1999R1257 — EN — 28.10.2003 — 001.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COUNCILREGULATION(EC)No1257/1999
of17May1999
onsupportforruraldevelopmentfromtheEuropeanAgriculturalGuidanceandGuaranteeFund
(EAGGF) andamendingandrepealing certainRegulations
(OJ L 160, 26.6.1999, p. 80)
Amended by:
Official Journal
No page date
►M1Council Regulation (EC) No 1783/2003 of 29 September 2003 L 270 70 21.10.2003
Corrected by:
►C1Corrigendum, OJ L 302, 1.12.2000, p. 72 (1257/1999)
▼B
COUNCILREGULATION(EC)No1257/1999
of17May1999
on support for rural development from the European Agricultural
Guidance and Guarantee Fund (EAGGF) and amending and
repealingcertain Regulations
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, andinparticular Articles 36 an d 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 a common rural development policy should accompany
and complement the other instruments of the common agricul-
tural policy and thus contribute to the achievement of thepolicy's objectives as laid downinArticle 33(1) of the Treaty;
(2)Whereas, according to Article 33(2)(a) of the Treaty, in workingout the commonagricultural policy an d the special methods for
its application, account is to be taken of the particular nature of
agricultural activity which results from the social structure ofagriculture and from structural and natural disparities betweenthe various agricultural regions;
(3)Whereas, according to Article 159 of the Treaty, the implemen-tation of the common policies is to take into account theobjectives set out inArticles 158 an d 160 for the commonpolicyof economic and social cohesion and contribute to their achieve-ment; whereas rural development measures should, therefore,contribute to this policy in regions whose development is lagging
behind (Objective 1) and regions facing structural difficulties
(Objective 2) as defined in Council Regulation (EC) No 1260/1999, of 21 June 1999 laying down general provisions on theStructural Funds(
6);
(4)Whereas measures designed to support the improvement of agri-
cultural structures were introduced into the common agricultural
policy as early as 1972; whereas for almost two decades,attempts have beenmade to in tegrate agricultural structuralpolicy into the wider economic and social context of rural areas;whereas the 1992 policy reform stressed the environmental
dimension of agriculture as the largest land user;
(5)Whereas rural policy is currently carried out through a range of
complex instruments;
(6)Whereas over the coming years, agriculture will have to adapt to
new realities and further changes in terms of market evolution,
market policy and trade rules, consumer demand and preferencesand the Community's next enlargement; whereas these changeswill affect not only agricultural markets but also local economiesin rural areas in general; whereas a rural development policy
should aim at restoring and enhancing the competitiveness of
rural areas and, therefore, contribute to the maintenance andcreationof employmen t inthose areas;1999R1257 — EN — 28.10.2003 — 001.001 — 2
(1) OJ C 170, 4.6.1998, p. 7.
(2) Opinion delivered on 6 May 1999 (not yet published in the Official Journal).
(3) OJ C 407, 28.12.1998, p. 210.
(4) OJ C 93, 6.4.1999, p. 1.
(5) OJ C 401, 22.12.1998, p. 3.
(6) OJ L 161, 26.6.1999, p. 1.
▼B
(7)Whereas these developments should be encouraged and
supported by reorganisation and simplification of the existing
rural development instruments;
(8)Whereas such reorganisation should take into account the experi-ence gained in applying existing instruments and thus be based
on those instruments, which are those implemented under the
current priority objectives promoting rural development byspeeding up the adjustment of agricultural structures in theframework of the reform of the commonagricultural policy an dfacilitating the development and structural adjustment of rural
areas (Objectives 5a and 5b), as laid down in Council Regulation
(EEC) No 2052/88 of 24 June 1988 on the tasks of the StructuralFunds and their effectiveness and on coordination of their activ-ities between themselves and with the operations of theEuropean Investment Bank and the other existing financialinstruments (
1) and Council Regulation (EEC) No 4256/88 of 19
December 1988 laying down provisions for implementing Regu-
lation(EEC) No 2052/88 as regards the EuropeanAgriculturalGuidance and Guarantee Fund (EAGGF) Guidance Section (
2),
and those introduced as accompanying measures to the 1992commonagricultural policy reform by Coun cil Regulation
(EEC) No 2078/92 of 30 June 1992 on agricultural production
methods compatible with the requirements of the protection ofthe environment and the maintenance of the countryside (
3),
Council Regulation (EEC) No 2079/92 of 30 June 1992 insti-tuting a Community aid scheme for early retirement fromfarming (
4) and Council Regulation (EEC) No 2080/92 of 30
June 1992 instituting a Community aid scheme for forestry
measures inagriculture (5);
(9)Whereas the framework of a reformed rural development policy
should cover all rural areas inthe Commun ity;
(10)Whereas the three existing accompanying measures introduced
by the 1992 reform of the commonagricultural policy (agri-environment, early retirement and afforestation) should be
supplemented by the scheme for less-favoured areas and areas
with environmental restrictions;
(11)Whereas other rural development measures should form part of
integrated development programmes for Objective 1 and may
form part of programmes for Objective 2 regions;
(12)Whereas inrural areas, rural developmen t measures shouldaccompany and complement market policies;
(13)Whereas support from the EAGGF for rural development shouldbe based on a single legal framework establishing measureseligible for support, their objectives and criteria for eligibility;
(14)Whereas, giventhe diversity of the Commun ity's rural areas,rural development policy should follow the principle of subsi-diarity; whereas it should therefore, be as decentralised aspossible and emphasis must be on participation and a ‘bottom
up’ approach; whereas, therefore, eligibility criteria for rural
development support should not go beyond what is necessary toachieve the objectives of rural development policy;1999R1257 — EN — 28.10.2003 — 001.001 — 3
(1) OJ L 185, 15.7.1988, p. 9. Regulationas last amen ded by Regulation(EC)
No 3193/94 (OJ L 337, 24.12.1994, p. 11).
(2) OJ L 374, 31.12.1988, p. 25. Regulationas last amen ded by Regulation
(EEC) No 2085/93 (OJ L 193, 31.7.1993, p. 44).
(3) OJ L 215, 30.7.1992, p. 85. Regulationas last amen ded by Commission
Regulation(EC) No 2272/95 (OJ L 288, 1.12.1995, p. 35). Regulationrecti-
fied by CommissionRegulation(EC) No 1962/96 (OJ L 259, 12.10.1996,p. 7).
(
4) OJ L 215, 30.7.1992, p. 91. Regulationas amen ded by CommissionRegula-
tion(EC) No 2773/95 (OJ L 288, 1.12.1995, p. 37).
(5) OJ L 215, 30.7.1992, p. 96. Regulationas last amen ded by Commission
Regulation(EC) No 231/96 (OJ L 30, 8.2.1996, p. 33).
▼B
(15)Whereas consistency with other instruments of the common agri-
cultural policy and with other common policies requires,
however, basic support criteria to be laid downat Commun itylevel; whereas, in particular, unjustified distortions of competi-tion resulting from rural development measures should beavoided;
(16)Whereas, in order to ensure flexibility and to simplify legisla-tion, the Council should confer all necessary implementingpowers on the Commission in accordance with the third indent
of Article 202 of the Treaty;
(17)Whereas the structure of agriculture inthe Commun ity is typi-
fied by the existence of a large number of holdings which lackthe structural conditions to ensure a fair income and livingconditions for farmers and their families;
(18)Whereas the aim of Community investment aid is to moderniseagricultural holdings and to improve their viability;
(19)Whereas Community conditions concerning eligibility for invest-ment aid should be simplified as compared to the existingconditions laid down in Council Regulation (EC) No 950/97 of
20 May 1997 on improving the efficiency of agricultural struc-
tures (
1);
(20)Whereas the granting of specific benefits to young farmers mayfacilitate not only their establishment but also the structuraladjustment of their holdings after their initial establishment;
(21)Whereas the evolutionan d specialisationof agriculture requirean appropriate level of general, technical and economic trainingfor persons involved in agricultural and forestry activities, espe-cially as regards new approaches to management, production and
marketing;
(22)Whereas a particular effort is needed to educate farmers in andinform them of agricultural methods compatible with the envir-
onment;
(23)Whereas early retirement from farming should be encouraged inorder to improve the viability of agricultural holdings, takinginto account the experience acquired in the implementation ofRegulation(EEC) No 2079/92;
(24)Whereas support for less-favoured areas should contribute to thecontinued use of agricultural land, maintaining the countryside,maintenance and promotion of sustainable farming systems;
(25)Whereas less-favoured areas should be classified onthe basis of
commoncriteria;
(26)Whereas there is no need for any further classification of less-favoured areas at Community level;
(27)Whereas conditions concerning eligibility for compensatoryallowances should be laid down in order to ensure the efficiency
of this support scheme and to ensure that its objectives areachieved;
(28)Whereas for limitations on agricultural use in areas with envir-onmental restrictions it might be necessary that support isgranted to farmers to solve their specific problems arising fromthese limitations;
(29)Whereas, in the coming years, a prominent role should be given
to agri-environmental instruments to support the sustainable
development of rural areas and to respond to society's increasingdemand for environmental services;
(30)Whereas the existing agri-environmental support under Regula-tion (EEC) No 2078/92 should be continued for targeted1999R1257 — EN — 28.10.2003 — 001.001 — 4
(1) OJ L 142, 2.6.1997, p. 1. Regulationas amen ded by Regulation(EC)
No 2331/98 (OJ L 291, 30.10.1998, p. 10).
▼B
environmental measures, taking into account experience gained
inthe implemen tationof this scheme as described indetail inthe Commission's report presented pursuant to Article 10(2) of
Regulation(EEC) No 2078/92;
(31)Whereas the agri-environmental aid scheme should continue to
encourage farmers to serve society as a whole by introducing orcontinuing the use of farming practices compatible with theincreasing need to protect and improve the environment, naturalresources, soil and genetic diversity and to maintain the land-scape and the countryside;
(32)Whereas improvements in the processing and marketing of agri-
cultural products should be encouraged by support for
investments in that field;
(33)Whereas such support can largely be based on existing condi-tions as currently laid down in Council Regulation (EC) No 951/97 of 20 May 1997 on improving the processing and marketingconditions for agricultural products (
1).
(34)Whereas it should be ensured that such investments are viableand that farmers have a share in the economic benefits of theactiontaken ;
(35)Whereas forestry is an integral part of rural development and
forestry measures should, therefore, be included under the rural
development support scheme, whereas support for forestryshould avoid distorting competition and should be marketneutral;
(36)Whereas forestry measures should be adopted inthe light ofundertakings given by the Community and the Member Statesat international level and be based on Member States' forestry
plans; whereas such measures should also take into account the
specific problems of climate change;
(37)Whereas forestry measures should be based onthose takenun derthe existing schemes laid down in Council Regulation (EEC)No 1610/89 of 29 May 1989 laying down provisions for imple-menting Regulation (EEC) No 4256/88 as regards the scheme todevelop and optimally utilise woodlands in rural areas in the
Community (
2) and in Council Regulation (EEC) No 867/90 of
29 March 1990 on improving the processing and marketingconditions for forestry products (
3);
(38)Whereas the afforestationof agricultural lan d is especiallyimportant from the point of view of soil use and the environmentand as a contribution to increasing supplies for certain forestryproducts, whereas the existing support for afforestation underRegulation (EEC) No 2080/92 should, therefore, be continued,
taking into account the experience gained in the implementation
of that scheme as described indetail inthe Commission 's reportpresented pursuant to Article 8(3) thereof;
(39)Whereas payments should be granted for activities to maintainand improve ecological stability of forests in certain areas;
(40)Whereas support should be granted for other measures relating tofarming activities and their conversion; whereas the list ofmeasures should be defined on the basis of experience and
having regard to the need for rural development to be based
partly on non-agricultural activities and services so as to reversethe trend towards the economic and social decline and depopula-tion of the countryside; whereas measures to remove inequalitiesand to promote equal opportunities for men and women shouldbe supported;1999R1257 — EN — 28.10.2003 — 001.001 — 5
(1) OJ L 142, 2.6.1997, p. 22.
(2) OJ L 165, 15.6.1989, p. 3.
(3) OJ L 91, 6.4.1990, p. 7.
▼B
(41)Whereas demand from consumers for organically-produced agri-
cultural products and foodstuffs is increasing; whereas a new
market for agricultural products is thus being created; whereasorganic agriculture improves the sustainability of farming activ-ities and thus contributes to the general aims of this Regulation;whereas the specific rural development support measures mayconcern the production, processing and marketing of organi-
cally-produced agricultural products;
(42)Whereas rural development measures eligible for Community
support should comply with Community law and be consistent
with other Community policies as well as with other instruments
of the commonagricultural policy;
(43)Whereas inthe framework of this Regulationsupport should be
excluded for certainmeasures eligible un der other commonagri-
cultural policy instruments and in particular those falling withinthe scope of support schemes under common organisations of themarket with the exceptions justified by objective criteria;
(44)Whereas, in view of existing aid to producer groups and theirassociations in several common organisations of the market,specific support to producer groups inthe framework of ruraldevelopment no longer appears to be necessary; whereas, there-
fore, the aid scheme existing under Council Regulation (EC)
No 952/97 of 20 May 1997 on producer groups and associationsthereof (
1) should be discontinued;
(45)Whereas the financing of Community support for the accompa-nying measures and for other rural development measures inareas other thanObjective 1 should come from the Guaran teeSection of the EAGGF; whereas the basic financial rules laiddowninRegulation(EC) No 1260/1999 have beenadaptedaccordingly;
(46)Whereas the financing of Community support for rural develop-ment measures, in areas covered by Objective 1, should continueto come from the Guidance Section of the EAGGF except for
the three existing accompanying measures and the support for
less-favoured areas and areas with environmental restrictions;
(47)Whereas, with regard to the support for rural developmentmeasures covered by Objective 1 and Objective 2 programming,Regulation(EC) No 1260/1999 should apply, inparticular as tointegrated programming of these measures; whereas, however,rules concerning financing should take into account the Guar-antee financing of measures in Objective 2 regions;
(48)Whereas rural development measures not covered by Objective 1or Objective 2 programming should be subject to rural develop-ment programming pursuant to specific rules; whereas rates of
assistance for such measures should be differentiated according
to the general principles laid down in Article 29(1) of Regulation(EC) No 1260/1999 taking sufficiently into account the require-ment of social and economic cohesion; whereas, as a result,those assistance rates should, in principle, be differentiated asbetween areas covered by Objective 1 and Objective 2 and other
areas; whereas the rates laid downinthis Regulationare the
maximum rates of Community assistance;
(49)Whereas, inadditionto rural developmen t programmes, theCommissionshould be able to make provision s for studies onrural development on its own initiative notwithstanding the ruraldevelopment initiative provided for in Articles 19 and 20 ofRegulation(EC) No 1260/1999;
(50)Whereas appropriate rules should be established for the moni-toring and evaluation of rural development support, using as areference well-defined indicators to be agreed and establishedprior to programme implementation;1999R1257 — EN — 28.10.2003 — 001.001 — 6
(1) OJ L 142, 2.6.1997, p. 30.
▼B
(51)Whereas rural development measures should be eligible for
Member State support without any Community co-financing;
whereas, in view of the considerable economic impact of suchaid and in order to ensure consistency with measures eligiblefor Community support and simplify procedures, specific State-aid rules should be established;
(52)Whereas it should be possible to adopt transitional rules to facil-itate the transition from existing support schemes to the newrural development support scheme;
(53)Whereas the new support scheme provided for in this Regulationreplaces existing support schemes which should therefore berepealed; whereas, as a consequence, the derogation in current
schemes for outermost regions and for the Aegean Islands will
equally have to be repealed; whereas new rules providing forthe necessary flexibility, adaptations and derogations in order tomeet the specific needs of those regions will be established whenrural development measures are programmed,
HAS ADOPTED THIS REGULATION:
TITLE I
SCOPEANDOBJECTIVES
Article 1
1. This Regulationestablishes the framework for Commun ity
support for sustainable rural development.
2. Rural development measures shall accompany and complement
other instruments of the common agricultural policy and thus contri-
bute to the achievement of the objectives laid down in Article 33 ofthe Treaty.
3. Rural development measures shall:
— be integrated into the measures promoting the development and
structural adjustment of regions whose development is laggingbehind (Objective 1), and
— accompany the measures supporting the economic and social
conversion of areas facing structural difficulties (Objective 2)
in the regions concerned, taking into account the specific targets of
Community support under these objectives as laid down in Articles158 and 160 of the Treaty and in Regulation (EC) No 1260/1999 andaccording to the conditions laid down in this Regulation.
Article 2
Support for rural development, related to farming activities and their
conversion, may concern:
— the improvement of structures in agricultural holdings and struc-
tures for the processing and marketing of agricultural products,
— the conversion and reorientation of agricultural production poten-
tial, the introduction of new technologies and the improvement of
product quality,
— the encouragement of non-food production,— sustainable forest development,— the diversificationof activities with the aim of complemen tary or
alternative activities,
— the maintenance and reinforcement of viable social fabric in rural
areas,
— the development of economic activities and the maintenance and
creation of employment with the aim of ensuring a better exploita-tion of existing inherent potential,
— the improvement of working and living conditions,— the maintenance and promotion of low-input farming systems,1999R1257 — EN — 28.10.2003 — 001.001 — 7
▼B
— the preservation and promotion of a high nature value and a sustain-
able agriculture respecting environmental requirements,
— the removal of inequalities and the promotion of equal opportunities
for men and women, in particular by supporting projects initiatedand implemented by women.
Article 3
Support shall be granted for the rural development measures defined in
Title II and under the conditions laid down therein.
TITLE II
RURALDEVELOPMENTMEASURES
CHAPTER I
INVESTMENTINAGRICULTURALHOLDINGS
Article 4
Support for investment in agricultural holdings shall contribute to the
improvement of agricultural incomes and of living, working andproduction conditions.
Such investment shall pursue one or more of the following objectives:
— to reduce productioncosts,
— to improve and redeploy production,— to increase quality,— to preserve and improve the natural environment, hygiene condi-
tions and animal welfare standards,
— to promote the diversificationof farm activities.
Article 5
►
M11.◄Support for investment shall be granted to agricultural
holdings:
— the economic viability of which can be demonstrated,
— which comply with minimum standards regarding the environment,
hygiene and animal welfare, and
— where the farmer possesses adequate occupational skill and compe-
tence.
2. The conditions for support for investment laid down in paragraph
1 must be fulfilled at the time when the individual decision to grantsupport is taken.
3. Where investments are made in order to comply with newly intro-
duced minimum standards relating to the environment, hygiene, andanimal welfare, support may be granted in order to comply with thenew standards. In such cases, a period of grace may be provided tofarmers to meet these minimum standards where time is needed tosolve specific problems involved in complying with such standards.
The farmer shall comply with the relevant standards by the end of the
investment period.
Article 6
Support shall not be granted for investment which has as its objective
an increase in production for which no normal market outlets can be
found.
Article 7
Member States shall set limits for total investment eligible for support.1999R1257 — EN — 28.10.2003 — 001.001 — 8
▼M1
▼B
▼M1
The total amount of support, expressed as a percentage of the volume
of eligible investment, is limited to a maximum of 40 % and 50 % inless-favoured areas.
Where investments are undertaken by young farmers, as referred to in
Chapter II, these percentages may reach a maximum of 50 % and 60 %
in less-favoured areas during a period not exceeding five years fromthe setting up. The age condition laid down in the first indent of Article8(1) must be met at the time of setting up.
CHAPTER II
SETTINGUPOFYOUNGFARMERS
Article 8
1. Setting-up aid to facilitate the establishment of young farmers
shall be granted under the following conditions:
— the farmer is under 40 years of age,
— the farmer possesses adequate occupational skill and competence,
— the farmer is setting up on an agricultural holding for the first time,
— as regards the holding:
(i) economic viability can be demonstrated, and
(ii) minimum standards regarding the environment, hygiene and
animal welfare are complied with,
and
— the farmer is established as head of the holding.
Specific conditions may be applied in a situation where a young farmer
is not established as sole head of the holding. These conditions must be
equivalent to those required for a young farmer setting up as sole head
of a holding.
2. The setting-up aid may comprise:
(a) a single premium up to the maximum eligible amount specified in
the Annex, and
(b) an interest subsidy on loans taken on with a view to covering the
costs arising from setting-up; the capitalised value of the interestsubsidy may not exceed the value of the premium.
A support higher than the maximum amount referred to in point a)
but not exceeding EUR 30 000 may be granted to young farmerswho are using farm advisory services linked to the setting-up oftheir activity during a period of three years after setting-up.
CHAPTER III
TRAINING
Article 9
Support for vocational training shall contribute to the improvement of
the occupational skill and competence of farmers and other personsinvolved in agricultural activities and forestry activities, and theirconversion.
Training shall in particular be designed:
— to prepare farmers and other persons involved in agricultural activ-
ities for qualitative reorientation of production, the application ofproduction practices compatible with the maintenance and enhance-ment of the landscape, the protection of the environment, hygienestandards and animal welfare and acquisition of the skills neededto enable them to manage an economically viable farm, and1999R1257 — EN — 28.10.2003 — 001.001 — 9
▼B
▼M1
▼B
▼M1
▼B
— to prepare forest holders and other persons involved in forestry
activities for the application of forest management practices toimprove the economic, ecological or social functions of forests.
CHAPTER IV
EARLYRETIREMENT
Article 10
1. Support for early retirement from farming shall contribute to the
following objectives:
— to provide anin come for elderly farmers who decide to stop
farming,
— to encourage the replacement of such elderly farmers by farmers
able to improve, where necessary, the economic viability of theremaining agricultural holdings,
— to reassign agricultural land to non-agricultural uses where it cannot
be farmed under satisfactory conditions of economic viability.
2. Early retirement support may include measures to provide an
income for farm workers.
Article 11
1. A transferor of a farm shall:
— stop all commercial farming activity definitively; he may, however,
continue non-commercial farming and retain the use of the build-ings,
— be not less than 55 years old but not yet of normal retirement age at
the time of transfer, and
— have practised farming for the 10 years preceding transfer.
2. The transferee of a farm shall:
— succeed the transferor as the head of the agricultural holding or take
over all or part of the land released. The economic viability of thetransferee's holding must be improved within a period and incompliance with conditions to be defined in terms of, in particular,the transferee's occupational skill and competence and the surface
area and volume of work or income, according to the region and
type of production,
— possess adequate occupational skill and competence, and— undertake to practise farming on the agricultural holding for not
less thanfive years.
3. A farm worker shall:
— stop all farm work definitively,
— be not less than 55 years old but not yet of normal retirement age,— have devoted at least half of his working time as a family helper or
farm worker to farm work during the preceding five years,
— have worked on the transferor's agricultural holding for at least the
equivalent of two years full-time during the four-year periodpreceding the early retirement of the transferor, and
— belong to a social security scheme.
4. A non-farming transferee may be any other person or body who
takes over released land to use it for non-agricultural purposes, such as
forestry or the creation of ecological reserves, in a manner compatible
with protection or improvement of the quality of the environment ofthe countryside.
5. The conditions laid down in this Article shall be applied
throughout the period during which the transferor receives early retire-ment support.1999R1257 — EN — 28.10.2003 — 001.001 — 10
▼B
Article 12
1. The maximum amounts eligible for Community support are laid
down in the Annex.
2. The duration of early retirement support shall not exceed a total
period of 15 years for the transferor and 10 years for the farm worker.It shall not go beyond the 75th birthday of a transferor and not gobeyond the normal retirement age of a worker.
Where in the case of a transferor a normal retirement pension is paid
by the Member State, early retirement support shall be granted as asupplement taking into account the amount of the national retirementpension.
CHAPTER V
LESS-FAVOURED AREAS AND AREAS WITH ENVIRONMENTAL
RESTRICTIONS
Article 13
Support for less-favoured areas and areas with environmental restric-
tions shall contribute to the following objectives.
(a)Compensation for naturally less-favoured areas
— to ensure continued agricultural land use and thereby contribute
to the maintenance of a viable rural community,
— to maintain countryside,— to maintain and promote sustainable farming systems which in
particular take account of environmental protection require-ments.
(b)Compensation for areas with environmental restrictions
— to ensure environmental requirements and safeguard farming in
areas with environmental restrictions.
Article 14
1. Farmers inless-favoured areas may be supported by compen sa-
tory allowances.
2. Compensatory allowances shall be granted per hectare of areas
used for agriculture to farmers who:
— farm a minimum area of land to be defined,
— undertake to pursue their farming activity in a less-favoured area
for at least five years from the first payment of a compensatoryallowance, and
— apply usual good farming practices compatible with the need to
safeguard the environment and maintain the countryside, in parti-cular by sustainable farming.
3. Where residues of substances prohibited under Directive 96/22/
EC (
1) or residues of substances authorised under that Directive but
used illegally, are detected pursuant to the relevant provisions ofCouncil Directive 96/23/EC (
2) in an animal belonging to the bovine
herd of a producer, or where an unauthorised substance or product, or
a substance or product authorised under Directive 96/22/EC but held
illegally is found on the producer's holding in any form, the producershall be excluded from receiving compensatory allowances for thecalendar year of that discovery.
In the event of a repeated infringement, the length of the exclusion
period may, depending on the seriousness of the offence, be extended
to five years from the year in which the repeated infringement wasdiscovered.1999R1257 — EN — 28.10.2003 — 001.001 — 11
(1) OJ L 125, 23.5.1996, p. 3.
(2) OJ L 125, 23.5.1996, p. 10.
▼B
In the event of obstruction on the part of the owner or holder of the
animals when inspections are being carried out and the necessarysamples are being taken in application of national residue-monitoring
plans, or when the investigations and checks provided for under Direc-
tive 96/23/EC are being carried out, the penalties provided for in thefirst subparagraph shall apply.
Article 15
1. Compensatory allowances shall be fixed at a level which:
— is sufficient in making an effective contribution to compensation for
existing handicaps, and
— avoids overcompensation.
2. Compensatory allowances shall be duly differentiated, taking into
account:
— the situation and development objectives peculiar to a region,
— the severity of any permanent natural handicap affecting farming
activities,
— the particular environmental problems to be solved where appro-
priate,
— the type of production and, where appropriate, the economic struc-
ture of the holding.
3. Compensatory allowances shall be fixed between the minimum
and maximum amounts set out in the Annex.
Compensatory allowances higher than this maximum amount may be
granted provided that the average amount of all compensatory allow-
ances granted at the programming level concerned does not exceedthis maximum amount. Member States may, for the purpose of calcu-lating the average amount, present a combination of several regionalprogrammes. However, incases duly justified by objective circum-
stances, the average amount may be increased to the maximum
average amount set out in the Annex.
Article 16
1. Payments to compensate for costs incurred and income foregone
may be made to farmers who are subject to restrictions on agricultural
use in areas with environmental restrictions as a result of the imple-mentation of Directives 79/409/EEC (
1) and 92/43/EEC (2), if and in
so far as such payments are necessary to solve the specific problemsarising from the implementation of those Directives.
2. Payments shall be fixed at a level which avoids overcompensa-
tion; this is especially necessary in the case of payments in less-
favoured areas.
3. The maximum amount eligible for Community support is laid
down in the Annex. This amount may be increased in duly justifiedcases to take account of specific problems.
A support higher than this maximum amount may be granted during a
period not exceeding five years from the date the provision imposing
new restrictions becomes mandatory in accordance with Community
legislation. This support shall be granted annually on a degressive basisand shall not exceed the amount set out in the Annex.1999R1257 — EN — 28.10.2003 — 001.001 — 12
(1) OJ L 103, 25.4.1979, p. 1. Directive as last amended by Regulation (EC) No
807/2003 (OJ L 122, 6.5.2003, p. 36).
(2) OJ L 206, 22.7.1992, p. 7. Directive as last amended by Directive 97/62/EC
(OJ L 305, 8.11.1997, p. 42).▼M1
▼B
▼M1
▼B
▼M1
▼B
Article 17
Less-favoured areas shall include:
— mountain areas (Article 18),
— other less-favoured areas (Article 19), and— areas affected by specific handicaps (Article 20).
Article 18
1. Mountain areas shall be those characterised by a considerable
limitation of the possibilities for using the land and an appreciableincrease in the cost of working it due:
— to the existence, because of altitude, of very difficult climatic
conditions, the effect of which is substantially to shorten the
growing season,
— at a lower altitude, to the presence over the greater part of the area
in question of slopes too steep for the use of machinery or requiringthe use of very expensive special equipment, or
— to a combination of these two factors, where the handicap resulting
from each takenseparately is less acute but the combin ationof the
two gives rise to an equivalent handicap.
2. Areas north of the 62nd Parallel and certain adjacent areas shall
be treated inthe same way as moun tainareas.
Article 19
Less-favoured areas which are in danger of abandonment of land-use
and where the conservation of the countryside is necessary, shall
comprise farming areas which are homogeneous from the point of
view of natural production conditions and exhibit all of the followingcharacteristics:
— the presence of land of poor productivity, difficult cultivation and
with a limited potential which cannot be increased except at exces-sive cost, and which is mainly suitable for extensive livestockfarming,
— production which results from low productivity of the natural envir-
onment which is appreciably lower than the average, with regard tothe main indices of economic performance in agriculture,
— a low or dwindling population predominantly dependent on agricul-
tural activity, the accelerated decline of which would jeopardise the
viability of the area concerned and its continued habitation.
Article 20
►
M11.◄Less-favoured areas may include other areas affected
by specific handicaps, in which farming should be continued, wherenecessary and subject to certain conditions, in order to conserve orimprove the environment, maintain the countryside and preserve thetourist potential of the area or in order to protect the coastline.
2. Areas referred to inparagraph 1 may n ot exceed 10 % of the area
of the Member State concerned.
CHAPTER Va
MEETINGSTANDARDS
Article 21a
Support to help farmers to adapt to demanding standards based on
Community legislation in the fields of the environment, public, animal1999R1257 — EN — 28.10.2003 — 001.001 — 13
▼M1
▼M1
and plant health, animal welfare and occupational safety shall contri-
bute to the following objectives:
(a) a more rapid implementation of demanding Community standards
by Member States;
(b) the respect of those standards by farmers;
(c) the use of farm advisory services by farmers, as provided for in
Council Regulation (EC) No 1782/2003 of 29 September 2003
establishing common rules for direct support schemes under thecommonagricultural policy an d support schemes for producers ofcertaincrops (
1), in assessing the performance of farm businesses
and identifying improvements required with regard to the statutorymanagement requirements as set out in that Regulation.
Article 21b
1. Temporary support intended to contribute partly to costs incurred
and income foregone may be granted to farmers who have to apply
demanding standards based on Community legislation and newly intro-duced in national legislation.
For Member States applying Article 16, support shall not be granted
under this Chapter to a farmer to apply standards based on the Commu-nity legislation referred to in Article 16.
2. Support may be granted during a period not exceeding five years
from the date the standard becomes mandatory in accordance with
Community legislation.
To be eligible for support, the standard should impose new obligations
or restrictions on farming practice which have a significant impact ontypical farm operating costs and which concern a significant number offarmers.
For Directives for which the implementation deadline has been
exceeded and which are not yet correctly implemented by the Member
State, support may be granted during a period not exceeding five years
from 25 October 2003.
3. Support shall not be payable where the non-application of a stan-
dard is due to the non-respect by the applicant farmer of a standardalready transposed in national legislation.
Article 21c
1. Support shall be granted annually in the form of a flat rate aid
and on a degressive basis, in equal instalments. Member States shallmodulate the level of payment per standard with regard to the level of
obligations resulting from the application of the standard. Payment
shall be fixed at a level which prevents overcompensation. Costsrelated to investments shall not be taken into account when determiningthe level of annual support.
2. The maximum eligible annual amount, per holding, of support is
set out in the Annex.
Article 21d
1. Support may be granted to farmers to help them meet costs
arising from the use of the farm advisory services which identify and
where necessary, propose improvements relating to the application by
farmers of statutory environmental, public, animal and plant healthand animal welfare standards.
2. Farm advisory services for which support may be granted shall be
inaccordan ce with Chapter III of Title II of Regulation(EC) No 1782/2003 and the provisions adopted in implementation thereof.1999R1257 — EN — 28.10.2003 — 001.001 — 14
(1) OJ L 270, 21.10.2003, p. 1.
▼M1
3. The total amount of support for the use of advisory services as
referred to inparagraph 1, shall be limited to a maximum of 80 % ofthe eligible cost, without exceeding the maximum eligible amount as
set out in the Annex.
CHAPTER VI
AGRI-ENVIRONMENTANDANIMALWELFARE
Article 22
Support for agricultural methods designed to protect the environment,
maintain the countryside (agri-environment) or improve animal welfareshall contribute to achieving the Community's policy objectives
regarding agriculture, the environment and the welfare of farm animals.
Such support shall promote:
(a) ways of using agricultural land which are compatible with the
protection and improvement of the environment, the landscape andits features, natural resources, the soil and genetic diversity,
(b) an environmentally-favourable extensification of farming and
management of low-intensity pasture systems,
(c) the conservation of high nature-value farmed environments which
are under threat,
(d) the upkeep of the landscape and historical features on agricultural
land,
(e) the use of environmental planning in farming practice,
(f) the improvement of animal welfare.
Article 23
1. Support shall be granted to farmers who give agri-environmental
or animal welfare commitments for at least five years. Where neces-
sary, a longer period shall be determined for particular types of
commitments in view of their effects on the environment or animalwelfare.
2. Agri-environmental and animal welfare commitments shall
involve more than the application of usual good farming practiceincluding good animal husbandry practice.
They shall provide for services which are not provided for by other
support measures, such as market support or compensatory allowances.
Article 24
1. Support in respect of an agri-environmental or animal welfare
commitment shall be granted annually and be calculated on the basis
of:
(a) income foregone,
(b) additional costs resulting from the commitment given, and
(c) the need to provide an incentive.
Costs related to investments shall not be taken into account when
calculating the level of annual support. Costs for non-remunerativeinvestments which are necessary to comply with a commitment maybe taken into account in calculating the level of annual support.
2. Maximum amounts per year eligible for Community support are
laid down in the Annex. When support is calculated on an area basis,these amounts shall be based on that area of the holding to which agri-environmental commitments apply.1999R1257 — EN — 28.10.2003 — 001.001 — 15
▼M1
CHAPTER VIa
FOODQUALITY
Article 24a
Support for agricultural productionmethods design ed to improve the
quality of agricultural products and for promotion of those productsshall contribute to the following objectives:
(a) to provide assurances to consumers on the quality of the product or
of the productionprocess used through the participationof farmers
infood quality schemes as defin ed inArticle 24b;
(b) to achieve added value for agricultural primary products and to
enhance market opportunities;
(c) to improve consumer information on the availability and specifica-
tions of such products.
Article 24b
1. Support shall be granted to farmers who participate on a volun-
tary basis in Community or national food quality schemes, which
impose specific productionrequiremen ts onagricultural products listed
in Annex I to the Treaty, except fishery products, and comply withparagraph 2 or 3 inthis Article.
Support shall only cover products intended for human consumption.2. Community quality schemes under the following Regulations and
provisions shall be eligible for support:
(a) Council Regulation (EEC) No 2081/92 of 14 July 1992 on the
protection of geographical indications and designations of originfor agricultural products and foodstuffs(
1),
(b) Council Regulation (EEC) No 2082/92 of 14 July 1992 on certifi-
cates of specific character for agricultural products and
foodstuffs(2),
(c) Council Regulation (EEC) No 2092/91 of 24 June 1991 on organic
production of agricultural products and indications referring theretoonagricultural products an d foodstuffs (
3),
(d) Title VI on quality wine produced in specified regions of Council
Regulation(EC) No 1493/1999 of 17 May 1999 onthe commonorganisation of the market in wine (
4).
3. To be eligible for support, food quality schemes recognised by
the Member States shall comply with the criteria set out inpoin ts (a)to (e):
(a) the specificity of the final product produced under such schemes
shall be derived from detailed obligations on farming methods that
guarantee:
(i) specific characteristics including the production process, or
(ii) a quality of the final product that goes significantly beyond the
commercial commodity standards as regards public, animal orplant health, animal welfare or environmental protection;
(b) the schemes involve binding product specifications and compliance
with those specifications shall be verified by an independent
inspection body;
(c) the schemes shall be opento all producers;1999R1257 — EN — 28.10.2003 — 001.001 — 16
(1) OJ L 208, 24.7.1992, p. 1. Regulationas last amen ded by Regulation(EC)
No 806/2003 (OJ L 122, 16.5.2003, p. 1).
(2) OJ L 208, 27.7.1992, p. 9. Regulationas last amen ded by Regulation(EC)
No 806/2003.
(3) OJ L 198, 22.7.1991, p. 1. Regulationas last amen ded by Regulation(EC)
No 806/2003.
(4) OJ L 179, 14.7.1999, p. 1. Regulationas last amen ded by Regulation(EC)
No 806/2003.
▼M1
(d) the schemes shall be transparent and assure complete traceability of
the products;
(e) the schemes shall respond to current or foreseeable market oppor-
tunities.
4. Schemes whose sole purpose is to provide a higher level of
control of respect of obligatory standards under Community or national
law shall not be eligible for support.
Article 24c
1. Support shall be paid as an annual incentive payment up to the
maximum eligible amount per holding as set out in the Annex. Thelevel of payment amount shall be determined according to the level ofthe fixed costs arising from participation in supported schemes and be
fixed at a level which prevents overcompensation.
2. The durationof such support shall n ot exceed a period of five
years.
Article 24d
1. Support shall be granted to producer groups for activities intended
to inform consumers about and promote agricultural products or food-stuffs designated under Community or national food quality schemes asdescribed inArticle 24b an d selected for support by the Member Stateunder the measure provided for in Articles 24a, 24b and 24c.
2. Support shall cover information, promotion and advertising activ-
ities.
3. The total amount of support shall be limited to a maximum of
70 % of the eligible costs of the action.
CHAPTER VII
IMPROVING PROCESSING AND MARKETING OF AGRICULTURAL
PRODUCTS
Article 25
1. Support for investment shall facilitate the improvement and ratio-
nalisation of processing and marketing of agricultural products andthereby contribute to increasing the competitiveness and added valueof such products.
2. Such support shall contribute to one or more of the following
objectives:
— to guide production in line with foreseeable market trends or encou-
rage the development of new outlets for agricultural products,
— to improve or rationalise marketing channels or processing proce-
dures,
— to improve the presentation and preparation of products or encou-
rage the better use or elimination of by-products or waste,
— to develop and apply new technologies,— to favour innovative investments,
— to improve and monitor quality,
— to improve and monitor health conditions,
— to protect the environment.
Article 26
1. Support shall be granted to those persons ultimately responsible
for financing the investment in enterprises
— for which economic viability can be demonstrated, and1999R1257 — EN — 28.10.2003 — 001.001 — 17
▼B
▼M1
▼B
▼B
— which comply with minimum standards regarding the environment,
hygiene and animal welfare.
Where investments are made in order to comply with newly introduced
minimum standards relating to the environment, hygiene, and animalwelfare, support may be granted in order to comply with the new stan-dards. Insuch cases, a period of grace may be provided to smallprocessing units to meet these minimum standards where time isneeded to solve specific problems encountered in complying with
such standards. The small processing units shall comply with the rele-
vant standards by the end of the investment period.
2. Investment must contribute to improving the situation of the basic
agricultural production sector in question. It must guarantee the produ-cers of such basic products an adequate share in the resulting economic
benefits.
3. Sufficient evidence must be shown that normal market outlets for
the products concerned can be found.
Article 27
1. Investment shall concern the processing and marketing of
products covered by Annex I to the Treaty except fishery products.
2. Investment shall meet selection criteria setting priorities and indi-
cating which types of investment are not eligible for support.
Article 28
1. The following types of investment shall be excluded from
support:
— investment at the retail level,
— investment in the processing or marketing of products from third
countries.
2. The total amount of support, expressed as a percentage of the
volume of eligible investment, is limited to a maximum of:
(a) 50 % inObjective 1 region s;
(b) 40 % inthe other region s.
CHAPTER VIII
FORESTRY
Article 29
1. Support for forestry shall contribute to the maintenance and
development of the economic, ecological and social functions of forestsinrural areas.
2. Such support shall promote inparticular on e or more of the
following objectives:
— sustainable forest management and development of forestry,
— maintenance and improvement of forest resources,— extension of woodland areas.
3. Such support, as provided for inArticles 30 an d 32, shall be
granted only for forests and areas owned by private owners or by theirassociations or by municipalities or their associations. This restrictionshall not apply to the measures provided for in the second indent of
Article 30(1) for investment in forests aimed at significantly improving
their ecological and social value, and for the measures provided for inthe sixth indent of Article 30(1).
4. Such support shall contribute to the fulfilment of the undertakings
given by the Community and the Member States at international level.1999R1257 — EN — 28.10.2003 — 001.001 — 18
▼M1
▼B
▼M1
▼B
▼B
It shall be based on national or subnational forest programmes or
equivalent instruments which should take into account the commit-ments made in the Ministerial Conferences on the Protection of
Forests inEurope.
5. Measures proposed under this Chapter in areas classified as high
or medium forest fire risk withinthe framework of the Commun ityaction on protection of forests against fire, must conform to the forest
protectionplan s established by the Member States for these areas.
Article 30
1. Support for forestry shall concern one or more of the following
measures:
— afforestation of land not eligible under Article 31 provided that
such planting is adapted to local conditions and is compatible with
the environment,
— investment in forests aimed at significantly improving their
economic, ecological or social value,
— investment to improve and rationalise the harvesting, processing
and marketing of forestry products; investment related to the useof wood as a raw material shall be limited to all working operationsprior to industrial processing,
— promotion of new outlets for the use and marketing of forestry
products,
— the establishment of associations of forest holders that are set up in
order to help their members to improve the sustainable and efficientmanagement of their forests,
— restoring forestry production potential damaged by natural disasters
and fire and introducing appropriate prevention actions.
2. The rules laid downinChapters I an d VII, with the exceptionof
the second subparagraph of Article 7, shall apply as appropriate forinvestments.
Article 31
1. Support shall be granted for the afforestation of agricultural land
provided that such planting is adapted to local conditions and iscompatible with the environment.
Such support may include in addition to establishment costs:
— an annual premium per hectare afforested to cover maintenance
costs for a period of up to five years,
— an annual premium per hectare to cover loss of income resulting
from afforestationfor a maximum period of 20 years for farmers
or associations thereof who worked the land before its afforestation
or for any other private law person.
2. Where support is granted for afforestation of agricultural land
owned by public authorities, it shall cover only the cost of establish-
ment. If the afforested land is rented by a private law person, theannual premia referred to in paragraph 1, second subparagraph, maybe granted.
3. Support for the afforestation of agricultural land shall not be
granted:
— for farmers benefiting from early retirement support,
— in respect of the planting of Christmas trees.
Inthe case of fast-growin g species cultivated inthe short term, support
for afforestation shall be granted for establishment costs only.1999R1257 — EN — 28.10.2003 — 001.001 — 19
▼M1
▼B
▼M1
▼B
▼M1
▼B
▼M1
▼B
4. Maximum amounts per year of the annual premium to cover loss
of income eligible for Community support are laid down in the Annex.
Article 32
1. With a view to:
— maintaining and improving the ecological stability of forests where
the protective and ecological role of these forests are of publicinterest and where the costs of maintenance and improvement
measures for these forests exceed the income from forestry,
— maintaining fire-breaks through agricultural measures,
payments for relevant measures shall be granted to the beneficiaries
provided that the protective and ecological values of these forests are
ensured in a sustainable manner and the measures to be carried outare laid down by contract and their cost specified therein.
2. Payments shall be fixed between the minimum and maximum
amounts set out in the Annex, on the basis of the real costs of themeasures carried out, as previously stipulated inthe con tract.
CHAPTER IX
PROMOTING THE ADAPTATION AND DEVELOPMENT OF RURAL
AREAS
Article 33
Support shall be granted for measures, relating to farming activities and
their conversion and to rural activities, which do not fall within thescope of any other measure referred to in this Title.
Such measures shall concern:
— land improvement,
— reparcelling,
— setting up of farm advisory systems as referred to in Chapter III of
Title II of Regulation(EC) No 1782/2003, as well as farm reliefand farm management services,
— marketing of quality agricultural products, including the setting-up
of quality schemes as referred to inArticle 24b(2) an d (3),
— basic services for the rural economy and population,
— renovation and development of villages and protection and conser-
vationof the rural heritage,
— diversificationof agricultural activities an d activities close to agri-
culture to provide multiple activities or alternative incomes,
— agricultural water resources management,— development and improvement of infrastructure connected with the
development of agriculture,
— encouragement for tourist and craft activities,
— protection of the environment in connection with agriculture,
forestry and landscape conservation as well as with the improve-ment of animal welfare,
— restoring agricultural production potential damaged by natural
disasters and introducing appropriate prevention instruments,
— financial engineering,
— management of integrated rural development strategies by local
partnerships.1999R1257 — EN — 28.10.2003 — 001.001 — 20
▼M1
▼B
▼M1
▼B
CHAPTER X
IMPLEMENTINGRULES
Article 34
Detailed rules for the implementation of this Title shall be adopted in
accordance with the procedure laid down in Article 50(2) of Regulation(EC) No 1260/1999.
These rules may inparticular defin e:
— conditions for support for investment in agricultural holdings (Arti-
cles 4 to 7), including the necessary restrictions resulting fromapplicationof Article 6,
— the period and the conditions for the improvement of economic
viability of an agricultural holding and conditions of use of land
released inthe case of early retiremen t (Article 11(2)),
— conditions for the granting and calculation of the compensatory
allowance in less-favoured areas, including in the case of communaluse of agricultural land (Articles 14 and 15) and the compensatory
payments in areas with environmental restrictions (Article 16),
— conditions governing the giving of agri-environmental commitments
(Articles 23 and 24),
— selection criteria for investment aimed at improving the processing
and marketing of agricultural products (Article 27(2)),
— conditions governing forestry measures (Chapter VIII),
— conditions governing meeting standards measures (Chapter Va),
— conditions governing food quality measures (Chapter VIa).
According to the same procedure, the Commission may derogate from
the second indent of Article 28(1) in the outermost regions subject to
the condition that the processed products are destined for the marketof the regioninquestion .
TITLE III
GENERALPRINCIPLES,ADMINISTRATIVEANDFINANCIAL
PROVISIONS
CHAPTER I
GENERALPRINCIPLES
Subchapter I
SupportfromEAGGF
Article 35
1. Community support for early retirement (Articles 10, 11 and 12),
less-favoured areas and areas with environmental restrictions (Articles
13 to 21), meeting standards (Articles 21a to 21d), agri-environmentand animal welfare (Articles 22, 23 and 24), food quality (Articles24a to 24d) and afforestation (Article 31) shall be financed by theEAGGF Guarantee Section throughout the Community.
2. Community support for other rural development measures shall be
financed by the EAGGF:
— Guidance Section in areas covered by Objective 1,
— Guarantee Section in areas not covered by Objective 1.
3. Support for the measures referred to in the sixth, seventh and
ninth indents of Article 33 shall be financed by the EAGGF in areasclassified under Objectives 1 and 2 and areas in transition in so far astheir financing is not provided by the European Regional DevelopmentFund (ERDF).1999R1257 — EN — 28.10.2003 — 001.001 — 21
▼M1
▼B
▼M1
▼B
▼B
Article 36
1. With regard to support for the rural development measures
referred to inArticle 35(2):
— inareas covered by Objective 1, Regulation(EC) No 1260/1999
shall apply as supplemented by specific rules contained in thisRegulation,
— inareas covered by Objective 2, Regulation(EC) No 1260/1999
shall apply as supplemented by specific rules contained in thisRegulation and save as otherwise provided for under this Regula-tion.
2. With regard to support for rural development measures financed
by the EAGGF Guarantee Section, the specific rules of►
C1Regulation(EC) No 1258/1999 (1)◄and the provisions
adopted inimplemen tationthereof shall apply save as otherwise
provided for under this Regulation.
Subchapter II
Compatibilityandconsistency
Article 37
1. Support for rural development shall be granted only for measures
which comply with Community law.
2. Such measures shall be consistent with other Community policies
and measures implemented thereunder.
Inparticular, n o measure which falls withinthe scope of this Regula-
tion shall be eligible for support under other Community supportschemes if it is incompatible with any specific condition laid down inthis Regulation.
3. Consistency shall also be ensured with measures implemented
under other instruments of the common agricultural policy, and inparticular between rural development support measures on the onehand and measures implemented under the common market organisa-
tions and agricultural quality and health measures on the other hand,
as well as between the different rural development support measures.
Accordingly, no support under this Regulation may be granted for:
— measures falling within the scope of support schemes under
common market organisations, with the exceptions, justified by
objective criteria, that may be defined according to Article 50,
— measures to support research projects or measures eligible for
Community funding under Council Decision 90/424/EEC of 26June 1990 on expenditure in the veterinary field (
2).
4. Member States may lay downfurther or more restrictive con di-
tions for granting Community support for rural development providedthat such conditions are consistent with the objectives and requirementslaid downinthis Regulation .
Article 38
1. Payments may not be made in respect of the same measure under
both this Regulation and another Community support scheme.
2. Support for several measures under this Regulation may be
combined only if such measures are consistent and compatible witheach other. If necessary, the level of support shall be adjusted.1999R1257 — EN — 28.10.2003 — 001.001 — 22
(1) See page 103 of this Official Journal.
(2) OJ L 224, 18.8.1990, p. 19. Decisionas last amen ded by Regulation(EC)
No 806/2003.▼M1
▼B
▼B
Article 39
1. Member States shall take all necessary steps to ensure the
compatibility and consistency of rural development support measurespursuant to the provisions laid down in this Chapter.
2. The rural development plans submitted by Member States shall
include an appraisal of the compatibility and the consistency of the
support measures envisaged and an indication of the measures takenin order to ensure compatibility and consistency.
3. Support measures shall, where necessary, be subsequently revised
to ensure compatibility and consistency.
CHAPTER II
PROGRAMMING
Article 40
1. Rural development measures financed by the EAGGF Guidance
Section shall form part of the programming for Objective 1 regionsaccording to Regulation (EC) No 1260/1999.
2. Rural development measures other than those referred to in
Article 35(1) may form part of the programming for Objective 2regions in accordance with Regulation (EC) No 1260/1999.
3. Other rural development measures which do not form part of the
programming in accordance with paragraphs 1 and 2 shall be subject torural development programming in accordance with Articles 41 to 44.
4. With reference to appropriate rural development measures,
Member States may also submit for approval general framework Regu-
lations which form part of the programming in accordance withparagraphs 1 to 3, as far as it is appropriate with a view to maintaininguniform conditions.
Article 41
1. Rural development plans shall be drawn up at the geographical
level deemed to be the most appropriate. They shall be prepared bythe competent authorities designated by the Member State andsubmitted by the Member State to the Commissionafter competen t
authorities and organisations have been consulted at the appropriate
territorial level.
2. Rural development support measures to be applied in one area
shall be integrated, whenever possible, into a single plan. Wherever
several plans need to be established, the relationship between measures
put forward in such plans shall be indicated and their compatibility andconsistency ensured.
Article 42
Rural development plans shall cover a period of seven years from 1
January 2000.
Article 43
1. Rural development plans shall include:
— a quantified description of the current situation showing disparities,
gaps and potential for development, the financial resourcesdeployed and the main results of operations undertaken in theprevious programming period with regard to the evaluation resultsavailable,
— a description of the strategy proposed, its quantified objectives, and
rural development priorities selected, and the geographical areacovered,
— an appraisal showing the expected economic, environmental and
social impact, including employment effects,1999R1257 — EN — 28.10.2003 — 001.001 — 23
▼B
— an indicative overall financial table summarising the national and
Community financial resources provided for and corresponding toeach rural development priority submitted in the context of the
plan and, where the plan covers rural areas in Objective 2, identi-
fying the indicative amounts for rural development measures underArticle 33 inthese areas,
— a description of the measures contemplated for implementing the
plans, and in particular aid schemes, including the points necessary
for assessing the rules of competition,
— where appropriate, information on the needs for any studies,
demonstration projects, training or technical assistance operationsrelating to the preparation, implementation or adaptation of themeasures concerned,
— the designation of competent authorities and bodies responsible,— provisions to ensure the effective and correct implementation of the
plans, including monitoring and evaluation, a definition of quanti-
fied indicators for evaluation, arrangements for controls andsanctions and adequate publicity,
— the results of consultations and designation of associated authorities
and bodies as well as the economic and social partners at the appro-priate levels.
2. Intheir plan s, Member States shall:
— provide for agri-environment measures throughout their territories,
and in accordance with their specific needs,
— ensure the necessary balance is kept between the different support
measures.
Article 44
1. Rural development plans shall be submitted not later than six
months after the entry into force of this Regulation.
2. The Commission shall appraise the proposed plans to determine
whether they are consistent with this Regulation. On the basis of theplans, it shall approve rural development programming documents inaccordance with the procedure referred to in Article 50(2) of Regula-
tion(EC) No 1260/1999 withinsix mon ths after the submissionof the
plans.
CHAPTER III
ADDITIONALMEASURESANDCOMMUNITYINITIATIVES
Article 45
1. Pursuant to Article 21(2) of Regulation (EC) No 1260/1999, the
Commission, following the procedure laid down in Article 50(2) of
that Regulation, may extend the scope of assistance from the EAGGFGuidance Section beyond that provided for in Article 35(2) of thisRegulation and the financing of measures eligible under Council►
C1Regulations (EC) No 1783/1999 (1), (EC) No 1784/1999 (2)
and◄(EC) No 1263/1999 (3) with a view to implementing all the
measures in the rural development Community initiative.
2. The EAGGF Guarantee Section may, on the initiative of the
Commission, finance studies related to rural development program-ming.1999R1257 — EN — 28.10.2003 — 001.001 — 24
(1) OJ L 213, 13.8.1999, p. 1.
(2) OJ L 213, 13.8.1999, p. 5.
(3) OJ L 161, 26.6.1999, p. 54.
▼B
CHAPTER IV
FINANCIALPROVISIONS
Article 46
1. Community support for rural development from the EAGGF
Guarantee Section shall be subject to financial planning and accounting
on an annual basis. The financial planning shall form part of ruraldevelopment programming (Article 40(3)) or of programming relatedto Objective 2.
2. The Commission shall make initial allocations to Member States,
broken down on an annual basis and using objective criteria which takeinto account particular situations and needs, and efforts to be under-taken especially for the environment, job creation and maintenance ofthe landscape.
3. Initial allocations shall be adjusted on the basis of actual expendi-
ture and revised expenditure forecasts submitted by the Member Statestaking into account programme objectives, and be subject to the funds
available and as a rule be consistent with the aid intensity for rural
areas covered by Objective 2.
Article 47
1. The financial provisions laid down in Articles 31, 32 (except for
the fifth subparagraph of paragraph 1 thereof), 34, 38 and 39 of Regu-lation(EC) No 1260/1999 shall n ot apply to support for rural
development measures in relation to Objective 2.
The Commission shall take the necessary action to ensure efficient and
coherent implementation of these measures which shall attain at least
the same standards as those laid down in the provisions referred to in
the first subparagraph, including the principle of a single managementauthority.
2. For measures covered by rural development programming, the
Community shall contribute to financing pursuant to the principleslaid downinArticles 29 an d 30 of Regulation(EC) No 1260/1999.
In this connection:
— the Community contribution shall not exceed 50 % of the total
eligible cost and, as a general rule, shall be equal to at least 25 %of eligible public expenditure in areas not covered by Objective 1and Objective 2,
— for revenue-bearing investment, the rates laid down in Article
29(4)(a)(ii) and (iii) and (b)(ii) and (iii) of Regulation (EC)No 1260/1999 shall apply. Agricultural and forestry holdings andbusinesses involved in the processing and marketing of agriculturaland forestry products are businesses in that respect within the
meaning of Article 29(4)(b)(iii),
— the Community contribution to the programming for measures laid
downinArticles 22 to 24 of this Regulationshall n ot exceed 85 %inareas covered by Objective 1 an d 60 % inthe other areas.
The fifth subparagraph of Article 32(1) of Regulation(EC) No 1260/
1999 shall apply to such payments.
3. Payments of financial assistance from the EAGGF Guarantee
Section may take the form of advances for programme implementationand of payments in respect of expenditure incurred.1999R1257 — EN — 28.10.2003 — 001.001 — 25
▼M1
▼B
▼B
CHAPTER V
MONITORINGANDEVALUATION
Article 48
1. The Commission and the Member States shall ensure effective
monitoring of implementation of rural development programming.
2. Such monitoring shall be carried out by way of jointly agreed
procedures.
Monitoring shall be carried out by reference to specific physical and
financial indicators agreed and established beforehand.
Member States shall submit annual progress reports to the Commission.
3. Where appropriate, monitoring committees shall be established.
Article 49
1. Evaluationof measures covered by rural developmen t program-
ming shall be carried out on the basis of the principles laid down inArticles 40 to 43 of Regulation(EC) No 1260/1999.
2. The EAGGF Guarantee Section may, within the framework of the
financial resources allocated to programmes, participate in the finan-
cing of evaluations relating to rural development in the Member
States. The EAGGF Guarantee Section may also, on the initiative ofthe Commission, finance evaluations at Community level.
CHAPTER VI
IMPLEMENTINGRULES
Article 50
Detailed rules for the applicationof this Title shall be adopted inaccor-
dance with the procedure laid down in Article 50(2) of Regulation (EC)No 1260/1999.
These rules may inparticular defin e the details of:
— the presentation of rural development plans (Articles 41 to 44),
— the revision of rural development programming documents,— financial planning, in particular to ensure budgetary discipline
(Article 46), and participation in financing (Article 47(2)),
— monitoring and evaluation (Articles 48 and 49),— how to ensure consistency between rural development measures and
the support measures introduced by the market organisations(Article 37).
TITLE IV
STATEAID
Article 51
1. Save as otherwise provided inthis Title, Articles 87 to 89 of the
Treaty shall apply to aid granted by Member States for measures to
support rural development.
However, Articles 87 to 89 of the Treaty shall not apply to financial
contributions provided by Member States for measures subject toCommunity support within the scope of Article 36 of the Treaty inaccordance with the provisions of this Regulation.
2. Aid for investment in agricultural holdings which exceeds the
percentages referred to in Article 7 shall be prohibited.
This prohibition does not apply to aid for investments relating to:
— investments undertaken predominantly in the public interest related
to the conversation of traditional landscapes shaped by agriculturaland forestry activities or relocation of farm buildings,1999R1257 — EN — 28.10.2003 — 001.001 — 26
▼B
— the protection and improvement of the environment,
— improvement of the hygiene conditions of livestock enterprises and
the welfare of animals.
3. State aid granted to farmers to compensate for natural handicaps
inless-favoured areas shall be prohibited if it does n ot satisfy the
conditions laid down in Articles 14 and 15.
4. State aid to support farmers who give agri-environmental commit-
ments which fail to satisfy the conditions laid down in Articles 22 to24 shall be prohibited. However, additional aid exceeding maximumamounts fixed according to Article 24(2) may be granted if justified
under paragraph 1 of that Article. In duly justified exceptional cases
derogationmay be permitted inrespect of the min imum durationofthese commitments as laid down in Article 23(1).
5. State aid to support farmers who adapt to demanding standards
based on Community legislation in the fields of the environment,
public, animal and plant health, animal welfare and occupational safetyshall be prohibited if it does not satisfy the conditions provided for inArticles 21a, 21b and 21c. However, additional aid exceeding themaximum amounts fixed in accordance with Article 21c may be
granted to help farmers to comply with national legislation which
exceeds Community standards.
In the absence of Community legislation, state aid to support farmers
who adapt to demanding standards based on national legislation in thefields of the environment, public, animal and plant health, animalwelfare and occupational safety shall be prohibited if it does not satisfy
the relevant conditions provided for in Articles 21a, 21b and 21c. Addi-
tional aid exceeding the maximum amounts fixed in accordance withArticle 21c may be granted if justified under paragraph 1 of thatArticle.
Article 52
Within the scope of Article 36 of the Treaty, State aid intended to
provide additional financing for rural development measures for whichCommunity support is granted shall be notified by Member States andapproved by the Commissioninaccordan ce with the provision s of thisRegulationas part of programmin g referred to inArticle 40. The first
sentence of Article 88(3) of the Treaty shall not apply to aid thus noti-
fied.
TITLE V
TRANSITIONALANDFINALRULES
Article 53
1. Should specific measures be necessary to facilitate the transition
from the system in force to the one established by this Regulation,such measures shall be adopted by the Commissioninaccordan ce
with the procedures laid downinArticle 50(2) of Regulation(EC)
No 1260/1999.
2. Such measures shall inparticular be adopted for the in tegrationof
existing Community support actions, approved by the Commission fora period ending after 1 January 2000 or without any time limit, into therural development support provided for by this Regulation.1999R1257 — EN — 28.10.2003 — 001.001 — 27
▼M1
▼B
▼B
Article 54
1. Article 17 of Council Regulation (EEC) No 1696/71 of 26 July
1971 onthe commonorgan isationof the market inhops(1) shall be
replaced by the following:
‘Article 17
1. The Regulations on the financing of the common agricultural
policy shall apply to the market inthe products referred to in
Article 1(1) from the date of implementation of the arrangements
laid downherein .
2. The aid referred to in Article 8 shall be subject to part finan-
cing by the Community.
3. Member States shall pay the aid referred to inArticle 12 to
the producers between16 October an d 31 December of the
marketing year in respect of which the aid is applied for.
4. The Commissionshall, followin g the procedure laid downin
Article 20, adopt rules for the applicationof this Article’.
2. Article 6 of Council Regulation (EEC) No 404/93 of 13 February
1993 on the common organisation of the market in bananas (2) shall be
replaced by the following text:
‘Article 6
1. For the five years following the date of recognition, the
Member States shall grant recognised producer organisations assis-tance to encourage their establishment and assist with theiradministrative operation.
2. Such aid:
— shall be, for the first, second, third, fourth and fifth years
respectively, 5 %, 5 %, 4 %, 3 % and 2 % of the value ofproduction marketed under the auspices of the producer organi-
sation,
— shall not exceed the actual cost of formation and administrative
operation of the organisation concerned,
— shall be paid in annual instalments for a maximum of seven
years following the date of recognition.
The value of each year's productionshall be calculated onthe basis
of:
— the annual volume actually marketed,
— the average producer prices obtained.
3. Producer organisations deriving from organisations which
already comply to a large extent with the conditions of this Regula-tion shall qualify for aid under this Article only if they are formed
as the result of a merger enabling the objectives referred to in
Article 5 to be achieved more effectively. However, insuch acase, the aid shall be granted only in respect of the cost of forma-tion of the organisation (expenditure incurred in connection withthe preparatory work and the drawing up of the memorandum and
articles of association).
4. The aid referred to inthis Article shall be n otified to the
Commissionina report from the Member States at the close of
each financial year’.
3. Council Regulation (EC) No 2200/96 of 28 October 1996 on the
common organisation of the market in fruit and vegetables (
3) is hereby
amended as follows:
(a) Article 15(6) shall be replaced by the following:1999R1257 — EN — 28.10.2003 — 001.001 — 28
(1) OJ L 175, 4.8.1971, p. 1. Regulationas last amen ded by Regulation(EC)
No 1554/97 (OJ L 208, 2.8.1997, p. 1).
(2) OJ L 47, 25.2.1993, p. 1. Regulationas last amen ded by Regulation(EC)
No 1637/98 (OJ L 210, 28.7.1998, p. 28).
(3) OJ L 297, 21.11.1996, p. 1. Regulationas last amen ded by Regulation(EC)
No 857/1999 (OJ L 108, 27.4.1999, p. 7).
▼B
‘6. In regions of the Community where the degree of organisa-
tionof producers is particularly low, Member States may beauthorised, on a duly substantiated request, to pay producer organi-
sations national financial assistance equal to a maximum of half the
financial contributions of producers. This assistance shall be addi-tional to the operational fund.
For Member States where producer organisations market less than
15 % of the fruit and vegetable production and whose fruit and
vegetable productionrepresen ts at least 15 % of their total agricul-
tural output, the assistance referred to in the first subparagraph maybe partly reimbursed by the Community at the request of theMember State concerned’.
(b) Article 52 shall be replaced by the following:
‘Article 52
1. Expenditure relating to the payment of the Community with-
drawal compensation and to Community financing of the
operational fund, the specific measures referred to in Article 17and Articles 53, 54 and 55 and checks by experts of the MemberStates made available to the Commissioninapplicationof Article40(1) shall be deemed to be intervention to stabilise agricultural
markets within the meaning of Article 1(2)(b) of ►
C1Regulation
(EC) No 1258/1999 (*) ◄.
2. Expenditure relating to the aid granted by the Member States
in accordance with Article 14 and the second subparagraph ofArticle 15(6) shall be deemed to be intervention to stabilise agricul-tural markets within the meaning of Article 1(2)(b) of
►
C1Regulation(EC) No 1258/1999 ◄. It shall be eligible for
part financing by the Community.
3. The Commissionshall, followin g the procedure laid downin
Article 46, adopt rules for the applicationof paragraph 2 of thisArticle.
4. The provisions of Title VI shall apply without prejudice to the
applicationof Coun cil Regulation(EEC) No 4045/89 of 21December 1989 on scrutiny by Member States of transactionsforming part of the system of financing by the Guarantee Sectionof the European Agricultural Guidance and Guarantee Fund and
repealing Directive 77/435/EEC (**).
.
(*) OJ L 160, 26.6.1999, p. 103.
(**) OJ L 388, 30.12.1989, p. 17. Regulationas last amen ded by
Regulation(EC) No 3235/94 (OJ L 338, 28.12.1994, p. 16)’
Article 55
1. The following Regulations are hereby repealed:
— Regulation(EEC) No 4256/88,
— Regulations (EC) No 950/97, (EC) No 951/97, (EC) No 952/97 and
Regulation(EEC) No 867/90,
— Regulations (EEC) No 2078/92, (EEC) No 2079/92, (EEC) No 2080/
92,
— Regulation(EEC) No 1610/89
2. The following provisions are hereby deleted:
— Article 21 of Regulation(EEC) No 3763/91 (
1),
— Article 32 of Regulation(EEC) No 1600/92 (2),
— Article 27 of Regulation(EEC) No 1601/92 (3),
— Article 13 of Regulation(EEC) No 2019/93 (4).1999R1257 — EN — 28.10.2003 — 001.001 — 29
(1) OJ L 356, 24.12.1991, p. 1.
(2) OJ L 173, 27.6.1992, p. 1.
(3) OJ L 173, 27.6.1992, p. 13.
(4) OJ L 184, 27.7.1993, p. 1.
▼B
3. The Regulations repealed and provisions deleted under paragraphs
1 and 2 respectively shall continue to apply to actions approved by theCommission under the Regulations before 1 January 2000.
4. Council and Commission Directives adopting lists of less-
favoured areas or amending such lists in accordance with Article21(2) and (3) of Regulation (EC) No 950/97 shall remain in forceunless further amended in the framework of programmes.
Article 56
This Regulation shall enter into force on the seventh day following its
publicationinthe Official Journal of the European Communities .
It shall apply in relation to Community support as from 1 January
2000.
This Regulation shall be binding in its entirety and directly applicable
inall Member States.1999R1257 — EN — 28.10.2003 — 001.001 — 30
▼M1
ANNEX
TABLEOFAMOUNTS
Article Subject Euro
8(2) Setting-up aid 25000
12(1) Early retirement 15000(*) per transferor and year
150000 total amount per transferor
3 500 per worker and year
35000 total amount per worker
15(3) Minimum compensatory
allowance25(**) per hectare of areas used for
agriculture
Maximum average
compensatory200 per hectare of areas used for
agriculture
Maximum average
compensatory allowance250 per hectare of areas used for
agriculture
16 Maximum payment Initial
maximum payment200 per hectare
Initial maximum payment 500 per hectare
21c Maximum payment 10000 per holding
21d Farm advisory services 1 500 per advisory service
24(2) Annual crops 600 per hectare
Specialised perennial crops 900 per hectare
Other lands uses 450 per hectareLocal breeds indan ger
being lost to farming200(***) per livestock unit
Animal welfare 500 per livestock unit
24c Maximum payment 3 000 per holding
31(4) Maximum annual premium
to cover loss of income
from afforestation
— für Landwirte for
farmers of associations
thereofoder deren
Vereinigungen725 per hectare
— for any other private-
law person185 per hectare
32(2) Minimum payment 40 per hectare
Maximum payment 120 per hectare
(*) Subject to the total maximum per transferor, the maximum annual payments may be increased up to twofold
taking account of the economic structure of holdings in territories and the objective of speeding up the adjust-
ment of the agricultural structures.
(**) This amount may be reduced to take account of the particular geographical situation or economic structure of
holdings in certain territories and in order to avoid overcompensation and in accordance with the secondindent of Article 15(1).
(***) This amount may be increased in exceptional cases taking account of specific requirements of certain breeds,
which should be justified inthe rural developmen ts plan s.1999R1257 — EN — 28.10.2003 — 001.001 — 31