1999R1259 — EN — 04.07.2001 — 001.001 — 1
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►B COUNCIL REGULATION (EC)No 1259/1999
of 17 May 1999
establishing common rules for direct support schemes under the common agricultural policy
(OJ L 160, 26.6.1999, p. 113)
Amended by:
Official Journal
No page date
►M1Council Regulation (EC) No 1244/2001 of 19 June 2001 L 173 1 27.6.2001
▼B
COUNCIL REGULATION (EC)No 1259/1999
of 17 May 1999
establishing common rules for direct support schemes under the
common agricultural policy
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, andin particular Article 37 thereof,
Having regard to the proposal from the Commission(
1),
Having regard to the opinion of the European Parliament(2),
Having regard to the opinion of the Economic and Social Committee(3),
Having regard to the opinion of the Committee of the Regions(4),
Having regard to the opinion of the Court of Auditors(5),
(1)Whereas for direct payments under the various income support
schemes in the common agricultural policy some common
conditions should be established;
(2)Whereas payments provided for under Community supportschemes should be made by the competent national authorities
in full to beneficiaries subject to any reductions explicitly
provided for in this Regulation;
(3)Whereas, with a view to better integrating the environment intothe common market organisations, Member States should apply
appropriate environmental measures in relation to agricultural
land and agricultural production subject to direct payments;whereas Member States should decide on the consequences in thecase of environmental requirements not being observed; whereasMember States should be enabled to reduce or even cancel
benefits accruing from support schemes where such environ-
mental requirements are not respected; whereas such measuresshould be taken by Member States notwithstanding the possibilityof granting aid in return for optional agri-environmentalcommitments;
(4)Whereas, in order to stabilise the employment situation inagriculture and to take into account the overall prosperity ofholdings and Community support to those holdings and thus tocontribute to a fair standard of living for the agricultural
community, including all persons engaged in agriculture, Member
States should be authorised to reduce direct payments to farmersin cases where the labour force used on their holding falls short oflimits to be determined and/or where the overall prosperity ofholdings and/or the total amounts of payments rise above limits to
be decided by Member States; whereas in order to maintain in
particular agricultural productivity, such reductions should,however, not exceed 20 % of the total amount of payments;
(5)Whereas detailed rules for reductions of payments should be
determined by Member States on the basis of objective criteria;
whereas Member States should be enabled to use amounts madeavailable from payment reductions for certain additional measuresin the framework of rural development support provided for underCouncil 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 andrepealing certain Regulations(
6);1999R1259 — EN — 04.07.2001 — 001.001 — 2
(1) OJ C 170, 4.6.1998, p. 93.
(2) Opinion delivered on 6 May 1999 (not yet published in the Official Journal).
(3) OJ C 407, 28.12.1998, p. 208.
(4) OJ C 93, 6.4.1999, p. 1.
(5) OJ C 401, 22.12.1998, p. 3.
(6) See page 80 of this Official Journal.
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(6)Whereas common support schemes have to be adapted to market
developments, if necessary within short time limits; whereasbeneficiaries cannot, therefore, rely on support conditionsremaining unchanged and should be prepared for a possiblereview of schemes in the light of market developments;
(7)Whereas the support schemes under the common agriculturalpolicy provide for direct income support in particular with a viewto ensuring a fair standard of living for the agriculturalcommunity; whereas this objective is closely related to the
maintenance of rural areas; whereas, in order to avoid misalloca-
tions of Community funds, no support payments should be madeto those farmers for whom it is established that they haveartificially created the conditions required for obtaining suchpayments with a view to obtaining an advantage contrary to the
objectives of support schemes;
(8)Whereas, in view of the significant budgetary implications of
direct payment support and in order to better appraise theirimpact, Community schemes should be subject to a proper
evaluation,
HAS ADOPTED THIS REGULATION:
Article 1
Scope
This Regulation shall apply to payments granted directly to farmers
under support schemes in the framework of the common agriculturalpolicy which are financed in full or in part by the ‘Guarantee’ section of
the EAGGF, except those provided for under Regulation (EC) No 1257/
1999.
These support schemes are listed in the Annex.
Article 2
Full payment
Payments under support schemes shall be made in full to the
beneficiaries.
Article 2a
1. For the calendar years 2002 to 2005 a simplified scheme shall be
established under which Member States may decide that the paymentsunder the following support schemes are made under the conditions laiddown in this Article and the rules adopted for its implementation:
— arable crops area payments including grass silage payment,
supplementary amounts, set-aside payments, durum wheat supple-
ment and special aid, as provided for in Articles 2, 4 and 5 of
Regulation (EC) No 1251/1999(
1),
— grain legumes area aid as provided for in Article 1 of Regulation
(EC) No 1577/96(2),
— rice area aid as provided for in Article 6 of Regulation (EC) No
3072/95(3),1999R1259 — EN — 04.07.2001 — 001.001 — 3
(1) Council Regulation (EC) No 1251/1999 of 17 May 1999 establishing a
support system for producers of certain arable crops (OJ L 160, 26.6.1999, p.
1). Regulation as last amended by Regulation (EC) No 1038/2001 (OJ L 145,
31.5.2001, p. 16).
(2) Council Regulation (EC) No 1577/96 of 30 July 1996 introducing a specific
measure in respect of certain grain legumes (OJ L 206, 16.8.1996, p. 4).
Regulation as last amended by Regulation (EC) No 811/2000 (OJ L 100,
20.4.2000, p. 1)
(3) Council Regulation (EC) No 3072/95 of 22 December 1995 on the common
organisation of the market in rice (OJ L 329, 30.12.1995, p. 18). Regulation
as last amended by Regulation (EC) No 1667/2000 (OJ L 193, 29.7.2000, p.3).▼M1
▼M1
— special premium, suckler cow premium, including when paid for
heifers and including the additional national suckler cow premiumwhen co-financed, extensification payments as well as additionalpayments, when paid in addition to aid provided for under this indent
as provided for in Articles 4, 6, 10, 13 and 14 of Regulation (EC) No
1254/1999(
1),
— ewe and she-goat premium and LFA supplements as provided for in
Article 5 of Regulation (EC) No 2467/98(2).
The Regulations mentioned in the first subparagraph are hereinafter
referred to as ‘the relevant regulations’.
2. Participation in the simplified scheme shall be on a voluntary
basis. Applicants shall have access to the scheme if they have receivedaid under at least one of the support schemes covered by it during eachof the three calendar years preceding the year of application. Farmers
receiving early retirement aid under Regulation (EC) No 1257/1999 may
not participate in the scheme.
3. The amount which a farmer may receive under the scheme shall be
the highest of:
(a) the average of the amounts granted under the relevant regulations
during the three calendar years preceding the year of application,
(b) the total amount granted under the relevant regulations in the
calendar year preceding the year of application.
Area aids for flax and hemp, provided for in Article 4 of Regulation
(EEC) No 1308/70(
3) shall be included in the calculation.
In case of application of Article 4 of this Regulation during the reference
periods referred to in points (a) and (b), the amounts referred to in the
said points (a) and (b) shall be calculated as the amounts that would
have been granted before application of Article 4.
4. The amount referred to in paragraph 3 shall be no more than
EUR 1 250.
However, applicants who would be entitled to receive higher amounts
under the relevant regulations may choose to enter the simplified schemeif they agree to receive no more than the maximum amount withoutprejudice to paragraph 5.
Aid under the simplified scheme shall be paid once a year, starting from
the year in which application for participation in the scheme is made,until 2005.
5. Member States may decide to apply Article 4 to the simplified
scheme.
6. Applicants will undertake to maintain the land in good agricultural
condition. They may use the land for any agricultural purpose except for
the production of hemp falling within CN Code 5302 10 00.
Member States shall define good agricultural conditions taking into
account notably, the measures they have taken in the application of thisRegulation and Article 19(4) of Regulation (EC) No 2316/1999(
4).1999R1259 — EN — 04.07.2001 — 001.001 — 4
(1) Council Regulation (EC) No 1254/1999 of 17 May 1999 on the common
organisation of the market in beef and veal (OJ L 160, 26.6.1999, p. 21).
(2) Council Regulation (EC) No 2467/98 of 3 November 1998 on the common
organisation of the market in sheepmeat and goatmeat (OJ L 312, 20.11.1998,
p. 1). Regulation as last amended by Regulation (EC) No 1669/2000 (OJ L
193, 29.7.2000, p. 8).
(3) Regulation (EEC) No 1308/70 of the Council of 29 June 1970 on the common
organisation of the market in flax and hemp (OJ L 146, 4.7.1970, p. 1).
Regulation as last amended by Regulation (EC) No 2826/2000 (OJ L 328,
23.12.2000, p. 2).
(4) Commission Regulation (EC) No 2316/1999 of 22 October 1999 laying down
detailed rules for the application of Council Regulation (EC) No 1251/1999
establishing a support system for producers of certain arable crops (OJ L 280,
30.10.1999, p. 43). Regulation as last amended by Regulation (EC) No 946/2001 (OJ L 133, 16.5.2001, p. 8).
▼M1
7. Member States may decide to implement the simplified scheme at
national or regional level and to combine the date of payments under theSimplified Scheme with the date of payment under any other supportscheme.
Article 3
Environmental protection requirements
1. Where agricultural activity within the scope of this Regulation is
concerned, Member States shall take the environmental measures theyconsider to be appropriate in view of the situation of the agricultural
land used or the production concerned and which reflect the potential
environmental effects. These measures may include:
— support in return for agri-environmental commitments,
— general mandatory environmental requirements,— specific environmental requirements constituting a condition for
direct payments.
2. Member States shall decide on the penalties that are appropriate
and proportionate to the seriousness of the ecological consequences ofnot observing the environmental requirements referred to in paragraph 1.They may provide for a reduction or, where appropriate, a cancellationof the benefits accruing from the support schemes concerned if such
environmental requirements are not respected.
Article 4
Modulation
1. Member States may decide to reduce the amounts of payments
which would, but for this paragraph, be granted to farmers in respect of a
given calendar year in cases where:
— the labour force used on their holdings during that calendar year,
expressed in annual work units, falls short of limits to be determined
by the Member States, and/or
— the overall prosperity of their holdings during that calendar year,
expressed in the form of standard gross margin corresponding to the
average situation of either a given region or a smaller geographic
entity, rises above limits to be decided by Member States, and/or
— the total amounts of payments granted under support schemes in
respect of a calendar year exceed limits to be decided by Member
States.
‘Annual work unit’ shall mean the national or regional average annual
working time of adult full-time farm workers employed throughout acalendar year.
‘Standard gross margin’ shall mean the difference between standard
production value and the standard amount for certain specific costs.
2. The reduction of support to a farmer in respect of a given calendar
year, resulting from the application of the measures referred to inparagraph 1, shall not exceed 20 % of the total amount of paymentswhich would, but for paragraph 1, be granted to the farmer in respect ofthe calendar year concerned.
Article 5
Common provision
1. Member States shall apply the measures referred to in Articles 3
and 4 in such a way as to ensure equal treatment between farmers and toavoid market and competition distortions.
2. The difference between the amounts which would, but for
Articles 3 and 4, be paid to farmers in a Member State in respect of acalendar year and the amounts calculated after application of thoseArticles, shall be available to the Member State concerned within timelimits to be fixed under the procedure referred to in Article 11 as
additional Community support for measures under Articles 10 to 121999R1259 — EN — 04.07.2001 — 001.001 — 5
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(early retirement), 13 to 21 (less-favoured areas and areas with
environmental restrictions), 22 to 24 (agri-environment) and 31(afforestation) of Regulation (EC) No 1257/1999.
Article 6
Review
Support schemes shall be applied without prejudice to possible review at
any moment in the light of market developments.
Article 7
Restriction of payments
Nothwithstanding any specific provisions in individual support schemes,
no payment shall be made in favour of beneficiaries for whom it isestablished that they artificially created the conditions required for
obtaining such payments with a view to obtaining an advantage contrary
to the objectives of that support scheme.
Article 8
Evaluation
In order to gauge their effectiveness, payments under support schemes
shall be subject to evaluation designed to appraise their impact with
respect of their objectives and to analyse their effects on the relevant
markets.
Article 9
Transmission of information to the Commission
Member States shall inform the Commission in detail on the measures
taken to implement this Regulation.
Article 10
Definitions
For the purposes of this Regulation:
(a) ‘farmer’ shall mean an individual agricultural producer, whether a
natural or legal person or a group of natural or legal persons,whatever legal status is granted the group and its members bynational law, whose holding is within Community territory,
(b) ‘holding’ shall mean all the production units managed by a farmer
situated within the same Member State's territory,
(c) payments to be granted in respect of a calendar year shall include
payments to be granted in respect of other periods starting in thatcalendar year.
Article 11
Detailed rules
1. The Commission shall be assisted by the Management Committee
for cereals set up by Article 23 of Regulation (EC) No 1766/92(
1) or,
where appropriate, by other relevant management committees.
2. Where reference is made to this paragraph, Articles 4 and 7 of
Decision 1999/468/EC shall apply.
3. The period provided for in Article 4(3) of Decision 1999/468/EC
shall be set at one month.1999R1259 — EN — 04.07.2001 — 001.001 — 6
(1) Council Regulation (EEC) No 1766/92 of 30 June 1992 on the common
organisation of the market in cereals (OJ L 181, 1.7.1992, p. 21). Regulation
as last amended by Regulation (EC) No 1666/2000 (OJ L 193, 29.7.2000, p.1).▼M1
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4. In accordance with paragraph 2, the Commission shall adopt:
— detailed rules for the application of Article 2a including any
derogation from the relevant regulations and Regulation (EEC) No3508/92(
1), which are necessary to achieve the aim of simplification,
notably those related to eligibility conditions, dates of application
and payment and control provisions as well as detailed rules in order
to avoid double claims in respect of the area and production coveredby the simplified scheme,
— amendments to the Annex as may become necessary taking into
account the criteria set out in Article 1, and
— where appropriate, detailed rules for the application of this
Regulation including, in particular, the measures necessary to avoid
Articles 3 and 4 being circumvented, as well as those concerningArticle 7.
Article 12
Entry into force
This Regulation shall enter into force on the day of its publication in the
Official Journal of the European Communities .
It shall apply as from 1 January 2000.
This Regulation shall be binding in its entirety and directly applicable in
all Member States.1999R1259 — EN — 04.07.2001 — 001.001 — 7
(1) Council Regulation (EEC) No 3508/92 of 27 November 1992 establishing an
integrated administration and control system for certain Community aid
schemes (OJ L 355, 5.12.1992, p. 1). Regulation as last amended byCommission Regulation (EC) No 495/2001 (OJ L 72, 14.3.2001, p. 6).▼B
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ANNEX
LIST OF SUPPORT SCHEMES FULFILLING THE CRITERIA SET OUT IN ARTICLE 1
Sector Legal base Notes
Arable crops Articles 2 and 5
Regulation (EC) No 1251/1999Area payments including set-aside
payments and including durum wheat
supplement and special aid
Potato starch Article 8(2)
Regulation (EEC) No 1766/92Payment
Cereals Article 3
Regulation (EEC) No 3653/90 (as
read together with Regulation (EEC)
No 738/93)Transitional measures governing
common organisation of the market
for cereals in Portugal
Olive oil Article 5(1)
Regulation 136/66/EECProduction aid
Grain legumes Article 1
Regulation (EC) No 1577/96Area aid
Flax Article 4
Regulation (EEC) No 1308/70Area aid (the portion paid to farmers)
Hemp Article 4
Regulation (EEC) No 1308/70Area aid
Silkworms Article 2
Regulation (EEC) No 845/72Aid to encourage rearing
Bananas Article 12
Regulation (EEC) No 404/93Production aid
Dried grapes Article 7(1)
Regulation (EC) No 2201/96Area aid
Tobacco Article 3
Regulation (EEC) No 2075/92Production aid
Seeds Article 3
Regulation (EEC) No 2358/71Production aid
Hops Article 12
Regulation (EEC) No 1696/71Area aid
Regulation (EC) No 1098/98 Payments for temporary resting only
Rice Article 6
Regulation (EC) No 3072/95Area aid
Beef and veal Articles 4, 5, 6 and 10, 11, 13
Regulation (EC) No 1254/1999Special premium, deseasonalisation
premium, suckler cow premium
(including when paid for heifers and
including the additional nationalsuckler cow premium when co-
financed), slaughter premium, extensi-
fication payment, additional payments
Milk and dairy
productsArticles 16 and 17
Regulation (EC) No 1256/1999Dairy premium and additional
payments
Sheep and goats Article 5
Regulation (EC) No 2467/98Ewe and she-goat premium and LFA
supplements
Agri-money Articles 4 and 5 of
Regulation (EC) No 2799/98
Articles 2 and 3 of
Regulation (EC) No 2800/98Payments to producers (including those
under the transitional Regulation)
Poseidom Articles 5, 13(1), 17
Regulation (EEC) No 3763/91Sectors: beef and veal; development of
fruit, vegetables, plants and flowers;
sugar
Poseima Articles 11, 14 & 24, 16 & 27,
17 & 25(1), 22 & 29, 30
Regulation (EEC) No 1600/92Sectors: development of fruit, vegeta-
bles, plants and flowers; beef and veal
and milk; potatoes and endives; sugar;
wine; pineapples1999R1259 — EN — 04.07.2001 — 001.001 — 8
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Sector Legal base Notes
Poseican Articles 10, 13, 15, 19, 20, 24
Regulation (EEC) No 1601/92Sectors: beef and veal; development of
fruit, vegetables, plants and flowers;
sheep and goats; wine; potatoes; honey
Aegean Islands Articles 6, 7, 8, 9, 11, 12
Regulation (EEC) No 2019/93Sectors: beef and veal; development of
fruit, vegetables, plants and flowers;
potatoes; wine; olives; honey1999R1259 — EN — 04.07.2001 — 001.001 — 9