, including greater focus on research, technology and digitalisation

| R.9 | Farm modernisation: Share of farms receiving investment support to restructure and modernise, including to improve resource efficiency |
| --- | --- |

R.9

Farm modernisation: Share of farms receiving investment support to restructure and modernise, including to improve resource efficiency

To improve the farmers’ position in the value chain

| R.10 | Better supply chain organisation: Share of farms participating in producer groups, producer organisations, local markets, short supply chain circuits and quality schemes supported by the CAP |
| --- | --- |

R.10

Better supply chain organisation: Share of farms participating in producer groups, producer organisations, local markets, short supply chain circuits and quality schemes supported by the CAP

To contribute to climate change mitigation and adaptation, including by reducing greenhouse gas emissions and enhancing carbon sequestration, as well as to promote sustainable energy

| I.10 | Contributing to climate change mitigation: Greenhouse gas emissions from agriculture |
| --- | --- |

I.10

Contributing to climate change mitigation: Greenhouse gas emissions from agriculture

| R.14 | Carbon storage in soils and biomass: Share of utilised agricultural area (UAA) under supported commitments to reduce emissions or to maintain or enhance carbon storage (including permanent grassland, permanent crops with permanent green cover, agricultural land in wetland and peatland) |
| --- | --- |

R.14

Carbon storage in soils and biomass: Share of utilised agricultural area (UAA) under supported commitments to reduce emissions or to maintain or enhance carbon storage (including permanent grassland, permanent crops with permanent green cover, agricultural land in wetland and peatland)

| R.17 | Afforested land: Area supported for afforestation, agroforestry and restoration, including breakdowns |
| --- | --- |

R.17

Afforested land: Area supported for afforestation, agroforestry and restoration, including breakdowns

To foster sustainable development and efficient management of natural resources such as water, soil and air, including by reducing chemical dependency

| O.34 | Number of hectares under environmental practices (summary indicator on physical area covered by conditionality, eco-schemes, agri- and forest-environment-climate management commitments) |
| --- | --- |

O.34

Number of hectares under environmental practices (summary indicator on physical area covered by conditionality, eco-schemes, agri- and forest-environment-climate management commitments)

| I.15 | Improving water quality: Gross nutrient balance on agricultural land |
| --- | --- |

I.15

Improving water quality: Gross nutrient balance on agricultural land

| I.16 | Reducing nutrient leakage: Nitrates in ground water - percentage of ground water stations with nitrates concentration over 50 mg/l under Directive 91/676/EEC |
| --- | --- |

I.16

Reducing nutrient leakage: Nitrates in ground water - percentage of ground water stations with nitrates concentration over 50 mg/l under Directive 91/676/EEC

| I.18 | Sustainable and reduced use of pesticides: Risks, use and impacts of pesticides |
| --- | --- |

I.18

Sustainable and reduced use of pesticides: Risks, use and impacts of pesticides

| R.19 | Improving and protecting soils: Share of utilised agricultural area (UAA) under supported commitments beneficial for soil management to improve soil quality and biota (such as reducing tillage, soil cover with crops, crop rotation included with leguminous crops) |
| --- | --- |

R.19

Improving and protecting soils: Share of utilised agricultural area (UAA) under supported commitments beneficial for soil management to improve soil quality and biota (such as reducing tillage, soil cover with crops, crop rotation included with leguminous crops)

| R.20 | Improving air quality: Share of utilised agricultural area (UAA) under supported commitments to reduce ammonia emission |
| --- | --- |

R.20

Improving air quality: Share of utilised agricultural area (UAA) under supported commitments to reduce ammonia emission

| R.21 | Protecting water quality: Share of utilised agricultural area (UAA) under supported commitments for the quality of water bodies |
| --- | --- |

R.21

Protecting water quality: Share of utilised agricultural area (UAA) under supported commitments for the quality of water bodies

| R.22 | Sustainable nutrient management: Share of utilised agricultural area (UAA) under supported commitments related to improved nutrient management |
| --- | --- |

R.22

Sustainable nutrient management: Share of utilised agricultural area (UAA) under supported commitments related to improved nutrient management

| R.24 | Sustainable and reduced use of pesticides: Share of utilised agricultural area (UAA) under supported specific commitments which lead to a sustainable use of pesticides in order to reduce risks and impacts of pesticides such as pesticides leakage |
| --- | --- |

R.24

Sustainable and reduced use of pesticides: Share of utilised agricultural area (UAA) under supported specific commitments which lead to a sustainable use of pesticides in order to reduce risks and impacts of pesticides such as pesticides leakage

To contribute to halting and reversing biodiversity loss, enhance ecosystem services and preserve habitats and landscapes

| C.33 | Agricultural area under organic farming |
| --- | --- |

C.33

Agricultural area under organic farming

| I.21 | Enhancing provision of ecosystem services: Share of agricultural land covered with landscape features |
| --- | --- |

I.21

Enhancing provision of ecosystem services: Share of agricultural land covered with landscape features

| R.29 | Development of organic agriculture: Share of utilised agricultural area (UAA) supported by the CAP for organic farming, with a split between maintenance and conversion |
| --- | --- |

R.29

Development of organic agriculture: Share of utilised agricultural area (UAA) supported by the CAP for organic farming, with a split between maintenance and conversion

| R.34 | Preserving landscape features: Share of utilised agricultural area (UAA) under supported commitments for managing landscape features, including hedgerows and trees |
| --- | --- |

R.34

Preserving landscape features: Share of utilised agricultural area (UAA) under supported commitments for managing landscape features, including hedgerows and trees

To attract and sustain young farmers and new farmers and facilitate sustainable business development in rural areas

| R.36 | Generational renewal: Number of young farmers benefitting from setting up with support from the CAP, including a gender breakdown |
| --- | --- |

R.36

Generational renewal: Number of young farmers benefitting from setting up with support from the CAP, including a gender breakdown

To promote employment, growth, gender equality, including the participation of women in farming, social inclusion and local development in rural areas, including the circular bio-economy and sustainable forestry

| R.37 | Growth and jobs in rural areas: New jobs supported in CAP projects |
| --- | --- |

R.37

Growth and jobs in rural areas: New jobs supported in CAP projects

| R.38 | LEADER coverage: Share of rural population covered by local development strategies |
| --- | --- |

R.38

LEADER coverage: Share of rural population covered by local development strategies

| R.41 | Connecting rural Europe: Share of rural population benefitting from improved access to services and infrastructure through CAP support |
| --- | --- |

R.41

Connecting rural Europe: Share of rural population benefitting from improved access to services and infrastructure through CAP support

To improve the response of Union agriculture to societal demands on food and health, including high-quality, safe and nutritious food produced in a sustainable way, to reduce food waste, as well as to improve animal welfare and to combat antimicrobial resistances

| I.28 | Limiting antimicrobial use in farmed animals: Sales/use of antimicrobials for food-producing animals |
| --- | --- |

I.28

Limiting antimicrobial use in farmed animals: Sales/use of antimicrobials for food-producing animals

| R.43 | Limiting antimicrobial use: Share of livestock units (LU) concerned by supported actions to limit the use of antimicrobials (prevention/reduction) |
| --- | --- |

R.43

Limiting antimicrobial use: Share of livestock units (LU) concerned by supported actions to limit the use of antimicrobials (prevention/reduction)

| R.44 | Improving animal welfare: Share of livestock units (LU) covered by supported actions to improve animal welfare |
| --- | --- |

R.44

Improving animal welfare: Share of livestock units (LU) covered by supported actions to improve animal welfare

Modernising agriculture and rural areas by fostering and sharing of knowledge, innovation and digitalisation in agriculture and rural areas and by encouraging their uptake by farmers, through improved access to research, innovation, knowledge exchange and training

| R.1 | Enhancing performance through knowledge and innovation: Number of persons benefitting from advice, training, knowledge exchange or participating in European Innovation Partnership (EIP) operational groups supported by the CAP in order to enhance sustainable economic, social, environmental, climate and resource efficiency performance |
| --- | --- |

R.1

Enhancing performance through knowledge and innovation: Number of persons benefitting from advice, training, knowledge exchange or participating in European Innovation Partnership (EIP) operational groups supported by the CAP in order to enhance sustainable economic, social, environmental, climate and resource efficiency performance

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| 6.12.2021 | EN | Official Journal of the European Union | L 435/187 |
| --- | --- | --- | --- |

6.12.2021

EN

Official Journal of the European Union

L 435/187

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REGULATION (EU) 2021/2116 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of 2 December 2021

on the financing, management and monitoring of the common agricultural policy and repealing Regulation (EU) No 1306/2013

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 43(2) and Article 322(1), point (a), thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the Court of Auditors (1),

Having regard to the opinion of the European Economic and Social Committee (2),

Having regard to the opinion of the Committee of the Regions (3),

Acting in accordance with the ordinary legislative procedure (4),

Whereas:

| (1) | The Commission communication of 29 November 2017 entitled ‘The Future of Food and Farming’ concludes that the common agricultural policy (CAP) should continue to step up its response to future challenges and opportunities by boosting employment, growth and investment, by fighting and adapting to climate change and by bringing research and innovation out of the laboratories and onto fields and markets. The CAP should furthermore address citizens’ concerns regarding sustainable agricultural production. |
| --- | --- |

(1)

The Commission communication of 29 November 2017 entitled ‘The Future of Food and Farming’ concludes that the common agricultural policy (CAP) should continue to step up its response to future challenges and opportunities by boosting employment, growth and investment, by fighting and adapting to climate change and by bringing research and innovation out of the laboratories and onto fields and markets. The CAP should furthermore address citizens’ concerns regarding sustainable agricultural production.

| (2) | In accordance with Article 208 of the Treaty on the Functioning of the European Union (TFEU), the implementation of the CAP should take account of the objectives of the United Nations 2030 Agenda for Sustainable Development, including the Union’s obligations on climate change mitigation and development cooperation. |
| --- | --- |

(2)

In accordance with Article 208 of the Treaty on the Functioning of the European Union (TFEU), the implementation of the CAP should take account of the objectives of the United Nations 2030 Agenda for Sustainable Development, including the Union’s obligations on climate change mitigation and development cooperation.

| (3) | The current CAP’s compliance-driven delivery model should be adjusted to ensure a greater focus on results and performance. Accordingly, the Union should set the basic policy objectives, types of intervention and basic Union requirements while greater responsibility and accountability for meeting those objectives should be borne by the Member States. As a consequence, there is a need to ensure greater subsidiarity and flexibility in order to take better account of the local conditions and needs. Accordingly, under the new CAP delivery model, Member States should be responsible for tailoring their CAP interventions in line with their specific needs and basic Union requirements in order to maximise their contribution to Union’s CAP objectives. In order to continue to ensure a common approach and a level playing field, Member States should also establish and design the compliance and control framework for beneficiaries, including compliance with standards for good agricultural and environmental conditions and statutory management requirements. |
| --- | --- |

(3)

The current CAP’s compliance-driven delivery model should be adjusted to ensure a greater focus on results and performance. Accordingly, the Union should set the basic policy objectives, types of intervention and basic Union requirements while greater responsibility and accountability for meeting those objectives should be borne by the Member States. As a consequence, there is a need to ensure greater subsidiarity and flexibility in order to take better account of the local conditions and needs. Accordingly, under the new CAP delivery model, Member States should be responsible for tailoring their CAP interventions in line with their specific needs and basic Union requirements in order to maximise their contribution to Union’s CAP objectives. In order to continue to ensure a common approach and a level playing field, Member States should also establish and design the compliance and control framework for beneficiaries, including compliance with standards for good agricultural and environmental conditions and statutory management requirements.

| (4) | The CAP encompasses various interventions and measures, many of which are covered by the CAP Strategic Plans referred to in Title III of Regulation (EU) 2021/2115 of the European Parliament and of the Council (5). Others still follow the traditional compliance logic. It is important to provide financing for all interventions and measures in order to contribute to the achievement of the objectives of the CAP. Both of those interventions and measures have certain elements in common, therefore their financing should be dealt with in the same set of provisions. However, where necessary, those provisions should allow for different treatment. Regulation (EU) No 1306/2013 of the European Parliament and of the Council (6) governs two European agricultural funds, namely the European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural Development (EAFRD). Those two funds should be maintained in this Regulation. In view of the scope of the current CAP reform, it is appropriate to replace Regulation (EU) No 1306/2013. |
| --- | --- |

(4)

The CAP encompasses various interventions and measures, many of which are covered by the CAP Strategic Plans referred to in Title III of Regulation (EU) 2021/2115 of the European Parliament and of the Council (5). Others still follow the traditional compliance logic. It is important to provide financing for all interventions and measures in order to contribute to the achievement of the objectives of the CAP. Both of those interventions and measures have certain elements in common, therefore their financing should be dealt with in the same set of provisions. However, where necessary, those provisions should allow for different treatment. Regulation (EU) No 1306/2013 of the European Parliament and of the Council (6) governs two European agricultural funds, namely the European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural Development (EAFRD). Those two funds should be maintained in this Regulation. In view of the scope of the current CAP reform, it is appropriate to replace Regulation (EU) No 1306/2013.

| (5) | The provisions of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (7) (‘the Financial Regulation’), in particular those governing shared management with Member States, the function of accredited bodies and the budgetary principles, should apply to the interventions and measures set out in this Regulation. |
| --- | --- |

(5)

The provisions of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (7) (‘the Financial Regulation’), in particular those governing shared management with Member States, the function of accredited bodies and the budgetary principles, should apply to the interventions and measures set out in this Regulation.

| (6) | In order to harmonise practices among Member States as regards the application of the force majeure clause, this Regulation should, where appropriate, provide for exemptions from the CAP rules in cases of force majeure and exceptional circumstances, as well as for a non-exhaustive list of possible cases of force majeure and exceptional circumstances to be recognised by the national competent authorities. National competent authorities should take decisions on force majeure or exceptional circumstances on a case-by-case basis, on the basis of relevant evidence. |
| --- | --- |

(6)

In order to harmonise practices among Member States as regards the application of the force majeure clause, this Regulation should, where appropriate, provide for exemptions from the CAP rules in cases of force majeure and exceptional circumstances, as well as for a non-exhaustive list of possible cases of force majeure and exceptional circumstances to be recognised by the national competent authorities. National competent authorities should take decisions on force majeure or exceptional circumstances on a case-by-case basis, on the basis of relevant evidence.

| (7) | Furthermore, this Regulation should provide for exemptions from the CAP rules in cases of force majeure and exceptional circumstances, such as in the case of a severe meteorological event gravely affecting the holding of the beneficiary on a level comparable to a severe natural disaster. |
| --- | --- |

(7)

Furthermore, this Regulation should provide for exemptions from the CAP rules in cases of force majeure and exceptional circumstances, such as in the case of a severe meteorological event gravely affecting the holding of the beneficiary on a level comparable to a severe natural disaster.

| (8) | The general budget of the Union (‘the Union budget’) should finance CAP expenditure, including expenditure on the CAP Strategic Plan interventions under Title III of Regulation (EU) 2021/2115, either directly through the EAGF and EAFRD or in the context of shared management with the Member States. The types of expenditure that can be financed using those two funds should be specified. |
| --- | --- |

(8)

The general budget of the Union (‘the Union budget’) should finance CAP expenditure, including expenditure on the CAP Strategic Plan interventions under Title III of Regulation (EU) 2021/2115, either directly through the EAGF and EAFRD or in the context of shared management with the Member States. The types of expenditure that can be financed using those two funds should be specified.

| (9) | In order to achieve the objectives of the CAP laid down in Article 39 TFEU, and to comply with the principle of shared management provided for in Article 63 of the Financial Regulation, Member States should ensure that the necessary governance systems are in place. Provision should therefore be made in this Regulation for designating governance bodies, namely the competent authority, paying agency, coordinating body and certification body. |
| --- | --- |

(9)

In order to achieve the objectives of the CAP laid down in Article 39 TFEU, and to comply with the principle of shared management provided for in Article 63 of the Financial Regulation, Member States should ensure that the necessary governance systems are in place. Provision should therefore be made in this Regulation for designating governance bodies, namely the competent authority, paying agency, coordinating body and certification body.

| (10) | It is necessary to provide for the accreditation of paying agencies and for the designation and accreditation of coordinating bodies by Member States and for the establishment of the procedures for obtaining management declarations, the annual clearance documents, an annual summary of the final audit reports, and performance reports, and for obtaining the certification of management and monitoring systems, of reporting systems and the certification of annual accounts by independent bodies. Moreover, in order to ensure the transparency of the system of checks to be carried out at national level, in particular as regards procedures for authorisation, validation and payment, and to reduce the administrative and audit burden for the Commission and for the Member States where accreditation of each individual paying agency is required, the number of authorities and bodies to which those responsibilities are delegated should be restricted while respecting the constitutional provisions of each Member State. Where a Member State’s constitutional framework provides for regions, that Member State should have the possibility to accredit regional paying agencies, under certain conditions. |
| --- | --- |

(10)

It is necessary to provide for the accreditation of paying agencies and for the designation and accreditation of coordinating bodies by Member States and for the establishment of the procedures for obtaining management declarations, the annual clearance documents, an annual summary of the final audit reports, and performance reports, and for obtaining the certification of management and monitoring systems, of reporting systems and the certification of annual accounts by independent bodies. Moreover, in order to ensure the transparency of the system of checks to be carried out at national level, in particular as regards procedures for authorisation, validation and payment, and to reduce the administrative and audit burden for the Commission and for the Member States where accreditation of each individual paying agency is required, the number of authorities and bodies to which those responsibilities are delegated should be restricted while respecting the constitutional provisions of each Member State. Where a Member State’s constitutional framework provides for regions, that Member State should have the possibility to accredit regional paying agencies, under certain conditions.

| (11) | Where a Member State accredits more than one paying agency, it should designate a single public coordinating body in order to ensure consistency in the management of the EAGF and EAFRD, to provide for a liaison between the Commission and the various accredited paying agencies, and to ensure that the information requested by the Commission concerning the operations of several paying agencies is provided promptly. That coordinating body should also take and coordinate actions with a view to resolving any deficiencies of a common nature encountered at national level, should keep the Commission informed of any follow-up, and should ensure the harmonised application of the Union rules, taking account of any limitation or restrictions due to the constitutional provisions in force. |
| --- | --- |

(11)

Where a Member State accredits more than one paying agency, it should designate a single public coordinating body in order to ensure consistency in the management of the EAGF and EAFRD, to provide for a liaison between the Commission and the various accredited paying agencies, and to ensure that the information requested by the Commission concerning the operations of several paying agencies is provided promptly. That coordinating body should also take and coordinate actions with a view to resolving any deficiencies of a common nature encountered at national level, should keep the Commission informed of any follow-up, and should ensure the harmonised application of the Union rules, taking account of any limitation or restrictions due to the constitutional provisions in force.

| (12) | Involving paying agencies that have been accredited by the Member States is a crucial prerequisite under the new CAP delivery model for having reasonable assurance that the objectives and targets set out in the relevant CAP Strategic Plans will be achieved by the interventions financed by the Union budget. It should, therefore, be explicitly provided in this Regulation that only expenditure effected by accredited paying agencies can be reimbursed from the Union budget. In addition, the expenditure financed by the Union for the interventions referred to in Regulation (EU) 2021/2115 should have a corresponding output regarding, and should comply with, the basic Union requirements and the governance systems. |
| --- | --- |

(12)

Involving paying agencies that have been accredited by the Member States is a crucial prerequisite under the new CAP delivery model for having reasonable assurance that the objectives and targets set out in the relevant CAP Strategic Plans will be achieved by the interventions financed by the Union budget. It should, therefore, be explicitly provided in this Regulation that only expenditure effected by accredited paying agencies can be reimbursed from the Union budget. In addition, the expenditure financed by the Union for the interventions referred to in Regulation (EU) 2021/2115 should have a corresponding output regarding, and should comply with, the basic Union requirements and the governance systems.

| (13) | In order to have an overview of public and private certification bodies and to have up-to-date information on those that are active, the Commission should receive information from the Member States and keep an up-to-date registry of those bodies. In order for the European Parliament to have accurate and up-to-date information as well, it is necessary for the Commission to communicate to it annually the list of the designated certification bodies. |
| --- | --- |

(13)

In order to have an overview of public and private certification bodies and to have up-to-date information on those that are active, the Commission should receive information from the Member States and keep an up-to-date registry of those bodies. In order for the European Parliament to have accurate and up-to-date information as well, it is necessary for the Commission to communicate to it annually the list of the designated certification bodies.

| (14) | In the context of respecting budgetary discipline, it is necessary to define the annual ceiling for the expenditure financed by the EAGF by taking into account the maximum amounts laid down for the EAGF under the multiannual financial framework provided for in Council Regulation (EU, Euratom) 2020/2093 (8). |
| --- | --- |

(14)

In the context of respecting budgetary discipline, it is necessary to define the annual ceiling for the expenditure financed by the EAGF by taking into account the maximum amounts laid down for the EAGF under the multiannual financial framework provided for in Council Regulation (EU, Euratom) 2020/2093 (8).

| (15) | Budgetary discipline also requires the annual ceiling for expenditure financed by the EAGF to be respected in all circumstances and at every stage of the budget procedure and of the implementation of the budget. Consequently, it is necessary for the national ceiling for the direct payments for each Member State set out in Regulation (EU) 2021/2115 to be regarded as a financial ceiling for such direct payments for the Member State concerned and for the reimbursement of those payments to remain within that financial ceiling. |
| --- | --- |

(15)

Budgetary discipline also requires the annual ceiling for expenditure financed by the EAGF to be respected in all circumstances and at every stage of the budget procedure and of the implementation of the budget. Consequently, it is necessary for the national ceiling for the direct payments for each Member State set out in Regulation (EU) 2021/2115 to be regarded as a financial ceiling for such direct payments for the Member State concerned and for the reimbursement of those payments to remain within that financial ceiling.

| (16) | With a view to ensuring that the amounts for the financing of the CAP comply with the annual ceilings, the financial discipline mechanism by which the level of direct support is adjusted should be maintained. An agricultural reserve should be maintained to support the agricultural sector in the event of market developments or crises affecting agricultural production or distribution. Article 12(2), point (d), of the Financial Regulation provides that non-committed appropriations may be carried over only to the following financial year, within the meaning of Article 9 of the Financial Regulation (‘budgetary year’). In order to simplify significantly the implementation for beneficiaries and national administrations, a roll-over mechanism should be used, using any unused amounts of the reserve for crises in the agricultural sector established in the year 2022. For that purpose, a derogation from Article 12(2), point (d), of the Financial Regulation is necessary, allowing for non-committed appropriations of the agricultural reserve to be carried over to finance the agricultural reserve in the following budgetary years until the year 2027. Furthermore, as regards the budgetary year 2022, a derogation is necessary as the total unused amount of the reserve for crises in the agricultural sector available at the end of the budgetary year 2022 should be carried over to the budgetary year 2023 to the corresponding line of the new agricultural reserve established under this Regulation without being fully returned to the budgetary lines which cover direct payment interventions under the CAP Strategic Plan. However, in order to maximise the amounts to be reimbursed to farmers in the budgetary year 2023, all other availabilities under the EAGF sub-ceiling for the budgetary year 2023 set out in Regulation (EU, Euratom) 2020/2093 should be used first to set up the new agricultural reserve in the budgetary year 2023. |
| --- | --- |

(16)

With a view to ensuring that the amounts for the financing of the CAP comply with the annual ceilings, the financial discipline mechanism by which the level of direct support is adjusted should be maintained. An agricultural reserve should be maintained to support the agricultural sector in the event of market developments or crises affecting agricultural production or distribution. Article 12(2), point (d), of the Financial Regulation provides that non-committed appropriations may be carried over only to the following financial year, within the meaning of Article 9 of the Financial Regulation (‘budgetary year’). In order to simplify significantly the implementation for beneficiaries and national administrations, a roll-over mechanism should be used, using any unused amounts of the reserve for crises in the agricultural sector established in the year 2022. For that purpose, a derogation from Article 12(2), point (d), of the Financial Regulation is necessary, allowing for non-committed appropriations of the agricultural reserve to be carried over to finance the agricultural reserve in the following budgetary years until the year 2027. Furthermore, as regards the budgetary year 2022, a derogation is necessary as the total unused amount of the reserve for crises in the agricultural sector available at the end of the budgetary year 2022 should be carried over to the budgetary year 2023 to the corresponding line of the new agricultural reserve established under this Regulation without being fully returned to the budgetary lines which cover direct payment interventions under the CAP Strategic Plan. However, in order to maximise the amounts to be reimbursed to farmers in the budgetary year 2023, all other availabilities under the EAGF sub-ceiling for the budgetary year 2023 set out in Regulation (EU, Euratom) 2020/2093 should be used first to set up the new agricultural reserve in the budgetary year 2023.

| (17) | In order to avoid an excessive administrative burden for national administrations and farmers, to simplify procedures as much as possible and to limit the complexity of aid application forms, reimbursement of the amounts carried over from the preceding agricultural financial year (‘financial year’) in relation to financial discipline applied should not take place either where financial discipline is applied for a second subsequent year (year N+1), or where the overall amount of non-committed appropriations represents less than 0,2 % of the EAGF annual ceiling. |
| --- | --- |

(17)

In order to avoid an excessive administrative burden for national administrations and farmers, to simplify procedures as much as possible and to limit the complexity of aid application forms, reimbursement of the amounts carried over from the preceding agricultural financial year (‘financial year’) in relation to financial discipline applied should not take place either where financial discipline is applied for a second subsequent year (year N+1), or where the overall amount of non-committed appropriations represents less than 0,2 % of the EAGF annual ceiling.

| (18) | The measures taken to determine the financial contribution from the EAGF and EAFRD in respect of the calculation of financial ceilings do not affect the powers of the budgetary authority designated by the TFEU. Those measures should therefore be based on the financial envelopes fixed in accordance with the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources (9). |
| --- | --- |

(18)

The measures taken to determine the financial contribution from the EAGF and EAFRD in respect of the calculation of financial ceilings do not affect the powers of the budgetary authority designated by the TFEU. Those measures should therefore be based on the financial envelopes fixed in accordance with the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources (9).

| (19) | Budgetary discipline also requires a continuous examination of the medium-term budgetary position. The Commission should propose, if necessary, appropriate measures to the European Parliament and the Council in order to ensure that Member States comply with the ceilings provided for in Regulation (EU, Euratom) 2020/2093. Furthermore, the Commission should make full use of its management powers at all times to ensure compliance with the annual ceiling and, if necessary, should propose appropriate measures to the European Parliament and to the Council, or only to the Council, as appropriate, to redress the budgetary position. If, at the end of a budgetary year, the annual ceiling cannot be complied with as a result of the reimbursements requested by the Member States, the Commission should be able to take measures allowing the provisional distribution of the available amounts among the Member States in proportion to their as yet unpaid requests for reimbursement, as well as measures ensuring compliance with the ceiling fixed for the year concerned. Payments for that year should be charged to the following budgetary year and the total amount of Union financing per Member State as well as any compensation to be carried out with respect to Member States should be definitively established in order to ensure that the established amount is complied with. |
| --- | --- |

(19)

Budgetary discipline also requires a continuous examination of the medium-term budgetary position. The Commission should propose, if necessary, appropriate measures to the European Parliament and the Council in order to ensure that Member States comply with the ceilings provided for in Regulation (EU, Euratom) 2020/2093. Furthermore, the Commission should make full use of its management powers at all times to ensure compliance with the annual ceiling and, if necessary, should propose appropriate measures to the European Parliament and to the Council, or only to the Council, as appropriate, to redress the budgetary position. If, at the end of a budgetary year, the annual ceiling cannot be complied with as a result of the reimbursements requested by the Member States, the Commission should be able to take measures allowing the provisional distribution of the available amounts among the Member States in proportion to their as yet unpaid requests for reimbursement, as well as measures ensuring compliance with the ceiling fixed for the year concerned. Payments for that year should be charged to the following budgetary year and the total amount of Union financing per Member State as well as any compensation to be carried out with respect to Member States should be definitively established in order to ensure that the established amount is complied with.

| (20) | When implementing the budget, the Commission should operate a monthly early-warning and monitoring system for agricultural expenditure so that, if there is a risk of the annual ceiling being exceeded, it may at the earliest opportunity take the appropriate measures under the management powers at its disposal and propose other measures if the earlier measures appear to be insufficient. A periodic report by the Commission to the European Parliament and to the Council should compare the evolution of the expenditure effected to date in relation to the profiles and should give an assessment of the foreseeable implementation for the remainder of the budgetary year. |
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(20)

When implementing the budget, the Commission should operate a monthly early-warning and monitoring system for agricultural expenditure so that, if there is a risk of the annual ceiling being exceeded, it may at the earliest opportunity take the appropriate measures under the management powers at its disposal and propose other measures if the earlier measures appear to be insufficient. A periodic report by the Commission to the European Parliament and to the Council should compare the evolution of the expenditure effected to date in relation to the profiles and should give an assessment of the foreseeable implementation for the remainder of the budgetary year.

| (21) | In respect of the EAGF, the financial resources required to cover the expenditure effected by the accredited paying agencies should be provided to the Member States by the Commission in the form of reimbursements against the booking of the expenditure effected by those agencies. Until such reimbursements have been made, in the form of monthly payments, financial resources should be mobilised by the Member States depending on the needs of their accredited paying agencies. It should be explicitly laid down in this Regulation that the administrative and personnel costs of the Member States and the beneficiaries involved in the implementation of the CAP are to be borne by those Member States and beneficiaries. |
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(21)

In respect of the EAGF, the financial resources required to cover the expenditure effected by the accredited paying agencies should be provided to the Member States by the Commission in the form of reimbursements against the booking of the expenditure effected by those agencies. Until such reimbursements have been made, in the form of monthly payments, financial resources should be mobilised by the Member States depending on the needs of their accredited paying agencies. It should be explicitly laid down in this Regulation that the administrative and personnel costs of the Member States and the beneficiaries involved in the implementation of the CAP are to be borne by those Member States and beneficiaries.

| (22) | In order to provide the Commission with, in particular, the means to manage agricultural markets, to facilitate the monitoring of agricultural expenditure and to monitor agricultural resources in the medium and long term, including those relating to the environment and climate change resilience and progress towards relevant Union targets, the use of the agro-meteorological system and the acquisition and improvement of satellite data should be provided for. |
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(22)

In order to provide the Commission with, in particular, the means to manage agricultural markets, to facilitate the monitoring of agricultural expenditure and to monitor agricultural resources in the medium and long term, including those relating to the environment and climate change resilience and progress towards relevant Union targets, the use of the agro-meteorological system and the acquisition and improvement of satellite data should be provided for.

| (23) | The Commission should be provided with the means to monitor markets, taking into account the Union’s objectives and commitments, including policy coherence for development, contributing to transparency of markets. |
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(23)

The Commission should be provided with the means to monitor markets, taking into account the Union’s objectives and commitments, including policy coherence for development, contributing to transparency of markets.

| (24) | As regards the financial management of the EAFRD, provision should be made with regard to budgetary commitments, payment deadlines, decommitment and interruptions. Interventions for rural development should be financed from the Union budget on the basis of commitments made in annual instalments. Member States should be able to draw on the Union funds provided for as soon as the CAP Strategic Plans are approved. A suitably restricted prefinancing system is therefore needed to ensure a steady flow of funds so that payments to beneficiaries under the interventions are made at the appropriate time. |
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(24)

As regards the financial management of the EAFRD, provision should be made with regard to budgetary commitments, payment deadlines, decommitment and interruptions. Interventions for rural development should be financed from the Union budget on the basis of commitments made in annual instalments. Member States should be able to draw on the Union funds provided for as soon as the CAP Strategic Plans are approved. A suitably restricted prefinancing system is therefore needed to ensure a steady flow of funds so that payments to beneficiaries under the interventions are made at the appropriate time.

| (25) | Apart from prefinancing, it is also necessary to make a distinction between interim payments and the payment of balances by the Commission to the accredited paying agencies. It is also necessary to lay down detailed rules governing those payments. The automatic decommitment rule should help to speed up execution of interventions and to contribute to sound financial management. The rules governing the national frameworks of Member States with regional interventions as set out in Regulation (EU) 2021/2115 also provide a tool for Member States to ensure execution and sound financial management. |
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(25)

Apart from prefinancing, it is also necessary to make a distinction between interim payments and the payment of balances by the Commission to the accredited paying agencies. It is also necessary to lay down detailed rules governing those payments. The automatic decommitment rule should help to speed up execution of interventions and to contribute to sound financial management. The rules governing the national frameworks of Member States with regional interventions as set out in Regulation (EU) 2021/2115 also provide a tool for Member States to ensure execution and sound financial management.

| (26) | Member States should ensure that Union aid is paid to beneficiaries in good time so that beneficiaries can use it efficiently. A failure by the Member States to comply with the payment deadlines laid down in Union law might create serious difficulties for the beneficiaries and could jeopardise the Union’s yearly budgeting. Therefore, expenditure made without respecting deadlines for payments should be excluded from Union financing. However, in accordance with the principle of proportionality, the Commission should be able to provide for exceptions from that general rule with regard to the EAGF and EAFRD. |
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(26)

Member States should ensure that Union aid is paid to beneficiaries in good time so that beneficiaries can use it efficiently. A failure by the Member States to comply with the payment deadlines laid down in Union law might create serious difficulties for the beneficiaries and could jeopardise the Union’s yearly budgeting. Therefore, expenditure made without respecting deadlines for payments should be excluded from Union financing. However, in accordance with the principle of proportionality, the Commission should be able to provide for exceptions from that general rule with regard to the EAGF and EAFRD.

| (27) | When exercising its responsibilities relating to the implementation of the Union budget, the Commission should comply with the principle of proportionality, set out in Article 5 of the Treaty on European Union (TEU). Furthermore, it is necessary for the arrangements for the implementation and use of the EAGF and EAFRD to comply with that principle of proportionality and to take into account the overall aim of reducing the administrative burden on bodies involved in the management and control of the programmes. |
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(27)

When exercising its responsibilities relating to the implementation of the Union budget, the Commission should comply with the principle of proportionality, set out in Article 5 of the Treaty on European Union (TEU). Furthermore, it is necessary for the arrangements for the implementation and use of the EAGF and EAFRD to comply with that principle of proportionality and to take into account the overall aim of reducing the administrative burden on bodies involved in the management and control of the programmes.

| (28) | In accordance with the architecture and the key characteristics of the new CAP delivery model, the eligibility of payments made by Member States for Union financing should no longer depend on the legality and regularity of payments to individual beneficiaries. Instead, as regards types of intervention referred to in Regulation (EU) 2021/2115, and without prejudice to the specific eligibility rules for the crop-specific payment for cotton set out in that Regulation, Member States’ payments should be eligible if they are matched by corresponding output and the applicable basic Union requirements are complied with. |
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(28)

In accordance with the architecture and the key characteristics of the new CAP delivery model, the eligibility of payments made by Member States for Union financing should no longer depend on the legality and regularity of payments to individual beneficiaries. Instead, as regards types of intervention referred to in Regulation (EU) 2021/2115, and without prejudice to the specific eligibility rules for the crop-specific payment for cotton set out in that Regulation, Member States’ payments should be eligible if they are matched by corresponding output and the applicable basic Union requirements are complied with.

| (29) | Regulation (EU) No 1306/2013 provides for reductions and suspensions of monthly or interim payments for the purpose of supporting the control of legality and regularity. With the new CAP delivery model, those tools should be used to support performance-based delivery. The difference between reductions and suspensions should also be clarified. |
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(29)

Regulation (EU) No 1306/2013 provides for reductions and suspensions of monthly or interim payments for the purpose of supporting the control of legality and regularity. With the new CAP delivery model, those tools should be used to support performance-based delivery. The difference between reductions and suspensions should also be clarified.

| (30) | The procedure for reducing EAGF payments for non-compliance with financial ceilings set by Union law should be streamlined and aligned with the procedure used for EAFRD payments in this context. |
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(30)

The procedure for reducing EAGF payments for non-compliance with financial ceilings set by Union law should be streamlined and aligned with the procedure used for EAFRD payments in this context.

| (31) | Member States should send the annual accounts, an annual performance report on the implementation of the CAP Strategic Plan, the annual summary of the final audit reports and the management declaration to the Commission by 15 February every year. Where those documents are not sent, thus preventing the Commission from clearing the accounts for the concerned paying agency or checking the eligibility of the expenditure against reported outputs, the Commission should be able to suspend the monthly payments and to interrupt the quarterly reimbursement until the outstanding documents are received. |
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(31)

Member States should send the annual accounts, an annual performance report on the implementation of the CAP Strategic Plan, the annual summary of the final audit reports and the management declaration to the Commission by 15 February every year. Where those documents are not sent, thus preventing the Commission from clearing the accounts for the concerned paying agency or checking the eligibility of the expenditure against reported outputs, the Commission should be able to suspend the monthly payments and to interrupt the quarterly reimbursement until the outstanding documents are received.

| (32) | A new form of payment suspension should be introduced for situations of abnormally low outputs. Where the outputs reported are at an abnormally low level in comparison with the declared expenditure and where Member States cannot provide duly justified reasons for that situation, the Commission should be able, in addition to reducing the expenditure for the financial year N-1, to suspend future expenditure related to the intervention for which the output was abnormally low. Such suspensions should be subject to confirmation in the annual performance clearance decision. |
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(32)

A new form of payment suspension should be introduced for situations of abnormally low outputs. Where the outputs reported are at an abnormally low level in comparison with the declared expenditure and where Member States cannot provide duly justified reasons for that situation, the Commission should be able, in addition to reducing the expenditure for the financial year N-1, to suspend future expenditure related to the intervention for which the output was abnormally low. Such suspensions should be subject to confirmation in the annual performance clearance decision.

| (33) | As regards the multi-annual performance monitoring, the Commission should also be able to suspend payments. Accordingly, in cases of delayed or insufficient progress towards targets set out in a Member State’s CAP Strategic Plan for which the Member State cannot provide duly justified reasons, the Commission should be able to request the Member State concerned to take the necessary remedial actions in accordance with an action plan to be established in consultation with the Commission and containing clear progress indicators together with the timeframe during which the progress is to be achieved. Where the Member State fails to submit or to implement the action plan, where the action plan is manifestly insufficient to remedy the situation or where it has not been modified in accordance with the written request of the Commission, the Commission should be able to suspend the monthly or interim payments. The Commission should reimburse the suspended amounts when, on the basis of the performance review or on the basis of the voluntary notification made during the budgetary year by the Member State on the advancement of the action plan and of the corrective action taken to remedy the shortfall, satisfactory progress towards targets is achieved. |
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(33)

As regards the multi-annual performance monitoring, the Commission should also be able to suspend payments. Accordingly, in cases of delayed or insufficient progress towards targets set out in a Member State’s CAP Strategic Plan for which the Member State cannot provide duly justified reasons, the Commission should be able to request the Member State concerned to take the necessary remedial actions in accordance with an action plan to be established in consultation with the Commission and containing clear progress indicators together with the timeframe during which the progress is to be achieved. Where the Member State fails to submit or to implement the action plan, where the action plan is manifestly insufficient to remedy the situation or where it has not been modified in accordance with the written request of the Commission, the Commission should be able to suspend the monthly or interim payments. The Commission should reimburse the suspended amounts when, on the basis of the performance review or on the basis of the voluntary notification made during the budgetary year by the Member State on the advancement of the action plan and of the corrective action taken to remedy the shortfall, satisfactory progress towards targets is achieved.

| (34) | Given the necessary transition to a result-oriented performance model, the request for an action plan by the Commission for the financial year 2025 should not lead to a suspension of payments before the performance review for the financial year 2026. |
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(34)

Given the necessary transition to a result-oriented performance model, the request for an action plan by the Commission for the financial year 2025 should not lead to a suspension of payments before the performance review for the financial year 2026.

| (35) | As has been the case under Regulation (EU) No 1306/2013, the Commission should be able to suspend payments where serious deficiencies exist in the proper functioning of governance systems, including non-compliance with Union basic requirements and unreliability of reporting. It is, however, necessary to review the conditions for suspending payments in order to make the mechanism more efficient. The financial consequences of such suspensions should be decided in an ad-hoc conformity procedure. |
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(35)

As has been the case under Regulation (EU) No 1306/2013, the Commission should be able to suspend payments where serious deficiencies exist in the proper functioning of governance systems, including non-compliance with Union basic requirements and unreliability of reporting. It is, however, necessary to review the conditions for suspending payments in order to make the mechanism more efficient. The financial consequences of such suspensions should be decided in an ad-hoc conformity procedure.

| (36) | Competent national authorities should make the CAP payments provided for by Union law to the beneficiaries in full. |
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(36)

Competent national authorities should make the CAP payments provided for by Union law to the beneficiaries in full.

| (37) | In order to allow reuse of certain types of CAP-related revenue for the CAP purposes, they should be qualified as assigned revenue. The list of sums contained in Article 43 of Regulation (EU) No 1306/2013 should be amended and those provisions should be harmonised and merged with the existing provisions on assigned revenue. |
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(37)

In order to allow reuse of certain types of CAP-related revenue for the CAP purposes, they should be qualified as assigned revenue. The list of sums contained in Article 43 of Regulation (EU) No 1306/2013 should be amended and those provisions should be harmonised and merged with the existing provisions on assigned revenue.

| (38) | Regulation (EU) No 1306/2013 contains a list of information measures related to the CAP and their objectives and fixes the rules on their financing and on the implementation of the corresponding projects. The specific provisions relating to the objectives and types of information measures to be financed should be carried over into this Regulation. |
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(38)

Regulation (EU) No 1306/2013 contains a list of information measures related to the CAP and their objectives and fixes the rules on their financing and on the implementation of the corresponding projects. The specific provisions relating to the objectives and types of information measures to be financed should be carried over into this Regulation.

| (39) | The financing of measures and interventions under the CAP is largely subject to the principle of shared management. To ensure that Union funds are soundly managed, the Commission should perform checks on how the Member States’ authorities responsible for making payments manage the funds. It is appropriate to define the nature of the checks to be performed by the Commission, to specify the terms of its responsibilities for implementing the Union budget and to clarify the Member States’ cooperation obligations. |
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(39)

The financing of measures and interventions under the CAP is largely subject to the principle of shared management. To ensure that Union funds are soundly managed, the Commission should perform checks on how the Member States’ authorities responsible for making payments manage the funds. It is appropriate to define the nature of the checks to be performed by the Commission, to specify the terms of its responsibilities for implementing the Union budget and to clarify the Member States’ cooperation obligations.

| (40) | In order to enable the Commission to fulfil its obligation to check the existence and proper functioning of management and inspection systems for Union expenditure in the Member States, provision should be made, irrespective of the inspections carried out by Member States themselves, for checks to be carried out by persons authorised by the Commission to act on its behalf who should be able to request assistance from the Member States in their work. |
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(40)

In order to enable the Commission to fulfil its obligation to check the existence and proper functioning of management and inspection systems for Union expenditure in the Member States, provision should be made, irrespective of the inspections carried out by Member States themselves, for checks to be carried out by persons authorised by the Commission to act on its behalf who should be able to request assistance from the Member States in their work.

| (41) | Information technology needs to be used as extensively as possible in order to produce the information to be sent to the Commission. When carrying out checks, the Commission should have full and immediate access to expenditure information recorded in both paper and electronic form. |
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(41)

Information technology needs to be used as extensively as possible in order to produce the information to be sent to the Commission. When carrying out checks, the Commission should have full and immediate access to expenditure information recorded in both paper and electronic form.

| (42) | In order to apply the requirements of the Financial Regulation in relation to the cross-reliance on audits, to reduce the risk of overlap between audits by various institutions, and to minimise the cost of controls and the administrative burden on the beneficiaries and the Member States, it is necessary to set out rules concerning the single audit approach and provide for the possibility for the Commission to take assurance from the work of reliable certification bodies, taking due account of the principles of single audit and proportionality in relation to the level of risk to the Union budget. |
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(42)

In order to apply the requirements of the Financial Regulation in relation to the cross-reliance on audits, to reduce the risk of overlap between audits by various institutions, and to minimise the cost of controls and the administrative burden on the beneficiaries and the Member States, it is necessary to set out rules concerning the single audit approach and provide for the possibility for the Commission to take assurance from the work of reliable certification bodies, taking due account of the principles of single audit and proportionality in relation to the level of risk to the Union budget.

| (43) | As regards the implementation of the single audit approach, whereas generally the Commission should take assurance from the work of the certification bodies, taking account of its own risk assessment of the need for checks it should perform in the Member State concerned, the Commission should be able to carry out checks where it has informed the Member State concerned that it cannot rely on the work of the certification body. Furthermore, the Commission, in order to perform its responsibilities under Article 317 TFEU, should be able to carry out checks where serious deficiencies in the proper functioning of the governance systems may exist which are not followed up by that Member State. |
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(43)

As regards the implementation of the single audit approach, whereas generally the Commission should take assurance from the work of the certification bodies, taking account of its own risk assessment of the need for checks it should perform in the Member State concerned, the Commission should be able to carry out checks where it has informed the Member State concerned that it cannot rely on the work of the certification body. Furthermore, the Commission, in order to perform its responsibilities under Article 317 TFEU, should be able to carry out checks where serious deficiencies in the proper functioning of the governance systems may exist which are not followed up by that Member State.

| (44) | In order to establish the financial relationship between the accredited paying agencies and the Union budget, the Commission should clear the accounts of the paying agencies annually, in the framework of the annual financial clearance. The decision relating to the clearance of accounts should be limited to the completeness, accuracy and veracity of the accounts and should not cover the conformity of the expenditure with Union law. |
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(44)

In order to establish the financial relationship between the accredited paying agencies and the Union budget, the Commission should clear the accounts of the paying agencies annually, in the framework of the annual financial clearance. The decision relating to the clearance of accounts should be limited to the completeness, accuracy and veracity of the accounts and should not cover the conformity of the expenditure with Union law.

| (45) | In line with the new CAP delivery model, an annual performance clearance should be established in order to check the eligibility of the expenditure in relation to the reported outputs. In order to tackle situations where the expenditure declared does not have corresponding reported outputs and the Member States cannot provide justifications for that deviation, a mechanism of reduction of payments should be put in place. |
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(45)

In line with the new CAP delivery model, an annual performance clearance should be established in order to check the eligibility of the expenditure in relation to the reported outputs. In order to tackle situations where the expenditure declared does not have corresponding reported outputs and the Member States cannot provide justifications for that deviation, a mechanism of reduction of payments should be put in place.

| (46) | The Commission is responsible for the implementation of the Union budget in cooperation with Member States in accordance with Article 317 TFEU. The Commission should thus be able to decide whether the expenditure effected by the Member States is in conformity with Union law. Member States should be given the opportunity to justify their decisions to make payments and should have recourse to conciliation where there is no agreement between them and the Commission. In order to give Member States legal and financial assurances as to expenditure effected in the past, a limitation period should be set for the Commission to decide what the financial consequences of non-conformity should be. |
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(46)

The Commission is responsible for the implementation of the Union budget in cooperation with Member States in accordance with Article 317 TFEU. The Commission should thus be able to decide whether the expenditure effected by the Member States is in conformity with Union law. Member States should be given the opportunity to justify their decisions to make payments and should have recourse to conciliation where there is no agreement between them and the Commission. In order to give Member States legal and financial assurances as to expenditure effected in the past, a limitation period should be set for the Commission to decide what the financial consequences of non-conformity should be.

| (47) | Member States are obliged, under Article 9 of Regulation (EU) 2021/2115, to implement their CAP Strategic Plans as approved by the Commission in accordance with Articles 118 and 119 of that Regulation. Since that obligation constitutes a basic Union requirement, the Commission should, where serious deficiencies in a Member State’s implementation of its CAP Strategic Plan are detected, be able to decide to exclude from Union financing the expenditure at risk that is affected by such deficiencies. |
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(47)

Member States are obliged, under Article 9 of Regulation (EU) 2021/2115, to implement their CAP Strategic Plans as approved by the Commission in accordance with Articles 118 and 119 of that Regulation. Since that obligation constitutes a basic Union requirement, the Commission should, where serious deficiencies in a Member State’s implementation of its CAP Strategic Plan are detected, be able to decide to exclude from Union financing the expenditure at risk that is affected by such deficiencies.

| (48) | In order to safeguard the financial interests of the Union budget, Member States should put in place systems in order to ensure that interventions financed by the EAGF and EAFRD are actually carried out and are executed correctly, while maintaining the current robust framework for sound financial management. Those systems should include performing checks on beneficiaries by assessing their compliance with the eligibility criteria and other conditions, as well as obligations set out in the CAP Strategic Plans and applicable Union rules. |
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(48)

In order to safeguard the financial interests of the Union budget, Member States should put in place systems in order to ensure that interventions financed by the EAGF and EAFRD are actually carried out and are executed correctly, while maintaining the current robust framework for sound financial management. Those systems should include performing checks on beneficiaries by assessing their compliance with the eligibility criteria and other conditions, as well as obligations set out in the CAP Strategic Plans and applicable Union rules.

| (49) | In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council (10) and Council Regulations (EC, Euratom) No 2988/95 (11), (Euratom, EC) No 2185/96 (12) and (EU) 2017/1939 (13), the financial interests of the Union are to be protected by means of proportionate measures, including measures relating to the prevention, detection, correction and investigation of irregularities, including fraud, to the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, to the imposition of administrative penalties.
  In particular, in accordance with Regulations (Euratom, EC) No 2185/96 and (EU, Euratom) No 883/2013, the European Anti-Fraud Office (OLAF) has the power to carry out administrative investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. The European Public Prosecutor’s Office (EPPO) is empowered, in accordance with Regulation (EU) 2017/1939, to investigate and prosecute criminal offences affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council (14). In accordance with the Financial Regulation, any person or entity receiving Union funds is to fully cooperate in the protection of the financial interests of the Union, to grant the necessary rights and access to the Commission, OLAF, the Court of Auditors and, in respect of those Member States participating in enhanced cooperation pursuant to Regulation (EU) 2017/1939, the EPPO and to ensure that any third parties involved in the implementation of Union funds grant equivalent rights. |
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(49)

In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council (10) and Council Regulations (EC, Euratom) No 2988/95 (11), (Euratom, EC) No 2185/96 (12) and (EU) 2017/1939 (13), the financial interests of the Union are to be protected by means of proportionate measures, including measures relating to the prevention, detection, correction and investigation of irregularities, including fraud, to the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, to the imposition of administrative penalties.

In particular, in accordance with Regulations (Euratom, EC) No 2185/96 and (EU, Euratom) No 883/2013, the European Anti-Fraud Office (OLAF) has the power to carry out administrative investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. The European Public Prosecutor’s Office (EPPO) is empowered, in accordance with Regulation (EU) 2017/1939, to investigate and prosecute criminal offences affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council (14). In accordance with the Financial Regulation, any person or entity receiving Union funds is to fully cooperate in the protection of the financial interests of the Union, to grant the necessary rights and access to the Commission, OLAF, the Court of Auditors and, in respect of those Member States participating in enhanced cooperation pursuant to Regulation (EU) 2017/1939, the EPPO and to ensure that any third parties involved in the implementation of Union funds grant equivalent rights.

| (50) | Member States should have the systems in place allowing them to report to the Commission, for the purpose of enabling OLAF to exercise its powers and ensure an efficient analysis of cases of irregularity, on detected irregularities and other cases of non-compliance with the conditions established by Member States in the CAP Strategic Plans, including fraud, and on their follow-up, as well as on the follow-up of OLAF investigations. To ensure the effective examination of complaints concerning the EAGF and EAFRD, Member States should have in place the necessary arrangements. |
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(50)

Member States should have the systems in place allowing them to report to the Commission, for the purpose of enabling OLAF to exercise its powers and ensure an efficient analysis of cases of irregularity, on detected irregularities and other cases of non-compliance with the conditions established by Member States in the CAP Strategic Plans, including fraud, and on their follow-up, as well as on the follow-up of OLAF investigations. To ensure the effective examination of complaints concerning the EAGF and EAFRD, Member States should have in place the necessary arrangements.

| (51) | In accordance with the principle of subsidiarity, Member States should, upon the request of the Commission, examine complaints submitted to the Commission falling within the scope of their CAP Strategic Plans and should inform the Commission of the results of those examinations. The Commission should ensure that complaints directly lodged with it are adequately followed up, in accordance with the discretionary power the Commission enjoys in deciding which cases to pursue (15). |
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(51)

In accordance with the principle of subsidiarity, Member States should, upon the request of the Commission, examine complaints submitted to the Commission falling within the scope of their CAP Strategic Plans and should inform the Commission of the results of those examinations. The Commission should ensure that complaints directly lodged with it are adequately followed up, in accordance with the discretionary power the Commission enjoys in deciding which cases to pursue (15).

| (52) | In order to assist the Member States in ensuring effective protection of the financial interests of the Union, the Commission should make available to them a data-mining tool to assess risks. The Commission should present, by the year 2025, a report assessing the use of the single data-mining tool and its interoperability with a view to its generalised use by Member States,, accompanied, if necessary, by appropriate proposals. |
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(52)

In order to assist the Member States in ensuring effective protection of the financial interests of the Union, the Commission should make available to them a data-mining tool to assess risks. The Commission should present, by the year 2025, a report assessing the use of the single data-mining tool and its interoperability with a view to its generalised use by Member States,, accompanied, if necessary, by appropriate proposals.

| (53) | Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 TFEU apply to this Regulation. Those rules are laid down in the Financial Regulation and determine in particular the procedure for establishing and implementing the budget through grants, procurement, prizes and indirect implementation, and provide for checks on the responsibility of financial actors. Rules adopted on the basis of Article 322 TFEU also concern the protection of the Union budget in the case of generalised deficiencies as regards the rule of law in the Member States, as the respect for the rule of law is an essential precondition for sound financial management and effective Union funding. |
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(53)

Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 TFEU apply to this Regulation. Those rules are laid down in the Financial Regulation and determine in particular the procedure for establishing and implementing the budget through grants, procurement, prizes and indirect implementation, and provide for checks on the responsibility of financial actors. Rules adopted on the basis of Article 322 TFEU also concern the protection of the Union budget in the case of generalised deficiencies as regards the rule of law in the Member States, as the respect for the rule of law is an essential precondition for sound financial management and effective Union funding.

| (54) | It is appropriate to ensure that the refusal or recovery of payments as a result of non-compliance with public procurement rules reflects the gravity of such non-compliance and respects the principle of proportionality, as expressed, for example, in the relevant guidelines established by the Commission for financial corrections to be made to expenditure financed by the Union under shared management for non-compliance with such rules. It is further appropriate to clarify that such non-compliance affects the legality and regularity of the transactions only up to the level of the part of the aid not to be paid or to be withdrawn. |
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(54)

It is appropriate to ensure that the refusal or recovery of payments as a result of non-compliance with public procurement rules reflects the gravity of such non-compliance and respects the principle of proportionality, as expressed, for example, in the relevant guidelines established by the Commission for financial corrections to be made to expenditure financed by the Union under shared management for non-compliance with such rules. It is further appropriate to clarify that such non-compliance affects the legality and regularity of the transactions only up to the level of the part of the aid not to be paid or to be withdrawn.

| (55) | Various provisions of agricultural legislation require that security be lodged to ensure the payment of a sum due if an obligation is not met. In order to strengthen the framework for securities, a single horizontal rule should apply to all those provisions. |
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(55)

Various provisions of agricultural legislation require that security be lodged to ensure the payment of a sum due if an obligation is not met. In order to strengthen the framework for securities, a single horizontal rule should apply to all those provisions.

| (56) | Member States should set up and operate an integrated administration and control system (the ‘integrated system’) for certain interventions provided for in Regulation (EU) 2021/2115 and for the measures referred to in Chapter IV of Regulation (EU) No 228/2013 of the European Parliament and of the Council (16) and in Chapter IV of Regulation (EU) No 229/2013 of the European Parliament and of the Council (17). In order to improve the effectiveness and monitoring of Union support, Member States should be authorised to make use of the integrated system for other Union interventions. |
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(56)

Member States should set up and operate an integrated administration and control system (the ‘integrated system’) for certain interventions provided for in Regulation (EU) 2021/2115 and for the measures referred to in Chapter IV of Regulation (EU) No 228/2013 of the European Parliament and of the Council (16) and in Chapter IV of Regulation (EU) No 229/2013 of the European Parliament and of the Council (17). In order to improve the effectiveness and monitoring of Union support, Member States should be authorised to make use of the integrated system for other Union interventions.

| (57) | To ensure a level playing field between beneficiaries in different Member States, certain general rules should be introduced on controls and penalties at Union level. |
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(57)

To ensure a level playing field between beneficiaries in different Member States, certain general rules should be introduced on controls and penalties at Union level.

| (58) | The existing main elements of the integrated system and, in particular, the provisions concerning a system for identifying agricultural parcels, a geo-spatial and an animal-based application system, a system for identifying and registering payment entitlements, a system for recording the identity of beneficiaries and a control and penalty system should be maintained. Member States should continue to use data or information products provided by the Copernicus programme, in addition to information technologies such as Galileo and EGNOS, in order to ensure that comprehensive and comparable data is available throughout the Union for the purposes of monitoring agri-environment-climate policy, including the CAP’s impact, environmental performance, and progress towards Union targets, and for the purposes of boosting the use of full, free and open data and information captured by Copernicus Sentinels satellites and services. To that end, the integrated system should include also an area monitoring system. |
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(58)

The existing main elements of the integrated system and, in particular, the provisions concerning a system for identifying agricultural parcels, a geo-spatial and an animal-based application system, a system for identifying and registering payment entitlements, a system for recording the identity of beneficiaries and a control and penalty system should be maintained. Member States should continue to use data or information products provided by the Copernicus programme, in addition to information technologies such as Galileo and EGNOS, in order to ensure that comprehensive and comparable data is available throughout the Union for the purposes of monitoring agri-environment-climate policy, including the CAP’s impact, environmental performance, and progress towards Union targets, and for the purposes of boosting the use of full, free and open data and information captured by Copernicus Sentinels satellites and services. To that end, the integrated system should include also an area monitoring system.

| (59) | The integrated system, as part of the governance systems which should be in place in order to implement the CAP, should ensure that the aggregate data provided in the annual performance reporting is reliable and verifiable. Given the importance of a properly functioning integrated system, it is necessary to set quality requirements. Member States should carry out an annual quality assessment of the identification system for agricultural parcels, of the geo-spatial application system and of the area monitoring system. Member States should also address any deficiencies and, if so requested by the Commission, set up an action plan. |
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(59)

The integrated system, as part of the governance systems which should be in place in order to implement the CAP, should ensure that the aggregate data provided in the annual performance reporting is reliable and verifiable. Given the importance of a properly functioning integrated system, it is necessary to set quality requirements. Member States should carry out an annual quality assessment of the identification system for agricultural parcels, of the geo-spatial application system and of the area monitoring system. Member States should also address any deficiencies and, if so requested by the Commission, set up an action plan.

| (60) | The Commission communications entitled ‘The Future of Food and Farming’, the ‘European Green Deal’, the ‘Farm to Fork Strategy – for a fair, healthy and environmentally friendly food system’ and ‘EU Biodiversity Strategy for 2030 – Bringing nature back into our lives’ set out the bolstering of environmental care and climate action and the contribution to the achievement of Union environmental and climate objectives and targets as a strategic orientation of the future CAP. Hence, sharing land-parcel identification system and other integrated administration and control system data has become necessary for environmental and climate purposes at national and Union level. Provision should therefore be made for sharing the data collected through the integrated system, which is relevant for environmental and climate purposes, between Member States’ public authorities and with the Union institutions and bodies. In order to increase efficiency in using data available to different public authorities for the production of European statistics, it should also be provided that data from the integrated system is to be made available for statistical purposes to bodies which are part of the European Statistical System. |
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(60)

The Commission communications entitled ‘The Future of Food and Farming’, the ‘European Green Deal’, the ‘Farm to Fork Strategy – for a fair, healthy and environmentally friendly food system’ and ‘EU Biodiversity Strategy for 2030 – Bringing nature back into our lives’ set out the bolstering of environmental care and climate action and the contribution to the achievement of Union environmental and climate objectives and targets as a strategic orientation of the future CAP. Hence, sharing land-parcel identification system and other integrated administration and control system data has become necessary for environmental and climate purposes at national and Union level. Provision should therefore be made for sharing the data collected through the integrated system, which is relevant for environmental and climate purposes, between Member States’ public authorities and with the Union institutions and bodies. In order to increase efficiency in using data available to different public authorities for the production of European statistics, it should also be provided that data from the integrated system is to be made available for statistical purposes to bodies which are part of the European Statistical System.

| (61) | The scrutiny of commercial documents of undertakings that receive or make payments can be a highly effective means of surveillance of transactions forming part of the system of financing by the EAGF. That scrutiny supplements other checks already carried out by the Member States. Furthermore, national provisions relating to scrutiny should be allowed to go beyond what is required by Union law. |
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(61)

The scrutiny of commercial documents of undertakings that receive or make payments can be a highly effective means of surveillance of transactions forming part of the system of financing by the EAGF. That scrutiny supplements other checks already carried out by the Member States. Furthermore, national provisions relating to scrutiny should be allowed to go beyond what is required by Union law.

| (62) | The documents that should be used as a basis for such scrutiny should be selected in such a way as to enable a full scrutiny to be carried out. The undertakings to be scrutinised should be chosen on the basis of the nature of the transactions carried out under their responsibility, and the breakdown per sector of the undertakings receiving or making payments should be selected according to their financial importance in the system of financing by the EAGF. |
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(62)

The documents that should be used as a basis for such scrutiny should be selected in such a way as to enable a full scrutiny to be carried out. The undertakings to be scrutinised should be chosen on the basis of the nature of the transactions carried out under their responsibility, and the breakdown per sector of the undertakings receiving or making payments should be selected according to their financial importance in the system of financing by the EAGF.

| (63) | It is necessary to set out the mandate of the officials responsible for carrying out the scrutiny and to define the obligations of undertakings to make commercial documents available to such officials for a specified period, as well as to supply any information that may be requested of them by the officials. It should also be possible for commercial documents to be seized in certain cases. |
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(63)

It is necessary to set out the mandate of the officials responsible for carrying out the scrutiny and to define the obligations of undertakings to make commercial documents available to such officials for a specified period, as well as to supply any information that may be requested of them by the officials. It should also be possible for commercial documents to be seized in certain cases.

| (64) | Having regard to the international structure of agricultural trade and in the interest of the proper functioning of the internal market, it is necessary to organise cooperation among the Member States. It is also necessary to set up a centralised documentation system at Union level concerning undertakings which are established in third countries and which receive or make payments. |
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(64)

Having regard to the international structure of agricultural trade and in the interest of the proper functioning of the internal market, it is necessary to organise cooperation among the Member States. It is also necessary to set up a centralised documentation system at Union level concerning undertakings which are established in third countries and which receive or make payments.

| (65) | While the Member States are responsible for adopting their own scrutiny programmes, it is necessary for those programmes to be communicated to the Commission so that it can assume its supervisory and coordinating role, ensuring that the programmes are adopted on the basis of appropriate criteria and guaranteeing that the scrutiny is concentrated on sectors or undertakings where the risk of fraud is high. It is essential for each Member State to designate a body or bodies responsible for monitoring the scrutiny of commercial documents and for coordinating that scrutiny. Those designated bodies should be independent of the departments that carry out the scrutiny prior to payment. Information collected in the course of that scrutiny should be protected by professional secrecy. |
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(65)

While the Member States are responsible for adopting their own scrutiny programmes, it is necessary for those programmes to be communicated to the Commission so that it can assume its supervisory and coordinating role, ensuring that the programmes are adopted on the basis of appropriate criteria and guaranteeing that the scrutiny is concentrated on sectors or undertakings where the risk of fraud is high. It is essential for each Member State to designate a body or bodies responsible for monitoring the scrutiny of commercial documents and for coordinating that scrutiny. Those designated bodies should be independent of the departments that carry out the scrutiny prior to payment. Information collected in the course of that scrutiny should be protected by professional secrecy.

| (66) | Conditionality is an important element of the CAP which ensures that payments promote a high degree of sustainability and ensure a level playing field for farmers within Member States and within the Union, in particular with regard to the social, environmental and climate elements of the CAP but also concerning public health and animal welfare. This implies that controls should be carried out and, where necessary, penalties should be applied to ensure the effectiveness of the conditionality system. To ensure such a level playing field between beneficiaries in different Member States, certain general rules on conditionality and on controls and penalties related to non-compliance should be introduced at Union level. |
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(66)

Conditionality is an important element of the CAP which ensures that payments promote a high degree of sustainability and ensure a level playing field for farmers within Member States and within the Union, in particular with regard to the social, environmental and climate elements of the CAP but also concerning public health and animal welfare. This implies that controls should be carried out and, where necessary, penalties should be applied to ensure the effectiveness of the conditionality system. To ensure such a level playing field between beneficiaries in different Member States, certain general rules on conditionality and on controls and penalties related to non-compliance should be introduced at Union level.

| (67) | To ensure that conditionality is enforced by Member States in a harmonised way, it is necessary to provide for a minimum control rate at Union level, while the organisation of competent control bodies and controls should be left to the discretion of Member States. |
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(67)

To ensure that conditionality is enforced by Member States in a harmonised way, it is necessary to provide for a minimum control rate at Union level, while the organisation of competent control bodies and controls should be left to the discretion of Member States.

| (68) | While Member States should be allowed to set out the details on penalties, those penalties should be proportionate, effective and dissuasive and should be without prejudice to other penalties laid down under Union or national law. To ensure the proportionality, effectiveness and dissuasive effect of the penalties, it is appropriate to lay down the rules for the application and calculation of such penalties. Taking into account the judgment of the Court of Justice of the European Union (‘Court of Justice’) in case C-361/19 (18), to ensure the link between the farmer’s behaviour and the penalty, it should be laid down that, as a general rule, the penalty should be calculated on the basis of the payments granted or to be granted in the calendar year in which the non-compliance occurred. However, where the nature of the finding does not allow for the year in which the non-compliance occurred to be established, in order to ensure the effectiveness of the penalty system, it is necessary to establish that, for those cases, the penalty should be calculated on the basis of the payments granted or to be granted in the calendar year in which the non-compliance was detected. To ensure an effective and coherent approach by Member States, it is necessary to provide for a minimum penalty rate at Union level for non-compliance. Such minimum rates should be applied by Member States depending on the severity, extent, permanence or reoccurrence and intentionality of the non-compliance determined. To ensure proportionality of the penalties, Member States should provide that no penalties are to be applied where the non-compliance has no or only insignificant consequences for the achievement of the objective of the standard or requirement concerned, and set up an awareness mechanism to ensure that beneficiaries are informed about the non-compliance detected and possible remedial actions to be taken. |
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(68)

While Member States should be allowed to set out the details on penalties, those penalties should be proportionate, effective and dissuasive and should be without prejudice to other penalties laid down under Union or national law. To ensure the proportionality, effectiveness and dissuasive effect of the penalties, it is appropriate to lay down the rules for the application and calculation of such penalties. Taking into account the judgment of the Court of Justice of the European Union (‘Court of Justice’) in case C-361/19 (18), to ensure the link between the farmer’s behaviour and the penalty, it should be laid down that, as a general rule, the penalty should be calculated on the basis of the payments granted or to be granted in the calendar year in which the non-compliance occurred. However, where the nature of the finding does not allow for the year in which the non-compliance occurred to be established, in order to ensure the effectiveness of the penalty system, it is necessary to establish that, for those cases, the penalty should be calculated on the basis of the payments granted or to be granted in the calendar year in which the non-compliance was detected. To ensure an effective and coherent approach by Member States, it is necessary to provide for a minimum penalty rate at Union level for non-compliance. Such minimum rates should be applied by Member States depending on the severity, extent, permanence or reoccurrence and intentionality of the non-compliance determined. To ensure proportionality of the penalties, Member States should provide that no penalties are to be applied where the non-compliance has no or only insignificant consequences for the achievement of the objective of the standard or requirement concerned, and set up an awareness mechanism to ensure that beneficiaries are informed about the non-compliance detected and possible remedial actions to be taken.

| (69) | The social conditionality mechanism should be based on the enforcement procedures that are carried out by the competent enforcement authorities or bodies responsible for controls on working and employment conditions and applicable labour standards. Such enforcement procedures may take various forms depending on the national system. The outcome of the controls and the enforcement procedure should be communicated to the paying agencies along with a ranked assessment of the gravity of the breach of the relevant legislation. |
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(69)

The social conditionality mechanism should be based on the enforcement procedures that are carried out by the competent enforcement authorities or bodies responsible for controls on working and employment conditions and applicable labour standards. Such enforcement procedures may take various forms depending on the national system. The outcome of the controls and the enforcement procedure should be communicated to the paying agencies along with a ranked assessment of the gravity of the breach of the relevant legislation.

| (70) | When applying the social conditionality mechanism in the CAP Strategic Plans and in the respective agreements between the paying agencies and the authorities or bodies responsible for the enforcement of social and employment legislation and applicable labour standards, great care should be taken to respect the autonomy of those enforcement authorities or bodies and the specific manner in which social and employment legislation and applicable labour standards are implemented and enforced in each Member State. That mechanism should remain independent from, and should not affect, the functioning of the particular social model of each Member State, nor should it in any way affect the independence of the judiciary. To that end, a clear separation of responsibilities should be ensured between the authorities or bodies responsible for the enforcement of social and employment legislation and applicable labour standards on the one hand and the agricultural paying agencies on the other, the role of the latter being execution of payments and application of penalties. The autonomy of social partners, as well as their right to negotiate and conclude collective agreements, should be fully respected. Their autonomy should also be respected where social partners are responsible for carrying out controls on working conditions. |
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(70)

When applying the social conditionality mechanism in the CAP Strategic Plans and in the respective agreements between the paying agencies and the authorities or bodies responsible for the enforcement of social and employment legislation and applicable labour standards, great care should be taken to respect the autonomy of those enforcement authorities or bodies and the specific manner in which social and employment legislation and applicable labour standards are implemented and enforced in each Member State. That mechanism should remain independent from, and should not affect, the functioning of the particular social model of each Member State, nor should it in any way affect the independence of the judiciary. To that end, a clear separation of responsibilities should be ensured between the authorities or bodies responsible for the enforcement of social and employment legislation and applicable labour standards on the one hand and the agricultural paying agencies on the other, the role of the latter being execution of payments and application of penalties. The autonomy of social partners, as well as their right to negotiate and conclude collective agreements, should be fully respected. Their autonomy should also be respected where social partners are responsible for carrying out controls on working conditions.

| (71) | To ensure harmonious cooperation between the Commission and the Member States regarding the financing of CAP expenditure, and in particular to allow the Commission to monitor the financial management by the Member States and to clear the accounts of the accredited paying agencies, it is necessary for the Member States to retain specific information and to communicate it to the Commission. |
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(71)

To ensure harmonious cooperation between the Commission and the Member States regarding the financing of CAP expenditure, and in particular to allow the Commission to monitor the financial management by the Member States and to clear the accounts of the accredited paying agencies, it is necessary for the Member States to retain specific information and to communicate it to the Commission.

| (72) | For the purposes of compiling the data to be sent to the Commission, and to enable the Commission to have full immediate access to expenditure data in both paper and electronic form, suitable rules on the presentation and transmission of data, including rules on time limits, need to be laid down. |
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(72)

For the purposes of compiling the data to be sent to the Commission, and to enable the Commission to have full immediate access to expenditure data in both paper and electronic form, suitable rules on the presentation and transmission of data, including rules on time limits, need to be laid down.

| (73) | As personal data or sensitive business information might be affected by the application of the national control systems and the conformity clearance, Member States and the Commission should ensure the confidentiality of the information received in that context. |
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(73)

As personal data or sensitive business information might be affected by the application of the national control systems and the conformity clearance, Member States and the Commission should ensure the confidentiality of the information received in that context.

| (74) | In the interests of sound financial management of the Union budget and impartiality of treatment at both Member State and beneficiary level, rules on the use of the euro should be laid down. |
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(74)

In the interests of sound financial management of the Union budget and impartiality of treatment at both Member State and beneficiary level, rules on the use of the euro should be laid down.

| (75) | The rate of exchange of the euro into national currencies may vary in the course of the period during which an operation is carried out. Therefore, the rate applicable to the amounts concerned should be determined taking into account the event through which the economic objective of the operation is achieved. The rate of exchange applied should be that applicable for the date on which that event occurs. It is necessary to specify that operative event or the waiver of its application, whilst complying with certain criteria and in particular those concerning the rapidity with which currency movements are passed on. Special rules should be laid down for dealing with exceptional monetary situations arising either within the Union or on the world market and requiring immediate action to ensure that the arrangements established under the CAP operate effectively. |
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(75)

The rate of exchange of the euro into national currencies may vary in the course of the period during which an operation is carried out. Therefore, the rate applicable to the amounts concerned should be determined taking into account the event through which the economic objective of the operation is achieved. The rate of exchange applied should be that applicable for the date on which that event occurs. It is necessary to specify that operative event or the waiver of its application, whilst complying with certain criteria and in particular those concerning the rapidity with which currency movements are passed on. Special rules should be laid down for dealing with exceptional monetary situations arising either within the Union or on the world market and requiring immediate action to ensure that the arrangements established under the CAP operate effectively.

| (76) | Member States that have not adopted the euro should have the option of making payments for expenditure resulting from the CAP legislation in euros rather than in national currency. Specific rules are needed to ensure that this option does not lead to any unjustified advantage for parties making or receiving payment. |
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(76)

Member States that have not adopted the euro should have the option of making payments for expenditure resulting from the CAP legislation in euros rather than in national currency. Specific rules are needed to ensure that this option does not lead to any unjustified advantage for parties making or receiving payment.

| (77) | Union law concerning the protection of individuals with regard to the processing of personal data and on the free movement of such data, in particular Regulations (EU) 2016/679 (19) and (EU) 2018/1725 (20) of the European Parliament and of the Council, should be applicable to the collection of personal data by the Member States and the Commission for the purposes of carrying out their respective management, control, audit and monitoring and evaluation obligations under this Regulation. |
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(77)

Union law concerning the protection of individuals with regard to the processing of personal data and on the free movement of such data, in particular Regulations (EU) 2016/679 (19) and (EU) 2018/1725 (20) of the European Parliament and of the Council, should be applicable to the collection of personal data by the Member States and the Commission for the purposes of carrying out their respective management, control, audit and monitoring and evaluation obligations under this Regulation.

| (78) | The publication of the name of the beneficiaries of the EAGF and EAFRD provides a means of reinforcing the public control of the use of those funds and is necessary to ensure an adequate level of protection of the Union’s financial interest. That is achieved partly by the preventive and deterrent effect of such publication, partly by discouraging individual beneficiaries from irregular behaviour and also partly by reinforcing the personal accountability of the farmers for use of public funds received. The publication of the relevant information is consistent with recent case-law of the Court of Justice and also with the approach set out in the Financial Regulation. |
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(78)

The publication of the name of the beneficiaries of the EAGF and EAFRD provides a means of reinforcing the public control of the use of those funds and is necessary to ensure an adequate level of protection of the Union’s financial interest. That is achieved partly by the preventive and deterrent effect of such publication, partly by discouraging individual beneficiaries from irregular behaviour and also partly by reinforcing the personal accountability of the farmers for use of public funds received. The publication of the relevant information is consistent with recent case-law of the Court of Justice and also with the approach set out in the Financial Regulation.

| (79) | In that context, the role played by civil society, including by the media and non-governmental organisations, and their contribution to reinforcing the administrations’ control framework against fraud and any misuse of public funds, should be properly recognised. |
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(79)

In that context, the role played by civil society, including by the media and non-governmental organisations, and their contribution to reinforcing the administrations’ control framework against fraud and any misuse of public funds, should be properly recognised.

| (80) | Regulation (EU) 2021/1060 of the European Parliament and of the Council (21) lays down rules providing for transparency in implementing the European structural and investment funds and in the communication of programmes under those funds. To ensure coherence, it should be provided that those rules apply also to beneficiaries of EAGF and EAFRD interventions, where relevant. |
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(80)

Regulation (EU) 2021/1060 of the European Parliament and of the Council (21) lays down rules providing for transparency in implementing the European structural and investment funds and in the communication of programmes under those funds. To ensure coherence, it should be provided that those rules apply also to beneficiaries of EAGF and EAFRD interventions, where relevant.

| (81) | If the objective of the public control of the use of the money from the EAGF and EAFRD is to be achieved, a certain level of information about beneficiaries needs to be brought to the attention of the public. That information should include data on the identity of the beneficiary, the amount awarded, the fund from which it comes, and the purpose and the specific objective of the operation concerned. That information should be published in such a way as to cause the least interference with the beneficiaries’ right to respect for private life and their right to protection of their personal data. Both those rights are recognised in Articles 7 and 8 of the Charter of Fundamental Rights of the European Union. |
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(81)

If the objective of the public control of the use of the money from the EAGF and EAFRD is to be achieved, a certain level of information about beneficiaries needs to be brought to the attention of the public. That information should include data on the identity of the beneficiary, the amount awarded, the fund from which it comes, and the purpose and the specific objective of the operation concerned. That information should be published in such a way as to cause the least interference with the beneficiaries’ right to respect for private life and their right to protection of their personal data. Both those rights are recognised in Articles 7 and 8 of the Charter of Fundamental Rights of the European Union.

| (82) | Taking into consideration the need for greater transparency regarding distribution of funds for the CAP from the EAGF and EAFRD, including as regards ownership structures linked to CAP beneficiaries, the list of beneficiaries of CAP funds, published ex-post by Member State, should also allow for the identification of groups of undertakings. This would significantly contribute to the monitoring of ownership structures and facilitate the investigation of potential misuse of Union funds, conflicts of interest and corruption. |
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(82)

Taking into consideration the need for greater transparency regarding distribution of funds for the CAP from the EAGF and EAFRD, including as regards ownership structures linked to CAP beneficiaries, the list of beneficiaries of CAP funds, published ex-post by Member State, should also allow for the identification of groups of undertakings. This would significantly contribute to the monitoring of ownership structures and facilitate the investigation of potential misuse of Union funds, conflicts of interest and corruption.

| (83) | Publishing details about the operation entitling the farmer to receive aid and about the purpose and the specific objective of the aid provides the public with concrete information on the subsidised activity and the purpose for which the aid was granted. Providing such oversight to the public would have a preventive and deterrent effect and would help to protect the financial interest of the Union. |
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(83)

Publishing details about the operation entitling the farmer to receive aid and about the purpose and the specific objective of the aid provides the public with concrete information on the subsidised activity and the purpose for which the aid was granted. Providing such oversight to the public would have a preventive and deterrent effect and would help to protect the financial interest of the Union.

| (84) | Publishing such information together with the general information provided for in this Regulation enhances transparency regarding the use of Union funds in the CAP, thus contributing to the visibility and better understanding of that policy. It enables citizens to participate more closely in the decision-making process and ensures that the administration enjoys greater legitimacy and is more effective and more accountable to the citizen. It also brings concrete examples of the provision of public goods by farming to the attention of citizens, thereby underpinning the legitimacy of national and Union support for the agricultural sector. |
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(84)

Publishing such information together with the general information provided for in this Regulation enhances transparency regarding the use of Union funds in the CAP, thus contributing to the visibility and better understanding of that policy. It enables citizens to participate more closely in the decision-making process and ensures that the administration enjoys greater legitimacy and is more effective and more accountable to the citizen. It also brings concrete examples of the provision of public goods by farming to the attention of citizens, thereby underpinning the legitimacy of national and Union support for the agricultural sector.

| (85) | It follows, therefore, that providing for the general publication of the relevant information does not go beyond what is necessary in a democratic society in view of the need to protect the Union’s financial interests as well as the overriding objective of the public oversight of the use of the money from the EAGF and EAFRD. |
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(85)

It follows, therefore, that providing for the general publication of the relevant information does not go beyond what is necessary in a democratic society in view of the need to protect the Union’s financial interests as well as the overriding objective of the public oversight of the use of the money from the EAGF and EAFRD.

| (86) | In order to comply with data protection requirements, beneficiaries of the EAGF and EAFRD should be informed of the publication of their data before that publication takes place. They should also be informed that that data may be processed by auditing and investigating bodies of the Union and Member States for the purposes of safeguarding the Union’s financial interests. Furthermore, the beneficiaries should be informed about their rights under Regulation (EU) 2016/679 and the procedures applicable for exercising those rights. |
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(86)

In order to comply with data protection requirements, beneficiaries of the EAGF and EAFRD should be informed of the publication of their data before that publication takes place. They should also be informed that that data may be processed by auditing and investigating bodies of the Union and Member States for the purposes of safeguarding the Union’s financial interests. Furthermore, the beneficiaries should be informed about their rights under Regulation (EU) 2016/679 and the procedures applicable for exercising those rights.

| (87) | In order to supplement or amend certain non-essential elements of this Regulation, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making (22). In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. |
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(87)

In order to supplement or amend certain non-essential elements of this Regulation, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making (22). In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

| (88) | With a view to ensuring the sound operation of the paying agencies and coordinating bodies, the funding by the EAGF of the public intervention expenditure and the proper management of the appropriations entered in the Union budget for the EAGF, that delegation of power should concern the minimum conditions for the accreditation of the paying agencies and the designation and accreditation of coordinating bodies, the obligations of the paying agencies as regards public intervention, the rules on the content of the management and control responsibilities of the paying agencies. Furthermore, in order to ensure the coherent application of the financial discipline in the Member States, that delegation of power should also cover the rules for the calculation of financial discipline to be applied by Member States to farmers. In order to ensure the proper management of the public intervention expenditure, that delegation of power should also cover the types of measure to be financed by the Union budget under public intervention and the reimbursement conditions, the eligibility conditions and calculation methods based on the information actually observed by the paying agencies, on flat-rates determined by the Commission, or on flat-rate or non-flat-rate amounts provided for by the agricultural legislation in specific sectors, the valuation of the operations in connection with public intervention, the measures to be taken in the case of loss or deterioration of products under the public intervention, and the determination of the amounts to be financed. |
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(88)

With a view to ensuring the sound operation of the paying agencies and coordinating bodies, the funding by the EAGF of the public intervention expenditure and the proper management of the appropriations entered in the Union budget for the EAGF, that delegation of power should concern the minimum conditions for the accreditation of the paying agencies and the designation and accreditation of coordinating bodies, the obligations of the paying agencies as regards public intervention, the rules on the content of the management and control responsibilities of the paying agencies. Furthermore, in order to ensure the coherent application of the financial discipline in the Member States, that delegation of power should also cover the rules for the calculation of financial discipline to be applied by Member States to farmers. In order to ensure the proper management of the public intervention expenditure, that delegation of power should also cover the types of measure to be financed by the Union budget under public intervention and the reimbursement conditions, the eligibility conditions and calculation methods based on the information actually observed by the paying agencies, on flat-rates determined by the Commission, or on flat-rate or non-flat-rate amounts provided for by the agricultural legislation in specific sectors, the valuation of the operations in connection with public intervention, the measures to be taken in the case of loss or deterioration of products under the public intervention, and the determination of the amounts to be financed.

| (89) | In order to enable the Commission to make expenditure effected before the earliest possible date of payment or after the latest possible date of payment eligible for Union financing, while limiting the financial impact of doing so, that delegation of power should also cover derogations from the ineligibility of payments made by the paying agencies to the beneficiaries before the earliest or after the latest possible date of payment. In addition, in order to have clear rules and conditions for the Member States, that delegation of power should cover the rate of suspension of payments in relation to the annual clearances, as well as the rate and duration of suspension of payments and the condition for reimbursing or reducing those amounts with regard to the multi-annual performance monitoring. That delegation of power should also cover the interventions or measures for which the Member States may pay advances, with the aim of ensuring continuity with the rules set out in Regulation (EU) No 1306/2013 and the relevant implementing and delegated acts, while respecting the financial limits of Article 11(2), point (b), of the Financial Regulation. To take account of revenue collected by paying agencies for the Union budget when making payments on the basis of the expenditure declarations submitted by Member States, that delegation of power should also cover the conditions under which certain types of expenditure and revenue under the EAGF and EAFRD are to be compensated. Moreover, and with a view to enabling the equitable distribution of the appropriations available between the Member States, that delegation of power should cover the methods applicable to the commitments and the payment of the amounts if the Union budget has not been adopted by the beginning of the budgetary year or if the total amount of the commitments scheduled exceeds the threshold laid down in Article 11(2) of the Financial Regulation. |
| --- | --- |

(89)

In order to enable the Commission to make expenditure effected before the earliest possible date of payment or after the latest possible date of payment eligible for Union financing, while limiting the financial impact of doing so, that delegation of power should also cover derogations from the ineligibility of payments made by the paying agencies to the beneficiaries before the earliest or after the latest possible date of payment. In addition, in order to have clear rules and conditions for the Member States, that delegation of power should cover the rate of suspension of payments in relation to the annual clearances, as well as the rate and duration of suspension of payments and the condition for reimbursing or reducing those amounts with regard to the multi-annual performance monitoring. That delegation of power should also cover the interventions or measures for which the Member States may pay advances, with the aim of ensuring continuity with the rules set out in Regulation (EU) No 1306/2013 and the relevant implementing and delegated acts, while respecting the financial limits of Article 11(2), point (b), of the Financial Regulation. To take account of revenue collected by paying agencies for the Union budget when making payments on the basis of the expenditure declarations submitted by Member States, that delegation of power should also cover the conditions under which certain types of expenditure and revenue under the EAGF and EAFRD are to be compensated. Moreover, and with a view to enabling the equitable distribution of the appropriations available between the Member States, that delegation of power should cover the methods applicable to the commitments and the payment of the amounts if the Union budget has not been adopted by the beginning of the budgetary year or if the total amount of the commitments scheduled exceeds the threshold laid down in Article 11(2) of the Financial Regulation.

| (90) | Furthermore, that delegation of power should, in order to ensure the correct and efficient application of the provisions relating to on-the-spot checks and access to documents and information, cover the specific obligations to be complied with by Member States with regard to checks and access to documents and information, the criteria for justifications from the Member States and the methodology and criteria for applying reductions in relation to the annual performance clearance, as well as the criteria and methodology for applying financial corrections in the context of the conformity clearance procedure. |
| --- | --- |

(90)

Furthermore, that delegation of power should, in order to ensure the correct and efficient application of the provisions relating to on-the-spot checks and access to documents and information, cover the specific obligations to be complied with by Member States with regard to checks and access to documents and information, the criteria for justifications from the Member States and the methodology and criteria for applying reductions in relation to the annual performance clearance, as well as the criteria and methodology for applying financial corrections in the context of the conformity clearance procedure.

| (91) | Moreover, in order to ensure that the checks are carried out correctly and efficiently and that the eligibility conditions are verified in an efficient, coherent and non-discriminatory manner which protects the financial interest of the Union, that delegation of power should cover, where the proper management of the system so requires, rules on additional requirements with respect to customs procedures, and in particular to those laid down in Regulation (EU) No 952/2013 of the European Parliament and of the Council (23). In order to ensure non-discriminatory treatment, equity and the respect of proportionality when lodging a security, that delegation of power should cover rules on securities specifying the responsible party in the event that an obligation is not met, laying down the specific situations in which the competent authority may waive the requirement of a security, the conditions applicable to the security to be lodged and the guarantor, the conditions for lodging and releasing that security, the specific conditions related to the security lodged in connection with advance payments, and setting out the consequences of breaching the obligations for which a security has been lodged. |
| --- | --- |

(91)

Moreover, in order to ensure that the checks are carried out correctly and efficiently and that the eligibility conditions are verified in an efficient, coherent and non-discriminatory manner which protects the financial interest of the Union, that delegation of power should cover, where the proper management of the system so requires, rules on additional requirements with respect to customs procedures, and in particular to those laid down in Regulation (EU) No 952/2013 of the European Parliament and of the Council (23). In order to ensure non-discriminatory treatment, equity and the respect of proportionality when lodging a security, that delegation of power should cover rules on securities specifying the responsible party in the event that an obligation is not met, laying down the specific situations in which the competent authority may waive the requirement of a security, the conditions applicable to the security to be lodged and the guarantor, the conditions for lodging and releasing that security, the specific conditions related to the security lodged in connection with advance payments, and setting out the consequences of breaching the obligations for which a security has been lodged.

| (92) | In addition, regarding the integrated system, that delegation of power should cover rules on the quality assessment of the identification system for agricultural parcels, of the geo-spatial application system and of the area monitoring system and rules on the identification system for agricultural parcels, the system for the identification of beneficiaries and the system for the identification and registration of payment entitlements. |
| --- | --- |

(92)

In addition, regarding the integrated system, that delegation of power should cover rules on the quality assessment of the identification system for agricultural parcels, of the geo-spatial application system and of the area monitoring system and rules on the identification system for agricultural parcels, the system for the identification of beneficiaries and the system for the identification and registration of payment entitlements.

| (93) | Furthermore, in order to respond to changes in agricultural legislation concerning specific sectors and to ensure the efficiency of the system of ex-post controls, that delegation of power should cover the establishment of a list of interventions excluded from the scrutiny of transactions. In order to ensure a level playing field for Member States and the effectiveness, proportionality and dissuasive effect of the penalty systems under conditionality and social conditionality, that delegation of power should cover detailed rules on the application and calculation of such penalties. |
| --- | --- |

(93)

Furthermore, in order to respond to changes in agricultural legislation concerning specific sectors and to ensure the efficiency of the system of ex-post controls, that delegation of power should cover the establishment of a list of interventions excluded from the scrutiny of transactions. In order to ensure a level playing field for Member States and the effectiveness, proportionality and dissuasive effect of the penalty systems under conditionality and social conditionality, that delegation of power should cover detailed rules on the application and calculation of such penalties.

| (94) | Moreover, in order to specify the operative event or to fix it for reasons peculiar to the market organisation or the amount in question and to avoid the application by the Member States which have not adopted the euro of different exchange rates in accounts of revenue received or aid paid to beneficiaries in a currency other than the euro, on the one hand, and in the establishment of the declaration of expenditure drawn up by the paying agency, on the other, that delegation of power should cover rules on the operative event and the exchange rate to be used by the Member States not using the euro, and on the exchange rate applicable when declarations of expenditure are drawn up by the paying agency and when public storage operations are recorded in the accounts of the paying agency. In order to prevent exceptional monetary practices concerning a national currency from jeopardising the application of Union law, that delegation of power should cover derogations from the rules on the use of the euro laid down in this Regulation. |
| --- | --- |

(94)

Moreover, in order to specify the operative event or to fix it for reasons peculiar to the market organisation or the amount in question and to avoid the application by the Member States which have not adopted the euro of different exchange rates in accounts of revenue received or aid paid to beneficiaries in a currency other than the euro, on the one hand, and in the establishment of the declaration of expenditure drawn up by the paying agency, on the other, that delegation of power should cover rules on the operative event and the exchange rate to be used by the Member States not using the euro, and on the exchange rate applicable when declarations of expenditure are drawn up by the paying agency and when public storage operations are recorded in the accounts of the paying agency. In order to prevent exceptional monetary practices concerning a national currency from jeopardising the application of Union law, that delegation of power should cover derogations from the rules on the use of the euro laid down in this Regulation.

| (95) | In order to enable a smooth transition between the rules laid down by Regulation (EU) No 1306/2013 and those laid down by this Regulation, that delegation of power should cover laying down transitional provisions. |
| --- | --- |

(95)

In order to enable a smooth transition between the rules laid down by Regulation (EU) No 1306/2013 and those laid down by this Regulation, that delegation of power should cover laying down transitional provisions.

| (96) | In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council (24). |
| --- | --- |

(96)

In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council (24).

| (97) | The implementing powers of the Commission should relate to the rules on the procedures for issuing, withdrawing and reviewing accreditation of paying agencies and the designation and accreditation of coordinating bodies, as well as for the supervision of the accreditation of paying agencies; on the arrangements and procedures for the checks underlying the management declaration of the paying agencies, as well as its structure and format; on the functioning of the coordinating body and the notification of information to the Commission by that coordinating body; on the functioning of the certification bodies, including the checks to be carried out and the bodies subject to those checks, and on the certificates and the reports, together with the documents accompanying them, to be drawn up by those bodies. |
| --- | --- |

(97)

The implementing powers of the Commission should relate to the rules on the procedures for issuing, withdrawing and reviewing accreditation of paying agencies and the designation and accreditation of coordinating bodies, as well as for the supervision of the accreditation of paying agencies; on the arrangements and procedures for the checks underlying the management declaration of the paying agencies, as well as its structure and format; on the functioning of the coordinating body and the notification of information to the Commission by that coordinating body; on the functioning of the certification bodies, including the checks to be carried out and the bodies subject to those checks, and on the certificates and the reports, together with the documents accompanying them, to be drawn up by those bodies.

| (98) | The implementing powers of the Commission should also cover the audit principles on which the opinions of the certification bodies are based, including an assessment of the risks, internal controls and the level of audit evidence required, the audit methods to be used by the certification bodies, having regard to international standards on auditing, to deliver their opinions. |
| --- | --- |

(98)

The implementing powers of the Commission should also cover the audit principles on which the opinions of the certification bodies are based, including an assessment of the risks, internal controls and the level of audit evidence required, the audit methods to be used by the certification bodies, having regard to international standards on auditing, to deliver their opinions.

| (99) | The implementing powers of the Commission should also cover, in the context of the financial discipline procedure, the fixing of the adjustment rate for interventions in the form of direct payments and its adaptation as well as the amounts of non-committed appropriations carried over in accordance with Article 12(2), point (d), of the Financial Regulation in order to finance those interventions; and in the context of the budgetary discipline procedure, the provisional setting of the amount of the payments and the provisional distribution of the available budget among the Member States and the setting of the total amount of Union financing broken down by Member State. |
| --- | --- |

(99)

The implementing powers of the Commission should also cover, in the context of the financial discipline procedure, the fixing of the adjustment rate for interventions in the form of direct payments and its adaptation as well as the amounts of non-committed appropriations carried over in accordance with Article 12(2), point (d), of the Financial Regulation in order to finance those interventions; and in the context of the budgetary discipline procedure, the provisional setting of the amount of the payments and the provisional distribution of the available budget among the Member States and the setting of the total amount of Union financing broken down by Member State.

| (100) | The implementing powers of the Commission should also cover the fixing of the amounts for the financing of public intervention measures, rules relating to the financing of the acquisition by the Commission of the satellite data required for the area monitoring system and the actions taken by the Commission through remote-sensing applications used for the monitoring of agricultural resources, the procedure for the carrying out of the acquisition by the Commission of those satellite data and the monitoring of agricultural resources, the framework governing the acquisition, enhancing and use of satellite data and meteorological data, and the applicable deadlines. |
| --- | --- |

(100)

The implementing powers of the Commission should also cover the fixing of the amounts for the financing of public intervention measures, rules relating to the financing of the acquisition by the Commission of the satellite data required for the area monitoring system and the actions taken by the Commission through remote-sensing applications used for the monitoring of agricultural resources, the procedure for the carrying out of the acquisition by the Commission of those satellite data and the monitoring of agricultural resources, the framework governing the acquisition, enhancing and use of satellite data and meteorological data, and the applicable deadlines.

| (101) | Furthermore, the implementing powers of the Commission should cover the laying down of the periods within which the accredited paying agencies are to establish and send to the Commission interim declarations of expenditure relating to interventions for rural development as well as rules on the procedure and other practical arrangements for the proper functioning of the payment deadlines mechanism; the suspension, as well as the lifting of suspension, and reduction of the monthly or interim payments to Member States as well as rules on the structure of the actions plans and the procedure for setting them up. The implementing powers should also cover further rules on the keeping of separate accounts by the paying agencies and specific conditions applicable to the information to be booked in the accounts kept by the paying agencies; rules which are necessary and justifiable in an emergency in order to resolve specific problems in relation to payment periods and the payment of advances; rules on the financing and accounting of intervention measures in the form of public storage, and other expenditure financed by the EAGF and EAFRD, and the terms and conditions governing the implementation of the automatic decommitment procedure. |
| --- | --- |

(101)

Furthermore, the implementing powers of the Commission should cover the laying down of the periods within which the accredited paying agencies are to establish and send to the Commission interim declarations of expenditure relating to interventions for rural development as well as rules on the procedure and other practical arrangements for the proper functioning of the payment deadlines mechanism; the suspension, as well as the lifting of suspension, and reduction of the monthly or interim payments to Member States as well as rules on the structure of the actions plans and the procedure for setting them up. The implementing powers should also cover further rules on the keeping of separate accounts by the paying agencies and specific conditions applicable to the information to be booked in the accounts kept by the paying agencies; rules which are necessary and justifiable in an emergency in order to resolve specific problems in relation to payment periods and the payment of advances; rules on the financing and accounting of intervention measures in the form of public storage, and other expenditure financed by the EAGF and EAFRD, and the terms and conditions governing the implementation of the automatic decommitment procedure.

| (102) | Moreover, the implementing powers of the Commission should cover the conditions under which the documents and information relating to payments made are to be kept; the procedures relating to the cooperation obligations to be complied with by the Member States as regards the checks carried out by the Commission and access to information; the annual financial clearance, including the rules on the actions necessary for the purposes of adoption and implementation of those implementing acts, the annual performance clearance, including the rules on the actions necessary for the purposes of adoption and implementation of those implementing acts, and the information exchange between the Commission and the Member States, the procedures and the deadlines to be respected; the conformity procedure, including the rules on the actions necessary for the purposes of adoption and implementation of those implementing acts, the information exchange between the Commission and the Member States, the deadlines to be respected and the conciliation procedure; rules on the possible offsetting of the amounts resulting from recovery of undue payments and the exclusion from Union financing of amounts charged to the Union budget and the forms of notification and communication to be made by the Member States to the Commission in relation to recoveries for non-compliance. |
| --- | --- |

(102)

Moreover, the implementing powers of the Commission should cover the conditions under which the documents and information relating to payments made are to be kept; the procedures relating to the cooperation obligations to be complied with by the Member States as regards the checks carried out by the Commission and access to information; the annual financial clearance, including the rules on the actions necessary for the purposes of adoption and implementation of those implementing acts, the annual performance clearance, including the rules on the actions necessary for the purposes of adoption and implementation of those implementing acts, and the information exchange between the Commission and the Member States, the procedures and the deadlines to be respected; the conformity procedure, including the rules on the actions necessary for the purposes of adoption and implementation of those implementing acts, the information exchange between the Commission and the Member States, the deadlines to be respected and the conciliation procedure; rules on the possible offsetting of the amounts resulting from recovery of undue payments and the exclusion from Union financing of amounts charged to the Union budget and the forms of notification and communication to be made by the Member States to the Commission in relation to recoveries for non-compliance.

| (103) | The implementing powers of the Commission should also cover rules aimed at reaching a uniform application of Member States’ obligations regarding the protection of the financial interests of the Union and rules necessary for the uniform application of checks in the Union. |
| --- | --- |

(103)

The implementing powers of the Commission should also cover rules aimed at reaching a uniform application of Member States’ obligations regarding the protection of the financial interests of the Union and rules necessary for the uniform application of checks in the Union.

| (104) | Furthermore, the implementing powers of the Commission should cover the form of the securities to be lodged and the procedure for lodging the securities, for accepting them, and for replacing the original securities; the procedures for the release of securities; and the notification to be made by Member States or by the Commission in the context of securities. |
| --- | --- |

(104)

Furthermore, the implementing powers of the Commission should cover the form of the securities to be lodged and the procedure for lodging the securities, for accepting them, and for replacing the original securities; the procedures for the release of securities; and the notification to be made by Member States or by the Commission in the context of securities.

| (105) | The implementing powers of the Commission should also cover rules on the form, content and arrangements for transmitting or making available to the Commission the assessment reports on the quality of the identification system for agricultural parcels, of the geo-spatial application system and of the area monitoring system, and on the remedial actions to be implemented by the Member States with regard to deficiencies revealed in those systems, as well as basic features of, and rules on, the aid application system and the area monitoring system, including its phasing-in. |
| --- | --- |

(105)

The implementing powers of the Commission should also cover rules on the form, content and arrangements for transmitting or making available to the Commission the assessment reports on the quality of the identification system for agricultural parcels, of the geo-spatial application system and of the area monitoring system, and on the remedial actions to be implemented by the Member States with regard to deficiencies revealed in those systems, as well as basic features of, and rules on, the aid application system and the area monitoring system, including its phasing-in.

| (106) | The implementing powers of the Commission should also cover rules necessary for the uniform application of the rules on the scrutiny of commercial documents. They should also cover rules pertaining to communication of information by Member States to the Commission and measures to safeguard the application of Union law if exceptional monetary practices related to national currency are likely to jeopardise it. |
| --- | --- |

(106)

The implementing powers of the Commission should also cover rules necessary for the uniform application of the rules on the scrutiny of commercial documents. They should also cover rules pertaining to communication of information by Member States to the Commission and measures to safeguard the application of Union law if exceptional monetary practices related to national currency are likely to jeopardise it.

| (107) | Furthermore, the implementing powers of the Commission should cover rules on the form and the timescale of the publication of the beneficiaries of the EAGF and EAFRD, the uniform application of the obligation to inform the beneficiaries that data concerning them will be made public and the cooperation between the Commission and Member States in the context of the publication of the beneficiaries of the EAGF and EAFRD. |
| --- | --- |

(107)

Furthermore, the implementing powers of the Commission should cover rules on the form and the timescale of the publication of the beneficiaries of the EAGF and EAFRD, the uniform application of the obligation to inform the beneficiaries that data concerning them will be made public and the cooperation between the Commission and Member States in the context of the publication of the beneficiaries of the EAGF and EAFRD.

| (108) | The advisory procedure should be used for the adoption of certain implementing acts. With regard to implementing acts involving the calculation of amounts by the Commission, the advisory procedure enables the Commission to fully assume its responsibility of managing the budget and aims to increase efficiency, predictability and rapidity, when complying with the time limits and the budgetary procedures. With regard to implementing acts related to payments made to the Member States and the operation of the clearance of accounts procedure and annual performance clearance, the advisory procedure enables the Commission to fully assume its responsibility of managing the budget and verifying the annual accounts of the national paying agencies with a view to accepting such accounts or, in the case of expenditure not effected in compliance with Union rules, to excluding such expenditure from Union financing. The examination procedure should be used for the adoption of the other implementing acts. |
| --- | --- |

(108)

The advisory procedure should be used for the adoption of certain implementing acts. With regard to implementing acts involving the calculation of amounts by the Commission, the advisory procedure enables the Commission to fully assume its responsibility of managing the budget and aims to increase efficiency, predictability and rapidity, when complying with the time limits and the budgetary procedures. With regard to implementing acts related to payments made to the Member States and the operation of the clearance of accounts procedure and annual performance clearance, the advisory procedure enables the Commission to fully assume its responsibility of managing the budget and verifying the annual accounts of the national paying agencies with a view to accepting such accounts or, in the case of expenditure not effected in compliance with Union rules, to excluding such expenditure from Union financing. The examination procedure should be used for the adoption of the other implementing acts.

| (109) | In order to ensure uniform conditions for the implementation of this Regulation, the implementing powers should be conferred on the Commission without applying Regulation (EU) No 182/2011 concerning the setting of the net balance available for EAGF expenditure, the determination of monthly payments it should make on the basis of the declaration of expenditure from the Member States and the determination of supplementary payments or deductions in the context of the procedure for monthly payments. |
| --- | --- |

(109)

In order to ensure uniform conditions for the implementation of this Regulation, the implementing powers should be conferred on the Commission without applying Regulation (EU) No 182/2011 concerning the setting of the net balance available for EAGF expenditure, the determination of monthly payments it should make on the basis of the declaration of expenditure from the Member States and the determination of supplementary payments or deductions in the context of the procedure for monthly payments.

| (110) | Regulation (EU) No 1306/2013 should therefore be repealed. |
| --- | --- |

(110)

Regulation (EU) No 1306/2013 should therefore be repealed.

| (111) | Since the objectives of this Regulation cannot be sufficiently achieved by the Member States given the links between this Regulation and the other instruments of the CAP and the limits on the financial resources of the Member States, but can rather, by reason of the multiannual guarantee of Union finance and by concentrating on the Union’s priorities, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 TEU. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives. |
| --- | --- |

(111)

Since the objectives of this Regulation cannot be sufficiently achieved by the Member States given the links between this Regulation and the other instruments of the CAP and the limits on the financial resources of the Member States, but can rather, by reason of the multiannual guarantee of Union finance and by concentrating on the Union’s priorities, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 TEU. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives.

| (112) | In order to ensure the smooth implementation of the measures envisaged and as a matter of urgency, this Regulation should enter into force on the day following that of its publication in the Official Journal of the European Union, |
| --- | --- |

(112)

In order to ensure the smooth implementation of the measures envisaged and as a matter of urgency, this Regulation should enter into force on the day following that of its publication in the Official Journal of the European Union,

HAVE ADOPTED THIS REGULATION:

TITLE I

SCOPE AND DEFINITIONS

Article 1

Scope

This Regulation lays down rules on the financing, management and monitoring of the common agricultural policy (CAP), and in particular on:

| (a) | the financing of expenditure under the CAP; |
| --- | --- |

(a)

the financing of expenditure under the CAP;

| (b) | the management and control systems to be put in place by the Member States; |
| --- | --- |

(b)

the management and control systems to be put in place by the Member States;

| (c) | clearance and conformity procedures. |
| --- | --- |

(c)

clearance and conformity procedures.

Article 2

Definitions

For the purposes of this Regulation, the following definitions apply:

| (a) | ‘irregularity’ means an irregularity within the meaning of Article 1(2) of Regulation (EC, Euratom) No 2988/95; |
| --- | --- |

(a)

‘irregularity’ means an irregularity within the meaning of Article 1(2) of Regulation (EC, Euratom) No 2988/95;

| (b) | ‘governance systems’ means the governance bodies referred to in Title II, Chapter II, of this Regulation and the basic Union requirements, including Member States’ obligations with regard to the effective protection of the financial interests of the Union referred to in Article 59 of this Regulation as well as the implementation, in accordance with Article 9 of Regulation (EU) 2021/2115, of their CAP Strategic Plans as approved by the Commission, and the reporting system put in place for the purposes of the annual performance report referred to in Article 134 of that Regulation; |
| --- | --- |

(b)

‘governance systems’ means the governance bodies referred to in Title II, Chapter II, of this Regulation and the basic Union requirements, including Member States’ obligations with regard to the effective protection of the financial interests of the Union referred to in Article 59 of this Regulation as well as the implementation, in accordance with Article 9 of Regulation (EU) 2021/2115, of their CAP Strategic Plans as approved by the Commission, and the reporting system put in place for the purposes of the annual performance report referred to in Article 134 of that Regulation;

| (c) | ‘basic Union requirements’ means the requirements laid down in Regulation (EU) 2021/2115, in this Regulation, in the Financial Regulation and in Directive 2014/24/EU of the European Parliament and of the Council (25); |
| --- | --- |

(c)

‘basic Union requirements’ means the requirements laid down in Regulation (EU) 2021/2115, in this Regulation, in the Financial Regulation and in Directive 2014/24/EU of the European Parliament and of the Council (25);

25

| (d) | ‘serious deficiencies in the proper functioning of the governance systems’ means the existence of a systemic weakness, taking into account its recurrence, gravity and compromising effect on the correct declaration of expenditure, the reporting on performance, or the respect of Union law; |
| --- | --- |

(d)

‘serious deficiencies in the proper functioning of the governance systems’ means the existence of a systemic weakness, taking into account its recurrence, gravity and compromising effect on the correct declaration of expenditure, the reporting on performance, or the respect of Union law;

| (e) | ‘output indicator’ means an output indicator as referred to in Article 7(1), point (a), of Regulation (EU) 2021/2115; |
| --- | --- |

(e)

‘output indicator’ means an output indicator as referred to in Article 7(1), point (a), of Regulation (EU) 2021/2115;

| (f) | ‘result indicator’ means a result indicator as referred to in Article 7(1), point (b), of Regulation (EU) 2021/2115; |
| --- | --- |

(f)

‘result indicator’ means a result indicator as referred to in Article 7(1), point (b), of Regulation (EU) 2021/2115;

| (g) | ‘action plan’ means, for the purposes of Articles 41 and 42 of this Regulation, a plan established by a Member State, on the request of, and in consultation with, the Commission, in the event that serious deficiencies in the proper functioning of the governance systems of that Member State are identified or in the circumstances referred to in Article 135 of Regulation (EU) 2021/2115, containing the necessary remedial actions and the relevant timeframe for its implementation in accordance with Articles 41 and 42 of this Regulation. |
| --- | --- |

(g)

‘action plan’ means, for the purposes of Articles 41 and 42 of this Regulation, a plan established by a Member State, on the request of, and in consultation with, the Commission, in the event that serious deficiencies in the proper functioning of the governance systems of that Member State are identified or in the circumstances referred to in Article 135 of Regulation (EU) 2021/2115, containing the necessary remedial actions and the relevant timeframe for its implementation in accordance with Articles 41 and 42 of this Regulation.

Article 3

Exemptions in cases of force majeure and exceptional circumstances

1.   For the purposes of the financing, management and monitoring of the CAP, force majeure and exceptional circumstances may, in particular, be recognised in the following cases:

| (a) | a severe natural disaster or severe meteorological event gravely affecting the holding; |
| --- | --- |

(a)

a severe natural disaster or severe meteorological event gravely affecting the holding;

| (b) | the accidental destruction of livestock buildings on the holding; |
| --- | --- |

(b)

the accidental destruction of livestock buildings on the holding;

| (c) | an epizootic, a plant disease outbreak or the presence of a plant pest affecting part or all of the beneficiary’s livestock or crops; |
| --- | --- |

(c)

an epizootic, a plant disease outbreak or the presence of a plant pest affecting part or all of the beneficiary’s livestock or crops;

| (d) | expropriation of all or a large part of the holding if that expropriation could not have been anticipated on the day of lodging the application; |
| --- | --- |

(d)

expropriation of all or a large part of the holding if that expropriation could not have been anticipated on the day of lodging the application;

| (e) | the death of the beneficiary; |
| --- | --- |

(e)

the death of the beneficiary;

| (f) | long-term professional incapacity of the beneficiary. |
| --- | --- |

(f)

long-term professional incapacity of the beneficiary.

2.   Where a severe natural disaster or severe meteorological event as referred to in paragraph 1, point (a), gravely affects a well-determined area, the Member State concerned may consider that whole area to be gravely affected by that disaster or event.

TITLE II

GENERAL PROVISIONS ON AGRICULTURAL FUNDS

CHAPTER I

Agricultural funds

Article 4

Funds financing agricultural expenditure

The financing of the various interventions and measures falling under the CAP from the general budget of the Union (‘the Union budget’) shall be made by:

| (a) | the European Agricultural Guarantee Fund (EAGF); |
| --- | --- |

(a)

the European Agricultural Guarantee Fund (EAGF);

| (b) | the European Agricultural Fund for Rural Development (EAFRD). |
| --- | --- |

(b)

the European Agricultural Fund for Rural Development (EAFRD).

Article 5

EAGF expenditure

1.   The EAGF shall be implemented either under shared management between the Member States and the Union in accordance with paragraph 2, or under direct management in accordance with paragraph 3.

2.   The EAGF shall finance the following expenditure under shared management:

| (a) | measures regulating or supporting agricultural markets laid down in Regulation (EU) No 1308/2013 of the European Parliament and of the Council (26); |
| --- | --- |

(a)

measures regulating or supporting agricultural markets laid down in Regulation (EU) No 1308/2013 of the European Parliament and of the Council (26);

| (b) | the Union’s financial contribution to interventions in certain sectors as referred to in Title III, Chapter III, of Regulation (EU) 2021/2115; |
| --- | --- |

(b)

the Union’s financial contribution to interventions in certain sectors as referred to in Title III, Chapter III, of Regulation (EU) 2021/2115;

| (c) | interventions in the form of direct payments to farmers under the CAP Strategic Plan referred to under Article 16 of Regulation (EU) 2021/2115; |
| --- | --- |

(c)

interventions in the form of direct payments to farmers under the CAP Strategic Plan referred to under Article 16 of Regulation (EU) 2021/2115;

| (d) | the Union’s financial contribution to information and promotion measures for agricultural products on the internal market of the Union and in third countries which are undertaken by Member States and which are selected by the Commission; |
| --- | --- |

(d)

the Union’s financial contribution to information and promotion measures for agricultural products on the internal market of the Union and in third countries which are undertaken by Member States and which are selected by the Commission;

| (e) | the Union’s financial contribution to the specific measures for agriculture in the outermost regions of the Union laid down in Regulation (EU) No 228/2013 and to the specific measures for agriculture in favour of the smaller Aegean islands laid down in Regulation (EU) No 229/2013. |
| --- | --- |

(e)

the Union’s financial contribution to the specific measures for agriculture in the outermost regions of the Union laid down in Regulation (EU) No 228/2013 and to the specific measures for agriculture in favour of the smaller Aegean islands laid down in Regulation (EU) No 229/2013.

3.   The EAGF shall finance the following expenditure under direct management:

| (a) | the promotion of agricultural products either directly by the Commission or through international organisations; |
| --- | --- |

(a)

the promotion of agricultural products either directly by the Commission or through international organisations;

| (b) | measures taken in accordance with Union law to ensure the conservation, characterisation, collection and utilisation of genetic resources in agriculture; |
| --- | --- |

(b)

measures taken in accordance with Union law to ensure the conservation, characterisation, collection and utilisation of genetic resources in agriculture;

| (c) | the establishment and maintenance of agricultural accounting information systems; |
| --- | --- |

(c)

the establishment and maintenance of agricultural accounting information systems;

| (d) | agricultural survey systems, including surveys on the structure of agricultural holdings. |
| --- | --- |

(d)

agricultural survey systems, including surveys on the structure of agricultural holdings.

Article 6

EAFRD expenditure

The EAFRD shall be implemented under shared management between the Member States and the Union. It shall finance the Union’s financial contribution to the interventions for rural development referred to in Title III, Chapter IV, of Regulation (EU) 2021/2115 as specified in the CAP Strategic Plans and to actions referred to in Article 125 of that Regulation.

Article 7

Other expenditure, including technical assistance

The EAGF and EAFRD may, either on the initiative of the Commission or on its behalf, each directly finance the preparatory, monitoring, administrative and technical support activities, and the evaluation, audit and inspection, required to implement the CAP. That includes, in particular:

| (a) | measures required for the analysis, management, monitoring, information exchange and implementation of the CAP, including assessing its impacts, environmental performance and progress towards Union targets, as well as measures relating to the implementation of control systems and technical and administrative assistance; |
| --- | --- |

(a)

measures required for the analysis, management, monitoring, information exchange and implementation of the CAP, including assessing its impacts, environmental performance and progress towards Union targets, as well as measures relating to the implementation of control systems and technical and administrative assistance;

| (b) | the acquisition by the Commission of satellite data required for the area monitoring system in accordance with Article 24; |
| --- | --- |

(b)

the acquisition by the Commission of satellite data required for the area monitoring system in accordance with Article 24;

| (c) | the actions taken by the Commission through remote-sensing applications used for the monitoring of agricultural resources in accordance with Article 25; |
| --- | --- |

(c)

the actions taken by the Commission through remote-sensing applications used for the monitoring of agricultural resources in accordance with Article 25;

| (d) | measures required to maintain and develop methods and technical means for information, interconnection, monitoring and control of the financial management of the funds used to finance the CAP; |
| --- | --- |

(d)

measures required to maintain and develop methods and technical means for information, interconnection, monitoring and control of the financial management of the funds used to finance the CAP;

| (e) | the provision of information on the CAP in accordance with Article 46; |
| --- | --- |

(e)

the provision of information on the CAP in accordance with Article 46;

| (f) | studies on the CAP and evaluations of measures financed by the EAGF and EAFRD, including the improvement of evaluation methods and the exchange of information on best practices under the CAP and consultations with the relevant stakeholders, as well as studies carried out with the European Investment Bank (EIB); |
| --- | --- |

(f)

studies on the CAP and evaluations of measures financed by the EAGF and EAFRD, including the improvement of evaluation methods and the exchange of information on best practices under the CAP and consultations with the relevant stakeholders, as well as studies carried out with the European Investment Bank (EIB);

| (g) | where relevant, contribution to executive agencies that are set up in accordance with Council Regulation (EC) No 58/2003 (27) and act in connection with the CAP; |
| --- | --- |

(g)

where relevant, contribution to executive agencies that are set up in accordance with Council Regulation (EC) No 58/2003 (27) and act in connection with the CAP;

27

| (h) | contribution to measures which relate to the dissemination of information, raising awareness, promoting cooperation and exchanging experiences with the relevant stakeholders at Union level, and which are taken in the context of interventions for rural development, including the networking of the parties concerned; |
| --- | --- |

(h)

contribution to measures which relate to the dissemination of information, raising awareness, promoting cooperation and exchanging experiences with the relevant stakeholders at Union level, and which are taken in the context of interventions for rural development, including the networking of the parties concerned;

| (i) | information technology networks focusing on information processing and exchange, including corporate information technology systems, needed in connection with the management of the CAP; |
| --- | --- |

(i)

information technology networks focusing on information processing and exchange, including corporate information technology systems, needed in connection with the management of the CAP;

| (j) | measures required for the development, registration and protection of logos within the framework of the Union quality schemes in accordance with Article 44(2) of Regulation (EU) No 1151/2012 of the European Parliament and of the Council (28) and for the protection of intellectual property rights linked to it, and the necessary developments in information technology. |
| --- | --- |

(j)

measures required for the development, registration and protection of logos within the framework of the Union quality schemes in accordance with Article 44(2) of Regulation (EU) No 1151/2012 of the European Parliament and of the Council (28) and for the protection of intellectual property rights linked to it, and the necessary developments in information technology.

28

CHAPTER II

Governance bodies

Article 8

Competent authority

1.   Each Member State shall designate a competent authority at ministerial level responsible for:

| (a) | the issuing, reviewing and withdrawing of accreditation of paying agencies referred to in Article 9(2); |
| --- | --- |

(a)

the issuing, reviewing and withdrawing of accreditation of paying agencies referred to in Article 9(2);

| (b) | the designation and the issuing, reviewing and withdrawing of the accreditation of the coordinating body referred to in Article 10; |
| --- | --- |

(b)

the designation and the issuing, reviewing and withdrawing of the accreditation of the coordinating body referred to in Article 10;

| (c) | designating and withdrawing the designation of a certification body as referred to in Article 12, and ensuring that there is always a certification body designated; |
| --- | --- |

(c)

designating and withdrawing the designation of a certification body as referred to in Article 12, and ensuring that there is always a certification body designated;

| (d) | carrying out the tasks assigned to the competent authority under this Chapter. |
| --- | --- |

(d)

carrying out the tasks assigned to the competent authority under this Chapter.

2.   On the basis of an examination of the minimum conditions to be adopted by the Commission in accordance with Article 11(1), point (a), the competent authority shall, by way of a formal act, decide on the issuing or, following a review, the withdrawal of the accreditation of the paying agency and on the designation and accreditation and the withdrawal of the accreditation of the coordinating body.

3.   The competent authority shall, by way of a formal act, decide on the designation, and the withdrawal of the designation, of the certification body, while ensuring that there is always a certification body designated.

4.   The competent authority shall inform the Commission without delay of all accreditations and withdrawals of accreditation of the paying agency and of the designation and accreditation and withdrawal of accreditation of the coordinating body, as well as of the designation, and the withdrawal of the designation, of the certification body.

Article 9

Paying agencies

1.   Paying agencies shall be departments or bodies of the Member States and, where applicable, of their regions responsible for the management and control of expenditure referred to in Article 5(2) and Article 6.

With the exception of making payment, paying agencies may delegate performance of the tasks referred to in the first subparagraph.

2.   Member States shall accredit, as paying agencies, departments or bodies which have an administrative organisation and a system of internal control which provide sufficient guarantees that payments are legal, regular and properly accounted for. To that end, paying agencies shall comply with minimum conditions for the accreditation with regard to the internal environment, control activities, information and communication and monitoring laid down by the Commission pursuant to Article 11(1), point (a).

Each Member State shall, taking into account its constitutional provisions, restrict the number of its accredited paying agencies:

| (a) | to a single paying agency at national level or, where applicable, one per region; and |
| --- | --- |

(a)

to a single paying agency at national level or, where applicable, one per region; and

| (b) | to a single paying agency for the management of both EAGF and EAFRD expenditure where paying agencies exist only at national level. |
| --- | --- |

(b)

to a single paying agency for the management of both EAGF and EAFRD expenditure where paying agencies exist only at national level.

Where paying agencies are established at regional level, Member States shall, in addition, either accredit a paying agency at national level for aid schemes which, by their nature, have to be managed at national level, or confer the management of those schemes on their regional paying agencies.

By way of derogation from the second subparagraph of this paragraph, Member States may maintain the paying agencies which have been accredited before 15 October 2020, provided that the competent authority, by means of the decision referred to in Article 8(2), confirms that they comply with the minimum conditions for accreditation referred to in the first subparagraph of this paragraph.

Paying agencies which have not managed EAGF or EAFRD expenditure for at least three years shall have their accreditation withdrawn.

Member States shall not accredit any new additional paying agency after 7 December 2021, except for cases referred to in the second subparagraph, point (a), where, taking into account the constitutional provisions, additional regional paying agencies may be necessary.

3.   For the purposes of Article 63(5) and (6) of the Financial Regulation, the person in charge of the accredited paying agency shall, by 15 February of the year following the agricultural financial year (‘financial year’) concerned, draw up and provide the Commission with the following:

| (a) | the annual accounts on the expenditure incurred in the execution of the tasks entrusted to that accredited paying agency, as provided for in Article 63(5), point (a), of the Financial Regulation, accompanied by the requisite information for the clearance in accordance with Article 53 of this Regulation; |
| --- | --- |

(a)

the annual accounts on the expenditure incurred in the execution of the tasks entrusted to that accredited paying agency, as provided for in Article 63(5), point (a), of the Financial Regulation, accompanied by the requisite information for the clearance in accordance with Article 53 of this Regulation;

| (b) | the annual performance report referred to in Article 54(1) of this Regulation and Article 134 of Regulation (EU) 2021/2115 showing that the expenditure was effected in accordance with Article 37 of this Regulation; |
| --- | --- |

(b)

the annual performance report referred to in Article 54(1) of this Regulation and Article 134 of Regulation (EU) 2021/2115 showing that the expenditure was effected in accordance with Article 37 of this Regulation;

| (c) | an annual summary of the final audit reports and of controls carried out, an analysis of the nature and extent of errors and weaknesses identified in governance systems, as well as corrective action taken or planned, as provided for in Article 63(5), point (b), of the Financial Regulation; |
| --- | --- |

(c)

an annual summary of the final audit reports and of controls carried out, an analysis of the nature and extent of errors and weaknesses identified in governance systems, as well as corrective action taken or planned, as provided for in Article 63(5), point (b), of the Financial Regulation;

| (d) | a management declaration as provided for in Article 63(6) of the Financial Regulation as to:






  (i) | the fact that the information is properly presented, complete and accurate, as provided for in Article 63(6), point (a), of the Financial Regulation, |
| --- | --- | --- |

(d)

a management declaration as provided for in Article 63(6) of the Financial Regulation as to:

(i)

the fact that the information is properly presented, complete and accurate, as provided for in Article 63(6), point (a), of the Financial Regulation,

| (ii) | the proper functioning of the governance systems put in place, with the exception of the competent authority referred to in Article 8, the coordinating body referred to in Article 10 and the certification body referred to in Article 12 of this Regulation, ensuring that the expenditure was effected in accordance with Article 37 of this Regulation, as provided for in Article 63(6), points (b) and (c), of the Financial Regulation. |
| --- | --- |

(ii)

the proper functioning of the governance systems put in place, with the exception of the competent authority referred to in Article 8, the coordinating body referred to in Article 10 and the certification body referred to in Article 12 of this Regulation, ensuring that the expenditure was effected in accordance with Article 37 of this Regulation, as provided for in Article 63(6), points (b) and (c), of the Financial Regulation.

The deadline of 15 February referred to in the first subparagraph of this paragraph may be extended on an exceptional basis by the Commission to 1 March, upon communication by the Member State concerned, as provided for in Article 63(7), second subparagraph, of the Financial Regulation.

4.   Where an accredited paying agency does not meet or no longer meets one or more of the minimum conditions for accreditation referred to in paragraph 2, first subparagraph, the Member State concerned, acting on its own initiative or at the request of the Commission, shall withdraw the accreditation of that paying agency unless the paying agency makes the necessary changes within a period to be determined by the competent authority of that Member State depending on the severity of the problem.

5.   The paying agencies shall manage, and ensure the control of, the operations linked to public intervention for which they are responsible and they shall retain overall responsibility in that field.

Where support is provided through a financial instrument which is implemented by the EIB or another international financial institution in which a Member State is a shareholder, the paying agency shall rely on a control report supporting the payment applications submitted. Those institutions shall provide the Member States with the control report.

6.   For the purposes of Article 33, for EAFRD expenditure, an additional performance report shall be provided, by 30 June 2030, in accordance with paragraph 3 of this Article and with Article 10(3), covering the period until 31 December 2029.

Article 10

Coordinating bodies

1.   Where more than one paying agency is accredited in a Member State, that Member State shall designate a public coordinating body, to which it shall assign the following tasks:

| (a) | to collect the information to be provided to the Commission and to send that information to the Commission; |
| --- | --- |

(a)

to collect the information to be provided to the Commission and to send that information to the Commission;

| (b) | to supply to the Commission the annual performance report referred to in Article 54(1) of this Regulation and Article 134 of Regulation (EU) 2021/2115; |
| --- | --- |

(b)

to supply to the Commission the annual performance report referred to in Article 54(1) of this Regulation and Article 134 of Regulation (EU) 2021/2115;

| (c) | to take or coordinate actions with a view to resolving any deficiencies of a common nature and to inform the Commission of any follow-up; |
| --- | --- |

(c)

to take or coordinate actions with a view to resolving any deficiencies of a common nature and to inform the Commission of any follow-up;

| (d) | to promote and, where possible, ensure the harmonised application of Union rules. |
| --- | --- |

(d)

to promote and, where possible, ensure the harmonised application of Union rules.

2.   As regards the processing of the information of a financial nature referred to in paragraph 1, point (a), the coordinating body shall be subject to specific accreditation by the Member State.

3.   The annual performance report referred to in paragraph 1, point (b), of this Article shall be covered by the scope of the opinion referred to in Article 12(2) and it shall be submitted to the Commission together with a management declaration covering the compilation of the entire report.

Article 11

Commission powers relating to paying agencies and coordinating bodies

1.   The Commission is empowered to adopt delegated acts in accordance with Article 102 to ensure the sound operation of the paying agencies and coordinating bodies provided for in Articles 9 and 10, supplementing this Regulation with rules on:

| (a) | the minimum conditions for the accreditation of the paying agencies referred to in Article 9(2), first subparagraph, and for the designation and accreditation of the coordinating bodies referred to in Article 10; |
| --- | --- |

(a)

the minimum conditions for the accreditation of the paying agencies referred to in Article 9(2), first subparagraph, and for the designation and accreditation of the coordinating bodies referred to in Article 10;

| (b) | the obligations of the paying agencies as regards public intervention, as well as the rules on the content of their management and control responsibilities. |
| --- | --- |

(b)

the obligations of the paying agencies as regards public intervention, as well as the rules on the content of their management and control responsibilities.

2.   The Commission shall adopt implementing acts laying down rules on:

| (a) | the procedures for issuing, withdrawing and reviewing accreditation of paying agencies and for designation and issuing, withdrawing and reviewing accreditation of coordinating bodies, as well as the procedures for the supervision of the accreditation of paying agencies; |
| --- | --- |

(a)

the procedures for issuing, withdrawing and reviewing accreditation of paying agencies and for designation and issuing, withdrawing and reviewing accreditation of coordinating bodies, as well as the procedures for the supervision of the accreditation of paying agencies;

| (b) | the arrangements and procedures for the checks underlying the management declaration of the paying agencies referred to in Article 9(3), first subparagraph, point (d), as well as its structure and format; |
| --- | --- |

(b)

the arrangements and procedures for the checks underlying the management declaration of the paying agencies referred to in Article 9(3), first subparagraph, point (d), as well as its structure and format;

| (c) | the functioning of the coordinating body and the submission of information to the Commission in accordance with Article 10. |
| --- | --- |

(c)

the functioning of the coordinating body and the submission of information to the Commission in accordance with Article 10.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 103(3).

Article 12

Certification bodies

1.   The certification body shall be a public or private audit body designated by the Member State for a period of at least three years, without prejudice to national law. Where it is a private audit body and where the applicable Union or national law so requires, it shall be selected by the Member State by means of a public tendering procedure.

A Member State that designates more than one certification body may appoint a public certification body at national level to be responsible for coordination.

2.   For the purposes of Article 63(7), first subparagraph, of the Financial Regulation, the certification body shall issue an opinion, drawn up in accordance with internationally accepted audit standards, which shall establish whether:

| (a) | the accounts give a true and fair view; |
| --- | --- |

(a)

the accounts give a true and fair view;

| (b) | the Member States’ governance systems put in place function properly, in particular:






  (i) | the governance bodies referred to in Articles 9 and 10 of this Regulation and Article 123 of Regulation (EU) 2021/2115, |
| --- | --- | --- |

(b)

the Member States’ governance systems put in place function properly, in particular:

(i)

the governance bodies referred to in Articles 9 and 10 of this Regulation and Article 123 of Regulation (EU) 2021/2115,

| (ii) | the basic Union requirements, |
| --- | --- |

(ii)

the basic Union requirements,

| (iii) | the reporting system put in place for the purposes of the annual performance report referred to in Article 134 of Regulation (EU) 2021/2115; |
| --- | --- |

(iii)

the reporting system put in place for the purposes of the annual performance report referred to in Article 134 of Regulation (EU) 2021/2115;

| (c) | the performance reporting on output indicators for the purposes of the annual performance clearance referred to in Article 54 of this Regulation and the performance reporting on result indicators for the multiannual performance monitoring referred to in Article 128 of Regulation (EU) 2021/2115, demonstrating that Article 37 of this Regulation is complied with, is correct; |
| --- | --- |

(c)

the performance reporting on output indicators for the purposes of the annual performance clearance referred to in Article 54 of this Regulation and the performance reporting on result indicators for the multiannual performance monitoring referred to in Article 128 of Regulation (EU) 2021/2115, demonstrating that Article 37 of this Regulation is complied with, is correct;

| (d) | the expenditure for the measures laid down in Regulations (EU) No 228/2013, (EU) No 229/2013 and (EU) No 1308/2013 and in Regulation (EU) No 1144/2014 of the European Parliament and of the Council (29) for which reimbursement has been requested from the Commission is legal and regular. |
| --- | --- |

(d)

the expenditure for the measures laid down in Regulations (EU) No 228/2013, (EU) No 229/2013 and (EU) No 1308/2013 and in Regulation (EU) No 1144/2014 of the European Parliament and of the Council (29) for which reimbursement has been requested from the Commission is legal and regular.

That opinion shall also state whether the examination calls into question the assertions made in the management declaration referred to in Article 9(3), first subparagraph, point (d). The examination shall also cover the analysis of the nature and extent of errors and weaknesses identified in governance systems by audit and controls, as well as corrective action taken or planned by the paying agency, referred to in Article 9(3), first subparagraph, point (c).

Where support is provided through a financial instrument which is implemented by the EIB or another international financial institution in which a Member State is a shareholder, the certification body shall rely on the annual audit report drawn up by the external auditors of those institutions. Those institutions shall provide the Member States with the annual audit report.

3.   The certification body shall have the necessary technical expertise, as well as knowledge of the CAP. It shall be operationally independent from the paying agency and the coordinating body concerned as well as from the competent authority which has accredited that paying agency and the bodies responsible for the implementation and the monitoring of the CAP.

4.   The Commission shall adopt implementing acts laying down rules on the functioning of the certification bodies, including the checks to be carried out and the bodies subject to those checks, and on the certificates and the reports, together with the documents accompanying them, to be drawn up by those bodies.

The implementing acts shall also set out:

| (a) | the audit principles on which the opinions of the certification bodies are based, including an assessment of the risks, internal controls and the level of audit evidence required; |
| --- | --- |

(a)

the audit principles on which the opinions of the certification bodies are based, including an assessment of the risks, internal controls and the level of audit evidence required;

| (b) | the audit methods to be used by the certification bodies, having regard to international standards on auditing, to deliver their opinions. |
| --- | --- |

(b)

the audit methods to be used by the certification bodies, having regard to international standards on auditing, to deliver their opinions.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 103(3).

Article 13

Exchange of best practices

The Commission shall promote the exchange of best practices between the Member States, in particular as regards the work of the governance bodies under this Chapter.

TITLE III

FINANCIAL MANAGEMENT OF THE EAGF AND EAFRD

CHAPTER I

EAGF

Section 1

Budgetary discipline

Article 14

Budget ceiling

1.   The annual ceiling for EAGF expenditure shall be constituted by the maximum amounts set for it under Regulation (EU, Euratom) 2020/2093.

2.   Where Union law provides for sums to be deducted from, or added to, the amounts referred to in paragraph 1, the Commission shall adopt implementing acts without applying the procedure referred to in Article 103 setting the net balance available for EAGF expenditure on the basis of the data referred to in Union law.

Article 15

Compliance with the ceiling

1.   Where Union law provides for a financial ceiling in euros for agricultural expenditure in respect of a Member State, such expenditure shall be reimbursed subject to that ceiling, and, where Articles 39 to 42 apply, with any necessary adjustments.

2.   Member States’ allocations for interventions in the form of direct payments referred to in Article 87 of Regulation (EU) 2021/2115, corrected by the adjustments laid down in Article 17 of this Regulation, are financial ceilings in euros for the purposes of paragraph 1 of this Article.

Article 16

Agricultural reserve

1.   A Union agricultural reserve (‘the reserve’) shall be established at the beginning of each year in the EAGF to provide additional support for the agricultural sector for the purpose of market management or stabilisation and to respond promptly in the case of crises affecting the agricultural production or distribution.

The appropriations for the reserve shall be entered directly in the Union budget. Funds from the reserve shall be made available, in the financial year or years for which additional support is required, for the following measures:

| (a) | measures to stabilise agricultural markets under Articles 8 to 21 of Regulation (EU) No 1308/2013; |
| --- | --- |

(a)

measures to stabilise agricultural markets under Articles 8 to 21 of Regulation (EU) No 1308/2013;

| (b) | exceptional measures under Articles 219, 220 and 221 of Regulation (EU) No 1308/2013. |
| --- | --- |

(b)

exceptional measures under Articles 219, 220 and 221 of Regulation (EU) No 1308/2013.

2.   The amount of the reserve shall be EUR 450 million in current prices at the beginning of each year of the period 2023-2027, unless a higher amount is set in the Union budget. The Commission may adjust the amount of the reserve during the year, when appropriate, in view of market developments or perspectives in the current or following year and taking into account available appropriations under the EAGF sub-ceiling.

If those available appropriations are not sufficient, financial discipline may be used in accordance with Article 17 of this Regulation, as a last resort, to fund the reserve up to the initial amount referred to in the first subparagraph of this paragraph.

By way of derogation from Article 12(2), third subparagraph, of the Financial Regulation, non-committed appropriations of the reserve shall be carried over to finance the reserve in the following budgetary years until the year 2027.

Moreover, by derogation from Article 12(2), third subparagraph, of the Financial Regulation, the total unused amount of the reserve for crises in the agricultural sector, established by Regulation (EU) No 1306/2013, available at the end of the year 2022 shall be carried over to the year 2023 without being fully returned to the budgetary lines which cover the actions referred to in Article 5(2), point (c), of this Regulation and made available to the extent necessary for the financing of the reserve established by this Article after taking into account appropriations available under the EAGF sub-ceiling. Any appropriations of the reserve for crises in the agricultural sector that remain available after financing the reserve established by this Article shall be returned to the budgetary lines which cover the actions referred to in Article 5(2), point (c), of this Regulation.

Article 17

Financial discipline

1.   An adjustment rate for interventions in the form of direct payments referred to in Article 5(2), point (c), of this Regulation and for the Union financial contribution to direct payments under Chapter IV of Regulation (EU) No 228/2013 and Chapter IV of Regulation (EU) No 229/2013 for the specific measures referred to in Article 5(2), point (e), of this Regulation (‘the adjustment rate’) shall be determined by the Commission where the forecasts for the financing of the interventions and measures financed under the corresponding sub-ceiling for a given budgetary year indicate that the applicable annual ceilings will be exceeded.

The adjustment rate shall apply to payments to be granted to farmers for the interventions and specific measures referred to in the first subparagraph of this paragraph exceeding EUR 2 000 for the corresponding calendar year. For the purposes of this subparagraph, Article 17(4) of Regulation (EU) 2021/2115 shall apply mutatis mutandis.

The Commission shall, by 30 June of the calendar year in respect of which the adjustment rate applies, adopt implementing acts fixing the adjustment rate. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 103(2).

2.   Until 1 December of the calendar year in respect of which the adjustment rate applies, the Commission may, on the basis of new information, adopt implementing acts adapting the adjustment rate set in accordance with paragraph 1 of this Article. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 103(2).

3.   Where financial discipline has been applied, the appropriations carried over in accordance with Article 12(2), point (d), of the Financial Regulation shall be used to finance expenditure under Article 5(2), point (c), of this Regulation, to the extent necessary to avoid the repeated application of financial discipline.

Where appropriations to be carried over in accordance with the first subparagraph remain available and the overall amount of non-committed appropriations available for reimbursement represents at least 0,2 % of the annual ceiling for EAGF expenditure, the Commission may adopt implementing acts setting out per Member State the amounts of non-committed appropriations to be reimbursed to final beneficiaries. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 103(2).

4.   The amounts set by the Commission in accordance with paragraph 3, second subparagraph, shall be reimbursed to final beneficiaries by Member States in accordance with objective and non-discriminatory criteria. Member States may apply a minimum threshold of amounts of reimbursement per final beneficiary. That reimbursement shall apply only to final beneficiaries in those Member States where financial discipline applied in the preceding financial year.

5.   The Commission is empowered to adopt delegated acts in accordance with Article 102 which are necessary in order to ensure the coherent application of the financial discipline in the Member States, supplementing this Regulation with rules for calculating the financial discipline to be applied by Member States to farmers.

Article 18

Budgetary discipline procedure

1.   Where, upon drawing up the draft budget for budgetary year N, there appears to be a risk that the amount referred to in Article 14 of this Regulation for budgetary year N will be exceeded, the Commission shall propose the measures necessary to ensure compliance with that amount. Those measures are to be adopted by the European Parliament and the Council where the legal basis of the relevant measure is Article 43(2) TFEU or by the Council where the legal basis of the relevant measure is Article 43(3) TFEU.

2.   If at any time the Commission considers that there is a risk that the amount referred to in Article 14 of this Regulation will be exceeded and that it cannot take adequate measures to remedy the situation, it shall propose other measures to ensure compliance with that amount. Those measures are to be adopted by the European Parliament and the Council where the legal basis of the relevant measure is Article 43(2) TFEU or by the Council where the legal basis of the relevant measure is Article 43(3) TFEU.

3.   Where, at the end of budgetary year N, reimbursement requests from the Member States exceed or are likely to exceed the amount referred to in Article 14, the Commission shall:

| (a) | consider the requests submitted by Member States pro rata subject to the budget available, and adopt implementing acts setting provisionally the amount of the payments for the month concerned; |
| --- | --- |

(a)

consider the requests submitted by Member States pro rata subject to the budget available, and adopt implementing acts setting provisionally the amount of the payments for the month concerned;

| (b) | determine for all Member States, on or before 28 February of budgetary year N + 1, their situation with regard to Union financing for the budgetary year N; |
| --- | --- |

(b)

determine for all Member States, on or before 28 February of budgetary year N + 1, their situation with regard to Union financing for the budgetary year N;

| (c) | adopt implementing acts setting the total amount of Union financing broken down by Member State, on the basis of a single rate of Union financing, subject to the amount which was available for the monthly payments; |
| --- | --- |

(c)

adopt implementing acts setting the total amount of Union financing broken down by Member State, on the basis of a single rate of Union financing, subject to the amount which was available for the monthly payments;

| (d) | effect, at the latest when the monthly payments are made for March of budgetary year N + 1, any compensation to be carried out with respect to Member States. |
| --- | --- |

(d)

effect, at the latest when the monthly payments are made for March of budgetary year N + 1, any compensation to be carried out with respect to Member States.

The implementing acts provided for in the first subparagraph, points (a) and (c), of this paragraph shall be adopted in accordance with the advisory procedure referred to in Article 103(2).

Article 19

Early-warning and monitoring system

In order to ensure that the budget ceiling referred to in Article 14 is not exceeded, the Commission shall implement a monthly early-warning and monitoring system in respect of EAGF expenditure.

To that end, at the beginning of each budgetary year, the Commission shall determine monthly expenditure profiles based, where appropriate, on average monthly expenditure during the previous three years.

The Commission shall periodically submit a report to the European Parliament and to the Council in which the development of expenditure effected in relation to the profiles is examined and which contains an assessment of the forecasted implementation for the current budgetary year.

Section 2

Financing of expenditure

Article 20

Monthly payments

1.   The appropriations necessary to finance the expenditure referred to in Article 5(2) shall be made available to Member States by the Commission in the form of monthly payments on the basis of the expenditure effected by the accredited paying agencies during a reference period.

2.   Until the Commission transfers the monthly payments, the resources required to effect expenditure shall be mobilised by the Member States according to the needs of their accredited paying agencies.

Article 21

Procedure for monthly payments

1.   Without prejudice to Articles 53, 54 and 55, monthly payments shall be made by the Commission for expenditure effected by accredited paying agencies during the reference month.

2.   Monthly payments shall be made to each Member State on or before the third working day of the second month following that in which the expenditure is effected, taking account of the reductions or suspensions applied under Articles 39 to 42 or any other corrections. Expenditure effected by Member States between 1 and 15 October shall count as having been made in the month of October. Expenditure effected between 16 and 31 October shall count as having been made in the month of November.

3.   The Commission shall adopt implementing acts determining the monthly payments which it makes on the basis of a declaration of expenditure from the Member States and the information supplied in accordance with Article 90(1). Those implementing acts shall be adopted without applying the procedure referred to in Article 103.

4.   The Commission may adopt implementing acts determining supplementary payments or deductions adjusting the payments made in accordance with paragraph 3. Those implementing acts shall be adopted without applying the procedure referred to in Article 103.

5.   The Commission shall inform the Member State forthwith of any overrun of financial ceilings by the Member State.

Article 22

Administrative and personnel costs

Expenditure relating to administrative and personnel costs effected by Member States and by beneficiaries of aid from the EAGF shall not be borne by the EAGF.

Article 23

Public intervention expenditure

1.   Where, within the framework of the common organisation of the markets, a sum per unit is not determined in respect of a public intervention, the EAGF shall finance the measure concerned on the basis of uniform standard amounts, in particular as regards funds originating in the Member States used for buying in products, for material operations arising from storage and, where appropriate, for the processing of the products eligible for public intervention referred to in Article 11 of Regulation (EU) No 1308/2013.

2.   The Commission is empowered to adopt delegated acts in accordance with Article 102 supplementing this Regulation with rules on:

| (a) | the type of measures eligible for Union financing and the reimbursement conditions; |
| --- | --- |

(a)

the type of measures eligible for Union financing and the reimbursement conditions;

| (b) | the eligibility conditions and calculation methods based on the information actually observed by the paying agencies, on flat rates determined by the Commission, or on flat-rate or non-flat-rate amounts provided for by the agricultural legislation in specific sectors; |
| --- | --- |

(b)

the eligibility conditions and calculation methods based on the information actually observed by the paying agencies, on flat rates determined by the Commission, or on flat-rate or non-flat-rate amounts provided for by the agricultural legislation in specific sectors;

| (c) | the valuation of operations in connection with public intervention, the measures to be taken in the case of loss or deterioration of products under the public intervention, and the determination of the amounts to be financed. |
| --- | --- |

(c)

the valuation of operations in connection with public intervention, the measures to be taken in the case of loss or deterioration of products under the public intervention, and the determination of the amounts to be financed.

3.   The Commission shall adopt implementing acts fixing the amounts referred to in paragraph 1. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 103(2).

Article 24

Acquisition of satellite data

The list of satellite data required for the area monitoring system referred to in Article 66(1), point (c), shall be agreed by the Commission and the Member States in accordance with the specification prepared by each Member State.

In accordance with Article 7, point (b), the Commission shall supply that satellite data free of charge to the authorities competent for the area monitoring system or to suppliers of services authorised by those authorities to represent them.

The Commission shall remain the owner of the satellite data.

The Commission may entrust specialised bodies to carry out tasks relating to techniques or working methods in connection with the area monitoring system referred to in Article 66(1), point (c).

Article 25

Monitoring of agricultural resources

1.   The actions financed pursuant to Article 7, point (c), shall aim to give the Commission the means to:

| (a) | manage Union agricultural markets in a global context; |
| --- | --- |

(a)

manage Union agricultural markets in a global context;

| (b) | ensure agri-economic and agri-environmental-climate monitoring of agricultural land use and agricultural land use change, including agro-forestry, and monitoring of the condition of soil, crops, agricultural landscapes and agricultural land so as to enable estimates to be made, in particular as regards yields and agricultural production and agricultural impacts associated with exceptional circumstances, and to enable the assessment of the resilience of agricultural systems and progress towards the achievement of the relevant United Nations Sustainable Development Goals; |
| --- | --- |

(b)

ensure agri-economic and agri-environmental-climate monitoring of agricultural land use and agricultural land use change, including agro-forestry, and monitoring of the condition of soil, crops, agricultural landscapes and agricultural land so as to enable estimates to be made, in particular as regards yields and agricultural production and agricultural impacts associated with exceptional circumstances, and to enable the assessment of the resilience of agricultural systems and progress towards the achievement of the relevant United Nations Sustainable Development Goals;

| (c) | share the access to the estimates referred to in point (b) in an international context, such as the initiatives coordinated by United Nations organisations, including the constitution of greenhouse gas inventories under the United Nations Framework Convention on Climate Change, or other international agencies; |
| --- | --- |

(c)

share the access to the estimates referred to in point (b) in an international context, such as the initiatives coordinated by United Nations organisations, including the constitution of greenhouse gas inventories under the United Nations Framework Convention on Climate Change, or other international agencies;

| (d) | contribute to specific measures increasing the transparency of world markets, taking account of Union objectives and commitments; |
| --- | --- |

(d)

contribute to specific measures increasing the transparency of world markets, taking account of Union objectives and commitments;

| (e) | ensure technological follow-up of the agri-meteorological system. |
| --- | --- |

(e)

ensure technological follow-up of the agri-meteorological system.

2.   Pursuant to Article 7, point (c), the Commission shall finance the actions concerning:

| (a) | the collection or purchase of data needed to implement and monitor the CAP, including satellite data, geo-spatial data and meteorological data; |
| --- | --- |

(a)

the collection or purchase of data needed to implement and monitor the CAP, including satellite data, geo-spatial data and meteorological data;

| (b) | the creation of a spatial data infrastructure and a website; |
| --- | --- |

(b)

the creation of a spatial data infrastructure and a website;

| (c) | the carrying out of specific studies on climatic conditions; |
| --- | --- |

(c)

the carrying out of specific studies on climatic conditions;

| (d) | remote sensing used to assist in the monitoring of agricultural land use change and soil health; and |
| --- | --- |

(d)

remote sensing used to assist in the monitoring of agricultural land use change and soil health; and

| (e) | the updating of agri-meteorological and econometric models. |
| --- | --- |

(e)

the updating of agri-meteorological and econometric models.

Where necessary, those actions shall be carried out in collaboration with the European Environment Agency, the Joint Research Centre, national laboratories and bodies or with the involvement of the private sector.

Article 26

Implementing powers relating to Articles 24 and 25

The Commission may adopt implementing acts laying down:

| (a) | rules relating to the financing pursuant to Article 7, points (b) and (c); |
| --- | --- |

(a)

rules relating to the financing pursuant to Article 7, points (b) and (c);

| (b) | the procedure under which the measures referred to in Articles 24 and 25 are to be carried out in order to meet the objectives assigned; |
| --- | --- |

(b)

the procedure under which the measures referred to in Articles 24 and 25 are to be carried out in order to meet the objectives assigned;

| (c) | the framework governing the acquisition, enhancing and use of satellite data and meteorological data, and the applicable deadlines. |
| --- | --- |

(c)

the framework governing the acquisition, enhancing and use of satellite data and meteorological data, and the applicable deadlines.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 103(3).

CHAPTER II

EAFRD

Section 1

General provisions concerning the EAFRD

Article 27

Provisions applying to all payments

1.   Payments by the Commission of the EAFRD contribution referred to in Article 6 shall not exceed the budgetary commitments.

Without prejudice to Article 34(1), those payments shall be assigned to the earliest open budgetary commitment.

2.   Article 110 of the Financial Regulation shall apply.

Section 2

EAFRD financing under the CAP Strategic Plan

Article 28

Financial contribution from the EAFRD

The financial contribution from the EAFRD towards expenditure under CAP Strategic Plans shall be determined for each CAP Strategic Plan within the ceilings established by Union law concerning support for CAP Strategic Plan interventions by the EAFRD.

Article 29

Budgetary commitments

1.   The Commission’s implementing decision approving a CAP Strategic Plan shall constitute a financing decision within the meaning of Article 110(1) of the Financial Regulation and, once notified to the Member State concerned, a legal commitment within the meaning of that Regulation. That implementing decision shall specify the contribution per year.

2.   The Union’s budgetary commitments in respect of each CAP Strategic Plan shall be made in annual instalments between 1 January 2023 and 31 December 2027. By way of derogation from Article 111(2) of the Financial Regulation, for each CAP Strategic Plan, the budgetary commitments for the first instalment shall be made after the Commission approves that CAP Strategic Plan and notifies the Member State concerned thereof. The budgetary commitments for subsequent instalments shall be made by the Commission before 1 May of each year, on the basis of the implementing decision referred to in paragraph 1 of this Article, except where Article 16 of the Financial Regulation applies.

Section 3

Financial contribution to interventions for rural development

Article 30

Provisions applying to payments for interventions for rural development

1.   The appropriations necessary to finance the expenditure referred to in Article 6 shall be made available to Member States in the form of prefinancing, interim payments and the payment of a balance, as described in this Section.

2.   The combined total of prefinancing and interim payments shall not exceed 95 % of the EAFRD’s contribution to each CAP Strategic Plan.

When the ceiling of 95 % is reached, the Member States shall continue transmitting requests for payments to the Commission.

Article 31

Prefinancing arrangements

1.   Following its implementing decision approving the CAP Strategic Plan, the Commission shall pay an initial prefinancing amount to the Member State for the entire duration of the CAP Strategic Plan. This initial prefinancing amount shall be paid in instalments as follows:

| (a) | in 2023: 1 % of the amount of support from the EAFRD for the entire duration of the CAP Strategic Plan; |
| --- | --- |

(a)

in 2023: 1 % of the amount of support from the EAFRD for the entire duration of the CAP Strategic Plan;

| (b) | in 2024: 1 % of the amount of support from the EAFRD for the entire duration of the CAP Strategic Plan; |
| --- | --- |

(b)

in 2024: 1 % of the amount of support from the EAFRD for the entire duration of the CAP Strategic Plan;

| (c) | in 2025: 1 % of the amount of support from the EAFRD for the entire duration of the CAP Strategic Plan. |
| --- | --- |

(c)

in 2025: 1 % of the amount of support from the EAFRD for the entire duration of the CAP Strategic Plan.

If a CAP Strategic Plan is approved in 2024 or later, the instalments from previous years shall be paid without delay following such approval.

2.   The total amount paid as prefinancing shall be reimbursed to the Commission if no expenditure is effected and no declaration of expenditure for the CAP Strategic Plan is sent within 24 months of the date on which the Commission pays the first instalment of the prefinancing amount. That prefinancing shall be offset against the earliest expenditure declared for the CAP Strategic Plan.

3.   No additional prefinancing shall be paid or recovered where a transfer to or from the EAFRD has taken place in accordance with Article 103 of Regulation (EU) 2021/2115.

4.   Interest generated on the prefinancing shall be used for the CAP Strategic Plan concerned and deducted from the amount of public expenditure indicated on the final declaration of expenditure.

5.   The total prefinancing amount shall be cleared in accordance with the procedure referred to in Article 53 before the CAP Strategic Plan is closed.

Article 32

Interim payments

1.   Interim payments shall be made for each CAP Strategic Plan. They shall be calculated by applying the contribution rate referred to in Article 91 of Regulation (EU) 2021/2115 to the public expenditure effected for each type of intervention, excluding payments made from the additional national financing referred to in Article 115(5) of that Regulation.

Interim payments shall also include the amounts referred to in Article 94(2) of Regulation (EU) 2021/2115.

2.   Subject to the availability of resources, the Commission shall, taking account of reductions or suspensions applied under Articles 39 to 42, make interim payments in order to reimburse the expenditure effected by accredited paying agencies in implementing the CAP Strategic Plans.

3.   Where financial instruments are implemented in accordance with Article 59(1) of Regulation (EU) 2021/1060, the declaration of expenditure shall include the total amounts disbursed or, in the case of guarantees, set aside for guarantee contracts by the managing authority to, or for the benefit of, final recipients as referred to in Article 80(5), first subparagraph, points (a), (b) and (c) of Regulation (EU) 2021/2115.

4.   Where financial instruments are implemented in accordance with Article 59(2) of Regulation (EU) 2021/1060, the declaration of expenditure that includes expenditure for financial instruments shall be submitted in accordance with the following conditions:

| (a) | the amount included in the first declaration of expenditure shall have been previously paid to the financial instrument and may be up to 30 % of the total amount of the eligible public expenditure committed to the financial instruments under the relevant funding agreement; |
| --- | --- |

(a)

the amount included in the first declaration of expenditure shall have been previously paid to the financial instrument and may be up to 30 % of the total amount of the eligible public expenditure committed to the financial instruments under the relevant funding agreement;

| (b) | the amount included in subsequent declarations of expenditure submitted during the eligibility period defined in Article 86(4) of Regulation (EU) 2021/2115 shall include the eligible expenditure referred to in Article 80(5) of that Regulation. |
| --- | --- |

(b)

the amount included in subsequent declarations of expenditure submitted during the eligibility period defined in Article 86(4) of Regulation (EU) 2021/2115 shall include the eligible expenditure referred to in Article 80(5) of that Regulation.

5.   Amounts paid in accordance with paragraph 4, point (a), of this Article shall be considered to be advances for the purposes of Article 37(2). The amount included in the first declaration of expenditure, referred to in paragraph 4, point (a), of this Article, shall be cleared from Commission accounts no later than in the annual accounts for the last implementation year for the relevant CAP Strategic Plan.

6.   Each interim payment shall be made by the Commission, subject to compliance with the following requirements:

| (a) | transmission to the Commission of a declaration of expenditure signed by the accredited paying agency, in accordance with Article 90(1), point (c); |
| --- | --- |

(a)

transmission to the Commission of a declaration of expenditure signed by the accredited paying agency, in accordance with Article 90(1), point (c);

| (b) | no overrun of the total EAFRD contribution to each type of intervention for the entire period covered by the CAP Strategic Plan concerned; |
| --- | --- |

(b)

no overrun of the total EAFRD contribution to each type of intervention for the entire period covered by the CAP Strategic Plan concerned;

| (c) | transmission to the Commission of the documents to be submitted in accordance with Article 9(3) and Article 12(2). |
| --- | --- |

(c)

transmission to the Commission of the documents to be submitted in accordance with Article 9(3) and Article 12(2).

7.   If any of the requirements laid down in paragraph 6 is not met, the Commission shall forthwith inform the accredited paying agency, or the coordinating body where one has been designated. If any of the requirements laid down in paragraph 6, point (a) or point (c), is not fulfilled, the declaration of expenditure shall be deemed inadmissible.

8.   Without prejudice to Articles 53, 54 and 55, the Commission shall make interim payments within 45 days of registering a declaration of expenditure which meets the requirements laid down in paragraph 6 of this Article.

9.   Accredited paying agencies shall establish interim declarations of expenditure relating to CAP Strategic Plans and send these to the Commission, either directly or via the coordinating body, where one has been designated, within periods to be set by the Commission. The Commission shall adopt implementing acts laying down those periods. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 103(3).

Declarations of expenditure shall cover expenditure that the paying agencies have effected during each of the periods concerned. They shall also cover the amounts referred to in Article 94(2) of Regulation (EU) 2021/2115. However, if expenditure referred to in Article 86(3) of that Regulation cannot be declared to the Commission in the period concerned due to the pending approval by the Commission of an amendment to the CAP Strategic Plan in accordance with Article 119(10) of that Regulation, that expenditure may be declared in subsequent periods.

Interim declarations of expenditure in respect of expenditure effected from 16 October onwards shall be booked to the following year’s budget.

10.   Where the authorising officer by sub-delegation requires further verification owing to incomplete or unclear information provided or arising from disagreement, differences of interpretation or any other inconsistency relating to a declaration of expenditure for a reference period, arising in particular from a failure to communicate the information required under Regulation (EU) 2021/2115 and Commission acts adopted pursuant to that Regulation, the Member State concerned shall, upon request by the authorising officer by sub-delegation, provide additional information within a period set in that request according to the seriousness of the problem.

The time limit for interim payments laid down in paragraph 8 may be interrupted, for all or part of the amount for which payment is claimed, for a maximum period of six months from the date on which the request for information is sent until receipt of the information requested which is deemed satisfactory. The Member State may agree to extend the interruption period for a further period of three months.

Where the Member State concerned fails to respond to the request for additional information within the period set in that request or where the response is considered unsatisfactory or indicates that the applicable rules have not been complied with or that Union funds have been improperly used, the Commission may suspend or reduce payments in accordance with Articles 39 to 42.

Article 33

Payment of the balance and closure of the interventions for rural development in the CAP Strategic Plan

1.   After receiving the last annual performance report on the implementation of a CAP Strategic Plan, the Commission shall pay the balance, subject to the availability of resources, on the basis of the financial plan in force at the level of the types of EAFRD intervention, of the annual accounts for the last implementation year for the relevant CAP Strategic Plan and of the corresponding clearance decisions. Those accounts shall be presented to the Commission no later than six months after the final eligibility date of expenditure provided for in Article 86(4) of Regulation (EU) 2021/2115 and shall cover the expenditure effected by the paying agency up to the last eligibility date of expenditure.

2.   The balance shall be paid no later than six months from the date on which the information and documents referred to in paragraph 1 of this Article are considered to be admissible by the Commission and the last set of annual accounts has been cleared. Without prejudice to Article 34(5), the amounts still committed after the balance is paid shall be decommitted by the Commission within a period of six months.

3.   If, by the time limit set out in paragraph 1 of this Article, the Commission has not received the last annual performance report and the documents needed for clearance of the annual accounts for the last implementation year of the CAP Strategic Plan, the balance shall be automatically decommitted in accordance with Article 34.

Article 34

Automatic decommitment for CAP Strategic Plans

1.   The Commission shall automatically decommit any portion of a budgetary commitment for interventions for rural development in a CAP Strategic Plan that has not been used for the purposes of prefinancing or for making interim payments or for which it has received no declaration of expenditure fulfilling the requirements laid down in Article 32(6), points (a) and (c), in relation to expenditure effected by 31 December of the second year following that of the budgetary commitment.

2.   The part of budgetary commitments that is still open on the last eligibility date for expenditure as referred to in Article 86(4) of Regulation (EU) 2021/2115 for which no declaration of expenditure has been made within six months of that date shall be automatically decommitted.

3.   In the event of legal proceedings or of an administrative appeal having suspensory effect, the period for automatic decommitment referred to in paragraph 1 or 2 shall, in respect of the amount relating to the operations concerned, be interrupted for the duration of those proceedings or that administrative appeal, provided that the Commission receives a reasoned notification from the Member State by 31 January of year N + 3.

4.   The following shall be disregarded in calculating the automatic decommitment:

| (a) | that part of the budgetary commitments for which a declaration of expenditure has been made but for which reimbursement has been reduced or suspended by the Commission on 31 December of year N + 2; |
| --- | --- |

(a)

that part of the budgetary commitments for which a declaration of expenditure has been made but for which reimbursement has been reduced or suspended by the Commission on 31 December of year N + 2;

| (b) | that part of the budgetary commitments which a paying agency has been unable to disburse for reasons of force majeure seriously affecting the implementation of the CAP Strategic Plan; national authorities claiming force majeure shall demonstrate the direct consequences on the implementation of all or part of the interventions for rural development in the CAP Strategic Plan. |
| --- | --- |

(b)

that part of the budgetary commitments which a paying agency has been unable to disburse for reasons of force majeure seriously affecting the implementation of the CAP Strategic Plan; national authorities claiming force majeure shall demonstrate the direct consequences on the implementation of all or part of the interventions for rural development in the CAP Strategic Plan.

By 31 January of each year, the Member State shall send to the Commission information on the exceptions referred to in the first subparagraph concerning the amounts declared by the end of the preceding year.

5.   The Commission shall inform Member States in good time if there is a risk of automatic decommitment. It shall inform them of the amount involved as indicated by the information in its possession. The Member States shall have two months from the date upon which they receive that information to agree to the amount concerned or to submit comments. The Commission shall carry out the automatic decommitment not later than nine months after the expiry of the last time-limit referred to in paragraphs 1, 2 and 3.

6.   In the event of automatic decommitment, the EAFRD contribution to the CAP Strategic Plan concerned shall be reduced, for the year in question, by the amount automatically decommitted. The Member State concerned shall produce a revised financing plan splitting the reduction of the aid among the types of intervention for approval by the Commission. If it does not do so, the Commission shall reduce the amounts allocated to each type of intervention pro rata.

CHAPTER III

Common provisions

Article 35

Agricultural financial year

Without prejudice to special provisions on declarations of expenditure and revenue relating to public intervention laid down by the Commission pursuant to Article 47(2), first subparagraph, point (a), the financial year shall cover expenditure paid and revenue received and entered in the accounts of the EAGF and EAFRD by the paying agencies in respect of financial year N beginning on 16 October of year N – 1 and ending on 15 October of year N.

Article 36

No double funding

Member States shall ensure that expenditure financed under the EAGF or the EAFRD is not the subject of any other financing from the Union budget.

Under the EAFRD, an operation may receive different forms of support from the CAP Strategic Plan and from the other funds referred to in Article 1(1) of Regulation (EU) 2021/1060 or from other Union instruments only if the total cumulated aid amount granted under the different forms of support does not exceed the highest aid intensity or aid amount applicable to that type of intervention as referred to in Title III of Regulation (EU) 2021/2115. In such cases Member States shall not declare the same expenditure to the Commission for support:

| (a) | from another fund referred to in Article 1(1) of Regulation (EU) 2021/1060 or from another Union instrument; or |
| --- | --- |

(a)

from another fund referred to in Article 1(1) of Regulation (EU) 2021/1060 or from another Union instrument; or

| (b) | from the same CAP Strategic Plan. |
| --- | --- |

(b)

from the same CAP Strategic Plan.

The amount of expenditure to be entered into a declaration of expenditure may be calculated on a pro rata basis, in accordance with the document setting out the conditions for support.

Article 37

Eligibility of expenditure effected by the paying agencies

1.   The expenditure referred to in Article 5(2) and Article 6 may be financed by the Union only if it has been effected by accredited paying agencies and if:

| (a) | it has been effected in accordance with the applicable Union rules; or |
| --- | --- |

(a)

it has been effected in accordance with the applicable Union rules; or

| (b) | as regards types of intervention referred to in Regulation (EU) 2021/2115:






  (i) | it is matched by a corresponding reported output; and |
| --- | --- | --- |

(b)

as regards types of intervention referred to in Regulation (EU) 2021/2115:

(i)

it is matched by a corresponding reported output; and

| (ii) | it has been effected in accordance with the applicable governance systems, not extending to the eligibility conditions for individual beneficiaries laid down in the relevant CAP Strategic Plan. |
| --- | --- |

(ii)

it has been effected in accordance with the applicable governance systems, not extending to the eligibility conditions for individual beneficiaries laid down in the relevant CAP Strategic Plan.

2.   Paragraph 1, point (b)(i), shall not apply to advances paid to beneficiaries under types of intervention referred to in Regulation (EU) 2021/2115.

Article 38

Compliance with payment deadlines

1.   Where payment deadlines are laid down by Union law, any payment that a paying agency makes to a beneficiary before the earliest possible date of payment or after the latest possible date of payment shall be ineligible for Union financing.

2.   The Commission is empowered to adopt delegated acts in accordance with Article 102 supplementing this Regulation with rules on the circumstances and conditions in which the payments referred to in paragraph 1 of this Article may be deemed eligible, taking into account the principle of proportionality.

Article 39

Reduction of monthly and interim payments

1.   Where the Commission establishes from declarations of expenditure or the information, declarations and documents referred to in Article 90 that financial ceilings set by Union law have been exceeded, the Commission shall reduce the monthly or interim payments to the Member State concerned in the framework of the implementing acts concerning the monthly payments referred to in Article 21(3) or in the framework of the interim payments referred to in Article 32.

2.   Where the Commission establishes from declarations of expenditure or the information, declarations and documents referred to in Article 90 that the payment deadlines referred to in Article 38 have not been complied with, it shall inform the Member State concerned thereof and give it the opportunity to submit its comments within a period which shall not be less than 30 days. Where the Member State fails to submit its comments within that period or where the Commission has concluded that the response provided is manifestly insufficient, the Commission may reduce the monthly or interim payments to the Member State concerned in the framework of the implementing acts concerning the monthly payments referred to in Article 21(3) or in the framework of the interim payments referred to in Article 32.

3.   Reductions under this Article shall be without prejudice to Article 53.

4.   The Commission may adopt implementing acts laying down further rules on the procedure and other practical arrangements for the proper functioning of the mechanism provided for in Article 38. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 103(3).

Article 40

Suspension of payments in relation to the annual clearance

1.   Where Member States do not submit the documents referred to in Article 9(3) and Article 12(2) by the deadlines provided for in Article 9(3), the Commission may adopt implementing acts suspending the total amount of the monthly payments referred to in Article 21(3). The Commission shall reimburse the suspended amounts when it receives the missing documents from the Member State concerned, provided that the date of receipt is not later than six months after the deadline concerned.

As regards the interim payments referred to in Article 32, declarations of expenditure shall be deemed inadmissible in accordance with paragraph 7 of that Article.

2.   Where, in the framework of the annual performance clearance referred to in Article 54, the Commission establishes that the difference between the expenditure declared and the amount corresponding to the relevant reported output is more than 50 % and the Member State cannot provide duly justified reasons, the Commission may adopt implementing acts suspending the monthly payments referred to in Article 21(3) or the interim payments referred to in Article 32.

The suspension shall be applied to the relevant expenditure in respect of the interventions which have been subject to the reduction referred to in Article 54(2) and the amount to be suspended shall not exceed the percentage corresponding to the reduction applied in accordance with Article 54(2). The amounts suspended shall be reimbursed by the Commission to the Member States or permanently reduced at the latest by means of the implementing act referred to in Article 54 relating to the year for which the payments were suspended. However, if Member States demonstrate that the necessary corrective actions have been taken, the Commission may lift the suspension earlier in a separate implementing act.

3.   The Commission is empowered to adopt delegated acts in accordance with Article 102 supplementing this Regulation with rules on the rate of suspension of payments.

4.   The implementing acts provided for in paragraphs 1 and 2 of this Article shall be adopted in accordance with the advisory procedure referred to in Article 103(2).

Before adopting the implementing acts referred to in paragraph 1 and in paragraph 2, first subparagraph, of this Article, the Commission shall inform the Member State concerned of its intention and shall give the Member State the opportunity to submit its comments within a period which shall not be less than 30 days.

5.   The implementing acts determining the monthly payments referred to in Article 21(3) or the interim payments referred to in Article 32 shall take account of the implementing acts adopted under this Article.

Article 41

Suspension of payments in relation to the multi-annual performance monitoring

1.   Where, in accordance with Article 135(2) and (3) of Regulation (EU) 2021/2115, the Commission asks the Member State concerned to submit an action plan, that Member State shall establish such an action plan in consultation with the Commission. The action plan shall include the intended remedial actions and clear progress indicators together with the timeframe during which the progress has to be achieved. That timeframe may extend beyond one financial year.

The Member State concerned shall respond within a period of two months of the Commission’s request for an action plan.

Within a period of two months of receipt of the action plan from the Member State concerned, the Commission shall, where appropriate, inform that Member State in writing of its objections to the action plan submitted and request its modification. The Member State concerned shall comply with the action plan, as accepted by the Commission, and comply with the expected timeframe for its execution.

The Commission shall adopt implementing acts laying down further rules on the structure of the action plans and the procedure for setting up the action plans. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 103(3).

2.   If the Member State fails to submit or to implement the action plan referred to in paragraph 1 of this Article, or if that action plan is manifestly insufficient to remedy the situation, or if it has not been modified in accordance with the written request of the Commission referred to in that paragraph, the Commission may adopt implementing acts suspending the monthly payments referred to in Article 21(3) or the interim payments referred to in Article 32.

By way of derogation from the first subparagraph of this paragraph, the request for an action plan by the Commission for the financial year 2025 shall not lead to a suspension of payments before the performance review for the financial year 2026, as provided for in Article 135(3) of Regulation (EU) 2021/2115.

The suspension of payments referred to in the first subparagraph shall be applied in accordance with the principle of proportionality to the relevant expenditure related to the interventions which were to be covered by that action plan.

The Commission shall reimburse the suspended amounts when, on the basis of the performance review referred to in Article 135 of Regulation (EU) 2021/2115 or on the basis of the voluntary notification made during the financial year by the Member State concerned on the advancement of the action plan and of the corrective action taken to remedy the shortfall, satisfactory progress towards targets is achieved.

If the situation is not remedied by the end of the 12th month following the suspension of payments, the Commission may adopt an implementing act definitively reducing the amount suspended for the Member State concerned.

The implementing acts provided for in this paragraph shall be adopted in accordance with the advisory procedure referred to in Article 103(2).

Before adopting such implementing acts, the Commission shall inform the Member State concerned of its intention and shall ask it to respond within a period which shall not be less than 30 days.

3.   The Commission is empowered to adopt delegated acts in accordance with Article 102 supplementing this Regulation with rules on the rate and duration of suspension of payments and the condition for reimbursing or reducing those amounts with regard to the multi-annual performance monitoring.

Article 42

Suspension of payments in relation to deficiencies in the governance systems

1.   In the event of serious deficiencies in the proper functioning of the governance systems, the Commission shall, where necessary, ask the Member State concerned to submit an action plan including the necessary remedial actions and clear progress indicators. That action plan shall be established in consultation with the Commission. The Member State concerned shall respond within a period of two months of the Commission’s request in order to assess the need for an action plan.

The Commission shall adopt implementing acts laying down rules on the structure of the action plans and the procedure for setting up the action plans. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 103(3).

2.   If the Member State fails to submit or to implement the action plan referred to in paragraph 1 of this Article, or if that action plan is manifestly insufficient to remedy the situation, or if it has not been implemented in accordance with the written request of the Commission referred to in that paragraph, the Commission may adopt implementing acts suspending the monthly payments referred to in Article 21(3) or the interim payments referred to in Article 32.

The suspension shall be applied in accordance with the principle of proportionality to the relevant expenditure effected by the Member State where the deficiencies exist, for a period to be determined in the implementing acts referred to in the first subparagraph of this paragraph which shall not exceed 12 months. If the conditions for the suspension continue to be met, the Commission may adopt implementing acts prolonging that period for further periods not exceeding 12 months in total. The amounts suspended shall be taken into account when adopting the implementing acts referred to in Article 55.

3.   The implementing acts provided for in paragraph 2 shall be adopted in accordance with the advisory procedure referred to in Article 103(2).

Before adopting such implementing acts, the Commission shall inform the Member State concerned of its intention and shall ask it to respond within a period which shall not be less than 30 days.

4.   The implementing acts determining the monthly payments referred to in Article 21(3) or the interim payments referred to in Article 32 shall take into account implementing acts adopted under paragraph 2 of this Article.

Article 43

Keeping separate accounts

1.   Each paying agency shall keep a set of separate accounts for the appropriations entered in the Union budget for the EAGF and EAFRD.

2.   The Commission may adopt implementing acts laying down further rules on the obligation laid down in this Article and the specific conditions applying to the information to be booked in the accounts kept by the paying agencies. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 103(3).

Article 44

Payment to beneficiaries

1.   Except where otherwise explicitly provided for in Union law, Member States shall ensure that payments relating to the financing provided for in this Regulation are disbursed to the beneficiaries in full.

2.   Member States shall ensure that the payments under the interventions and measures referred to in Article 65(2) are made at the earliest on 1 December and at the latest on 30 June of the following calendar year.

Notwithstanding the first subparagraph, Member States may:

| (a) | prior to 1 December, but not before 16 October, pay advances of up to 50 % for interventions in the form of direct payments and for the measures referred to in Chapter IV of Regulation (EU) No 228/2013 and in Chapter IV of Regulation (EU) No 229/2013; |
| --- | --- |

(a)

prior to 1 December, but not before 16 October, pay advances of up to 50 % for interventions in the form of direct payments and for the measures referred to in Chapter IV of Regulation (EU) No 228/2013 and in Chapter IV of Regulation (EU) No 229/2013;

| (b) | prior to 1 December pay advances of up to 75 % for the support granted under interventions for rural development referred to in Article 65(2). |
| --- | --- |

(b)

prior to 1 December pay advances of up to 75 % for the support granted under interventions for rural development referred to in Article 65(2).

3.   Member States may decide to pay advances of up to 50 % under the interventions referred to in Articles 73 and 77 of Regulation (EU) 2021/2115.

4.   The Commission is empowered to adopt delegated acts in accordance with Article 102 amending this Article by adding rules allowing Member States to pay advances as regards the interventions referred to in Title III, Chapter III, of Regulation (EU) 2021/2115 and as regards measures regulating or supporting agricultural markets laid down in Regulation (EU) No 1308/2013 in order to ensure the coherent and non-discriminatory payment of advances.

5.   The Commission is empowered to adopt delegated acts in accordance with Article 102 supplementing this Regulation by setting up specific conditions for the payment of advances to ensure the coherent and non-discriminatory payment of advances.

6.   Upon the request of a Member State, in the event of an emergency, and within the limits of Article 11(2), point (b), of the Financial Regulation, the Commission shall adopt, where appropriate, implementing acts concerning the application of this Article. Those implementing acts may derogate from paragraph 2 of this Article, but only to the extent that, and for such a period, as is strictly necessary. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 103(3).

Article 45

Assignment of revenue

1.   The following shall be considered as assigned revenue within the meaning of Article 21(5) of the Financial Regulation:

| (a) | as regards expenditure under both the EAGF and the EAFRD, sums under Articles 38, 54 and 55 of this Regulation and Article 54 of Regulation (EU) No 1306/2013 applicable in accordance with Article 104 of this Regulation and, as regards expenditure under the EAGF, sums under Articles 53 and 56 of this Regulation which are to be paid into the Union budget, including interest thereon; |
| --- | --- |

(a)

as regards expenditure under both the EAGF and the EAFRD, sums under Articles 38, 54 and 55 of this Regulation and Article 54 of Regulation (EU) No 1306/2013 applicable in accordance with Article 104 of this Regulation and, as regards expenditure under the EAGF, sums under Articles 53 and 56 of this Regulation which are to be paid into the Union budget, including interest thereon;

| (b) | amounts corresponding to penalties applied in accordance with Articles 12 and 14 of Regulation (EU) 2021/2115 as regards expenditure under the EAGF; |
| --- | --- |

(b)

amounts corresponding to penalties applied in accordance with Articles 12 and 14 of Regulation (EU) 2021/2115 as regards expenditure under the EAGF;

| (c) | any security, deposit or guarantee provided pursuant to Union law adopted within the framework of the CAP, excluding interventions for rural development, and subsequently forfeited; however, forfeited securities lodged when issuing export or import licences or under a tendering procedure for the sole purpose of ensuring that tenderers submit genuine tenders shall be retained by the Member States; |
| --- | --- |

(c)

any security, deposit or guarantee provided pursuant to Union law adopted within the framework of the CAP, excluding interventions for rural development, and subsequently forfeited; however, forfeited securities lodged when issuing export or import licences or under a tendering procedure for the sole purpose of ensuring that tenderers submit genuine tenders shall be retained by the Member States;

| (d) | sums definitively reduced in accordance with Article 41(2). |
| --- | --- |

(d)

sums definitively reduced in accordance with Article 41(2).

2.   The sums referred to in paragraph 1 shall be paid into the Union budget and, in the event of reuse, shall be used exclusively to finance EAGF or EAFRD expenditure.

3.   This Regulation shall apply mutatis mutandis to assigned revenue referred to in paragraph 1.

4.   As regards the EAGF, Article 113 of the Financial Regulation shall apply mutatis mutandis to the keeping of accounts on assigned revenue referred to in this Regulation.

Article 46

Information measures

1.   The provision of information financed pursuant to Article 7, point (e), shall aim, in particular, to help explain, implement and develop the CAP and to raise public awareness of its content and objectives, including its interaction with the climate, the environment and animal welfare. This is done to inform citizens about the challenges faced in agriculture and food, to inform farmers and consumers, to restore consumer confidence following crises through information campaigns, to inform other parties active in rural areas and to promote a more sustainable Union model of agriculture, as well as to help citizens understand it.

It shall supply coherent, evidence-based, objective and comprehensive information, both inside and outside the Union, and outline the communication actions planned in the Commission’s multiannual strategic plan for agriculture and rural development.

2.   The measures referred to in paragraph 1 may consist of:

| (a) | annual work programmes or other specific measures presented by third parties; |
| --- | --- |

(a)

annual work programmes or other specific measures presented by third parties;

| (b) | activities implemented on the initiative of the Commission. |
| --- | --- |

(b)

activities implemented on the initiative of the Commission.

Those measures which are required by law or those measures already receiving financing under another Union action shall be excluded.

When implementing the activities referred to in the first subparagraph, point (b), the Commission may be assisted by external experts.

The measures referred to in the first subparagraph shall also contribute to the corporate communication of the Union’s political priorities in so far as those priorities are related to the general objectives of this Regulation.

3.   The Commission shall publish once a year a call for proposals respecting the conditions set out in the Financial Regulation.

4.   The committee referred to in Article 103(1) shall be notified of measures envisaged and taken pursuant to this Article.

5.   The Commission shall submit a report on the implementation of this Article to the European Parliament and to the Council every two years.

Article 47

Other Commission powers relating to this Chapter

1.   The Commission is empowered to adopt delegated acts in accordance with Article 102 supplementing this Regulation with the conditions under which certain types of expenditure and revenue under the EAGF and EAFRD are to be compensated.

If the Union budget has not been adopted by the beginning of the budgetary year or if the total amount of the commitments scheduled exceeds the threshold laid down in Article 11(2) of the Financial Regulation, the Commission is empowered to adopt delegated acts in accordance with Article 102 of this Regulation supplementing this Regulation with rules on the method applicable to the commitments and the payment of the amounts.

2.   The Commission may adopt implementing acts laying down rules on:

| (a) | the financing and accounting of intervention measures in the form of public storage, and other expenditure financed by the EAGF and EAFRD; |
| --- | --- |

(a)

the financing and accounting of intervention measures in the form of public storage, and other expenditure financed by the EAGF and EAFRD;

| (b) | the terms and conditions governing the implementation of the automatic decommitment procedure. |
| --- | --- |

(b)

the terms and conditions governing the implementation of the automatic decommitment procedure.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 103(3).

CHAPTER IV

Clearance of accounts

Section 1

General provisions

Article 48

Single audit approach

In accordance with Article 127 of the Financial Regulation, the Commission shall take assurance from the work of the certification bodies referred to in Article 12 of this Regulation, unless it has informed the Member State concerned that it cannot rely on the work of the certification body for a given financial year, and it shall take it into account in its risk assessment of the need for Commission audits in that Member State. The Commission shall inform that Member State of the reasons why it cannot rely on the work of the certification body concerned.

Article 49

Checks by the Commission

1.   Without prejudice to the checks carried out by Member States under national laws, regulations and administrative provisions or Article 287 TFEU, to any check organised under Article 322 TFEU or based on Regulation (Euratom, EC) No 2185/96, or to Article 127 of the Financial Regulation, the Commission may organise checks in Member States with a view to verifying in particular whether:

| (a) | administrative practices comply with Union rules; |
| --- | --- |

(a)

administrative practices comply with Union rules;

| (b) | the expenditure falling within the scope of Article 5(2) and Article 6 of this Regulation and corresponding to the interventions referred to in Regulation (EU) 2021/2115 has a corresponding output as reported in the annual performance report; |
| --- | --- |

(b)

the expenditure falling within the scope of Article 5(2) and Article 6 of this Regulation and corresponding to the interventions referred to in Regulation (EU) 2021/2115 has a corresponding output as reported in the annual performance report;

| (c) | the expenditure corresponding to the measures laid down in Regulations (EU) No 228/2013, (EU) No 229/2013, (EU) No 1308/2013 and (EU) No 1144/2014 has been effected and checked in accordance with applicable Union rules; |
| --- | --- |

(c)

the expenditure corresponding to the measures laid down in Regulations (EU) No 228/2013, (EU) No 229/2013, (EU) No 1308/2013 and (EU) No 1144/2014 has been effected and checked in accordance with applicable Union rules;

| (d) | the work of the certification body is carried out in accordance with Article 12 and for the purposes of Section 2 of this Chapter; |
| --- | --- |

(d)

the work of the certification body is carried out in accordance with Article 12 and for the purposes of Section 2 of this Chapter;

| (e) | a paying agency complies with the minimum conditions for the accreditation laid down in Article 9(2) and whether the Member State correctly applies Article 9(4); |
| --- | --- |

(e)

a paying agency complies with the minimum conditions for the accreditation laid down in Article 9(2) and whether the Member State correctly applies Article 9(4);

| (f) | the Member State concerned implements the CAP Strategic Plan in accordance with Article 9 of Regulation (EU) 2021/2115; |
| --- | --- |

(f)

the Member State concerned implements the CAP Strategic Plan in accordance with Article 9 of Regulation (EU) 2021/2115;

| (g) | the action plans referred to in Article 42 are correctly implemented. |
| --- | --- |

(g)

the action plans referred to in Article 42 are correctly implemented.

Persons authorised by the Commission to carry out checks on its behalf, or Commission agents acting within the scope of the powers conferred on them, shall have access to the books and all other documents, including documents and metadata drawn up or received and recorded on an electronic medium, relating to expenditure financed by the EAGF or the EAFRD.

The powers to carry out checks shall not affect the application of national provisions which reserve certain acts for agents specifically designated by national law. Without prejudice to the specific provisions of Regulation (Euratom, EC) No 2185/96 and Regulation (EU, Euratom) No 883/2013, persons authorised by the Commission to act on its behalf shall not take part, inter alia, in home visits or the formal questioning of persons on the basis of law of the Member State concerned. However, they shall have access to information thus obtained.

2.   The Commission shall give sufficient prior notice of a check to the Member State concerned or to the Member State within whose territory the check is to take place, taking into account the administrative impact on paying agencies when organising checks. Agents from the Member State concerned may take part in such checks.

At the request of the Commission and with the agreement of the Member State, additional checks or inquiries into the operations covered by this Regulation shall be undertaken by the competent bodies of that Member State. Commission agents or persons authorised by the Commission to act on its behalf may take part in such checks.

In order to improve checks, the Commission may, with the agreement of the Member States concerned, request the assistance of the authorities of those Member States for certain checks or inquiries.

Article 50

Access to information

1.   Member States shall make available to the Commission all information necessary for the smooth operation of the EAGF and EAFRD and shall take all appropriate measures to facilitate the checks which the Commission deems appropriate in connection with the management of Union financing.

2.   Member States shall communicate to the Commission at its request the laws, regulations and administrative provisions which they have adopted in order to implement the Union legal acts relating to the CAP and which have a financial impact on the EAGF or the EAFRD.

3.   Member States shall make available to the Commission information about irregularities within the meaning of Regulation (EC, Euratom) No 2988/95 and other cases of non-compliance with the conditions established by Member States in their CAP Strategic Plans, about suspected fraud cases detected, and about the steps taken pursuant to Section 3 of this Chapter to recover undue payments in connection with those irregularities and frauds. The Commission shall summarise and publish that information annually and shall communicate it to the European Parliament.

Article 51

Access to documents

1.   The accredited paying agencies shall keep supporting documents relating to payments made and documents relating to the performance of the checks required by Union law, and shall make those documents and related information available to the Commission.

Those documents and that information may be kept in electronic form under the conditions laid down by the Commission pursuant to paragraph 3.

Where those documents and that information are kept by an authority acting under delegation from a paying agency and responsible for authorising expenditure, that authority shall send reports to the accredited paying agency on the number of checks made, their content and the measures taken in the light of their results.

2.   This Article shall apply mutatis mutandis to the certification bodies.

3.   The Commission may adopt implementing acts laying down rules on the conditions under which the documents and information referred to in this Article are to be kept, including their form and the time period of their storage. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 103(3).

Article 52

Commission powers relating to checks and documents and information and cooperation obligation

1.   The Commission is empowered to adopt delegated acts in accordance with Article 102 which are necessary to ensure the correct and efficient application of the provisions relating to checks and access to documents and information set out in this Chapter, supplementing this Regulation with specific obligations to be complied with by the Member States under this Chapter and with rules on the criteria for determining the cases of irregularity within the meaning of Regulation (EC, Euratom) No 2988/95 and other cases of non-compliance with the conditions established by Member States in the CAP Strategic Plans to be reported and on the data to be provided in this context.

2.   The Commission may adopt implementing acts laying down rules on the procedures relating to the cooperation obligations to be complied with by the Member States for the implementation of Articles 49 and 50. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 103(3).

Section 2

Clearance

Article 53

Annual financial clearance

1.   Prior to 31 May of the year following the relevant budgetary year and on the basis of the information referred to in Article 9(3), first subparagraph, points (a) and (d), the Commission shall adopt implementing acts containing its decision on the clearance of the accounts of the accredited paying agencies for the expenditure referred to in Article 5(2) and Article 6. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 103(2).

Those implementing acts shall cover the completeness, accuracy and veracity of the annual accounts submitted and shall be without prejudice to the content of the implementing acts subsequently adopted pursuant to Articles 54 and 55.

2.   The Commission shall adopt implementing acts laying down rules on the actions necessary for the purposes of adoption and implementation of the implementing acts referred to in paragraph 1, including the rules on information exchange between the Commission and the Member States and the deadlines to be respected. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 103(3).

Article 54

Annual performance clearance

1.   Where the expenditure referred to in Article 5(2) and Article 6 of this Regulation and corresponding to the interventions referred to in Title III of Regulation (EU) 2021/2115 does not have a corresponding output as reported in the annual performance report referred to in Article 9(3) and Article 10 of this Regulation and in Article 134 of Regulation (EU) 2021/2115, the Commission shall adopt implementing acts prior to 15 October of the year following the relevant budgetary year determining the amounts to be reduced from Union financing. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 103(2).

Those implementing acts shall be without prejudice to the content of the implementing acts subsequently adopted pursuant to Article 55 of this Regulation.

2.   The Commission shall assess the amounts to be reduced on the basis of the difference between the annual expenditure declared for an intervention and the amount corresponding to the relevant reported output in accordance with the CAP Strategic Plan and taking account of justifications provided by the Member State in the annual performance reports in accordance with Article 134(8) of Regulation (EU) 2021/2115.

3.   Before the adoption of the implementing act referred to in paragraph 1 of this Article, the Commission shall give the Member State concerned an opportunity to submit its comments and justify any differences within a period which, where the documents referred to in Article 9(3), Article 10 and Article 12(2) have been submitted by the deadline, shall not be less than 30 days.

4.   The Commission is empowered to adopt delegated acts in accordance with Article 102 supplementing this Regulation with rules on the criteria for justifications from the concerned Member State and the methodology and criteria for applying reductions.

5.   The Commission shall adopt implementing acts laying down rules on the actions necessary for the purposes of adoption and implementation of the implementing acts referred to in paragraph 1 of this Article, including the rules on information exchange between the Commission and the Member States and the deadlines to be respected. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 103(3).

Article 55

Conformity procedure

1.   Where the Commission finds that the expenditure referred to in Article 5(2) and Article 6 has not been effected in conformity with Union law, it shall adopt implementing acts determining the amounts to be excluded from Union financing. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 103(2).

However, as regards the types of intervention referred to in Regulation (EU) 2021/2115, the exclusions from Union financing referred to in the first subparagraph of this paragraph shall only apply in the case of serious deficiencies in the proper functioning of the governance systems of the Member States.

The first subparagraph shall not apply to cases of non-compliance with the eligibility conditions for individual beneficiaries laid down in the CAP Strategic Plans and national rules.

2.   The Commission shall assess the amounts to be excluded on the basis of the gravity of the deficiencies found. In that context, it shall take due account of the nature of those deficiencies and of the financial damage incurred by the Union.

3.   Before the adoption of the implementing act referred to in paragraph 1, the Commission findings and the comments of the Member State concerned to those findings shall be notified between the two parties in writing, following which they shall attempt to reach an agreement on the action to be taken. The Member State concerned shall be given the opportunity to demonstrate that the actual extent of the non-compliance is lower than the Commission’s assessment.

If no agreement is reached, the Member State concerned may request the opening of a procedure aimed at reconciling, within a period of four months, each party’s position. The procedure shall be carried out by a conciliation body. A report on the outcome of that procedure shall be submitted to the Commission. The Commission shall take into account the recommendations of the report before deciding on refusal of the financing and shall provide justification if it decides not to follow those recommendations.

4.   Financing shall not be refused for:

| (a) | the expenditure indicated in Article 5(2) which is effected more than 24 months before the Commission notifies the Member State in writing of its findings; |
| --- | --- |

(a)

the expenditure indicated in Article 5(2) which is effected more than 24 months before the Commission notifies the Member State in writing of its findings;

| (b) | expenditure on multiannual interventions falling within the scope of Article 5(2) or within the scope of the interventions for rural development referred to in Article 6, where the final obligation of the beneficiary occurs more than 24 months before the Commission notifies the Member State in writing of its findings; |
| --- | --- |

(b)

expenditure on multiannual interventions falling within the scope of Article 5(2) or within the scope of the interventions for rural development referred to in Article 6, where the final obligation of the beneficiary occurs more than 24 months before the Commission notifies the Member State in writing of its findings;

| (c) | expenditure on the interventions for rural development referred to in Article 6, other than those referred to in point (b) of this paragraph, for which the payment or, as the case may be, the final payment by the paying agency is made more than 24 months before the Commission notifies the Member State in writing of its findings. |
| --- | --- |

(c)

expenditure on the interventions for rural development referred to in Article 6, other than those referred to in point (b) of this paragraph, for which the payment or, as the case may be, the final payment by the paying agency is made more than 24 months before the Commission notifies the Member State in writing of its findings.

5.   Paragraph 4 shall not apply in the case of:

| (a) | aids granted by a Member State for which the Commission has initiated the procedure laid down in Article 108(2) TFEU; |
| --- | --- |

(a)

aids granted by a Member State for which the Commission has initiated the procedure laid down in Article 108(2) TFEU;

| (b) | infringements which the Commission has notified to the Member State concerned by a reasoned opinion in accordance with Article 258 TFEU; |
| --- | --- |

(b)

infringements which the Commission has notified to the Member State concerned by a reasoned opinion in accordance with Article 258 TFEU;

| (c) | infringements by Member States of their obligations under Title IV, Chapter III, of this Regulation, provided that the Commission notifies the Member State in writing of its findings within 12 months following receipt of the Member State’s report on the results of its checks on the expenditure concerned. |
| --- | --- |

(c)

infringements by Member States of their obligations under Title IV, Chapter III, of this Regulation, provided that the Commission notifies the Member State in writing of its findings within 12 months following receipt of the Member State’s report on the results of its checks on the expenditure concerned.

6.   The Commission is empowered to adopt delegated acts in accordance with Article 102 supplementing this Regulation with rules on the criteria and methodology for applying financial corrections.

7.   The Commission shall adopt implementing acts laying down rules on the actions necessary for the purposes of adoption and implementation of the implementing acts referred to in paragraph 1 of this Article, including the rules on information exchange between the Commission and the Member States, on the deadlines to be respected and the conciliation procedure provided for in paragraph 3 of this Article, and on the establishment, tasks, composition and working arrangements of the conciliation body. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 103(3).

Section 3

Recoveries for non-compliance

Article 56

Provisions specific to the EAGF

1.   Sums recovered by the Member States following the occurrence of irregularities and other cases of non-compliance by beneficiaries with the conditions of the interventions referred to in the CAP Strategic Plans and the interest thereon shall be made over to the paying agency and booked by it as revenue assigned to the EAGF in the month in which the sums are actually received.

2.   Member States may, without prejudice to paragraph 1, instruct the paying agency, as the body responsible for the recovery of debt, to deduct any outstanding debts owed by a beneficiary from future payments to that beneficiary.

3.   When the Union budget is credited as referred to in paragraph 1, the Member State concerned may retain 20 % of the corresponding amounts as flat-rate recovery costs, except in cases of non-compliance attributable to its administrative authorities or other official bodies.

Article 57

Provisions specific to the EAFRD

1.   Where irregularities and other cases of non-compliance by beneficiaries, and as regards financial instruments, also by specific funds under holding funds or final recipients, with the conditions of the interventions for rural development specified in the CAP Strategic Plans are detected, Member States shall make financial adjustments by cancelling partially or, when justified, entirely the Union financing concerned. Member States shall take into consideration the nature and gravity of the non-compliance detected and the level of the financial loss to the EAFRD.

Amounts of the Union financing under the EAFRD which are cancelled and amounts recovered, and the interest thereon, shall be reallocated to other rural development operations in the CAP Strategic Plans. However, Member States may reuse the cancelled or recovered Union funds in their entirety only for a rural development operation under their CAP Strategic Plans and may not reallocate them to rural development operations which have been the subject of a financial adjustment.

Member States shall deduct any sums unduly paid as a result of an outstanding irregularity by a beneficiary, in accordance with this Article, from any future payments to the beneficiary by the paying agency.

2.   By way of derogation from paragraph 1, second subparagraph, for interventions for rural development receiving aid from the financial instruments referred to in Article 58 of Regulation (EU) 2021/1060, a contribution cancelled as a result of an individual non-compliance may be reused within the same financial instrument as follows:

| (a) | where the non-compliance that gives rise to the cancellation of the contribution is detected at the level of the final recipient as defined in Article 2, point (18), of Regulation (EU) 2021/1060, only for other final recipients within the same financial instrument; |
| --- | --- |

(a)

where the non-compliance that gives rise to the cancellation of the contribution is detected at the level of the final recipient as defined in Article 2, point (18), of Regulation (EU) 2021/1060, only for other final recipients within the same financial instrument;

| (b) | where the non-compliance that gives rise to the cancellation of the contribution is detected at the level of the specific fund as defined in Article 2, point (21), of Regulation (EU) 2021/1060 within a holding fund as defined in Article 2, point (20), of that Regulation, only for other specific funds. |
| --- | --- |

(b)

where the non-compliance that gives rise to the cancellation of the contribution is detected at the level of the specific fund as defined in Article 2, point (21), of Regulation (EU) 2021/1060 within a holding fund as defined in Article 2, point (20), of that Regulation, only for other specific funds.

Article 58

Implementing powers relating to the possible offsetting of the amounts and notification forms

The Commission shall adopt implementing acts laying down rules on the possible offsetting of the amounts resulting from recovery of undue payments and the forms of notification and communication to be made by the Member States to the Commission in relation to the obligations set out in this Section. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 103(3).

TITLE IV

CONTROL SYSTEMS AND PENALTIES

CHAPTER I

General rules

Article 59

Protection of the financial interests of the Union

1.   Member States shall, within the framework of the CAP, while respecting the applicable governance systems, adopt all laws, regulations and administrative provisions and take any other measures necessary to ensure effective protection of the financial interests of the Union, including effective application of the eligibility of expenditure criteria laid down in Article 37. Those acts and measures shall relate in particular to:

| (a) | checking the legality and regularity of operations financed by the EAGF and EAFRD, including at the level of beneficiaries and as set out in the CAP Strategic Plans; |
| --- | --- |

(a)

checking the legality and regularity of operations financed by the EAGF and EAFRD, including at the level of beneficiaries and as set out in the CAP Strategic Plans;

| (b) | ensuring effective prevention against fraud, especially in areas with a higher level of risk, which will act as a deterrent, having regard to the costs and benefits and the proportionality of the measures; |
| --- | --- |

(b)

ensuring effective prevention against fraud, especially in areas with a higher level of risk, which will act as a deterrent, having regard to the costs and benefits and the proportionality of the measures;

| (c) | preventing, detecting and correcting irregularities and fraud; |
| --- | --- |

(c)

preventing, detecting and correcting irregularities and fraud;

| (d) | imposing penalties which are effective, proportionate and dissuasive in accordance with Union law, or failing this, national law, and bring legal proceedings to that effect, as necessary; |
| --- | --- |

(d)

imposing penalties which are effective, proportionate and dissuasive in accordance with Union law, or failing this, national law, and bring legal proceedings to that effect, as necessary;

| (e) | recovering undue payments plus interest and bring legal proceedings to that effect, as necessary, including for irregularities within the meaning of Article 1(2) of Regulation (EC, Euratom) No 2988/95. |
| --- | --- |

(e)

recovering undue payments plus interest and bring legal proceedings to that effect, as necessary, including for irregularities within the meaning of Article 1(2) of Regulation (EC, Euratom) No 2988/95.

2.   Member States shall set up efficient management and control systems in order to ensure compliance with the Union legislation governing Union interventions.

Member States shall take the actions necessary to ensure the proper functioning of their management and control systems and the legality and regularity of expenditure declared to the Commission.

To assist the Member States in this respect, the Commission shall make available to the Member States a data-mining tool to assess risks presented by projects, beneficiaries, contractors and contracts while ensuring minimal administrative burden and effective protection of the Union financial interests. That data-mining tool may also be used in order to avoid circumvention of rules as referred to in Article 62. By 2025, the Commission shall present a report which assesses the use of the single data-mining tool and its interoperability with a view to its generalised use by Member States.

3.   Member States shall ensure the quality and reliability of the reporting system and of data on indicators.

4.   Member States shall ensure that beneficiaries of the EAGF and EAFRD provide them with the information necessary for their identification, including, where applicable, the identification of the group in which they participate, as defined in Article 2, point (11), of Directive 2013/34/EU of the European Parliament and of the Council (30).

5.   Member States shall take appropriate precautions ensuring that the penalties applied as referred to in paragraph 1, point (d), are proportionate and graduated according to the severity, extent, permanence or reoccurrence of the non-compliance detected.

The arrangements set out by Member States shall ensure, in particular, that no penalties are imposed where:

| (a) | the non-compliance is due to force majeure or exceptional circumstances in accordance with Article 3; |
| --- | --- |

(a)

the non-compliance is due to force majeure or exceptional circumstances in accordance with Article 3;

| (b) | the non-compliance is due to an error of the competent authority or another authority, and where the error could not reasonably have been detected by the person concerned by the administrative penalty; |
| --- | --- |

(b)

the non-compliance is due to an error of the competent authority or another authority, and where the error could not reasonably have been detected by the person concerned by the administrative penalty;

| (c) | the person concerned can demonstrate to the satisfaction of the competent authority that he or she is not at fault for the non-compliance with the obligations referred to in paragraph 1 of this Article or where the competent authority is otherwise satisfied that the person concerned is not at fault. |
| --- | --- |

(c)

the person concerned can demonstrate to the satisfaction of the competent authority that he or she is not at fault for the non-compliance with the obligations referred to in paragraph 1 of this Article or where the competent authority is otherwise satisfied that the person concerned is not at fault.

Where the non-compliance with the conditions for the granting of the aid is due to force majeure or exceptional circumstances in accordance with Article 3, the beneficiary shall retain the right to receive aid.

6.   Member States may in their management and control systems include the possibility for aid applications and payment claims to be corrected after their submission without an effect on the right to receive aid, provided that the elements or omissions to be corrected were made in good faith as recognised by the competent authority, and that the correction is made either before the applicant is informed of being selected for an on-the-spot check or before the competent authority has taken its decision in respect of the application.

7.   Member States shall introduce arrangements for ensuring the effective examination of complaints concerning the EAGF and EAFRD and shall, upon request by the Commission, examine complaints submitted to the Commission falling within the scope of their CAP Strategic Plans. Member States shall inform the Commission of the results of those examinations. The Commission shall ensure that complaints directly lodged with it are adequately followed up. Where the Commission forwards a complaint to a Member State and the Member State fails to follow it up by the deadline set by the Commission, the Commission shall take the necessary steps with a view to ensuring that the Member State respects its obligations under this paragraph.

8.   Member States shall inform the Commission of the measures and actions taken pursuant to paragraphs 1 and 2.

Any conditions established by Member States to supplement the conditions laid down by Union rules for receiving support financed by the EAGF or the EAFRD shall be verifiable.

9.   The Commission may adopt implementing acts laying down rules necessary for the uniform application of this Article relating to:

| (a) | the procedures, deadlines, exchange of information, requirements for the data-mining tool and information to be collected on the identification of beneficiaries in relation to the obligations as set out in paragraphs 1, 2 and 4; |
| --- | --- |

(a)

the procedures, deadlines, exchange of information, requirements for the data-mining tool and information to be collected on the identification of beneficiaries in relation to the obligations as set out in paragraphs 1, 2 and 4;

| (b) | the notification and communication to be made by the Member States to the Commission in relation to the obligations set out in paragraphs 5 and 7. |
| --- | --- |

(b)

the notification and communication to be made by the Member States to the Commission in relation to the obligations set out in paragraphs 5 and 7.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 103(3).

Article 60

Rules regarding checks to be carried out

1.   The management and control systems set up by the Member States in accordance with Article 59(2) shall include systematic checks which target, inter alia, the areas where the risk of errors is the highest.

Member States shall ensure that a level of checks needed for an effective management of the risks to the financial interest of the Union is carried out. The relevant authority shall draw its check sample from the entire population of applicants comprising, where appropriate, a random part and a risk-based part.

2.   Checks of operations receiving aid from financial instruments as referred to in Article 58 of Regulation (EU) 2021/1060 shall be carried out only at the level of the holding fund and specific funds, and, in the context of guarantee funds, at the level of bodies delivering the underlying new loans.

Checks shall not be carried out at the level of the EIB or other international financial institutions in which a Member State is a shareholder.

3.   The Commission is empowered to adopt delegated acts in accordance with Article 102 which are necessary to ensure that the checks are carried out correctly and efficiently and that the eligibility conditions are verified in an efficient, coherent and non-discriminatory manner which protects the financial interest of the Union, supplementing this Regulation with rules, where the proper management of that system so requires, on additional requirements with respect to customs procedures, and in particular to those laid down in Regulation (EU) No 952/2013.

4.   As regards measures referred to in agricultural legislation, the Commission shall adopt implementing acts laying down rules necessary for the uniform application of this Article, and in particular:

| (a) | with regard to hemp as referred to in Article 4(4), second subparagraph, of Regulation (EU) 2021/2115, rules on the specific control measures and methods for determining tetrahydrocannabinol levels; |
| --- | --- |

(a)

with regard to hemp as referred to in Article 4(4), second subparagraph, of Regulation (EU) 2021/2115, rules on the specific control measures and methods for determining tetrahydrocannabinol levels;

| (b) | with regard to cotton as referred to in Title III, Chapter II, Section 3, Subsection 2, of Regulation (EU) 2021/2115, a system for checks of the approved interbranch organisations; |
| --- | --- |

(b)

with regard to cotton as referred to in Title III, Chapter II, Section 3, Subsection 2, of Regulation (EU) 2021/2115, a system for checks of the approved interbranch organisations;

| (c) | with regard to wine as referred to in Regulation (EU) No 1308/2013, rules on the measurement of areas, on checks and on rules governing the specific financial procedures for the improvement of checks; |
| --- | --- |

(c)

with regard to wine as referred to in Regulation (EU) No 1308/2013, rules on the measurement of areas, on checks and on rules governing the specific financial procedures for the improvement of checks;

| (d) | the tests and methods to be applied in order to establish the eligibility of products for public intervention and private storage, and the use of tendering procedures, both for public intervention and for private storage; |
| --- | --- |

(d)

the tests and methods to be applied in order to establish the eligibility of products for public intervention and private storage, and the use of tendering procedures, both for public intervention and for private storage;

| (e) | other rules on the checks to be conducted by the Member States as regards the measures laid down in Chapter IV of Regulation (EU) No 228/2013 and in Chapter IV of Regulation (EU) No 229/2013. |
| --- | --- |

(e)

other rules on the checks to be conducted by the Member States as regards the measures laid down in Chapter IV of Regulation (EU) No 228/2013 and in Chapter IV of Regulation (EU) No 229/2013.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 103(3).

Article 61

Non-compliance with public procurement rules

Where the non-compliance concerns Union or national rules on public procurement, Member States shall ensure that the part of the aid not to be paid or to be withdrawn is determined on the basis of the gravity of the non-compliance and in accordance with the principle of proportionality.

Member States shall ensure that the legality and regularity of the transaction shall only be affected up to the level of the part of the aid not to be paid or to be withdrawn.

Article 62

Circumvention clause

Without prejudice to specific provisions of Union law, Member States shall take effective and proportionate measures to avoid provisions of Union law to be circumvented and ensure, in particular, that no advantage provided for under agricultural legislation is granted in favour of a natural or legal person in respect of whom it is established that the conditions required for obtaining such advantages were created artificially, contrary to the objectives of that legislation.

Article 63

Compatibility of interventions for the purposes of checks in the wine sector

For the purposes of applying the interventions in the wine sector referred to in Title III, Chapter III, Section 4, of Regulation (EU) 2021/2115, Member States shall ensure that the administration and control procedures applied to those interventions are compatible with the integrated system referred to in Chapter II of this Title as regards:

| (a) | the identification systems for agricultural parcels; |
| --- | --- |

(a)

the identification systems for agricultural parcels;

| (b) | the checks. |
| --- | --- |

(b)

the checks.

Article 64

Securities

1.   The Member States shall, where agricultural legislation so provides, request the lodging of a security giving the assurance that a sum of money will be paid or forfeited to a competent authority if a particular obligation under that legislation is not fulfilled.

2.   Except in cases of force majeure, the security shall be forfeited in whole or in part where the execution of a particular obligation is not carried out, or is carried out only partially.

3.   The Commission is empowered to adopt delegated acts in accordance with Article 102 supplementing this Regulation with rules which ensure non-discriminatory treatment, equity and the respect of proportionality when lodging a security and which:

| (a) | specify the responsible party in the event that an obligation is not met; |
| --- | --- |

(a)

specify the responsible party in the event that an obligation is not met;

| (b) | lay down the specific situations in which the competent authority may waive the requirement of a security; |
| --- | --- |

(b)

lay down the specific situations in which the competent authority may waive the requirement of a security;

| (c) | lay down the conditions applying to the security to be lodged and the guarantor and the conditions for lodging and releasing that security; |
| --- | --- |

(c)

lay down the conditions applying to the security to be lodged and the guarantor and the conditions for lodging and releasing that security;

| (d) | lay down the specific conditions related to the security lodged in connection with advance payments; |
| --- | --- |

(d)

lay down the specific conditions related to the security lodged in connection with advance payments;

| (e) | set out the consequences of breaching the obligations for which a security has been lodged, as provided for in paragraph 1, including the forfeiting of securities and the rate of reduction to be applied on release of securities for refunds, licences, offers, tenders or specific applications, as well as, where an obligation covered by that security has not been met either wholly or in part, taking into account the nature of the obligation, the quantity for which the obligation has been breached, the period exceeding the time limit by which the obligation should have been met and the time by which evidence that the obligation has been met is produced. |
| --- | --- |

(e)

set out the consequences of breaching the obligations for which a security has been lodged, as provided for in paragraph 1, including the forfeiting of securities and the rate of reduction to be applied on release of securities for refunds, licences, offers, tenders or specific applications, as well as, where an obligation covered by that security has not been met either wholly or in part, taking into account the nature of the obligation, the quantity for which the obligation has been breached, the period exceeding the time limit by which the obligation should have been met and the time by which evidence that the obligation has been met is produced.

4.   The Commission may adopt implementing acts laying down rules on:

| (a) | the form of the security to be lodged and the procedure for lodging the security, for accepting it, and for replacing the original security; |
| --- | --- |

(a)

the form of the security to be lodged and the procedure for lodging the security, for accepting it, and for replacing the original security;

| (b) | the procedures for the release of a security; |
| --- | --- |

(b)

the procedures for the release of a security;

| (c) | the notifications to be made by Member States and by the Commission. |
| --- | --- |

(c)

the notifications to be made by Member States and by the Commission.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 103(3).

CHAPTER II

Integrated administration and control system

Article 65

Scope and definitions relating to this Chapter

1.   Each Member State shall set up and operate an integrated administration and control system (the ‘integrated system’).

2.   The integrated system shall apply to the area- and animal-based interventions listed in Title III, Chapters II and IV, of Regulation (EU) 2021/2115 and to the measures referred to in Chapter IV of Regulation (EU) No 228/2013 and in Chapter IV of Regulation (EU) No 229/2013.

3.   To the extent necessary, the integrated system shall also be used for the management and control of conditionality and interventions in the wine sector as laid down in Title III of Regulation (EU) 2021/2115.

4.   For the purposes of this Chapter, the following definitions apply:

| (a) | ‘geo-spatial application’ means an electronic application form that includes an information technology application based on a geographic information system that allows beneficiaries to spatially declare the agricultural parcels of the holding as defined in Article 3, point (2), of Regulation (EU) 2021/2115 and non-agricultural areas claimed for payment; |
| --- | --- |

(a)

‘geo-spatial application’ means an electronic application form that includes an information technology application based on a geographic information system that allows beneficiaries to spatially declare the agricultural parcels of the holding as defined in Article 3, point (2), of Regulation (EU) 2021/2115 and non-agricultural areas claimed for payment;

| (b) | ‘area monitoring system’ means a procedure of regular and systematic observation, tracking and assessment of agricultural activities and practices on agricultural areas by Copernicus Sentinels satellite data or other data with at least equivalent value; |
| --- | --- |

(b)

‘area monitoring system’ means a procedure of regular and systematic observation, tracking and assessment of agricultural activities and practices on agricultural areas by Copernicus Sentinels satellite data or other data with at least equivalent value;

| (c) | ‘system for the identification and registration of animals’ means the system for the identification and registration of kept terrestrial animals laid down by Part IV, Title I, Chapter 2, Section 1, of Regulation (EU) 2016/429 of the European Parliament and of the Council (31); |
| --- | --- |

(c)

‘system for the identification and registration of animals’ means the system for the identification and registration of kept terrestrial animals laid down by Part IV, Title I, Chapter 2, Section 1, of Regulation (EU) 2016/429 of the European Parliament and of the Council (31);

| (d) | ‘agricultural parcel’ means a unit, defined by Member States, of agricultural area as determined in accordance with Article 4(3) of Regulation (EU) 2021/2115; |
| --- | --- |

(d)

‘agricultural parcel’ means a unit, defined by Member States, of agricultural area as determined in accordance with Article 4(3) of Regulation (EU) 2021/2115;

| (e) | ‘geographic information system’ means a computer system capable of capturing, storing, analysing, and displaying geographically referenced information; |
| --- | --- |

(e)

‘geographic information system’ means a computer system capable of capturing, storing, analysing, and displaying geographically referenced information;

| (f) | ‘automatic claim system’ means an application system for area- or animal-based interventions in which the data required by the administration on at least individual areas or animals claimed for aid are available in official computerised databases managed by the Member State and made available to the beneficiary where necessary. |
| --- | --- |

(f)

‘automatic claim system’ means an application system for area- or animal-based interventions in which the data required by the administration on at least individual areas or animals claimed for aid are available in official computerised databases managed by the Member State and made available to the beneficiary where necessary.

Article 66

Elements of the integrated system

1.   The integrated system shall comprise the following elements:

| (a) | an identification system for agricultural parcels; |
| --- | --- |

(a)

an identification system for agricultural parcels;

| (b) | a geo-spatial application system and, where applicable, an animal-based application system; |
| --- | --- |

(b)

a geo-spatial application system and, where applicable, an animal-based application system;

| (c) | an area monitoring system; |
| --- | --- |

(c)

an area monitoring system;

| (d) | a system for the identification of beneficiaries of the interventions and measures referred to in Article 65(2); |
| --- | --- |

(d)

a system for the identification of beneficiaries of the interventions and measures referred to in Article 65(2);

| (e) | a control and penalty system; |
| --- | --- |

(e)

a control and penalty system;

| (f) | where applicable, a system for the identification and registration of payment entitlements; |
| --- | --- |

(f)

where applicable, a system for the identification and registration of payment entitlements;

| (g) | where applicable, a system for the identification and registration of animals. |
| --- | --- |

(g)

where applicable, a system for the identification and registration of animals.

2.   The integrated system shall provide information relevant for the reporting on the indicators referred to in Article 7 of Regulation (EU) 2021/2115.

3.   The integrated system shall operate on the basis of electronic databases and geographic information systems and shall enable the exchange and integration of data between the electronic databases and the geographic information systems. Where relevant, geographic information systems shall allow for this exchange and integration of data on agricultural parcels in delimited protected zones and designated areas that have been established in accordance with Union legislation listed in Annex XIII to Regulation (EU) 2021/2115, such as Natura 2000 areas or nitrate vulnerable zones within the meaning of Article 2, point (k), of Council Directive 91/676/EEC (32), as well as the landscape features under the good agricultural and environmental conditions defined in accordance with Article 13 of Regulation (EU) 2021/2115 or covered by interventions listed in Title III, Chapters II and IV, of that Regulation.

4.   Without prejudice to the responsibilities of the Member States for the implementation and application of the integrated system, the Commission may seek the assistance of specialised bodies or persons in order to facilitate the establishment, monitoring and operation of the integrated system, in particular with a view to providing the competent authorities of the Member States with technical advice.

5.   Member States shall take the measures required for the proper establishment and operation of the integrated system and, where requested by another Member State, shall give one another the mutual assistance needed for the purposes of this Chapter.

Article 67

Data keeping and sharing

1.   Member States shall record and keep any data and documentation on the annual outputs reported in the context of the annual performance clearance referred to in Article 54, and the reported progress towards targets set out in the CAP Strategic Plan and monitored in accordance with Article 128 of Regulation (EU) 2021/2115.

The data and documentation referred to in the first subparagraph relating to the current calendar year or marketing year and to the previous 10 calendar years or marketing years shall be accessible for consultation through the digital databases of the competent authority of the Member State.

Data used for the area monitoring system may be stored as raw data on a server external to the competent authorities. Those data shall be kept on a server for at least three years.

By way of derogation from the second subparagraph, Member States which acceded to the Union in or after the year 2013 shall only be required to ensure that the data are available for consultation from the year of their accession.

By way of derogation from the second subparagraph, Member States shall only be required to ensure that the data and documentation related to the area monitoring system referred to in Article 66(1), point (c), are available for consultation as of the date of the implementation of the area monitoring system.

2.   Member States may apply the requirements laid down in paragraph 1 at regional level on condition that those requirements and the administrative procedures for recording and accessing data are designed to be uniform throughout the territory of the Member State and enable data to be aggregated at national level.

3.   Member States shall ensure that data sets collected through the integrated system which are relevant for the purposes of Directive 2007/2/EC of the European Parliament and of the Council (33) or for monitoring Union policies are shared free of charge between its public authorities and made publicly available at national level. Member States shall also provide the institutions and bodies of the Union with access to those data sets.

4.   Member States shall ensure that data sets collected through the integrated system which are relevant for the production of European statistics in accordance with Regulation (EC) No 223/2009 of the European Parliament and of the Council (34) are shared free of charge with the Commission (Eurostat), the national statistical institutes and, where necessary, with other national authorities responsible for the production of European statistics.

5.   Member States shall limit public access to data sets referred to in paragraphs 3 and 4 where such access would adversely affect the confidentiality of personal data, in accordance with Regulation (EU) 2016/679.

6.   Member States shall set up their systems in such a way to ensure that beneficiaries have access to all relevant data related to them regarding the land they use or intend to use, in order to enable them to submit accurate applications.

Article 68

Identification system for agricultural parcels

1.   The identification system for agricultural parcels shall be a geographic information system established and regularly updated by the Member States on the basis of aerial or spatial ortho-imagery, with a uniform standard that guarantees a level of accuracy that is at least equivalent to that of cartography at a scale of 1:5 000.

2.   Member States shall ensure that the identification system for agricultural parcels:

| (a) | uniquely identifies each agricultural parcel and units of land containing non-agricultural areas considered eligible by the Member States for receiving the aid for the interventions referred to in Title III of Regulation (EU) 2021/2115; |
| --- | --- |

(a)

uniquely identifies each agricultural parcel and units of land containing non-agricultural areas considered eligible by the Member States for receiving the aid for the interventions referred to in Title III of Regulation (EU) 2021/2115;

| (b) | contains up-to-date values on the areas considered eligible by the Member States for receiving the aid for the interventions referred to in Article 65(2); |
| --- | --- |

(b)

contains up-to-date values on the areas considered eligible by the Member States for receiving the aid for the interventions referred to in Article 65(2);

| (c) | enables the correct localisation of agricultural parcels and non-agricultural areas claimed for payment. |
| --- | --- |

(c)

enables the correct localisation of agricultural parcels and non-agricultural areas claimed for payment.

3.   Member States shall annually assess the quality of the identification system for agricultural parcels in accordance with the methodology set up at Union level.

Where the assessment reveals deficiencies in the system, Member States shall adopt appropriate remedial actions or, failing that, shall be requested by the Commission to set up an action plan in accordance with Article 42.

An assessment report and, where appropriate, the remedial actions and the timetable for their implementation shall be submitted to the Commission by 15 February following the calendar year concerned.

Article 69

Geo-spatial and animal-based application system

1.   As regards the aid for the area-based interventions referred to in Article 65(2) and implemented under their CAP Strategic Plans, Member States shall require the submission of an application by means of the geo-spatial application form provided by the competent authority.

2.   As regards the aid for the animal-based interventions referred to in Article 65(2) and implemented under their CAP Strategic Plans, Member States shall require the submission of an application.

3.   Member States shall pre-fill the applications referred to in paragraphs 1 and 2 of this Article with information from the systems referred to in Article 66(1), point (g), and in Articles 68, 70, 71 and 73 or from any other relevant public database.

4.   Member States may set up an automatic claim system and decide which applications referred to in paragraphs 1 and 2 it shall cover.

5.   If a Member State decides to use an automatic claim system, it shall set up a system which enables the administration to make the payments to the beneficiaries on the basis of the existing information in the official computerised databases. Where there has been a change, that existing information shall be supplemented with additional information, where necessary, to cover that change. The existing information and additional information available through the automatic claim system shall be confirmed by the beneficiary.

6.   Member States shall annually assess the quality of the geo-spatial application system in accordance with the methodology set up at Union level.

Where the assessment reveals deficiencies in the system, Member States shall adopt appropriate remedial actions or, failing that, shall be requested by the Commission to set up an action plan in accordance with Article 42.

An assessment report and, where appropriate, the remedial actions and the timetable for their implementation shall be submitted to the Commission by 15 February following the calendar year concerned.

Article 70

Area monitoring system

1.   Member States shall set up and operate an area monitoring system, which shall be operational from 1 January 2023. If the full deployment of the system from that date is not feasible due to technical limitations, Member States may choose to set up and start the operation of such a system gradually, providing information for a limited number of interventions only. However, by 1 January 2024, an area monitoring system in all Member States shall be fully operational.

2.   Member States shall annually assess the quality of the area monitoring system in accordance with the methodology set up at Union level.

Where the assessment reveals deficiencies in the system, Member States shall adopt appropriate remedial actions or, failing that, shall be requested by the Commission to set up an action plan in accordance with Article 42.

An assessment report and, where appropriate, the remedial actions and the timetable for their implementation shall be submitted to the Commission by 15 February following the calendar year concerned.

Article 71

System for the identification of beneficiaries

The system for recording the identity of each beneficiary of the interventions and measures referred to in Article 65(2) shall guarantee that all applications submitted by the same beneficiary can be identified as such.

Article 72

Control and penalty system

Member States shall set up a control and penalty system referred to in Article 66(1), point (e). Member States, through the paying agencies or the bodies delegated by them, shall annually carry out administrative checks on the aid application and payment claims to verify legality and regularity in accordance with Article 59(1), point (a). Those checks shall be supplemented by on-the-spot checks, which may be executed remotely with the use of technology.

Article 73

System for the identification and registration of payment entitlements

The system for the identification and registration of payment entitlements shall allow for verification of the entitlements with the applications and the identification system for agricultural parcels.

Article 74

Delegated powers of the Commission relating to the integrated system

The Commission is empowered to adopt delegated acts in accordance with Article 102 which are necessary to ensure that the integrated system provided for in this Chapter is implemented in an efficient, coherent and non-discriminatory way which protects the financial interests of the Union, supplementing this Regulation with:

| (a) | rules on the quality assessment referred to in Articles 68, 69 and 70; |
| --- | --- |

(a)

rules on the quality assessment referred to in Articles 68, 69 and 70;

| (b) | rules on the identification system for agricultural parcels, the system for the identification of beneficiaries and the system for the identification and registration of payment entitlements referred to in Articles 68, 71 and 73. |
| --- | --- |

(b)

rules on the identification system for agricultural parcels, the system for the identification of beneficiaries and the system for the identification and registration of payment entitlements referred to in Articles 68, 71 and 73.

Article 75

Implementing powers relating to Articles 68, 69 and 70

The Commission may adopt implementing acts laying down rules on:

| (a) | the form and content of, and arrangements for transmitting or making available to the Commission:






  (i) | the assessment reports on the quality of the identification system for agricultural parcels, of the geo-spatial application system and of the area monitoring system, |
| --- | --- | --- |

(a)

the form and content of, and arrangements for transmitting or making available to the Commission:

(i)

the assessment reports on the quality of the identification system for agricultural parcels, of the geo-spatial application system and of the area monitoring system,

| (ii) | the remedial actions referred to in Articles 68, 69 and 70; |
| --- | --- |

(ii)

the remedial actions referred to in Articles 68, 69 and 70;

| (b) | basic features of, and rules on, the aid application system under Article 69 and the area monitoring system referred to in Article 70, including parameters of the gradual increase of the number of interventions under the area monitoring system. |
| --- | --- |

(b)

basic features of, and rules on, the aid application system under Article 69 and the area monitoring system referred to in Article 70, including parameters of the gradual increase of the number of interventions under the area monitoring system.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 103(3).

CHAPTER III

Scrutiny of transactions

Article 76

Scope and definitions relating to this Chapter

1.   This Chapter lays down specific rules on the scrutiny of the commercial documents of entities receiving or making payments relating directly or indirectly to the system of financing by the EAGF or representatives of those entities (‘undertakings’) in order to ascertain whether transactions forming part of the system of financing by the EAGF have actually been carried out and have been executed correctly.

2.   This Chapter shall not apply to interventions covered by the integrated system referred to in Chapter II of this Title and by Title III, Chapter III, of Regulation (EU) 2021/2115.

The Commission is empowered to adopt delegated acts in accordance with Article 102 supplementing this Regulation with a list of interventions which, due to their design and control requirements, are unsuited for additional ex-post controls by way of scrutiny of commercial documents and, therefore, are not to be subject to such scrutiny under this Chapter.

3.   For the purposes of this Chapter, the following definitions apply:

| (a) | ‘commercial document’ means all books, registers, vouchers and supporting documents, accounts, production and quality records, correspondence relating to the undertaking’s business activity, and commercial data, in whatever form they may take, including electronically stored data, in so far as those documents or data relate directly or indirectly to the transactions referred to in paragraph 1; |
| --- | --- |

(a)

‘commercial document’ means all books, registers, vouchers and supporting documents, accounts, production and quality records, correspondence relating to the undertaking’s business activity, and commercial data, in whatever form they may take, including electronically stored data, in so far as those documents or data relate directly or indirectly to the transactions referred to in paragraph 1;

| (b) | ‘third party’ means any natural or legal person directly or indirectly connected with transactions carried out within the financing system by the EAGF. |
| --- | --- |

(b)

‘third party’ means any natural or legal person directly or indirectly connected with transactions carried out within the financing system by the EAGF.

Article 77

Scrutiny by Member States

1.   Member States shall carry out systematic scrutiny of the commercial documents of undertakings taking account of the nature of the transactions to be scrutinised. Member States shall ensure that the selection of undertakings for scrutiny gives the best possible assurance of the effectiveness of the measures for preventing and detecting irregularities. The selection shall take account, inter alia, of the financial importance of the undertakings in that system and of other risk factors.

2.   In appropriate cases, the scrutiny provided for in paragraph 1 of this Article shall be extended to natural and legal persons with whom undertakings are associated and to such other natural or legal persons as may be relevant for the pursuit of the objectives set out in Article 78.

3.   The body or bodies responsible for the application of this Chapter shall be organised in such a way as to be independent of the departments or branches of departments responsible for the payments and the checks carried out prior to payment.

4.   Undertakings for which the sum of the receipts or payments amounted to less than EUR 40 000 shall be scrutinised in accordance with this Chapter only for specific reasons to be indicated by the Member States in their annual control plan referred to in Article 80(1).

5.   The scrutiny carried out pursuant to this Chapter shall not prejudice the checks undertaken pursuant to Articles 49 and 50.

Article 78

Cross-checks

1.   The accuracy of primary data under scrutiny shall be verified by a number of cross-checks, including, where necessary, the commercial documents of third parties, appropriate to the degree of risk presented, including:

| (a) | comparisons with the commercial documents of suppliers, customers, carriers and other third parties; |
| --- | --- |

(a)

comparisons with the commercial documents of suppliers, customers, carriers and other third parties;

| (b) | physical checks, where appropriate, upon the quantity and nature of stocks; |
| --- | --- |

(b)

physical checks, where appropriate, upon the quantity and nature of stocks;

| (c) | comparison with the records of financial flows leading to or consequent upon the transactions carried out within the financing system by the EAGF; |
| --- | --- |

(c)

comparison with the records of financial flows leading to or consequent upon the transactions carried out within the financing system by the EAGF;

| (d) | checks, in relation to bookkeeping, or records of financial movements showing, at the time of the scrutiny, that the documents held by the paying agency by way of justification for the payment of aid to the beneficiary are accurate. |
| --- | --- |

(d)

checks, in relation to bookkeeping, or records of financial movements showing, at the time of the scrutiny, that the documents held by the paying agency by way of justification for the payment of aid to the beneficiary are accurate.

2.   Where undertakings are required to keep particular book records of stock in accordance with Union or national law, scrutiny of those records shall, in appropriate cases, include a comparison with the commercial documents and, where appropriate, with the actual quantities in stock.

3.   In the selection of transactions to be checked, full account shall be taken of the degree of risk presented.

4.   The persons responsible for the undertaking, or a third party, shall ensure that all commercial documents and additional information are supplied to the officials responsible for the scrutiny or to the persons authorised to carry it out on their behalf. Electronically stored data shall be provided on an appropriate data support medium.

5.   The officials responsible for the scrutiny or the persons authorised to carry it out on their behalf may require that extracts or copies of the documents referred to in paragraph 1 be supplied to them.

Article 79

Mutual assistance

Member States shall assist each other upon request for the purpose of carrying out the scrutiny provided for in this Chapter in the following cases:

| (a) | where an undertaking or third party is established in a Member State other than that in which payment of the amount in question has or should have been made or received; |
| --- | --- |

(a)

where an undertaking or third party is established in a Member State other than that in which payment of the amount in question has or should have been made or received;

| (b) | where an undertaking or third party is established in a Member State other than that in which the documents and information required for scrutiny are to be found. |
| --- | --- |

(b)

where an undertaking or third party is established in a Member State other than that in which the documents and information required for scrutiny are to be found.

Article 80

Planning and reporting

1.   Member States shall draw up control plans for scrutiny to be carried out pursuant to Article 77 during the subsequent scrutiny period.

2.   Each year, before 15 April, Member States shall send to the Commission:

| (a) | their control plan referred to in paragraph 1 and the number of undertakings to be scrutinised and their breakdown by sector on the basis of the amounts relating to them; |
| --- | --- |

(a)

their control plan referred to in paragraph 1 and the number of undertakings to be scrutinised and their breakdown by sector on the basis of the amounts relating to them;

| (b) | a detailed report on the application of this Chapter for the previous scrutiny period, including the results of any scrutiny carried out under Article 79. |
| --- | --- |

(b)

a detailed report on the application of this Chapter for the previous scrutiny period, including the results of any scrutiny carried out under Article 79.

3.   The control plans and their amendments drawn up by the Member States and sent to the Commission shall be implemented by the Member States if, within eight weeks, the Commission has not informed the Member States of its comments.

Article 81

Access to information and scrutiny by the Commission

1.   In accordance with the relevant national law, Commission officials shall have access to all documents prepared either with a view to or following the scrutiny organised under this Chapter and to the data held, including those stored in the data-processing systems. Those data shall be provided upon request on an appropriate data support medium.

2.   The scrutiny referred to in Article 77 shall be carried out by the officials of the Member States. Officials of the Commission may participate in that scrutiny but they may not exercise the powers of scrutiny accorded to the officials of the Member States. However, they shall have access to the same premises and to the same documents as the officials of the Member States.

3.   Without prejudice to the provisions of Regulations (Euratom, EC) No 2988/95, (Euratom, EC) No 2185/96, (EU, Euratom) No 883/2013 and (EU) 2017/1939, where national provisions concerning criminal procedure reserve certain acts for officials specifically designated by the national law, neither the officials of the Commission, nor the officials of the requesting Member State, shall take part in those acts. In any event, they shall, in particular, not take part in home visits or the formal questioning of persons in the context of the criminal law of the Member State concerned. They shall, however, have access to information thus obtained.

Article 82

Implementing powers relating to the scrutiny of transactions

The Commission shall adopt implementing acts laying down rules necessary for the uniform application of this Chapter and in particular relating to the following:

| (a) | the performance of the scrutiny referred to in Article 77 as regards the selection of undertakings, rate and the timescale for the scrutiny; |
| --- | --- |

(a)

the performance of the scrutiny referred to in Article 77 as regards the selection of undertakings, rate and the timescale for the scrutiny;

| (b) | the performance of the mutual assistance referred to in Article 79; |
| --- | --- |

(b)

the performance of the mutual assistance referred to in Article 79;

| (c) | the content of reports referred to in Article 80(2), point (b), and any other notification needed under this Chapter. |
| --- | --- |

(c)

the content of reports referred to in Article 80(2), point (b), and any other notification needed under this Chapter.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 103(3).

CHAPTER IV

Control system and administrative penalties in relation to conditionality

Article 83

Control system for conditionality

1.   Member States shall set up a system in order to verify that the following categories of beneficiary comply with the obligations laid down in Title III, Chapter I, Section 2, of Regulation (EU) 2021/2115:

| (a) | beneficiaries receiving direct payments under Title III, Chapter II, of Regulation (EU) 2021/2115; |
| --- | --- |

(a)

beneficiaries receiving direct payments under Title III, Chapter II, of Regulation (EU) 2021/2115;

| (b) | beneficiaries receiving annual payments in accordance with Articles 70, 71 and 72 of Regulation (EU) 2021/2115; |
| --- | --- |

(b)

beneficiaries receiving annual payments in accordance with Articles 70, 71 and 72 of Regulation (EU) 2021/2115;

| (c) | beneficiaries receiving support in accordance with Chapter IV of Regulation (EU) No 228/2013 or Chapter IV of Regulation (EU) No 229/2013. |
| --- | --- |

(c)

beneficiaries receiving support in accordance with Chapter IV of Regulation (EU) No 228/2013 or Chapter IV of Regulation (EU) No 229/2013.

2.   Member States applying Article 28 of Regulation (EU) 2021/2115 may set up a simplified control system:

| (a) | for beneficiaries receiving payments under Article 28 of Regulation (EU) 2021/2115; or |
| --- | --- |

(a)

for beneficiaries receiving payments under Article 28 of Regulation (EU) 2021/2115; or

| (b) | for small farmers, as determined by Member States pursuant to Article 28 of Regulation (EU) 2021/2115, not applying for such payments. |
| --- | --- |

(b)

for small farmers, as determined by Member States pursuant to Article 28 of Regulation (EU) 2021/2115, not applying for such payments.

Where a Member State does not apply Article 28 of Regulation (EU) 2021/2115, it may set up a simplified control system for farmers with a maximum size of holding not exceeding 5 hectares of agricultural area declared in accordance with Article 69(1) of this Regulation.

3.   Member States may make use of their existing control systems and administration to ensure compliance with the rules on conditionality.

Those systems shall be compatible with the control systems referred to in paragraphs 1 and 2.

4.   Member States shall conduct a yearly review of the control systems referred to in paragraphs 1 and 2 in light of the results achieved.

5.   For the purposes of this Chapter, the following definitions apply:

| (a) | ‘requirement’ means each individual statutory management requirement under Union law referred to in Article 12 of Regulation (EU) 2021/2115 within a given legal act, differing in substance from any other requirements of the same legal act; |
| --- | --- |

(a)

‘requirement’ means each individual statutory management requirement under Union law referred to in Article 12 of Regulation (EU) 2021/2115 within a given legal act, differing in substance from any other requirements of the same legal act;

| (b) | ‘legal act’ means each of the individual directives and regulations referred to in Article 12 of Regulation (EU) 2021/2115; |
| --- | --- |

(b)

‘legal act’ means each of the individual directives and regulations referred to in Article 12 of Regulation (EU) 2021/2115;

| (c) | ‘reoccurrence of non-compliance’ means non-compliance with the same requirement or standard more than once within a consecutive period of three calendar years, provided that the beneficiary has been informed of previous non-compliance and, where relevant, has had the possibility to take the necessary measures to remedy that previous non-compliance. |
| --- | --- |

(c)

‘reoccurrence of non-compliance’ means non-compliance with the same requirement or standard more than once within a consecutive period of three calendar years, provided that the beneficiary has been informed of previous non-compliance and, where relevant, has had the possibility to take the necessary measures to remedy that previous non-compliance.

6.   In order to comply with their control obligations laid down in paragraphs 1 to 4, Member States:

| (a) | shall include on-the-spot checks to verify the compliance of beneficiaries with the obligations laid down in Title III, Chapter I, Section 2, of Regulation (EU) 2021/2115; |
| --- | --- |

(a)

shall include on-the-spot checks to verify the compliance of beneficiaries with the obligations laid down in Title III, Chapter I, Section 2, of Regulation (EU) 2021/2115;

| (b) | may decide, depending on the requirements, standards, legal acts or areas of conditionality in question, to use the checks, including administrative checks, carried out under the control systems applicable to the respective requirement, standard, legal act or area of conditionality, provided the effectiveness of these checks is at least equal to the on-the-spot checks referred to in point (a); |
| --- | --- |

(b)

may decide, depending on the requirements, standards, legal acts or areas of conditionality in question, to use the checks, including administrative checks, carried out under the control systems applicable to the respective requirement, standard, legal act or area of conditionality, provided the effectiveness of these checks is at least equal to the on-the-spot checks referred to in point (a);

| (c) | may, where appropriate, make use of remote sensing or the area monitoring system or other relevant technologies assisting them to carry out the on-the-spot checks referred to in point (a); |
| --- | --- |

(c)

may, where appropriate, make use of remote sensing or the area monitoring system or other relevant technologies assisting them to carry out the on-the-spot checks referred to in point (a);

| (d) | shall establish the control sample for the on-the-spot checks referred to in point (a) to be carried out each year on the basis of a risk analysis that:






  (i) | takes into account, and applies weighting factors to, farm structure, the inherent risk of non-compliance and, where applicable, participation of beneficiaries in the farm advisory services as referred to in Article 15 of Regulation (EU) 2021/2115, |
| --- | --- | --- |

(d)

shall establish the control sample for the on-the-spot checks referred to in point (a) to be carried out each year on the basis of a risk analysis that:

(i)

takes into account, and applies weighting factors to, farm structure, the inherent risk of non-compliance and, where applicable, participation of beneficiaries in the farm advisory services as referred to in Article 15 of Regulation (EU) 2021/2115,

| (ii) | includes a random component, and |
| --- | --- |

(ii)

includes a random component, and

| (iii) | provides the control sample to cover at least 1 % of the beneficiaries listed in paragraph 1 of this Article; |
| --- | --- |

(iii)

provides the control sample to cover at least 1 % of the beneficiaries listed in paragraph 1 of this Article;

| (e) | as regards the obligations of conditionality in relation to Council Directive 96/22/EC (35), shall consider the application of a specific sampling level of monitoring plans to fulfil the requirement of the minimum rate laid down in point (d) of this paragraph; |
| --- | --- |

(e)

as regards the obligations of conditionality in relation to Council Directive 96/22/EC (35), shall consider the application of a specific sampling level of monitoring plans to fulfil the requirement of the minimum rate laid down in point (d) of this paragraph;

| (f) | may decide, when using the simplified control system referred to in paragraph 2, to exclude from the on-the-spot checks referred to in point (a) of this paragraph the verification of compliance with the obligations referred in that point, where it can be demonstrated that cases of non-compliance by the beneficiaries concerned could not have significant consequences for the achievement of the objectives of the legal acts and standards concerned. |
| --- | --- |

(f)

may decide, when using the simplified control system referred to in paragraph 2, to exclude from the on-the-spot checks referred to in point (a) of this paragraph the verification of compliance with the obligations referred in that point, where it can be demonstrated that cases of non-compliance by the beneficiaries concerned could not have significant consequences for the achievement of the objectives of the legal acts and standards concerned.

Article 84

System of administrative penalties for conditionality

1.   Member States shall set up a system providing for the application of administrative penalties to beneficiaries referred to in Article 83(1) of this Regulation who do not comply, at any time in the calendar year concerned, with the obligations laid down in Title III, Chapter I, Section 2, of Regulation (EU) 2021/2115.

The administrative penalties referred to in the first subparagraph shall only apply where the non-compliance is the result of an act or omission directly attributable to the beneficiary concerned, and where one or both of the following conditions are met:

| (a) | the non-compliance is related to the agricultural activity of the beneficiary; |
| --- | --- |

(a)

the non-compliance is related to the agricultural activity of the beneficiary;

| (b) | the non-compliance concerns the holding as defined in Article 3, point (2), of Regulation (EU) 2021/2115 or other areas managed by the beneficiary situated within the territory of the same Member State. |
| --- | --- |

(b)

the non-compliance concerns the holding as defined in Article 3, point (2), of Regulation (EU) 2021/2115 or other areas managed by the beneficiary situated within the territory of the same Member State.

With regard to forest areas, however, the administrative penalties referred to in the first subparagraph shall not apply where no support is claimed for the area concerned in accordance with Articles 70 and 71 of Regulation (EU) 2021/2115.

2.   In their system of administrative penalties referred to in paragraph 1, Member States:

| (a) | shall include rules on the application of administrative penalties in cases where the agricultural land, or an agricultural holding, or part thereof, is transferred during the calendar year or the years concerned; those rules shall be based on a fair and equitable attribution of the liability for non-compliance among transferors and transferees; |
| --- | --- |

(a)

shall include rules on the application of administrative penalties in cases where the agricultural land, or an agricultural holding, or part thereof, is transferred during the calendar year or the years concerned; those rules shall be based on a fair and equitable attribution of the liability for non-compliance among transferors and transferees;

| (b) | may decide, notwithstanding paragraph 1, not to apply an administrative penalty to a beneficiary per a calendar year when the amount of the penalty is EUR 100 or less; however, the beneficiary shall be informed about the finding of the non-compliance and about the obligation to take remedial action for the future; |
| --- | --- |

(b)

may decide, notwithstanding paragraph 1, not to apply an administrative penalty to a beneficiary per a calendar year when the amount of the penalty is EUR 100 or less; however, the beneficiary shall be informed about the finding of the non-compliance and about the obligation to take remedial action for the future;

| (c) | shall provide that no administrative penalty be imposed if:






  (i) | the non-compliance is due to force majeure or exceptional circumstances in accordance with Article 3, |
| --- | --- | --- |

(c)

shall provide that no administrative penalty be imposed if:

(i)

the non-compliance is due to force majeure or exceptional circumstances in accordance with Article 3,

| (ii) | the non-compliance is due to an order from a public authority. |
| --- | --- |

(ii)

the non-compliance is due to an order from a public authority.

For the purposes of the first subparagraph, point (a), ‘transfer’ means any type of transaction whereby the agricultural land, or the agricultural holding, or part thereof, ceases to be at the disposal of the transferor.

3.   The application of an administrative penalty shall not affect the legality and regularity of the expenditure to which it applies.

Article 85

Application and calculation of the administrative penalties

1.   The administrative penalties referred to in Article 84 shall be applied by means of reduction or exclusion of the total amount of the payments listed in Article 83(1) granted or to be granted to the beneficiary concerned in respect of aid applications that the beneficiary has submitted or will submit in the course of the calendar year of the finding of the non-compliance. The reductions or exclusions shall be calculated on the basis of the payments granted or to be granted in the calendar year in which the non-compliance occurred. However, where it is not possible to determine the calendar year in which the non-compliance occurred, the reductions or exclusions shall be calculated on the basis of the payments granted or to be granted in the calendar year of the finding of the non-compliance.

For the calculation of those reductions and exclusions, account shall be taken of the severity, extent, permanence or reoccurrence and intentionality of the non-compliance detected. The administrative penalties imposed shall be effective, proportionate and dissuasive.

The administrative penalties shall be based on the controls carried out in accordance with Article 83(6).

2.   The reduction shall, as a general rule, be 3 % of the total amount of the payments referred to in paragraph 1.

3.   Where the non-compliance has no or only insignificant consequences for the achievement of the objective of the standard or requirement concerned, no administrative penalty shall be applied.

Member States shall set up an awareness mechanism to ensure that beneficiaries are informed about the non-compliance detected and possible remedial actions to be taken. That mechanism shall also include the specific farm advisory services referred to in Article 15 of Regulation (EU) 2021/2115 participation at which may be made mandatory for the beneficiaries concerned.

4.   Where a Member State uses the area monitoring system referred to in Article 66(1), point (c), to detect cases of non-compliance, it may decide to apply a lower percentage reduction than that provided for in paragraph 2 of this Article.

5.   Where the non-compliance has grave consequences for the achievement of the objective of the standard or requirement concerned or constitutes a direct risk to public or animal health, a higher percentage reduction than that provided for in paragraph 2 shall be applied.

6.   Where the same non-compliance persists or reoccurs once within three consecutive calendar years, the percentage reduction shall, as a general rule, be 10 % of the total amount of the payments referred to in paragraph 1. Further reoccurrences of the same non-compliance without justified reason by the beneficiary shall be considered to be cases of intentional non-compliance.

In the case of intentional non-compliance, the percentage reduction shall be at least 15 % of the total amount of the payments referred to in paragraph 1.

7.   In order to ensure a level playing field for Member States and the effectiveness, proportionality and dissuasive effect of the administrative penalties under this Chapter, the Commission is empowered to adopt delegated acts in accordance with Article 102 supplementing this Regulation with detailed rules on the application and calculation of those penalties.

Article 86

Amounts resulting from the administrative penalties on conditionality

Member States may retain 25 % of the amounts resulting from the reductions and exclusions referred to in Article 85.

CHAPTER V

Control system and administrative penalties in relation to social conditionality

Article 87

Control system for social conditionality

1.   Member States shall set up a system providing for the application of administrative penalties to beneficiaries referred to in Article 14 of Regulation (EU) 2021/2115 who do not comply with the rules on social conditionality listed in Annex IV to that Regulation.

To that end, Member States shall make use of their applicable control and enforcement systems in the field of social and employment legislation and applicable labour standards to ensure that beneficiaries of the aid referred to in Article 14 of Regulation (EU) 2021/2115, in Chapter IV of Regulation (EU) No 228/2013 or in Chapter IV of Regulation (EU) No 229/2013 comply with the obligations referred to in Annex IV to Regulation (EU) 2021/2115.

2.   Member States shall ensure a clear separation of responsibilities between the authorities or bodies responsible for the enforcement of social and employment legislation and applicable labour standards on the one hand, and the paying agencies on the other, the role of the paying agencies being the execution of payments and the application of penalties under the social conditionality mechanism.

Article 88

System of administrative penalties for social conditionality

1.   Under the system referred to in Article 87(1), first subparagraph, the paying agency shall be notified at least once a year of cases of non-compliance where enforceable decisions in that respect have been made by the authorities or bodies referred to in Article 87(2). That notification shall include an assessment and grading of the severity, extent, permanence or reoccurrence and intentionality of the non-compliance concerned. Member States may make use of any applicable national grading system of labour sanctions in order to carry out such assessment. The notification to the paying agency shall respect the internal organisation, tasks and procedures of the authorities and bodies referred to in Article 87(2).

The paying agency shall only be notified where the non-compliance is the result of an act or omission directly attributable to the beneficiary concerned, and where one or both of the following conditions are met:

| (a) | the non-compliance is related to the agricultural activity of the beneficiary; |
| --- | --- |

(a)

the non-compliance is related to the agricultural activity of the beneficiary;

| (b) | the non-compliance concerns the holding as defined in Article 3, point (2), of Regulation (EU) 2021/2115 or other areas managed by the beneficiary situated within the territory of the same Member State. |
| --- | --- |

(b)

the non-compliance concerns the holding as defined in Article 3, point (2), of Regulation (EU) 2021/2115 or other areas managed by the beneficiary situated within the territory of the same Member State.

2.   In their systems of administrative penalties referred to in Article 87(1), Member States:

| (a) | may decide not to apply an administrative penalty to a beneficiary per a calendar year when the amount of the penalty is EUR 100 or less; however, the beneficiary shall be informed about the finding of the non-compliance and about the obligation to take remedial action for the future; |
| --- | --- |

(a)

may decide not to apply an administrative penalty to a beneficiary per a calendar year when the amount of the penalty is EUR 100 or less; however, the beneficiary shall be informed about the finding of the non-compliance and about the obligation to take remedial action for the future;

| (b) | shall provide that no administrative penalty be imposed if:






  (i) | the non-compliance is due to force majeure, |
| --- | --- | --- |

(b)

shall provide that no administrative penalty be imposed if:

(i)

the non-compliance is due to force majeure,

| (ii) | the non-compliance is due to an order from a public authority. |
| --- | --- |

(ii)

the non-compliance is due to an order from a public authority.

3.   The application of an administrative penalty shall not affect the legality and regularity of the expenditure to which it applies.

Article 89

Application and calculation of the administrative penalty

1.   The administrative penalties shall be applied by means of reduction or exclusion of the total amount of the payments listed in Article 83(1) granted or to be granted to the beneficiary concerned in respect of aid applications that the beneficiary has submitted or will submit in the course of the calendar year of the finding of the non-compliance. The reductions or exclusions shall be calculated on the basis of the payments granted or to be granted in the calendar year in which the non-compliance occurred. However, where it is not possible to determine the calendar year in which the non-compliance occurred, the reductions or exclusions shall be calculated on the basis of the payments granted or to be granted in the calendar year of the finding of the non-compliance.

For the calculation of those reductions and exclusions, account shall be taken of the severity, extent, permanence or reoccurrence and intentionality of the non-compliance determined, in line with the assessment of the authorities or bodies referred to in Article 87(2). The administrative penalties imposed shall be effective, proportionate and dissuasive.

The relevant provisions of Article 85(2), (5) and (6) shall apply mutatis mutandis to the application and calculation of the administrative penalties.

2.   In order to ensure a level playing field for Member States and the effectiveness, proportionality and dissuasive effect of the administrative penalties under this Chapter, the Commission is empowered to adopt delegated acts in accordance with Article 102 supplementing this Regulation with detailed rules on the application and calculation of those penalties.

TITLE V

COMMON PROVISIONS

CHAPTER I

Transmission of information

Article 90

Communication of information

1.   In addition to their communication obligations pursuant to Regulation (EU) 2021/2115, Member States shall send to the Commission the following information, declarations and documents:

| (a) | for accredited paying agencies and designated and accredited coordinating bodies:






  (i) | their accreditation and, where relevant, designation document, |
| --- | --- | --- |

(a)

for accredited paying agencies and designated and accredited coordinating bodies:

(i)

their accreditation and, where relevant, designation document,

| (ii) | their function (accredited paying agency or designated and accredited coordinating body), |
| --- | --- |

(ii)

their function (accredited paying agency or designated and accredited coordinating body),

| (iii) | where relevant, the withdrawal of their accreditation; |
| --- | --- |

(iii)

where relevant, the withdrawal of their accreditation;

| (b) | for certification bodies:






  (i) | their name, |
| --- | --- | --- |

(b)

for certification bodies:

(i)

their name,

| (ii) | their address; |
| --- | --- |

(ii)

their address;

| (c) | for measures relating to operations financed by the EAGF and EAFRD:






  (i) | declarations of expenditure, which also act as payment requests, signed by the accredited paying agency or the designated and accredited coordinating body and accompanied by the requisite information, |
| --- | --- | --- |

(c)

for measures relating to operations financed by the EAGF and EAFRD:

(i)

declarations of expenditure, which also act as payment requests, signed by the accredited paying agency or the designated and accredited coordinating body and accompanied by the requisite information,

| (ii) | with regard to the EAGF, estimates of their financial requirements, and, with regard to the EAFRD, an update of estimated declarations of expenditure which will be submitted during the year and estimated declarations of expenditure in respect of the following financial year, |
| --- | --- |

(ii)

with regard to the EAGF, estimates of their financial requirements, and, with regard to the EAFRD, an update of estimated declarations of expenditure which will be submitted during the year and estimated declarations of expenditure in respect of the following financial year,

| (iii) | the management declaration and the annual accounts of the accredited paying agencies. |
| --- | --- |

(iii)

the management declaration and the annual accounts of the accredited paying agencies.

2.   Member States shall inform the Commission regularly of the application of the integrated system referred to in Title IV, Chapter II. The Commission shall organise exchanges of views on this subject with the Member States.

Article 91

Confidentiality

1.   Member States and the Commission shall take all necessary steps to ensure the confidentiality of the information communicated or obtained under inspection and clearance of accounts measures implemented under this Regulation.

The rules laid down in Article 8 of Regulation (Euratom, EC) No 2185/96 shall apply to that information.

2.   Without prejudice to national provisions relating to legal proceedings, information collected in the course of scrutiny as provided for in Title IV, Chapter III, shall be protected by professional secrecy. It shall not be communicated to any persons other than those who, by reason of their duties in the Member States or in the institutions of the Union, are required to have knowledge thereof for the purposes of performing those duties.

Article 92

Implementing powers relating to transmission of information

The Commission may adopt implementing acts laying down rules on:

| (a) | the form, content, intervals, deadlines and arrangements for transmitting or making available to the Commission:






  (i) | declarations of expenditure and estimates of expenditure and their updates, including assigned revenue, |
| --- | --- | --- |

(a)

the form, content, intervals, deadlines and arrangements for transmitting or making available to the Commission:

(i)

declarations of expenditure and estimates of expenditure and their updates, including assigned revenue,

| (ii) | management declaration and annual accounts of the paying agencies, |
| --- | --- |

(ii)

management declaration and annual accounts of the paying agencies,

| (iii) | the account certification reports, |
| --- | --- |

(iii)

the account certification reports,

| (iv) | the names and particulars of accredited paying agencies, designated and accredited coordinating bodies and designated certification bodies, |
| --- | --- |

(iv)

the names and particulars of accredited paying agencies, designated and accredited coordinating bodies and designated certification bodies,

| (v) | arrangements for taking account of, and paying, expenditure financed by the EAGF and EAFRD, |
| --- | --- |

(v)

arrangements for taking account of, and paying, expenditure financed by the EAGF and EAFRD,

| (vi) | notifications of financial adjustments made by Member States in connection with interventions for rural development, |
| --- | --- |

(vi)

notifications of financial adjustments made by Member States in connection with interventions for rural development,

| (vii) | information on the measures taken pursuant to Article 59; |
| --- | --- |

(vii)

information on the measures taken pursuant to Article 59;

| (b) | the arrangements governing exchanges of information and documents between the Commission and the Member States, and the implementation of information systems, including the type, format and content of data to be processed by those systems and the corresponding data storage rules; |
| --- | --- |

(b)

the arrangements governing exchanges of information and documents between the Commission and the Member States, and the implementation of information systems, including the type, format and content of data to be processed by those systems and the corresponding data storage rules;

| (c) | the notifications to the Commission by Member States of information, documents, statistics and reports, and the deadlines and methods for such notification. |
| --- | --- |

(c)

the notifications to the Commission by Member States of information, documents, statistics and reports, and the deadlines and methods for such notification.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 103(3).

CHAPTER II

Use of the euro

Article 93

General principles

1.   The amounts given in the Commission implementing decisions approving the CAP Strategic Plans, the amounts of commitments and payments by the Commission and the amounts of expenditure attested or certified and amounts in declarations of expenditure by the Member States shall be expressed and paid in euro.

2.   The prices and amounts fixed in agricultural legislation shall be expressed in euro.

Those prices and amounts shall be granted or collected in euros in the Member States which have adopted the euro and in the national currency in the Member States which have not.

Article 94

Exchange rate and operative event

1.   The prices and amounts referred to in Article 93(2) shall be converted in the Member States which have not adopted the euro into their national currency by means of an exchange rate.

2.   The operative event for the exchange rate shall be:

| (a) | the completion of customs import or export formalities in the case of amounts collected or granted in trade with third countries; |
| --- | --- |

(a)

the completion of customs import or export formalities in the case of amounts collected or granted in trade with third countries;

| (b) | the event whereby the economic objective of the operation is attained in all other cases. |
| --- | --- |

(b)

the event whereby the economic objective of the operation is attained in all other cases.

3.   Where a direct payment provided for in Regulation (EU) 2021/2115 is made to a beneficiary in a currency other than the euro, Member States shall convert the amount of aid expressed in euros into the national currency on the basis of their most recent exchange rate set by the European Central Bank (ECB) prior to 1 October of the year for which the aid is granted.

By way of derogation from the first subparagraph, Member States may decide, in duly justified cases, to carry out the conversion on the basis of the average of the exchange rates set by the ECB during the month prior to 1 October of the year for which the aid is granted. Member States that choose that option shall set and publish that average rate before 1 December of that year.

4.   As regards the EAGF, when drawing up their declarations of expenditure, Member States which have not adopted the euro shall apply the same exchange rate as that which they used to make payments to beneficiaries or receive revenue, in accordance with this Chapter.

5.   The Commission is empowered to adopt delegated acts in accordance with Article 102 supplementing this Regulation with rules on the operative events and the exchange rate to be used. The specific operative event shall be determined taking account of the following criteria:

| (a) | actual applicability as soon as possible of adjustments to the exchange rate; |
| --- | --- |

(a)

actual applicability as soon as possible of adjustments to the exchange rate;

| (b) | similarity of the operative events for analogous operations carried out under the market organisation; |
| --- | --- |

(b)

similarity of the operative events for analogous operations carried out under the market organisation;

| (c) | coherence in the operative events for the various prices and amounts relating to the market organisation; |
| --- | --- |

(c)

coherence in the operative events for the various prices and amounts relating to the market organisation;

| (d) | practicability and effectiveness of checks on the application of suitable exchange rates. |
| --- | --- |

(d)

practicability and effectiveness of checks on the application of suitable exchange rates.

6.   The Commission is empowered to adopt delegated acts in accordance with Article 102 supplementing this Regulation with rules on the exchange rate applicable when declarations of expenditure are drawn up and when public storage operations are recorded in the accounts of the paying agency.

Article 95

Safeguard measures and derogations

1.   The Commission may adopt implementing acts safeguarding the application of Union law if exceptional monetary practices concerning a national currency are likely to jeopardise it. Those implementing acts may derogate from the existing rules only for a period of time which is strictly necessary. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 103(3).

The European Parliament, the Council and the Member States shall be notified forthwith of the measures referred to in the first subparagraph.

2.   Where exceptional monetary practices concerning a national currency are likely to jeopardise the application of Union law, the Commission is empowered to adopt delegated acts in accordance with Article 102 supplementing this Regulation with derogations from this Chapter in the following cases:

| (a) | where a Member State uses abnormal exchange techniques such as multiple exchange rates or operates barter agreements; |
| --- | --- |

(a)

where a Member State uses abnormal exchange techniques such as multiple exchange rates or operates barter agreements;

| (b) | where Member States have currencies which are not quoted on official foreign exchange markets or where the trend in such currencies is likely to create distortion in trade. |
| --- | --- |

(b)

where Member States have currencies which are not quoted on official foreign exchange markets or where the trend in such currencies is likely to create distortion in trade.

Article 96

Use of the euro by Member States that have not adopted the euro

1.   If a Member State which has not adopted the euro decides to pay the expenditure resulting from agricultural legislation in euros rather than in its national currency, that Member State shall take measures to ensure that the use of the euro does not provide a systematic advantage compared with the use of national currency.

2.   The Member State shall notify the Commission of the planned measures referred to in paragraph 1 before they come into effect. Those measures shall not take effect until the Commission has notified that Member State of its agreement thereto.

CHAPTER III

Reporting

Article 97

Annual financial report

By 30 September of each year following the budgetary year, the Commission shall submit to the European Parliament and to the Council a financial report on the administration of the EAGF and EAFRD during the previous budgetary year.

CHAPTER IV

Transparency

Article 98

Publication of information relating to beneficiaries

1.   Member States shall ensure annual ex-post publication of the beneficiaries of the EAGF and EAFRD for the purposes of Article 49(3) and (4) of Regulation (EU) 2021/1060 and in accordance with paragraphs 2, 3 and 4 of this Article, including, where applicable, the information on groups in which the beneficiaries participate in accordance with Article 59(4) of this Regulation, as provided to them by those beneficiaries in accordance with Article 59(4) of this Regulation.

2.   Article 49(3), points (a), (b), (d) to (j) and (l), and Article 49(4) of Regulation (EU) 2021/1060 shall apply in respect of beneficiaries of the EAFRD and the EAGF, where relevant. The application of Article 49(3), point (e), of that Regulation shall be limited to the purpose of the operation. Article 49(3), point (k), of that Regulation shall apply to the EAFRD.

3.   For the purposes of this Article, the following definitions apply:

| (a) | ‘operation’ means measure, sector or type of intervention; |
| --- | --- |

(a)

‘operation’ means measure, sector or type of intervention;

| (b) | ‘total cost of the operation’ means the amounts of payment corresponding to each measure, sector, or type of intervention financed by the EAGF or the EAFRD received by each beneficiary in the financial year concerned; as regards the payments corresponding to the types of intervention financed by the EAFRD, the amounts to be published correspond to the total public funding, including both the Union and the national contribution; |
| --- | --- |

(b)

‘total cost of the operation’ means the amounts of payment corresponding to each measure, sector, or type of intervention financed by the EAGF or the EAFRD received by each beneficiary in the financial year concerned; as regards the payments corresponding to the types of intervention financed by the EAFRD, the amounts to be published correspond to the total public funding, including both the Union and the national contribution;

| (c) | ‘location indicator or geolocation for the operation’ means the municipality where the beneficiary is resident or is registered and, where available, the postal code or the part thereof identifying the municipality. |
| --- | --- |

(c)

‘location indicator or geolocation for the operation’ means the municipality where the beneficiary is resident or is registered and, where available, the postal code or the part thereof identifying the municipality.

4.   Each Member State shall make the information referred to in Article 49(3) and (4) of Regulation (EU) 2021/1060 available on a single website. Such information shall remain available for two years from the date of its initial publication.

Member States shall not publish the information referred to in Article 49(3), points (a) and (b), of Regulation (EU) 2021/1060 if the amount of aid received in one year by a beneficiary is equal to or less than EUR 1 250.

Article 99

Informing beneficiaries of the publication of data concerning them

Member States shall inform the beneficiaries that data concerning them will be made public in accordance with Article 98 and that such data may be processed by auditing and investigating bodies of the Union and the Member States for the purposes of protecting the Union’s financial interests.

In accordance with the requirements of Regulation (EU) 2016/679, where personal data are concerned, the Member States shall inform the beneficiaries of their rights under that Regulation and of the procedures applicable for exercising those rights.

Article 100

Implementing powers relating to transparency

The Commission shall adopt implementing acts laying down rules on:

| (a) | the form, including the way of presentation by measure, sector, or type of intervention, and the timescale of the publication provided for in Articles 98 and 99; |
| --- | --- |

(a)

the form, including the way of presentation by measure, sector, or type of intervention, and the timescale of the publication provided for in Articles 98 and 99;

| (b) | the uniform application of Article 99; |
| --- | --- |

(b)

the uniform application of Article 99;

| (c) | the cooperation between the Commission and Member States. |
| --- | --- |

(c)

the cooperation between the Commission and Member States.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 103(3).

CHAPTER V

Protection of personal data

Article 101

Processing and protection of personal data

1.   Without prejudice to Articles 98, 99 and 100, Member States and the Commission shall collect personal data for the purposes of carrying out their respective management, control, audit and monitoring and evaluation obligations under this Regulation and, in particular, those laid down in Title II, Chapter II, Title III, Chapters III and IV, Title IV and Title V, Chapter III, and for statistical purposes, and shall not process those data in a way that is incompatible with those purposes.

2.   Where personal data are processed for monitoring and evaluation purposes under Regulation (EU) 2021/2115, and for statistical purposes, they shall be made anonymous.

3.   Personal data shall be processed in accordance with Regulations (EU) 2016/679 and (EU) 2018/1725. In particular, such data shall not be stored in a form which enables data subjects to be identified for longer than is necessary for the purposes for which those data were collected or for which they are further processed, taking into account the minimum retention periods laid down in the applicable Union and national law.

4.   Member States shall inform the data subjects that their personal data may be processed by national and Union bodies in accordance with paragraph 1 and that in this respect they enjoy the data protection rights provided by Regulations (EU) 2016/679 and (EU) 2018/1725.

TITLE VI

DELEGATED ACTS AND IMPLEMENTING ACTS

Article 102

Exercise of the delegation

1.   The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

2.   The power to adopt delegated acts referred to in Article 11(1), Article 17(5), Article 23(2), Article 38(2), Article 40(3), Article 41(3), Article 44(4) and (5), Article 47(1), Article 52(1), Article 54(4), Article 55(6), Article 60(3), Article 64(3), Article 74, Article 76(2), Article 85(7), Article 89(2), Article 94(5) and (6), Article 95(2) and Article 105 shall be conferred on the Commission for a period of seven years from 7 December 2021. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the seven-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.

3.   The delegation of power referred to in Article 11(1), Article 17(5), Article 23(2), Article 38(2), Article 40(3), Article 41(3), Article 44(4) and (5), Article 47(1), Article 52(1), Article 54(4), Article 55(6), Article 60(3), Article 64(3), Article 74, Article 76(2), Article 85(7), Article 89(2), Article 94(5) and (6), Article 95(2) and Article 105 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

4.   Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.

5.   As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.

6.   A delegated act adopted pursuant to Article 11(1), Article 17(5), Article 23(2), Article 38(2), Article 40(3), Article 41(3), Article 44(4) and (5), Article 47(1), Article 52(1), Article 54(4), Article 55(6), Article 60(3), Article 64(3), Article 74, Article 76(2), Article 85(7), Article 89(2), Article 94(5) and (6), Article 95(2) and Article 105 shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and to the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.

Article 103

Committee procedure

1.   The Commission shall be assisted by a committee, called the Committee on the Agricultural Funds. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

For the purposes of Articles 11, 12, 17, 18, 23, 26, 32, 39 to 44, 47, 51 to 55, 58, 59, 60, 64, 75, 82, 92, 95 and 100, as regards matters relating to interventions in the form of direct payments, interventions in certain sectors, interventions for rural development and the common organisation of markets, the Commission shall be assisted by the Committee on the Agricultural Funds, the Common Agricultural Policy Committee established by Regulation (EU) 2021/2115 and the Committee for the Common Organisation of the Agricultural Markets established by Regulation (EU) No 1308/2013, respectively.

2.   Where reference is made to this paragraph, Article 4 of Regulation (EU) No 182/2011 shall apply.

3.   Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

TITLE VII

FINAL PROVISIONS

Article 104

Repeal

1.   Regulation (EU) No 1306/2013 is repealed.

However:

| (a) | Article 4(1), point (b), Article 5, Article 7(3), Articles 9, 17, 21 and 34, Article 35(4), Articles 36, 37, 38, 40 to 43, 51, 52, 54, 56, 59, 63, 64, 67, 68, 70 to 75, 77, 91 to 97, 99 and 100, Article 102(2) and Articles 110 and 111 of Regulation (EU) No 1306/2013 continue to apply:






  (i) | in relation to expenditure incurred and payments made for support schemes under Regulation (EU) No 1307/2013 in respect of the calendar year 2022 and before; |
| --- | --- | --- |

(a)

Article 4(1), point (b), Article 5, Article 7(3), Articles 9, 17, 21 and 34, Article 35(4), Articles 36, 37, 38, 40 to 43, 51, 52, 54, 56, 59, 63, 64, 67, 68, 70 to 75, 77, 91 to 97, 99 and 100, Article 102(2) and Articles 110 and 111 of Regulation (EU) No 1306/2013 continue to apply:

(i)

in relation to expenditure incurred and payments made for support schemes under Regulation (EU) No 1307/2013 in respect of the calendar year 2022 and before;

| (ii) | for measures implemented under Regulations (EU) No 228/2013, (EU) No 229/2013, (EU) No 1308/2013 and (EU) No 1144/2014 until 31 December 2022; |
| --- | --- |

(ii)

for measures implemented under Regulations (EU) No 228/2013, (EU) No 229/2013, (EU) No 1308/2013 and (EU) No 1144/2014 until 31 December 2022;

| (iii) | for the aid schemes referred to in Article 5(6), first subparagraph, point (c), and Article 5(7) of Regulation (EU) 2021/2115 of the European Parliament and of the Council (36) in relation to expenditure incurred and payments made for operations implemented pursuant to Regulation (EU) No 1308/2013 after 31 December 2022 and until the end of those aid schemes; and |
| --- | --- |

(iii)

for the aid schemes referred to in Article 5(6), first subparagraph, point (c), and Article 5(7) of Regulation (EU) 2021/2115 of the European Parliament and of the Council (36) in relation to expenditure incurred and payments made for operations implemented pursuant to Regulation (EU) No 1308/2013 after 31 December 2022 and until the end of those aid schemes; and

| (iv) | as regards the EAFRD, in relation to expenditure incurred by the beneficiaries and payments made by the paying agency in the framework of the implementation of rural development programmes pursuant to Regulation (EU) No 1305/2013; |
| --- | --- |

(iv)

as regards the EAFRD, in relation to expenditure incurred by the beneficiaries and payments made by the paying agency in the framework of the implementation of rural development programmes pursuant to Regulation (EU) No 1305/2013;

| (b) | Article 69 of Regulation (EU) No 1306/2013 continue to apply in relation to expenditure incurred and payments made for support schemes pursuant to Regulation (EU) No 1307/2013 and in the framework of the implementation of rural development programmes approved by the Commission under Regulation (EU) No 1305/2013 and other CAP measures laid down in Title II, Chapter I, of Regulation (EU) No 1306/2013 implemented before 1 January 2023; |
| --- | --- |

(b)

Article 69 of Regulation (EU) No 1306/2013 continue to apply in relation to expenditure incurred and payments made for support schemes pursuant to Regulation (EU) No 1307/2013 and in the framework of the implementation of rural development programmes approved by the Commission under Regulation (EU) No 1305/2013 and other CAP measures laid down in Title II, Chapter I, of Regulation (EU) No 1306/2013 implemented before 1 January 2023;

| (c) | Article 54(2) of Regulation (EU) No 1306/2013 continue to apply in relation to revenue declared in the framework of the implementation of rural development programmes approved by the Commission under Regulation (EU) No 1305/2013, Regulation (EC) No 1698/2005 and Commission Regulation (EC) No 27/2004 (37); |
| --- | --- |

(c)

Article 54(2) of Regulation (EU) No 1306/2013 continue to apply in relation to revenue declared in the framework of the implementation of rural development programmes approved by the Commission under Regulation (EU) No 1305/2013, Regulation (EC) No 1698/2005 and Commission Regulation (EC) No 27/2004 (37);

| (d) | Regulation (EU) No 1306/2013 continue to apply in relation to expenditure relating to legal commitments referred to in Article 155(2) of Regulation (EU) 2021/2115. Notwithstanding that, Article 31 of this Regulation shall apply to the expenditure notified to the Commission in accordance with Article 155(2) of Regulation (EU) 2021/2115, which shall for this purpose be considered to be a type of intervention. |
| --- | --- |

(d)

Regulation (EU) No 1306/2013 continue to apply in relation to expenditure relating to legal commitments referred to in Article 155(2) of Regulation (EU) 2021/2115. Notwithstanding that, Article 31 of this Regulation shall apply to the expenditure notified to the Commission in accordance with Article 155(2) of Regulation (EU) 2021/2115, which shall for this purpose be considered to be a type of intervention.

2.   References to the repealed Regulation shall be construed as references to this Regulation, to Regulation (EU) 2021/2115 and to Regulation (EU) No 1308/2013 and shall be read in accordance with the correlation table in the Annex.

Article 105

Transitional measures

The Commission is empowered to adopt delegated acts in accordance with Article 102 which are necessary to ensure the smooth transition from the arrangements provided for in Regulation (EU) No 1306/2013, as referred to in Article 104 of this Regulation, to those laid down in this Regulation, supplementing this Regulation with derogations from, and additions to, the rules provided for in this Regulation.

Article 106

Entry into force and application

This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

Official Journal of the European Union

It shall apply from 1 January 2023.

However, Article 16 shall apply to expenditure effected from 16 October 2022 as regards the EAGF.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 2 December 2021

For the European Parliament

The President

D. M. SASSOLI

For the Council

The President

J. VRTOVEC

---

(1)  
  OJ C 41, 1.2.2019, p. 1.

1

(2)  
  OJ C 62, 15.2.2019, p. 214.

2

(3)  
  OJ C 86, 7.3.2019, p. 173.

3

(4)  Position of the European Parliament of 23 November 2021 (not yet published in the Official Journal) and decision of the Council of 2 December 2021.

4

(5)  Regulation (EU) 2021/2115 of the European Parliament and of the Council of 2 December 2021 establishing rules on support for strategic plans to be drawn up by Member States under the common agricultural policy (CAP Strategic Plans) and financed by the European Agricultural Guarantee Fund (EAGF) and by the European Agricultural Fund for Rural Development (EAFRD) and repealing Regulations (EU) No 1305/2013 and (EU) No 1307/2013 (see page 1 of this Official Journal).

5

(6)  Regulation (EU) No 1306/2013 of the European Parliament and of the Council of 17 December 2013 on the financing, management and monitoring of the common agricultural policy and repealing Council Regulations (EEC) No 352/78, (EC) No 165/94, (EC) No 2799/98, (EC) No 814/2000, (EC) No 1290/2005 and (EC) No 485/2008 (OJ L 347, 20.12.2013, p. 549).

6

(7)  Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1).

7

(8)  Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021 to 2027 (OJ L 433 I, 22.12.2020, p. 11).

8

(9)  
  OJ L 433 I, 22.12.2020, p. 28.

9

(10)  Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1).

10

(11)  Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests (OJ L 312, 23.12.1995, p. 1).

11

(12)  Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities’ financial interests against fraud and other irregularities (OJ L 292, 15.11.1996, p. 2).

12

(13)  Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’) (OJ L 283, 31.10.2017, p. 1).

13

(14)  Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union’s financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29).

14

(15)  See in particular: judgment of the Court of 6 December 1989 in Case C-329/88, Commission of the European Communities v Hellenic Republic, ECLI:EU:C:1989:618; judgment of the Court of 1 June 1994 in Case C-317/92, Commission of the European Communities v Federal Republic of Germany, ECLI:EU:C:1994:212; judgment of the Court (First Chamber) of 6 October 2009 in Case C-562/07, Commission of the European Communities v Kingdom of Spain, ECLI:EU:C:2009:614; judgment of the Court of First Instance (Second Chamber) of 14 September 1995 in Case T-571/93, Lefebvre frères et sœurs, GIE Fructifruit, Association des Mûrisseurs Indépendants and Star fruits Cie v Commission of the European Communities, ECLI:EU:T:1995:163; judgment of the Court (Grand Chamber) of 19 May 2009 in Case C-531/06, Commission of the European Communities v Italian Republic, ECLI:EU:C:2009:315.

15

Commission of the European Communities v Hellenic Republic

Commission of the European Communities v Federal Republic of Germany

Commission of the European Communities v Kingdom of Spain

Lefebvre frères et sœurs, GIE Fructifruit, Association des Mûrisseurs Indépendants and Star fruits Cie v Commission of the European Communities

Commission of the European Communities v Italian Republic

(16)  Regulation (EU) No 228/2013 of the European Parliament and of the Council of 13 March 2013 laying down specific measures for agriculture in the outermost regions of the Union and repealing Council Regulation (EC) No 247/2006 (OJ L 78, 20.3.2013, p. 23).

16

(17)  Regulation (EU) No 229/2013 of the European Parliament and of the Council of 13 March 2013 laying down specific measures for agriculture in favour of the smaller Aegean islands and repealing Council Regulation (EC) No 1405/2006 (OJ L 78, 20.3.2013, p. 41).

17

(18)  Judgment of the Court of Justice of 27 January 2021, De Ruiter vof v Minister van Landbouw, Natuur en Voedselkwaliteit, C-361/19, ECLI:EU:C:2021:71.

18

De Ruiter vof v Minister van Landbouw, Natuur en Voedselkwaliteit

(19)  Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 4.5.2016, p. 1).

19

(20)  Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October 2018 on the protection of natural persons with regard to the processing of personal data by the Union institutions, bodies, offices and agencies and on the free movement of such data, and repealing Regulation (EC) No 45/2001 and Decision No 1247/2002/EC (OJ L 295, 21.11.2018, p. 39).

20

(21)  Regulation (EU) 2021/1060 of the European Parliament and of the Council of 24 June 2021 laying down common provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund, the Just Transition Fund and the European Maritime, Fisheries and Aquaculture Fund and financial rules for those and for the Asylum, Migration and Integration Fund, the Internal Security Fund and the Instrument for Financial Support for Border Management and Visa Policy (OJ L 231, 30.6.2021, p. 159).

21

(22)  
  OJ L 123, 12.5.2016, p. 1.

22

(23)  Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (OJ L 269, 10.10.2013, p. 1).

23

(24)  Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).

24

(25)  Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC (OJ L 94, 28.3.2014, p. 65).

25

(26)  Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007 (OJ L 347, 20.12.2013, p. 671).

26

(27)  Council Regulation (EC) No 58/2003 of 19 December 2002 laying down the statute for executive agencies to be entrusted with certain tasks in the management of Community programmes (OJ L 11, 16.1.2003, p. 1).

27

(28)  Regulation (EU) No 1151/2012 of the European Parliament and of the Council of 21 November 2012 on quality schemes for agricultural products and foodstuffs (OJ L 343, 14.12.2012, p. 1).

28

(29)  Regulation (EU) No 1144/2014 of the European Parliament and of the Council of 22 October 2014 on information provision and promotion measures concerning agricultural products implemented in the internal market and in third countries and repealing Council Regulation (EC) No 3/2008 (OJ L 317, 4.11.2014, p. 56).

29

(30)  Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19).

30

(31)  Regulation (EU) 2016/429 of the European Parliament and of the Council of 9 March 2016 on transmissible animal diseases and amending and repealing certain acts in the area of animal health (Animal Health Law)(OJ L 84, 31.3.2016, p. 1).

31

(32)  Council Directive 91/676/EEC of 12 December 1991 concerning the protection of waters against pollution caused by nitrates from agricultural sources (OJ L 375, 31.12.1991, p. 1).

32

(33)  Directive 2007/2/EC of the European Parliament and of the Council of 14 March 2007 establishing an Infrastructure for Spatial Information in the European Community (INSPIRE) (OJ L 108, 25.4.2007, p. 1).

33

(34)  Regulation (EC) No 223/2009 of the European Parliament and of the Council of 11 March 2009 on European statistics and repealing Regulation (EC, Euratom) No 1101/2008 of the European Parliament and of the Council on the transmission of data subject to statistical confidentiality to the Statistical Office of the European Communities, Council Regulation (EC) No 322/97 on Community Statistics, and Council Decision 89/382/EEC, Euratom establishing a Committee on the Statistical Programmes of the European Communities (OJ L 87, 31.3.2009, p. 164).

34

(35)  Council Directive 96/22/EC of 29 April 1996 concerning the prohibition on the use in stockfarming of certain substances having a hormonal or thyrostatic action and of ß-agonists, and repealing Directives 81/602/EEC, 88/146/EEC and 88/299/EEC (OJ L 125, 23.5.1996, p. 3).

35

(36)  Regulation (EU) 2021/2115 of the European Parliament and of the Council of 2 December 2021 amending Regulations (EU) No 1308/2013 establishing a common organisation of the markets in agricultural products, (EU) No 1151/2012 on quality schemes for agricultural products and foodstuffs, (EU) No 251/2014 on the definition, description, presentation, labelling and the protection of geographical indications of aromatised wine products and (EU) No 228/2013 laying down specific measures for agriculture in the outermost regions of the Union (see page 1 of this Official Journal).

36

(37)  Commission Regulation (EC) No 27/2004 of 5 January 2004 laying down transitional detailed rules for the application of Council Regulation (EC) No 1257/1999 as regards the financing by the EAGGF Guarantee Section of rural development measures in the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia (OJ L 5, 9.1.2004, p. 36).

37

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ANNEX

CORRELATION TABLE

| Regulation (EU) No 1306/2013 | This Regulation | Regulation (EU) 2021/2115 | Regulation (EU) No 1308/2013 |
| --- | --- | --- | --- |
| Article 1 | Article 1 | – | – |
| Article 2 | Articles 2 and 3 | – | – |
| Article 3 | Article 4 | – | – |
| Article 4 | Article 5 | – | – |
| Article 5 | Article 6 | – | – |
| Article 6 | Article 7 | – | – |
| Article 7(1), (2) and (3) | Article 9 | – | – |
| Article 7(4) and (5) | Article 10 | – | – |
| Article 7(6) | – | – | – |
| Article 8 | Article 11 | – | – |
| Article 9 | Article 12 | – | – |
| Article 10 | Article 37, point (a) | – | – |
| Article 11 | Article 44(1) | – | – |
| Article 12 | – | Article 15(1), (2) and (4) | – |
| Article 13(1) | – | Article 15(3) | – |
| Article 13(2) and (3) | – | – | – |
| Article 14 | – | – | – |
| Article 15 | – | – | – |
| Article 16 | Article 14 | – | – |
| Article 17 | Article 20 | – | – |
| Article 18 | Article 21 | – | – |
| Article 19 | Article 22 | – | – |
| Article 20 | Article 23 | – | – |
| Article 21 | Article 24 | – | – |
| Article 22 | Article 25 | – | – |
| Article 23 | Article 26 | – | – |
| Article 24 | Article 15 | – | – |
| Article 25 | Article 16 | – | – |
| Article 26 | Article 17 | – | – |
| Article 27 | Article 18 | – | – |
| Article 28 | Article 19 | – | – |
| Article 29 | – | – | – |
| Article 30 | Article 36 | – | – |
| Article 31 | Article 27 | – | – |
| Article 32 | Article 28 | – | – |
| Article 33 | Article 29 | – | – |
| Article 34 | Article 30 | – | – |
| Article 35 | Article 31 | – | – |
| Article 36 | Article 32 | – | – |
| Article 37 | Article 33 | – | – |
| Article 38 | Article 34 | – | – |
| Article 39 | Article 35 | – | – |
| Article 40 | Article 38 | – | – |
| Article 41 | Article 39 | – | – |
| Article 42 | – | – | – |
| Article 43 | Article 45 | – | – |
| Article 44 | Article 43(1) | – | – |
| Article 45 | Article 46 | – | – |
| Article 46 | Article 43(2) and Article 47 | – | – |
| Article 47 | Article 49 | – | – |
| Article 48 | Article 50 | – | – |
| Article 49 | Article 51(1) and (2) | – | – |
| Article 50 | Article 51(3) and Article 52 | – | – |
| Article 51 | Article 53 | – | – |
| Article 52 | Article 55 | – | – |
| Article 53 | – | – | – |
| Article 54 | – | – | – |
| Article 55 | Article 56 | – | – |
| Article 56 | Article 57 | – | – |
| Article 57 | Article 58 | – | – |
| Article 58 | Article 59 | – | – |
| Article 59 | – | – | – |
| Article 60 | Article 62 | – | – |
| Article 61 | Article 63 | – | – |
| Article 62 | Article 60 | – | – |
| Article 63(1), first subparagraph, and (2) to (5) | – | – | – |
| Article 63(1), second subparagraph | Article 61 | – | – |
| Article 64 | – | – | – |
| Article 65 | – | – | – |
| Article 66 | Article 64 | – | – |
| Article 67 | Article 65 | – | – |
| Article 68 | Article 66 | – | – |
| Article 69(1), first subparagraph | Article 67(1), second subparagraph | – | – |
| Article 69(1), second subparagraph | – | – | – |
| Article 69(1), third subparagraph | Article 67(1), fourth subparagraph | – | – |
| Article 69(2) | Article 67(2) | – | – |
| Article 70 | Article 68 | – | – |
| Article 71 | Article 73 | – | – |
| Article 72 | Article 69 | – | – |
| Article 73 | Article 71 | – | – |
| Article 74(1) | Article 72 | – | – |
| Article 74(2), (3) and (4) | – | – | – |
| Article 75 | Article 44(2), (3) and (5) | – | – |
| Article 76 | Article 74 | – | – |
| Article 77 | – | – | – |
| Article 78 | Article 75 | – | – |
| Article 79 | Article 76 | – | – |
| Article 80 | Article 77(1), (2) and (5) | – | – |
| Article 81 | Article 78(1), (2) and (3) | – | – |
| Article 82(1) and (2) | Article 78(4) and (5) | – | – |
| Article 82(3) and (4) | – | – | – |
| Article 83(1) | Article 79 | – | – |
| Article 83(2) and (3) | – | – | – |
| Article 84(1), (2), (3) and (4) | Article 80 | – | – |
| Article 84(5) | – | – | – |
| Article 84(6) | Article 77(4) | – | – |
| Article 85(1),(3) and (4) | – | – | – |
| Article 85(2) | Article 77(3) | – | – |
| Article 86(1) | Article 80(2), point (b) | – | – |
| Article 86(2) | – | – | – |
| Article 87 | Article 81 | – | – |
| Article 88 | Article 82 | – | – |
| Article 89 | – | – | Article 90a |
| Article 90 | – | – | Article 116a |
| Article 91 | – | Article 12 | – |
| Article 92 | – | Article 12 | – |
| Article 93 | – | Article 12 | – |
| Article 94 | – | Article 14 | – |
| Article 95 | – | – | – |
| Article 96 | Article 83 | – | – |
| Article 97 | Article 84 | – | – |
| Article 98 | – | – | – |
| Article 99 | Article 85 | – | – |
| Article 100 | Article 86 | – | – |
| Article 101(1) | – | – | – |
| Article 101(2) | Article 85(7) | – | – |
| Article 102 | Article 90 | – | – |
| Article 103 | Article 91 | – | – |
| Article 104 | Article 92 | – | – |
| Article 105 | Article 93 | – | – |
| Article 106 | Article 94 | – | – |
| Article 107 | Article 95 | – | – |
| Article 108 | Article 96 | – | – |
| Article 109 | Article 97 | – | – |
| Article 110 | – | Article 128 | – |
| Article 111 | Article 98(1), (2) and (3) | – | – |
| Article 112 | Article 98(4) | – | – |
| Article 113 | Article 99 | – | – |
| Article 114 | Article 100 | – | – |
| Article 115 | Article 102 | – | – |
| Article 116 | Article 103 | – | – |
| Article 117 | Article 101 | – | – |
| Article 118 | – | – | – |
| Article 119 | Article 104 | – | – |
| Article 119a | – | – | – |
| Article 120 | Article 105 | – | – |
| Article 121 | Article 106 | – | – |
| Annex I | – | – | – |
| Annex II | – | Annex III | – |
| Annex III | Annex | – | – |

Regulation (EU) No 1306/2013

This Regulation

Regulation (EU) 2021/2115

Regulation (EU) No 1308/2013

Article 1

Article 1

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Article 2

Articles 2 and 3

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Article 3

Article 4

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Article 4

Article 5

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Article 5

Article 6

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Article 6

Article 7

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Article 7(1), (2) and (3)

Article 9

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Article 7(4) and (5)

Article 10

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Article 7(6)

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Article 8

Article 11

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Article 9

Article 12

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Article 10

Article 37, point (a)

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Article 11

Article 44(1)

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Article 12

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Article 15(1), (2) and (4)

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Article 13(1)

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Article 15(3)

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Article 13(2) and (3)

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Article 14

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Article 15

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Article 16

Article 14

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Article 17

Article 20

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Article 18

Article 21

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Article 19

Article 22

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Article 20

Article 23

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Article 21

Article 24

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Article 22

Article 25

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Article 23

Article 26

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Article 24

Article 15

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Article 25

Article 16

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Article 26

Article 17

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Article 27

Article 18

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Article 28

Article 19

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Article 29

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Article 30

Article 36

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Article 31

Article 27

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Article 32

Article 28

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Article 33

Article 29

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Article 34

Article 30

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Article 35

Article 31

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Article 36

Article 32

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Article 37

Article 33

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Article 38

Article 34

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Article 39

Article 35

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Article 40

Article 38

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Article 41

Article 39

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Article 42

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Article 43

Article 45

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Article 44

Article 43(1)

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Article 45

Article 46

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Article 46

Article 43(2) and Article 47

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Article 47

Article 49

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Article 48

Article 50

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Article 49

Article 51(1) and (2)

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Article 50

Article 51(3) and Article 52

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Article 51

Article 53

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Article 52

Article 55

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Article 53

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Article 54

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Article 55

Article 56

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Article 56

Article 57

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Article 57

Article 58

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Article 58

Article 59

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Article 59

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Article 60

Article 62

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Article 61

Article 63

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Article 62

Article 60

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Article 63(1), first subparagraph, and (2) to (5)

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Article 63(1), second subparagraph

Article 61

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Article 64

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Article 65

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Article 66

Article 64

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Article 67

Article 65

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Article 68

Article 66

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Article 69(1), first subparagraph

Article 67(1), second subparagraph

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Article 69(1), second subparagraph

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Article 69(1), third subparagraph

Article 67(1), fourth subparagraph

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Article 69(2)

Article 67(2)

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Article 70

Article 68

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Article 71

Article 73

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Article 72

Article 69

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Article 73

Article 71

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Article 74(1)

Article 72

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Article 74(2), (3) and (4)

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Article 75

Article 44(2), (3) and (5)

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Article 76

Article 74

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Article 77

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Article 78

Article 75

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Article 79

Article 76

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Article 80

Article 77(1), (2) and (5)

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Article 81

Article 78(1), (2) and (3)

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Article 82(1) and (2)

Article 78(4) and (5)

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Article 82(3) and (4)

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Article 83(1)

Article 79

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Article 83(2) and (3)

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Article 84(1), (2), (3) and (4)

Article 80

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Article 84(5)

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Article 84(6)

Article 77(4)

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Article 85(1),(3) and (4)

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Article 85(2)

Article 77(3)

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Article 86(1)

Article 80(2), point (b)

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Article 86(2)

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Article 87

Article 81

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Article 88

Article 82

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Article 89

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Article 90a

Article 90

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Article 116a

Article 91

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Article 12

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Article 92

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Article 12

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Article 93

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Article 12

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Article 94

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Article 14

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Article 95

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Article 96

Article 83

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Article 97

Article 84

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Article 98

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Article 99

Article 85

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Article 100

Article 86

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Article 101(1)

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Article 101(2)

Article 85(7)

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Article 102

Article 90

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Article 103

Article 91

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Article 104

Article 92

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Article 105

Article 93

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Article 106

Article 94

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Article 107

Article 95

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Article 108

Article 96

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Article 109

Article 97

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Article 110

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Article 128

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Article 111

Article 98(1), (2) and (3)

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Article 112

Article 98(4)

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Article 113

Article 99

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Article 114

Article 100

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Article 115

Article 102

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Article 116

Article 103

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Article 117

Article 101

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Article 118

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Article 119

Article 104

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Article 119a

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Article 120

Article 105

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Article 121

Article 106

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Annex I

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Annex II

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Annex III

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Annex III

Annex

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| 6.12.2021 | EN | Official Journal of the European Union | L 435/262 |
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6.12.2021

EN

Official Journal of the European Union

L 435/262

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REGULATION (EU) 2021/2117 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of 2 December 2021

amending Regulations (EU) No 1308/2013 establishing a common organisation of the markets in agricultural products, (EU) No 1151/2012 on quality schemes for agricultural products and foodstuffs, (EU) No 251/2014 on the definition, description, presentation, labelling and the protection of geographical indications of aromatised wine products and (EU) No 228/2013 laying down specific measures for agriculture in the outermost regions of the Union

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 43(2), Article 114, Article 118, first paragraph, and Article 349 thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee (1),

Having regard to the opinion of the Committee of the Regions (2),

Having regard to the opinion of the Court of Auditors (3),

Acting in accordance with the ordinary legislative procedure (4),

Whereas:

| (1) | The Communication from the Commission of 29 November 2017 entitled ‘The Future of Food and Farming’ sets out the challenges, objectives and orientations for the future common agricultural policy (CAP) after 2020. Those objectives include making the CAP more result-driven, boosting modernisation and sustainability, including the economic, social, environmental and climate sustainability of the agricultural, forestry and rural areas, and helping reduce the Union legislation-related administrative burden for beneficiaries. |
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(1)

The Communication from the Commission of 29 November 2017 entitled ‘The Future of Food and Farming’ sets out the challenges, objectives and orientations for the future common agricultural policy (CAP) after 2020. Those objectives include making the CAP more result-driven, boosting modernisation and sustainability, including the economic, social, environmental and climate sustainability of the agricultural, forestry and rural areas, and helping reduce the Union legislation-related administrative burden for beneficiaries.

| (2) | Since the CAP needs to sharpen its responses to the challenges and opportunities as they manifest themselves at international, Union, national, regional, local and farm levels, it is necessary to streamline the governance of the CAP and improve its delivery on the Union objectives and to significantly decrease the administrative burden. The CAP should be based on delivery of performance. Therefore, the Union should set the basic policy parameters, such as the objectives of the CAP and its basic requirements, while Member States should bear greater responsibility as to how they meet the objectives and achieve targets. Enhanced subsidiarity makes it possible to better take into account local conditions and needs and 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, tailoring the support to maximise the contribution to the achievement of Union objectives. |
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(2)

Since the CAP needs to sharpen its responses to the challenges and opportunities as they manifest themselves at international, Union, national, regional, local and farm levels, it is necessary to streamline the governance of the CAP and improve its delivery on the Union objectives and to significantly decrease the administrative burden. The CAP should be based on delivery of performance. Therefore, the Union should set the basic policy parameters, such as the objectives of the CAP and its basic requirements, while Member States should bear greater responsibility as to how they meet the objectives and achieve targets. Enhanced subsidiarity makes it possible to better take into account local conditions and needs and 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, tailoring the support to maximise the contribution to the achievement of Union objectives.

| (3) | Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 of the Treaty on the Functioning of the European Union (‘TFEU’) apply to this Regulation. Those rules are laid down in Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (5) (the ‘Financial Regulation’) and determine in particular the procedure for establishing and implementing the budget through grants, procurement, prizes, indirect implementation, and provide for checks on the responsibility of financial actors. Rules adopted on the basis of Article 322 TFEU also include a general regime of conditionality for the protection of the Union budget. |
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(3)

Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 of the Treaty on the Functioning of the European Union (‘TFEU’) apply to this Regulation. Those rules are laid down in Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (5) (the ‘Financial Regulation’) and determine in particular the procedure for establishing and implementing the budget through grants, procurement, prizes, indirect implementation, and provide for checks on the responsibility of financial actors. Rules adopted on the basis of Article 322 TFEU also include a general regime of conditionality for the protection of the Union budget.

| (4) | To ensure the coherence of the CAP, all interventions of the future CAP should be part of a strategic plan which would include types of intervention in certain sectors that were provided for in Regulation (EU) No 1308/2013 of the European Parliament and of the Council (6). |
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(4)

To ensure the coherence of the CAP, all interventions of the future CAP should be part of a strategic plan which would include types of intervention in certain sectors that were provided for in Regulation (EU) No 1308/2013 of the European Parliament and of the Council (6).

| (5) | Annex II to Regulation (EU) No 1308/2013 sets out certain definitions concerning sectors falling within the scope of that Regulation. The definitions concerning the sugar sector set out in Part II, Section B, of that Annex should be deleted because they are no longer applicable. In order to update the definitions concerning other sectors referred to in that Annex in light of new scientific knowledge or market developments, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of the amendment of those definitions, but not the power to add new definitions. Consequently, the individual empowerment delegated to the Commission in Part II, Section A, point 4, of that Annex to amend the definition of inulin syrup should be deleted. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making (7). In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. |
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(5)

Annex II to Regulation (EU) No 1308/2013 sets out certain definitions concerning sectors falling within the scope of that Regulation. The definitions concerning the sugar sector set out in Part II, Section B, of that Annex should be deleted because they are no longer applicable. In order to update the definitions concerning other sectors referred to in that Annex in light of new scientific knowledge or market developments, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of the amendment of those definitions, but not the power to add new definitions. Consequently, the individual empowerment delegated to the Commission in Part II, Section A, point 4, of that Annex to amend the definition of inulin syrup should be deleted. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making (7). In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

| (6) | Part I of Regulation (EU) No 1308/2013 should be simplified. Redundant and obsolete definitions and provisions empowering the Commission to adopt implementing acts should be deleted. |
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(6)

Part I of Regulation (EU) No 1308/2013 should be simplified. Redundant and obsolete definitions and provisions empowering the Commission to adopt implementing acts should be deleted.

| (7) | In light of the experience gained, certain public intervention periods should be extended. Where the opening of public intervention is automatic, the public intervention period should be extended by one month. Where the opening of public intervention depends on market developments, the public intervention period should be the entire year. |
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(7)

In light of the experience gained, certain public intervention periods should be extended. Where the opening of public intervention is automatic, the public intervention period should be extended by one month. Where the opening of public intervention depends on market developments, the public intervention period should be the entire year.

| (8) | For the purposes of increased transparency, and in the context of the Union’s international commitments, it is appropriate to provide for the publication of relevant volume and price information on the buying-in and on the selling of products bought in under public intervention. |
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(8)

For the purposes of increased transparency, and in the context of the Union’s international commitments, it is appropriate to provide for the publication of relevant volume and price information on the buying-in and on the selling of products bought in under public intervention.

| (9) | The granting of aid for the private storage of olive oil has proved to be an effective tool for market stabilisation. In light of the experience gained and in order to ensure a fair standard of living and to stabilise the market in the olive oil and table olives sector, it is appropriate to extend the list of products that are eligible for aid for private storage to also cover table olives. |
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(9)

The granting of aid for the private storage of olive oil has proved to be an effective tool for market stabilisation. In light of the experience gained and in order to ensure a fair standard of living and to stabilise the market in the olive oil and table olives sector, it is appropriate to extend the list of products that are eligible for aid for private storage to also cover table olives.

| (10) | Following the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the Union, the limits on Union aid for the supply of fruit and vegetables and of milk and milk products in educational establishments, set out in Article 23a of Regulation (EU) No 1308/2013, should be updated. It is appropriate for reasons of legal certainty to provide for the reduced limits to apply with retroactive effect from 1 January 2021. |
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(10)

Following the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the Union, the limits on Union aid for the supply of fruit and vegetables and of milk and milk products in educational establishments, set out in Article 23a of Regulation (EU) No 1308/2013, should be updated. It is appropriate for reasons of legal certainty to provide for the reduced limits to apply with retroactive effect from 1 January 2021.

| (11) | Provisions concerning aid schemes set out in Part II, Title I, Chapter II, Sections 2 to 6, of Regulation (EU) No 1308/2013 should be deleted, as all types of intervention in the sectors concerned are set out in Regulation (EU) 2021/2115 of the European Parliament and of the Council (8). |
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(11)

Provisions concerning aid schemes set out in Part II, Title I, Chapter II, Sections 2 to 6, of Regulation (EU) No 1308/2013 should be deleted, as all types of intervention in the sectors concerned are set out in Regulation (EU) 2021/2115 of the European Parliament and of the Council (8).

| (12) | Union wine policy, with its existing scheme of authorisations that has allowed for the orderly growth of vine plantings since 2016, has contributed to increasing the competitiveness of the Union wine sector and to encouraging high-quality production. While the wine sector has achieved a balance between production supply, quality, consumer demand and exports on the world market, that balance is not yet sufficiently longstanding or stable, in particular when the wine sector is faced with serious market disturbances. In addition, there is a trend towards a continued decrease in wine consumption in the Union due to changes in consumer habits and lifestyle. As a consequence, in the long term the liberalisation of new vine plantings risks threatening the balance achieved so far between the supply capacity of the sector, a fair standard of living for producers and reasonable prices for consumers. This risks jeopardising the positive developments achieved through Union legislation and policies in recent decades. |
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(12)

Union wine policy, with its existing scheme of authorisations that has allowed for the orderly growth of vine plantings since 2016, has contributed to increasing the competitiveness of the Union wine sector and to encouraging high-quality production. While the wine sector has achieved a balance between production supply, quality, consumer demand and exports on the world market, that balance is not yet sufficiently longstanding or stable, in particular when the wine sector is faced with serious market disturbances. In addition, there is a trend towards a continued decrease in wine consumption in the Union due to changes in consumer habits and lifestyle. As a consequence, in the long term the liberalisation of new vine plantings risks threatening the balance achieved so far between the supply capacity of the sector, a fair standard of living for producers and reasonable prices for consumers. This risks jeopardising the positive developments achieved through Union legislation and policies in recent decades.

| (13) | The existing scheme of authorisations for vine plantings is also considered essential to ensuring diversity of wines and responding to the specificities of the Union wine sector. The Union wine sector has specific characteristics, including the long cycle of vineyards, given that production only takes place several years after planting but then continues for several decades, and given the potential for considerable fluctuations in production from one harvest to the next. Unlike many wine-producing third countries, the Union wine sector is also characterised by a very high number of small, family-run farms, which results in a diverse range of wines. In order to guarantee the economic viability of their projects and to improve the competitiveness of the Union wine sector on the global market, operators in the sector and producers therefore need long-term predictability, given the significant investment required to plant a vineyard. |
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(13)

The existing scheme of authorisations for vine plantings is also considered essential to ensuring diversity of wines and responding to the specificities of the Union wine sector. The Union wine sector has specific characteristics, including the long cycle of vineyards, given that production only takes place several years after planting but then continues for several decades, and given the potential for considerable fluctuations in production from one harvest to the next. Unlike many wine-producing third countries, the Union wine sector is also characterised by a very high number of small, family-run farms, which results in a diverse range of wines. In order to guarantee the economic viability of their projects and to improve the competitiveness of the Union wine sector on the global market, operators in the sector and producers therefore need long-term predictability, given the significant investment required to plant a vineyard.

| (14) | In order to secure the achievements of the Union wine sector up to now and to achieve a long-lasting quantitative and qualitative balance in the sector through the continued orderly growth of vine plantings beyond 2030, the scheme of authorisations for vine plantings should be extended until 2045, i.e. for a period equivalent to the initial period in place since 2016, but with two mid-term reviews to be carried out in 2028 and 2040, in order to evaluate the scheme and, if necessary, to present proposals on the basis of the results of those mid-term reviews to improve the competitiveness of the wine sector. |
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(14)

In order to secure the achievements of the Union wine sector up to now and to achieve a long-lasting quantitative and qualitative balance in the sector through the continued orderly growth of vine plantings beyond 2030, the scheme of authorisations for vine plantings should be extended until 2045, i.e. for a period equivalent to the initial period in place since 2016, but with two mid-term reviews to be carried out in 2028 and 2040, in order to evaluate the scheme and, if necessary, to present proposals on the basis of the results of those mid-term reviews to improve the competitiveness of the wine sector.

| (15) | Allowing producers to delay the replanting of vineyards could have a positive environmental impact by improving soil sanitary conditions with fewer chemical inputs. Therefore, in order to contribute to a better soil management in viticulture, it is appropriate to allow for the extension of the validity of replanting authorisations from three to six years where the replanting takes place on the same parcel of land. |
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(15)

Allowing producers to delay the replanting of vineyards could have a positive environmental impact by improving soil sanitary conditions with fewer chemical inputs. Therefore, in order to contribute to a better soil management in viticulture, it is appropriate to allow for the extension of the validity of replanting authorisations from three to six years where the replanting takes place on the same parcel of land.

| (16) | Due to the crisis caused by the COVID-19 pandemic in the Union wine sector, Regulation (EU) 2020/2220 of the European Parliament and of the Council (9) provided for the extension until 31 December 2021 of the validity of planting authorisations for new plantings or for replanting that were due to expire in 2020. Due to the prolonged effects of the crisis caused by the COVID-19 pandemic, producers holding planting authorisations for new plantings or for replanting that were due to expire in 2020 or 2021 continue to be largely prevented from using those authorisations in the last year of their validity. To avoid the loss of those authorisations and to reduce the risk of the deterioration of the conditions under which the planting would need to be carried out, it is appropriate to allow for a further extension of the validity of planting authorisations for new plantings or for replanting which expire in 2020 and a extension for those which expire in 2021. All planting authorisations for new plantings or for replanting that were due to expire in 2020 or 2021 should therefore be extended until 31 December 2022. |
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(16)

Due to the crisis caused by the COVID-19 pandemic in the Union wine sector, Regulation (EU) 2020/2220 of the European Parliament and of the Council (9) provided for the extension until 31 December 2021 of the validity of planting authorisations for new plantings or for replanting that were due to expire in 2020. Due to the prolonged effects of the crisis caused by the COVID-19 pandemic, producers holding planting authorisations for new plantings or for replanting that were due to expire in 2020 or 2021 continue to be largely prevented from using those authorisations in the last year of their validity. To avoid the loss of those authorisations and to reduce the risk of the deterioration of the conditions under which the planting would need to be carried out, it is appropriate to allow for a further extension of the validity of planting authorisations for new plantings or for replanting which expire in 2020 and a extension for those which expire in 2021. All planting authorisations for new plantings or for replanting that were due to expire in 2020 or 2021 should therefore be extended until 31 December 2022.

| (17) | Also, taking into account changes in market perspectives, the holders of planting authorisations expiring in 2020 and 2021 should be able not to use their authorisations, without being subject to administrative penalties. Moreover, in order to avoid any discrimination, producers who, in accordance with Regulation (EU) 2020/2220, declared to the competent authority by 28 February 2021 that they did not intend to make use of their authorisation without knowing about the possibility of extending the validity of their authorisations for a second year, should be allowed to retract their declarations by means of a written communication to the competent authority by 28 February 2022 and to make use of their authorisation until 31 December 2022. |
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(17)

Also, taking into account changes in market perspectives, the holders of planting authorisations expiring in 2020 and 2021 should be able not to use their authorisations, without being subject to administrative penalties. Moreover, in order to avoid any discrimination, producers who, in accordance with Regulation (EU) 2020/2220, declared to the competent authority by 28 February 2021 that they did not intend to make use of their authorisation without knowing about the possibility of extending the validity of their authorisations for a second year, should be allowed to retract their declarations by means of a written communication to the competent authority by 28 February 2022 and to make use of their authorisation until 31 December 2022.

| (18) | Because of the market disturbances due to the COVID-19 pandemic and the economic uncertainty it caused as regards the use of those authorisations, the provisions of Regulation (EU) No 1308/2013 on planting authorisations for new plantings or for replanting that expire in years 2020 and 2021, should apply retroactively from 1 January 2021. |
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(18)

Because of the market disturbances due to the COVID-19 pandemic and the economic uncertainty it caused as regards the use of those authorisations, the provisions of Regulation (EU) No 1308/2013 on planting authorisations for new plantings or for replanting that expire in years 2020 and 2021, should apply retroactively from 1 January 2021.

| (19) | In view of the decrease in several Member States in the actual area planted with vines in the years 2014-2017, and in view of the potential loss in production ensuing, when establishing the area for new planting authorisations referred to in Article 63(1) of Regulation (EU) No 1308/2013, Member States should be able to choose between the existing basis and a percentage of the total area actually planted with vines in their territory on 31 July 2015 increased by an area corresponding to the planting rights under Council Regulation (EC) No 1234/2007 (10) that were available for conversion into authorisations in the Member State concerned on 1 January 2016. |
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(19)

In view of the decrease in several Member States in the actual area planted with vines in the years 2014-2017, and in view of the potential loss in production ensuing, when establishing the area for new planting authorisations referred to in Article 63(1) of Regulation (EU) No 1308/2013, Member States should be able to choose between the existing basis and a percentage of the total area actually planted with vines in their territory on 31 July 2015 increased by an area corresponding to the planting rights under Council Regulation (EC) No 1234/2007 (10) that were available for conversion into authorisations in the Member State concerned on 1 January 2016.

| (20) | It should be clarified that Member States that limit the issuing of authorisations at regional level for specific areas eligible for the production of wines with a protected designation of origin or for areas eligible for the production of wines with a protected geographical indication may require such authorisations to be used in those regions. |
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(20)

It should be clarified that Member States that limit the issuing of authorisations at regional level for specific areas eligible for the production of wines with a protected designation of origin or for areas eligible for the production of wines with a protected geographical indication may require such authorisations to be used in those regions.

| (21) | It should be clarified that Member States, for the purpose of granting vine planting authorisations, may apply objective and non-discriminatory eligibility and priority criteria at national or regional level. In addition, the experience of Member States shows the necessity of revising some of the priority criteria in order to be able to give preference to vineyards that contribute to the preservation of vine genetic resources and holdings whose increased cost-efficiency, competiveness or presence on the market has been proven. |
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(21)

It should be clarified that Member States, for the purpose of granting vine planting authorisations, may apply objective and non-discriminatory eligibility and priority criteria at national or regional level. In addition, the experience of Member States shows the necessity of revising some of the priority criteria in order to be able to give preference to vineyards that contribute to the preservation of vine genetic resources and holdings whose increased cost-efficiency, competiveness or presence on the market has been proven.

| (22) | In order to ensure that no advantage is granted in favour of a natural or legal person in respect of whom it is established that the conditions required for obtaining such advantages were created artificially, it is appropriate to clarify that Member States should be allowed to adopt measures to prevent the circumvention of rules concerning the safeguard mechanism for new plantings and the eligibility and priority criteria for the granting of authorisations for new plantings. |
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(22)

In order to ensure that no advantage is granted in favour of a natural or legal person in respect of whom it is established that the conditions required for obtaining such advantages were created artificially, it is appropriate to clarify that Member States should be allowed to adopt measures to prevent the circumvention of rules concerning the safeguard mechanism for new plantings and the eligibility and priority criteria for the granting of authorisations for new plantings.

| (23) | The latest deadline for the submission of requests for the conversion of planting rights into authorisations ends on 31 December 2022. In some cases, circumstances such as the economic crisis caused by the COVID-19 pandemic may have had the effect of limiting the conversion of planting rights into planting authorisations. For that reason, and in order to allow Member States to preserve the production capacity corresponding to such planting rights, it is appropriate that, from 1 January 2023, planting rights that were eligible for conversion into planting authorisations on 31 December 2022 but have not yet been converted into planting authorisations remain at the disposal of the Member States concerned, which may grant them at the latest by 31 December 2025 as authorisations for new vine plantings, without those authorisations being counted for the purposes of the limitations laid down in Article 63 of Regulation (EU) No 1308/2013. |
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(23)

The latest deadline for the submission of requests for the conversion of planting rights into authorisations ends on 31 December 2022. In some cases, circumstances such as the economic crisis caused by the COVID-19 pandemic may have had the effect of limiting the conversion of planting rights into planting authorisations. For that reason, and in order to allow Member States to preserve the production capacity corresponding to such planting rights, it is appropriate that, from 1 January 2023, planting rights that were eligible for conversion into planting authorisations on 31 December 2022 but have not yet been converted into planting authorisations remain at the disposal of the Member States concerned, which may grant them at the latest by 31 December 2025 as authorisations for new vine plantings, without those authorisations being counted for the purposes of the limitations laid down in Article 63 of Regulation (EU) No 1308/2013.

| (24) | In some Member States, there are traditional vineyards planted with varieties that are not allowed for the purposes of wine production, the production of which, including production for the purposes of producing fermented grape beverages other than wine, is not intended for the wine market. It is appropriate to clarify that such vineyards are not subject to grubbing-up obligations and that the scheme of authorisations for vine planting set out in this Regulation does not apply to the planting and replanting of such varieties for purposes other than wine production. |
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(24)

In some Member States, there are traditional vineyards planted with varieties that are not allowed for the purposes of wine production, the production of which, including production for the purposes of producing fermented grape beverages other than wine, is not intended for the wine market. It is appropriate to clarify that such vineyards are not subject to grubbing-up obligations and that the scheme of authorisations for vine planting set out in this Regulation does not apply to the planting and replanting of such varieties for purposes other than wine production.

| (25) | Article 90 of Regulation (EU) No 1308/2013 lays down that, unless otherwise provided for in international agreements concluded in accordance with the TFEU, Union rules on designations of origin and geographical indications, labelling, definitions, designations and sales descriptions for certain products in the wine sector, as well as the oenological practices authorised by the Union, are to apply to the products imported into the Union. Therefore, in the interest of consistency, it is appropriate to provide that the rules concerning certificates of compliance and analysis reports for the import of those products should also be applied in light of the international agreements concluded in accordance with the TFEU. |
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(25)

Article 90 of Regulation (EU) No 1308/2013 lays down that, unless otherwise provided for in international agreements concluded in accordance with the TFEU, Union rules on designations of origin and geographical indications, labelling, definitions, designations and sales descriptions for certain products in the wine sector, as well as the oenological practices authorised by the Union, are to apply to the products imported into the Union. Therefore, in the interest of consistency, it is appropriate to provide that the rules concerning certificates of compliance and analysis reports for the import of those products should also be applied in light of the international agreements concluded in accordance with the TFEU.

| (26) | Within the framework of the CAP reform, provisions concerning withdrawal from the market of products that do not comply with labelling rules should be integrated into Regulation (EU) No 1308/2013. In view of the increasing consumer demand for product controls, Member States should take measures to ensure that products which are not labelled in conformity with that Regulation are not placed on the market or, if such products have already been placed on the market, that they are withdrawn from the market. Withdrawal includes the possibility to correct the labelling of the products without definitively removing them from the market. |
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(26)

Within the framework of the CAP reform, provisions concerning withdrawal from the market of products that do not comply with labelling rules should be integrated into Regulation (EU) No 1308/2013. In view of the increasing consumer demand for product controls, Member States should take measures to ensure that products which are not labelled in conformity with that Regulation are not placed on the market or, if such products have already been placed on the market, that they are withdrawn from the market. Withdrawal includes the possibility to correct the labelling of the products without definitively removing them from the market.

| (27) | In view of the repeal of Regulation (EU) No 1306/2013 of the European Parliament and of the Council (11) by Regulation (EU) 2021/2116 of the European Parliament and of the Council (12), provisions concerning checks and penalties related to marketing rules, protected designations of origin, geographical indications and traditional terms should be integrated into Regulation (EU) No 1308/2013. |
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(27)

In view of the repeal of Regulation (EU) No 1306/2013 of the European Parliament and of the Council (11) by Regulation (EU) 2021/2116 of the European Parliament and of the Council (12), provisions concerning checks and penalties related to marketing rules, protected designations of origin, geographical indications and traditional terms should be integrated into Regulation (EU) No 1308/2013.

| (28) | To enable producers to use vine varieties that are better adapted to changing climatic conditions and that have higher resistance to diseases, provision should be made to permit the use of designations of origin for products made from both vine varieties belonging to Vitis vinifera and vine varieties stemming from a cross between Vitis vinifera and other species of the genus Vitis. |
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(28)

To enable producers to use vine varieties that are better adapted to changing climatic conditions and that have higher resistance to diseases, provision should be made to permit the use of designations of origin for products made from both vine varieties belonging to Vitis vinifera and vine varieties stemming from a cross between Vitis vinifera and other species of the genus Vitis.

| (29) | The definitions of ‘designation of origin’ and ‘geographical indication’ in Regulation (EU) No 1308/2013 should be aligned with the definitions in the Agreement on Trade-Related Aspects of Intellectual Property Rights (‘TRIPS Agreement’), approved by Council Decision 94/800/EC (13), in particular with Article 22(1) of the TRIPS Agreement, in that geographical indications identify the product as originating in a specific place, region or country. In the interest of clarity, it is appropriate to lay down explicitly that the revised definition of a designation of origin includes traditionally used names. As a result, the list of the requirements for a traditionally used name to constitute a designation of origin in the wine sector set out in Regulation (EU) No 1308/2013 will become obsolete and should be deleted. For reasons of consistency, such a clarification should also be introduced in the definition of ‘geographical indication’ for the wine sector laid down in Regulation (EU) No 1308/2013 and in the definitions of ‘designation of origin’ and ‘geographical indications’ for the food sector laid down in Regulation (EU) No 1151/2012 of the European Parliament and of the Council (14). |
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(29)

The definitions of ‘designation of origin’ and ‘geographical indication’ in Regulation (EU) No 1308/2013 should be aligned with the definitions in the Agreement on Trade-Related Aspects of Intellectual Property Rights (‘TRIPS Agreement’), approved by Council Decision 94/800/EC (13), in particular with Article 22(1) of the TRIPS Agreement, in that geographical indications identify the product as originating in a specific place, region or country. In the interest of clarity, it is appropriate to lay down explicitly that the revised definition of a designation of origin includes traditionally used names. As a result, the list of the requirements for a traditionally used name to constitute a designation of origin in the wine sector set out in Regulation (EU) No 1308/2013 will become obsolete and should be deleted. For reasons of consistency, such a clarification should also be introduced in the definition of ‘geographical indication’ for the wine sector laid down in Regulation (EU) No 1308/2013 and in the definitions of ‘designation of origin’ and ‘geographical indications’ for the food sector laid down in Regulation (EU) No 1151/2012 of the European Parliament and of the Council (14).

| (30) | The geographical environment, with its natural and human factors, is a crucial element that affects the quality and characteristics of grapevine products, agricultural products and foodstuffs that benefit from protected designations of origin or geographical indications pursuant to Regulations (EU) No 1308/2013 and (EU) No 1151/2012. In particular, where fresh products that undergo little or no processing are concerned, natural factors may be predominant in determining the quality and characteristics of the product concerned, while the contribution of human factors to the quality and characteristics of the product may be less specific. Therefore, the human factors that should be taken into account in the description of the link between the quality or characteristics of a product and a particular geographical environment that is to be included in the product specification of protected designations of origin pursuant to Article 94 of Regulation (EU) No 1308/2013 and Article 7 of Regulation (EU) No 1151/2012 should not be limited to specific methods of production or processing that confer a specific quality to the product concerned, but may include factors such as soil and landscape management, cultivation practices, and any other human activities that contribute to the maintenance of the essential natural factors that predominantly determine the geographical environment and the quality and characteristics of the product concerned. |
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(30)

The geographical environment, with its natural and human factors, is a crucial element that affects the quality and characteristics of grapevine products, agricultural products and foodstuffs that benefit from protected designations of origin or geographical indications pursuant to Regulations (EU) No 1308/2013 and (EU) No 1151/2012. In particular, where fresh products that undergo little or no processing are concerned, natural factors may be predominant in determining the quality and characteristics of the product concerned, while the contribution of human factors to the quality and characteristics of the product may be less specific. Therefore, the human factors that should be taken into account in the description of the link between the quality or characteristics of a product and a particular geographical environment that is to be included in the product specification of protected designations of origin pursuant to Article 94 of Regulation (EU) No 1308/2013 and Article 7 of Regulation (EU) No 1151/2012 should not be limited to specific methods of production or processing that confer a specific quality to the product concerned, but may include factors such as soil and landscape management, cultivation practices, and any other human activities that contribute to the maintenance of the essential natural factors that predominantly determine the geographical environment and the quality and characteristics of the product concerned.

| (31) | To ensure coherent decision-making as regards applications for protection and objection submitted in the preliminary national procedure referred to in Article 96 of Regulation (EU) No 1308/2013 and in Article 49 of Regulation (EU) No 1151/2012, the Commission should be informed in a timely and regular manner when procedures are launched before national courts or other bodies concerning an application for protection forwarded by the Member State to the Commission, as referred to in Article 96(5) of Regulation (EU) No 1308/2013 and Article 49(4) of Regulation (EU) No 1151/2012. For the same reason, where a Member State communicates to the Commission a national decision on which the application for protection is based that is likely to be invalidated at the end of a national judicial proceeding, the Commission should be exempted from the obligation to carry out the scrutiny procedure set out in Article 97 of Regulation (EU) No 1308/2013 and Article 50 of Regulation (EU) No 1151/2012 with respect to an application for protection within the prescribed deadline and from the obligation to inform the applicant of the reasons for the delay. In order to protect the applicant from vexatious legal actions and to preserve the applicant’s fundamental right to secure the protection of a geographical indication within a reasonable time, the exemption should be limited to cases in which the application for protection has been invalidated at national level by an immediately applicable but not final judicial decision or in which the Member States consider that the action to challenge the validity of the application is based on valid grounds. |
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(31)

To ensure coherent decision-making as regards applications for protection and objection submitted in the preliminary national procedure referred to in Article 96 of Regulation (EU) No 1308/2013 and in Article 49 of Regulation (EU) No 1151/2012, the Commission should be informed in a timely and regular manner when procedures are launched before national courts or other bodies concerning an application for protection forwarded by the Member State to the Commission, as referred to in Article 96(5) of Regulation (EU) No 1308/2013 and Article 49(4) of Regulation (EU) No 1151/2012. For the same reason, where a Member State communicates to the Commission a national decision on which the application for protection is based that is likely to be invalidated at the end of a national judicial proceeding, the Commission should be exempted from the obligation to carry out the scrutiny procedure set out in Article 97 of Regulation (EU) No 1308/2013 and Article 50 of Regulation (EU) No 1151/2012 with respect to an application for protection within the prescribed deadline and from the obligation to inform the applicant of the reasons for the delay. In order to protect the applicant from vexatious legal actions and to preserve the applicant’s fundamental right to secure the protection of a geographical indication within a reasonable time, the exemption should be limited to cases in which the application for protection has been invalidated at national level by an immediately applicable but not final judicial decision or in which the Member States consider that the action to challenge the validity of the application is based on valid grounds.

| (32) | The registration of geographical indications should be made simpler and faster by separating the assessment of compliance with intellectual property rules from the assessment of the compliance of the product specifications with the requirements laid down in the marketing standards and labelling rules. |
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(32)

The registration of geographical indications should be made simpler and faster by separating the assessment of compliance with intellectual property rules from the assessment of the compliance of the product specifications with the requirements laid down in the marketing standards and labelling rules.

| (33) | The assessment carried out by the competent authorities of Member States is an essential step in the registration procedure. Member States have knowledge, expertise and access to data that make them the best placed to verify whether the information provided in the application is correct and truthful. Therefore, Member States should ensure that the result of that assessment, which is to be faithfully recorded in a single document summarising the relevant elements of the product specification, is reliable and accurate. Having regard to the principle of subsidiarity, the Commission should subsequently examine applications to ensure that there are no manifest errors, in order to ensure, in particular, that they contain the required information, that they are free of obvious substantive errors, that the reasoning presented supports the application, and that Union law and the interests of stakeholders outside the Member State of application and outside the Union are taken into account. |
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(33)

The assessment carried out by the competent authorities of Member States is an essential step in the registration procedure. Member States have knowledge, expertise and access to data that make them the best placed to verify whether the information provided in the application is correct and truthful. Therefore, Member States should ensure that the result of that assessment, which is to be faithfully recorded in a single document summarising the relevant elements of the product specification, is reliable and accurate. Having regard to the principle of subsidiarity, the Commission should subsequently examine applications to ensure that there are no manifest errors, in order to ensure, in particular, that they contain the required information, that they are free of obvious substantive errors, that the reasoning presented supports the application, and that Union law and the interests of stakeholders outside the Member State of application and outside the Union are taken into account.

| (34) | In the wine sector, the period during which an objection can be made should be extended to three months to ensure that all interested parties have sufficient time to analyse the application for protection and the possibility to submit a statement of objection. To ensure that the same procedure for objections is applied under Regulations (EU) No 1308/2013 and (EU) No 1151/2012 and to enable Member States to forward objections from natural or legal persons residing or established in their territory to the Commission in a coordinated and efficient manner, objections from natural or legal persons should be submitted via the authorities of the Member State in which they reside or are established. To simplify the objection procedure, the Commission should be empowered to reject inadmissible statements of objection in the implementing act that confers protection on the designation of origin or geographical indication concerned. |
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(34)

In the wine sector, the period during which an objection can be made should be extended to three months to ensure that all interested parties have sufficient time to analyse the application for protection and the possibility to submit a statement of objection. To ensure that the same procedure for objections is applied under Regulations (EU) No 1308/2013 and (EU) No 1151/2012 and to enable Member States to forward objections from natural or legal persons residing or established in their territory to the Commission in a coordinated and efficient manner, objections from natural or legal persons should be submitted via the authorities of the Member State in which they reside or are established. To simplify the objection procedure, the Commission should be empowered to reject inadmissible statements of objection in the implementing act that confers protection on the designation of origin or geographical indication concerned.

| (35) | In order to increase procedural efficiency and ensure uniform conditions for the conferral of protection on designations of origin or geographical indications, implementing powers should be conferred on the Commission to adopt implementing acts conferring such protection in the wine sector without recourse to the examination procedure, in circumstances where no admissible statement of objections to the application for protection has been submitted. For cases where an admissible statement of objection has been submitted, implementing powers should be conferred on the Commission to adopt implementing acts either conferring protection or rejecting the application for protection, in accordance with the examination procedure. |
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(35)

In order to increase procedural efficiency and ensure uniform conditions for the conferral of protection on designations of origin or geographical indications, implementing powers should be conferred on the Commission to adopt implementing acts conferring such protection in the wine sector without recourse to the examination procedure, in circumstances where no admissible statement of objections to the application for protection has been submitted. For cases where an admissible statement of objection has been submitted, implementing powers should be conferred on the Commission to adopt implementing acts either conferring protection or rejecting the application for protection, in accordance with the examination procedure.

| (36) | The relationship between trade marks and geographical indications of grapevine products should be clarified in relation to criteria for refusal, invalidation and coexistence. Such clarification should not affect rights acquired by holders of geographical indications at national level or that exist by virtue of international agreements concluded by Member States for the period before the establishment of the Union protection system for grapevine products. |
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(36)

The relationship between trade marks and geographical indications of grapevine products should be clarified in relation to criteria for refusal, invalidation and coexistence. Such clarification should not affect rights acquired by holders of geographical indications at national level or that exist by virtue of international agreements concluded by Member States for the period before the establishment of the Union protection system for grapevine products.

| (37) | Rules concerning national procedures, the objection procedure, the classification of the amendments into Union amendments and standard amendments, including the main rules for the adoption of such amendments, and temporary labelling and presentation currently laid down in Commission Delegated Regulation (EU) 2019/33 (15) are an important element of the scheme for the protection of designations of origin and geographical indications in the wine sector. For reasons of consistency with Regulation (EU) No 1151/2012 and Regulation (EU) 2019/787 of the European Parliament and of the Council (16) and for ease of application, those provisions should be integrated into Regulation (EU) No 1308/2013. |
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(37)

Rules concerning national procedures, the objection procedure, the classification of the amendments into Union amendments and standard amendments, including the main rules for the adoption of such amendments, and temporary labelling and presentation currently laid down in Commission Delegated Regulation (EU) 2019/33 (15) are an important element of the scheme for the protection of designations of origin and geographical indications in the wine sector. For reasons of consistency with Regulation (EU) No 1151/2012 and Regulation (EU) 2019/787 of the European Parliament and of the Council (16) and for ease of application, those provisions should be integrated into Regulation (EU) No 1308/2013.

| (38) | Concerning the protection of geographical indications, it is important to have due regard for the General Agreement on Tariffs and Trade including Article V thereof on freedom of transit, which was approved by Decision 94/800/EC. Within that legal framework, in order to strengthen geographical indication protection and to combat counterfeiting more effectively, the protection of designations of origin and geographical indications should also apply with regard to goods that enter the customs territory of the Union without being released for free circulation and that are placed under customs special procedures such as procedures for transit, storage, specific use or processing. Therefore, the protection conferred by Article 103(2) of Regulation (EU) No 1308/2013 and Article 13(1) of Regulation (EU) No 1151/2012 should be extended to cover goods which are in transit across the Union customs territory, and the protection conferred by Article 103(2) of Regulation (EU) No 1308/2013 and Article 13(1) and Article 24 of Regulation (EU) No 1151/2012 to designations of origin, geographical indications and traditional specialities guaranteed should be extended to cover goods which are sold over the internet or by other means of electronic commerce. In addition, designations of origin and geographical indications in the wine sector should also be protected against any direct or indirect commercial use where they refer to products used as ingredients. Designations of origin and geographical indications in the wine sector and traditional specialities guaranteed should also be protected against misuse, imitation and evocation where they are used to refer to products used as ingredients. |
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(38)

Concerning the protection of geographical indications, it is important to have due regard for the General Agreement on Tariffs and Trade including Article V thereof on freedom of transit, which was approved by Decision 94/800/EC. Within that legal framework, in order to strengthen geographical indication protection and to combat counterfeiting more effectively, the protection of designations of origin and geographical indications should also apply with regard to goods that enter the customs territory of the Union without being released for free circulation and that are placed under customs special procedures such as procedures for transit, storage, specific use or processing. Therefore, the protection conferred by Article 103(2) of Regulation (EU) No 1308/2013 and Article 13(1) of Regulation (EU) No 1151/2012 should be extended to cover goods which are in transit across the Union customs territory, and the protection conferred by Article 103(2) of Regulation (EU) No 1308/2013 and Article 13(1) and Article 24 of Regulation (EU) No 1151/2012 to designations of origin, geographical indications and traditional specialities guaranteed should be extended to cover goods which are sold over the internet or by other means of electronic commerce. In addition, designations of origin and geographical indications in the wine sector should also be protected against any direct or indirect commercial use where they refer to products used as ingredients. Designations of origin and geographical indications in the wine sector and traditional specialities guaranteed should also be protected against misuse, imitation and evocation where they are used to refer to products used as ingredients.

| (39) | It should be possible to cancel the protection of a designation of origin or geographical indication in circumstances where it is no longer in use or where the applicant referred to in Article 95 of Regulation (EU) No 1308/2013 no longer wishes to maintain that protection. |
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(39)

It should be possible to cancel the protection of a designation of origin or geographical indication in circumstances where it is no longer in use or where the applicant referred to in Article 95 of Regulation (EU) No 1308/2013 no longer wishes to maintain that protection.

| (40) | In view of the ever increasing consumer demand for innovative grapevine products that have a lower actual alcoholic strength than the minimum actual alcoholic strength set out for grapevine products in Annex VII, Part II, to Regulation (EU) No 1308/2013, it should also be possible to produce such innovative grapevine products in the Union. To that end, it is necessary to lay down the conditions under which certain grapevine products may be de-alcoholised or partially de-alcoholised and to establish the processes for de-alcoholisation that are authorised. Those conditions should take into account the Resolutions of the International Organisation of Vine and Wine (OIV), OIV-ECO 432-2012 Beverage Obtained By Dealcoholisation of Wine, OIV-ECO 433-2012 Beverage Obtained By Partial Dealcoholisation of Wine and OIV-ECO 523-2016 Wine With An Alcohol Content Modified by Dealcoholisation and OIV-OENO 394A-2012 Dealcoholisation Of Wines. |
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(40)

In view of the ever increasing consumer demand for innovative grapevine products that have a lower actual alcoholic strength than the minimum actual alcoholic strength set out for grapevine products in Annex VII, Part II, to Regulation (EU) No 1308/2013, it should also be possible to produce such innovative grapevine products in the Union. To that end, it is necessary to lay down the conditions under which certain grapevine products may be de-alcoholised or partially de-alcoholised and to establish the processes for de-alcoholisation that are authorised. Those conditions should take into account the Resolutions of the International Organisation of Vine and Wine (OIV), OIV-ECO 432-2012 Beverage Obtained By Dealcoholisation of Wine, OIV-ECO 433-2012 Beverage Obtained By Partial Dealcoholisation of Wine and OIV-ECO 523-2016 Wine With An Alcohol Content Modified by Dealcoholisation and OIV-OENO 394A-2012 Dealcoholisation Of Wines.

| (41) | Those innovative grapevine products have never been marketed in the Union as wine. For that reason, further research and experimentation would be necessary to improve the quality of those products and, in particular, to ensure that the total removal of the alcohol content allows the preservation of the differentiating characteristics of quality wines that are protected by a geographical indication or a designation of origin. Therefore, although both partial and total de-alcoholisation should be authorised for wines without a geographical indication or a designation of origin, only partial de-alcoholisation should be authorised for wines with a protected geographical indication or protected designation of origin. In addition, to ensure clarity and transparency for both producers and consumers of wines with a geographical indication or a designation of origin, it is appropriate to provide that, where wines with a geographical indication or a designation of origin may be partially de-alcoholised, their product specification should contain a description of the partially de-alcoholised wine and, where applicable, the specific oenological practices to be used to make the partially de-alcoholised wine or wines, as well as the relevant restrictions on making them. |
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(41)

Those innovative grapevine products have never been marketed in the Union as wine. For that reason, further research and experimentation would be necessary to improve the quality of those products and, in particular, to ensure that the total removal of the alcohol content allows the preservation of the differentiating characteristics of quality wines that are protected by a geographical indication or a designation of origin. Therefore, although both partial and total de-alcoholisation should be authorised for wines without a geographical indication or a designation of origin, only partial de-alcoholisation should be authorised for wines with a protected geographical indication or protected designation of origin. In addition, to ensure clarity and transparency for both producers and consumers of wines with a geographical indication or a designation of origin, it is appropriate to provide that, where wines with a geographical indication or a designation of origin may be partially de-alcoholised, their product specification should contain a description of the partially de-alcoholised wine and, where applicable, the specific oenological practices to be used to make the partially de-alcoholised wine or wines, as well as the relevant restrictions on making them.

| (42) | In order to provide a higher level of information to consumers, the compulsory particulars under Article 119 of Regulation (EU) No 1308/2013 should include a nutrition declaration and a list of ingredients. However, producers should have the option of limiting the contents of the nutrition declaration on the package or on a label attached thereto to only the energy value and of making the full nutrition declaration and the list of ingredients available by electronic means, provided that they avoid any collection or tracking of user data and do not provide information aimed at marketing purposes. However, the option of not providing a full nutritional declaration on the package or on a label attached thereto should not affect the existing requirement that the label list substances causing allergies or intolerances. In Article 122 of Regulation (EU) No 1308/2013, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of supplementing Regulation (EU) No 1308/2013 by laying down rules for the indication and designation of ingredients. The marketing of existing stocks of wine should be allowed to continue after the dates of application of the new labelling requirements until those stocks are exhausted. Operators should be allowed sufficient time to adjust to the new labelling requirements before they become applicable. |
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(42)

In order to provide a higher level of information to consumers, the compulsory particulars under Article 119 of Regulation (EU) No 1308/2013 should include a nutrition declaration and a list of ingredients. However, producers should have the option of limiting the contents of the nutrition declaration on the package or on a label attached thereto to only the energy value and of making the full nutrition declaration and the list of ingredients available by electronic means, provided that they avoid any collection or tracking of user data and do not provide information aimed at marketing purposes. However, the option of not providing a full nutritional declaration on the package or on a label attached thereto should not affect the existing requirement that the label list substances causing allergies or intolerances. In Article 122 of Regulation (EU) No 1308/2013, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of supplementing Regulation (EU) No 1308/2013 by laying down rules for the indication and designation of ingredients. The marketing of existing stocks of wine should be allowed to continue after the dates of application of the new labelling requirements until those stocks are exhausted. Operators should be allowed sufficient time to adjust to the new labelling requirements before they become applicable.

| (43) | In order to ensure that consumers are informed of the nature of de-alcoholised wine products and that the rules governing labelling and presentation of products in the wine sector also apply to de-alcoholised or partially de-alcoholised grapevine products, Article 119 of Regulation (EU) No 1308/2013 should be amended. However, in order to maintain the current level of information on minimum durability required for beverages containing less than 10 % by volume of alcohol under Regulation (EU) No 1169/2011 of the European Parliament and of the Council (17), it is appropriate to require products which have undergone a de-alcoholisation treatment with an actual alcoholic strength by volume of less than 10 % to include, as compulsory particulars, an indication of the date of minimum durability. |
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(43)

In order to ensure that consumers are informed of the nature of de-alcoholised wine products and that the rules governing labelling and presentation of products in the wine sector also apply to de-alcoholised or partially de-alcoholised grapevine products, Article 119 of Regulation (EU) No 1308/2013 should be amended. However, in order to maintain the current level of information on minimum durability required for beverages containing less than 10 % by volume of alcohol under Regulation (EU) No 1169/2011 of the European Parliament and of the Council (17), it is appropriate to require products which have undergone a de-alcoholisation treatment with an actual alcoholic strength by volume of less than 10 % to include, as compulsory particulars, an indication of the date of minimum durability.

| (44) | In addition, Annex I, Part XII, to Regulation (EU) No 1308/2013, which lists the products covered under the wine sector, currently covers partially de-alcoholised wines with an alcohol content by volume above 0,5 %. In order to ensure that all de-alcoholised wines, including those with an alcohol content by volume of 0,5 % or less, are covered in the wine sector, it is appropriate to amend Annex I, Part XII, to Regulation (EU) No 1308/2013 by adding a new entry. |
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(44)

In addition, Annex I, Part XII, to Regulation (EU) No 1308/2013, which lists the products covered under the wine sector, currently covers partially de-alcoholised wines with an alcohol content by volume above 0,5 %. In order to ensure that all de-alcoholised wines, including those with an alcohol content by volume of 0,5 % or less, are covered in the wine sector, it is appropriate to amend Annex I, Part XII, to Regulation (EU) No 1308/2013 by adding a new entry.

| (45) | As regards rules concerning the conditions on the use of closures in the wine sector in order to ensure that consumers are protected from the misleading use of certain closures associated with certain beverages and from hazardous closure materials that may contaminate the beverages, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. |
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(45)

As regards rules concerning the conditions on the use of closures in the wine sector in order to ensure that consumers are protected from the misleading use of certain closures associated with certain beverages and from hazardous closure materials that may contaminate the beverages, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

| (46) | Rules and requirements relating to the system of sugar quotas expired at the end of the 2016/2017 marketing year. Article 124 and Articles 127 to 144 of Regulation (EU) No 1308/2013 are now obsolete and should be deleted. |
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(46)

Rules and requirements relating to the system of sugar quotas expired at the end of the 2016/2017 marketing year. Article 124 and Articles 127 to 144 of Regulation (EU) No 1308/2013 are now obsolete and should be deleted.

| (47) | Directive (EU) 2019/633 of the European Parliament and of the Council (18) lays down an exception from the maximum payment deadline for the sale of grapes and must in the wine sector. In order to contribute to the stability of the wine supply chain and to provide agricultural producers with the security of longstanding sales relationships, sales of wine in bulk should be treated in the same manner. It is therefore appropriate to provide that, by way of derogation from the applicable maximum payment deadlines laid down in Directive (EU) 2019/633, if requested by an interbranch organisation, Member States may decide that the applicable maximum payment deadlines do not apply to the sales of wine in bulk, provided that the specific payment deadline terms are included in standard contracts which have been extended by Member States under Article 164 of Regulation (EU) No 1308/2013 before 31 October 2021 and that the supply agreements between suppliers of wine in bulk and their direct buyers are multiannual or become multiannual. |
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(47)

Directive (EU) 2019/633 of the European Parliament and of the Council (18) lays down an exception from the maximum payment deadline for the sale of grapes and must in the wine sector. In order to contribute to the stability of the wine supply chain and to provide agricultural producers with the security of longstanding sales relationships, sales of wine in bulk should be treated in the same manner. It is therefore appropriate to provide that, by way of derogation from the applicable maximum payment deadlines laid down in Directive (EU) 2019/633, if requested by an interbranch organisation, Member States may decide that the applicable maximum payment deadlines do not apply to the sales of wine in bulk, provided that the specific payment deadline terms are included in standard contracts which have been extended by Member States under Article 164 of Regulation (EU) No 1308/2013 before 31 October 2021 and that the supply agreements between suppliers of wine in bulk and their direct buyers are multiannual or become multiannual.

| (48) | Where the delivery of agricultural products by a producer to a processor or distributor is covered by a written contract or offer pursuant to Articles 148 and 168 of Regulation (EU) No 1308/2013, and the price payable for the delivery is calculated by combining various factors set out in the contract, those factors, which may include objective indicators, indices and methods of calculation, should be easily understandable by the parties. Furthermore, Member States should be able to specify optional indicators that may be used by the parties to the contracts, on the basis of available objective market information and studies. |
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(48)

Where the delivery of agricultural products by a producer to a processor or distributor is covered by a written contract or offer pursuant to Articles 148 and 168 of Regulation (EU) No 1308/2013, and the price payable for the delivery is calculated by combining various factors set out in the contract, those factors, which may include objective indicators, indices and methods of calculation, should be easily understandable by the parties. Furthermore, Member States should be able to specify optional indicators that may be used by the parties to the contracts, on the basis of available objective market information and studies.

| (49) | Following the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the Union, the total amount of raw milk production in the Union has decreased. In order not to undermine the powers to conduct contractual negotiations granted to producer organisations in the milk and milk products sector, the applicable quantitative limit on the volume of raw milk covered by such negotiations, expressed as a percentage of the total Union production, should be increased. It is appropriate for reasons of legal certainty to provide for the application of the increased quantitative limit with retroactive effect from 1 January 2021. |
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(49)

Following the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the Union, the total amount of raw milk production in the Union has decreased. In order not to undermine the powers to conduct contractual negotiations granted to producer organisations in the milk and milk products sector, the applicable quantitative limit on the volume of raw milk covered by such negotiations, expressed as a percentage of the total Union production, should be increased. It is appropriate for reasons of legal certainty to provide for the application of the increased quantitative limit with retroactive effect from 1 January 2021.

| (50) | To help achieve the environmental objectives of the Union, Member States should be able to recognise producer organisations that pursue specific aims relating to the management and valorisation of by-products, residual flows and waste, in particular to protect the environment and boost circularity, as well as producer organisations that pursue aims relating to the management of mutual funds for any sector. It is therefore appropriate to extend the existing list of objectives of producer organisations set out in Article 152 of Regulation (EU) No 1308/2013. To increase the transparency of producer organisations, the statutes of producer organisations should also enable producer members to scrutinise democratically the accounts and budgets of the organisation. Moreover, for the ease of commercial transactions engaged in by the producer organisation, it is appropriate to lay down that the statutes of a producer organisation may allow producer members to be in direct contact with purchasers, provided that such direct contact does not jeopardise the producer organisation’s function of concentrating supply and placing products on the market and provided that the producer organisation continues to have sole discretion over the essential elements of sales effected by the producer organisation. |
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(50)

To help achieve the environmental objectives of the Union, Member States should be able to recognise producer organisations that pursue specific aims relating to the management and valorisation of by-products, residual flows and waste, in particular to protect the environment and boost circularity, as well as producer organisations that pursue aims relating to the management of mutual funds for any sector. It is therefore appropriate to extend the existing list of objectives of producer organisations set out in Article 152 of Regulation (EU) No 1308/2013. To increase the transparency of producer organisations, the statutes of producer organisations should also enable producer members to scrutinise democratically the accounts and budgets of the organisation. Moreover, for the ease of commercial transactions engaged in by the producer organisation, it is appropriate to lay down that the statutes of a producer organisation may allow producer members to be in direct contact with purchasers, provided that such direct contact does not jeopardise the producer organisation’s function of concentrating supply and placing products on the market and provided that the producer organisation continues to have sole discretion over the essential elements of sales effected by the producer organisation.

| (51) | In light of the experience gained and the evolution of the milk and milk products sector since the end of the quota system, it is no longer appropriate to maintain specific rules related to the objectives and the recognition arrangements provided for with respect to interbranch organisations in the sector of milk and milk products. |
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(51)

In light of the experience gained and the evolution of the milk and milk products sector since the end of the quota system, it is no longer appropriate to maintain specific rules related to the objectives and the recognition arrangements provided for with respect to interbranch organisations in the sector of milk and milk products.

| (52) | The experience in different sectors shows that Member States may recognise interbranch organisations at different geographical levels without undermining the role and the aims of such organisations. Therefore, it is pertinent to clarify that Member States may opt for the recognition of such interbranch organisations at one or more geographical levels. Interbranch organisations are to pursue a specific aim taking account of the interests of their members and of consumers. In light of the environmental objectives of the Union, it is appropriate to extend the list of objectives set out in Article 157 of Regulation (EU) No 1308/2013 to include providing the necessary information and carrying out the necessary research to develop products that are more suited to climate action and to the protection of animal health and animal welfare, contributing to the valorisation of by-products and the reduction and management of waste, and promoting and implementing measures to prevent, control and manage animal health, plant-protection and environmental risks, including by setting up and managing funds or by contributing to such funds with a view to paying financial compensation to farmers for the costs and economic losses arising from the promotion and implementation of such measures. To avoid the risk of organisations at a certain stage of the food supply chain concentrating more power, Member States should recognise only interbranch organisations that strive for a balanced representation of the organisations in various stages of the food supply chain that constitute the interbranch organisation. |
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(52)

The experience in different sectors shows that Member States may recognise interbranch organisations at different geographical levels without undermining the role and the aims of such organisations. Therefore, it is pertinent to clarify that Member States may opt for the recognition of such interbranch organisations at one or more geographical levels. Interbranch organisations are to pursue a specific aim taking account of the interests of their members and of consumers. In light of the environmental objectives of the Union, it is appropriate to extend the list of objectives set out in Article 157 of Regulation (EU) No 1308/2013 to include providing the necessary information and carrying out the necessary research to develop products that are more suited to climate action and to the protection of animal health and animal welfare, contributing to the valorisation of by-products and the reduction and management of waste, and promoting and implementing measures to prevent, control and manage animal health, plant-protection and environmental risks, including by setting up and managing funds or by contributing to such funds with a view to paying financial compensation to farmers for the costs and economic losses arising from the promotion and implementation of such measures. To avoid the risk of organisations at a certain stage of the food supply chain concentrating more power, Member States should recognise only interbranch organisations that strive for a balanced representation of the organisations in various stages of the food supply chain that constitute the interbranch organisation.

| (53) | The definition of ‘economic area’ laid down in Article 164 of Regulation (EU) No 1308/2013 for the purpose of the extension of rules and compulsory contributions should be complemented to adapt that Regulation to the production specificities of products with a protected designation of origin or protected geographical indication recognised under Union law. In order to foster sustainable practices, it should be possible to make agreements, decisions and concerted practices of interbranch organisations related to plant health, animal health, food safety and environmental risks binding on non-members. However, because of the importance of biodiversity in the seed material used in organic farming, rules related to the use of certified seeds should not be made binding by extension on non-members practising organic farming. |
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(53)

The definition of ‘economic area’ laid down in Article 164 of Regulation (EU) No 1308/2013 for the purpose of the extension of rules and compulsory contributions should be complemented to adapt that Regulation to the production specificities of products with a protected designation of origin or protected geographical indication recognised under Union law. In order to foster sustainable practices, it should be possible to make agreements, decisions and concerted practices of interbranch organisations related to plant health, animal health, food safety and environmental risks binding on non-members. However, because of the importance of biodiversity in the seed material used in organic farming, rules related to the use of certified seeds should not be made binding by extension on non-members practising organic farming.

| (54) | In view of the importance of protected designations of origin and protected geographical indications for agricultural production in the Union, and in view of the success of the introduction of supply management rules for cheeses and dry-cured hams under geographical indications in ensuring the added value and maintaining the reputation of those products and stabilising their prices, the possibility of applying supply management rules should be extended to agricultural products with a protected designation of origin or geographical indication under Regulation (EU) No 1308/2013 or Regulation (EU) No 1151/2012. For clarity and consistency, it is appropriate to integrate the existing rules on the regulation of supply into one single provision covering all agricultural products. Member States should therefore be authorised to apply those rules to regulate the supply of agricultural products under geographical indications at the request of an interbranch organisation, producer organisation, or a group of producers or operators, provided that at least two-thirds of the producers of that product, or their representatives, agree, and, where applicable, the agricultural producers of the raw material concerned have been consulted, and, in the case of cheese, for reasons of continuity, have given their agreement. Those rules should be subject to strict conditions, in particular in order to avoid damage to trade in products in other markets and to protect minority rights. Member States should immediately publish and notify the adopted rules to the Commission, ensure regular checks and repeal the rules in cases of non-compliance. The Commission should be empowered to adopt implementing acts requiring that a Member State repeal such rules if the Commission finds that the rules do not comply with certain conditions, prevent or distort competition in a substantial part of the internal market or jeopardise free trade or the attainment of the objectives of Article 39 TFEU. In light of the Commission’s powers in the field of Union competition policy, and given the special nature of those acts, the Commission should adopt such implementing acts without applying Regulation (EU) No 182/2011. |
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(54)

In view of the importance of protected designations of origin and protected geographical indications for agricultural production in the Union, and in view of the success of the introduction of supply management rules for cheeses and dry-cured hams under geographical indications in ensuring the added value and maintaining the reputation of those products and stabilising their prices, the possibility of applying supply management rules should be extended to agricultural products with a protected designation of origin or geographical indication under Regulation (EU) No 1308/2013 or Regulation (EU) No 1151/2012. For clarity and consistency, it is appropriate to integrate the existing rules on the regulation of supply into one single provision covering all agricultural products. Member States should therefore be authorised to apply those rules to regulate the supply of agricultural products under geographical indications at the request of an interbranch organisation, producer organisation, or a group of producers or operators, provided that at least two-thirds of the producers of that product, or their representatives, agree, and, where applicable, the agricultural producers of the raw material concerned have been consulted, and, in the case of cheese, for reasons of continuity, have given their agreement. Those rules should be subject to strict conditions, in particular in order to avoid damage to trade in products in other markets and to protect minority rights. Member States should immediately publish and notify the adopted rules to the Commission, ensure regular checks and repeal the rules in cases of non-compliance. The Commission should be empowered to adopt implementing acts requiring that a Member State repeal such rules if the Commission finds that the rules do not comply with certain conditions, prevent or distort competition in a substantial part of the internal market or jeopardise free trade or the attainment of the objectives of Article 39 TFEU. In light of the Commission’s powers in the field of Union competition policy, and given the special nature of those acts, the Commission should adopt such implementing acts without applying Regulation (EU) No 182/2011.

| (55) | Value-sharing clauses in the food supply chain are of interest not only in agreements between producers and first buyers but also where they can enable farmers to participate in price developments in the more downstream stages of the chain. It should therefore be made possible for farmers and their associations to agree on such clauses with actors who are downstream of the first buyers. |
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(55)

Value-sharing clauses in the food supply chain are of interest not only in agreements between producers and first buyers but also where they can enable farmers to participate in price developments in the more downstream stages of the chain. It should therefore be made possible for farmers and their associations to agree on such clauses with actors who are downstream of the first buyers.

| (56) | The special commercial value of wines covered by a protected designation of origin (PDO) or protected geographical indication (PGI) derives from their belonging to a premium segment of the market thanks to their reputation for quality that derives from their product specifications. Such wines tend to fetch higher prices in the market as consumers value the characteristics to which the designation of origin and geographical indication attests. To prevent those quality credentials from being undercut by detrimental price action, interbranch organisations representing the operators benefiting from those quality credentials should be able to issue price guidance concerning the sales of the relevant grapes by way of derogation from Article 101(1) TFEU. However, such guidance should be non-mandatory, in order to avoid eliminating intra-PDO/PGI price competition altogether. |
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(56)

The special commercial value of wines covered by a protected designation of origin (PDO) or protected geographical indication (PGI) derives from their belonging to a premium segment of the market thanks to their reputation for quality that derives from their product specifications. Such wines tend to fetch higher prices in the market as consumers value the characteristics to which the designation of origin and geographical indication attests. To prevent those quality credentials from being undercut by detrimental price action, interbranch organisations representing the operators benefiting from those quality credentials should be able to issue price guidance concerning the sales of the relevant grapes by way of derogation from Article 101(1) TFEU. However, such guidance should be non-mandatory, in order to avoid eliminating intra-PDO/PGI price competition altogether.

| (57) | Article 5 of the World Trade Organization (WTO) Agreement on Agriculture includes the calculation methods that may be used to fix the trigger volume for the special safeguard clause in the relevant sectors. In order to take into account all possible calculation methods for establishing the trigger volume for the purpose of the application of additional import duties, including where domestic consumption is not taken into account, Article 182(1) of Regulation (EU) No 1308/2013 should be amended to reflect the calculation method set out in Article 5(4) of the WTO Agreement on Agriculture. |
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(57)

Article 5 of the World Trade Organization (WTO) Agreement on Agriculture includes the calculation methods that may be used to fix the trigger volume for the special safeguard clause in the relevant sectors. In order to take into account all possible calculation methods for establishing the trigger volume for the purpose of the application of additional import duties, including where domestic consumption is not taken into account, Article 182(1) of Regulation (EU) No 1308/2013 should be amended to reflect the calculation method set out in Article 5(4) of the WTO Agreement on Agriculture.

| (58) | Articles 192 and 193 of Regulation (EU) No 1308/2013 should be deleted, as such measures are no longer necessary in view of the end of the production regulation in the sugar sector. In order to ensure that the Union market is adequately supplied by imports from third countries, delegated and implementing powers should be conferred on the Commission to suspend import duties for cane and beet molasses. |
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(58)

Articles 192 and 193 of Regulation (EU) No 1308/2013 should be deleted, as such measures are no longer necessary in view of the end of the production regulation in the sugar sector. In order to ensure that the Union market is adequately supplied by imports from third countries, delegated and implementing powers should be conferred on the Commission to suspend import duties for cane and beet molasses.

| (59) | The Ministerial Decision of 19 December 2015 on Export Competition of the 10th WTO Ministerial Conference in Nairobi sets down rules on export competition measures. As regards export subsidies, WTO members are required to eliminate their export subsidy entitlements as of the date of that Decision. Therefore, Union provisions on export refunds set out in Articles 196 to 204 of Regulation (EU) No 1308/2013 should be deleted. In respect of export credits, export credit guarantees and insurance programmes, agricultural exporting state trading enterprises and international food aid, Member States may adopt national measures respecting Union law. Since the Union and its Member States are WTO members, such national measures should also comply with the rules laid down in that WTO Ministerial Decision of 19 December 2015 as a matter of Union law and international law. |
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(59)

The Ministerial Decision of 19 December 2015 on Export Competition of the 10th WTO Ministerial Conference in Nairobi sets down rules on export competition measures. As regards export subsidies, WTO members are required to eliminate their export subsidy entitlements as of the date of that Decision. Therefore, Union provisions on export refunds set out in Articles 196 to 204 of Regulation (EU) No 1308/2013 should be deleted. In respect of export credits, export credit guarantees and insurance programmes, agricultural exporting state trading enterprises and international food aid, Member States may adopt national measures respecting Union law. Since the Union and its Member States are WTO members, such national measures should also comply with the rules laid down in that WTO Ministerial Decision of 19 December 2015 as a matter of Union law and international law.

| (60) | The internal market relies on the consistent application of competition rules in all Member States. This requires the continued close cooperation of national competition authorities and the Commission in the European network of competition authorities, where questions of interpretation and application of competition rules can be discussed and actions to apply competition rules can be coordinated, in accordance with Council Regulation (EC) No 1/2003 (19). |
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(60)

The internal market relies on the consistent application of competition rules in all Member States. This requires the continued close cooperation of national competition authorities and the Commission in the European network of competition authorities, where questions of interpretation and application of competition rules can be discussed and actions to apply competition rules can be coordinated, in accordance with Council Regulation (EC) No 1/2003 (19).

| (61) | In order to ensure the effective use of Article 210 of Regulation (EU) No 1308/2013 by interbranch organisations, as well as for the sake of simplification and reducing administrative burdens, agreements, decisions and concerted practices of interbranch organisations should not require a prior Commission decision to the effect that they are not subject to the application of Article 101(1) TFEU, provided that those agreements, decisions and concerted practices meet the requirements laid down in Article 210 of Regulation (EU) No 1308/2013. However, at the request of the applicant, the Commission should give an opinion concerning the compatibility of such agreements, decisions and concerted practices with Article 210 of Regulation (EU) No 1308/2013. Notwithstanding a Commission opinion issued to the effect that such agreements, decisions and concerted practices are compatible with that Article, the Commission should retain the possibility of declaring at any time after issuing such an opinion that Article 101(1) TFEU will apply in the future to the agreements, decisions or concerted practices in question, if it finds that the relevant conditions for the application of Article 210 of Regulation (EU) No 1308/2013 are no longer met. |
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(61)

In order to ensure the effective use of Article 210 of Regulation (EU) No 1308/2013 by interbranch organisations, as well as for the sake of simplification and reducing administrative burdens, agreements, decisions and concerted practices of interbranch organisations should not require a prior Commission decision to the effect that they are not subject to the application of Article 101(1) TFEU, provided that those agreements, decisions and concerted practices meet the requirements laid down in Article 210 of Regulation (EU) No 1308/2013. However, at the request of the applicant, the Commission should give an opinion concerning the compatibility of such agreements, decisions and concerted practices with Article 210 of Regulation (EU) No 1308/2013. Notwithstanding a Commission opinion issued to the effect that such agreements, decisions and concerted practices are compatible with that Article, the Commission should retain the possibility of declaring at any time after issuing such an opinion that Article 101(1) TFEU will apply in the future to the agreements, decisions or concerted practices in question, if it finds that the relevant conditions for the application of Article 210 of Regulation (EU) No 1308/2013 are no longer met.

| (62) | Certain vertical and horizontal initiatives concerning agricultural and food products, which aim to apply requirements that are more stringent than the mandatory requirements, can have positive effects on sustainability objectives. The conclusion of such agreements, decisions and concerted practices between producers and operators at different levels of the production, processing and trade could also strengthen the position of producers in the supply chain and increase their bargaining power. Therefore, under specific circumstances, such initiatives should not be subject to the application of Article 101(1) TFEU. In order to ensure the effective use of this new derogation, and in the interest of reducing administrative burdens, such initiatives should not require a prior Commission decision to the effect that they are not to be subject to the application of Article 101(1) TFEU. As this is a new derogation, it is appropriate to provide that the Commission should produce guidelines for operators concerning the application of the derogation within two years of the entry into force of this Regulation. After that date, producers should also be able to request an opinion from the Commission concerning the application of the derogation to their agreements, decisions and concerted practices. In justified cases, the Commission should be able to subsequently revise the content of its opinion. National competition authorities should be able to decide that an agreement, decision or concerted practice is to be modified, discontinued or not take place at all, if they consider it necessary to protect competition, in which case they should inform the Commission of their actions. |
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(62)

Certain vertical and horizontal initiatives concerning agricultural and food products, which aim to apply requirements that are more stringent than the mandatory requirements, can have positive effects on sustainability objectives. The conclusion of such agreements, decisions and concerted practices between producers and operators at different levels of the production, processing and trade could also strengthen the position of producers in the supply chain and increase their bargaining power. Therefore, under specific circumstances, such initiatives should not be subject to the application of Article 101(1) TFEU. In order to ensure the effective use of this new derogation, and in the interest of reducing administrative burdens, such initiatives should not require a prior Commission decision to the effect that they are not to be subject to the application of Article 101(1) TFEU. As this is a new derogation, it is appropriate to provide that the Commission should produce guidelines for operators concerning the application of the derogation within two years of the entry into force of this Regulation. After that date, producers should also be able to request an opinion from the Commission concerning the application of the derogation to their agreements, decisions and concerted practices. In justified cases, the Commission should be able to subsequently revise the content of its opinion. National competition authorities should be able to decide that an agreement, decision or concerted practice is to be modified, discontinued or not take place at all, if they consider it necessary to protect competition, in which case they should inform the Commission of their actions.

| (63) | Article 214a of Regulation (EU) No 1308/2013 allows Finland to grant, under certain conditions, national aid in Southern Finland until 2022, subject to the authorisation of the Commission. The granting of that national aid should continue to be allowed for the period 2023-2027. In order to ensure that this aid can continue to be granted during the transitional period of 2021 to 2022, the new arrangements in respect thereof should apply only from 1 January 2023. |
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(63)

Article 214a of Regulation (EU) No 1308/2013 allows Finland to grant, under certain conditions, national aid in Southern Finland until 2022, subject to the authorisation of the Commission. The granting of that national aid should continue to be allowed for the period 2023-2027. In order to ensure that this aid can continue to be granted during the transitional period of 2021 to 2022, the new arrangements in respect thereof should apply only from 1 January 2023.

| (64) | Restrictions on the free circulation of products in the fruit and vegetables sector resulting from the application of measures intended to combat the spread of plant pests can cause difficulties on the market in one or more Member States. Particularly in light of the increasing occurrence of plant pests, it is therefore appropriate to allow for exceptional support measures to take account of restrictions on trade as a result of plant pests and to extend the list of products in respect of which exceptional support measures may be adopted in the fruit and vegetables sector. |
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(64)

Restrictions on the free circulation of products in the fruit and vegetables sector resulting from the application of measures intended to combat the spread of plant pests can cause difficulties on the market in one or more Member States. Particularly in light of the increasing occurrence of plant pests, it is therefore appropriate to allow for exceptional support measures to take account of restrictions on trade as a result of plant pests and to extend the list of products in respect of which exceptional support measures may be adopted in the fruit and vegetables sector.

| (65) | The existing Union market observatories and working groups for agricultural markets have proved beneficial to informing the choices of economic operators and public authorities as well as to facilitating the monitoring of market developments. To that end, and in order to enhance the transparency of agricultural and food markets at Union level and to contribute to the stability of agricultural markets, those instruments should be strengthened. Therefore, it is appropriate to establish a single formal legal framework for the setting up and operation of Union market observatories in any agricultural sector and to lay down the relevant notification and reporting obligations for those observatories. |
| --- | --- |

(65)

The existing Union market observatories and working groups for agricultural markets have proved beneficial to informing the choices of economic operators and public authorities as well as to facilitating the monitoring of market developments. To that end, and in order to enhance the transparency of agricultural and food markets at Union level and to contribute to the stability of agricultural markets, those instruments should be strengthened. Therefore, it is appropriate to establish a single formal legal framework for the setting up and operation of Union market observatories in any agricultural sector and to lay down the relevant notification and reporting obligations for those observatories.

| (66) | On the basis of the statistical data and information collected for the monitoring of the agricultural markets, Union market observatories should identify threats of market disturbance in their reports. The Commission should regularly present to the European Parliament and to the Council information on the market situation of the agricultural products, the threats of market disturbance and possible measures to be taken, by means of regular participation in meetings of the Committee on Agriculture and Rural Development and the Special Committee on Agriculture. |
| --- | --- |

(66)

On the basis of the statistical data and information collected for the monitoring of the agricultural markets, Union market observatories should identify threats of market disturbance in their reports. The Commission should regularly present to the European Parliament and to the Council information on the market situation of the agricultural products, the threats of market disturbance and possible measures to be taken, by means of regular participation in meetings of the Committee on Agriculture and Rural Development and the Special Committee on Agriculture.

| (67) | For reasons of clarity, the role of the Commission in respect of its existing obligations to cooperate and exchange information with competent authorities designated in accordance with Article 22 of Regulation (EU) No 596/2014 of the European Parliament and of the Council (20) and the European Securities and Markets Authority (ESMA) should be explicitly laid down in Article 223 of Regulation (EU) No 1308/2013. |
| --- | --- |

(67)

For reasons of clarity, the role of the Commission in respect of its existing obligations to cooperate and exchange information with competent authorities designated in accordance with Article 22 of Regulation (EU) No 596/2014 of the European Parliament and of the Council (20) and the European Securities and Markets Authority (ESMA) should be explicitly laid down in Article 223 of Regulation (EU) No 1308/2013.

| (68) | Obsolete reporting obligations of the Commission regarding the milk and milk products market and the extension of the scope of the school scheme should be deleted. Reporting obligations concerning the apiculture sector should be integrated into Regulation (EU) 2021/2115. New reporting obligations and deadlines should be laid down regarding the application of competition rules to the agricultural sector, regarding the setting up of Union market observatories and regarding the use of exceptional measures. The Commission should also report on the situation of sales designations and carcass classification in the sheepmeat and goatmeat sector. |
| --- | --- |

(68)

Obsolete reporting obligations of the Commission regarding the milk and milk products market and the extension of the scope of the school scheme should be deleted. Reporting obligations concerning the apiculture sector should be integrated into Regulation (EU) 2021/2115. New reporting obligations and deadlines should be laid down regarding the application of competition rules to the agricultural sector, regarding the setting up of Union market observatories and regarding the use of exceptional measures. The Commission should also report on the situation of sales designations and carcass classification in the sheepmeat and goatmeat sector.

| (69) | Provisions concerning the reserve for crises in the agricultural sector laid down in Part V, Chapter III, of Regulation (EU) No 1308/2013 should be deleted, as updated provisions concerning the agricultural reserve are laid down in Regulation (EU) 2021/2116. |
| --- | --- |

(69)

Provisions concerning the reserve for crises in the agricultural sector laid down in Part V, Chapter III, of Regulation (EU) No 1308/2013 should be deleted, as updated provisions concerning the agricultural reserve are laid down in Regulation (EU) 2021/2116.

| (70) | In light of the existing derogation from the sales descriptions to be used for veal with a protected designation of origin or geographical indication registered before 29 June 2007, for consistency reasons and in order to provide for unambiguous information to consumers, Member States should be given the possibility of allowing groups responsible for protected designations of origin or geographical indications registered before the same date to derogate from compulsory carcass classification for veal. |
| --- | --- |

(70)

In light of the existing derogation from the sales descriptions to be used for veal with a protected designation of origin or geographical indication registered before 29 June 2007, for consistency reasons and in order to provide for unambiguous information to consumers, Member States should be given the possibility of allowing groups responsible for protected designations of origin or geographical indications registered before the same date to derogate from compulsory carcass classification for veal.

| (71) | Rules on assessing conflicts between a name applied for registration as designation of origin or geographical indication under Regulation (EU) No 1151/2012 and the name of a plant variety or animal breed produced in the Union should be laid down in order to reach a fairer balance between the interests at stake. |
| --- | --- |

(71)

Rules on assessing conflicts between a name applied for registration as designation of origin or geographical indication under Regulation (EU) No 1151/2012 and the name of a plant variety or animal breed produced in the Union should be laid down in order to reach a fairer balance between the interests at stake.

| (72) | To increase the awareness of consumers in respect of protected designations of origin, protected geographical indications and traditional specialities guaranteed under Regulation (EU) No 1151/2012, the obligatory use of the related Union symbols should be extended to the advertising materials. |
| --- | --- |

(72)

To increase the awareness of consumers in respect of protected designations of origin, protected geographical indications and traditional specialities guaranteed under Regulation (EU) No 1151/2012, the obligatory use of the related Union symbols should be extended to the advertising materials.

| (73) | Specific derogations that permit the use of other names alongside the registered name of a traditional speciality guaranteed should be provided for. The Commission should fix transitional periods for the use of designations that contain names of traditional specialities guaranteed, in line with the conditions for such transitional periods already in existence for protected designations of origin and protected geographical indications. |
| --- | --- |

(73)

Specific derogations that permit the use of other names alongside the registered name of a traditional speciality guaranteed should be provided for. The Commission should fix transitional periods for the use of designations that contain names of traditional specialities guaranteed, in line with the conditions for such transitional periods already in existence for protected designations of origin and protected geographical indications.

| (74) | Procedures related to the registration of protected designations of origin, protected geographical indications and traditional specialities guaranteed laid down in Regulation (EU) No 1151/2012 should be streamlined and simplified to ensure that new names can be registered within shorter time periods. The opposition procedure should be simplified. The reasoned statement of opposition should set out all the grounds for opposition and details of those grounds. This should not prevent the authority or person that lodged the opposition from adding and developing further details in the course of the consultations referred to in Article 51(3) of Regulation (EU) No 1151/2012. |
| --- | --- |

(74)

Procedures related to the registration of protected designations of origin, protected geographical indications and traditional specialities guaranteed laid down in Regulation (EU) No 1151/2012 should be streamlined and simplified to ensure that new names can be registered within shorter time periods. The opposition procedure should be simplified. The reasoned statement of opposition should set out all the grounds for opposition and details of those grounds. This should not prevent the authority or person that lodged the opposition from adding and developing further details in the course of the consultations referred to in Article 51(3) of Regulation (EU) No 1151/2012.

| (75) | The procedure for the approval of amendments to product specifications laid down in Regulation (EU) No 1151/2012 should be simplified by introducing a distinction between Union amendments and standard amendments. In accordance with the principle of subsidiarity, Member States should be responsible for approving standard amendments and the Commission should retain responsibility for approving Union amendments to product specifications. Provision should be made to ensure that there is sufficient time to facilitate a smooth transition from the rules provided for in Regulation (EU) No 1151/2012 concerning amendments to product specifications to the new rules laid down in this Regulation. |
| --- | --- |

(75)

The procedure for the approval of amendments to product specifications laid down in Regulation (EU) No 1151/2012 should be simplified by introducing a distinction between Union amendments and standard amendments. In accordance with the principle of subsidiarity, Member States should be responsible for approving standard amendments and the Commission should retain responsibility for approving Union amendments to product specifications. Provision should be made to ensure that there is sufficient time to facilitate a smooth transition from the rules provided for in Regulation (EU) No 1151/2012 concerning amendments to product specifications to the new rules laid down in this Regulation.

| (76) | In light of the increasing demand from Union consumers of beeswax, its growing use in the food sector, and its close link to agricultural products and to the rural economy, the list of agricultural products and foodstuffs laid down in Annex I to Regulation (EU) No 1151/2012 should be extended to cover that product. |
| --- | --- |

(76)

In light of the increasing demand from Union consumers of beeswax, its growing use in the food sector, and its close link to agricultural products and to the rural economy, the list of agricultural products and foodstuffs laid down in Annex I to Regulation (EU) No 1151/2012 should be extended to cover that product.

| (77) | In view of the limited number of registrations of geographical indications of aromatised wine products under Regulation (EU) No 251/2014 of the European Parliament and of the Council (21) the legal framework for the protection of geographical indications for those products should be simplified. Aromatised wine products and other alcoholic beverages, with the exceptions of spirit drinks and of grapevine products listed in Annex VII, Part II, to Regulation (EU) No 1308/2013, should have the same legal regime and procedures as other agricultural products and foodstuffs. The scope of Regulation (EU) No 1151/2012 should be extended to cover those products. Regulation (EU) No 251/2014 should be amended to take account of this change as regards its title, scope and definitions and as regards the provisions concerning the labelling of aromatised wine products. A smooth transition for the names protected under Regulation (EU) No 251/2014 should be ensured. |
| --- | --- |

(77)

In view of the limited number of registrations of geographical indications of aromatised wine products under Regulation (EU) No 251/2014 of the European Parliament and of the Council (21) the legal framework for the protection of geographical indications for those products should be simplified. Aromatised wine products and other alcoholic beverages, with the exceptions of spirit drinks and of grapevine products listed in Annex VII, Part II, to Regulation (EU) No 1308/2013, should have the same legal regime and procedures as other agricultural products and foodstuffs. The scope of Regulation (EU) No 1151/2012 should be extended to cover those products. Regulation (EU) No 251/2014 should be amended to take account of this change as regards its title, scope and definitions and as regards the provisions concerning the labelling of aromatised wine products. A smooth transition for the names protected under Regulation (EU) No 251/2014 should be ensured.

| (78) | In order to facilitate trade with third countries, it should be laid down that Member States may allow that aromatised wine products produced for export include on the package or on a label attached thereto sales denominations required by third countries, including in languages other than the official languages of the Union, provided that the appropriate sales denominations set out in Annex II also appear on the package or on a label attached thereto. |
| --- | --- |

(78)

In order to facilitate trade with third countries, it should be laid down that Member States may allow that aromatised wine products produced for export include on the package or on a label attached thereto sales denominations required by third countries, including in languages other than the official languages of the Union, provided that the appropriate sales denominations set out in Annex II also appear on the package or on a label attached thereto.

| (79) | The power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of supplementing the sales denominations and descriptions of aromatised wine products laid down in Annex II to Regulation (EU) No 251/2014 in order to adapt them to take account of technical progress, scientific and market developments, consumer health or consumer needs for information. |
| --- | --- |

(79)

The power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of supplementing the sales denominations and descriptions of aromatised wine products laid down in Annex II to Regulation (EU) No 251/2014 in order to adapt them to take account of technical progress, scientific and market developments, consumer health or consumer needs for information.

| (80) | In order to provide a higher level of information to consumers, the compulsory labelling of aromatised wine products with a nutrition declaration and a list of ingredients should be added to Regulation (EU) No 251/2014. However, producers should have the option of limiting the contents of the nutrition declaration on the package or on a label attached thereto to only the energy value and of making the full nutrition declaration and the list of ingredients available by electronic means, provided that they avoid any collection or tracking of user data and do not provide information aimed at marketing purposes. However, the option of not providing a full nutritional declaration on the package or on a label attached thereto should not affect the existing requirement that the label list substances causing allergies or intolerances. The power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of supplementing Regulation (EU) No 251/2014 by laying down detailed rules for the indication and designation of ingredients for aromatised wine products. The marketing of existing stocks of aromatised wine products should be allowed to continue after the dates of application of the new labelling requirements until those stocks are exhausted. Operators should be allowed sufficient time to adjust to the new labelling requirements before they become applicable. |
| --- | --- |

(80)

In order to provide a higher level of information to consumers, the compulsory labelling of aromatised wine products with a nutrition declaration and a list of ingredients should be added to Regulation (EU) No 251/2014. However, producers should have the option of limiting the contents of the nutrition declaration on the package or on a label attached thereto to only the energy value and of making the full nutrition declaration and the list of ingredients available by electronic means, provided that they avoid any collection or tracking of user data and do not provide information aimed at marketing purposes. However, the option of not providing a full nutritional declaration on the package or on a label attached thereto should not affect the existing requirement that the label list substances causing allergies or intolerances. The power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of supplementing Regulation (EU) No 251/2014 by laying down detailed rules for the indication and designation of ingredients for aromatised wine products. The marketing of existing stocks of aromatised wine products should be allowed to continue after the dates of application of the new labelling requirements until those stocks are exhausted. Operators should be allowed sufficient time to adjust to the new labelling requirements before they become applicable.

| (81) | It is appropriate to allow the addition of a limited quantity of spirit drinks to flavour the aromatised wines in any of the categories laid down in Annex II, point A, to Regulation (EU) No 251/2014. Since technical progress nowadays enables the production of vermouth without the addition of alcohol, it should no longer be required to add alcohol to vermouth. Given consumer demand, it is appropriate to allow the combination of red and white wine to produce Glühwein. In order to take into account an aromatised wine-based drink existing on the Polish market, it is appropriate to create the new category ‘wino ziołowe’, setting out in Union law the traditional requirements for its production. |
| --- | --- |

(81)

It is appropriate to allow the addition of a limited quantity of spirit drinks to flavour the aromatised wines in any of the categories laid down in Annex II, point A, to Regulation (EU) No 251/2014. Since technical progress nowadays enables the production of vermouth without the addition of alcohol, it should no longer be required to add alcohol to vermouth. Given consumer demand, it is appropriate to allow the combination of red and white wine to produce Glühwein. In order to take into account an aromatised wine-based drink existing on the Polish market, it is appropriate to create the new category ‘wino ziołowe’, setting out in Union law the traditional requirements for its production.

| (82) | Given its small size, remoteness and specific situation concerning food security, local markets in Réunion are particularly vulnerable to price fluctuations. Interbranch organisations bring together producers and other operators of different stages of the food supply chain and can play a role in supporting the maintenance and diversification of local production. In the specific context of food security in Réunion, it is appropriate to provide, by way of derogation from Article 165 of Regulation (EU) No 1308/2013, that where rules of a recognised interbranch organisation are extended to operators who are not members of the interbranch organisation, France may decide, after consulting the relevant stakeholders, that operators who are not members of the interbranch organisation are required to pay financial contributions for the activities covered by extended rules which are in the general economic interest of economic operators whose activities are solely carried out in Réunion in relation to products which are destined for the local market. |
| --- | --- |

(82)

Given its small size, remoteness and specific situation concerning food security, local markets in Réunion are particularly vulnerable to price fluctuations. Interbranch organisations bring together producers and other operators of different stages of the food supply chain and can play a role in supporting the maintenance and diversification of local production. In the specific context of food security in Réunion, it is appropriate to provide, by way of derogation from Article 165 of Regulation (EU) No 1308/2013, that where rules of a recognised interbranch organisation are extended to operators who are not members of the interbranch organisation, France may decide, after consulting the relevant stakeholders, that operators who are not members of the interbranch organisation are required to pay financial contributions for the activities covered by extended rules which are in the general economic interest of economic operators whose activities are solely carried out in Réunion in relation to products which are destined for the local market.

| (83) | Regulations (EU) No 1308/2013, (EU) No 1151/2012, (EU) No 251/2014 and (EU) No 228/2013 should therefore be amended accordingly. |
| --- | --- |

(83)

Regulations (EU) No 1308/2013, (EU) No 1151/2012, (EU) No 251/2014 and (EU) No 228/2013 should therefore be amended accordingly.

| (84) | Transitional arrangements should be put in place for applications for protection and for the registration of protected designations of origin, geographical indications and traditional specialities guaranteed that have been submitted before the date of entry into force of this Regulation, for the expenditure incurred before 1 January 2023 under the aid schemes for olive oil and table olives, fruit and vegetables, wine, apiculture and hops, for operational programmes of recognised producer organisations or their associations in the fruit and vegetables sector and for support programmes in the wine sector established in Articles 29 to 60 of Regulation (EU) No 1308/2013. |
| --- | --- |

(84)

Transitional arrangements should be put in place for applications for protection and for the registration of protected designations of origin, geographical indications and traditional specialities guaranteed that have been submitted before the date of entry into force of this Regulation, for the expenditure incurred before 1 January 2023 under the aid schemes for olive oil and table olives, fruit and vegetables, wine, apiculture and hops, for operational programmes of recognised producer organisations or their associations in the fruit and vegetables sector and for support programmes in the wine sector established in Articles 29 to 60 of Regulation (EU) No 1308/2013.

| (85) | In order to ensure a smooth transition to the new legal framework laid down in Regulation (EU) 2021/2115, the amendments to Regulation (EU) No 1308/2013 linked to that new legal framework should apply from 1 January 2023. |
| --- | --- |

(85)

In order to ensure a smooth transition to the new legal framework laid down in Regulation (EU) 2021/2115, the amendments to Regulation (EU) No 1308/2013 linked to that new legal framework should apply from 1 January 2023.

| (86) | In order to ensure the smooth implementation of the measures envisaged and as a matter of urgency, this Regulation should enter into force on the day following that of its publication in the Official Journal of the European Union, |
| --- | --- |

(86)

In order to ensure the smooth implementation of the measures envisaged and as a matter of urgency, this Regulation should enter into force on the day following that of its publication in the Official Journal of the European Union,

HAVE ADOPTED THIS REGULATION:

Article 1

Amendments to Regulation (EU) No 1308/2013

Regulation (EU) No 1308/2013 is amended as follows:

| (1) | Article 2 is replaced by the following:

  ‘Article 2
  General common agricultural policy (CAP) provisions
  Regulation (EU) 2021/2116 of the European Parliament and of the Council (*1) and the provisions adopted pursuant to it shall apply in relation to the measures set out in this Regulation.


  (*1)  Regulation (EU) 2021/2116 of the European Parliament and of the Council of 2 December 2021 on the financing, management and monitoring of the common agriculture policy and repealing Regulation (EU) No 1306/2013 (OJ L 435, 6.12.2021, p. 187).’;" |
| --- | --- |

(1)

Article 2 is replaced by the following:

‘Article 2

General common agricultural policy (CAP) provisions

Regulation (EU) 2021/2116 of the European Parliament and of the Council (*1) and the provisions adopted pursuant to it shall apply in relation to the measures set out in this Regulation.

(*1)  Regulation (EU) 2021/2116 of the European Parliament and of the Council of 2 December 2021 on the financing, management and monitoring of the common agriculture policy and repealing Regulation (EU) No 1306/2013 (OJ L 435, 6.12.2021, p. 187).’;"

*1

| (2) | Article 3 is amended as follows:






  (a) | paragraph 2 is deleted; |
| --- | --- | --- |

(2)

Article 3 is amended as follows:

(a)

paragraph 2 is deleted;

| (b) | paragraphs 3 and 4 are replaced by the following:

  ‘3.   The definitions set out in Regulation (EU) 2021/2116 and Regulation (EU) 2021/2115 of the European Parliament and of the Council (*2) apply for the purposes of this Regulation, save as otherwise provided for in this Regulation.


  4.   The Commission shall be empowered to adopt delegated acts, in accordance with Article 227, amending the definitions concerning the sectors set out in Annex II to the extent necessary to update the definitions in light of market developments without adding new definitions.


  (*2)  Regulation (EU) 2021/2116 of the European Parliament and of the Council of 2 December 2021 establishing rules on support for strategic plans to be drawn up by Member States under the Common agricultural policy (CAP Strategic Plans) and financed by the European Agricultural Guarantee Fund (EAGF) and by the European Agricultural Fund for Rural Development (EAFRD) and repealing Regulation (EU) No 1305/2013 of the European Parliament and of the Council and Regulation (EU) No 1307/2013 of the European Parliament and of the Council (OJ L 435, 6.12.2021, p1).’;" |
| --- | --- |

(b)

paragraphs 3 and 4 are replaced by the following:

‘3.   The definitions set out in Regulation (EU) 2021/2116 and Regulation (EU) 2021/2115 of the European Parliament and of the Council (*2) apply for the purposes of this Regulation, save as otherwise provided for in this Regulation.

4.   The Commission shall be empowered to adopt delegated acts, in accordance with Article 227, amending the definitions concerning the sectors set out in Annex II to the extent necessary to update the definitions in light of market developments without adding new definitions.

(*2)  Regulation (EU) 2021/2116 of the European Parliament and of the Council of 2 December 2021 establishing rules on support for strategic plans to be drawn up by Member States under the Common agricultural policy (CAP Strategic Plans) and financed by the European Agricultural Guarantee Fund (EAGF) and by the European Agricultural Fund for Rural Development (EAFRD) and repealing Regulation (EU) No 1305/2013 of the European Parliament and of the Council and Regulation (EU) No 1307/2013 of the European Parliament and of the Council (OJ L 435, 6.12.2021, p1).’;"

*2

| (3) | Article 5 is replaced by the following:

  ‘Article 5
  Conversion rates for rice
  The Commission may adopt implementing acts fixing the conversion rates for rice at various stages of processing.
  Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 229(2).’; |
| --- | --- |

(3)

Article 5 is replaced by the following:

‘Article 5

Conversion rates for rice

The Commission may adopt implementing acts fixing the conversion rates for rice at various stages of processing.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 229(2).’;

| (4) | Article 6 is replaced by the following:

  ‘Article 6
  Marketing years
  The following marketing years shall be established:






  (a) | 1 January to 31 December of a given year for the fruit and vegetables, processed fruit and vegetables and banana sectors; |
| --- | --- | --- |

(4)

Article 6 is replaced by the following:

‘Article 6

Marketing years

The following marketing years shall be established:

(a)

1 January to 31 December of a given year for the fruit and vegetables, processed fruit and vegetables and banana sectors;

| (b) | 1 April to 31 March of the following year for the dried fodder and silkworm sectors; |
| --- | --- |

(b)

1 April to 31 March of the following year for the dried fodder and silkworm sectors;

| (c) | 1 July to 30 June of the following year for:






  (i) | the cereals sector; |
| --- | --- | --- |

(c)

1 July to 30 June of the following year for:

(i)

the cereals sector;

| (ii) | the seeds sector; |
| --- | --- |

(ii)

the seeds sector;

| (iii) | the flax and hemp sector; |
| --- | --- |

(iii)

the flax and hemp sector;

| (iv) | the milk and milk products sector; |
| --- | --- |

(iv)

the milk and milk products sector;

| (d) | 1 August to 31 July of the following year for the wine sector; |
| --- | --- |

(d)

1 August to 31 July of the following year for the wine sector;

| (e) | 1 September to 31 August of the following year for the rice sector and with respect to table olives; |
| --- | --- |

(e)

1 September to 31 August of the following year for the rice sector and with respect to table olives;

| (f) | 1 October to 30 September of the following year for the sugar sector and with respect to olive oil.’; |
| --- | --- |

(f)

1 October to 30 September of the following year for the sugar sector and with respect to olive oil.’;

| (5) | Article 12 is replaced by the following:

  ‘Article 12
  Public intervention periods
  Public intervention shall be available for:






  (a) | common wheat, from 1 October to 31 May; |
| --- | --- | --- |

(5)

Article 12 is replaced by the following:

‘Article 12

Public intervention periods

Public intervention shall be available for:

(a)

common wheat, from 1 October to 31 May;

| (b) | durum wheat, barley and maize, throughout the year; |
| --- | --- |

(b)

durum wheat, barley and maize, throughout the year;

| (c) | paddy rice, throughout the year; |
| --- | --- |

(c)

paddy rice, throughout the year;

| (d) | beef and veal, throughout the year; |
| --- | --- |

(d)

beef and veal, throughout the year;

| (e) | butter and skimmed milk powder, from 1 February to 30 September.’; |
| --- | --- |

(e)

butter and skimmed milk powder, from 1 February to 30 September.’;

| (6) | Article 16 is amended as follows:






  (a) | the following paragraph is inserted:

  ‘2a.   Member States shall notify to the Commission all the information needed to allow for the monitoring of compliance with the principles laid down in paragraph 1.’; |
| --- | --- | --- |

(6)

Article 16 is amended as follows:

(a)

the following paragraph is inserted:

‘2a.   Member States shall notify to the Commission all the information needed to allow for the monitoring of compliance with the principles laid down in paragraph 1.’;

| (b) | paragraph 3 is replaced by the following:

  ‘3.   Each year the Commission shall publish details of the conditions under which products bought in under public intervention were bought or sold in the previous year. Those details shall include the relevant volumes and the buying and selling prices.’; |
| --- | --- |

(b)

paragraph 3 is replaced by the following:

‘3.   Each year the Commission shall publish details of the conditions under which products bought in under public intervention were bought or sold in the previous year. Those details shall include the relevant volumes and the buying and selling prices.’;

| (7) | in Article 17, first paragraph, point (b) is replaced by the following:






  ‘(b) | olive oil and table olives;’; |
| --- | --- | --- |

(7)

in Article 17, first paragraph, point (b) is replaced by the following:

‘(b)

olive oil and table olives;’;

| (8) | Part II, Title I, Chapter II, is amended as follows:






  (a) | the title is replaced by the following:

  ‘
  CHAPTER II



  Aid for the supply of fruit and vegetables and of milk and milk products in educational establishments

  ’; |
| --- | --- | --- |

(8)

Part II, Title I, Chapter II, is amended as follows:

(a)

the title is replaced by the following:

‘
  CHAPTER II

CHAPTER II

Aid for the supply of fruit and vegetables and of milk and milk products in educational establishments

  ’;

Aid for the supply of fruit and vegetables and of milk and milk products in educational establishments

| (b) | the heading ‘Section 1’ and its title are deleted; |
| --- | --- |

(b)

the heading ‘Section 1’ and its title are deleted;

| (c) | in Article 23, paragraph 11 is replaced by the following:

  ‘11.   Member States shall choose the products to be featured in distribution or to be included in accompanying educational measures on the basis of objective criteria which shall include one or more of the following: health and environmental considerations, seasonality, variety and the availability of local or regional produce, giving priority to the extent practicable to products originating in the Union. Member States may encourage in particular local or regional purchasing, organic products, short supply chains or environmental benefits, including sustainable packaging, and, if appropriate, products recognised under the quality schemes established by Regulation (EU) No 1151/2012.
  Member States may consider, in their strategies, prioritising sustainability and fair-trade considerations.’; |
| --- | --- |

(c)

in Article 23, paragraph 11 is replaced by the following:

‘11.   Member States shall choose the products to be featured in distribution or to be included in accompanying educational measures on the basis of objective criteria which shall include one or more of the following: health and environmental considerations, seasonality, variety and the availability of local or regional produce, giving priority to the extent practicable to products originating in the Union. Member States may encourage in particular local or regional purchasing, organic products, short supply chains or environmental benefits, including sustainable packaging, and, if appropriate, products recognised under the quality schemes established by Regulation (EU) No 1151/2012.

Member States may consider, in their strategies, prioritising sustainability and fair-trade considerations.’;

| (d) | Article 23a is amended as follows:






  (i) | paragraph 1 is replaced by the following:

  ‘1.   Without prejudice to paragraph 4 of this Article, the aid under the school scheme allocated for the distribution of products, the accompanying educational measures and the related costs referred to in Article 23(1) shall not exceed EUR 220 804 135 per school year. Within that overall limit, the aid shall not exceed:






  (a) | for school fruit and vegetables: EUR 130 608 466 per school year; |
| --- | --- | --- | --- |

(d)

Article 23a is amended as follows:

(i)

paragraph 1 is replaced by the following:

‘1.   Without prejudice to paragraph 4 of this Article, the aid under the school scheme allocated for the distribution of products, the accompanying educational measures and the related costs referred to in Article 23(1) shall not exceed EUR 220 804 135 per school year. Within that overall limit, the aid shall not exceed:

(a)

for school fruit and vegetables: EUR 130 608 466 per school year;

| (b) | for school milk: EUR 90 195 669 per school year.’; |
| --- | --- |

(b)

for school milk: EUR 90 195 669 per school year.’;

| (ii) | in paragraph 2, third subparagraph, the last sentence is deleted; |
| --- | --- |

(ii)

in paragraph 2, third subparagraph, the last sentence is deleted;

| (iii) | in paragraph 4, the first subparagraph is replaced by the following:

  ‘4.   Without exceeding the overall limit of EUR 220 804 135 laid down in paragraph 1, any Member State may transfer once per school year up to 20 % of either one or the other of its indicative allocations.’; |
| --- | --- |

(iii)

in paragraph 4, the first subparagraph is replaced by the following:

‘4.   Without exceeding the overall limit of EUR 220 804 135 laid down in paragraph 1, any Member State may transfer once per school year up to 20 % of either one or the other of its indicative allocations.’;

| (e) | Sections 2 to 6, containing Articles 29 to 60, are deleted; |
| --- | --- |

(e)

Sections 2 to 6, containing Articles 29 to 60, are deleted;

| (9) | Article 61 is replaced by the following:

  ‘Article 61
  Duration
  The scheme of authorisations for vine plantings established in this Chapter shall apply from 1 January 2016 to 31 December 2045, with two mid-term reviews to be undertaken by the Commission in 2028 and 2040 to evaluate the operation of the scheme and, if appropriate, make proposals.’; |
| --- | --- |

(9)

Article 61 is replaced by the following:

‘Article 61

Duration

The scheme of authorisations for vine plantings established in this Chapter shall apply from 1 January 2016 to 31 December 2045, with two mid-term reviews to be undertaken by the Commission in 2028 and 2040 to evaluate the operation of the scheme and, if appropriate, make proposals.’;

| (10) | Article 62 is amended as follows:






  (a) | paragraph 3 is amended as follows:






  (i) | the following subparagraph is inserted after the first subparagraph:

  ‘By way of derogation from the first subparagraph, Member States may decide that when replanting takes place on the same parcel or parcels on which the grubbing up was undertaken, the authorisations referred to in Article 66(1) are valid for six years from the date on which they were granted. Such authorisations shall clearly identify the parcel or parcels on which the grubbing up and the replanting will take place.’; |
| --- | --- | --- | --- |

(10)

Article 62 is amended as follows:

(a)

paragraph 3 is amended as follows:

(i)

the following subparagraph is inserted after the first subparagraph:

‘By way of derogation from the first subparagraph, Member States may decide that when replanting takes place on the same parcel or parcels on which the grubbing up was undertaken, the authorisations referred to in Article 66(1) are valid for six years from the date on which they were granted. Such authorisations shall clearly identify the parcel or parcels on which the grubbing up and the replanting will take place.’;

| (ii) | the second and third subparagraphs are replaced by the following:

  ‘By way of derogation from the first subparagraph, the validity of authorisations granted in accordance with Article 64 and Article 66(1), which expires in the years 2020 and 2021, is extended until 31 December 2022.
  Producers who hold authorisations in accordance with Article 64 and Article 66(1) of this Regulation, which expire in 2020 and 2021, shall not, by way of derogation from the first subparagraph of this paragraph, be subject to the administrative penalty referred to in Article 89(4) of Regulation (EU) No 1306/2013 provided that they inform the competent authorities by 28 February 2022 that they do not intend to make use of their authorisation and do not wish to benefit from the extension of their validity as referred to in the third subparagraph of this paragraph. Where producers who hold authorisations, the validity of which was extended until 31 December 2021, have declared to the competent authority by 28 February 2021 that they do not intend to make use of those authorisations, they shall be allowed to retract their declarations by means of a written communication to the competent authority by 28 February 2022 and to make use of their authorisations within the extended validity period provided for in the third subparagraph.’; |
| --- | --- |

(ii)

the second and third subparagraphs are replaced by the following:

‘By way of derogation from the first subparagraph, the validity of authorisations granted in accordance with Article 64 and Article 66(1), which expires in the years 2020 and 2021, is extended until 31 December 2022.

Producers who hold authorisations in accordance with Article 64 and Article 66(1) of this Regulation, which expire in 2020 and 2021, shall not, by way of derogation from the first subparagraph of this paragraph, be subject to the administrative penalty referred to in Article 89(4) of Regulation (EU) No 1306/2013 provided that they inform the competent authorities by 28 February 2022 that they do not intend to make use of their authorisation and do not wish to benefit from the extension of their validity as referred to in the third subparagraph of this paragraph. Where producers who hold authorisations, the validity of which was extended until 31 December 2021, have declared to the competent authority by 28 February 2021 that they do not intend to make use of those authorisations, they shall be allowed to retract their declarations by means of a written communication to the competent authority by 28 February 2022 and to make use of their authorisations within the extended validity period provided for in the third subparagraph.’;

| (b) | paragraph 4 is replaced by the following:

  ‘4.   This Chapter shall not apply to the planting or replanting of areas intended for experimental purposes, for setting-up collections of vine varieties intended to preserve genetic resources or for graft nurseries, to areas whose wine or vine products are intended solely for the consumption by the wine-grower’s household or to areas to be newly planted as a result of compulsory purchases in the public interest under national law.’; |
| --- | --- |

(b)

paragraph 4 is replaced by the following:

‘4.   This Chapter shall not apply to the planting or replanting of areas intended for experimental purposes, for setting-up collections of vine varieties intended to preserve genetic resources or for graft nurseries, to areas whose wine or vine products are intended solely for the consumption by the wine-grower’s household or to areas to be newly planted as a result of compulsory purchases in the public interest under national law.’;

| (11) | Article 63 is amended as follows:






  (a) | paragraph 1 is replaced by the following:

  ‘1.   Member States shall make available each year authorisations for new plantings corresponding to either:






  (a) | 1 % of the total area actually planted with vines in their territory, as measured on 31 July of the previous year; or |
| --- | --- | --- | --- |

(11)

Article 63 is amended as follows:

(a)

paragraph 1 is replaced by the following:

‘1.   Member States shall make available each year authorisations for new plantings corresponding to either:

(a)

1 % of the total area actually planted with vines in their territory, as measured on 31 July of the previous year; or

| (b) | 1 % of an area comprising the area actually planted with vines in their territory, as measured on 31 July 2015, and the area covered by planting rights granted to producers in their territory in accordance with Article 85h, Article 85i or Article 85k of Regulation (EC) No 1234/2007 that were available for conversion into authorisations on 1 January 2016, as referred to in Article 68 of this Regulation.’; |
| --- | --- |

(b)

1 % of an area comprising the area actually planted with vines in their territory, as measured on 31 July 2015, and the area covered by planting rights granted to producers in their territory in accordance with Article 85h, Article 85i or Article 85k of Regulation (EC) No 1234/2007 that were available for conversion into authorisations on 1 January 2016, as referred to in Article 68 of this Regulation.’;

| (b) | in paragraph 2, the following subparagraph is added:

  ‘Member States that limit the issuing of authorisations at regional level for specific areas eligible for the production of wines with a protected designation of origin or for areas eligible for the production of wines with a protected geographical indication in accordance with the first subparagraph, point (b), may require such authorisations to be used in those regions.’; |
| --- | --- |

(b)

in paragraph 2, the following subparagraph is added:

‘Member States that limit the issuing of authorisations at regional level for specific areas eligible for the production of wines with a protected designation of origin or for areas eligible for the production of wines with a protected geographical indication in accordance with the first subparagraph, point (b), may require such authorisations to be used in those regions.’;

| (c) | paragraph 3 is amended as follows:






  (i) | point (b) is replaced by the following:






  ‘(b) | the need to avoid a well-demonstrated risk of devaluation of a particular protected designation of origin or a protected geographical indication;’; |
| --- | --- | --- | --- |

(c)

paragraph 3 is amended as follows:

(i)

point (b) is replaced by the following:

‘(b)

the need to avoid a well-demonstrated risk of devaluation of a particular protected designation of origin or a protected geographical indication;’;

| (ii) | the following point is added:






  ‘(c) | the wish to contribute to the development of the products in question while preserving the quality of those products.’; |
| --- | --- | --- |

(ii)

the following point is added:

‘(c)

the wish to contribute to the development of the products in question while preserving the quality of those products.’;

| (d) | the following paragraph is inserted:

  ‘3a.   Member States may take any regulatory measures necessary to prevent circumvention by operators of the restrictive measures taken pursuant to paragraphs 2 and 3.’; |
| --- | --- |

(d)

the following paragraph is inserted:

‘3a.   Member States may take any regulatory measures necessary to prevent circumvention by operators of the restrictive measures taken pursuant to paragraphs 2 and 3.’;

| (12) | Article 64 is amended as follows:






  (a) | in paragraph 1, second subparagraph, the introductory wording is replaced by the following:

  ‘Member States may, for the purpose of this Article, apply one or more of the following objective and non-discriminatory eligibility criteria at national or regional level:’; |
| --- | --- | --- |

(12)

Article 64 is amended as follows:

(a)

in paragraph 1, second subparagraph, the introductory wording is replaced by the following:

‘Member States may, for the purpose of this Article, apply one or more of the following objective and non-discriminatory eligibility criteria at national or regional level:’;

| (b) | paragraph 2 is amended as follows:






  (i) | the introductory wording is replaced by the following:

  ‘2.   If the total area covered by the eligible applications referred to in paragraph 1 in a given year exceeds the area made available by the Member State, authorisations shall be granted according to a pro-rata distribution of hectares to all applicants on the basis of the area for which they have requested the authorisation. Such granting may establish a minimum and/or a maximum area by applicant and also be partially or completely made in accordance with one or more of the following objective and non-discriminatory priority criteria that may apply at national or regional level.’; |
| --- | --- | --- |

(b)

paragraph 2 is amended as follows:

(i)

the introductory wording is replaced by the following:

‘2.   If the total area covered by the eligible applications referred to in paragraph 1 in a given year exceeds the area made available by the Member State, authorisations shall be granted according to a pro-rata distribution of hectares to all applicants on the basis of the area for which they have requested the authorisation. Such granting may establish a minimum and/or a maximum area by applicant and also be partially or completely made in accordance with one or more of the following objective and non-discriminatory priority criteria that may apply at national or regional level.’;

| (ii) | point (b) is replaced by the following:






  ‘(b) | areas where vineyards contribute to the preservation of the environment or the conservation of the genetic resources of vines;’; |
| --- | --- | --- |

(ii)

point (b) is replaced by the following:

‘(b)

areas where vineyards contribute to the preservation of the environment or the conservation of the genetic resources of vines;’;

| (iii) | point (f) is replaced by the following:






  ‘(f) | areas to be newly planted which contribute to increasing the production of holdings of the wine-growing sector that show increased cost-efficiency or competitiveness or presence on the markets;’; |
| --- | --- | --- |

(iii)

point (f) is replaced by the following:

‘(f)

areas to be newly planted which contribute to increasing the production of holdings of the wine-growing sector that show increased cost-efficiency or competitiveness or presence on the markets;’;

| (iv) | point (h) is replaced by the following:






  ‘(h) | areas to be newly planted in the framework of increasing the size of small and medium-sized vine holdings;’; |
| --- | --- | --- |

(iv)

point (h) is replaced by the following:

‘(h)

areas to be newly planted in the framework of increasing the size of small and medium-sized vine holdings;’;

| (c) | the following paragraph is inserted:

  ‘2b.   Member States may take any necessary regulatory measures to prevent the circumvention by operators of the restrictive criteria that they apply pursuant to paragraphs 1, 2 and 2a.’; |
| --- | --- |

(c)

the following paragraph is inserted:

‘2b.   Member States may take any necessary regulatory measures to prevent the circumvention by operators of the restrictive criteria that they apply pursuant to paragraphs 1, 2 and 2a.’;

| (13) | in Article 65, the first paragraph is replaced by the following:

  ‘When applying Article 63(2), a Member State shall take into consideration recommendations presented by recognised professional organisations operating in the wine sector referred to in Articles 152, 156 and 157, by interested groups of producers referred to in Article 95, or by other types of professional organisation recognised on the basis of that Member State’s legislation, provided that those recommendations are preceded by an agreement entered into by the relevant representative parties in the reference geographical area.’; |
| --- | --- |

(13)

in Article 65, the first paragraph is replaced by the following:

‘When applying Article 63(2), a Member State shall take into consideration recommendations presented by recognised professional organisations operating in the wine sector referred to in Articles 152, 156 and 157, by interested groups of producers referred to in Article 95, or by other types of professional organisation recognised on the basis of that Member State’s legislation, provided that those recommendations are preceded by an agreement entered into by the relevant representative parties in the reference geographical area.’;

| (14) | Article 68 is amended as follows:






  (a) | the following paragraph is inserted:

  ‘2a.   From 1 January 2023, an area equivalent to the area covered by planting rights that were eligible for conversion into planting authorisations on 31 December 2022 but have not yet been converted into authorisations in accordance to paragraph 1, shall remain at the disposal of the Member States concerned, which may grant authorisations in accordance with Article 64 at the latest by 31 December 2025.’; |
| --- | --- | --- |

(14)

Article 68 is amended as follows:

(a)

the following paragraph is inserted:

‘2a.   From 1 January 2023, an area equivalent to the area covered by planting rights that were eligible for conversion into planting authorisations on 31 December 2022 but have not yet been converted into authorisations in accordance to paragraph 1, shall remain at the disposal of the Member States concerned, which may grant authorisations in accordance with Article 64 at the latest by 31 December 2025.’;

| (b) | paragraph 3 is replaced by the following:

  ‘3.   The areas covered by the authorisations granted pursuant to paragraphs 1 and 2a of this Article shall not be counted for the purposes of Article 63.’; |
| --- | --- |

(b)

paragraph 3 is replaced by the following:

‘3.   The areas covered by the authorisations granted pursuant to paragraphs 1 and 2a of this Article shall not be counted for the purposes of Article 63.’;

| (15) | in Article 81, the following paragraph is added:

  ‘6.   Areas planted for purposes other than wine production with vine varieties which, in the case of Member States other than those referred to in paragraph 3, are not classified or which, in the case of Member States referred to in paragraph 3, do not comply with paragraph 2, second subparagraph, shall not be subject to a grubbing up obligation.
  The planting and replanting of the vine varieties referred to in the first subparagraph for purposes other than wine production shall not be subject to the scheme of authorisations for vine planting laid down in Part II, Title I, Chapter III.’; |
| --- | --- |

(15)

in Article 81, the following paragraph is added:

‘6.   Areas planted for purposes other than wine production with vine varieties which, in the case of Member States other than those referred to in paragraph 3, are not classified or which, in the case of Member States referred to in paragraph 3, do not comply with paragraph 2, second subparagraph, shall not be subject to a grubbing up obligation.

The planting and replanting of the vine varieties referred to in the first subparagraph for purposes other than wine production shall not be subject to the scheme of authorisations for vine planting laid down in Part II, Title I, Chapter III.’;

| (16) | Article 86 is replaced by the following:

  ‘Article 86
  Reservation, amendment and cancellation of optional reserved terms
  In order to take account of the expectations of consumers, including as regards production methods and sustainability in the supply chain, developments in scientific and technical knowledge, the situation in the market and developments in marketing standards and in international standards, the Commission shall be empowered to adopt delegated acts in accordance with Article 227:






  (a) | reserving an additional optional reserved term, laying down its conditions of use; |
| --- | --- | --- |

(16)

Article 86 is replaced by the following:

‘Article 86

Reservation, amendment and cancellation of optional reserved terms

In order to take account of the expectations of consumers, including as regards production methods and sustainability in the supply chain, developments in scientific and technical knowledge, the situation in the market and developments in marketing standards and in international standards, the Commission shall be empowered to adopt delegated acts in accordance with Article 227:

(a)

reserving an additional optional reserved term, laying down its conditions of use;

| (b) | amending the conditions of use of an optional reserved term; or |
| --- | --- |

(b)

amending the conditions of use of an optional reserved term; or

| (c) | cancelling an optional reserved term.’; |
| --- | --- |

(c)

cancelling an optional reserved term.’;

| (17) | Article 90 is amended as follows:






  (a) | paragraph 1 is replaced by the following:

  ‘1.   Save as otherwise provided for in international agreements concluded in accordance with the TFEU, the provisions concerning designation of origin and geographical indications and labelling of wine set out in Section 2 of this Chapter, and the definitions, designations and sales descriptions referred to in Article 78 of this Regulation shall apply to products imported into the Union and falling within CN codes 2009 61, 2009 69, 2204 and, where applicable, ex 2202 99 19 (other, de-alcoholised wine with an alcoholic strength by volume not exceeding 0,5 %)’; |
| --- | --- | --- |

(17)

Article 90 is amended as follows:

(a)

paragraph 1 is replaced by the following:

‘1.   Save as otherwise provided for in international agreements concluded in accordance with the TFEU, the provisions concerning designation of origin and geographical indications and labelling of wine set out in Section 2 of this Chapter, and the definitions, designations and sales descriptions referred to in Article 78 of this Regulation shall apply to products imported into the Union and falling within CN codes 2009 61, 2009 69, 2204 and, where applicable, ex 2202 99 19 (other, de-alcoholised wine with an alcoholic strength by volume not exceeding 0,5 %)’;

| (b) | in paragraph 3, the introductory wording is replaced by the following:

  ‘3.   Save as otherwise provided for in international agreements concluded in accordance with the TFEU, the import of the products referred to in paragraph 1 shall be subject to the presentation of:’; |
| --- | --- |

(b)

in paragraph 3, the introductory wording is replaced by the following:

‘3.   Save as otherwise provided for in international agreements concluded in accordance with the TFEU, the import of the products referred to in paragraph 1 shall be subject to the presentation of:’;

| (18) | in Part II, Title II, Chapter I, Section 1, the following subsection is inserted:

  ‘Subsection 4a
  Checks and penalties

  Article 90a
  Checks and penalties related to marketing rules

  1.   Member States shall take measures to ensure that products referred to in Article 119(1) which are not labelled in conformity with this Regulation are not placed on the market or, if they have already been placed on the market, are withdrawn from the market.


  2.   Without prejudice to any specific provisions which may be adopted by the Commission, imports into the Union of the products specified in Article 189(1), points (a) and (b), shall be subject to checks to determine whether the conditions provided for in paragraph 1 of that Article are met.


  3.   Member States shall carry out checks, based on a risk analysis, in order to verify whether the products referred to in Article 1(2) conform to the rules laid down in this Section and shall apply administrative penalties as appropriate.


  4.   Without prejudice to acts concerning the wine sector that have been adopted pursuant to Article 58 of Regulation (EU) 2021/2116, in the event of an infringement of Union rules in the wine sector, Member States shall apply proportionate, effective and dissuasive administrative penalties in accordance with Title IV, Chapter I, of that Regulation. Member States shall not apply such penalties where the non-compliance is of a minor nature.


  5.   In order to protect Union funds and to protect the identity, provenance and quality of Union wine, the Commission shall be empowered to adopt delegated acts in accordance with Article 227, supplementing this Regulation, relating to:






  (a) | the establishment or maintenance of an analytical databank of isotopic data to help detect fraud to be constructed on the basis of samples collected by Member States; |
| --- | --- | --- |

(18)

in Part II, Title II, Chapter I, Section 1, the following subsection is inserted:

‘Subsection 4a

Checks and penalties

Article 90a

Checks and penalties related to marketing rules

1.   Member States shall take measures to ensure that products referred to in Article 119(1) which are not labelled in conformity with this Regulation are not placed on the market or, if they have already been placed on the market, are withdrawn from the market.

2.   Without prejudice to any specific provisions which may be adopted by the Commission, imports into the Union of the products specified in Article 189(1), points (a) and (b), shall be subject to checks to determine whether the conditions provided for in paragraph 1 of that Article are met.

3.   Member States shall carry out checks, based on a risk analysis, in order to verify whether the products referred to in Article 1(2) conform to the rules laid down in this Section and shall apply administrative penalties as appropriate.

4.   Without prejudice to acts concerning the wine sector that have been adopted pursuant to Article 58 of Regulation (EU) 2021/2116, in the event of an infringement of Union rules in the wine sector, Member States shall apply proportionate, effective and dissuasive administrative penalties in accordance with Title IV, Chapter I, of that Regulation. Member States shall not apply such penalties where the non-compliance is of a minor nature.

5.   In order to protect Union funds and to protect the identity, provenance and quality of Union wine, the Commission shall be empowered to adopt delegated acts in accordance with Article 227, supplementing this Regulation, relating to:

(a)

the establishment or maintenance of an analytical databank of isotopic data to help detect fraud to be constructed on the basis of samples collected by Member States;

| (b) | rules governing control bodies and the mutual assistance between them; |
| --- | --- |

(b)

rules governing control bodies and the mutual assistance between them;

| (c) | rules governing the common use of the findings of Member States. |
| --- | --- |

(c)

rules governing the common use of the findings of Member States.

6.   The Commission may adopt implementing acts laying down all measures necessary for:

| (a) | the procedures relating to Member States’ respective databanks and to the analytical databank of isotopic data referred to in paragraph 5, point (a); |
| --- | --- |

(a)

the procedures relating to Member States’ respective databanks and to the analytical databank of isotopic data referred to in paragraph 5, point (a);

| (b) | the procedures relating to cooperation and assistance between control authorities and bodies; |
| --- | --- |

(b)

the procedures relating to cooperation and assistance between control authorities and bodies;

| (c) | as regards the obligation referred to in paragraph 3, rules for performing checks on compliance with marketing standards, rules governing the authorities responsible for performing the checks, as well as rules on the content and the frequency of the checks and the marketing stage to which those checks are to apply. |
| --- | --- |

(c)

as regards the obligation referred to in paragraph 3, rules for performing checks on compliance with marketing standards, rules governing the authorities responsible for performing the checks, as well as rules on the content and the frequency of the checks and the marketing stage to which those checks are to apply.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 229(2).’;

| (19) | in Article 92(1), the following subparagraph is added:

  ‘However, the rules laid down in this section do not apply to products referred to in Annex VII, Part II, points (1), (4), (5), (6), (8) and (9), when such products have undergone a total de-alcoholisation treatment in accordance with Annex VIII, Part I, Section E.’; |
| --- | --- |

(19)

in Article 92(1), the following subparagraph is added:

‘However, the rules laid down in this section do not apply to products referred to in Annex VII, Part II, points (1), (4), (5), (6), (8) and (9), when such products have undergone a total de-alcoholisation treatment in accordance with Annex VIII, Part I, Section E.’;

| (20) | Article 93 is amended as follows:






  (a) | in paragraph 1, points (a) and (b) are replaced by the following:






  ‘(a) | “designation of origin” means a name, including a traditionally used name, which identifies a product referred to in Article 92(1):






  (i) | whose quality or characteristics are essentially or exclusively due to a particular geographical environment with its inherent natural and human factors; |
| --- | --- | --- | --- | --- |

(20)

Article 93 is amended as follows:

(a)

in paragraph 1, points (a) and (b) are replaced by the following:

‘(a)

“designation of origin” means a name, including a traditionally used name, which identifies a product referred to in Article 92(1):

(i)

whose quality or characteristics are essentially or exclusively due to a particular geographical environment with its inherent natural and human factors;

| (ii) | as originating in a specific place, region or, in exceptional cases, country; |
| --- | --- |

(ii)

as originating in a specific place, region or, in exceptional cases, country;

| (iii) | produced from grapes which originate exclusively from that geographical area; |
| --- | --- |

(iii)

produced from grapes which originate exclusively from that geographical area;

| (iv) | the production of which takes place in that geographical area; and |
| --- | --- |

(iv)

the production of which takes place in that geographical area; and

| (v) | which is obtained from vine varieties belonging to Vitis vinifera or a cross between the Vitis vinifera species and other species of the genus Vitis. |
| --- | --- |

(v)

which is obtained from vine varieties belonging to Vitis vinifera or a cross between the Vitis vinifera species and other species of the genus Vitis.

Vitis vinifera

Vitis vinifera

Vitis

| (b) | “geographical indication” means a name, including a traditionally used name, which identifies a product referred to in Article 92(1):






  (i) | whose specific quality, reputation or other characteristics are attributable to its geographical origin; |
| --- | --- | --- |

(b)

“geographical indication” means a name, including a traditionally used name, which identifies a product referred to in Article 92(1):

(i)

whose specific quality, reputation or other characteristics are attributable to its geographical origin;

| (ii) | as originating in a specific place, region or, in exceptional cases, country; |
| --- | --- |

(ii)

as originating in a specific place, region or, in exceptional cases, country;

| (iii) | as having at least 85 % of the grapes used for its production come exclusively from that geographical area; |
| --- | --- |

(iii)

as having at least 85 % of the grapes used for its production come exclusively from that geographical area;

| (iv) | the production of which takes place in that geographical area; and |
| --- | --- |

(iv)

the production of which takes place in that geographical area; and

| (v) | which is obtained from vine varieties belonging to Vitis vinifera or a cross between the Vitis vinifera species and other species of the genus Vitis.’; |
| --- | --- |

(v)

which is obtained from vine varieties belonging to Vitis vinifera or a cross between the Vitis vinifera species and other species of the genus Vitis.’;

Vitis vinifera

Vitis vinifera

Vitis

| (b) | paragraph 2 is deleted; |
| --- | --- |

(b)

paragraph 2 is deleted;

| (c) | paragraph 4 is replaced by the following:

  ‘4.   Production as referred to in paragraph 1, points (a)(iv) and (b)(iv), includes all the operations involved, from the harvesting of the grapes to the completion of the wine-making processes, with the exception of the harvesting of grapes not coming from the geographical area concerned as referred to in paragraph 1, point (b)(iii), and with the exception of any post-production processes.’; |
| --- | --- |

(c)

paragraph 4 is replaced by the following:

‘4.   Production as referred to in paragraph 1, points (a)(iv) and (b)(iv), includes all the operations involved, from the harvesting of the grapes to the completion of the wine-making processes, with the exception of the harvesting of grapes not coming from the geographical area concerned as referred to in paragraph 1, point (b)(iii), and with the exception of any post-production processes.’;

| (21) | Article 94 is amended as follows:






  (a) | in paragraph 1, the introductory wording is replaced by the following:

  ‘Applications for protection of names as designations of origin or geographical indications shall include:’; |
| --- | --- | --- |

(21)

Article 94 is amended as follows:

(a)

in paragraph 1, the introductory wording is replaced by the following:

‘Applications for protection of names as designations of origin or geographical indications shall include:’;

| (b) | paragraph 2 is amended as follows:






  (i) | point (g) is replaced by the following:






  ‘(g) | the details bearing out the link referred to in Article 93(1), point (a)(i), or, as the case may be, point (b)(i):






  (i) | as regards a protected designation of origin, the link between the quality or characteristics of the product and the geographical environment referred to in Article 93(1), point (a)(i); the details concerning the human factors of that geographical environment may, where relevant, be limited to a description of the soil, plant material and landscape management, cultivation practices or any other relevant human contribution to the maintenance of the natural factors of the geographical environment referred to in that point; |
| --- | --- | --- | --- | --- |

(b)

paragraph 2 is amended as follows:

(i)

point (g) is replaced by the following:

‘(g)

the details bearing out the link referred to in Article 93(1), point (a)(i), or, as the case may be, point (b)(i):

(i)

as regards a protected designation of origin, the link between the quality or characteristics of the product and the geographical environment referred to in Article 93(1), point (a)(i); the details concerning the human factors of that geographical environment may, where relevant, be limited to a description of the soil, plant material and landscape management, cultivation practices or any other relevant human contribution to the maintenance of the natural factors of the geographical environment referred to in that point;

| (ii) | as regards a protected geographical indication, the link between a specific quality, the reputation or other characteristic of the product, and the geographical origin referred to in Article 93(1), point (b)(i);’; |
| --- | --- |

(ii)

as regards a protected geographical indication, the link between a specific quality, the reputation or other characteristic of the product, and the geographical origin referred to in Article 93(1), point (b)(i);’;

| (ii) | the following subparagraphs are added:

  ‘The product specification may contain a description of the contribution of the designation of origin or geographical indication to sustainable development.
  Where the wine or wines may be partially de-alcoholised, the product specification shall also contain a description of the partially de-alcoholised wine or wines in accordance with the second subparagraph, point (b), mutatis mutandis, and, where applicable, the specific oenological practices used to make the partially de-alcoholised wine or wines, as well as the relevant restrictions on making them.’; |
| --- | --- |

(ii)

the following subparagraphs are added:

‘The product specification may contain a description of the contribution of the designation of origin or geographical indication to sustainable development.

Where the wine or wines may be partially de-alcoholised, the product specification shall also contain a description of the partially de-alcoholised wine or wines in accordance with the second subparagraph, point (b), mutatis mutandis, and, where applicable, the specific oenological practices used to make the partially de-alcoholised wine or wines, as well as the relevant restrictions on making them.’;

mutatis mutandis

| (22) | Article 96 is amended as follows:






  (a) | paragraph 5 is replaced by the following:

  ‘5.   If the Member State assessing the application considers that the requirements are fulfilled, it shall carry out a national procedure which ensures adequate publication of the product specification at least on the Internet and forward the application to the Commission.
  When forwarding an application for protection to the Commission under the first subparagraph of this paragraph, the Member State shall include a declaration that it considers that the application lodged by the applicant meets the conditions for protection under this Section and the provisions adopted pursuant thereto and that it certifies that the single document referred to in Article 94(1), point (d), constitutes a faithful summary of the product specification.
  Member States shall inform the Commission of any admissible oppositions submitted under the national procedure.’; |
| --- | --- | --- |

(22)

Article 96 is amended as follows:

(a)

paragraph 5 is replaced by the following:

‘5.   If the Member State assessing the application considers that the requirements are fulfilled, it shall carry out a national procedure which ensures adequate publication of the product specification at least on the Internet and forward the application to the Commission.

When forwarding an application for protection to the Commission under the first subparagraph of this paragraph, the Member State shall include a declaration that it considers that the application lodged by the applicant meets the conditions for protection under this Section and the provisions adopted pursuant thereto and that it certifies that the single document referred to in Article 94(1), point (d), constitutes a faithful summary of the product specification.

Member States shall inform the Commission of any admissible oppositions submitted under the national procedure.’;

| (b) | the following paragraph is added:

  ‘6.   The Member State shall inform the Commission without delay if any proceedings are initiated before a national court or other national body concerning an application for protection that the Member State has forwarded to the Commission, in accordance with paragraph 5, and if the application has been invalidated at national level by an immediately applicable but not final judicial decision.’; |
| --- | --- |

(b)

the following paragraph is added:

‘6.   The Member State shall inform the Commission without delay if any proceedings are initiated before a national court or other national body concerning an application for protection that the Member State has forwarded to the Commission, in accordance with paragraph 5, and if the application has been invalidated at national level by an immediately applicable but not final judicial decision.’;

| (23) | in Article 97, paragraphs 2, 3 and 4 are replaced by the following:

  ‘2.   The Commission shall examine applications for protection that it receives in accordance with Article 96(5). The Commission shall check that the applications contain the required information and that they do not contain manifest errors, taking into account the outcome of the preliminary national procedure carried out by the Member State concerned. That scrutiny shall focus in particular on the single document referred to in Article 94(1), point (d).
  Scrutiny by the Commission should not exceed a period of six months from the date of receipt of the application from the Member State. Where that period is exceeded, the Commission shall inform the applicants of the reasons for the delay, in writing.


  3.   The Commission shall be exempted from the obligation to meet the deadline to perform the scrutiny referred to in paragraph 2, second subparagraph, and to inform the applicant of the reasons for the delay where it receives a communication from a Member State, concerning an application for registration lodged with the Commission in accordance with Article 96(5), which either:






  (a) | informs the Commission that the application has been invalidated at national level by an immediately applicable but not final judicial decision; or |
| --- | --- | --- |

(23)

in Article 97, paragraphs 2, 3 and 4 are replaced by the following:

‘2.   The Commission shall examine applications for protection that it receives in accordance with Article 96(5). The Commission shall check that the applications contain the required information and that they do not contain manifest errors, taking into account the outcome of the preliminary national procedure carried out by the Member State concerned. That scrutiny shall focus in particular on the single document referred to in Article 94(1), point (d).

Scrutiny by the Commission should not exceed a period of six months from the date of receipt of the application from the Member State. Where that period is exceeded, the Commission shall inform the applicants of the reasons for the delay, in writing.

3.   The Commission shall be exempted from the obligation to meet the deadline to perform the scrutiny referred to in paragraph 2, second subparagraph, and to inform the applicant of the reasons for the delay where it receives a communication from a Member State, concerning an application for registration lodged with the Commission in accordance with Article 96(5), which either:

(a)

informs the Commission that the application has been invalidated at national level by an immediately applicable but not final judicial decision; or

| (b) | requests the Commission to suspend the scrutiny referred to in paragraph 2 because national judicial proceedings have been initiated to challenge the validity of the application and the Member State considers that those proceedings are based on valid grounds. |
| --- | --- |

(b)

requests the Commission to suspend the scrutiny referred to in paragraph 2 because national judicial proceedings have been initiated to challenge the validity of the application and the Member State considers that those proceedings are based on valid grounds.

The exemption shall have effect until the Commission is informed by the Member State that the original application has been restored or that the Member State withdraws its request for suspension.

4.   Where, on the basis of the scrutiny carried out pursuant to paragraph 2 of this Article, the Commission considers that the conditions laid down in Articles 93, 100 and 101 are met, it shall adopt implementing acts concerning the publication, in the Official Journal of the European Union, of the single document referred to in Article 94(1), point (d), and of the reference to the publication of the product specification made in the course of the preliminary national procedure. Those implementing acts shall be adopted without applying the procedure referred to in Article 229(2) or (3).

Where, on the basis of the scrutiny carried out pursuant to paragraph 2 of this Article, the Commission considers that the conditions laid down in Articles 93, 100 and 101 are not met, it shall adopt implementing acts rejecting the application.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 229(2).’;

| (24) | Articles 98 and 99 are replaced by the following:

  ‘Article 98
  Objection procedure

  1.   Within three months from the date of publication of the single document referred to in Article 94(1), point (d), in the Official Journal of the European Union, the authorities of a Member State or of a third country, or any natural or legal person residing or established in a third country and having a legitimate interest, may submit a reasoned statement of objection to the Commission opposing the proposed protection.
  Any natural or legal person residing or established in a Member State other than the Member State that forwarded the application for protection and having a legitimate interest, may submit the statement of objection via the authorities of the Member State in which it is resident or established within a time limit permitting a statement of objections to be submitted pursuant to the first subparagraph.


  2.   If the Commission considers that the objection is admissible, it shall invite the authority or natural or legal person that lodged the objection and the authority or natural or legal person that lodged the application for protection to engage in appropriate consultations for a reasonable period that shall not exceed three months. The invitation shall be issued within a period of five months from the date on which the application for protection to which the reasoned statement of objection relates was published in the Official Journal of the European Union. The invitation shall be accompanied by a copy of the reasoned statement of objection. At any time during these three months, the Commission may extend the deadline for the consultations by a maximum of three months at the request of the authority or natural or legal person that lodged the application.


  3.   The authority or person that lodged the objection and the authority or person that lodged the application for protection shall start the consultations referred to in paragraph 2 without undue delay. They shall provide each other with the information necessary to assess whether the application for protection complies with this Regulation and the provisions adopted pursuant thereto.


  4.   If the authority or person that lodged the objection and the authority or person that lodged the application for protection reach an agreement, either the applicant established in the third country or the authorities of the Member State or of the third country from which the application for protection was lodged shall notify the Commission of the results of the consultations and of all the factors which enabled that agreement to be reached, including the opinions of the parties. If the details published pursuant to Article 97(4) have been substantially amended, the Commission shall repeat the scrutiny referred to in Article 97(2) after a national procedure ensuring adequate publication of those amended details has been carried out. Where, following the agreement, there are no amendments to the product specification or where the amendments to the product specification are not substantial, the Commission shall adopt a decision in accordance with Article 99(1) conferring protection on the designation of origin or geographical indication, notwithstanding the receipt of an admissible statement of objection.


  5.   If no agreement is reached, either the applicant established in the third country or the authorities of the Member State or of the third country from which the application for protection was lodged shall notify the Commission of the results of the consultations carried out and of all the related information and documents. The Commission shall adopt a decision in accordance with Article 99(2) either conferring protection or rejecting the application.



  Article 99
  Decision on protection

  1.   Where the Commission has not received an admissible statement of objection in accordance with Article 98, it shall adopt implementing acts conferring protection. Those implementing acts shall be adopted without applying the procedure referred to in Article 229(2) or (3).


  2.   Where the Commission has received an admissible statement of objection, it shall adopt implementing acts either conferring protection or rejecting the application. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 229(2).


  3.   Protection conferred under this Article is without prejudice to the obligation of producers to comply with other Union rules, in particular those relating to the placing of products on the market and to food labelling.’; |
| --- | --- |

(24)

Articles 98 and 99 are replaced by the following:

‘Article 98

Objection procedure

1.   Within three months from the date of publication of the single document referred to in Article 94(1), point (d), in the Official Journal of the European Union, the authorities of a Member State or of a third country, or any natural or legal person residing or established in a third country and having a legitimate interest, may submit a reasoned statement of objection to the Commission opposing the proposed protection.

Any natural or legal person residing or established in a Member State other than the Member State that forwarded the application for protection and having a legitimate interest, may submit the statement of objection via the authorities of the Member State in which it is resident or established within a time limit permitting a statement of objections to be submitted pursuant to the first subparagraph.

2.   If the Commission considers that the objection is admissible, it shall invite the authority or natural or legal person that lodged the objection and the authority or natural or legal person that lodged the application for protection to engage in appropriate consultations for a reasonable period that shall not exceed three months. The invitation shall be issued within a period of five months from the date on which the application for protection to which the reasoned statement of objection relates was published in the Official Journal of the European Union. The invitation shall be accompanied by a copy of the reasoned statement of objection. At any time during these three months, the Commission may extend the deadline for the consultations by a maximum of three months at the request of the authority or natural or legal person that lodged the application.

3.   The authority or person that lodged the objection and the authority or person that lodged the application for protection shall start the consultations referred to in paragraph 2 without undue delay. They shall provide each other with the information necessary to assess whether the application for protection complies with this Regulation and the provisions adopted pursuant thereto.

4.   If the authority or person that lodged the objection and the authority or person that lodged the application for protection reach an agreement, either the applicant established in the third country or the authorities of the Member State or of the third country from which the application for protection was lodged shall notify the Commission of the results of the consultations and of all the factors which enabled that agreement to be reached, including the opinions of the parties. If the details published pursuant to Article 97(4) have been substantially amended, the Commission shall repeat the scrutiny referred to in Article 97(2) after a national procedure ensuring adequate publication of those amended details has been carried out. Where, following the agreement, there are no amendments to the product specification or where the amendments to the product specification are not substantial, the Commission shall adopt a decision in accordance with Article 99(1) conferring protection on the designation of origin or geographical indication, notwithstanding the receipt of an admissible statement of objection.

5.   If no agreement is reached, either the applicant established in the third country or the authorities of the Member State or of the third country from which the application for protection was lodged shall notify the Commission of the results of the consultations carried out and of all the related information and documents. The Commission shall adopt a decision in accordance with Article 99(2) either conferring protection or rejecting the application.

Article 99

Decision on protection

1.   Where the Commission has not received an admissible statement of objection in accordance with Article 98, it shall adopt implementing acts conferring protection. Those implementing acts shall be adopted without applying the procedure referred to in Article 229(2) or (3).

2.   Where the Commission has received an admissible statement of objection, it shall adopt implementing acts either conferring protection or rejecting the application. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 229(2).

3.   Protection conferred under this Article is without prejudice to the obligation of producers to comply with other Union rules, in particular those relating to the placing of products on the market and to food labelling.’;

| (25) | Article 102 is replaced by the following:

  ‘Article 102
  Relationship with trade marks

  1.   Where a designation of origin or a geographical indication is registered under this Regulation, the registration of a trade mark the use of which would contravene Article 103(2), and which relates to a product falling under one of the categories listed in Annex VII, Part II, shall be refused if the application for registration of the trade mark was submitted after the date of submission of the registration application in respect of the designation of origin or the geographical indication to the Commission.
  Trade marks registered in breach of the first subparagraph shall be invalidated.


  2.   Without prejudice to Article 101(2) of this Regulation, a trade mark the use of which contravenes Article 103(2) of this Regulation, which has been applied for, registered or established by use, if that possibility is provided for by the legislation concerned, in good faith within the territory of the Union, before the date on which the application for protection of the designation of origin or geographical indication was submitted to the Commission, may continue to be used and renewed, notwithstanding the registration of a designation of origin or geographical indication, provided that no grounds for the trade mark’s invalidity or revocation exist under Directive (EU) 2015/2436 of the European Parliament and of the Council (*3) or under Regulation (EU) 2017/1001 of the European Parliament and of the Council (*4).
  In such cases, the use of the designation of origin or geographical indication shall be permitted as well as use of the relevant trade marks.



  (*3)  Directive (EU) 2015/2436 of the European Parliament and of the Council of 16 December 2015 to approximate the laws of the Member States relating to trade marks (OJ L 336, 23.12.2015, p. 1)."


  (*4)  Regulation (EU) 2017/1001 of the European Parliament and of the Council of 14 June 2017 on the European Union trade mark (OJ L 154, 16.6.2017, p. 1).’;" |
| --- | --- |

(25)

Article 102 is replaced by the following:

‘Article 102

Relationship with trade marks

1.   Where a designation of origin or a geographical indication is registered under this Regulation, the registration of a trade mark the use of which would contravene Article 103(2), and which relates to a product falling under one of the categories listed in Annex VII, Part II, shall be refused if the application for registration of the trade mark was submitted after the date of submission of the registration application in respect of the designation of origin or the geographical indication to the Commission.

Trade marks registered in breach of the first subparagraph shall be invalidated.

2.   Without prejudice to Article 101(2) of this Regulation, a trade mark the use of which contravenes Article 103(2) of this Regulation, which has been applied for, registered or established by use, if that possibility is provided for by the legislation concerned, in good faith within the territory of the Union, before the date on which the application for protection of the designation of origin or geographical indication was submitted to the Commission, may continue to be used and renewed, notwithstanding the registration of a designation of origin or geographical indication, provided that no grounds for the trade mark’s invalidity or revocation exist under Directive (EU) 2015/2436 of the European Parliament and of the Council (*3) or under Regulation (EU) 2017/1001 of the European Parliament and of the Council (*4).

In such cases, the use of the designation of origin or geographical indication shall be permitted as well as use of the relevant trade marks.

(*3)  Directive (EU) 2015/2436 of the European Parliament and of the Council of 16 December 2015 to approximate the laws of the Member States relating to trade marks (OJ L 336, 23.12.2015, p. 1)."

*3

(*4)  Regulation (EU) 2017/1001 of the European Parliament and of the Council of 14 June 2017 on the European Union trade mark (OJ L 154, 16.6.2017, p. 1).’;"

*4

| (26) | Article 103 is amended as follows:






  (a) | in paragraph 2, points (a) and (b) are replaced by the following:






  ‘(a) | any direct or indirect commercial use of that protected name, including the use for products used as ingredients:






  (i) | by comparable products not complying with the product specification of the protected name; or |
| --- | --- | --- | --- | --- |

(26)

Article 103 is amended as follows:

(a)

in paragraph 2, points (a) and (b) are replaced by the following:

‘(a)

any direct or indirect commercial use of that protected name, including the use for products used as ingredients:

(i)

by comparable products not complying with the product specification of the protected name; or

| (ii) | in so far as such use exploits, weakens or dilutes the reputation of a designation of origin or a geographical indication; |
| --- | --- |

(ii)

in so far as such use exploits, weakens or dilutes the reputation of a designation of origin or a geographical indication;

| (b) | any misuse, imitation or evocation, even if the true origin of the product or service is indicated or if the protected name is translated, transcripted or transliterated or accompanied by an expression such as “style”, “type”, “method”, “as produced in”, “imitation”, “flavour”, “like” or similar, including where those products are used as ingredients;’; |
| --- | --- |

(b)

any misuse, imitation or evocation, even if the true origin of the product or service is indicated or if the protected name is translated, transcripted or transliterated or accompanied by an expression such as “style”, “type”, “method”, “as produced in”, “imitation”, “flavour”, “like” or similar, including where those products are used as ingredients;’;

| (b) | the following paragraph is added:

  ‘4.   The protection referred to in paragraph 2 also applies with regard to:






  (a) | goods entering the customs territory of the Union without being released for free circulation within the customs territory of the Union; and |
| --- | --- | --- |

(b)

the following paragraph is added:

‘4.   The protection referred to in paragraph 2 also applies with regard to:

(a)

goods entering the customs territory of the Union without being released for free circulation within the customs territory of the Union; and

| (b) | goods sold by means of distance selling, such as electronic commerce. |
| --- | --- |

(b)

goods sold by means of distance selling, such as electronic commerce.

For goods entering the customs territory of the Union without being released for free circulation within that territory, the group of producers or any operator that is entitled to use the protected designation of origin or protected geographical indication shall be entitled to prevent all third parties from bringing goods, in the course of trade, into the Union without being released for free circulation there, where such goods, including packaging, come from third countries and bear without authorisation the protected designation of origin or protected geographical indication.’;

| (27) | Article 105 is replaced by the following:

  ‘Article 105
  Amendments to product specifications

  1.   An applicant satisfying the conditions laid down in Article 95 may apply for approval of an amendment to the product specification of a protected designation of origin or of a protected geographical indication, in particular to take account of developments in scientific and technical knowledge or to modify the demarcation of the geographical area referred to in Article 94(2), second subparagraph, point (d). Applications shall describe and state reasons for the amendments requested.


  2.   Amendments to a product specification shall be classified into two categories as regards their importance: Union amendments requiring an objection procedure at Union level and standard amendments to be dealt with at Member State or third country level.
  For the purposes of this Regulation, “Union amendment” means an amendment to a product specification that:






  (a) | includes a change in the name of the protected designation of origin or the protected geographical indication; |
| --- | --- | --- |

(27)

Article 105 is replaced by the following:

‘Article 105

Amendments to product specifications

1.   An applicant satisfying the conditions laid down in Article 95 may apply for approval of an amendment to the product specification of a protected designation of origin or of a protected geographical indication, in particular to take account of developments in scientific and technical knowledge or to modify the demarcation of the geographical area referred to in Article 94(2), second subparagraph, point (d). Applications shall describe and state reasons for the amendments requested.

2.   Amendments to a product specification shall be classified into two categories as regards their importance: Union amendments requiring an objection procedure at Union level and standard amendments to be dealt with at Member State or third country level.

For the purposes of this Regulation, “Union amendment” means an amendment to a product specification that:

(a)

includes a change in the name of the protected designation of origin or the protected geographical indication;

| (b) | consists of a change, a deletion or an addition of a category of grapevine products referred to in Annex VII, Part II; |
| --- | --- |

(b)

consists of a change, a deletion or an addition of a category of grapevine products referred to in Annex VII, Part II;

| (c) | risks voiding the link referred to in Article 93(1), point (a)(i), for protected designations of origin, or the link referred to in Article 93(1), point (b)(i), for protected geographical indications; or |
| --- | --- |

(c)

risks voiding the link referred to in Article 93(1), point (a)(i), for protected designations of origin, or the link referred to in Article 93(1), point (b)(i), for protected geographical indications; or

| (d) | entails further restrictions on the marketing of the product.

  “Standard amendment” means any amendment to a product specification that is not a Union amendment.

  “Temporary amendment” means a standard amendment concerning a temporary change in the product specification resulting from the imposition of obligatory sanitary and phytosanitary measures by the public authorities or linked to natural disasters or adverse weather conditions formally recognised by the competent authorities. |
| --- | --- |

(d)

entails further restrictions on the marketing of the product.

“Standard amendment” means any amendment to a product specification that is not a Union amendment.

“Temporary amendment” means a standard amendment concerning a temporary change in the product specification resulting from the imposition of obligatory sanitary and phytosanitary measures by the public authorities or linked to natural disasters or adverse weather conditions formally recognised by the competent authorities.

3.   Union amendments shall be approved by the Commission. The approval procedure shall follow the procedure laid down in Article 94 and Articles 96 to 99, mutatis mutandis.

Applications for approval of Union amendments submitted by third countries or by third country producers shall contain proof that the requested amendment complies with the laws on the protection of designations of origin or geographical indications in force in that third country.

Applications for approval of Union amendments shall relate exclusively to Union amendments. If an application for a Union amendment also relates to standard amendments, the parts relating to standard amendments shall be deemed as not having been submitted, and the procedure for Union amendments shall apply only to the parts relating to that Union amendment.

The scrutiny of such applications shall focus on the proposed Union amendments.

4.   Standard amendments shall be approved and made public by Member States in whose territory the geographical area of the product concerned is located and communicated to the Commission.

As regards third countries, amendments shall be approved in accordance with the law applicable in the third country concerned.’;

| (28) | Article 106 is replaced by the following:

  ‘Article 106
  Cancellation
  The Commission may, on its own initiative or at the duly substantiated request of a Member State, a third country, or a natural or legal person having a legitimate interest, adopt implementing acts cancelling the protection of a designation of origin or a geographical indication in one or more of the following circumstances:






  (a) | where compliance with the corresponding product specification is no longer guaranteed; |
| --- | --- | --- |

(28)

Article 106 is replaced by the following:

‘Article 106

Cancellation

The Commission may, on its own initiative or at the duly substantiated request of a Member State, a third country, or a natural or legal person having a legitimate interest, adopt implementing acts cancelling the protection of a designation of origin or a geographical indication in one or more of the following circumstances:

(a)

where compliance with the corresponding product specification is no longer guaranteed;

| (b) | where no product has been placed on the market bearing the designation of origin or geographical indication for at least seven consecutive years; |
| --- | --- |

(b)

where no product has been placed on the market bearing the designation of origin or geographical indication for at least seven consecutive years;

| (c) | where an applicant satisfying the conditions laid down in Article 95 declares that it no longer wishes to maintain the protection of a designation of origin or a geographical indication. |
| --- | --- |

(c)

where an applicant satisfying the conditions laid down in Article 95 declares that it no longer wishes to maintain the protection of a designation of origin or a geographical indication.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 229(2).’;

| (29) | the following Article is inserted:

  ‘Article 106a
  Temporary labelling and presentation
  After an application for the protection of a designation of origin or geographical indication has been forwarded to the Commission, producers may indicate in the labelling and presentation of the product that an application has been filed and use national logos and indications, in compliance with Union law, in particular with Regulation (EU) No 1169/2011.
  Union symbols indicating the protected designation of origin or protected geographical indication and the Union indications “protected designation of origin” or “protected geographical indication” may appear on the labelling only after the publication of the decision conferring protection on that designation of origin or geographical indication.
  Where an application is rejected, any grapevine products labelled in accordance with the first paragraph may be marketed until the stocks are exhausted.’; |
| --- | --- |

(29)

the following Article is inserted:

‘Article 106a

Temporary labelling and presentation

After an application for the protection of a designation of origin or geographical indication has been forwarded to the Commission, producers may indicate in the labelling and presentation of the product that an application has been filed and use national logos and indications, in compliance with Union law, in particular with Regulation (EU) No 1169/2011.

Union symbols indicating the protected designation of origin or protected geographical indication and the Union indications “protected designation of origin” or “protected geographical indication” may appear on the labelling only after the publication of the decision conferring protection on that designation of origin or geographical indication.

Where an application is rejected, any grapevine products labelled in accordance with the first paragraph may be marketed until the stocks are exhausted.’;

| (30) | Article 111 is deleted; |
| --- | --- |

(30)

Article 111 is deleted;

| (31) | in Part II, Title II, Chapter I, Section 2, the following Subsection is added:

  ‘Subsection 4
  Checks related to designations of origin, geographical indications and traditional terms

  Article 116a
  Checks

  1.   Member States shall take the necessary steps to stop the unlawful use of protected designations of origin, protected geographical indications and protected traditional terms referred to in this Regulation.


  2.   Member States shall designate the competent authority responsible for carrying out checks in respect of the obligations laid down in this Section. To that end, Article 4(2) and (4) and Article 5(1), (4) and (5) of Regulation (EU) 2017/625 of the European Parliament and of the Council (*5) shall apply.


  3.   Within the Union, the competent authority referred to in paragraph 2 of this Article or one or more delegated bodies within the meaning of Article 3, point (5), of Regulation (EU) 2017/625 operating as a product certification body in accordance with the criteria laid down in Title II, Chapter III, of that Regulation, shall verify compliance with product specifications annually, both during the wine production and during or after conditioning.


  4.   The Commission shall adopt implementing acts concerning the following:






  (a) | the communication to be made by the Member States to the Commission; |
| --- | --- | --- |

(31)

in Part II, Title II, Chapter I, Section 2, the following Subsection is added:

‘Subsection 4

Checks related to designations of origin, geographical indications and traditional terms

Article 116a

Checks

1.   Member States shall take the necessary steps to stop the unlawful use of protected designations of origin, protected geographical indications and protected traditional terms referred to in this Regulation.

2.   Member States shall designate the competent authority responsible for carrying out checks in respect of the obligations laid down in this Section. To that end, Article 4(2) and (4) and Article 5(1), (4) and (5) of Regulation (EU) 2017/625 of the European Parliament and of the Council (*5) shall apply.

3.   Within the Union, the competent authority referred to in paragraph 2 of this Article or one or more delegated bodies within the meaning of Article 3, point (5), of Regulation (EU) 2017/625 operating as a product certification body in accordance with the criteria laid down in Title II, Chapter III, of that Regulation, shall verify compliance with product specifications annually, both during the wine production and during or after conditioning.

4.   The Commission shall adopt implementing acts concerning the following:

(a)

the communication to be made by the Member States to the Commission;

| (b) | rules governing the authority responsible for verifying compliance with product specifications, including where the geographical area is in a third country; |
| --- | --- |

(b)

rules governing the authority responsible for verifying compliance with product specifications, including where the geographical area is in a third country;

| (c) | the actions to be implemented by the Member States to prevent the unlawful use of protected designations of origin, protected geographical indications and protected traditional terms; |
| --- | --- |

(c)

the actions to be implemented by the Member States to prevent the unlawful use of protected designations of origin, protected geographical indications and protected traditional terms;

| (d) | the checks and verification to be carried out by the Member States, including testing. |
| --- | --- |

(d)

the checks and verification to be carried out by the Member States, including testing.

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 229(2).

(*5)  Regulation (EU) 2017/625 of the European Parliament and of the Council of 15 March 2017 on official controls and other official activities performed to ensure the application of food and feed law, rules on animal health and welfare, plant health and plant protection products, amending Regulations (EC) No 999/2001, (EC) No 396/2005, (EC) No 1069/2009, (EC) No 1107/2009, (EU) No 1151/2012, (EU) No 652/2014, (EU) 2016/429 and (EU) 2016/2031 of the European Parliament and of the Council, Council Regulations (EC) No 1/2005 and (EC) No 1099/2009 and Council Directives 98/58/EC, 1999/74/EC, 2007/43/EC, 2008/119/EC and 2008/120/EC, and repealing Regulations (EC) No 854/2004 and (EC) No 882/2004 of the European Parliament and of the Council, Council Directives 89/608/EEC, 89/662/EEC, 90/425/EEC, 91/496/EEC, 96/23/EC, 96/93/EC and 97/78/EC and Council Decision 92/438/EEC (Official Controls Regulation) (OJ L 95, 7.4.2017, p. 1).’;"

*5

| (32) | Article 119 is amended as follows:






  (a) | paragraph 1 is amended as follows:






  (i) | point (a) is replaced by the following:






  ‘(a) | the designation for the category of the grapevine product in accordance with Annex VII, Part II. For grapevine products categories defined under Annex VII, Part II, points (1) and points (4) to (9), where such products have undergone a de-alcoholisation treatment in accordance with Annex VIII, Part I, Section E, the designation of the category shall be accompanied by:






  (i) | the term “de-alcoholised” if the actual alcoholic strength of the product is no more than 0,5 % by volume; or |
| --- | --- | --- | --- | --- | --- |

(32)

Article 119 is amended as follows:

(a)

paragraph 1 is amended as follows:

(i)

point (a) is replaced by the following:

‘(a)

the designation for the category of the grapevine product in accordance with Annex VII, Part II. For grapevine products categories defined under Annex VII, Part II, points (1) and points (4) to (9), where such products have undergone a de-alcoholisation treatment in accordance with Annex VIII, Part I, Section E, the designation of the category shall be accompanied by:

(i)

the term “de-alcoholised” if the actual alcoholic strength of the product is no more than 0,5 % by volume; or

| (ii) | the term “partially de-alcoholised” if the actual alcoholic strength of the product is above 0,5 % by volume and is below the minimum actual alcoholic strength of the category before de-alcoholisation.’; |
| --- | --- |

(ii)

the term “partially de-alcoholised” if the actual alcoholic strength of the product is above 0,5 % by volume and is below the minimum actual alcoholic strength of the category before de-alcoholisation.’;

| (ii) | the following points are added:






  ‘(h) | the nutrition declaration pursuant to Article 9(1), point (l), of Regulation (EU) No 1169/2011; |
| --- | --- | --- |

(ii)

the following points are added:

‘(h)

the nutrition declaration pursuant to Article 9(1), point (l), of Regulation (EU) No 1169/2011;

| (i) | the list of ingredients pursuant to Article 9(1), point (b), of Regulation (EU) No 1169/2011; |
| --- | --- |

(i)

the list of ingredients pursuant to Article 9(1), point (b), of Regulation (EU) No 1169/2011;

| (j) | in the case of grapevine products which have undergone a de-alcoholisation treatment in accordance with Annex VIII, Part I, Section E and that have an actual alcoholic strength by volume of less than 10 %, the date of minimum durability pursuant to Article 9(1), point (f), of Regulation (EU) No 1169/2011.’; |
| --- | --- |

(j)

in the case of grapevine products which have undergone a de-alcoholisation treatment in accordance with Annex VIII, Part I, Section E and that have an actual alcoholic strength by volume of less than 10 %, the date of minimum durability pursuant to Article 9(1), point (f), of Regulation (EU) No 1169/2011.’;

| (b) | paragraph 2 is replaced by the following:

  ‘2.   By way of derogation from paragraph 1, point (a), for grapevine products other than those which have undergone a de-alcoholisation treatment in accordance with Annex VIII, Part I, Section E, the reference to the category of the grapevine product may be omitted for wines whose labels include the name of a protected designation of origin or protected geographical indication.’; |
| --- | --- |

(b)

paragraph 2 is replaced by the following:

‘2.   By way of derogation from paragraph 1, point (a), for grapevine products other than those which have undergone a de-alcoholisation treatment in accordance with Annex VIII, Part I, Section E, the reference to the category of the grapevine product may be omitted for wines whose labels include the name of a protected designation of origin or protected geographical indication.’;

| (c) | the following paragraphs are added:

  ‘4.   By way of derogation from paragraph 1, point (h), the nutrition declaration on the package or on a label attached thereto may be limited to the energy value, which may be expressed by using the symbol “E” for energy. In such cases, the full nutrition declaration shall be provided by electronic means identified on the package or on a label attached thereto. That nutrition declaration shall not be displayed with other information intended for sales or marketing purposes and no user data shall be collected or tracked.


  5.   By way of derogation from paragraph 1, point (i), the list of ingredients may be provided by electronic means identified on the package or on a label attached thereto. In such cases, the following requirements apply:






  (a) | no user data shall be collected or tracked; |
| --- | --- | --- |

(c)

the following paragraphs are added:

‘4.   By way of derogation from paragraph 1, point (h), the nutrition declaration on the package or on a label attached thereto may be limited to the energy value, which may be expressed by using the symbol “E” for energy. In such cases, the full nutrition declaration shall be provided by electronic means identified on the package or on a label attached thereto. That nutrition declaration shall not be displayed with other information intended for sales or marketing purposes and no user data shall be collected or tracked.

5.   By way of derogation from paragraph 1, point (i), the list of ingredients may be provided by electronic means identified on the package or on a label attached thereto. In such cases, the following requirements apply:

(a)

no user data shall be collected or tracked;

| (b) | the list of ingredients shall not be displayed with other information intended for sales or marketing purposes; and |
| --- | --- |

(b)

the list of ingredients shall not be displayed with other information intended for sales or marketing purposes; and

| (c) | the indication of the particulars referred to in Article 9(1), point (c), of Regulation (EU) No 1169/2011 shall appear directly on the package or on a label attached thereto. |
| --- | --- |

(c)

the indication of the particulars referred to in Article 9(1), point (c), of Regulation (EU) No 1169/2011 shall appear directly on the package or on a label attached thereto.

The indication referred to in the first subparagraph, point (c), of this paragraph shall comprise the word “contains” followed by the name of the substance or product as listed in Annex II to Regulation (EU) No 1169/2011.’;

| (33) | in Article 122, paragraph 1 is amended as follows:






  (a) | point (b) is amended as follows:






  (i) | point (ii) is deleted; |
| --- | --- | --- | --- |

(33)

in Article 122, paragraph 1 is amended as follows:

(a)

point (b) is amended as follows:

(i)

point (ii) is deleted;

| (ii) | the following point is added:






  ‘(vi) | rules for the indication and designation of ingredients for the application of Article 119(1), point (i).’; |
| --- | --- | --- |

(ii)

the following point is added:

‘(vi)

rules for the indication and designation of ingredients for the application of Article 119(1), point (i).’;

| (b) | in point (c), the following point is added:






  ‘(iii) | terms referring to a holding and the conditions for their use.’; |
| --- | --- | --- |

(b)

in point (c), the following point is added:

‘(iii)

terms referring to a holding and the conditions for their use.’;

| (c) | in point (d), point (i) is replaced by the following:






  ‘(i) | the conditions of use of certain bottle shapes and of closures, and a list of certain specific bottle shapes;’; |
| --- | --- | --- |

(c)

in point (d), point (i) is replaced by the following:

‘(i)

the conditions of use of certain bottle shapes and of closures, and a list of certain specific bottle shapes;’;

| (34) | Part II, Title II, Chapter II, Section 1, is amended as follows:






  (a) | Article 124 is deleted; |
| --- | --- | --- |

(34)

Part II, Title II, Chapter II, Section 1, is amended as follows:

(a)

Article 124 is deleted;

| (b) | the heading ‘Subsection 1’ and its title are deleted; |
| --- | --- |

(b)

the heading ‘Subsection 1’ and its title are deleted;

| (c) | in Article 125, paragraph 3 is replaced by the following:

  ‘3.   Agreements within the trade shall conform to the purchase terms laid down in Annex X.’; |
| --- | --- |

(c)

in Article 125, paragraph 3 is replaced by the following:

‘3.   Agreements within the trade shall conform to the purchase terms laid down in Annex X.’;

| (d) | Subsections 2 and 3, containing Articles 127 to 144, are deleted; |
| --- | --- |

(d)

Subsections 2 and 3, containing Articles 127 to 144, are deleted;

| (35) | in Article 145(3), the first sentence is replaced by the following:

  ‘Member States which provide in their CAP strategic plans for restructuring and conversion of vineyards in accordance with Article 58(1), first subparagraph, point (a), of Regulation (EU) 2021/2115, shall on the basis of the vineyard register submit to the Commission by 1 March each year an updated inventory of their production potential.’; |
| --- | --- |

(35)

in Article 145(3), the first sentence is replaced by the following:

‘Member States which provide in their CAP strategic plans for restructuring and conversion of vineyards in accordance with Article 58(1), first subparagraph, point (a), of Regulation (EU) 2021/2115, shall on the basis of the vineyard register submit to the Commission by 1 March each year an updated inventory of their production potential.’;

| (36) | the following Article is inserted:

  ‘Article 147a
  Payment delays for sales of wine in bulk
  By way of derogation from Article 3(1) of Directive (EU) 2019/633, Member States may, upon request of an interbranch organisation recognised under Article 157 of this Regulation operating in the wine sector, provide that the prohibition referred to in Article 3(1), first subparagraph, point (a), of Directive (EU) 2019/633 does not apply to payments made under supply agreements between producers or resellers of wine and their direct buyers for sales transactions concerning wine in bulk, provided that:






  (a) | specific terms that allow payments to be made after 60 days are included in standard contracts for sales transactions concerning wine in bulk which have been made binding by the Member State pursuant to Article 164 of this Regulation before 30 October 2021 and this extension of the standard contracts is renewed by the Member State as from that date without any significant changes to the terms of payment that would be to the disadvantage of suppliers of wine in bulk; and |
| --- | --- | --- |

(36)

the following Article is inserted:

‘Article 147a

Payment delays for sales of wine in bulk

By way of derogation from Article 3(1) of Directive (EU) 2019/633, Member States may, upon request of an interbranch organisation recognised under Article 157 of this Regulation operating in the wine sector, provide that the prohibition referred to in Article 3(1), first subparagraph, point (a), of Directive (EU) 2019/633 does not apply to payments made under supply agreements between producers or resellers of wine and their direct buyers for sales transactions concerning wine in bulk, provided that:

(a)

specific terms that allow payments to be made after 60 days are included in standard contracts for sales transactions concerning wine in bulk which have been made binding by the Member State pursuant to Article 164 of this Regulation before 30 October 2021 and this extension of the standard contracts is renewed by the Member State as from that date without any significant changes to the terms of payment that would be to the disadvantage of suppliers of wine in bulk; and

| (b) | the supply agreements between suppliers of wine in bulk and their direct buyers are multiannual or become multiannual.’; |
| --- | --- |

(b)

the supply agreements between suppliers of wine in bulk and their direct buyers are multiannual or become multiannual.’;

| (37) | in Article 148(2), point (c)(i) is replaced by the following:






  ‘(i) | the price payable for the delivery, which shall:






  — | be static and be set out in the contract and/or |
| --- | --- | --- | --- |

(37)

in Article 148(2), point (c)(i) is replaced by the following:

‘(i)

the price payable for the delivery, which shall:

—

be static and be set out in the contract and/or

| — | be calculated by combining various factors set out in the contract, which may include objective indicators, indices and methods of calculation of the final price that are easily accessible and comprehensible and that reflect changes in market conditions, the volume delivered and the quality or composition of the raw milk delivered; those indicators may be based on relevant prices, production and market costs; to that effect, Member States may determine indicators, in accordance with objective criteria based on studies carried out on production and the food supply chain; the parties to the contracts are free to refer to these indicators or any other indicators which they deem relevant,’; |
| --- | --- |

—

be calculated by combining various factors set out in the contract, which may include objective indicators, indices and methods of calculation of the final price that are easily accessible and comprehensible and that reflect changes in market conditions, the volume delivered and the quality or composition of the raw milk delivered; those indicators may be based on relevant prices, production and market costs; to that effect, Member States may determine indicators, in accordance with objective criteria based on studies carried out on production and the food supply chain; the parties to the contracts are free to refer to these indicators or any other indicators which they deem relevant,’;

| (38) | in Article 149(2), point (c)(i) is replaced by the following:






  ‘(i) | the volume of raw milk covered by such negotiations does not exceed 4 % of total Union production,’; |
| --- | --- | --- |

(38)

in Article 149(2), point (c)(i) is replaced by the following:

‘(i)

the volume of raw milk covered by such negotiations does not exceed 4 % of total Union production,’;

| (39) | Article 150 is deleted; |
| --- | --- |

(39)

Article 150 is deleted;

| (40) | Article 151 is amended as follows:






  (a) | the first paragraph is replaced by the following:

  ‘The first purchasers of raw milk shall declare to the competent national authority the quantity of raw milk that has been delivered to them each month and the average price paid. A distinction shall be made between organic and non-organic milk.’; |
| --- | --- | --- |

(40)

Article 151 is amended as follows:

(a)

the first paragraph is replaced by the following:

‘The first purchasers of raw milk shall declare to the competent national authority the quantity of raw milk that has been delivered to them each month and the average price paid. A distinction shall be made between organic and non-organic milk.’;

| (b) | the third paragraph is replaced by the following:

  ‘Member States shall notify the Commission of the quantities of raw milk and the average prices referred to in the first paragraph.’; |
| --- | --- |

(b)

the third paragraph is replaced by the following:

‘Member States shall notify the Commission of the quantities of raw milk and the average prices referred to in the first paragraph.’;

| (41) | Article 152(1), point (c), is amended as follows:






  (a) | point (vii) is replaced by the following:






  ‘(vii) | the management and valorisation of by-products, of residual flows and of waste, in particular to protect the quality of water, soil and landscape, preserving or encouraging biodiversity, and boosting circularity;’; |
| --- | --- | --- | --- |

(41)

Article 152(1), point (c), is amended as follows:

(a)

point (vii) is replaced by the following:

‘(vii)

the management and valorisation of by-products, of residual flows and of waste, in particular to protect the quality of water, soil and landscape, preserving or encouraging biodiversity, and boosting circularity;’;

| (b) | point (x) is replaced by the following:






  ‘(x) | managing mutual funds;’; |
| --- | --- | --- |

(b)

point (x) is replaced by the following:

‘(x)

managing mutual funds;’;

| (42) | Article 153 is amended as follows:






  (a) | in paragraph 2, point (c) is replaced by the following:






  ‘(c) | rules enabling the producer members to scrutinise democratically their organisation and its decisions as well as its accounts and budgets;’; |
| --- | --- | --- | --- |

(42)

Article 153 is amended as follows:

(a)

in paragraph 2, point (c) is replaced by the following:

‘(c)

rules enabling the producer members to scrutinise democratically their organisation and its decisions as well as its accounts and budgets;’;

| (b) | the following paragraph is inserted:

  ‘2a.   The statutes of a producer organisation may provide for the possibility of producer members being in direct contact with purchasers, provided that such direct contact does not jeopardise the concentration of supply and placing of products on the market by the producer organisation. Concentration of supply shall be deemed to have been ensured if the essential elements of the sales such as price, quality and volume are negotiated and determined by the producer organisation.’; |
| --- | --- |

(b)

the following paragraph is inserted:

‘2a.   The statutes of a producer organisation may provide for the possibility of producer members being in direct contact with purchasers, provided that such direct contact does not jeopardise the concentration of supply and placing of products on the market by the producer organisation. Concentration of supply shall be deemed to have been ensured if the essential elements of the sales such as price, quality and volume are negotiated and determined by the producer organisation.’;

| (c) | paragraph 3 is replaced by the following:

  ‘3.   Paragraphs 1, 2 and 2a shall not apply to producer organisations in the milk and milk products sector.’; |
| --- | --- |

(c)

paragraph 3 is replaced by the following:

‘3.   Paragraphs 1, 2 and 2a shall not apply to producer organisations in the milk and milk products sector.’;

| (43) | in Article 154(1), point (b) is replaced by the following:






  ‘(b) | has a minimum number of members and/or covers a minimum volume or value of marketable production, to be laid down by the Member State concerned, in the area where it operates; such provisions shall not prevent the recognition of producer organisations which are dedicated to small-scale production;’; |
| --- | --- | --- |

(43)

in Article 154(1), point (b) is replaced by the following:

‘(b)

has a minimum number of members and/or covers a minimum volume or value of marketable production, to be laid down by the Member State concerned, in the area where it operates; such provisions shall not prevent the recognition of producer organisations which are dedicated to small-scale production;’;

| (44) | Article 157 is amended as follows:






  (a) | in paragraph 1, the introductory wording is replaced by the following:

  ‘1.   Member States may, on request, recognise interbranch organisations at national and regional levels and at the level of the economic areas referred to in Article 164(2) in a specific sector listed in Article 1(2) which:’ |
| --- | --- | --- |

(44)

Article 157 is amended as follows:

(a)

in paragraph 1, the introductory wording is replaced by the following:

‘1.   Member States may, on request, recognise interbranch organisations at national and regional levels and at the level of the economic areas referred to in Article 164(2) in a specific sector listed in Article 1(2) which:’

| (b) | in paragraph 1, point (c) is amended as follows:






  (i) | point (vii) is replaced by the following:






  ‘(vii) | providing the information and carrying out the research necessary to innovate, rationalise, improve and adjust production and, where applicable, the processing and marketing, towards products more suited to market requirements and consumer tastes and expectations, in particular with regard to product quality, including the specific characteristics of products with a protected designation of origin or protected geographical indication, and protection of the environment, climate action, animal health and animal welfare;’; |
| --- | --- | --- | --- |

(b)

in paragraph 1, point (c) is amended as follows:

(i)

point (vii) is replaced by the following:

‘(vii)

providing the information and carrying out the research necessary to innovate, rationalise, improve and adjust production and, where applicable, the processing and marketing, towards products more suited to market requirements and consumer tastes and expectations, in particular with regard to product quality, including the specific characteristics of products with a protected designation of origin or protected geographical indication, and protection of the environment, climate action, animal health and animal welfare;’;

| (ii) | point (xiv) is replaced by the following:






  ‘(xiv) | contributing to the management and developing initiatives for the valorisation of by-products and the reduction and management of waste;’; |
| --- | --- | --- |

(ii)

point (xiv) is replaced by the following:

‘(xiv)

contributing to the management and developing initiatives for the valorisation of by-products and the reduction and management of waste;’;

| (iii) | point (xvi) is replaced by the following:






  ‘(xvi) | promoting and implementing measures to prevent, control and manage animal health, plant-protection and environmental risks, including by setting up and managing mutual funds or by contributing to such funds with a view to paying financial compensation to farmers for costs and economic losses arising from the promotion and implementation of such measures;’; |
| --- | --- | --- |

(iii)

point (xvi) is replaced by the following:

‘(xvi)

promoting and implementing measures to prevent, control and manage animal health, plant-protection and environmental risks, including by setting up and managing mutual funds or by contributing to such funds with a view to paying financial compensation to farmers for costs and economic losses arising from the promotion and implementation of such measures;’;

| (c) | paragraph 1a is replaced by the following:

  ‘1a.   Member States may, on request, decide to grant more than one recognition to an interbranch organisation operating in several sectors referred to in Article 1(2) provided the interbranch organisation fulfils the conditions referred to in paragraph 1 for each sector for which it seeks recognition.’; |
| --- | --- |

(c)

paragraph 1a is replaced by the following:

‘1a.   Member States may, on request, decide to grant more than one recognition to an interbranch organisation operating in several sectors referred to in Article 1(2) provided the interbranch organisation fulfils the conditions referred to in paragraph 1 for each sector for which it seeks recognition.’;

| (d) | paragraph 3 is deleted. |
| --- | --- |

(d)

paragraph 3 is deleted.

| (45) | Article 158 is amended as follows:






  (a) | in paragraph 1, the following point is inserted:






  ‘(ca) | strive for a balanced representation of the organisations in the stages of the supply chain referred to in Article 157(1), point (a), that constitute the interbranch organisation;’; |
| --- | --- | --- | --- |

(45)

Article 158 is amended as follows:

(a)

in paragraph 1, the following point is inserted:

‘(ca)

strive for a balanced representation of the organisations in the stages of the supply chain referred to in Article 157(1), point (a), that constitute the interbranch organisation;’;

| (b) | paragraph 4 is replaced by the following:

  ‘4.   Member States may recognise interbranch organisations in all sectors existing prior to 1 January 2014, whether they were recognised on request or established by law, even though they do not fulfil the condition laid down in Article 157(1), point (b).’; |
| --- | --- |

(b)

paragraph 4 is replaced by the following:

‘4.   Member States may recognise interbranch organisations in all sectors existing prior to 1 January 2014, whether they were recognised on request or established by law, even though they do not fulfil the condition laid down in Article 157(1), point (b).’;

| (46) | Article 163 is amended as follows:






  (a) | paragraphs 1 and 2 are replaced by the following:

  ‘1.   Member States may recognise interbranch organisations in the milk and milk products sector provided that such organisations:






  (a) | fulfil the requirements laid down in Article 157; |
| --- | --- | --- | --- |

(46)

Article 163 is amended as follows:

(a)

paragraphs 1 and 2 are replaced by the following:

‘1.   Member States may recognise interbranch organisations in the milk and milk products sector provided that such organisations:

(a)

fulfil the requirements laid down in Article 157;

| (b) | carry out their activities in one or more regions in the territory concerned; |
| --- | --- |

(b)

carry out their activities in one or more regions in the territory concerned;

| (c) | account for a significant share of the economic activities referred to in Article 157(1), point (a); |
| --- | --- |

(c)

account for a significant share of the economic activities referred to in Article 157(1), point (a);

| (d) | do not themselves engage in the production of, the processing of, or the trade in, products in the milk and milk products sector. |
| --- | --- |

(d)

do not themselves engage in the production of, the processing of, or the trade in, products in the milk and milk products sector.

2.   Member States may decide that interbranch organisations which have been recognised before 2 April 2012 on the basis of national law and which fulfil the conditions laid down in paragraph 1 of this Article are to be considered to be recognised as interbranch organisations under Article 157(1).’;

| (b) | in paragraph 3, point (d) is replaced by the following:






  ‘(d) | withdraw recognition if the requirements and conditions for recognition laid down in this Article are no longer fulfilled;’; |
| --- | --- | --- |

(b)

in paragraph 3, point (d) is replaced by the following:

‘(d)

withdraw recognition if the requirements and conditions for recognition laid down in this Article are no longer fulfilled;’;

| (47) | Article 164 is amended as follows:






  (a) | paragraph 2 is replaced by the following:

  ‘2.   For the purposes of this Section, an “economic area” means a geographical zone made up of adjoining or neighbouring production regions in which production and marketing conditions are homogeneous, or, for products with a protected designation of origin or protected geographical indication recognised under Union law, the geographical zone specified in the product specification.’; |
| --- | --- | --- |

(47)

Article 164 is amended as follows:

(a)

paragraph 2 is replaced by the following:

‘2.   For the purposes of this Section, an “economic area” means a geographical zone made up of adjoining or neighbouring production regions in which production and marketing conditions are homogeneous, or, for products with a protected designation of origin or protected geographical indication recognised under Union law, the geographical zone specified in the product specification.’;

| (b) | paragraph 4 is amended as follows:






  (i) | points (l), (m) and (n) are replaced by the following:






  ‘(l) | the use of certified seed except when used for organic production within the meaning of Regulation (EU) 2018/848, and the monitoring of product quality; |
| --- | --- | --- | --- |

(b)

paragraph 4 is amended as follows:

(i)

points (l), (m) and (n) are replaced by the following:

‘(l)

the use of certified seed except when used for organic production within the meaning of Regulation (EU) 2018/848, and the monitoring of product quality;

| (m) | the prevention and management of phytosanitary, animal health, food safety or environmental risks; |
| --- | --- |

(m)

the prevention and management of phytosanitary, animal health, food safety or environmental risks;

| (n) | the management and valorisation of by-products.’; |
| --- | --- |

(n)

the management and valorisation of by-products.’;

| (ii) | the second subparagraph is replaced by the following:

  ‘Those rules shall not cause any damage to other operators, nor prevent the entry of new operators, in the Member State concerned or the Union and shall not have any of the effects listed in Article 210(4) or be otherwise incompatible with Union law or national rules in force.’; |
| --- | --- |

(ii)

the second subparagraph is replaced by the following:

‘Those rules shall not cause any damage to other operators, nor prevent the entry of new operators, in the Member State concerned or the Union and shall not have any of the effects listed in Article 210(4) or be otherwise incompatible with Union law or national rules in force.’;

| (48) | Article 165 is replaced by the following:

  ‘Article 165
  Financial contributions of non-members
  Where rules of a recognised producer organisation, a recognised association of producer organisations or a recognised interbranch organisation are extended under Article 164 and the activities covered by those rules are in the general economic interest of economic operators whose activities relate to the products concerned, the Member State which has granted recognition may, after consulting the relevant stakeholders, decide that individual economic operators or groups which are not members of the organisation but which benefit from those activities shall pay the organisation all or part of the financial contributions paid by its members to the extent that such contributions are intended to cover costs directly incurred as a result of pursuing one or more of the activities in question. Any organisation which receives contributions from non-members under this Article, if requested by a member or a non-member that contributes financially to the activities of the organisation, shall make available those parts of its yearly budget which relate to the pursuit of activities listed in Article 164(4).’; |
| --- | --- |

(48)

Article 165 is replaced by the following:

‘Article 165

Financial contributions of non-members

Where rules of a recognised producer organisation, a recognised association of producer organisations or a recognised interbranch organisation are extended under Article 164 and the activities covered by those rules are in the general economic interest of economic operators whose activities relate to the products concerned, the Member State which has granted recognition may, after consulting the relevant stakeholders, decide that individual economic operators or groups which are not members of the organisation but which benefit from those activities shall pay the organisation all or part of the financial contributions paid by its members to the extent that such contributions are intended to cover costs directly incurred as a result of pursuing one or more of the activities in question. Any organisation which receives contributions from non-members under this Article, if requested by a member or a non-member that contributes financially to the activities of the organisation, shall make available those parts of its yearly budget which relate to the pursuit of activities listed in Article 164(4).’;

| (49) | the following Article is inserted:

  ‘Article 166a
  Regulation of supply of agricultural products with a protected designation of origin or protected geographical indication

  1.   Without prejudice to Articles 167 and 167a of this Regulation, at the request of a producer organisation or association of producer organisations recognised under Article 152(1) or 161(1) of this Regulation, an interbranch organisation recognised under Article 157(1) of this Regulation, a group of operators as referred to in Article 3(2) of Regulation (EU) No 1151/2012 or a group of producers as referred to in Article 95(1) of this Regulation, Member States may lay down, for a limited period of time, binding rules for the regulation of the supply of agricultural products referred to in Article 1(2) of this Regulation benefiting from a protected designation of origin or from a protected geographical indication under Article 5(1) and (2) of Regulation (EU) No 1151/2012 or under Article 93(1), points (a) and (b), of this Regulation.


  2.   The rules referred to in paragraph 1 of this Article shall be subject to the existence of a prior agreement that is to be concluded between at least two-thirds of the producers of the product as referred to in paragraph 1 of this Article or their representatives, accounting for at least two-thirds of the production of that product in the geographical area referred to in Article 7(1), point (c), of Regulation (EU) No 1151/2012 or Article 93(1), points (a)(iii) and (b)(iv), of this Regulation for wine. Where the production of the product referred to in paragraph 1 of this Article involves processing and the product specification referred to in Article 7(1) of Regulation (EU) No 1151/2012 or in Article 94(2) of this Regulation restricts the sourcing of the raw material to a specific geographical area, Member States shall require, for the purposes of the rules to be laid down according to paragraph 1 of this Article:






  (a) | that the producers of that raw material in the specific geographical area be consulted prior to the conclusion of the agreement referred to in this paragraph; or |
| --- | --- | --- |

(49)

the following Article is inserted:

‘Article 166a

Regulation of supply of agricultural products with a protected designation of origin or protected geographical indication

1.   Without prejudice to Articles 167 and 167a of this Regulation, at the request of a producer organisation or association of producer organisations recognised under Article 152(1) or 161(1) of this Regulation, an interbranch organisation recognised under Article 157(1) of this Regulation, a group of operators as referred to in Article 3(2) of Regulation (EU) No 1151/2012 or a group of producers as referred to in Article 95(1) of this Regulation, Member States may lay down, for a limited period of time, binding rules for the regulation of the supply of agricultural products referred to in Article 1(2) of this Regulation benefiting from a protected designation of origin or from a protected geographical indication under Article 5(1) and (2) of Regulation (EU) No 1151/2012 or under Article 93(1), points (a) and (b), of this Regulation.

2.   The rules referred to in paragraph 1 of this Article shall be subject to the existence of a prior agreement that is to be concluded between at least two-thirds of the producers of the product as referred to in paragraph 1 of this Article or their representatives, accounting for at least two-thirds of the production of that product in the geographical area referred to in Article 7(1), point (c), of Regulation (EU) No 1151/2012 or Article 93(1), points (a)(iii) and (b)(iv), of this Regulation for wine. Where the production of the product referred to in paragraph 1 of this Article involves processing and the product specification referred to in Article 7(1) of Regulation (EU) No 1151/2012 or in Article 94(2) of this Regulation restricts the sourcing of the raw material to a specific geographical area, Member States shall require, for the purposes of the rules to be laid down according to paragraph 1 of this Article:

(a)

that the producers of that raw material in the specific geographical area be consulted prior to the conclusion of the agreement referred to in this paragraph; or

| (b) | that at least two-thirds of the producers of the raw material or their representatives, representing at least two-thirds of the production of the raw material used in the processing in the specific geographical area, are also parties to the agreement referred to in this paragraph. |
| --- | --- |

(b)

that at least two-thirds of the producers of the raw material or their representatives, representing at least two-thirds of the production of the raw material used in the processing in the specific geographical area, are also parties to the agreement referred to in this paragraph.

3.   By way of derogation from paragraph 2 of this Article, for the production of cheese benefitting from a protected designation of origin or protected geographic indication, the rules referred to in paragraph 1 of this Article shall be subject to the existence of a prior agreement between at least two-thirds of the milk producers or their representatives representing at least two-thirds of the raw milk used for the production of that cheese and, where relevant, at least two-thirds of the producers of that cheese or their representatives representing at least two-thirds of the production of that cheese in the geographical area referred to in Article 7(1), point (c), of Regulation (EU) No 1151/2012.

For the purpose of the first subparagraph of this paragraph, concerning cheese benefiting from a protected geographical indication, the geographical area of origin of the raw milk, as set in the product specification for the cheese, shall be the same as the geographical area referred to in Article 7(1), point (c), of Regulation (EU) No 1151/2012 relating to that cheese.

4.   The rules referred to in paragraph 1:

| (a) | shall only cover the regulation of supply of the product concerned and, where applicable, the raw material and shall have the aim of adapting the supply of that product to demand; |
| --- | --- |

(a)

shall only cover the regulation of supply of the product concerned and, where applicable, the raw material and shall have the aim of adapting the supply of that product to demand;

| (b) | shall have effect only on the product and, where applicable, the raw material, concerned; |
| --- | --- |

(b)

shall have effect only on the product and, where applicable, the raw material, concerned;

| (c) | may be made binding for no more than three years, but may be renewed after that period following a new request, as referred to in paragraph 1; |
| --- | --- |

(c)

may be made binding for no more than three years, but may be renewed after that period following a new request, as referred to in paragraph 1;

| (d) | shall not damage trade in products other than those concerned by those rules; |
| --- | --- |

(d)

shall not damage trade in products other than those concerned by those rules;

| (e) | shall not relate to any transaction after the first marketing of the product concerned; |
| --- | --- |

(e)

shall not relate to any transaction after the first marketing of the product concerned;

| (f) | shall not allow for price fixing, including where prices are set for guidance or recommendation; |
| --- | --- |

(f)

shall not allow for price fixing, including where prices are set for guidance or recommendation;

| (g) | shall not render unavailable an excessive proportion of the product concerned that would otherwise be available; |
| --- | --- |

(g)

shall not render unavailable an excessive proportion of the product concerned that would otherwise be available;

| (h) | shall not create discrimination, constitute a barrier for new entrants in the market, or lead to small producers being adversely affected; |
| --- | --- |

(h)

shall not create discrimination, constitute a barrier for new entrants in the market, or lead to small producers being adversely affected;

| (i) | shall contribute to maintaining the quality of the product concerned or to the development of the product concerned. |
| --- | --- |

(i)

shall contribute to maintaining the quality of the product concerned or to the development of the product concerned.

| (j) | shall be without prejudice to Article 149 and Article 152(1a). |
| --- | --- |

(j)

shall be without prejudice to Article 149 and Article 152(1a).

5.   The rules referred to in paragraph 1 shall be published in an official publication of the Member State concerned.

6.   Member States shall carry out checks in order to ensure that the conditions laid down in paragraph 4 are complied with. Where the competent national authorities find that such conditions have not been complied with, Member States shall repeal the rules referred to in paragraph 1.

7.   Member States shall notify the Commission forthwith of the rules referred to in paragraph 1 which they have adopted. The Commission shall inform other Member States of any notification of such rules.

8.   The Commission may at any time adopt implementing acts requiring that a Member State repeal the rules laid down by that Member State pursuant to paragraph 1 of this Article if the Commission finds that those rules do not comply with the conditions laid down in paragraph 4 of this Article, prevent or distort competition in a substantial part of the internal market or jeopardise free trade or the attainment of the objectives of Article 39 TFEU. Those implementing acts shall be adopted without applying the procedures referred to in Article 229(2) and (3) of this Regulation.’;

| (50) | in Article 168(4), point (c)(i) is replaced by the following:






  ‘(i) | the price payable for the delivery, which shall:






  — | be static and be set out in the contract and/or |
| --- | --- | --- | --- |

(50)

in Article 168(4), point (c)(i) is replaced by the following:

‘(i)

the price payable for the delivery, which shall:

—

be static and be set out in the contract and/or

| — | be calculated by combining various factors set out in the contract, which may include objective indicators, indices and methods of calculation of the final price, that are easily accessible and comprehensible and that reflect changes in market conditions, the quantities delivered and the quality or composition of the agricultural products delivered; those indicators may be based on relevant prices, production and market costs; to that effect, Member States may determine indicators, in accordance with objective criteria based on studies carried out on production and the food supply chain; the parties to the contracts are free to refer to these indicators or any other indicators which they deem relevant.’; |
| --- | --- |

—

be calculated by combining various factors set out in the contract, which may include objective indicators, indices and methods of calculation of the final price, that are easily accessible and comprehensible and that reflect changes in market conditions, the quantities delivered and the quality or composition of the agricultural products delivered; those indicators may be based on relevant prices, production and market costs; to that effect, Member States may determine indicators, in accordance with objective criteria based on studies carried out on production and the food supply chain; the parties to the contracts are free to refer to these indicators or any other indicators which they deem relevant.’;

| (51) | Article 172 is deleted. |
| --- | --- |

(51)

Article 172 is deleted.

| (52) | Article 172a is replaced by the following:

  ‘Article 172a
  Value sharing
  Without prejudice to any specific value-sharing clauses in the sugar sector, farmers, including associations of farmers, may agree with downstream operators on value sharing clauses, including market bonuses and losses, determining how any evolution of relevant market prices for the products concerned or other commodity markets is to be allocated between them.


  Article 172b
  Guidance by interbranch organisations for the sale of grapes for wines with a protected designation of origin or protected geographical indication
  By way of derogation from Article 101(1) TFEU, interbranch organisations recognised under Article 157 of this Regulation operating in the wine sector may provide non-mandatory price guidance indicators concerning the sale of grapes for the production of wines with a protected designation of origin or protected geographical indication, provided that such guidance does not eliminate competition in respect of a substantial proportion of the products in question.’; |
| --- | --- |

(52)

Article 172a is replaced by the following:

‘Article 172a

Value sharing

Without prejudice to any specific value-sharing clauses in the sugar sector, farmers, including associations of farmers, may agree with downstream operators on value sharing clauses, including market bonuses and losses, determining how any evolution of relevant market prices for the products concerned or other commodity markets is to be allocated between them.

Article 172b

Guidance by interbranch organisations for the sale of grapes for wines with a protected designation of origin or protected geographical indication

By way of derogation from Article 101(1) TFEU, interbranch organisations recognised under Article 157 of this Regulation operating in the wine sector may provide non-mandatory price guidance indicators concerning the sale of grapes for the production of wines with a protected designation of origin or protected geographical indication, provided that such guidance does not eliminate competition in respect of a substantial proportion of the products in question.’;

| (53) | in Article 182(1), the second subparagraph is replaced by the following:

  ‘The trigger volume shall be equal to either 125 %, 110 % or 105 %, depending on whether market access opportunities, defined as imports expressed as a percentage of the corresponding domestic consumption during the three preceding years, are less than or equal to 10 %, greater than 10 % but less than or equal to 30 %, or greater than 30 %, respectively.
  Where domestic consumption is not taken into account, the trigger volume shall be equal to 125 %.’; |
| --- | --- |

(53)

in Article 182(1), the second subparagraph is replaced by the following:

‘The trigger volume shall be equal to either 125 %, 110 % or 105 %, depending on whether market access opportunities, defined as imports expressed as a percentage of the corresponding domestic consumption during the three preceding years, are less than or equal to 10 %, greater than 10 % but less than or equal to 30 %, or greater than 30 %, respectively.

Where domestic consumption is not taken into account, the trigger volume shall be equal to 125 %.’;

| (54) | Articles 192 and 193 are deleted; |
| --- | --- |

(54)

Articles 192 and 193 are deleted;

| (55) | in Chapter IV, the following Article is added:

  ‘Article 193a
  Suspension of import duties for molasses

  1.   The Commission shall be empowered to adopt delegated acts in accordance with Article 227 supplementing this Regulation by establishing rules for the suspension of import duties in whole or in part for molasses falling within CN Code 1703.


  2.   In application of the rules referred to in paragraph 1 of this Article, the Commission may adopt implementing acts to suspend in whole or in part import duties for molasses falling within CN Code 1703, without applying the procedure referred to in Article 229(2) or (3).’; |
| --- | --- |

(55)

in Chapter IV, the following Article is added:

‘Article 193a

Suspension of import duties for molasses

1.   The Commission shall be empowered to adopt delegated acts in accordance with Article 227 supplementing this Regulation by establishing rules for the suspension of import duties in whole or in part for molasses falling within CN Code 1703.

2.   In application of the rules referred to in paragraph 1 of this Article, the Commission may adopt implementing acts to suspend in whole or in part import duties for molasses falling within CN Code 1703, without applying the procedure referred to in Article 229(2) or (3).’;

| (56) | in Part III, Chapter VI, containing Articles 196 to 204, is deleted; |
| --- | --- |

(56)

in Part III, Chapter VI, containing Articles 196 to 204, is deleted;

| (57) | in Article 206, the first paragraph is replaced by the following:

  ‘Save as otherwise provided in this Regulation, and in accordance with Article 42 TFEU, Articles 101 to 106 TFEU and the implementing provisions thereto shall, subject to Articles 207 to 210a of this Regulation, apply to all agreements, decisions and practices referred to in Article 101(1) and Article 102 TFEU which relate to the production of, or trade in, agricultural products.’; |
| --- | --- |

(57)

in Article 206, the first paragraph is replaced by the following:

‘Save as otherwise provided in this Regulation, and in accordance with Article 42 TFEU, Articles 101 to 106 TFEU and the implementing provisions thereto shall, subject to Articles 207 to 210a of this Regulation, apply to all agreements, decisions and practices referred to in Article 101(1) and Article 102 TFEU which relate to the production of, or trade in, agricultural products.’;

| (58) | Article 208 is replaced by the following:

  ‘Article 208
  Dominant position
  For the purposes of this Chapter, “dominant position” means a position of economic strength enjoyed by an undertaking which enables it to prevent effective competition being maintained in the relevant market by giving it the power to behave to an appreciable extent independently of its competitors, of its suppliers or customers, and ultimately of consumers.’; |
| --- | --- |

(58)

Article 208 is replaced by the following:

‘Article 208

Dominant position

For the purposes of this Chapter, “dominant position” means a position of economic strength enjoyed by an undertaking which enables it to prevent effective competition being maintained in the relevant market by giving it the power to behave to an appreciable extent independently of its competitors, of its suppliers or customers, and ultimately of consumers.’;

| (59) | Article 210 is amended as follows:






  (a) | paragraphs 1 and 2 are replaced by the following:

  ‘1.   Article 101(1) TFEU shall not apply to agreements, decisions and concerted practices of interbranch organisations recognised under Article 157 of this Regulation which are necessary in order to meet the objectives listed in Article 157(1), point (c), of this Regulation or, as regards the olive oil and table olives and tobacco sectors, the objectives listed in Article 162 of this Regulation, and which are not incompatible with Union rules under paragraph 4 of this Article.
  Agreements, decisions and concerted practices which fulfil the conditions referred to in the first subparagraph of this paragraph shall not be prohibited, no prior decision to that effect being required.


  2.   Recognised interbranch organisations may request an opinion from the Commission concerning the compatibility of agreements, decisions and concerted practices as referred to in paragraph 1 with this Article. The Commission shall send the requesting interbranch organisation its opinion within four months of receipt of a complete request.
  If the Commission finds at any time after issuing an opinion that the conditions referred to in paragraph 1 of this Article are no longer met, it shall declare that Article 101(1) TFEU shall apply in the future to the agreement, decision or concerted practice in question and inform the interbranch organisation accordingly.
  The Commission may change the content of an opinion at its own initiative or at the request of a Member State, in particular if the requesting interbranch organisation has provided inaccurate information or misused the opinion.’; |
| --- | --- | --- |

(59)

Article 210 is amended as follows:

(a)

paragraphs 1 and 2 are replaced by the following:

‘1.   Article 101(1) TFEU shall not apply to agreements, decisions and concerted practices of interbranch organisations recognised under Article 157 of this Regulation which are necessary in order to meet the objectives listed in Article 157(1), point (c), of this Regulation or, as regards the olive oil and table olives and tobacco sectors, the objectives listed in Article 162 of this Regulation, and which are not incompatible with Union rules under paragraph 4 of this Article.

Agreements, decisions and concerted practices which fulfil the conditions referred to in the first subparagraph of this paragraph shall not be prohibited, no prior decision to that effect being required.

2.   Recognised interbranch organisations may request an opinion from the Commission concerning the compatibility of agreements, decisions and concerted practices as referred to in paragraph 1 with this Article. The Commission shall send the requesting interbranch organisation its opinion within four months of receipt of a complete request.

If the Commission finds at any time after issuing an opinion that the conditions referred to in paragraph 1 of this Article are no longer met, it shall declare that Article 101(1) TFEU shall apply in the future to the agreement, decision or concerted practice in question and inform the interbranch organisation accordingly.

The Commission may change the content of an opinion at its own initiative or at the request of a Member State, in particular if the requesting interbranch organisation has provided inaccurate information or misused the opinion.’;

| (b) | paragraphs 3, 5 and 6 are deleted; |
| --- | --- |

(b)

paragraphs 3, 5 and 6 are deleted;

| (60) | the following Article is inserted:

  ‘Article 210a
  Vertical and horizontal initiatives for sustainability

  1.   Article 101(1) TFEU shall not apply to agreements, decisions and concerted practices of producers of agricultural products that relate to the production of or trade in agricultural products and that aim to apply a sustainability standard higher than mandated by Union or national law, provided that those agreements, decisions and concerted practices only impose restrictions of competition that are indispensable to the attainment of that standard.


  2.   Paragraph 1 applies to agreements, decisions and concerted practices of producers of agricultural products to which several producers are party or to which one or more producers and one or more operators at different levels of the production, processing, and trade in the food supply chain, including distribution, are party.


  3.   For the purposes of paragraph 1, “sustainability standard” means a standard which aims to contribute to one or more of the following objectives:






  (a) | environmental objectives, including climate change mitigation and adaptation, the sustainable use and protection of landscapes, water and soil, the transition to a circular economy, including the reduction of food waste, pollution prevention and control, and the protection and restoration of biodiversity and ecosystems; |
| --- | --- | --- |

(60)

the following Article is inserted:

‘Article 210a

Vertical and horizontal initiatives for sustainability

1.   Article 101(1) TFEU shall not apply to agreements, decisions and concerted practices of producers of agricultural products that relate to the production of or trade in agricultural products and that aim to apply a sustainability standard higher than mandated by Union or national law, provided that those agreements, decisions and concerted practices only impose restrictions of competition that are indispensable to the attainment of that standard.

2.   Paragraph 1 applies to agreements, decisions and concerted practices of producers of agricultural products to which several producers are party or to which one or more producers and one or more operators at different levels of the production, processing, and trade in the food supply chain, including distribution, are party.

3.   For the purposes of paragraph 1, “sustainability standard” means a standard which aims to contribute to one or more of the following objectives:

(a)

environmental objectives, including climate change mitigation and adaptation, the sustainable use and protection of landscapes, water and soil, the transition to a circular economy, including the reduction of food waste, pollution prevention and control, and the protection and restoration of biodiversity and ecosystems;

| (b) | the production of agricultural products in ways that reduce the use of pesticides and manage risks resulting from such use, or that reduce the danger of antimicrobial resistance in agricultural production; and |
| --- | --- |

(b)

the production of agricultural products in ways that reduce the use of pesticides and manage risks resulting from such use, or that reduce the danger of antimicrobial resistance in agricultural production; and

| (c) | animal health and animal welfare. |
| --- | --- |

(c)

animal health and animal welfare.

4.   Agreements, decisions and concerted practices that fulfil the conditions referred to in this Article shall not be prohibited, no prior decision to that effect being required.

5.   The Commission shall issue guidelines for operators concerning the conditions for the application of this Article by 8 December 2023.

6.   From 8 December 2023, producers as referred to in paragraph 1 may request an opinion from the Commission concerning the compatibility of agreements, decisions and concerted practices as referred to in paragraph 1 with this Article. The Commission shall send the applicant its opinion within four months of receipt of a complete request.

If the Commission finds at any time after issuing an opinion that the conditions referred to in paragraphs 1, 3 and 7 of this Article are no longer met, it shall declare that Article 101(1) TFEU shall apply in the future to the agreement, decision or concerted practice in question and inform the producers accordingly.

The Commission may change the content of an opinion at its own initiative or at the request of a Member State, in particular if the applicant has provided inaccurate information or misused the opinion.

7.   The national competition authority as referred to in Article 5 of Regulation (EC) No 1/2003 may decide in individual cases that, in the future, one or more of the agreements, decisions and concerted practices referred to in paragraph 1 are to be modified, discontinued or not take place at all, if it considers that such a decision is necessary in order to prevent competition from being excluded or if it considers that the objectives set out in Article 39 TFEU are jeopardised.

For agreements, decisions and concerted practices covering more than one Member State, the decision referred to in the first subparagraph of this paragraph shall be taken by the Commission without applying the procedures referred to in Article 229(2) and (3).

When acting under the first subparagraph of this paragraph, the national competition authority shall inform the Commission in writing after initiating the first formal measure of the investigation and shall notify the Commission of any resulting decisions without delay after their adoption.

The decisions referred to in this paragraph shall not apply earlier than the date of their notification to the undertakings concerned.’;

| (61) | Article 212 is deleted; |
| --- | --- |

(61)

Article 212 is deleted;

| (62) | Article 214a is replaced by the following:

  ‘Article 214a
  National payments for certain sectors in Finland
  Subject to authorisation by the Commission, for the period 2023-2027, Finland may continue to grant national aids which it granted in 2022 to producers on the basis of this Article provided that:






  (a) | the total amount of income aid is degressive over the whole period and in 2027 does not exceed 67 % of the amount granted in 2022; and |
| --- | --- | --- |

(62)

Article 214a is replaced by the following:

‘Article 214a

National payments for certain sectors in Finland

Subject to authorisation by the Commission, for the period 2023-2027, Finland may continue to grant national aids which it granted in 2022 to producers on the basis of this Article provided that:

(a)

the total amount of income aid is degressive over the whole period and in 2027 does not exceed 67 % of the amount granted in 2022; and

| (b) | prior to any recourse to this possibility, full use has been made of the support schemes under the CAP for the sectors concerned. |
| --- | --- |

(b)

prior to any recourse to this possibility, full use has been made of the support schemes under the CAP for the sectors concerned.

The Commission shall adopt its authorisation without applying the procedure referred to in Article 229(2) or (3) of this Regulation.’;

| (63) | in Article 218(2), the row for the United Kingdom is deleted; |
| --- | --- |

(63)

in Article 218(2), the row for the United Kingdom is deleted;

| (64) | Article 219(1) is amended as follows:






  (a) | the first subparagraph is replaced by the following:

  ‘1.   In order to react efficiently and effectively against threats of market disturbance caused by significant price rises or falls on internal or external markets or other events and circumstances significantly disturbing or threatening to disturb the market concerned, where that situation, or its effects on the market, is likely to continue or deteriorate, the Commission shall be empowered to adopt delegated acts in accordance with Article 227 to take the measures necessary to address that market situation, while respecting any obligations resulting from international agreements concluded in accordance with the TFEU and provided that any other measures available under this Regulation appear to be insufficient or not suitable.’; |
| --- | --- | --- |

(64)

Article 219(1) is amended as follows:

(a)

the first subparagraph is replaced by the following:

‘1.   In order to react efficiently and effectively against threats of market disturbance caused by significant price rises or falls on internal or external markets or other events and circumstances significantly disturbing or threatening to disturb the market concerned, where that situation, or its effects on the market, is likely to continue or deteriorate, the Commission shall be empowered to adopt delegated acts in accordance with Article 227 to take the measures necessary to address that market situation, while respecting any obligations resulting from international agreements concluded in accordance with the TFEU and provided that any other measures available under this Regulation appear to be insufficient or not suitable.’;

| (b) | the fourth subparagraph is replaced by the following:

  ‘Such measures may to the extent and for the time necessary to address the market disturbance or threat thereof extend or modify the scope, duration or other aspects of other measures provided for under this Regulation, adjust or suspend import duties in whole or in part including for certain quantities or periods as necessary, or take the form of a temporary voluntary production reduction scheme, in particular in cases of oversupply.’; |
| --- | --- |

(b)

the fourth subparagraph is replaced by the following:

‘Such measures may to the extent and for the time necessary to address the market disturbance or threat thereof extend or modify the scope, duration or other aspects of other measures provided for under this Regulation, adjust or suspend import duties in whole or in part including for certain quantities or periods as necessary, or take the form of a temporary voluntary production reduction scheme, in particular in cases of oversupply.’;

| (65) | Part V, Chapter I, Section 2, is amended as follows:






  (a) | the title is replaced by the following:

  ‘Market support measures related to animal diseases and plant pests and loss of consumer confidence due to public, animal or plant health risks’; |
| --- | --- | --- |

(65)

Part V, Chapter I, Section 2, is amended as follows:

(a)

the title is replaced by the following:

‘Market support measures related to animal diseases and plant pests and loss of consumer confidence due to public, animal or plant health risks’;

| (b) | Article 220 is amended as follows:






  (i) | the title is replaced by the following:

  ‘Measures concerning animal diseases and plant pests and the loss of consumer confidence due to public, animal or plant health risks’; |
| --- | --- | --- |

(b)

Article 220 is amended as follows:

(i)

the title is replaced by the following:

‘Measures concerning animal diseases and plant pests and the loss of consumer confidence due to public, animal or plant health risks’;

| (ii) | in paragraph 1, point (a) is replaced by the following:






  ‘(a) | restrictions on intra-Union and third-country trade which may result from the application of measures for combating the spread of diseases in animals or the spread of plant pests; and’; |
| --- | --- | --- |

(ii)

in paragraph 1, point (a) is replaced by the following:

‘(a)

restrictions on intra-Union and third-country trade which may result from the application of measures for combating the spread of diseases in animals or the spread of plant pests; and’;

| (iii) | in paragraph 2, the following point is inserted:






  ‘(-a) | fruit and vegetables;’; |
| --- | --- | --- |

(iii)

in paragraph 2, the following point is inserted:

‘(-a)

fruit and vegetables;’;

| (iv) | paragraph 4 is replaced by the following:

  ‘4.   The measures provided for in paragraph 1, first subparagraph, point (a) may be taken only if the Member State concerned has taken health, veterinary or phytosanitary measures quickly to stamp out the disease or to monitor, control and eradicate or contain the pest, and only to the extent and for the duration strictly necessary to support the market concerned.’; |
| --- | --- |

(iv)

paragraph 4 is replaced by the following:

‘4.   The measures provided for in paragraph 1, first subparagraph, point (a) may be taken only if the Member State concerned has taken health, veterinary or phytosanitary measures quickly to stamp out the disease or to monitor, control and eradicate or contain the pest, and only to the extent and for the duration strictly necessary to support the market concerned.’;

| (66) | in Part V, the following Chapter and Articles are inserted:

  ‘Chapter Ia
  Market transparency

  Article 222a
  Union market observatories

  1.   In order to improve transparency within the food supply chain, to inform the choices of economic operators and public authorities, to facilitate the monitoring of market developments and threats of market disturbance, the Commission shall establish Union market observatories.


  2.   The Commission may decide for which agricultural sectors from those listed in Article 1(2) the Union market observatories shall be established.


  3.   The Union market observatories shall make available the statistical data and information necessary for the monitoring of market developments and threats of market disturbance, in particular:






  (a) | production, supply and stocks; |
| --- | --- | --- |

(66)

in Part V, the following Chapter and Articles are inserted:

‘Chapter Ia

Market transparency

Article 222a

Union market observatories

1.   In order to improve transparency within the food supply chain, to inform the choices of economic operators and public authorities, to facilitate the monitoring of market developments and threats of market disturbance, the Commission shall establish Union market observatories.

2.   The Commission may decide for which agricultural sectors from those listed in Article 1(2) the Union market observatories shall be established.

3.   The Union market observatories shall make available the statistical data and information necessary for the monitoring of market developments and threats of market disturbance, in particular:

(a)

production, supply and stocks;

| (b) | prices, costs and, as far as possible, profit margins at all levels of the food supply chain; |
| --- | --- |

(b)

prices, costs and, as far as possible, profit margins at all levels of the food supply chain;

| (c) | short- and medium-term market forecasts; |
| --- | --- |

(c)

short- and medium-term market forecasts;

| (d) | imports and exports of agricultural products, in particular the filling of tariff quotas for the import of agricultural products into the Union.
  The Union market observatories shall produce reports containing the elements referred to in the first subparagraph. |
| --- | --- |

(d)

imports and exports of agricultural products, in particular the filling of tariff quotas for the import of agricultural products into the Union.

The Union market observatories shall produce reports containing the elements referred to in the first subparagraph.

4.   The Member States shall collect the information referred to in paragraph 3 and provide it to the Commission.

Article 222b

Commission reporting on market developments

1.   In their reports, Union market observatories established pursuant to Article 222a shall identify threats of market disturbance related to significant price increases or decreases in internal or external markets or to other events or circumstances having similar effects.

2.   The Commission shall regularly present to the European Parliament and to the Council information on the market situation for agricultural products, the causes of market disturbances and possible measures to be taken in response to those market disturbances, in particular measures provided for in Part II, Title I, Chapter I, and Articles 219, 220, 221 and 222, as well as the rationale for those measures’;

| (67) | in Article 223(1), the second subparagraph is replaced by the following:

  ‘The information obtained may be transmitted or made available to international organisations, Union and national financial market authorities, the competent authorities of third countries and may be made public, subject to the protection of personal data and the legitimate interest of undertakings in the protection of their business secrets, including prices.
  The Commission shall cooperate and exchange information with competent authorities designated in accordance with Article 22 of Regulation (EU) No 596/2014 and with the European Securities and Markets Authority (ESMA), to help them fulfil their tasks under Regulation (EU) 596/2014.’; |
| --- | --- |

(67)

in Article 223(1), the second subparagraph is replaced by the following:

‘The information obtained may be transmitted or made available to international organisations, Union and national financial market authorities, the competent authorities of third countries and may be made public, subject to the protection of personal data and the legitimate interest of undertakings in the protection of their business secrets, including prices.

The Commission shall cooperate and exchange information with competent authorities designated in accordance with Article 22 of Regulation (EU) No 596/2014 and with the European Securities and Markets Authority (ESMA), to help them fulfil their tasks under Regulation (EU) 596/2014.’;

| (68) | Article 225 is amended as follows:






  (a) | point (a) is deleted; |
| --- | --- | --- |

(68)

Article 225 is amended as follows:

(a)

point (a) is deleted;

| (b) | points (b) and (c) are deleted; |
| --- | --- |

(b)

points (b) and (c) are deleted;

| (c) | point (d) is replaced by the following:






  ‘(d) | by 31 December 2025, and every seven years thereafter, on the application of the competition rules as laid down in this Regulation to the agricultural sector in all Member States;’; |
| --- | --- | --- |

(c)

point (d) is replaced by the following:

‘(d)

by 31 December 2025, and every seven years thereafter, on the application of the competition rules as laid down in this Regulation to the agricultural sector in all Member States;’;

| (d) | the following points are inserted:






  ‘(da) | by 31 December 2023 on the Union market observatories set up in accordance with Article 222a; |
| --- | --- | --- |

(d)

the following points are inserted:

‘(da)

by 31 December 2023 on the Union market observatories set up in accordance with Article 222a;

| (db) | by 31 December 2023, and every three years thereafter, on the use of the crisis measures in particular adopted pursuant to Articles 219, to 222; |
| --- | --- |

(db)

by 31 December 2023, and every three years thereafter, on the use of the crisis measures in particular adopted pursuant to Articles 219, to 222;

| (dc) | by 31 December 2024 on the use of new information and communication technologies to ensure better market transparency as referred to in Article 223; |
| --- | --- |

(dc)

by 31 December 2024 on the use of new information and communication technologies to ensure better market transparency as referred to in Article 223;

| (dd) | by 30 June 2024 on sales designations and carcass classification in the sheepmeat and goatmeat sector;’; |
| --- | --- |

(dd)

by 30 June 2024 on sales designations and carcass classification in the sheepmeat and goatmeat sector;’;

| (69) | in Part V, Chapter III, containing Article 226, is deleted. |
| --- | --- |

(69)

in Part V, Chapter III, containing Article 226, is deleted.

| (70) | Annex I is amended as follows:






  (a) | in Part I(a), the first and second row (CN codes 0709 99 60 and 0712 90 19) are deleted; |
| --- | --- | --- |

(70)

Annex I is amended as follows:

(a)

in Part I(a), the first and second row (CN codes 0709 99 60 and 0712 90 19) are deleted;

| (b) | in Part I(d), the entry in the first row (CN code 0714) is replaced by the following:

  ‘
  ex 0714 - Manioc, arrowroot, salep and similar roots and tubers with high starch or inulin content, fresh, chilled, frozen or dried, whether or not sliced or in the form of pellets, excluding sweet potatoes of subheading 0714 20 and Jerusalem artichokes of subheading ex 0714 90 90; sago pith;’; |
| --- | --- |

(b)

in Part I(d), the entry in the first row (CN code 0714) is replaced by the following:

‘
  ex 0714 - Manioc, arrowroot, salep and similar roots and tubers with high starch or inulin content, fresh, chilled, frozen or dried, whether or not sliced or in the form of pellets, excluding sweet potatoes of subheading 0714 20 and Jerusalem artichokes of subheading ex 0714 90 90; sago pith;’;

| (c) | Part IX is amended as follows:






  (i) | the description in the fifth row (CN code 0706) is replaced by the following:

  ‘Carrots, turnips, salad beetroot, salsify, celeriac, radishes and similar edible roots (22), fresh or chilled

  (22)  This includes swedes.’;" |
| --- | --- | --- |

(c)

Part IX is amended as follows:

(i)

the description in the fifth row (CN code 0706) is replaced by the following:

‘Carrots, turnips, salad beetroot, salsify, celeriac, radishes and similar edible roots (22), fresh or chilled

22

(22)  This includes swedes.’;"

22

| (ii) | the description in the eighth row (CN code ex 07 09) is replaced by the following:

  ‘Other vegetables, fresh or chilled, excluding vegetables of subheadings 0709 60 91, 0709 60 95, ex 0709 60 99 of genus Pimenta, 0709 92 10 and 0709 92 90
  ’; |
| --- | --- |

(ii)

the description in the eighth row (CN code ex 07 09) is replaced by the following:

‘Other vegetables, fresh or chilled, excluding vegetables of subheadings 0709 60 91, 0709 60 95, ex 0709 60 99 of genus Pimenta, 0709 92 10 and 0709 92 90
  ’;

| (iii) | the following rows are inserted:

  ‘
  0714 20 sweet potatoes

  ex 0714 90 90 Jerusalem artichokes’; |
| --- | --- |

(iii)

the following rows are inserted:

‘
  0714 20 sweet potatoes

ex 0714 90 90 Jerusalem artichokes’;

| (d) | in Part X, the exclusions for sweetcorn are deleted; |
| --- | --- |

(d)

in Part X, the exclusions for sweetcorn are deleted;

| (e) | in Part XII, the following entry is added:






  ‘(e) | ex 2202 99 19: - - - Other, de-alcoholised wine with an alcoholic strength by volume not exceeding 0,5 % vol.’; |
| --- | --- | --- |

(e)

in Part XII, the following entry is added:

‘(e)

ex 2202 99 19: - - - Other, de-alcoholised wine with an alcoholic strength by volume not exceeding 0,5 % vol.’;

| (f) | in Part XXIV, Section 1, the entry ‘0709 60 99’ is replaced by the following:

  ‘
  ex 0709 60 99: - - - Other, of genus Pimenta’; |
| --- | --- |

(f)

in Part XXIV, Section 1, the entry ‘0709 60 99’ is replaced by the following:

‘
  ex 0709 60 99: - - - Other, of genus Pimenta’;

| (71) | in Annex II, Part II is amended as follows:






  (a) | in Section A, point 4, the second sentence is deleted; |
| --- | --- | --- |

(71)

in Annex II, Part II is amended as follows:

(a)

in Section A, point 4, the second sentence is deleted;

| (b) | Section B is deleted; |
| --- | --- |

(b)

Section B is deleted;

| (72) | Annex III is amended as follows:






  (a) | the title is replaced by the following:

  ‘STANDARD QUALITY OF RICE AND SUGAR AS REFERRED TO IN ARTICLE 1a OF REGULATION (EU) No 1370/2013 (*6)


  (*6)  Council Regulation (EU) No 1370/2013 of 16 December 2013 determining measures on fixing certain aids and refunds related to the common organisation of the markets in agricultural products (OJ L 346, 20.12.2013, p. 12);’;" |
| --- | --- | --- |

(72)

Annex III is amended as follows:

(a)

the title is replaced by the following:

‘STANDARD QUALITY OF RICE AND SUGAR AS REFERRED TO IN ARTICLE 1a OF REGULATION (EU) No 1370/2013 (*6)

*6

(*6)  Council Regulation (EU) No 1370/2013 of 16 December 2013 determining measures on fixing certain aids and refunds related to the common organisation of the markets in agricultural products (OJ L 346, 20.12.2013, p. 12);’;"

*6

| (b) | in Part B, Section I is deleted; |
| --- | --- |

(b)

in Part B, Section I is deleted;

| (73) | Annex VI is deleted; |
| --- | --- |

(73)

Annex VI is deleted;

| (74) | Annex VII is amended as follows:






  (a) | Part I is amended as follows:






  (i) | in point II, the following subparagraph is added:

  ‘At the request of a group referred to in Article 3(2) of Regulation (EU) No 1151/2012, the relevant Member State may decide that the conditions referred to in this point do not apply to the meat of bovine animals with a protected designation of origin or protected geographical indication protected in accordance with Regulation (EU) No 1151/2012 registered before 29 June 2007.’; |
| --- | --- | --- | --- |

(74)

Annex VII is amended as follows:

(a)

Part I is amended as follows:

(i)

in point II, the following subparagraph is added:

‘At the request of a group referred to in Article 3(2) of Regulation (EU) No 1151/2012, the relevant Member State may decide that the conditions referred to in this point do not apply to the meat of bovine animals with a protected designation of origin or protected geographical indication protected in accordance with Regulation (EU) No 1151/2012 registered before 29 June 2007.’;

| (ii) | in point III.1(A), the row for the United Kingdom is deleted; |
| --- | --- |

(ii)

in point III.1(A), the row for the United Kingdom is deleted;

| (iii) | in point III.1(B), the row for the United Kingdom is deleted; |
| --- | --- |

(iii)

in point III.1(B), the row for the United Kingdom is deleted;

| (b) | Part II is amended as follows:






  (i) | the following introductory wording is added:

  ‘The categories of grapevine products shall be those set out in points (1) to (17). The categories of grapevine products set out in point (1) and points (4) to (9) may undergo a total or partial de-alcoholisation treatment in accordance with Annex VIII, Part I, Section E, after having fully attained their respective characteristics as described in those points.’; |
| --- | --- | --- |

(b)

Part II is amended as follows:

(i)

the following introductory wording is added:

‘The categories of grapevine products shall be those set out in points (1) to (17). The categories of grapevine products set out in point (1) and points (4) to (9) may undergo a total or partial de-alcoholisation treatment in accordance with Annex VIII, Part I, Section E, after having fully attained their respective characteristics as described in those points.’;

| (ii) | in point 3, point (a) is replaced by the following:






  ‘(a) | with an actual alcoholic strength of not less than 15 % by volume and not more than 22 % by volume. Exceptionally, and for wines of prolonged ageing, those limits may differ in certain liqueur wines with a designation of origin or geographical indication on the list established by the Commission by means of delegated acts adopted in accordance with Article 75(2), on the condition that:






  — | the wines put into the ageing process shall fulfil the definition of liqueur wines; and |
| --- | --- | --- | --- |

(ii)

in point 3, point (a) is replaced by the following:

‘(a)

with an actual alcoholic strength of not less than 15 % by volume and not more than 22 % by volume. Exceptionally, and for wines of prolonged ageing, those limits may differ in certain liqueur wines with a designation of origin or geographical indication on the list established by the Commission by means of delegated acts adopted in accordance with Article 75(2), on the condition that:

—

the wines put into the ageing process shall fulfil the definition of liqueur wines; and

| — | the actual alcoholic strength of the aged wine shall not be less than 14 % by volume;’; |
| --- | --- |

—

the actual alcoholic strength of the aged wine shall not be less than 14 % by volume;’;

| (c) | Appendix I is amended as follows:






  (i) | point 1(c) is replaced by the following:






  ‘(c) | in Belgium, Denmark, Estonia, Ireland, Lithuania, the Netherlands, Poland and Sweden: the wine-growing areas of these Member States;’ |
| --- | --- | --- | --- |

(c)

Appendix I is amended as follows:

(i)

point 1(c) is replaced by the following:

‘(c)

in Belgium, Denmark, Estonia, Ireland, Lithuania, the Netherlands, Poland and Sweden: the wine-growing areas of these Member States;’

| (ii) | in point 2(g), the word ‘area’ is replaced by ‘wine-growing region’; |
| --- | --- |

(ii)

in point 2(g), the word ‘area’ is replaced by ‘wine-growing region’;

| (iii) | point 4(f) is replaced by the following:






  ‘(f) | in Romania, areas planted with vines in the following wine-growing regions: Dealurile Munteniei și Olteniei with the vineyards Dealurile Buzăului, Dealu Mare, Severinului and Plaiurile Drâncei, Colinele Dobrogei, Terasele Dunării, the South wine region, including sands and other favourable regions;’; |
| --- | --- | --- |

(iii)

point 4(f) is replaced by the following:

‘(f)

in Romania, areas planted with vines in the following wine-growing regions: Dealurile Munteniei și Olteniei with the vineyards Dealurile Buzăului, Dealu Mare, Severinului and Plaiurile Drâncei, Colinele Dobrogei, Terasele Dunării, the South wine region, including sands and other favourable regions;’;

| (iv) | point 4(g) is replaced by the following:






  ‘(g) | in Croatia, areas planted with vines in the following sub-regions: Hrvatska Istra, Hrvatsko primorje and Dalmatinska zagora;’; |
| --- | --- | --- |

(iv)

point 4(g) is replaced by the following:

‘(g)

in Croatia, areas planted with vines in the following sub-regions: Hrvatska Istra, Hrvatsko primorje and Dalmatinska zagora;’;

| (v) | in point 6, the following point is added:






  ‘(h) | in Croatia, areas planted with vines in the following sub-regions: Sjeverna Dalmacija and Srednja i Južna Dalmacija.’; |
| --- | --- | --- |

(v)

in point 6, the following point is added:

‘(h)

in Croatia, areas planted with vines in the following sub-regions: Sjeverna Dalmacija and Srednja i Južna Dalmacija.’;

| (75) | Annex VIII is amended as follows:






  (a) | Part I is amended as follows:






  (i) | the title is replaced by the following:

  ‘Enrichment, acidification, de-acidification in certain wine-growing zones and de-alcoholisation’; |
| --- | --- | --- | --- |

(75)

Annex VIII is amended as follows:

(a)

Part I is amended as follows:

(i)

the title is replaced by the following:

‘Enrichment, acidification, de-acidification in certain wine-growing zones and de-alcoholisation’;

| (ii) | in Section B, point 7(b) is replaced by the following:






  ‘(b) | raise the total alcoholic strength by volume of the products referred to in point 6 for the production of wines with a protected designation of origin or protected geographical indication to a level to be determined by Member States.’; |
| --- | --- | --- |

(ii)

in Section B, point 7(b) is replaced by the following:

‘(b)

raise the total alcoholic strength by volume of the products referred to in point 6 for the production of wines with a protected designation of origin or protected geographical indication to a level to be determined by Member States.’;

| (iii) | Section C is replaced by the following:
  ‘C.   Acidification and de-acidification








  1. | Fresh grapes, grape must, partially fermented grape must, new wine still in fermentation and wine may be subject to acidification and de-acidification. |
| --- | --- | --- |

(iii)

Section C is replaced by the following:

‘C.   Acidification and de-acidification

1.

Fresh grapes, grape must, partially fermented grape must, new wine still in fermentation and wine may be subject to acidification and de-acidification.

| 2. | Acidification of the products referred to in point 1 may be carried out only up to a limit of 4 g/l expressed as tartaric acid, or 53,3 milliequivalents per litre. |
| --- | --- |

2.

Acidification of the products referred to in point 1 may be carried out only up to a limit of 4 g/l expressed as tartaric acid, or 53,3 milliequivalents per litre.

| 3. | De-acidification of wines may be carried out only up to a limit of 1 g/l expressed as tartaric acid, or 13,3 milliequivalents per litre. |
| --- | --- |

3.

De-acidification of wines may be carried out only up to a limit of 1 g/l expressed as tartaric acid, or 13,3 milliequivalents per litre.

| 4. | Grape must intended for concentration may be partially de-acidified. |
| --- | --- |

4.

Grape must intended for concentration may be partially de-acidified.

| 5. | Acidification and enrichment, except by way of derogation to be adopted by the Commission by means of delegated acts pursuant to Article 75(2), and acidification and de-acidification of one and the same product shall be mutually exclusive processes.’; |
| --- | --- |

5.

Acidification and enrichment, except by way of derogation to be adopted by the Commission by means of delegated acts pursuant to Article 75(2), and acidification and de-acidification of one and the same product shall be mutually exclusive processes.’;

| (iv) | in Section D, point 3 is replaced by the following:






  ‘3. | Acidification and de-acidification of wines shall take place only in the wine-growing zone where the grapes used to produce the wine in question were harvested.’; |
| --- | --- | --- |

(iv)

in Section D, point 3 is replaced by the following:

‘3.

Acidification and de-acidification of wines shall take place only in the wine-growing zone where the grapes used to produce the wine in question were harvested.’;

| (v) | the following Section is added:
  ‘E.   De-alcoholisation processes
  Each of the de-alcoholisation processes listed below, whether used on its own or in combination with other listed de-alcoholisation processes, shall be allowed in order to reduce part or almost all of the ethanol content in grapevine products referred to in Annex VII, Part II, point 1 and points 4 to 9:






  (a) | partial vacuum evaporation; |
| --- | --- | --- |

(v)

the following Section is added:

‘E.   De-alcoholisation processes

Each of the de-alcoholisation processes listed below, whether used on its own or in combination with other listed de-alcoholisation processes, shall be allowed in order to reduce part or almost all of the ethanol content in grapevine products referred to in Annex VII, Part II, point 1 and points 4 to 9:

(a)

partial vacuum evaporation;

| (b) | membrane techniques; |
| --- | --- |

(b)

membrane techniques;

| (c) | distillation. |
| --- | --- |

(c)

distillation.

The de-alcoholisation processes used shall not result in organoleptic defects of the grapevine product. The elimination of ethanol in grapevine products shall not be done in conjunction with an increase of the sugar content in the grape must.’;

| (b) | in Part II, Section B, point 3 is replaced by the following:






  ‘3. | Points 1 and 2 shall not apply to products intended for the production, in Ireland and Poland, of products falling within CN code 2206 00 for which Member States may allow the use of a composite name, including the sales designation “wine”.’; |
| --- | --- | --- |

(b)

in Part II, Section B, point 3 is replaced by the following:

‘3.

Points 1 and 2 shall not apply to products intended for the production, in Ireland and Poland, of products falling within CN code 2206 00 for which Member States may allow the use of a composite name, including the sales designation “wine”.’;

| (76) | in Annex X, point II, paragraph 2 is replaced by the following:






  ‘2. | The price referred to in paragraph 1 shall apply to sugar beet of sound, fair and marketable quality having a sugar content of 16 % at the reception point.
  The price shall be adjusted by price increases or reductions, agreed by the parties in advance, to allow for deviations from the quality referred to in the first subparagraph.’; |
| --- | --- | --- |

(76)

in Annex X, point II, paragraph 2 is replaced by the following:

‘2.

The price referred to in paragraph 1 shall apply to sugar beet of sound, fair and marketable quality having a sugar content of 16 % at the reception point.

The price shall be adjusted by price increases or reductions, agreed by the parties in advance, to allow for deviations from the quality referred to in the first subparagraph.’;

| (77) | in Annex X, point XI, paragraph 1 is replaced by the following:






  ‘1. | Agreements within the trade as described in Annex II, Part II, Section A, point 6, shall contain conciliation or mediation mechanisms and arbitration clauses.’; |
| --- | --- | --- |

(77)

in Annex X, point XI, paragraph 1 is replaced by the following:

‘1.

Agreements within the trade as described in Annex II, Part II, Section A, point 6, shall contain conciliation or mediation mechanisms and arbitration clauses.’;

| (78) | Annexes XI, XII and XIII are deleted. |
| --- | --- |

(78)

Annexes XI, XII and XIII are deleted.

Article 2

Amendments to Regulation (EU) No 1151/2012

Regulation (EU) No 1151/2012 is amended as follows:

| (1) | in Article 1(2), point (b) is replaced by the following:






  ‘(b) | value-adding attributes resulting from the farming or processing methods used in their production, or from the place of their production or marketing, or from their possible contribution to sustainable development.’; |
| --- | --- | --- |

(1)

in Article 1(2), point (b) is replaced by the following:

‘(b)

value-adding attributes resulting from the farming or processing methods used in their production, or from the place of their production or marketing, or from their possible contribution to sustainable development.’;

| (2) | in Article 2, paragraphs 2 and 3 are replaced by the following:

  ‘2.   This Regulation shall not apply to spirit drinks or grapevine products as defined in Annex VII, Part II, to Regulation (EU) No 1308/2013, with the exception of wine-vinegars.


  3.   Registrations made pursuant to Article 52 are without prejudice to the obligation of producers to comply with other Union rules, in particular those relating to the placing of products on the market and to food labelling.’; |
| --- | --- |

(2)

in Article 2, paragraphs 2 and 3 are replaced by the following:

‘2.   This Regulation shall not apply to spirit drinks or grapevine products as defined in Annex VII, Part II, to Regulation (EU) No 1308/2013, with the exception of wine-vinegars.

3.   Registrations made pursuant to Article 52 are without prejudice to the obligation of producers to comply with other Union rules, in particular those relating to the placing of products on the market and to food labelling.’;

| (3) | in Article 5, paragraphs 1 and 2 are replaced by the following:

  ‘1.   For the purpose of this Regulation, a “designation of origin” is a name, which may be a traditionally used name, which identifies a product:






  (a) | originating in a specific place, region or, in exceptional cases, country; |
| --- | --- | --- |

(3)

in Article 5, paragraphs 1 and 2 are replaced by the following:

‘1.   For the purpose of this Regulation, a “designation of origin” is a name, which may be a traditionally used name, which identifies a product:

(a)

originating in a specific place, region or, in exceptional cases, country;

| (b) | whose quality or characteristics are essentially or exclusively due to a particular geographical environment with its inherent natural and human factors; and |
| --- | --- |

(b)

whose quality or characteristics are essentially or exclusively due to a particular geographical environment with its inherent natural and human factors; and

| (c) | the production steps of which all take place in the defined geographical area. |
| --- | --- |

(c)

the production steps of which all take place in the defined geographical area.

2.   For the purpose of this Regulation, a “geographical indication” is a name, including a traditionally used name, which identifies a product:

| (a) | originating in a specific place, region or country; |
| --- | --- |

(a)

originating in a specific place, region or country;

| (b) | whose given quality, reputation or other characteristic is essentially attributable to its geographical origin; and |
| --- | --- |

(b)

whose given quality, reputation or other characteristic is essentially attributable to its geographical origin; and

| (c) | at least one of the production steps of which takes place in the defined geographical area.’; |
| --- | --- |

(c)

at least one of the production steps of which takes place in the defined geographical area.’;

| (4) | in Article 6, paragraph 2 is replaced by the following:

  ‘2.   A name may not be registered as a designation of origin or geographical indication where it conflicts with a name of a plant variety or an animal breed and is likely to mislead the consumer as to the true origin of the product or to cause confusion between products with the registered designation and the variety or breed in question.
  The conditions referred to in the first subparagraph shall be assessed in relation to the actual use of the names in conflict, including the use of the name of the plant variety or animal breed outside its area of origin and the use of the name of a plant variety protected by another intellectual property right.’; |
| --- | --- |

(4)

in Article 6, paragraph 2 is replaced by the following:

‘2.   A name may not be registered as a designation of origin or geographical indication where it conflicts with a name of a plant variety or an animal breed and is likely to mislead the consumer as to the true origin of the product or to cause confusion between products with the registered designation and the variety or breed in question.

The conditions referred to in the first subparagraph shall be assessed in relation to the actual use of the names in conflict, including the use of the name of the plant variety or animal breed outside its area of origin and the use of the name of a plant variety protected by another intellectual property right.’;

| (5) | in Article 7, paragraph 1 is amended as follows:






  (a) | point (f) is replaced by the following:






  ‘(f) | details establishing the following:






  (i) | as regards a protected designation of origin, the link between the quality or characteristics of the product and the geographical environment referred to in Article 5(1); the details concerning human factors of that geographical environment may, where relevant, be limited to a description of the soil and landscape management, cultivation practices or any other relevant human contribution to the maintenance of the natural factors of the geographical environment referred to in that paragraph; |
| --- | --- | --- | --- | --- |

(5)

in Article 7, paragraph 1 is amended as follows:

(a)

point (f) is replaced by the following:

‘(f)

details establishing the following:

(i)

as regards a protected designation of origin, the link between the quality or characteristics of the product and the geographical environment referred to in Article 5(1); the details concerning human factors of that geographical environment may, where relevant, be limited to a description of the soil and landscape management, cultivation practices or any other relevant human contribution to the maintenance of the natural factors of the geographical environment referred to in that paragraph;

| (ii) | as regards a protected geographical indication, the link between a given quality, the reputation or other characteristic of the product and the geographical origin referred to in Article 5(2);’ |
| --- | --- |

(ii)

as regards a protected geographical indication, the link between a given quality, the reputation or other characteristic of the product and the geographical origin referred to in Article 5(2);’

| (b) | the following subparagraph is added:

  ‘The product specification may contain a description of the contribution of the designation of origin or geographical indication to sustainable development.’; |
| --- | --- |

(b)

the following subparagraph is added:

‘The product specification may contain a description of the contribution of the designation of origin or geographical indication to sustainable development.’;

| (6) | in Article 10(1), the introductory wording is replaced by the following:

  ‘A reasoned statement of opposition as referred to in Article 51(1) shall be admissible only if it is received by the Commission within the time limit set out in that paragraph and if it:’; |
| --- | --- |

(6)

in Article 10(1), the introductory wording is replaced by the following:

‘A reasoned statement of opposition as referred to in Article 51(1) shall be admissible only if it is received by the Commission within the time limit set out in that paragraph and if it:’;

| (7) | in Article 12, paragraph 3 is replaced by the following:

  ‘3.   In the case of products originating in the Union that are marketed under a protected designation of origin or protected geographical indication registered in accordance with the procedures laid down in this Regulation, the Union symbols associated with them shall appear on the labelling and advertising materials. The labelling requirements set out in Article 13(1) of Regulation (EU) No 1169/2011 for the presentation of mandatory particulars shall apply to the registered name of the product. The indications “protected designation of origin” or “protected geographical indication” or the corresponding abbreviations “PDO” or “PGI” may appear on the labelling.’; |
| --- | --- |

(7)

in Article 12, paragraph 3 is replaced by the following:

‘3.   In the case of products originating in the Union that are marketed under a protected designation of origin or protected geographical indication registered in accordance with the procedures laid down in this Regulation, the Union symbols associated with them shall appear on the labelling and advertising materials. The labelling requirements set out in Article 13(1) of Regulation (EU) No 1169/2011 for the presentation of mandatory particulars shall apply to the registered name of the product. The indications “protected designation of origin” or “protected geographical indication” or the corresponding abbreviations “PDO” or “PGI” may appear on the labelling.’;

| (8) | Article 13 is amended as follows:






  (a) | in paragraph 1, point (a) is replaced by the following:






  ‘(a) | any direct or indirect commercial use of a registered name in respect of products not covered by the registration where those products are comparable to the products registered under that name or where using the name exploits, weakens or dilutes the reputation of the protected name, including when those products are used as an ingredient;’; |
| --- | --- | --- | --- |

(8)

Article 13 is amended as follows:

(a)

in paragraph 1, point (a) is replaced by the following:

‘(a)

any direct or indirect commercial use of a registered name in respect of products not covered by the registration where those products are comparable to the products registered under that name or where using the name exploits, weakens or dilutes the reputation of the protected name, including when those products are used as an ingredient;’;

| (b) | the following paragraph is added:

  ‘4.   The protection referred to in paragraph 1 shall also apply with regard to:






  (a) | goods entering the customs territory of the Union without being released for free circulation within the customs territory of the Union; and |
| --- | --- | --- |

(b)

the following paragraph is added:

‘4.   The protection referred to in paragraph 1 shall also apply with regard to:

(a)

goods entering the customs territory of the Union without being released for free circulation within the customs territory of the Union; and

| (b) | goods sold by means of distance selling, such as electronic commerce. |
| --- | --- |

(b)

goods sold by means of distance selling, such as electronic commerce.

For goods entering the customs territory of the Union without being released for free circulation within that territory, the group or any operator entitled to use the protected designation of origin or protected geographical indication shall be entitled to prevent all third parties from bringing goods, in the course of trade, into the Union without being released for free circulation there, where such goods, including packaging, come from third countries and bear without authorisation the protected designation of origin or protected geographical indication.’;

| (9) | Article 15 is amended as follows:






  (a) | in paragraph 1, the second subparagraph is replaced by the following:

  ‘Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 57(2) except where an admissible statement of opposition is lodged under Article 49(3).’; |
| --- | --- | --- |

(9)

Article 15 is amended as follows:

(a)

in paragraph 1, the second subparagraph is replaced by the following:

‘Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 57(2) except where an admissible statement of opposition is lodged under Article 49(3).’;

| (b) | in paragraph 2, the introductory wording is replaced by the following:

  ‘Without prejudice to Article 14, the Commission may adopt implementing acts extending the transitional period mentioned in paragraph 1 of this Article to up to 15 years in duly justified cases where it is shown that:’; |
| --- | --- |

(b)

in paragraph 2, the introductory wording is replaced by the following:

‘Without prejudice to Article 14, the Commission may adopt implementing acts extending the transitional period mentioned in paragraph 1 of this Article to up to 15 years in duly justified cases where it is shown that:’;

| (10) | the following Article is inserted:

  ‘Article 16a
  Existing geographical indications for aromatised wine products
  Names entered in the register established pursuant to Article 21 of Regulation (EU) No 251/2014 of the European Parliament and of the Council (*7) shall automatically be entered in the register referred to in Article 11 of this Regulation as protected geographical indications. The corresponding specifications shall be deemed to be specifications for the purposes of Article 7 of this Regulation.


  (*7)  Regulation (EU) No 251/2014 of the European Parliament and of the Council of 26 February 2014 on the definition, description, presentation, labelling and the protection of geographical indications of aromatised wine products and repealing Council Regulation (EEC) No 1601/91 (OJ L 84, 20.3.2014, p. 14).’;" |
| --- | --- |

(10)

the following Article is inserted:

‘Article 16a

Existing geographical indications for aromatised wine products

Names entered in the register established pursuant to Article 21 of Regulation (EU) No 251/2014 of the European Parliament and of the Council (*7) shall automatically be entered in the register referred to in Article 11 of this Regulation as protected geographical indications. The corresponding specifications shall be deemed to be specifications for the purposes of Article 7 of this Regulation.

(*7)  Regulation (EU) No 251/2014 of the European Parliament and of the Council of 26 February 2014 on the definition, description, presentation, labelling and the protection of geographical indications of aromatised wine products and repealing Council Regulation (EEC) No 1601/91 (OJ L 84, 20.3.2014, p. 14).’;"

*7

| (11) | in Article 21(1), the introductory wording is replaced by the following:

  ‘1.   A reasoned statement of opposition as referred to in Article 51(1) shall be admissible only if it is received by the Commission before expiry of the time limit and if it:’; |
| --- | --- |

(11)

in Article 21(1), the introductory wording is replaced by the following:

‘1.   A reasoned statement of opposition as referred to in Article 51(1) shall be admissible only if it is received by the Commission before expiry of the time limit and if it:’;

| (12) | in Article 23, paragraph 3 is replaced by the following:

  ‘3.   In the case of products originating in the Union that are marketed under a traditional speciality guaranteed registered in accordance with this Regulation, the symbol referred to in paragraph 2 of this Article shall, without prejudice to paragraph 4 of this Article, appear on the labelling and advertising materials. The labelling requirements set out in Article 13(1) of Regulation (EU) No 1169/2011 for the presentation of mandatory particulars shall apply to the registered name of the product. The indication “traditional speciality guaranteed” or the corresponding abbreviation “TSG” may appear on the labelling.
  The symbol shall be optional on the labelling of traditional specialities guaranteed which are produced outside the Union.’; |
| --- | --- |

(12)

in Article 23, paragraph 3 is replaced by the following:

‘3.   In the case of products originating in the Union that are marketed under a traditional speciality guaranteed registered in accordance with this Regulation, the symbol referred to in paragraph 2 of this Article shall, without prejudice to paragraph 4 of this Article, appear on the labelling and advertising materials. The labelling requirements set out in Article 13(1) of Regulation (EU) No 1169/2011 for the presentation of mandatory particulars shall apply to the registered name of the product. The indication “traditional speciality guaranteed” or the corresponding abbreviation “TSG” may appear on the labelling.

The symbol shall be optional on the labelling of traditional specialities guaranteed which are produced outside the Union.’;

| (13) | Article 24 is amended as follows:






  (a) | paragraph 1 is replaced by the following:

  ‘1.   Registered names shall be protected against any misuse, imitation or evocation, including as regards products used as ingredients, or against any other practice liable to mislead the consumer.’; |
| --- | --- | --- |

(13)

Article 24 is amended as follows:

(a)

paragraph 1 is replaced by the following:

‘1.   Registered names shall be protected against any misuse, imitation or evocation, including as regards products used as ingredients, or against any other practice liable to mislead the consumer.’;

| (b) | the following paragraph is added:

  ‘4.   The protection referred to in paragraph 1 shall also apply with regard to goods sold through means of distance selling, such as electronic commerce.’; |
| --- | --- |

(b)

the following paragraph is added:

‘4.   The protection referred to in paragraph 1 shall also apply with regard to goods sold through means of distance selling, such as electronic commerce.’;

| (14) | the following Article is inserted:

  ‘Article 24a
  Transitional periods for use of traditional specialities guaranteed
  The Commission may adopt implementing acts granting a transitional period of up to five years to enable products the designation of which consists of or contains a name that contravenes Article 24(1) to continue to use the designation under which they were marketed on condition that an admissible statement of opposition under Article 49(3) or Article 51 shows that such name has been legally used on the Union market for at least five years preceding the date of the publication provided for in Article 50(2), point (b).
  Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 57(2) except where an admissible statement of opposition is lodged under Article 49(3).’; |
| --- | --- |

(14)

the following Article is inserted:

‘Article 24a

Transitional periods for use of traditional specialities guaranteed

The Commission may adopt implementing acts granting a transitional period of up to five years to enable products the designation of which consists of or contains a name that contravenes Article 24(1) to continue to use the designation under which they were marketed on condition that an admissible statement of opposition under Article 49(3) or Article 51 shows that such name has been legally used on the Union market for at least five years preceding the date of the publication provided for in Article 50(2), point (b).

Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 57(2) except where an admissible statement of opposition is lodged under Article 49(3).’;

| (15) | in Article 49, the following paragraph is added:

  ‘8.   The Member State shall inform the Commission without delay if any proceedings are initiated before a national court or other national body concerning an application lodged with the Commission, in accordance with paragraph 4, and if the application has been invalidated at national level by an immediately applicable but not final judicial decision.’; |
| --- | --- |

(15)

in Article 49, the following paragraph is added:

‘8.   The Member State shall inform the Commission without delay if any proceedings are initiated before a national court or other national body concerning an application lodged with the Commission, in accordance with paragraph 4, and if the application has been invalidated at national level by an immediately applicable but not final judicial decision.’;

| (16) | Article 50 is replaced by the following:

  ‘Article 50
  Scrutiny by the Commission and publication for opposition

  1.   The Commission shall examine applications for registration that it receives in accordance with Article 49(4) and (5). The Commission shall check that the applications contain the required information and that they do not contain manifest errors, taking into account the outcome of the scrutiny and opposition procedure carried out by the Member State concerned.
  Scrutiny by the Commission should not exceed a period of six months from the date of receipt of the application from the Member State. Where that period is exceeded, the Commission shall inform the applicant of the reasons for the delay in writing.
  The Commission shall, at least each month, publish the list of names for which applications for registration have been submitted to it, as well as the date of their submission.


  2.   Where, based on the scrutiny carried out pursuant to paragraph 1 of this Article, the Commission considers that the conditions laid down in Articles 5 and 6 are fulfilled as regards registration applications under the scheme set out in Title II, or that the conditions laid down in Article 18(1) and (2) are fulfilled as regards applications under the scheme set out in Title III, it shall publish in the Official Journal of the European Union:






  (a) | for applications under the scheme set out in Title II, the single document and the reference to the publication of the product specification; |
| --- | --- | --- |

(16)

Article 50 is replaced by the following:

‘Article 50

Scrutiny by the Commission and publication for opposition

1.   The Commission shall examine applications for registration that it receives in accordance with Article 49(4) and (5). The Commission shall check that the applications contain the required information and that they do not contain manifest errors, taking into account the outcome of the scrutiny and opposition procedure carried out by the Member State concerned.

Scrutiny by the Commission should not exceed a period of six months from the date of receipt of the application from the Member State. Where that period is exceeded, the Commission shall inform the applicant of the reasons for the delay in writing.

The Commission shall, at least each month, publish the list of names for which applications for registration have been submitted to it, as well as the date of their submission.

2.   Where, based on the scrutiny carried out pursuant to paragraph 1 of this Article, the Commission considers that the conditions laid down in Articles 5 and 6 are fulfilled as regards registration applications under the scheme set out in Title II, or that the conditions laid down in Article 18(1) and (2) are fulfilled as regards applications under the scheme set out in Title III, it shall publish in the Official Journal of the European Union:

(a)

for applications under the scheme set out in Title II, the single document and the reference to the publication of the product specification;

| (b) | for applications under the scheme set out in Title III, the specification. |
| --- | --- |

(b)

for applications under the scheme set out in Title III, the specification.

3.   The Commission shall be exempted from the obligation to meet the deadline to perform the scrutiny referred to in paragraph 1 and to inform the applicant of the reasons for the delay where it receives a communication from a Member State concerning an application for registration lodged with the Commission in accordance with Article 49(4) which either:

| (a) | informs the Commission that the application has been invalidated at national level by an immediately applicable but not final judicial decision; or |
| --- | --- |

(a)

informs the Commission that the application has been invalidated at national level by an immediately applicable but not final judicial decision; or

| (b) | requests the Commission to suspend the scrutiny referred to in paragraph 1 because national judicial proceedings have been initiated to challenge the validity of the application and the Member State considers that those proceedings are based on valid grounds.
  The exemption shall have effect until the Commission is informed by the Member State that the original application has been restored or that the Member State withdraws its request for suspension.’; |
| --- | --- |

(b)

requests the Commission to suspend the scrutiny referred to in paragraph 1 because national judicial proceedings have been initiated to challenge the validity of the application and the Member State considers that those proceedings are based on valid grounds.

The exemption shall have effect until the Commission is informed by the Member State that the original application has been restored or that the Member State withdraws its request for suspension.’;

| (17) | Article 51 is amended as follows:






  (a) | paragraphs 1, 2 and 3 are replaced by the following:

  ‘1.   Within three months from the date of publication in the Official Journal of the European Union, the authorities of a Member State or of a third country, or any natural or legal person resident or established in a third country and having a legitimate interest, may lodge a reasoned statement of opposition with the Commission.
  Any natural or legal person resident or established in a Member State other than that from which the application was submitted, and having a legitimate interest, may lodge a reasoned statement of opposition with the Member State in which it is resident or established within a time limit permitting an opposition to be lodged pursuant to the first subparagraph.


  2.   The Commission shall examine the admissibility of the reasoned statement of opposition on the basis of the grounds for opposition laid down in Article 10 as regards protected designations of origin and protected geographical indications and on the basis of the grounds for opposition laid down in Article 21 as regards traditional specialities guaranteed.


  3.   If the Commission considers that the reasoned statement of opposition is admissible it shall, within five months from the date of publication of the application in the Official Journal of the European Union, invite the authority or person that lodged the reasoned statement of opposition and the authority or body that lodged the application with the Commission to engage in appropriate consultations for a reasonable period that shall not exceed three months.
  The authority or person that lodged the reasoned statement of opposition and the authority or body that lodged the application shall start such appropriate consultations without undue delay. They shall provide each other with the relevant information to assess whether the application for registration complies with the conditions laid down in this Regulation. If no agreement is reached, this information shall be provided to the Commission.
  At any time within the period of consultations, the Commission may, at the request of the applicant, extend the deadline for the consultations by a maximum of three months.’; |
| --- | --- | --- |

(17)

Article 51 is amended as follows:

(a)

paragraphs 1, 2 and 3 are replaced by the following:

‘1.   Within three months from the date of publication in the Official Journal of the European Union, the authorities of a Member State or of a third country, or any natural or legal person resident or established in a third country and having a legitimate interest, may lodge a reasoned statement of opposition with the Commission.

Any natural or legal person resident or established in a Member State other than that from which the application was submitted, and having a legitimate interest, may lodge a reasoned statement of opposition with the Member State in which it is resident or established within a time limit permitting an opposition to be lodged pursuant to the first subparagraph.

2.   The Commission shall examine the admissibility of the reasoned statement of opposition on the basis of the grounds for opposition laid down in Article 10 as regards protected designations of origin and protected geographical indications and on the basis of the grounds for opposition laid down in Article 21 as regards traditional specialities guaranteed.

3.   If the Commission considers that the reasoned statement of opposition is admissible it shall, within five months from the date of publication of the application in the Official Journal of the European Union, invite the authority or person that lodged the reasoned statement of opposition and the authority or body that lodged the application with the Commission to engage in appropriate consultations for a reasonable period that shall not exceed three months.

The authority or person that lodged the reasoned statement of opposition and the authority or body that lodged the application shall start such appropriate consultations without undue delay. They shall provide each other with the relevant information to assess whether the application for registration complies with the conditions laid down in this Regulation. If no agreement is reached, this information shall be provided to the Commission.

At any time within the period of consultations, the Commission may, at the request of the applicant, extend the deadline for the consultations by a maximum of three months.’;

| (b) | paragraph 5 is replaced by the following:

  ‘5.   The reasoned statement of opposition and other documents which are sent to the Commission in accordance with paragraphs 1, 2 and 3 shall be in one of the official languages of the Union.’; |
| --- | --- |

(b)

paragraph 5 is replaced by the following:

‘5.   The reasoned statement of opposition and other documents which are sent to the Commission in accordance with paragraphs 1, 2 and 3 shall be in one of the official languages of the Union.’;

| (18) | in Article 52, paragraphs 1 and 2 are replaced by the following:

  ‘1.   Where, on the basis of the information available to the Commission from the scrutiny carried out pursuant to the first subparagraph of Article 50(1), the Commission considers that the conditions laid down in Articles 5 and 6, as regards the quality schemes set out in Title II, or in Article 18, as regards the quality schemes set out in Title III, are not fulfilled, it shall adopt implementing acts rejecting the application. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 57(2).


  2.   If the Commission receives no admissible reasoned statement of opposition under Article 51, it shall adopt implementing acts, without applying the examination procedure referred to in Article 57(2), registering the name.’; |
| --- | --- |

(18)

in Article 52, paragraphs 1 and 2 are replaced by the following:

‘1.   Where, on the basis of the information available to the Commission from the scrutiny carried out pursuant to the first subparagraph of Article 50(1), the Commission considers that the conditions laid down in Articles 5 and 6, as regards the quality schemes set out in Title II, or in Article 18, as regards the quality schemes set out in Title III, are not fulfilled, it shall adopt implementing acts rejecting the application. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 57(2).

2.   If the Commission receives no admissible reasoned statement of opposition under Article 51, it shall adopt implementing acts, without applying the examination procedure referred to in Article 57(2), registering the name.’;

| (19) | Article 53 is amended as follows:






  (a) | the title is replaced by the following:

  ‘Article 53
  Amendments to product specifications’; |
| --- | --- | --- |

(19)

Article 53 is amended as follows:

(a)

the title is replaced by the following:

‘Article 53

Amendments to product specifications’;

| (b) | paragraph 2 is replaced by the following:

  ‘2.   Amendments to a product specification shall be classified into two categories as regards their importance: Union amendments, requiring an opposition procedure at the Union level, and standard amendments to be dealt with at Member State or third country level.
  For the purposes of this Regulation, “Union amendment” means an amendment to a product specification that:






  (a) | includes a change in the name of the protected designation of origin or protected geographical indication, or in the use of that name; |
| --- | --- | --- |

(b)

paragraph 2 is replaced by the following:

‘2.   Amendments to a product specification shall be classified into two categories as regards their importance: Union amendments, requiring an opposition procedure at the Union level, and standard amendments to be dealt with at Member State or third country level.

For the purposes of this Regulation, “Union amendment” means an amendment to a product specification that:

(a)

includes a change in the name of the protected designation of origin or protected geographical indication, or in the use of that name;

| (b) | risks voiding the link referred to in Article 5(1), point (b), for protected designations of origin, or the link referred to in Article 5(2), point (b), for protected geographical indications; |
| --- | --- |

(b)

risks voiding the link referred to in Article 5(1), point (b), for protected designations of origin, or the link referred to in Article 5(2), point (b), for protected geographical indications;

| (c) | concerns a traditional speciality guaranteed; or |
| --- | --- |

(c)

concerns a traditional speciality guaranteed; or

| (d) | entails further restrictions on the marketing of the product. |
| --- | --- |

(d)

entails further restrictions on the marketing of the product.

“Standard amendment” means any amendment to a product specification that is not a Union amendment.

“Temporary amendment” means a standard amendment concerning a temporary change in the product specification resulting from the imposition of obligatory sanitary and phytosanitary measures by the public authorities or a temporary amendment necessary because of a natural disaster or adverse weather conditions formally recognised by the competent authorities.

Union amendments shall be approved by the Commission. The approval procedure shall follow the procedure laid down in Articles 49 to 52, mutatis mutandis.

The scrutiny of the application shall focus on the proposed amendment. Where appropriate, the Commission or the Member State concerned may invite the applicant to modify other elements of the product specifications.

Standard amendments shall be approved and made public by the Member State in whose territory the geographical area of the product concerned is located and communicated to the Commission. Third countries shall approve standard amendments in accordance with the law applicable in the third country concerned and communicate them to the Commission.’;

| (c) | paragraph 3 is replaced by the following:

  ‘3.   In order to facilitate the administrative process in relation to Union and standard amendments to product specifications, including where an amendment does not involve any change to the single document, the Commission shall be empowered to adopt delegated acts, in accordance with Article 56, complementing the rules of the amendment application process.
  The Commission may adopt implementing acts laying down detailed rules on the procedures for, form of and presentation of an amendment application for Union amendments, and on the procedures for and form of standard amendments and their communication to the Commission. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 57(2).’; |
| --- | --- |

(c)

paragraph 3 is replaced by the following:

‘3.   In order to facilitate the administrative process in relation to Union and standard amendments to product specifications, including where an amendment does not involve any change to the single document, the Commission shall be empowered to adopt delegated acts, in accordance with Article 56, complementing the rules of the amendment application process.

The Commission may adopt implementing acts laying down detailed rules on the procedures for, form of and presentation of an amendment application for Union amendments, and on the procedures for and form of standard amendments and their communication to the Commission. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 57(2).’;

| (20) | in Annex I, Point I, the following indents are added:






  ‘– | aromatised wines as defined in Article 3(2) of Regulation (EU) No 251/2014, |
| --- | --- | --- |

(20)

in Annex I, Point I, the following indents are added:

‘–

aromatised wines as defined in Article 3(2) of Regulation (EU) No 251/2014,

| – | other alcoholic beverages, except for spirit drinks and grapevine products as defined in Annex VII, Part II, to Regulation (EU) No 1308/2013, |
| --- | --- |

–

other alcoholic beverages, except for spirit drinks and grapevine products as defined in Annex VII, Part II, to Regulation (EU) No 1308/2013,

| – | beeswax.’. |
| --- | --- |

–

beeswax.’.

Article 3

Amendments to Regulation (EU) No 251/2014

| (1) | the title is replaced by the following:

  ‘Regulation (EU) No 251/2014 of the European Parliament and of the Council of 26 February 2014 on the definition, description, presentation and labelling of aromatised wine products and repealing Council Regulation (EEC) No 1601/91’; |
| --- | --- |

(1)

the title is replaced by the following:

‘Regulation (EU) No 251/2014 of the European Parliament and of the Council of 26 February 2014 on the definition, description, presentation and labelling of aromatised wine products and repealing Council Regulation (EEC) No 1601/91’;

| (2) | in Article 1, paragraph 1 is replaced by the following:






  ‘1. | This Regulation lays down rules on the definition, description, presentation and labelling of aromatised wine products.’; |
| --- | --- | --- |

(2)

in Article 1, paragraph 1 is replaced by the following:

‘1.

This Regulation lays down rules on the definition, description, presentation and labelling of aromatised wine products.’;

| (3) | in Article 2, point 3 is deleted; |
| --- | --- |

(3)

in Article 2, point 3 is deleted;

| (4) | Article 5 is amended as follows:






  (a) | paragraph 4 is replaced by the following:

  ‘4.   Sales denominations may be supplemented or replaced by a geographical indication of aromatised wine products protected under Regulation (EU) No 1151/2012.’; |
| --- | --- | --- |

(4)

Article 5 is amended as follows:

(a)

paragraph 4 is replaced by the following:

‘4.   Sales denominations may be supplemented or replaced by a geographical indication of aromatised wine products protected under Regulation (EU) No 1151/2012.’;

| (b) | the following paragraphs are added:

  ‘6.   In the case of aromatised wine products produced in the Union that are destined for export to third countries whose legislation requires different sales denominations, Member States may allow those sales denominations to accompany the sales denominations set out in Annex II. Those additional sales denominations may appear in languages other than the official languages of the Union.


  7.   The Commission shall be empowered to adopt delegated acts in accordance with Article 33 to supplement Annex II in order to take into account technical progress, scientific and market developments, consumer health or consumer needs for information.’; |
| --- | --- |

(b)

the following paragraphs are added:

‘6.   In the case of aromatised wine products produced in the Union that are destined for export to third countries whose legislation requires different sales denominations, Member States may allow those sales denominations to accompany the sales denominations set out in Annex II. Those additional sales denominations may appear in languages other than the official languages of the Union.

7.   The Commission shall be empowered to adopt delegated acts in accordance with Article 33 to supplement Annex II in order to take into account technical progress, scientific and market developments, consumer health or consumer needs for information.’;

| (5) | the following Article is inserted:

  ‘Article 6a
  Nutrition declaration and ingredients list

  1.   The labelling of aromatised wine products marketed in the Union shall contain the following mandatory particulars:






  (a) | the nutrition declaration pursuant to Article 9(1), point (l), of Regulation (EU) No 1169/2011; and |
| --- | --- | --- |

(5)

the following Article is inserted:

‘Article 6a

Nutrition declaration and ingredients list

1.   The labelling of aromatised wine products marketed in the Union shall contain the following mandatory particulars:

(a)

the nutrition declaration pursuant to Article 9(1), point (l), of Regulation (EU) No 1169/2011; and

| (b) | the list of ingredients pursuant to Article 9(1), point (b), of Regulation (EU) No 1169/2011. |
| --- | --- |

(b)

the list of ingredients pursuant to Article 9(1), point (b), of Regulation (EU) No 1169/2011.

2.   By way of derogation from paragraph 1, point (a), the nutrition declaration on the package or on a label attached thereto may be limited to the energy value, which may be expressed by using the symbol “E” for energy. In such cases, the full nutrition declaration shall be provided by electronic means identified on the package or on a label attached thereto. That nutrition declaration shall not be displayed with other information intended for sales or marketing purposes and no user data shall be collected or tracked.

3.   By way of derogation from paragraph 1, point (b), the list of ingredients may be provided by electronic means identified on the package or on a label attached thereto. In such cases, the following requirements apply:

| (a) | no user data shall be collected or tracked; |
| --- | --- |

(a)

no user data shall be collected or tracked;

| (b) | the list of ingredients shall not be displayed with other information intended for sales or marketing purposes; and |
| --- | --- |

(b)

the list of ingredients shall not be displayed with other information intended for sales or marketing purposes; and

| (c) | the indication of the particulars referred to in Article 9(1), point (c), of Regulation (EU) No 1169/2011 shall appear directly on the package or on a label attached thereto. |
| --- | --- |

(c)

the indication of the particulars referred to in Article 9(1), point (c), of Regulation (EU) No 1169/2011 shall appear directly on the package or on a label attached thereto.

The indication referred to in the first subparagraph, point (c), of this paragraph shall comprise the word “contains” followed by the name of the substance or product as listed in Annex II to Regulation (EU) No 1169/2011.

4.   The Commission is empowered to adopt delegated acts in accordance with Article 33 supplementing this Regulation by further specifying the rules for the indication and designation of ingredients for the application of paragraph 1, point (b), of this Article.’;

| (6) | in Article 8, paragraph 2 is replaced by the following:

  ‘2.   The name of the geographical indication of aromatised wine products protected under Regulation (EU) No 1151/2012 shall appear on the label in the language or languages in which it is registered, even where the geographical indication replaces the sales denomination in accordance with Article 5(4) of this Regulation.
  Where the name of a geographical indication of aromatised wine products protected under Regulation (EU) No 1151/2012 is written in a non-Latin alphabet, it may also appear in one or more of the official languages of the Union.’; |
| --- | --- |

(6)

in Article 8, paragraph 2 is replaced by the following:

‘2.   The name of the geographical indication of aromatised wine products protected under Regulation (EU) No 1151/2012 shall appear on the label in the language or languages in which it is registered, even where the geographical indication replaces the sales denomination in accordance with Article 5(4) of this Regulation.

Where the name of a geographical indication of aromatised wine products protected under Regulation (EU) No 1151/2012 is written in a non-Latin alphabet, it may also appear in one or more of the official languages of the Union.’;

| (7) | Article 9 is deleted; |
| --- | --- |

(7)

Article 9 is deleted;

| (8) | Chapter III, containing Articles 10 to 30, is deleted. |
| --- | --- |

(8)

Chapter III, containing Articles 10 to 30, is deleted.

| (9) | Article 33 is amended as follows:






  (a) | the following paragraph is inserted:

  ‘2a.   The power to adopt delegated acts referred to in Article 5(7) shall be conferred on the Commission for a period of five years from 7 December 2021. The power to adopt delegated acts referred to in Article 6a(4) shall be conferred on the Commission for a period of five years from 8 December 2023. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the five-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.’; |
| --- | --- | --- |

(9)

Article 33 is amended as follows:

(a)

the following paragraph is inserted:

‘2a.   The power to adopt delegated acts referred to in Article 5(7) shall be conferred on the Commission for a period of five years from 7 December 2021. The power to adopt delegated acts referred to in Article 6a(4) shall be conferred on the Commission for a period of five years from 8 December 2023. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the five-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.’;

| (b) | paragraph 3 is replaced by the following:

  ‘3.   The delegation of power referred to in Article 4(2), Article 5(7), Article 6a(4), Article 28, Article 32(2) and Article 36(1) may be revoked at any time by the European Parliament or by the Council. A decision of revocation shall put an end to the delegation of the powers specified in that decision. It shall take effect the day following the publication in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of the delegated acts already in force.’; |
| --- | --- |

(b)

paragraph 3 is replaced by the following:

‘3.   The delegation of power referred to in Article 4(2), Article 5(7), Article 6a(4), Article 28, Article 32(2) and Article 36(1) may be revoked at any time by the European Parliament or by the Council. A decision of revocation shall put an end to the delegation of the powers specified in that decision. It shall take effect the day following the publication in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of the delegated acts already in force.’;

| (c) | paragraph 5 is replaced by the following:

  ‘5.   A delegated act adopted pursuant to Article 4(2), Article 5(7), Article 6a(4), Article 28, Article 32(2) and Article 36(1) shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months on the initiative of the European Parliament or the Council.’; |
| --- | --- |

(c)

paragraph 5 is replaced by the following:

‘5.   A delegated act adopted pursuant to Article 4(2), Article 5(7), Article 6a(4), Article 28, Article 32(2) and Article 36(1) shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months on the initiative of the European Parliament or the Council.’;

| (10) | in Annex I, point (1)(a), the following point is added:






  ‘(iv) | spirit drinks in a quantity not exceeding 1 % of the overall volume.’; |
| --- | --- | --- |

(10)

in Annex I, point (1)(a), the following point is added:

‘(iv)

spirit drinks in a quantity not exceeding 1 % of the overall volume.’;

| (11) | Annex II is amended as follows:






  (a) | in Part A, point (3), the first indent is replaced by the following:






  ‘- | to which alcohol may have been added; and’ |
| --- | --- | --- | --- |

(11)

Annex II is amended as follows:

(a)

in Part A, point (3), the first indent is replaced by the following:

‘-

to which alcohol may have been added; and’

| (b) | Part B is amended as follows:






  (i) | in point (8), the first indent is replaced by the following:






  ‘- | which is obtained exclusively from red or white wine or both,’; |
| --- | --- | --- | --- |

(b)

Part B is amended as follows:

(i)

in point (8), the first indent is replaced by the following:

‘-

which is obtained exclusively from red or white wine or both,’;

| (ii) | the following point is added:






  ‘(14) | Wino ziołowe
  Aromatised wine-based drink:






  (a) | which is obtained from wine and in which grapevine products represent at least 85 % of the total volume, |
| --- | --- | --- | --- |

(ii)

the following point is added:

‘(14)

Wino ziołowe

Aromatised wine-based drink:

(a)

which is obtained from wine and in which grapevine products represent at least 85 % of the total volume,

| (b) | which has been flavoured exclusively with flavouring preparations obtained from herbs or spices or both, |
| --- | --- |

(b)

which has been flavoured exclusively with flavouring preparations obtained from herbs or spices or both,

| (c) | which has not been coloured, |
| --- | --- |

(c)

which has not been coloured,

| (d) | which has an actual alcoholic strength by volume of not less than 7 %’. |
| --- | --- |

(d)

which has an actual alcoholic strength by volume of not less than 7 %’.

Article 4

Amendment to Regulation (EU) No 228/2013

The following Article is inserted:

‘Article 22a

Interbranch agreements in Réunion

1.   Pursuant to Article 349 of the Treaty, by way of derogation from Article 101(1) of the Treaty and notwithstanding Article 164(4), first subparagraph, points (a) to (n), of Regulation (EU) No 1308/2013, where an interbranch organisation recognised pursuant to Article 157 of Regulation (EU) No 1308/2013 operates exclusively in Réunion and is considered to represent the production of, trade in or processing of one specified product, France may, at the request of that organisation, extend to other operators who are not members of that interbranch organisation rules aimed at supporting the maintenance and diversification of local production in order to increase food security in Réunion, provided that those rules apply only to those operators whose activities are solely carried out in Réunion in relation to products which are destined for the local market. Notwithstanding Article 164(3) of Regulation (EU) No 1308/2013, an interbranch organisation is to be regarded as being a representative under this Article where it accounts for at least 70 % of the volume of production, trade or processing of the product or products concerned.

2.   By way of derogation from Article 165 of Regulation (EU) No 1308/2013, where the rules of a recognised interbranch organisation operating exclusively in Réunion are extended under paragraph 1 of this Article, and the activities covered by those rules are in the general economic interest of economic operators whose activities are solely carried out in Réunion in relation to products which are destined for the local market, France may, after consulting the relevant stakeholders, decide that individual economic operators or groups which are not members of the organisation but which operate on that local market are to pay the organisation all or part of the financial contributions paid by its members, to the extent that such contributions are intended to cover costs that are directly incurred as a result of pursuing the activities in question.

3.   France shall inform the Commission of any agreement whose scope is extended in accordance with this Article.’.

Article 5

Transitional provisions

1.   The rules applicable before 7 December 2021 shall continue to apply to applications for protection, applications for approval of amendment and requests for cancellation of designations of origin or geographical indications received by the Commission pursuant to Regulation (EU) No 1308/2013 before 7 December 2021 and to applications for registration and requests for cancellation of protected designations of origin, protected geographical indications or traditional specialities guaranteed received by the Commission pursuant to Regulation (EU) No 1151/2012 before 7 December 2021.

2.   The rules applicable before 7 December 2021 shall continue to apply to applications for approval of amendment of a product specification of designations of origin or geographical indications or traditional specialities guaranteed received by the Commission pursuant to Regulation (EU) No 1151/2012 before 8 June 2022.

3.   The rules applicable before 7 December 2021 shall continue to apply to applications for protection, applications for approval of amendment and requests for cancellation of names of aromatised wines as geographical indication received by the Commission pursuant to Regulation (EU) No 251/2014 before 7 December 2021. However, the decision on registration shall be adopted pursuant to Article 52 of Regulation (EU) No 1151/2012 as amended by Article 2, point (18), of this Regulation.

4.   Articles 29 to 38 and 55 to 57 of Regulation (EU) No 1308/2013 shall continue to apply after 31 December 2022 as regards expenditure incurred and payments made for operations implemented before 1 January 2023 within the aid schemes referred to in those Articles.

5.   Articles 58 to 60 of Regulation (EU) No 1308/2013 shall continue to apply after 31 December 2022 as regards expenditure incurred and payments made before 1 January 2023 within the aid scheme referred to in those Articles.

6.   Recognised producer organisations or their associations in the fruit and vegetables sector having an operational programme as referred to in Article 33 of Regulation (EU) No 1308/2013 that has been approved by a Member State for a duration beyond 31 December 2022 shall, by 15 September 2022, submit a request to that Member State to the effect that its operational programme:

| (a) | be modified to meet the requirements of Regulation (EU) 2021/2115; or |
| --- | --- |

(a)

be modified to meet the requirements of Regulation (EU) 2021/2115; or

| (b) | be replaced by a new operational programme approved under Regulation (EU) 2021/2115; or |
| --- | --- |

(b)

be replaced by a new operational programme approved under Regulation (EU) 2021/2115; or

| (c) | continue to operate until its end under the conditions applicable under Regulation (EU) No 1308/2013. |
| --- | --- |

(c)

continue to operate until its end under the conditions applicable under Regulation (EU) No 1308/2013.

Where such recognised producer organisations or their associations do not submit such requests by 15 September 2022, their operational programmes which were approved under Regulation (EU) No 1308/2013 shall end on 31 December 2022.

7.   The support programmes in the wine sector referred to in Article 40 of Regulation (EU) No 1308/2013 shall continue to apply until 15 October 2023. Articles 39 to 54 of Regulation (EU) No 1308/2013 shall continue to apply after 31 December 2022 as regards:

| (a) | expenditure incurred and payments made for operations implemented pursuant to that Regulation before 16 October 2023 within the aid scheme referred to in Articles 39 to 52 of that Regulation; |
| --- | --- |

(a)

expenditure incurred and payments made for operations implemented pursuant to that Regulation before 16 October 2023 within the aid scheme referred to in Articles 39 to 52 of that Regulation;

| (b) | expenditure incurred and payments made for operations implemented pursuant to Articles 46 and 50 of that Regulation before 16 October 2025, provided that by 15 October 2023 such operations have been partially implemented and the expenditure incurred amounts to at least 30 % of the total planned expenditure and that such operations are fully implemented by 15 October 2025. |
| --- | --- |

(b)

expenditure incurred and payments made for operations implemented pursuant to Articles 46 and 50 of that Regulation before 16 October 2025, provided that by 15 October 2023 such operations have been partially implemented and the expenditure incurred amounts to at least 30 % of the total planned expenditure and that such operations are fully implemented by 15 October 2025.

8.   Wine which meets the labelling requirements of Article 119 of Regulation (EU) No 1308/2013 and aromatised wine products which meet the labelling rules of Regulation (EU) No 251/2014 applicable in both cases before 8 December 2023 and which were produced and labelled before that date may continue to be placed on the market until stocks are exhausted.

Article 6

Entry into force and application

This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

Official Journal of the European Union

Article 1, points (8)(d)(i), (8)(d)(iii), (10)(a)(ii) and (38), shall apply from 1 January 2021.

Article 2, point (19)(b), shall apply from 8 June 2022.

Article 1, points (1), (2)(b), (8)(a), (8)(b), (8)(e), (18), (31), (35), (62), (68)(a), (69) and (73), shall apply from 1 January 2023.

Article 1, points (32)(a)(ii) and (32)(c), and Article 3, point (5), shall apply from 8 December 2023.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 2 December 2021.

For the European Parliament

The President

D. M. SASSOLI

For the Council

The President

J. VRTOVEC

---

(1)  
  OJ C 62, 15.2.2019, p. 214.

1

(2)  
  OJ C 86, 7.3.2019, p. 173.

2

(3)  
  OJ C 41, 1.2.2019, p. 1.

3

(4)  Position of the European Parliament of 23 November 2021 (not yet published in the Official Journal) and decision of the Council of 2 December 2021.

4

(5)  Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1).

5

(6)  Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007 (OJ L 347, 20.12.2013, p. 671).

6

(7)  
  OJ L 123, 12.5.2016, p. 1.

7

(8)  Regulation (EU) 2021/2115 of the European Parliament and of the Council of 2 December 2021 establishing rules on support for strategic plans to be drawn up by Member States under the common agricultural policy (CAP Strategic Plans) and financed by the European Agricultural Guarantee Fund (EAGF) and by the European Agricultural Fund for Rural Development (EAFRD) and repealing Regulations (EU) No 1305/2013 and (EU) No 1307/2013 (see page 1 of this Official Journal).

8

(9)  Regulation (EU) 2020/2220 of the European Parliament and of the Council of 23 December 2020 laying down certain transitional provisions for support from the European Agricultural Fund for Rural Development (EAFRD) and from the European Agricultural Guarantee Fund (EAGF) in the years 2021 and 2022 and amending Regulations (EU) No 1305/2013, (EU) No 1306/2013 and (EU) No 1307/2013 as regards resources and application in the years 2021 and 2022 and Regulation (EU) No 1308/2013 as regards resources and the distribution of such support in respect of the years 2021 and 2022 (OJ L 437, 28.12.2020, p. 1).

9

(10)  Council Regulation (EC) No 1234/2007 of 22 October 2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products (Single CMO Regulation) (OJ L 299, 16.11.2007, p. 1).

10

(11)  Regulation (EU) No 1306/2013 of the European Parliament and of the Council of 17 December 2013 on the financing, management and monitoring of the common agricultural policy and repealing Council Regulations (EEC) No 352/78, (EC) No 165/94, (EC) No 2799/98, (EC) No 814/2000, (EC) No 1290/2005 and (EC) No 485/2008 (OJ L 347, 20.12.2013, p. 549).

11

(12)  Regulation (EU) 2021/2116 of the European Parliament and of the Council of 2 December 2021 on the financing, management and monitoring of the common agriculture policy and repealing Regulation (EU) No 1306/2013 (see page 187 of this Official Journal).

12

(13)  Council Decision 94/800/EC of 22 December 1994 concerning the conclusion on behalf of the European Community, as regards matters within its competence, of the agreements reached in the Uruguay Round multilateral negotiations (1986-1994) (OJ L 336, 23.12.1994, p. 1).

13

(14)  Regulation (EU) No 1151/2012 of the European Parliament and of the Council of 21 November 2012 on quality schemes for agricultural products and foodstuffs (OJ L 343 14.12.2012, p. 1).

14

(15)  Commission Delegated Regulation (EU) 2019/33 of 17 October 2018 supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the Council as regards applications for protection of designations of origin, geographical indications and traditional terms in the wine sector, the objection procedure, restrictions of use, amendments to product specifications, cancellation of protection, and labelling and presentation (OJ L 9, 11.1.2019, p. 2).

15

(16)  Regulation (EU) 2019/787 of the European Parliament and of the Council of 17 April 2019 on the definition, description, presentation and labelling of spirit drinks, the use of the names of spirit drinks in the presentation and labelling of other foodstuffs, the protection of geographical indications for spirit drinks, the use of ethyl alcohol and distillates of agricultural origin in alcoholic beverages, and repealing Regulation (EC) No 110/2008 (OJ L 130 17.5.2019, p. 1).

16

(17)  Regulation (EU) No 1169/2011 of the European Parliament and of the Council of 25 October 2011 on the provision of food information to consumers, amending Regulations (EC) No 1924/2006 and (EC) No 1925/2006 of the European Parliament and of the Council, and repealing Commission Directive 87/250/EEC, Council Directive 90/496/EEC, Commission Directive 1999/10/EC, Directive 2000/13/EC of the European Parliament and of the Council, Commission Directives 2002/67/EC and 2008/5/EC and Commission Regulation (EC) No 608/2004 (OJ L 304 22.11.2011, p. 18).

17

(18)  Directive (EU) 2019/633 of the European Parliament and of the Council of 17 April 2019 on unfair trading practices in business-to-business relationships in the agricultural and food supply chain (OJ L 111, 25.4.2019, p. 59).

18

(19)  Council Regulation (EC) No 1/2003 of 16 December 2002 on the implementation of the rules on competition laid down in Articles 81 and 82 of the Treaty (OJ L 1, 4.1.2003, p. 1).

19

(20)  Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (OJ L 173, 12.6.2014, p. 1).

20

(21)  Regulation (EU) No 251/2014 of the European Parliament and of the Council of 26 February 2014 on the definition, description, presentation, labelling and the protection of geographical indications of aromatised wine products and repealing Council Regulation (EEC) No 1601/91 (OJ L 84, 20.3.2014, p. 14).

21

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