2003R1782 — EN — 01.05.2004 — 001.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COUNCIL REGULATION (EC) No 1782/2003
of 29 September 2003
establishing common rules for direct support schemes under the common agricultural policy and
establishing certain support schemes for farmers and amending Regulations (EEC) No 2019/93,(EC) No 1452/2001, (EC) No 1453/2001, (EC) No 1454/2001, (EC) 1868/94, (EC) No 1251/1999,
(EC) No 1254/1999, (EC) No 1673/2000, (EEC) No 2358/71 and (EC) No 2529/2001
(OJ L 270, 21.10.2003, p. 1)
Amended by:
Official Journal
No page date
►M1 Council Regulation (EC) No 583/2004 of 22 March 2004 L 91 1 30.3.2004
Corrected by:
►C1 Corrigendum, OJ L 94, 31.3.2004, p. 70 (1782/2003)
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COUNCIL REGULATION (EC) No 1782/2003
of 29 September 2003
establishing common rules for direct support schemes under the
common agricultural policy and establishing certain supportschemes for farmers and amending Regulations (EEC) No 2019/93,(EC) No 1452/2001, (EC) No 1453/2001, (EC) No 1454/2001, (EC)
1868/94, (EC) No 1251/1999, (EC) No 1254/1999, (EC) No 1673/
2000, (EEC) No 2358/71 and (EC) No 2529/2001
CONTENTS
TITLE I SCOPE AND DEFINITIONS …
TITLE II GENERAL PROVISIONS …
Chapter 1 Cross compliance …Chapter 2 Modulation and financial discipline …Chapter 3 Farm advisory system …Chapter 4 Integrated administration and control system …
Chapter 5 Other general provisions …
TITLE III SINGLE PAYMENT SCHEME …
Chapter 1 General provisions …Chapter 2 Establishment of the amount …Chapter 3 Payment entitlements …
Section 1 Payment entitlements based on area …Section 2 Payment entitlements subject to special conditions
…
Chapter 4 Land use under the single payment scheme …
Section 1 Use of the land …Section 2 Set-aside entitlements …
Chapter 5 Regional and optional implementation …
Section 1 Regional implementation …Section 2 Partial implementation …Section 3 Optional exclusions …Section 4 Optional transition …
TITLE IV OTHER AID SCHEMES …
Chapter 1 Specific quality premium for durum wheat …Chapter 2 Protein crop premium …Chapter 3 Crop specific payment for rice …Chapter 4 Area payment for nuts …Chapter 5 Aid for energy crops …Chapter 6 Aid for starch potato …Chapter 7 Dairy premium and additional payments …Chapter 8 Specific regional aid for arable crops …
Chapter 9 Seed aid …
Chapter 10 Arable crops area payment …Chapter 11 Sheep and goat premiums …2003R1782 — EN — 01.05.2004 — 001.001 — 2
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Chapter 12 Beef and veal payments …
Chapter 13 Grain legumes aid …
TITLE V TRANSITIONAL AND FINAL RULES …
ANNEX I List of support schemes fulfilling the criteria set out
in Article 1 …
ANNEX II National ceilings referred to in Article 12(2) …ANNEX III Statutory management requirements referred to in
Articles 3 and 4 …
ANNEX IV Good agricultural and environmental condition
referred to in Article 5 …
ANNEX V Compatible support schemes referred to in Article
26 …
ANNEX VI List of direct payments in relation to the single
payment referred to in Article 33 …
ANNEX VII Calculation of the reference amount referred to in
Article 37 …
ANNEX VIII National ceilings referred to in Article 41 …ANNEX IX List of arable crops referred to in Article 66 …ANNEX X Traditional production zones for durum wheat as
referred to in Article 74 …
ANNEX XI List of seed species referred to in Article 99 …
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and
in particular Articles 36, 37 and 299(2) thereof,
Having regard to the proposal from the Commission,
Having regard to the Opinion of the European Parliament (1),
Having regard to the Opinion of the European Economic and Social
Committee (2),
Having regard to the Opinion of the Committee of the Regions (3),
Whereas:
(1) Common conditions should be established for direct payments
under the various income support schemes in the framework of
the common agricultural policy.
(2) The full payment of direct aid should be linked to compliancewith rules relating to agricultural land, agricultural productionand activity. Those rules should serve to incorporate in thecommon market organisations basic standards for the environ-ment, food safety, animal health and welfare and good
agricultural and environmental condition. If those basic standards
are not met, Member States should withdraw direct aid in wholeor in part on the basis of criteria which are proportionate, objec-tive and graduated. Such withdrawal should be without prejudiceto sanctions laid down now or in the future under other provi-sions of Community or national law.2003R1782 — EN — 01.05.2004 — 001.001 — 3
(1) Opinion delivered on 5 June 2003 (not yet published in the Official Journal).
(2) OJ C 208, 3.9.2003, p. 64.
(3) Opinion delivered on 2 July 2003 (not yet published in the Official Journal).
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(3) In order to avoid the abandonment of agricultural land and
ensure that it is maintained in good agricultural and environ-
mental condition, standards should be established which may ormay not have a basis in provisions of the Member States. It istherefore appropriate to establish a Community frameworkwithin which Member States may adopt standards taking accountof the specific characteristics of the areas concerned, including
soil and climatic conditions and existing farming systems (land
use, crop rotation, farming practices) and farm structures.
(4) Since permanent pasture has a positive environmental effect, it isappropriate to adopt measures to encourage the maintenance ofexisting permanent pasture to avoid a massive conversion intoarable land.
(5) In order to achieve a better balance between policy toolsdesigned to promote sustainable agriculture and those designed
to promote rural development, a system of progressive reduction
of direct payments should be introduced on a compulsoryCommunity-wide basis for the years 2005 to 2012. All directpayments, beyond certain amounts, should be reduced by acertain percentage each year. The savings made should be used
to finance measures under the rural development and allocated
between Member States according to objective criteria to bedefined. However, it is appropriate to establish that a certainpercentage of the amounts should remain in the Member Stateswhere they have been generated. Until 2005, Member States maycontinue to apply the current modulation on an optional basis
under Council Regulation (EC) No 1259/1999 of 17 May 1999
establishing common rules for direct support schemes under thecommon agricultural policy (
1).
(6) With a view to ensure that the amounts for the financing of thecommon agricultural policy (subheading 1a) respect the annualceilings set in the financial perspectives, it is appropriate toprovide for a financial mechanism to adjust, where necessary,
the direct payments. An adjustment of direct support should be
fixed when the forecasts indicate that the subheading 1a, with asecurity margin of EUR 300 million, is exceeded in a givenbudget year.
(7) In view of the structure adjustments resulting from the abolitionof rye intervention, it is appropriate to provide for transitional
measures for certain rye production regions financed with part
of the amounts generated by modulation.
(8) In order to help farmers to meet the standards of modern, high-quality agriculture, it is necessary that Member States establish acomprehensive system offering advice to commercial farms. Thefarm advisory system should help farmers to become more awareof material flows and on-farm processes relating to the environ-
ment, food safety, animal health and welfare without in any way
affecting their obligation and responsibility to respect those stan-dards.
(9) In order to facilitate the introduction of the farm advisorysystem, it should be provided for a time-period for MemberStates to set-up the system. Entry into the system should be ona voluntary basis for farmers with a priority for those who
receive more than a certain amount per year in direct payments.
Due to its nature of affording advice to farmers, it is appropriatefor the information obtained in the course of the advisoryactivity to be treated as confidential, except in case of seriousinfringements of Community or national law.
(10) Member States must, in accordance with Article 8 of CouncilRegulation (EC) No 1258/1999 of 17 May 1999 on the financing2003R1782 — EN — 01.05.2004 — 001.001 — 4
(1) OJ L 160, 26.6.1999, p. 113. Regulation as amended by Regulation (EC) No
1244/2001 (OJ L 173, 27.6.2001, p. 1).
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of the common agricultural policy (1), take the measures neces-
sary to satisfy themselves that transactions financed by the‘Guarantee’ Section of the European Agricultural Guidance and
Guarantee Fund (EAGGF) are actually carried out and are
executed correctly, and prevent and deal with irregularities.
(11) In order to improve the effectiveness and usefulness of theadministration and control mechanisms, it is necessary to adaptthe system established by Council Regulation (EEC) No 3508/92 of 27 November 1992 establishing an integrated administra-tion and control system for certain Community aid schemes (
2)
with a view to including the single payment scheme, the support
schemes for durum wheat, protein crops, energy crops, rice,
potato starch, nuts, milk, seed, grain legumes and specificregional aids as well as controls on the application of the ruleson cross compliance, modulation and the farm advisory system.Provision should be made for the possibility of including, at alater stage, other aid schemes.
(12) For the sake of effective control and to prevent the submissionof multiple aid applications to different paying agencies withinone Member State, each Member State should set up a single
system to record the identity of farmers submitting aid applica-
tions subject to the integrated system.
(13) The various components of the integrated system are aimed at a
more effective administration and control. Therefore, in the case
of Community schemes not covered by this Regulation, theMember States should be authorised to avail themselves of thesystem, on condition they do not in any way act contrary to theprovisions concerned.
(14) Given the complexity of the system and the large number of aidapplications to be processed, it is essential to use the appropriatetechnical resources and administration and control methods. As a
result, the integrated system should comprise, in each Member
State, a computerised data base, an identification system foragricultural parcels, aid applications from farmers, a harmonisedcontrol system and, in the single payment scheme, a system forthe identification and recording of payment entitlements.
(15) To enable the data collected to be processed and used for theverification of aid applications, it is necessary to set up high-performance computerised data bases which make it possible inparticular to carry out cross-checks.
(16) The identification of agricultural parcels is a key element in thecorrect application of schemes linked to surface area. Experiencehas shown that the existing methods have certain deficiencies.
Therefore, provision should be made for an identification system
to be set up, where necessary, with the aid of remote sensing.
(17) For the sake of simplification, Member States should be
authorised to make provision for the submission of a single
application for several aid schemes and to replace the annualapplication by a permanent application subject only to annualconfirmation.
(18) Member States should be enabled to use amounts which becomeavailable as a result of payment reductions under modulation forcertain additional measures in the framework of rural develop-ment support provided for under Council Regulation (EC) No
1257/1999 of 17 May 1999 on support for rural development
from the European Agricultural Guidance and Guarantee Fund(EAGGF) (
3).2003R1782 — EN — 01.05.2004 — 001.001 — 5
(1) OJ L 160, 26.6.1999, p. 103.
(2) OJ L 355, 5.12.1992, p. 1. Regulation as last amended by Commission
Regulation (EC) No 495/2001 (OJ L 72, 14.3.2001, p. 6).
(3) OJ L 160, 26.6.1999, p. 80.
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(19) Since the amounts which will become available as a result of
cross compliance are not foreseeable sufficiently far ahead to
be used for additional measures in the framework of rural devel-opment support, those amounts should be credited to the EAGGF‘Guarantee’ Section, except for a certain percentage whichshould be retained by the Member States.
(20) Payments provided for under Community support schemes
should be made by the competent national authorities to benefi-
ciaries in full, subject to any reductions provided for in thisRegulation, and within prescribed periods.
(21) The support schemes under the common agricultural policyprovide for direct income support in particular with a view toensuring a fair standard of living for the agricultural community.
This objective is closely related to the maintenance of rural
areas. In order to avoid misallocations of Community funds, nosupport payments should be made to farmers who have artifi-cially created the conditions required to obtain such payments.
(22) Common support schemes have to be adapted to developments,
if necessary within short time limits. Beneficiaries cannot, there-
fore, rely on support conditions remaining unchanged and shouldbe prepared for a possible review of schemes in the light ofmarket developments.
(23) In view of the significant budgetary implications of directpayment support and in order to better appraise their impact,
Community schemes should be subject to a proper evaluation.
(24) Enhancing the competitiveness of Community agriculture and
promoting food quality and environment standards necessarilyentail a drop in institutional prices for agricultural products andan increase in the costs of production for agricultural holdings inthe Community. To achieve those aims and promote more
market-oriented and sustainable agriculture, it is necessary to
complete the shift from production support to producer supportby introducing a system of decoupled income support for eachfarm. While decoupling will leave the actual amounts paid tofarmers unchanged, it will significantly increase the effectiveness
of the income aid. It is, therefore, appropriate to make the single
farm payment conditional upon cross-compliance with environ-mental, food safety, animal health and welfare, as well as themaintenance of the farm in good agricultural and environmentalcondition.
(25) Such a system should combine a number of existing direct
payments received by a farmer from various schemes in a single
payment, determined on the basis of previous entitlements,within a reference period, adjusted to take into account the fullimplementation of measures introduced in the framework ofAgenda 2000 and of the changes to the amounts of aid madeby this Regulation.
(26) Since the benefits in terms of administrative simplification willincrease if many sectors are included the scheme should, in afirst stage, cover all products included in the arable crops regimeas well as grain legumes, seeds, beef and sheep. The revisedpayments for rice and durum wheat as well as the payment in
the milk sector once the reform is fully implemented, should
also be integrated into the scheme. Payments for starch potatoesand dried fodder should also be included in the scheme, whileseparate payments for the processing industry should be main-tained.
(27) Specific measures should be laid down for hemp, to ensure that
illegal crops cannot be hidden among the crops eligible for the
single payment, thereby adversely affecting the common marketorganisation for hemp. Provision should therefore be made forarea payments to be granted only for areas sown to varieties ofhemp offering certain guarantees with regard to the psychotropicsubstance content. The references to the specific measures2003R1782 — EN — 01.05.2004 — 001.001 — 6
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provided for by Council Regulation (EC) No 1673/2000 of 27
July 2000 on the common organisation of the markets in flaxand hemp grown for fibre (
1) should be adapted accordingly.
(28) In order to leave farmers free to choose what to produce on theirland, including products which are still under coupled support,thus increasing market orientation, the single payment shouldnot be conditional on production of any specific product.However, in order to avoid distortions of competition some
products should be excluded from production on eligible land.
(29) In order to establish the amount to which a farmer should be
entitled under the new scheme, it is appropriate to refer to theamounts granted to him during a reference period. To takeaccount of specific situations, a national reserve should be estab-lished. That reserve may also be used to facilitate the
participation of new farmers in the scheme. The single payment
should be established at farm level.
(30) The overall amount to which a farm is entitled should be splitinto parts (payment entitlements) and linked to a certain numberof eligible hectares to be defined, in order to facilitate transfer of
the premium rights. To avoid speculative transfers leading to the
accumulation of payment entitlements without a correspondingagricultural basis, in granting aid, it is appropriate to providefor a link between entitlements and a certain number of eligiblehectares, as well as the possibility of limiting the transfer of enti-tlements within a region. Specific provisions should be laid
down for aid not directly linked to an area taking into account
the peculiar situation of sheep and goat rearing.
(31) To ensure that the total level of support and entitlements do notexceed current budgetary constraints at Community or nationallevel and, where applicable, at regional level, it is appropriate
to provide for national ceilings calculated as the sum of all funds
granted in each Member State for the payment of aids under therelevant support schemes, during the reference period and takinginto account later adjustments. Proportional reductions should beapplicable if the ceiling is overshot.
(32) In order to maintain the supply control benefits of set-aside,
while reinforcing its environmental benefits under the new
system of support, the set-aside conditions for arable land shouldbe maintained.
(33) In order to allow flexibility to respond to specific situations,Member States should have the option to define a certain
balance between individual payment entitlements and regional
or national averages and between existing payments and thesingle payment. A specific derogation to the prohibition on culti-vating fruits and vegetables including table potatoes should beprovided for avoiding that in case of regionalisation this doesnot lead to a disruption of the production whilst minimizing
any effect on distortion of competition. Moreover, in order to
take into account its agricultural specific conditions, it is appro-priate to provide for the possibility for a Member State to ask fora transitional period to implement the single payment schemewhile continuing to respect the budgetary ceilings fixed for thesingle payment scheme. In case of severe distortions of competi-
tion during the transitional period and in order to ensure the
respect of the Community international obligations, it is appro-priate that the Commission can take the necessary measures tocope with such situations.
(34) In case of optional or transitional implementation, in order to
protect the legitimate expectations of farmers, it is appropriate
to fix a date before which Member States have to take their deci-sion to apply the single payment scheme. Moreover, to ensure2003R1782 — EN — 01.05.2004 — 001.001 — 7
(1) OJ L 193, 29.7.2000, p. 16. Regulation as amended by Commission Regula-
tion (EC) No 651/2002 (OJ L 101, 17.4.2002, p. 3).
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the continuation of the current regimes, certain conditions for
entitlement to aid should be established, leaving to the Commis-sion the powers to lay down the implementing rules.
(35) In order to maintain the role of durum wheat production in tradi-tional production area while strengthening the granting of the aidto durum wheat respecting certain minimum quality require-ments, it is appropriate to reduce, over a transitional period, thecurrent specific supplement for durum wheat in traditional areas
and to abolish the special aid in established areas. Only cultiva-
tion which produces durum wheat suitable for use in themanufacture of semolina and pasta products should be eligiblefor that aid.
(36) In order to strengthen the role of protein-rich crops and to
provide an incentive to increase the production of these crops,
it is appropriate to provide for a supplementary payment forfarmers producing these crops. To ensure a correct applicationof the new scheme, certain conditions for entitlement to aidshould be established. A maximum guaranteed area should be
prescribed and proportional reductions applied if the maximum
guaranteed area is exceeded.
(37) In order to maintain the role of rice production in traditionalproduction areas, it is appropriate to provide for a supplementarypayment for rice producers. To ensure a correct application of
the new scheme, certain conditions for entitlement to aid should
be established. National base areas should be established andreductions applied if the areas are exceeded.
(38) New support arrangements for nuts should be established toavoid the potential disappearance of nut production in traditional
areas and the subsequent negative environmental, rural, social
and economic consequences. To ensure a correct application ofthe new arrangements, certain conditions for entitlement to aidshould be established, including a minimum tree density andplot size. In order to cater for specific needs, Member Statesshould be entitled to provide additional aid.
(39) To avoid budgetary overshoot, a maximum guaranteed areashould be prescribed and proportional reductions applied if themaximum guaranteed area is exceeded, concentrated in MemberStates which overshoot their area. To ensure balanced applica-tion throughout the Community, this area should be allocated in
proportion to areas of nut production in Member States. The
Member States should be responsible for allocating the areaswithin their territory. Areas subject to improvement plans shouldnot be eligible for aid under the new scheme until the plan hasexpired.
(40) In order to capitalise on the success of improvement plans inregrouping supply, Member States may make entitlement toCommunity aid and national aid conditional on membership ofproducer organisations. To avoid disruption, a smooth transitionmust be ensured to the new scheme.
(41) Currently, support for energy crops consists of the possibility togrow industrial crops on set-aside land. Energy crops account forthe largest amount of non-food production on set-aside land.Specific aid for energy crops with the objective of increasingcarbon dioxide substitution should be established. A maximum
guaranteed area should be prescribed and proportional reductions
applied if the maximum guaranteed area is exceeded. Thearrangements should be reviewed after a prescribed period takinginto account the implementation of the Community biofuelsinitiative.
(42) In order to maintain starch production in traditional areas ofproduction and to recognise the role of potato production in theagronomic cycle, it is appropriate to provide for a supplementarypayment for potato starch producers. Moreover, in so far as thepayment system for starch potato producers is to be partiallyincluded in the single payment scheme, Council Regulation2003R1782 — EN — 01.05.2004 — 001.001 — 8
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(EC) No 1868/94 of 27 July 1994 establishing a quota system in
relation to the production of potato starch (1) should be amended.
(43) The inclusion of arable crops, beef and sheep extends the singlepayment scheme to premiums which are paid in the outermost
regions and Aegean islands, in order to achieve further simplifi-
cation and to avoid leaving in place a legal and administrativeframework for a limited number of farmers in those areas.However, in order to maintain the role of certain type of produc-tion in these regions of the Community, it is appropriate toprovide that Member States may decide that they need not
include those payments in the single payment scheme. The
same possibility should apply to the supplementary payments incertain regions of Sweden and Finland as well as to seed aid. Inthis cases, the continuation of the current regimes requires thatcertain conditions for entitlement to aid shall be established,
leaving to the Commission the powers to lay down the imple-
menting rules.
(44) In order to facilitate the transition between the current regimesfor arable crops payments and livestock premiums and the newsingle payment scheme, it is appropriate to provide for someadaptations to the current direct payments in those sectors.
(45) Agricultural activity in the Azores is highly dependent on milkproduction. It thus is advisable to renew and extend the measurestaken in Article 23 of Regulation (EC) No 1453/2001 of 28 June
2001 introducing specific measures for certain agricultural
products for the Azores and Madeira (
2) and to derogate for a
period of six marketing years in total beginning in 1999/2000from certain provisions of the common market organisation formilk and milk products as regard of limitation of production in
order to take account of the level of development of and the
conditions for local production. Over the period of its applica-tion, this measure should enable the sector in the Azores tocontinue being restructured without interfering with the milkmarket and without appreciably affecting the sound working ofthe levy scheme at Portuguese or Community level.
(46) The application of the single farm payment scheme will de facto
imply that the conversion programme of land currently under
arable crops to extensive livestock farming in Portugal laiddown in Regulation (EC) No 1017/94 (
3) becomes without
object. Regulation (EC) No 1017/94 should therefore be repealedby the entry into force of the single payment scheme.
(47) As a result of the aforementioned changes and new provisions,Council Regulations (EEC) No 3508/92, (EC) No 1577/96 of
30 July 1996 introducing a specific measure in respect of certain
grain legumes (
4) and (EC) No 1251/1999 of 17 May 1999 estab-
lishing a support system for producers of certain arable crops (5)
should be repealed. Regulation (EC) No 1259/1999 should alsobe repealed, except some provisions which provide for specifictemporary and optional regimes.2003R1782 — EN — 01.05.2004 — 001.001 — 9
(1) OJ L 197, 30.7.1994, p. 4. Regulation as last amended by Regulation (EC)
No 962/2002 (OJ L 149, 7.6.2002, p. 1).
(2) OJ L 198, 21.7.2001, p. 26.
(3) OJ L 112, 3.5.1994, p. 2. Regulation as last amended by Regulation (EC)
No 2582/2001 (OJ L 345, 29.12.2001, p. 5).
(4) 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).
(5) 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).
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(48) The specific provisions concerning direct payments in Council
Regulations (EEC) No 2358/71 of 26 October 1971 on the
common organisation of the market in seeds (1), No 2019/93 of
19 July 1993 introducing specific measures for the smallerAegean islands concerning certain agricultural products (
2), (EC)
No 1254/1999 of 17 May 1999 on the common organisation ofthe market in beef and veal (
3), (EC) No 1452/2001 of 28 June
2001 introducing specific measures for certain agricultural
products for the French overseas departments (4), (EC) No
1454/2001 of 28 June 2001 introducing specific measures forcertain agricultural products for the Canary Islands (
5) and (EC)
No 2529/2001 of 19 December 2001 on the common organisa-
tion of the market in sheepmeat and goatmeat (6) have
effectively lost their substance and should therefore be deleted.
(49) At the time of entry into force of this regulation, the Communityconsists of 15 Member States. Taking into account the fact that,according to the Treaty of Accession of 2003, the accession of
the new Member States is to take place on 1 May 2004, this
Regulation should be adapted, by the date of accession,according to the procedures provided for by that Treaty, in orderto make it applicable to the new Member States.
(50) The measures necessary for the implementation of this Regula-
tion should be adopted in accordance with Council Decision
1999/468/EC of 28 June 1999 laying down the procedures forthe exercise of implementing powers conferred on the Commis-sion (
7),
HAS ADOPTED THIS REGULATION:
TITLE I
SCOPE AND DEFINITIONS
Article 1
Scope
This Regulation establishes:
—►C1 common rules on direct payments ◄under income support
schemes in the framework of the common agricultural policy whichare financed by the ‘Guarantee’ Section of the European Agricul-tural Guidance and Guarantee Fund ►
C1 (EAGGF) listed in
Annex I, except those provided for under Regulation (EC) No
1257/1999 ◄;
— an income support for farmers (hereinafter referred to as the ‘single
payment scheme’);
— support schemes for farmers producing durum wheat, protein crops,
rice, nuts, energy crops, starch potatoes, milk, seeds, arable crops,sheep meat and goat meat, beef and veal and grain legumes.2003R1782 — EN — 01.05.2004 — 001.001 — 10
(1) OJ L 246, 5.11.1971, p. 1. Regulation as last amended by Regulation (EC)
No 154/2002 (OJ L 25, 29.1.2002, p. 18).
(2) OJ L 184, 27.7.1993, p. 1 (OJ L 68, 12.3.2002, p. 4). Regulation as last
amended by Regulation (EC) No 442/2002.
(3) OJ L 160, 26.6.1999, p. 21. Regulation as last amended by Regulation (EC)
No 806/2003 (OJ L 122, 16.5.2003, p. 1).
(4) OJ L 198, 21.7.2001, p. 11.
(5) OJ L 198, 21.7.2001, p. 45. Regulation as last amended by Commission
Regulation (EC) No 1922/2002 (OJ L 293, 29.10.2002, p. 11).
(6) OJ L 341, 22.12.2001, p. 3.
(7) OJ L 184, 17.7.1999, p. 23.
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Article 2
Definitions
For the purposes of this Regulation, the following definitions shall
apply:
(a) ‘farmer’ means a natural or legal person, or a group of natural or
legal persons, whatever legal status is granted to the group and itsmembers by national law, whose holding is situated withinCommunity territory, as referred to in Article 299 of the Treaty,
and who exercises an agricultural activity,
(b) ‘holding’ means all the production units managed by a farmer situ-
ated within the territory of the same Member State,
(c) ‘agricultural activity’ means the production, rearing or growing of
agricultural products including harvesting, milking, breeding
animals and keeping animals for farming purposes, or maintaining
the land in good agricultural and environmental condition as estab-lished under Article 5,
(d) ‘direct payment’ means a payment granted directly to farmers
under an income support scheme listed in Annex I,
(e) ‘payments in a given calendar year’ or ‘payments in the reference
period’ means the payments granted or to be granted in respect ofthe year/years concerned, including all payments in respect of otherperiods starting in that calendar year/years,
(f) ‘agricultural products’ means the products listed in Annex I of the
Treaty, including cotton, but with the exception of fishery products.
TITLE II
GENERAL PROVISIONS
CHAPTER 1
CROSS COMPLIANCE
Article 3
Main requirements
1. A farmer receiving direct payments shall respect the statutory
management requirements referred to in Annex III, according to thetimetable fixed in that Annex, and the good agricultural and environ-mental condition established under Article 5.
2. The competent national authority shall provide the farmer with
the list of statutory management requirements and good agriculturaland environmental condition to be respected.
Article 4
Statutory management requirements
1. The statutory management requirements referred to in Annex III
shall be established by Community legislation in the following areas:
— public, animal and plant health,
— environment,
— animal welfare.
2. The acts referred to in Annex III shall apply within the frame-
work of this Regulation in the version as amended from time to time
and, in case of Directives, as implemented by the Member States.
Article 5
Good agricultural and environmental condition
1. Member States shall ensure that all agricultural land, especially
land which is no longer used for production purposes, is maintained ingood agricultural and environmental condition. Member States shall2003R1782 — EN — 01.05.2004 — 001.001 — 11
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define, at national or regional level, minimum requirements for good
agricultural and environmental condition on the basis of the frameworkset up in Annex IV, taking into account the specific characteristics of
the areas concerned, including soil and climatic condition, existing
farming systems, land use, crop rotation, farming practices, and farmstructures. This is without prejudice to the standards governing goodagricultural practices as applied in the context of Council Regulation(EC) No 1257/1999 and to agri-environment measures applied above
the reference level of good agricultural practices.
2. Member States shall ensure that land which was under permanent
pasture at the date provided for the area aid applications for 2003 is
maintained under permanent pasture. ►
M1 The new Member States
shall ensure that land which was under permanent pasture on 1 May2004 is maintained under permanent pasture. ◄
However a Member State may, in duly justified circumstances, dero-
gate from the first subparagraph, provided that it takes action toprevent any significant decrease in its total permanent pasture area.
The first subparagraph shall not apply to land under permanent pasture
to be afforested, if such afforestation is compatible with the environ-ment and with the exclusion of plantations of Christmas trees and fast
growing species cultivated in the short term.
Article 6
Reduction or exclusion from payments
1. Where the statutory management requirements or good agricul-
tural and environmental condition are not complied with, as a resultof an action or omission directly attributable to the individual farmer,the total amount of direct payments to be granted in the calendar year
in which the non-compliance occurs, and after application of Articles
10 and 11, shall be reduced or cancelled in accordance with thedetailed rules laid down under Article 7.
2. The reductions or exclusions referred to in paragraph 1 shall only
apply if the non-compliance relates to:
(a) an agricultural activity, or
(b) an agricultural land of the holding, including the parcels on set
aside.
Article 7
Detailed rules for reduction or exclusion
1. Detailed rules for the reductions and exclusions referred to in
Article 6 shall be laid down in accordance with the procedure referredto in Article 144(2). In this context, account shall be taken of theseverity, extent, permanence and repetition of the non-compliancefound as well as of the criteria set out in paragraphs 2, 3 and 4 of thisArticle.
2. In case of negligence, the percentage of reduction shall not
exceed 5 % and, in case of repeated non-compliance, 15 %.
3. In case of intentional non-compliance, the percentage of reduction
shall not in principle be less than 20 % and may go as far as total
exclusion from one or several aid schemes and apply for one or more
calendar years.
4. In any case, the total amount of reductions and exclusions for one
calendar year shall not be more than the total amount referred to inArticle 6(1).
Article 8
Review
By 31 December 2007 at the latest, the Commission shall submit a
report on the application of the system of cross compliance accompa-2003R1782 — EN — 01.05.2004 — 001.001 — 12
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nied, if necessary, by appropriate proposals notably with the view of
amending the list of statutory management requirements set out inAnnex III.
Article 9
Amounts resulting from cross compliance
The amount resulting from the application of this Chapter shall be
credited to the EAGGF ‘Guarantee’ Section. Member State may retain25 % of those amounts.
CHAPTER 2
MODULATION AND FINANCIAL DISCIPLINE
Article 10
Modulation
1. All the amounts of direct payments to be granted in a given
calendar year to a farmer in a given Member State shall be reduced
for each year until 2012 by the following percentages:
— 2005: 3 %,
— 2006: 4 %,
— 2007: 5 %,
— 2008: 5 %,
— 2009: 5 %,
— 2010: 5 %,
— 2011: 5 %,
— 2012: 5 %.
2. The amounts resulting from application of the reductions
provided for in paragraph 1, after deducting the total amounts referredto in Annex II, shall be available as additional Community support formeasures under rural development programming financed under the
EAGGF ‘Guarantee’ Section according to Regulation (EC) No 1257/
1999.
3. The amount corresponding to one percentage point shall be allo-
cated to the Member State where the corresponding amounts have beengenerated. The remaining amounts shall be allocated to the MemberStates concerned in accordance with the procedure referred to inArticle 144(2) on the basis of the following criteria:
— agricultural area,
— agricultural employment,
— gross domestic product (GDP) per capita in purchasing power.
However, any Member State shall receive at least 80 % of the total
amounts which the modulation has generated in that Member State.
4. By way of derogation from the second subparagraph of paragraph
3, if in a Member State the proportion of rye as part of its total cerealproduction exceeded 5 % on average during the period 2000-2002 and
its proportion of the total Community production of rye exceeded 50 %
during the same period, at least 90 % of the amounts which the modu-lation generated in the Member State concerned shall be reallocated tothat Member State, until 2013 included.
In such a case, without prejudice to the possibility provided for by
Article 69, at least 10 % of the amount allocated to the Member Stateconcerned shall be available for measures referred to in paragraph 2 ofthis Article in rye producing regions.
For the purpose of this paragraph, ‘cereals’ mean the cereals referred to
in Annex IX.
5. Paragraph 1 shall not apply to direct payments granted to farmers
in the French overseas departments, in the Azores and Madeira, in theCanary and Aegean islands.2003R1782 — EN — 01.05.2004 — 001.001 — 13
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Article 11
Financial discipline
1. Starting with the budget 2007, with a view to ensuring that the
amounts for the financing of the common agricultural policy currentlyunder subheading 1a (market measures and direct aids) respect theannual ceilings set out in the Decision of the Representatives of the
Governments of the Member States, meeting within the Council on 18
November 2002, concerning the Conclusions of the European Councilmeeting in Brussels on 24 and 25 October 2002, an adjustment of thedirect payments shall be fixed when the forecasts indicate that theamounts foreseen under subheading 1a taking into account a margin
of EUR 300 million below the amounts foreseen and before application
of modulation provided for in Article 10(2), will be exceeded in agiven budget year. This is without prejudice to the financial perspec-tives for 2007-2013.
2. The Council, on a Commission's proposal presented not later than
31 March of the calendar year in respect of which the adjustmentsreferred to in paragraph 1 apply, shall fix these adjustments at latest
by 30 June of the calendar year in respect of which the adjustments
apply.
Article 12
Additional amount of aid
1. An additional amount of aid shall be granted to farmers receiving
direct payments under this Regulation.
The additional amount of aid shall be equal to the amount resulting
from the application of the percentages of reduction for that calendar
year under Article 10 to the first EUR 5 000 or less of direct payments.
2. The total additional amounts of aid which may be granted in a
Member State in a calendar year shall not be higher than the ceilingsset out in Annex II. Where necessary, Member States shall proceed to alinear percentage adjustment of additional amounts of aid in order torespect the ceilings set out in Annex II.
3. The additional amount of aid shall not be subject to the reduc-
tions referred to in Article 10.
4. Starting with the budget 2007, the Commission, in accordance
with the procedure referred to in Article 144(2), shall review the ceil-
ings set out in Annex II in order to take into account structural changesof the holdings.
5. For the new Member States, the ceilings referred to in paragraph
2 shall be fixed by the Commission in accordance with the procedurereferred to in Article 144(2).
Article 12a
Application to new Member States
1. Articles 10 and 12 shall not apply to the new Member States until
the beginning of the calendar year, in respect of which the level ofdirect payments applicable in the new Member States is at least equalto the then applicable level of such payments in the Community asconstituted on 30 April 2004.
2. In the framework of the application of the schedule of increments
provided for in Article 143a to all direct payments granted in the new
Member States, Article 11 shall not apply to the new Member Statesuntil the beginning of the calendar year, in respect of which the levelof direct payments applicable in the new Member States is at leastequal to the then applicable level of such payments in the Communityas constituted on 30 April 2004.2003R1782 — EN — 01.05.2004 — 001.001 — 14
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CHAPTER 3
FARM ADVISORY SYSTEM
Article 13
Farm advisory system
1. By 1 January 2007, Member States shall set up a system of
advising farmers on land and farm management (hereinafter referredto as the ‘farm advisory system’) operated by one or more designatedauthorities or by private bodies.
2. The advisory activity shall cover at least the statutory manage-
ment requirements and the good agricultural and environmentalcondition referred to in Chapter I.
Article 14
Conditions
1. Farmers may participate in the farm advisory system on a volun-
tary basis.
2. Member States shall give priority to the farmers who receive
more that EUR 15 000 of direct payments per year.
Article 15
Obligations of approved private bodies and designated authorities
Without prejudice to national legislation concerning public access to
documents, Member States shall ensure that private bodies and desig-nated authorities referred to in Article 13 do not disclose personal orindividual information and data they obtain in their advisory activityto persons other than the farmer managing the holding concerned,
except any irregularity or infringement found during their activity
which is covered by an obligation laid down in Community or nationallaw to inform a public authority, in particular in case of criminaloffences.
Article 16
Review
By 31 December 2010 at the latest, the Commission shall submit a
report on the application of the farm advisory system, accompanied, if
necessary, by appropriate proposals with a view of rendering it compul-
sory.
CHAPTER 4
INTEGRATED ADMINISTRATION AND CONTROL SYSTEM
Article 17
Scope
Each Member State shall set up an integrated administration and
control system, hereinafter referred to as the ‘integrated system’.
The integrated system shall apply to the support schemes established
under Titles III and IV of this Regulation and under Article 2a ofRegulation (EC) No 1259/1999.
To the extent necessary, it shall also apply to the administration and
control of the rules laid down in Chapters 1, 2 and 3.
Article 18
Elements of the integrated system
1. The integrated system shall comprise the following elements:
(a) a computerised data base,2003R1782 — EN — 01.05.2004 — 001.001 — 15
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(b) an identification system for agricultural parcels,
(c) a system for the identification and registration of payment entitle-
ments as referred to in Article 21,
(d) aid applications,
(e) an integrated control system,
(f) a single system to record the identity of each farmer who submits
an aid application.
2. In case of application of Articles 67, 68, 69, 70 and 71, the inte-
grated system shall comprise a system of identification and registrationof animals set up in accordance with Directive 92/102/EEC (
1) and
Regulation (EC) No 1760/2000 (2).
Article 19
Computerised data base
1. The computerised data base shall record, for each agricultural
holding, the data obtained from aid applications.
This data base shall, in particular, allow direct and immediate consulta-
tion, through the competent authority of the Member State, of the datarelating to the calendar and/or marketing years starting from the year
2000.
2. The Member States may set up decentralised data bases on condi-
tion that these, and the administrative procedures for recording andaccessing data, are designed homogeneously throughout the territoryof the Member State and are compatible with one another in order toallow cross-checks.
Article 20
Identification system for agricultural parcels
The identification system for agricultural parcels shall be established
on the basis of maps or land registry documents or other cartographicreferences. Use shall be made of computerised geographical informa-tion system techniques including preferably aerial or spatial
orthoimagery, with an homogenous standard guaranteeing accuracy at
least equivalent to cartography at a scale of 1:10 000.
Article 21
System for the identification and registration of payment entitle-
ments
1. The system for the identification and registration of payment enti-
tlements shall be set up allowing verification of entitlements and cross-checks with the aid applications and the identification system for agri-cultural parcels.
2. This system shall allow direct and immediate consultation,
through the competent authority of the Member State, of the datarelating to at least the previous three consecutive calendar and/or
marketing years.
Article 22
Aid applications
1. Each year, a farmer shall submit an application for direct
payments subject to the integrated system, indicating, where applicable:
— all agricultural parcels of the holding,
— the number and amount of payment entitlements,2003R1782 — EN — 01.05.2004 — 001.001 — 16
(1) OJ L 355, 15.12.1992, p. 32. Directive as amended by the 1994 Act of
Accession.
(2) OJ L 204, 11.8.2000, p. 1.
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— any other information provided for by this Regulation or by the
Member State concerned.
2. A Member State may decide that the aid application needs to
contain only changes with respect to the aid application submitted theprevious year. A Member State shall distribute pre-printed forms based
on the areas determined in the previous year and supply graphic mate-
rial indicating the location of those areas.
3. A Member State may decide that a single aid application shall
cover several or all support schemes listed in Annex I or other supportschemes.
Article 23
Verification of eligibility conditions
1. Member States shall carry out administrative checks on the aid
applications including a verification of the eligible area and the corre-sponding payment entitlements.
2. Administrative checks shall be supplemented by a system of on-
the-spot checks to verify eligibility for the aid. For this purpose,
Member States shall draw up a sampling plan of agricultural holdings.
Member States may use remote sensing techniques as a means to carry
out on-the-spot checks on agricultural parcels.
3. Each Member State shall designate an authority responsible for
coordinating the checks provided for in this Chapter.
Where the Member State provides for the delegation of some aspects of
the work to be carried out under this Chapter to specialised agencies or
firms, the designated authority shall retain control over, and responsi-
bility for, that work.
Article 24
Reductions and exclusions
1. Without prejudice to reductions and exclusions provided for in
Article 6 of this Regulation, where it is found that the farmer does notcomply with the eligibility conditions relevant to the granting of the aidas provided for in this Regulation or by Article 2a of Regulation (EC)
No 1259/1999, the payment or part of the payment granted or to be
granted for which the conditions of eligibility have been meet shall besubject to reductions and exclusions to be laid down in accordance withthe procedure referred to in Article 144(2) of this Regulation.
2. The percentage of reduction shall be graduated according to the
severity, extent, permanence and repetition of the non-compliancefound and may go as far as total exclusion from one or several aidschemes for one or more calendar years.
Article 25
Controls on cross compliance
1. Member States shall carry out on-the-spot-checks to verify
whether the farmer complies with the obligations referred to in Chapter
1.
2. Member States may make use of their existing administration and
control systems to ensure compliance with the statutory managementrequirements and good agricultural and environmental conditionreferred to in Chapter 1.
These systems, and notably the system for identification and registra-
tion of animals set up in accordance with Directive 92/102/EEC andRegulation (EC) No 1760/2000, shall be compatible, within themeaning of Article 26 of this Regulation, with the integrated system.2003R1782 — EN — 01.05.2004 — 001.001 — 17
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Article 26
Compatibility
For the purpose of applying the support schemes listed in Annex V,
Member States shall ensure that the administration and control proce-dures applied to these schemes are compatible with the integratedsystem in the following respects:
(a) the computerised data base;
(b) the identification systems for agricultural parcels;
(c) administrative checks.
To this end, these systems shall be set up so as to allow, without any
problems or conflicts, a common functioning of, or the exchange ofdata between, them.
Member States may, for the purposes of applying Community or
national support schemes other than those listed in Annex V, incorpo-rate in their administration and control procedures one or more
components of the integrated system.
Article 27
Information and checks
1. The Commission shall be kept regularly informed of the applica-
tion of the integrated system.
It shall organise exchanges of views on this subject with the Member
States.
2. After informing the competent authorities concerned in good
time, authorised representatives appointed by the Commission may
carry out:
— any examination or control relating to the measures taken in order
to establish and to implement the integrated system,
— checks at the specialised agencies and firms referred to in Article
23(3).
Officials of the Member State concerned may take part in such checks.
The aforementioned powers to carry out checks shall not affect theapplication of national law provisions which reserve certain acts forofficials specifically designated by national law. The authorised repre-sentatives appointed by the Commission shall in particular not
participate in home visits to or the formal interrogation of suspects
under the national law of the Member State. They shall, however,have access to the information obtained thereby.
3. Without prejudice to the responsibilities of the Member States for
the implementation and application of the integrated system, theCommission may seek the assistance of specialised bodies or personsin order to facilitate the establishment, monitoring and utilisation ofthe integrated system, in particular with a view to providing the compe-
tent authorities of the Member States with technical advice, should they
request it.
CHAPTER 5
OTHER GENERAL PROVISIONS
Article 28
Payment
1. Save as otherwise provided for in this Regulation, payments
under support schemes listed in Annex I shall be made in full to thebeneficiaries.
2. Payments shall be made once a year within the period from 1
December to 30 June of the following calendar year.2003R1782 — EN — 01.05.2004 — 001.001 — 18
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However, the additional amount of aid provided for in Article 12 shall
be paid by 30 September at the latest of the calendar year following thecalendar year concerned.
3. By way of derogation from paragraph 2 of this Article and in
accordance with the procedure referred to in Article 144(2), theCommission may:
(a) extend the date of payment for the payments provided for in Article
5(1) of Regulation 136/66/EEC of the Council of 22 September
1966 on the establishment of a common organisation of the marketin oils and fats (
1);
(b) provide for advances;
(c) authorise the Member States, subject to the budgetary situation, to
pay prior to 1 December advances in regions where, due to excep-
tional conditions, farmers face severe financial difficulties:
— of up to 50 % of the payments,
or
— of up to 80 % of the payments in case advances have already
been provided for.
Article 29
Restriction of payment
Without prejudice to any specific provisions in individual support
schemes, no payment shall be made in favour of beneficiaries forwhom it is established 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 30
Review
Support schemes listed in Annex I shall be applied without prejudice to
possible review at any moment in the light of market developments and
the budgetary situation.
Article 31
Evaluation
In order to gauge their effectiveness, payments under support schemes
listed in Annex I shall be subject to evaluation designed to appraise
their impact with respect to their objectives and to analyse their effectson the relevant markets.
Article 32
Interventions under Regulation (EC) No 1258/1999
The support schemes listed in Annex I shall be considered as ‘interven-
tion’ as referred to in Article 1(2)(b) and Article 2(2) of Regulation(EC) No 1258/1999.2003R1782 — EN — 01.05.2004 — 001.001 — 19
(1) OJ 172, 30.9.1966, p. 3025/66. Regulation as last amended by Regulation
(EC) No 1513/2001 (OJ L 201, 26.7.2001, p. 4).
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TITLE III
SINGLE PAYMENT SCHEME
CHAPTER 1
GENERAL PROVISIONS
Article 33
Eligibility
1. Farmers shall have access to the single payment scheme if:
(a) they have been granted a payment in the reference period referred
to in Article 38 under at least one of the support schemes referred
to in Annex VI, or
(b) they have received the holding or part of the holding, by way of
actual or anticipated inheritance, by a farmer who met the condi-tions referred to in point (a), or
(c) they have received a payment entitlement from the national reserve
or by transfer.
2. In case the farmer who has been granted a direct payment in the
reference period changes his legal status or denomination in that periodor not later than 31 December of the year preceding the year of appli-cation of the single payment scheme, he shall have access to the single
payment scheme under the same conditions as the farmer originally
managing the holding.
3. In case of mergers during the reference period or not later than 31
December of the year preceding the year of application of the singlepayment scheme, the farmer managing the new holding shall haveaccess to the single payment scheme under the same conditions as thefarmers managing the original holdings.
In case of scissions during the reference period or not later than 31
December of the year preceding the year of application of the single
payment scheme, the farmers managing the holdings shall have access,
pro rata, to the single payment scheme under the same conditions asthe farmer managing the original holding.
Article 34
Application
1. The first year of application of the single payment scheme, the
competent authority of the Member State shall send an applicationform to the farmers referred to in Article 33(1)(a) indicating:
(a) the amount referred to in Chapter 2 (hereinafter referred to as the
‘reference amount’);
(b) the number of hectares referred to in Article 43;
(c) the number and value of payment entitlements as defined in
Chapter 3.
2. Farmers shall apply to the single payment scheme by a date, to be
fixed by Member States, but not later than 15 May.
However, the Commission, in accordance with the procedure referred
to in Article 144(2), may allow the date of 15 May to be postponed incertain zones where exceptional climatic conditions render the normal
dates inapplicable.
3. Except in case of force majeure and exceptional circumstances
within the meaning of Article 40(4), no entitlements shall be allocated
to farmers referred to in Article 33(1)(a) and (b) and to those whoreceive payment entitlements from the national reserve, if they do notapply to the single payment scheme by 15 May of the first year ofapplication of the single payment scheme.
The amounts corresponding to those entitlements not allocated shall
revert to the national reserve referred to in Article 42 and shall be2003R1782 — EN — 01.05.2004 — 001.001 — 20
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available for reallocation by a date to be fixed by the Member State but
not later than 15 August of the first year of application of the singlepayment scheme.
Article 35
Double claims
The area corresponding to the number of eligible hectares as defined in
Article 44(2) in respect of which a single payment application issubmitted may be the subject of an application for any other directpayment as well as for any other aid not covered by this Regulation,save as otherwise provided.
Article 36
Payment
1. Aid under the single payment scheme shall be paid in respect of
payment entitlements as defined in Chapter 3, accompanied by an
equal number of eligible hectares as defined in Article 44(2).
2. Member States may decide to combine payments under the single
payment scheme with payments under any other support scheme.
CHAPTER 2
ESTABLISHMENT OF THE AMOUNT
Article 37
Calculation of the reference amount
1. The reference amount shall be the three-year average of the total
amounts of payments, which a farmer was granted under the supportschemes referred to in Annex VI, calculated and adjusted according toAnnex VII, in each calendar year of the reference period referred to in
Article 38.
2. By way of derogation from paragraph 1, when a farmer
commences an agricultural activity in the reference period, the averageshall be based on the payments he was granted in the calendar year oryears during which he exercised the agricultural activity.
Article 38
Reference period
The reference period shall comprise the calendar years 2000, 2001 and
2002.
Article 39
Application of modulation and cross-compliance laid down under
Regulation (EC) No 1259/1999
In case of application of Articles 3 and 4 of Regulation (EC) No 1259/
1999 during the reference period, the amounts referred to in Annex VIIshall be those that would have been granted before application of thesaid Articles.
Article 40
Hardship cases
1. By way of derogation from Article 37, a farmer whose production
was adversely affected during the reference period by a case of force
majeure or exceptional circumstances occurring before or during that
reference period shall be entitled to request that the reference amountbe calculated on the basis of the calendar year or years in the referenceperiod not affected by the case of force majeure or exceptional circum-stances.2003R1782 — EN — 01.05.2004 — 001.001 — 21
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2. If the whole reference period was affected by the case of force
majeure or exceptional circumstances, the Member State shall calculatethe reference amount on the basis of the 1997 to 1999 period. In this
case, paragraph 1 shall apply mutatis mutandis.
3. A case of force majeure or exceptional circumstances, with rele-
vant evidence to the satisfaction of the competent authority, shall be
notified by the farmer concerned in writing to the authority within a
deadline to be fixed by each Member State.
4. Force majeure or exceptional circumstances shall be recognised
by the competent authority in cases such as, for example:
(a) the death of the farmer;
(b) long-term professional incapacity of the farmer;
(c) a severe natural disaster gravely affecting the holding's agricultural
land;
(d) the accidental destruction of livestock buildings on the holding;
(e) an epizootic affecting part or all of the farmer's livestock.
5. Paragraphs 1, 2 and 3 of this Article shall apply, mutatis
mutandis, to farmers who, during the reference period, were underagri-environmental commitments according to Regulations (EEC) No
2078/92 (
1) and (EC) No 1257/1999.
In the case where the commitments covered both the reference period
and the period referred to in paragraph 2 of this Article, Member States
shall establish, according to objective criteria and in such a way as to
ensure equal treatment between farmers and to avoid market andcompetition distortions, a reference amount in accordance with thedetailed rules to be laid down by the Commission in accordance withthe procedure referred to in Article 144(2).
Article 41
Ceiling
1. For each Member State, the sum of the reference amounts shall
not be higher than the national ceiling referred to in Annex VIII.
2. Where necessary, a Member State shall proceed to a linear
percentage reduction of the reference amounts in order to ensurerespect of its ceiling.
Article 42
National reserve
1. Member States shall, after any possible reduction under Article
41(2), proceed to a linear percentage reduction of the referenceamounts in order to constitute a national reserve. This reduction shallnot be higher than 3 %.
2. The national reserve shall further include the difference between
the ceiling referred to in Annex VIII and the sum of the referenceamounts to be granted to farmers under the single payment scheme,before the reduction referred to in paragraph 1 second sentence.
3. Member States may use the national reserve to grant, in priority,
reference amounts to farmers who commence their agricultural activityafter 31 December 2002, or in 2002 but without receiving any direct
payment in that year, according to objective criteria and in such a
way as to ensure equal treatment between farmers and to avoid marketand competition distortions.
4. Member States shall use the national reserve for the purpose of
establishing, according to objective criteria and in such a way as toensure equal treatment between farmers and to avoid market and2003R1782 — EN — 01.05.2004 — 001.001 — 22
(1) OJ L 215, 30.7.1992, p. 85. Regulation repealed by Regulation (EC) No
1257/1999 (OJ L 160, 26.6.1999, p. 80).
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competition distortions, reference amounts for farmers finding them-
selves in a special situation, to be defined by the Commission inaccordance with the procedure referred to in Article 144(2).
5. Member States may use the national reserve for the purpose of
establishing, according to objective criteria and in such a way as toensure equal treatment between farmers and to avoid market andcompetition distortions, reference amounts for farmers in areas subject
to restructuring and/or development programs relating to one or the
other form of public intervention in order to avoid abandoning of landand/or in order to compensate specific disadvantages for farmers inthose areas.
6. In application of paragraphs 3 to 5 Member States may increase
the unit value, within the limit of the regional average of the value of
entitlements, and/or the number of entitlements allocated to farmers.
7. Member States shall proceed to linear reductions of the entitle-
ments in case their national reserve is not sufficient to cover the cases
referred to in paragraphs 3 and 4.
8. Except in case of transfer by actual or anticipated inheritance and
by way of derogation from Article 46, the entitlements establishedusing the national reserve shall not be transferred for a period of fiveyears starting from their allocation.
By way of derogation from Article 45(1), any entitlement which has
not been used during each year of the five year period shall revertimmediately to the national reserve.
9. By way of derogation from Articles 33 and 43, in case of sale or
lease for six or more years of the holding or part of it or premiumrights in the reference period or not later than 29 September 2003,part of the entitlements to be allocated to the seller or the lessor mayrevert to the national reserve under conditions to be defined by theCommission, in accordance with the procedure referred to in Article
144(2).
CHAPTER 3
PAYMENT ENTITLEMENTS
Section 1
Payment entitlements based on areas
Article 43
Determination of the payment entitlements
1. Without prejudice to Article 48, a farmer shall receive a payment
entitlement per hectare which is calculated by dividing the referenceamount by the three-year average number of all hectares which in thereference period gave right to direct payments listed in Annex VI.
The total number of payment entitlements shall be equal to the above
mentioned average number of hectares.
However, in the case referred to in Article 37(2), the total number of
payment entitlements shall be equal to the average number of hectares
of the same period used for the establishment of the reference amounts
►
C1 and Article 42(8) shall apply to these payment entitlements. ◄
2. The number of hectares referred to in paragraph 1 shall further
include:
(a) in case of potato starch, dried fodder and seed aids listed in Annex
VII, the number of hectares whose production has been granted theaid in the reference period as calculated in points B, D and F ofAnnex VII;
(b) all forage area in the reference period.
3. For the purpose of paragraph 2(b) of this Article, ‘forage area’
shall mean the area of the holding that was available throughout the2003R1782 — EN — 01.05.2004 — 001.001 — 23
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calendar year, in accordance with Article 5 of Commission Regulation
(EC) No 2419/2001 (1), for rearing animals including areas in shared
use and areas which were subject to mixed cultivation. The forage
area shall not include:
— buildings, woods, ponds, paths,
— areas used for other crops eligible for Community aid or for perma-
nent crops or horticultural crops,
— areas qualifying for the support system laid down for the producers
of certain arable crops, used for the aid scheme for dried fodder or
subject to a national or Community set-aside scheme.
4. The payment entitlements per hectare shall not be modified save
as otherwise provided.
Article 44
Use of payment entitlements
1. Any payment entitlement accompanied by an eligible hectare
shall give right to the payment of the amount fixed by the paymententitlement.
2. ‘Eligible hectare’ shall mean any agricultural area of the holding
taken up by arable land and permanent pasture except areas underpermanent crops, forests or used for non agricultural activities.
3. The farmer shall declare the parcels corresponding to the eligible
hectare accompanying any payment entitlement. Except in case offorce majeure or exceptional circumstances, these parcels shall be at
the farmer's disposal for a period of at least 10-months, starting from
a date to be fixed by the Member State, but not earlier than 1September of the calendar year preceding the year of lodging the appli-cation for participation in the single payment scheme.
4. Member States may, in duly justified circumstances, authorise the
farmer to modify his declaration on condition that he respects thenumber of hectares corresponding to his payment entitlements and the
conditions for granting the single payment for the area concerned.
Article 45
Unused payment entitlements
1. Any payment entitlement which has not been used for a period of
3 years shall be allocated to the national reserve.
2. However, unused payment entitlements shall not revert to the
national reserve in case of force majeure and exceptional circumstanceswithin the meaning of Article 40(4).
Article 46
Transfer of payment entitlements
1. Payment entitlements may only be transferred to another farmer
established within the same Member State except in case of transfer
by actual or anticipated inheritance.
However, even in the case of actual or anticipated inheritance, payment
entitlements may only be used in the Member State where the paymententitlements were established.
A Member State may decide that payment entitlements may only be
transferred or used within one and the same region.2003R1782 — EN — 01.05.2004 — 001.001 — 24
(1) Commission Regulation (EC) No 2419/2001 of 11 December 2001 laying
down detailed rules for applying the integrated administration and control
system for certain Community aid schemes established by Council Regula-
tion (EEC) No 3508/92 (OJ L 327, 12.12.2001, p. 11). Regulation as
amended by Commission Regulation (EC) No 2550/2001 (OJ L 341,
22.12.2001, p. 105).
▼B
2. Payment entitlements may be transferred by sale or any other
definitive transfer with or without land. In contrast, lease or similartypes of transactions shall be allowed only if the payment entitlements
transferred are accompanied by the transfer of an equivalent number of
eligible hectares.
Except in case of force majeure or exceptional circumstances as
referred to in Article 40(4), a farmer may transfer his payment entitle-
ments without land only after he has used, within the meaning ofArticle 44, at least 80 % of his payment entitlements during at leastone calendar year or, after he has given up voluntarily to the nationalreserve all the payment entitlements he has not used in the first year of
application of the single payment scheme.
3. In case of sale of payment entitlements, with or without land,
Member States may ►
C1 , acting in compliance with the general prin-
ciples of Community law, ◄ decide that part of the payment
entitlements sold revert to the national reserve or that their unit value
is reduced in favour of the national reserve, according to criteria to befixed by the Commission in accordance with the procedure referred toin Article 144(2).
Section 2
Payment entitlements subject to special conditions
Article 47
Payments giving right to payment entitlements subject to special
conditions
1. By way of derogation from Articles 43 and 44, the following
amounts resulting from payments granted in the reference period shallbe included in the reference amount under the conditions provided for
in Article 48 and point C of Annex VII:
(a) the deseasonalisation premium provided for in Article 5 of Regula-
tion (EC) No 1254/1999;
(b) the slaughter premium provided for in Article 11 of Regulation
(EC) No 1254/1999;
(c) the special premium for male bovine animals and the suckler cow
premium, where the farmer was exempted from the stocking rate
requirement pursuant to Article 12(1) of Regulation (EC) No1254/1999, provided that the farmer did not apply for the extensifi-cation payment provided for in Article 13 of that Regulation;
(d) additional payments provided for in Article 14 of Regulation (EC)
No 1254/1999 where paid in addition to aid provided for under (a),
(b) and (c) of this paragraph;
(e) the aids provided for under the sheep and goats aid scheme:
— in the calendar years 2000 and 2001, in Article 5 of Regulation
(EC) No 2467/98 and in Article 1 of Regulation (EEC) No1323/90 (
1),
— in the calendar year 2002, in Articles 4, 5 and 11(1) and in the
first, second and fourth indent of Article 11(2) of Regulation
(EC) No 2529/2001.
2. Starting from 2007 and by way of derogation from Articles 33, 43
and 44, the amounts resulting from dairy premium and additional
payments, provided for in Articles 95 and 96 and to be granted in
2007 shall be included in the single payment scheme under the condi-tions provided for in Articles 48 to 50.2003R1782 — EN — 01.05.2004 — 001.001 — 25
(1) OJ L 132, 23.5.1990, p. 17. Regulation repealed by Regulation (EC) No
2529/2001 (OJ 341, 22.12.2001, p. 3).
▼B
Article 48
Determination of the payment entitlements subject to special condi-
tions
When farmer was granted payments referred to in Article 47, but had
no hectares as referred to in Article 43 in the reference period, or theentitlement per hectare results in an amount higher than EUR 5 000,the farmer shall have right, respectively, to a payment entitlement:
(a) equal to the reference amount corresponding to the direct payments
he was granted in the three-year average period;
(b) for each EUR 5000 or fraction of the reference amount corre-
sponding to the direct payments he was granted in the three-yearaverage period.
Article 49
Conditions
1. Save as otherwise provided for in this section, the other provi-
sions of this Title shall apply to the payment entitlements subject tospecial conditions.
2. By way of derogation from Articles 36(1) and 44(1), a farmer
who has such payment entitlements for which he did not have hectaresin the reference period, shall be authorised by the Member State to
derogate from the obligation to provide a number of eligible hectares
equivalent to the number of entitlements on the condition he maintainsat least 50 % of the agricultural activity exercised in the referenceperiod expressed in livestock units (LU).
In case of a transfer of the payment entitlements, the transferee may
benefit from this derogation only if all the payment entitlementssubject to the derogation are transferred.
3. The payment entitlements determined according to Article 48
shall not be modified.
Article 50
Dairy premium and additional payments
1. Without prejudice to Article 48 and by way of derogation from
Articles 37 and 43, a farmer shall receive a supplementary amount perentitlement resulting by dividing the amounts to be granted under Arti-cles 95 and 96 by the number of entitlements he owns in 2007 exceptset-aside entitlements.
The unit value of each payment entitlement he owns in 2007 shall be
increased by this supplementary amount.
2. In cases where he does not own any entitlement, Articles 48 and
49 shall apply mutatis mutandis. In this case, for the purpose ofapplying Article 48, the term ‘hectares’ shall mean the eligible hectaresthe farmer owns in 2007.2003R1782 — EN — 01.05.2004 — 001.001 — 26
▼B
CHAPTER 4
LAND USE UNDER THE SINGLE PAYMENT SCHEME
Section 1
Use of the land
Article 51
Agricultural use of the land
Farmers may use the parcels declared according to Article 44(3) for
any agricultural activity except for permanent crops and except for the
production of the products referred to in Article 1(2) of Council Regu-
lation (EC) No 2200/96 of 28 October 1996 on the commonorganisation of the market in fruit and vegetables (
1), in Article 1(2)
of Council Regulation (EC) No 2201/96 of 28 October 1996 on thecommon organisation of the markets in processed fruit and vegetable
products (
2) and potatoes other than those intended for the manufacture
of potato starch for which aid is granted under Article 93 of this Regu-lation.
Article 52
Production of hemp
1. In case of production of hemp falling within CN Code
5302 10 00, the varieties used shall have a tetrahydrocannabinolcontent not exceeding 0,2 % and the production shall be covered by acontract or commitment as referred to in Article 2(1) of Regulation
(EC) No 1673/2000. Member States shall establish a system for veri-
fying the tetrahydrocannabinol content of the crops grown on at least30 % of the areas on hemp grown for fibre for which the contract isconcluded or the commitment made. However, if a Member State intro-duces a system of prior approval for such cultivation, the minimum
shall be 20 %.
2. In accordance with the procedure referred to in Article 144(2), the
granting of payments shall be made subject to the use of certified seeds
of certain varieties and to a declaration of areas on hemp grown for
fibre.
Section 2
Set-aside entitlements
Article 53
Determination of the set-aside entitlements
1. By way of derogation from Articles 37 and 43 of this Regulation,
where in the reference period a farmer was subject to the obligation to
set aside part of the land of his holding pursuant to Article 6(1) of
Regulation (EC) No 1251/1999, the three-year average amount corre-sponding to the compulsory set-aside payment calculated and adjustedaccording to Annex VII and the three-year average number of compul-sory set-aside hectares shall not be included in the determination of theentitlements referred to in Article 43 of this Regulation.
2. In the case referred to in paragraph 1, the farmer shall receive an
entitlement per hectare (hereinafter referred to as ‘set-aside entitle-
ment’) which is calculated by dividing the three-year set-aside average
amount by the three-year average number of hectares set-aside, asreferred to in paragraph 1.2003R1782 — EN — 01.05.2004 — 001.001 — 27
(1) OJ L 297, 21.11.1996, p. 1. Regulation as last amended by Commission
Regulation (EC) No 47/2003 (OJ L 7, 11.1.2003, p. 64).
(2) OJ L 297, 21.11.1996, p. 29. Regulation as last amended by Commission
Regulation (EC) No 453/2002 (OJ L 72, 14.3.2002, p. 9).
▼B
The total number of set-aside entitlements shall be equal to the average
number of compulsory set-aside hectares.
Article 54
Use of set-aside entitlements
1. Any set-aside entitlement accompanied by a hectare eligible for
set-aside entitlement shall give right to the payment of the amountfixed by the set-aside entitlement.
2. By way of derogation from Article 44(2), ‘hectare eligible for set-
aside entitlement’ shall mean any agricultural area of the holding taken
up by arable land, except areas which at the date provided for the area
aid applications for 2003 were under permanent crops, forests or usedfor non agricultural activities or under permanent pasture. ►
M1 For
the new Member States, the reference to the date provided for thearea aid applications for 2003 shall be construed as a reference to 30June 2003. ◄
However, the following areas may be counted as being set aside, as a
result of an application made after 28 June 1995:
— areas set aside pursuant to Articles 22 to 24 of Regulation (EC) No
1257/1999, which are neither put to any agricultural use nor used
for any lucrative purposes other than those accepted for other landset aside under this Regulation, or
— areas afforested pursuant to Article 31 of Regulation (EC) No 1257/
1999.
3. Farmers shall set aside from production the hectares eligible for
set-aside entitlements.
4. Set aside areas shall not be less than 0,1 ha in size and 10 metres
wide. For duly justified environmental reasons, Member States mayaccept areas at least 5 metres wide and 0,05 ha in size.
5. Member States may, on terms to be determined in accordance
with the procedure referred to in Article 144(2), derogate from firstsubparagraph of paragraph 2 of this Article, provided that they take
action to prevent any significant increase in the total agricultural area
eligible to set-aside entitlements.
6. By way of derogation from Articles 36(1) and 44(1), set-aside
entitlements shall be claimed before any other entitlement.
7. The set aside obligation shall continue to apply in respect of the
set-aside entitlements which are transferred.
Article 55
Exemption from set-aside
A farmer shall not be subject to the obligation referred to in Article 54
if:
(a) his entire holding is managed for the totality of its production in
compliance with the obligations laid down in Council Regulation(EEC) No 2092/91 of 24 June 1991 on organic production of agri-
cultural products and indications referring thereto on agricultural
products and foodstuffs (
1);
(b) the land set-aside is used for the provision of materials for the
manufacture within the Community of products not primarily
intended for human or animal consumption, provided that effectivecontrol systems are applied.2003R1782 — EN — 01.05.2004 — 001.001 — 28
(1) OJ L 198, 22.7.1991, p. 1. Regulation as last amended by Commission
Regulation (EC) No 806/2003 (OJ L 122, 16.5.2003, p. 1).
▼B
Article 56
Use of the set aside land
1. The land set aside shall be maintained in good agricultural and
environmental condition as established under Article 5.
Without prejudice to Article 55, it shall not be used for agricultural
purposes and shall not produce any crop for commercial purposes.
2. It may be subject to rotation.3. If the quantity of by-products for feed or food uses likely to be
made available as a result of the cultivation of oilseeds on land set-
aside under Article 55(b), will, on the basis of the forecast quantitiescovered by contracts made with farmers, exceed 1 million tonnesannually expressed in soya bean meal equivalents, in order to limitsuch quantity to 1 million tonnes, the amount of the forecast quantityunder each contract, which may be used of feed or food uses, shall be
reduced.
4. Member States shall be authorised to pay national aid up to 50 %
of the costs associated with establishing multiannual crops intended forbio-mass production on set-aside land.
Article 57
Application of other provisions
Save as otherwise provided for in this section, the other provisions of
this Title shall apply to the set-aside entitlements.
CHAPTER 5
REGIONAL AND OPTIONAL IMPLEMENTATION
Section 1
Regional implementation
Article 58
Regional allocation of the ceiling referred to in Article 41
1. A Member State may decide, by 1 August 2004 at the latest, to
apply the single payment scheme provided for in Chapters 1 to 4 at
regional level under the conditions laid down in this Section.
2. Member States shall define the regions according to objective
criteria.
Member States with less than three million eligible hectares may be
considered as one single region.
3. The Member State shall subdivide the ceiling referred to in
Article 41 between the regions according to objective criteria.
Article 59
Regionalisation of the single payment scheme
1. In duly justified cases and according to objective criteria the
Member State may divide the total amount of the regional ceilingestablished under Article 58 or part of it between all the farmers whoseholdings are located in the region concerned, including those who do
not meet the eligibility criterion referred to in Article 33.
2. In this case of division of the total amount of the regional ceiling,
farmers shall receive entitlements, whose unit value is calculated bydividing the regional ceiling established under Article 58 by thenumber of eligible hectares, within the meaning of Article 44(2), estab-lished at regional level.
3. In case of partial division of the total amount of the regional
ceiling, farmers shall receive entitlements whose unit value is calcu-2003R1782 — EN — 01.05.2004 — 001.001 — 29
▼B
lated by dividing the corresponding part of the regional ceiling estab-
lished under Article 58 by the number of eligible hectares, within themeaning of Article 44(2), established at regional level.
In case the farmer is also entitled to receive entitlements calculated on
the remaining part of the regional ceiling, the regional unit value ofeach of his entitlements, except for set-aside entitlements, shall beincreased by an amount corresponding to the reference amount divided
by the number his entitlements established in accordance with para-
graph 4.
Articles 48 and 49 shall apply mutatis mutandis.
4. The number of entitlements per farmer shall be equal to the
number of hectares he declares in accordance with Article 44(2) thefirst year of application of the single payment scheme, except in caseof force majeure or exceptional circumstances within the meaning ofArticle 40(4).
Article 60
Use of the land
1. Where a Member State makes use of the option provided for in
Article 59, farmers may, by way of derogation from Article 51 and in
accordance with the provisions of this Article, also use the parcels
declared according to Article 44(3) for the production of productsreferred to in Article 1(2) of Regulation (EC) No 2200/96, in Article1(2) of Regulation (EC) No 2201/96 and potatoes other than thoseintended for the manufacture of potato starch for which aid is granted
under Article 93 of this Regulation, except permanent crops.
2. The Member State shall establish the number of hectares that may
be used according to paragraph 1 of this Article by subdividing,according to objective criteria, the average of the number of hectaresthat were used for the production of the products referred to in para-
graph 1 at national level during the three-year period 2000-2002
amongst the regions defined pursuant to Article 58(2). The averagenumber of hectares at national level and the number of hectares atregional level shall be fixed by the Commission in accordance withthe procedure referred to in Article 144(2) on the basis of the data
communicated by the Member State.
3. Within the limit established according to paragraph 2 for the
region concerned, a farmer shall be allowed to make use of the optionreferred to in paragraph 1:
(a) within the limit of the number of hectares that he used for the
production of the products referred to in paragraph 1 in 2003;
(b) in case of application, mutatis mutandis, of Articles 40 and 42(4),
within the limit of a number of hectares to be established accordingto objective criteria and in such a way as to ensure equal treatmentbetween farmers and to avoid market and competition distortions.
4. Within the limit of the number of hectares that remain available
after application of paragraph 3, farmers shall be allowed to producethe products referred to in paragraph 1 on a number of hectares otherthan the number of hectares falling under paragraph 3 within the limitof a number of hectares used for the production of the products referredto in paragraph 1 in 2004 and/or 2005, whereby priority shall be given
to the farmers who produced the products already in 2004 within the
limit of the number of hectares used in 2004.
In case of application of Article 71, 2004 and 2005 shall be replaced
by, respectively, the year previous to the year of application of the
single payment scheme and the year of application itself.
5. In order to establish the individual limits referred to in paragraphs
3 and 4, the Members State shall use the farmer's individual data,where available, or any other evidence at its satisfaction provided bythe farmer.2003R1782 — EN — 01.05.2004 — 001.001 — 30
▼B
6. The number of hectares for which the authorisation has been
established according to paragraphs 3 and 4 of this Article, shall in nocase exceed the number of eligible hectares as defined in Article 44(2)
declared in the first year of application of the single payment scheme.
7. The authorisation shall be used, within the region concerned, with
the corresponding payment entitlement.
8. By at the latest 2007, the Commission shall submit a report to the
Council, accompanied, if necessary, by appropriate proposals, on the
possible consequences, in terms of market and structural developments,of the implementation by Member States of this Article.
Article 61
Grassland
In case of application of Article 59, Member States may also,
according to objective criteria, fix, within the regional ceiling or partof it, different per unit values of entitlements to be allocated to farmers
referred to in Article 59(1), for hectares under grassland at the date
provided for the area aid applications for 2003 and for any othereligible hectare or alternatively for hectares under permanent pastureat the date provided for the area aid applications for 2003 and for anyother eligible hectare.
Article 62
Dairy premium and additional payments
By way of derogation from Article 47(2), Member State may decide
that the amounts resulting from dairy premiums and additionalpayments, provided for in Articles 95 and 96 ►
C1 , shall be included
at national or regional level, in part or in full, in the single paymentscheme ◄ starting from 2005. Entitlements established under this
paragraph shall be modified accordingly.
The reference amount for those payments shall be equal to the amounts
to be granted according to Articles 95 and 96 calculated on the basis of
the individual reference quantity for milk available on the holding on
31 March of the year of inclusion, in part or in full, of those paymentsin the single payment scheme.
Articles 48 to 50 shall apply mutatis mutandis.
Article 63
Conditions for the entitlements established under this section
1. In case of application of Article 59, entitlements established
under this section may only be transferred or used within the sameregion or between regions where the entitlements per hectare are thesame.
2. In case of application of Article 59, by way of derogation from
Article 53, any farmer in the region concerned shall receive set-aside
entitlements.
The number of set-aside entitlements is established by multiplying a
farmer's eligible land within the meaning of Article 54(2) declared in
the first year of application of the single payment scheme with a set-
aside rate.
The set aside rate is calculated by multiplying the basic rate of compul-
sory set-aside of 10 % by the proportion, in the region concerned,between the land for which arable crops area payments referred to inAnnex VI have been granted in the reference period and the eligibleland within the meaning of Article 54(2) in the reference period.
The value of the set-aside entitlements shall be the regional value for
payment entitlements as established according to Article 59(2) or, asthe case may be, Article 59(3) first subparagraph.2003R1782 — EN — 01.05.2004 — 001.001 — 31
▼B
Those farmers shall not receive set-aside entitlements who declare less
than a number of hectares within the meaning of Article 54(2) whichwould be needed to produce a number of tonnes equal to 92 tonnes of
cereals as defined in Annex IX on the basis of the yields determined
according to the regionalisation plan applicable in the region concernedin the year before the year of application of the single payment schemedivided by the proportion referred to in the third subparagraph of para-graph 2 of this Article.
3. By way of derogation from Articles 43(4) and 49(3), Member
States may also decide, by 1 August 2004 at the latest, and
►
C1 acting in compliance with the general principles of Community
law,◄that entitlements established under this section shall be subject
to progressive modifications according to pre-established steps andobjective criteria.
4. Save as otherwise provided for in this Section, the other provi-
sions of this Title shall apply.
Section 2
Partial implementation
Article 64
General provisions
1. A Member State may decide, by 1 August 2004 at the latest, to
apply, at national or regional level, the single payment schemeprovided for in Chapters 1 to 4 under the conditions laid down in thisSection.
2. According to the choice made by each Member State, the
Commission shall fix, in accordance with the procedure referred to in
Article 144(2), a ceiling for each of the direct payments referred to,
respectively, in Articles 66, 67, 68 and 69.
This ceiling shall be equal to the component of each type of direct
payment in the national ceilings referred to in Article 41, multipliedby the percentages of reduction applied by Member States in accor-dance with Articles 66, 67, 68 and 69.
The total amount of the fixed ceilings shall be deducted from the
national ceilings referred to in Article 41 in accordance with the proce-dure referred to in Article 144(2).
3. By at the latest two years after the implementation of the single
payment scheme by all Member States or at the latest by 31 December2009, the Commission shall submit a report to the Council, accompa-nied, if necessary, by appropriate proposals, on the possible
consequences, in terms of market and structural developments, of the
implementation by Member States of the options provided for inSections 2 and 3.
Article 65
Establishment of the entitlements under this section
1. For the entitlements to be allocated to farmers, after any possible
reduction under Article 41, the component of the reference amountwhich results from each of the direct payments referred to, respec-
tively, in Articles 66, 67, 68 and 69 shall be reduced by the
percentage to be fixed by Member States within the limit fixed in Arti-cles 66, 67, 68 and 69.
2. Save as otherwise provided for in this Section, the other provi-
sions of this Title shall apply to the entitlements established on theremaining part of the reference amount.2003R1782 — EN — 01.05.2004 — 001.001 — 32
▼B
Article 66
Arable crops payments
In case of arable crops payments, Member States may:
(a) retain up to 25 % of the component of national ceilings referred to
in Article 41 corresponding to the arable crops area paymentsreferred to in Annex VI, except compulsory set-aside payment.
In this case and within the limit of the ceiling fixed in accordance
with Article 64(2), the Member State concerned shall make, on a
yearly basis, an additional payment to farmers.
The additional payment shall be granted to farmers producing
arable crops listed in Annex IX and, in Member States wheremaize is not a traditional crop, grass silage on a per hectare basis,at a maximum level up to 25 % of the per hectare paymentsreferred to in Annex VI to be granted under the conditions
provided for in Chapter 10 of Title IV.
or, alternatively
(b) retain up to 40 % of the component of national ceilings referred to
in Article 41 corresponding to the durum wheat supplementpayment referred to in Annex VI.
In this case and within the limit of the ceiling fixed in accordance
with Article 64(2), the Member State concerned shall make, on ayearly basis, an additional payment to farmers.
The additional payment shall be granted to farmers producing
durum wheat listed in Annex IX on a per hectare basis, at a
maximum level up to 40 % of per hectare supplement paymentfor durum wheat referred to in Annex VI granted or to be grantedunder conditions provided for in Chapter 10 of Title IV.
Article 67
Sheep and goat payments
Member States may retain up to 50 % of the component of national
ceilings referred to in Article 41 corresponding to the sheep and goatpayments listed in Annex VI.
In this case and within the limit of the ceiling fixed in accordance with
Article 64(2), the Member State concerned shall make, on a yearlybasis, an additional payment to farmers.
The additional payment shall be granted to farmers rearing sheep and
goats, at a maximum level up to 50 % of sheep and goat paymentslisted in Annex VI to be granted under conditions provided for inChapter 11 of Title IV.
Article 68
Beef and veal payments
1. In case of beef and veal payments, Member States may retain up
to 100 % of the component of national ceilings referred to in Article 41corresponding to the slaughtering premium referred to in Annex VI for
calves.
In this case and within the limit of the ceiling fixed in accordance with
Article 64(2), the Member State concerned shall make, on a yearly
basis, an additional payment to farmers.
The additional payment shall be granted on slaughtering of calves at a
maximum level up to 100 % of the slaughtering premium for calves
referred to in Annex VI to be granted under conditions provided for
in Chapter 12 of Title IV.
2. Member States may also:
(a) (i) retain up to 100 % of the component of national ceilings
referred to in Article 41 corresponding to the suckler cowpremium referred to in Annex VI.2003R1782 — EN — 01.05.2004 — 001.001 — 33
▼B
In this case and within the limit of the ceiling fixed in accor-
dance with Article 64(2), the Member State concerned shallmake, on a yearly basis, an additional payment to farmers.
The additional payment shall be granted for maintaining
suckler cows, at a maximum level up to 100 % of sucklercow premium referred to in Annex VI to be granted underconditions provided for in Chapter 12 of Title IV;
and
(ii) retain up to 40 % of the component of national ceilings
referred to in Article 41 corresponding to the slaughterpremium referred to in Annex VI for bovine animals otherthan for calves.
In this case and within the limit of the ceiling fixed in accor-
dance with Article 64(2), the Member State concerned shall
make, on a yearly basis, an additional payment to farmers.
The additional payment shall be granted on slaughtering of
bovine animals other than calves at a maximum level up to40 % of the slaughtering premium referred to in Annex VI for
bovine animals other than for calves to be granted under condi-
tions provided for in Chapter 12 of Title IV;
or alternatively,
(b) (i) retain up to 100 % of the component of national ceilings
referred to in Article 41 corresponding to the slaughterpremium referred to in Annex VI for bovine animals otherthan for calves.
In this case and within the limit of the ceiling fixed in accor-
dance with Article 64(2), the Member State concerned shallmake, on a yearly basis, an additional payment to farmers.
The additional payment shall be granted on slaughtering of
bovine animals other than for calves at a maximum level up
to 100 % of the slaughtering premium referred to in Annex
VI for bovine animals other than for calves to be granted underconditions provided for in Chapter 12 of Title IV;
or, alternatively,
(ii) retain up to 75 % of the component of national ceilings
referred to in Article 41 corresponding to the special male
premium referred to in Annex VI.
In this case and within the limit of the ceiling fixed in accor-
dance with Article 64(2), the Member State concerned shallmake, on a yearly basis, an additional payment to farmers.
The additional payment shall be granted at a maximum level
up to 75 % of the special male premium referred to in Annex
VI to be granted under conditions provided for in Chapter 12of Title IV.
Article 69
Optional implementation for specific types of farming and quality
production
Member States may retain up to 10 % of the component of national
ceilings referred to in Article 41 corresponding to each sector referred
to in Annex VI. In the case of the arable crops, beef and veal andsheep and goat sectors, this retention shall be taken into account forthe purpose of application of the maximum percentages fixed, respec-tively, in Articles 66, 67 and 68.
In this case and within the limit of the ceiling fixed in accordance with
Article 64(2), the Member State concerned shall make, on a yearlybasis, an additional payment to farmers in the sector or sectorsconcerned by the retention.
The additional payment shall be granted for specific types of farming
which are important for the protection or enhancement of the environ-ment or for improving the quality and marketing of agriculturalproducts under conditions to be defined by the Commission in accor-dance with the procedure referred to in Article 144(2).2003R1782 — EN — 01.05.2004 — 001.001 — 34
▼B
Section 3
Optional exclusions
Article 70
Optional exclusion of some direct payments
1. A Member State may decide, by 1 August 2004 at the latest, to
exclude from the single payment scheme:
(a) one or more of the direct payments granted in the reference period
under:
— Article 4(4) of Regulation (EC) No 1251/1999,
— Article 3 of Regulation (EC) No 2358/71.
In this case, Articles 64 and 65 shall apply mutatis mutandis;
(b) all other direct payments listed in Annex VI granted to farmers in
the reference period in the French Overseas Departments, the
Azores and Madeira, the Canary and Aegean Islands and the directpayments granted in the reference period under:
— Article 6 of Regulation (EEC) No 2019/93,
— Article 9 of Regulation (EC) No 1452/2001,
— Articles 13 and 22(2) to (6) of Regulation (EC) No 1453/2001,
— Articles 5 and 6 of Regulation (EC) No 1454/2001.
2. Without prejudice to Article 6(2) of Regulations (EEC) No 2019/
93, Article 9(2) of Regulation (EC) No 1452/2001, Articles 13(2) and22(2) of Regulation (EC) No 1453/2001, and Article 5(2) of Regulation(EC) No 1454/2001, Member States shall grant the direct paymentsreferred to in paragraph 1 of this Article, within the limit of the ceil-ings fixed in accordance with Article 64(2) of this Regulation, under
the conditions established, respectively, in Title IV Chapters 3, 6 and
7 to 13 of this Regulation, Article 6 of Regulation (EEC) No 2019/93,Article 9 of Regulation (EC) No 1452/2001, Articles 13 and 22(2) to(4) of Regulation (EC) No 1453/2001 and Article 5 of Regulation(EC) No 1454/2001.
The total amount of the fixed ceilings shall be deducted from the
national ceilings referred to in Article 41 in accordance with the proce-
dure referred to in Article 144(2).
Section 4
Optional transition
Article 71
Optional transitional period
1. Where specific agricultural conditions so warrant, a Member State
may decide, by 1 August 2004 at the latest, to apply the single payment
scheme after a transitional period which shall expire either on 31
December 2005 or on 31 December 2006.
In the case where the Member State concerned decides to apply the
single payment scheme before the end of the transitional period, it shall
decide by 1 August at the latest of the calendar year preceding thecalendar year in respect of which the single payment scheme willapply.
2. Without prejudice to Article 70(2) of this Regulation, in the tran-
sitional period the Member State concerned shall apply the directpayments referred to in Annex VI under the conditions established,
respectively, in Title IV Chapters 3, 6 and 7 to 13 of this Regulation,
Article 6 of Regulation (EEC) No 2019/93, Article 9 of Regulation(EC) No 1452/2001, Articles 13 and 22(2) to (4) of Regulation (EC)No 1453/2001, and Article 5 of Regulation (EC) No 1454/2001, withinthe limit of budgetary ceilings corresponding to the component of thesedirect payments in the national ceiling referred to in Article 41, fixed2003R1782 — EN — 01.05.2004 — 001.001 — 35
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by the Commission, in accordance with the procedure referred to in
Article 144(2), for each of the direct payments.
In the case of dried fodder payment, Member States shall grant an aid
under conditions to be defined in accordance with the procedurereferred to in Article 144(2), within the aforementioned budgetarylimits.
3. The single payment scheme shall apply on 1 January of the
calendar year following the calendar year of expiry of the transitionalperiod.
In this case, the Member State concerned shall take the decisions
referred to in Articles 58(1), 63(3), 64(1) and 70 by 1 August 2005 oralternatively 2006 according to the deadline decided under paragraph 1of this Article.
4. The Commission in accordance with the procedure referred to in
Article 144(2) shall take the necessary measures in case the applicationof this transitional period causes severe distortion of competition in theCommunity market and in order to ensure the respect of the Commu-
nity international obligations.
CHAPTER 6
IMPLEMENTATION IN THE NEW MEMBER STATES
Article 71a
1. Save as otherwise provided for in this Chapter, the provisions of
this Title shall apply to the new Member States.
Articles 33, 34, 37, 38, 39, 40(1), (2), (3) and (5), 41, 42, 43, 47 to 50,
53 and 58 to 63 shall not apply.
2. Any new Member State applying the single area payment scheme
shall take the decisions referred to in Articles 64(1) and 71(1) by 1August of the year preceding that in respect of which it will apply thesingle payment scheme for the first time.
Article 71b
Application for support
1. Farmers shall apply for support under the single payment scheme
by a date, to be fixed by the new Member States, but not later than 15May.
2. Except in case of force majeure and exceptional circumstances
within the meaning of Article 40(4), no entitlements shall be allocated
to farmers if they do not apply for the single payment scheme by 15May of the first year of application of the single payment scheme.
3. The amounts corresponding to entitlements not allocated shall
revert to the national reserve referred to in Article 71d and shall beavailable for reallocation.
Article 71c
Ceiling
The national ceilings of the new Member States shall be those listed in
Annex VIIIa.
Article 71d
National reserve
1. Each new Member State shall proceed to a linear percentage
reduction of its national ceiling in order to constitute a national reserve.This reduction shall not be greater than 3 %, without prejudice to theapplication of Article 71b(3).2003R1782 — EN — 01.05.2004 — 001.001 — 36
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2. The new Member States shall use the national reserve for the
purpose of allocating, according to objective criteria and in such away as to ensure equal treatment between farmers and to avoid market
and competition distortions, payment entitlements to farmers finding
themselves in a special situation, to be defined by the Commission inaccordance with the procedure referred to in Article 144(2).
3. During the first year of application of the single payment scheme,
the new Member States may use the national reserve for the purpose ofallocating payment entitlements, according to objective criteria and insuch a way as to ensure equal treatment between farmers and to avoid
market and competition distortions, to farmers in specific sectors,
finding themselves in a special situation as a result of the transition tothe single payment scheme. Such payment entitlements shall be distrib-uted according to rules to be defined by the Commission in accordancewith the procedure referred to in Article 144(2).
4. In application of paragraphs 2 and 3, new Member States may
increase the unit value of entitlements within the limit of EUR 5 000,and/or the number of entitlements allocated to farmers.
5. The new Member States shall proceed to linear reductions of the
entitlements where their national reserve is not sufficient to cover thecases referred to in paragraphs 2 and 3.
6. Except in case of transfer by actual or anticipated inheritance and
by way of derogation from Article 46, the entitlements established
using the national reserve shall not be transferred for a period of five
years starting from their allocation.
By way of derogation from Article 45(1), any entitlement which has
not been used during each year of the five-year period shall revertimmediately to the national reserve.
Article 71e
Regional allocation of the ceiling referred to in Article 71c
1. The new Member States shall apply the single payment scheme at
regional level.
2. The new Member States shall define the regions according to
objective criteria.
New Member States with less than three million eligible hectares may
be considered as one single region.
3. Each new Member State shall subdivide its national ceiling
referred to in Article 71c after any reduction according to Article 71dbetween the regions according to objective criteria.
Article 71f
Regionalisation of the single payment scheme
1. All farmers whose holdings are located in a given region shall
receive entitlements, whose unit value is calculated by dividing the
regional ceiling established pursuant to Article 71e by the number of
eligible hectares within the meaning of Article 44(2), established atregional level.
2. The number of entitlements per farmer shall be equal to the
number of hectares he/she declares in accordance with Article 44(2)for the first year of application of the single payment scheme, exceptin case of force majeure or exceptional circumstances within the
meaning of Article 40(4).
3. The payment entitlements per hectare shall not be modified save
as otherwise provided.2003R1782 — EN — 01.05.2004 — 001.001 — 37
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Article 71g
Use of the land
1. Farmers may, by way of derogation from Article 51 and in accor-
dance with the provisions of this Article, also use the parcels declaredaccording to Article 44(3) for the production of products referred to in
Article 1(2) of Regulation (EC) No 2200/96 (
1) and in Article 1(2) of
Regulation (EC) No 2201/96 (2) and potatoes other than those intended
for the manufacture of potato starch for which aid is granted pursuantArticle 93 of this Regulation, except permanent crops.
2. The new Member States shall establish the number of hectares
that may be used according to paragraph 1 by subdividing, accordingto objective criteria, the average of the number of hectares that were
used for the production of the products referred to in paragraph 1 at
national level during the three-year period 2000 to 2002 amongst theregions defined pursuant to Article 71e(2). The average number ofhectares at national level and the number of hectares at regional levelshall be fixed by the Commission in accordance with the procedurereferred to in Article 144(2) on the basis of the data communicated by
the new Member State.
3. Within the limit established according to paragraph 2 for the
region concerned, a farmer shall be allowed to make use of the optionreferred to in paragraph 1:
(a) within the limit of the number of hectares that he/she used for the
production of the products referred to in paragraph 1 in 2003;
(b) by way of derogation from Article 71a(1), second subparagraph, in
case of application, mutatis mutandis , of Articles 40 and 42(4),
within the limit of a number of hectares to be established accordingto objective criteria and in such a way as to ensure equal treatmentbetween farmers and to avoid market and competition distortions.
4. Within the limit of the number of hectares that remain available
after application of paragraph 3, farmers shall be allowed to producethe products referred to in paragraph 1 on a number of hectares other
than the number of hectares falling under paragraph 3 within the limit
of a number of hectares used for the production of the products referredto in paragraph 1 in 2004 and/or 2005, whereby priority shall be givento the farmers who produced the products already in 2004 within thelimit of the number of hectares used in 2004.
In case of application of Article 71 or Article 143b, 2004 and 2005
shall be replaced by, respectively, the year previous to the year of
application of the single payment scheme and the year of application
itself.
5. In order to establish the individual limits referred to in paragraphs
3 and 4, new Members States shall use the farmer's individual data,where available, or any other evidence provided by the farmer to theirsatisfaction.
6. The number of hectares for which the authorisation has been
established according to paragraphs 3 and 4 shall in no case exceed
the number of eligible hectares as defined in Article 44(2) declared in
the first year of application of the single payment scheme.
7. The authorisation shall be used, within the region concerned, with
the corresponding payment entitlement.
8. The report referred to in Article 60 shall also concern implemen-
tation by the new Member States.2003R1782 — EN — 01.05.2004 — 001.001 — 38
(1) OJ L 297, 21.11.1996, p. 1.
(2) OJ L 297, 21.11.1996, p. 29.
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Article 71h
Grassland
The new Member States may also, according to objective criteria, fix,
within the regional ceiling or part of it, different per unit values of enti-tlements to be allocated to farmers referred to in Article 71f(1), forhectares of grassland as identified on 30 June 2003 and for any other
eligible hectare or alternatively for hectares of permanent pasture as
identified on 30 June 2003 and for any other eligible hectare.
Article 71i
Dairy premium and additional payments
Starting from 2007, the amounts resulting from dairy premium and
additional payments provided for in Articles 95 and 96 and to begranted in 2007 shall be included in the single payment scheme.
However, new Member States may decide that the amounts resulting
from dairy premiums and additional payments, provided for in Articles95 and 96, shall be included, in part or in full, in the single paymentscheme starting from 2005. Entitlements established according to thisparagraph shall be modified accordingly.
The amount used for the establishment of entitlements in respect of
those payments shall be equal to the amounts to be granted accordingto Articles 95 and 96, calculated on the basis of the individual refer-ence quantity for milk available on the holding on 31 March of theyear of inclusion, in part or in full, of those payments in the single
payment scheme.
By way of derogation from Article 71a(1), Articles 48, 49 and 50 shall
apply mutatis mutandis .
Article 71j
Set-aside entitlements
1. Farmers shall receive part of their payment entitlements in the
form of set-aside entitlements.
2. The number of set-aside entitlements shall be established by
multiplying the farmer's eligible land within the meaning of Article54(2) declared in the first year of application of the single paymentscheme with the applicable set-aside rate.
The set-aside rate shall be calculated by multiplying the basic rate of
compulsory set-aside of 10 % by the proportion, in the regionconcerned, between the regional base area or areas referred to in thethird paragraph of Article 101 and the eligible land within the meaningof Article 54(2).
3. The value of the set-aside entitlements shall be the regional value
for payment entitlements as established according to Article 71f(1).
4. Paragraphs 1 to 3 shall not apply to farmers who declare less than
a number of hectares within the meaning of Article 54(2) which would
be needed to produce a number of tonnes equal to 92 tonnes of cereals
as defined in Annex IX on the basis of the reference yield referred to inAnnex XIb applicable to the new Member State where the holding islocated, divided by the proportion referred to in the second subpara-graph of paragraph 2.
Article 71k
Conditions for the entitlements
1. By way of derogation from Article 46(1), entitlements established
in accordance with this chapter may only be transferred within the
same region or between regions where the entitlements per hectare arethe same.
2. New Member States may also decide, by 1 August of the year
preceding the first year of application of the single payment scheme2003R1782 — EN — 01.05.2004 — 001.001 — 39
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at the latest, and acting in compliance with the general principle of
Community law, that entitlements established in accordance with thischapter shall be subject to progressive modifications according to pre-
established steps and objective criteria.
Article 71l
Optional implementation
1. Sections 2, 3 and 4 of Chapter 5 shall apply to the new Member
States under the conditions laid down in this Article. However, Section
4 shall not apply to new Member States applying the single areapayment scheme referred to in Article 143b.
2. Any reference in Sections 2 and 3 of Chapter 5 to Article 41, in
particular with regard to the national ceiling(s), shall be construed as a
reference to Article 71c.
3. The report referred to in Article 64(3) shall include the options
laid down in this chapter.
TITLE IV
OTHER AID SCHEMES
CHAPTER 1
SPECIFIC QUALITY PREMIUM FOR DURUM WHEAT
Article 72
Scope of application
Aid shall be granted to farmers producing durum wheat falling within
CN code 1001 10 00, under the conditions laid down in this Chapter.
Article 73
Amount and eligibility
1. The aid shall be EUR 40 per hectare.
2. Granting of payments shall be subject to the use of certain quan-
tities of certified seeds of varieties recognised, in the production zone,as being of high quality for the production of semolina or pasta.
Article 74
Areas
1. The aid shall be granted for national base areas in the traditional
production zones listed in Annex X.
The base area shall be as follows:
Greece 617 000 ha
Spain 594 000 haFrance 208 000 haItaly 1 646 000 haCyprus 6 183 haHungary 2 500 haAustria 7 000 haPortugal 118 000 ha.2003R1782 — EN — 01.05.2004 — 001.001 — 40
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2. A Member State may subdivide its base area into sub-base areas
in accordance with objective criteria.
Article 75
Overrun of the area
1. Where the area for which aid is claimed exceeds the base area,
the area per farmer for which aid is claimed shall be reduced proportio-nately in that year.
2. When a Member State subdivides its base area in sub-base areas,
the reduction provided for in the paragraph 1 shall apply only to the
farmers in sub-base areas where their limit have been exceeded. Thisreduction shall be made when, in the Member State concerned, theareas in sub-base areas, which have not reached their limits, havebeen redistributed to sub-base areas in which those limits have been
exceeded.
CHAPTER 2
PROTEIN CROP PREMIUM
Article 76
Scope
An aid shall be granted to farmers producing protein crops under the
conditions laid down in this Chapter.
Protein crops shall include:
— peas falling within CN code 0713 10,
— field beans falling within CN code 0713 50,— sweet lupins falling within CN code ex 1209 29 50.
Article 77
Amount and eligibility
The aid shall be EUR 55,57 per hectare of protein crops harvested after
the stage of lactic ripeness.
However, crops grown on areas which are fully sown and which are
cultivated in accordance with local standards, but which do not attain
the stage of lactic ripeness as a result of exceptional weather conditions
recognised by the Member State concerned, shall remain eligible foraid provided that the areas in question are not used for any otherpurpose up to this growing stage.
Article 78
Area
1. A maximum guaranteed area of 1 600 000 ha for which the aid
may be granted is hereby established.
2. Where the area for which aid is claimed exceeds the maximum
guaranteed area, the area per farmer for which aid is claimed shall bereduced proportionately in that year in accordance with the procedurereferred to in Article 144(2).
CHAPTER 3
CROP SPECIFIC PAYMENT FOR RICE
Article 79
Scope
Aid shall be granted to farmers producing rice, falling within CN code
1006 10 under the conditions laid down in this Chapter.2003R1782 — EN — 01.05.2004 — 001.001 — 41
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Article 80
Amount and eligibility
1. The aid shall be granted per hectare of land sown under rice and
where the crop is maintained until at least the beginning of flowering
under normal growth conditions.
However, crops grown on areas which are fully sown and which are
cultivated in accordance with local standards, but which do not attainthe stage of flowering as a result of exceptional weather conditions
recognised by the Member State concerned, shall remain eligible for
aid provided that the areas in question are not used for any otherpurpose up to this growing stage.
2. The aid shall be as follows, according to the yields in the
Member States concerned:
Marketing year 2004/
05 and in case of
application of Article
71
(EUR/ha)Marketing year 2005/
06 and onward
(EUR/ha)
Greece 1 323,96 561,00
Spain 1 123,95 476,25
France
— metropolitan territory 971,73 411,75
— French Guiana 1 329,27 563,25
Italy 1 069,08 453,00
Hungary 548,70 232,50
Portugal 1 070,85 453,75.
Article 81
Areas
A national base area for each producing Member State is hereby estab-
lished. However, for France two base areas are established. The base
areas shall be as follows:
Greece 20 333 ha
Spain 104 973 haFrance:— metropolitan territory 19 050 ha— French Guiana 4 190 haItaly 219 588 haHungary 3 222 haPortugal 24 667 ha.
A Member State may subdivide its base area or areas into sub-base
areas in accordance with objective criteria.
Article 82
Overrun of the areas
1. Where in a Member State the area given over to rice in a given
year exceeds the base area indicated in Article 81, the area per farmerfor which aid is claimed shall be reduced proportionately in that year.2003R1782 — EN — 01.05.2004 — 001.001 — 42
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2. When a Member State subdivides its base area or areas in sub-
base areas, the reduction provided for in paragraph 1 shall apply onlyto the farmers in sub-base areas where their limit have been exceeded.
This reduction shall be made when, in the Member State concerned,
the areas in sub-base areas, which have not reached their limits, havebeen redistributed to sub-base areas in which those limits have beenexceeded.
CHAPTER 4
AREA PAYMENT FOR NUTS
Article 83
Community aid
1. A Community aid shall be granted to farmers producing nuts
under the conditions laid down in this Chapter.
Nuts shall include:
— almonds falling within CN codes 0802 11 and 0802 12,
— hazelnuts or filberts falling within CN codes 0802 21 and 0802 22,
— walnuts falling within CN codes 0802 31 and 0802 32,
— pistachios falling within CN codes 0802 50,
— locust beans falling within CN codes 1212 10 10.
2. Member States may differentiate the aid in function of the
products or by increasing or decreasing the national guaranteed areas(hereinafter referred to as the ‘NGA’) established in Article 84(3).However, in each Member State, the total amount of aid granted in agiven year shall not be higher than the ceiling referred to in Article
84(1).
Article 84
Areas
1. A Member State shall grant the Community aid within the limit
of a ceiling calculated by multiplying the number of hectares of its
NGA as fixed in paragraph 3 by the average amount of EUR 120,75.
2. A maximum guaranteed area of 812 400 ha is hereby established.
3. The maximum guaranteed area referred to in paragraph 2 shall be
divided into the following NGAs:
National guaranteed areas (NGA)
Belgium 100 ha
Germany 1 500 haGreece 41 100 haSpain 568 200 haFrance 17 300 haItaly 130 100 haCyprus 5 100 haLuxembourg 100 haHungary 2 900 haNetherlands 100 haAustria 100 haPoland 1 000 ha2003R1782 — EN — 01.05.2004 — 001.001 — 43
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Portugal 41 300 ha
Slovenia 300 haSlovakia 3 100 haUnited Kingdom 100 ha.
4. A Member State may subdivide its NGA into subareas in accor-
dance with objective criteria, in particular at regional level or inrelation to the production.
Article 85
Overrun of the sub-base areas
When a Member State subdivides its NGA in sub-base areas and one or
more sub-base areas are exceeded, the area per farmer for whichCommunity aid is claimed shall be reduced proportionately in thatyear for the farmers in the sub-base areas where their limit have beenexceeded. This reduction shall be made when, in the Member State
concerned, the areas in sub-base areas, which have not reached their
limits, have been redistributed to sub-base areas in which those limitshave been exceeded.
Article 86
Conditions for eligibility
1. Payment of the Community aid shall be conditional on, in parti-
cular, minimum plot size and tree density.
2. Areas in improvement plans within the meaning of Article 14(b)
of Regulation (EEC) No 1035/72 of the Council of 18 May 1972 on
the common organisation of the market in fruit and vegetables (
1)
become eligible for aid under this scheme on 1 January of the yearfollowing the year in which the improvement plan expired.
3. Member States may make the granting of Community aid condi-
tional on farmers being members of a producer organisation recognised
under Articles 11 or 14 of Regulation (EC) No 2200/96.
4. If the provision of paragraph 3 is applied, Member States may
decide that the payment of the aid referred to in paragraph 1 is madeto a producer organisation on the behalf of its members. The amount ofaid received by the producer organisation shall be paid to its members.However, Member States may authorise a producer organisation, as
compensation for the services provided to its members, to operate a
deduction on the amount of Community aid up to a maximum of 2 %.
Article 87
National aid
1. Member States may grant national aid, in addition to the Commu-
nity aid, up to a maximum of EUR 120,75 per hectare per year.
2. The national aid may be paid only for areas receiving Community
aid.
3. Member States may make the granting of national aid conditional
on farmers being members of a producer organisation recognised underArticles 11 or 14 of Regulation (EC) No 2200/96.2003R1782 — EN — 01.05.2004 — 001.001 — 44
(1) OJ L 118, 20.5.1972, p. 1. Regulation as last amended by Commission
Regulation (EC) No 1363/95 (OJ L 132, 16.6.1995, p. 8).▼B
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CHAPTER 5
AID FOR ENERGY CROPS
Article 88
Aid
An aid of EUR 45 per hectare per year shall be granted for areas sown
under energy crops used under the conditions laid down in thisChapter.
Energy crops shall mean crops supplied essentially for the production
of the following energy products:
— products considered biofuels listed in Article 2, point 2 of Directive
2003/30/EC of the European Parliament and of the Council of 8May 2003 on the promotion of the use of biofuels or other renew-able fuels for transport (
1),
— electric and thermal energy produced from biomass.
Article 89
Areas
1. A maximum guaranteed area of 1 500 000 ha for which the aid
may be granted is hereby established.
2. Where the area for which aid is claimed exceeds the maximum
guaranteed area, the area per farmer for which aid is claimed shall bereduced proportionately in that year in accordance with the procedurereferred to in Article 144(2).
Article 90
Conditions for eligibility
The aid shall be granted only in respect of areas whose production is
covered by a contract between the farmer and the processing industry,
except in case of processing undertaken by the farmer himself/herselfon the holding.
Areas which have been subject to an application for energy crops
scheme may not be counted as being set aside for the purposes of theset-aside requirement indicated in Article 6(1) of Regulation (EC) No1251/1999 and in Articles 54(2), 63(2), 71j and 107(1) of this Regula-tion.
Article 91
Review of the list of energy crops
Products may be added or removed to Article 88 in accordance with
the procedure referred to in Article 144(2).
Article 92
Review of energy crops scheme
By 31 December 2006, the Commission shall submit a report to the
Council on the implementation of the scheme, accompanied, whereappropriate, by proposals taking into account the implementation ofthe EU biofuels initiative.2003R1782 — EN — 01.05.2004 — 001.001 — 45
(1) OJ L 123, 17.5.2003, p. 42.▼M1
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CHAPTER 6
AID FOR STARCH POTATO
Article 93
Aid
Aid shall be established for farmers producing potatoes intended for the
manufacture of potato starch. The amount of the payment applies to thequantity of potatoes needed for making one tonne of starch. It shall be:
— EUR 110,54 for the marketing year 2004/2005 and in case of appli-
cation of Article 71,
— EUR 66,32 from the marketing year 2005/2006 onwards.
It shall be adjusted according to the starch content of the potatoes.
Article 94
Conditions
The aid shall be paid only in respect of the quantity of potatoes
covered by a cultivation contract between the potato producer and thestarch manufacturer within the limit of the quota allocated to suchundertaking, as referred to in Article 2(2) or (4) of Regulation (EC)No 1868/94.
CHAPTER 7
DAIRY PREMIUM AND ADDITIONAL PAYMENT
Article 95
Dairy premium
1. From 2004 to 2007, milk producers shall qualify for a dairy
premium. It shall be granted per calendar year, per holding and per
tonne of individual reference quantity eligible for premium and avail-
able on the holding.
2. Without prejudice to paragraph 3 and to reductions resulting from
the application of paragraph 4, the individual reference quantity formilk available on the holding on 31 March of the calendar yearconcerned, expressed in tonnes, shall be multiplied by:
— EUR 8,15/t for the calendar year 2004,
— EUR 16,31/t for the calendar year 2005,
— EUR 24,49/t for the calendar years 2006 and 2007, and
in case of application of Article 70, for the following calendar years.3. Individual reference quantities which have been the subject of
temporary transfers in accordance with Article 6 of Council Regulation
(EEC) No 3950/92 of 28 December 1992 establishing an additional
levy in the milk and milk products sector (
1) or Article 16 of Council
Regulation (EC) No 1788/2003 of 29 September 2003 establishing alevy in the milk and milk products sector (
2) on 31 March of the
calendar year concerned shall be deemed to be available on the holding
of the transferee for that calendar year.
4. For the purpose of applying paragraph 2, where, on 31 March of a
calendar year, the sum of all individual reference quantities in aMember State exceeds the sum of the corresponding total quantities ofthat Member State set out in Annex I of Regulation (EEC) No 3950/92,for the 12-month period 1999/2000, the Member State concerned shall,on the basis of objective criteria, take the necessary steps to reduce2003R1782 — EN — 01.05.2004 — 001.001 — 46
(1) OJ L 405, 31.12.1992, p. 1. Regulation as last amended by Commission
Regulation (EC) No 572/2003 (OJ L 82, 29.3.2003, p. 20).
(2) See page 123 of this Official Journal.▼M1
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accordingly the total amount of individual reference quantities eligible
for premium on its territory.
Article 96
Additional payments
1. From 2004 to 2007, Member States shall, on a yearly basis, make
additional payments to producers in their territory totalling the globalamounts per year set out in paragraph 2. Such payments shall bemade according to objective criteria and in such a way as to ensure
equal treatment between producers and to avoid market and competi-
tion distortions. Moreover, such payments shall not be linked tofluctuations of market prices.
Premium supplements shall only be granted as a supplementary amount
per premium amount as set out in Article 95(2).
2. Additional payments: global amounts expressed in EUR million:
2004 20052006 and
2007 (1)
Belgium 12,12 24,30 36,45
Denmark 16,31 32,70 49,05
Germany 101,99 204,53 306,79
Greece 2,31 4,63 6,94
Spain 20,38 40,86 61,29
France 88,70 177,89 266,84
Ireland 19,20 38,50 57,76
Italy 36,34 72,89 109,33
Luxembourg 0,98 1,97 2,96
Netherlands 40,53 81,29 121,93
Austria 10,06 20,18 30,27
Portugal 6,85 13,74 20,62
Finland 8,81 17,66 26,49
Sweden 12,09 24,24 36,37
United Kingdom 53,40 107,09 160,64
(1) And, in case of application of Article 70, for the following calendar years.
Article 97
Definitions
For the purpose of this Chapter, the definitions of ‘producer’ laid down
in Article 5 of Regulation (EC) No 1788/2003 shall apply.
CHAPTER 8
SPECIFIC REGIONAL AID FOR ARABLE CROPS
Article 98
Aid
In case of application of Article 70, in Finland and in Sweden north of
the 62nd Parallel and some adjacent areas affected by comparableclimatic conditions rendering agricultural activity particularly difficult,
farmers producing cereals, oilseeds, linseed and flax and hemp grown
for fibre shall be granted a specific aid of EUR 24/t, multiplied by theyields determined in the regionalisation plan for the region concernedwithin the limit of a ceiling, fixed by the Commission in accordancewith Article 64(2), corresponding to the component of this aid in theceiling referred to in Article 41.2003R1782 — EN — 01.05.2004 — 001.001 — 47
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When the total amount of aid claimed exceeds the fixed ceiling, the aid
per farmer shall be reduced proportionately in that year.
CHAPTER 9
SEED AID
Article 99
Aid
1. In case of application of Article 70, Member States shall grant, on
a yearly basis, the aids fixed in Annex XI for the production of basicseed or certified seeds of one or more of the species listed in AnnexXI.
2. In case the area accepted for certification for which the aid for
seeds is claimed is used also for claiming the aid under the singlepayment scheme, the amount of aid for seed, except in the case ofspecies referred to in Annex XI points 1 and 2, shall be reduced, butnot to less than zero, by the amount of aid of the single payment
scheme to be granted in a given year for the area concerned.
3. The amount of aid claimed shall not exceed a ceiling, fixed by
the Commission in accordance with Article 64(2), corresponding tothe component of seed aids for the species concerned in the nationalceiling referred to in Article 41. However, for the new Member States,this ceiling shall correspond to the amounts mentioned in Annex XIa.
When the total amount of aid claimed exceeds the fixed ceiling, the aid
per farmer shall be reduced proportionately in that year.
4. The varieties of Cannabis sativa L. for which the aid provided for
in this Article is payable shall be determined in accordance with theprocedure referred to in Article 144(2).
CHAPTER 10
ARABLE CROPS AREA PAYMENT
Article 100
Scope of application and definitions
1. In case of application of Article 66, Member States shall grant,
under the conditions set out in this Chapter, save as otherwiseprovided, the aid chosen by the Member State concerned according tothat Article, to farmers producing arable crops.
2. For the purposes of this Chapter:
— the marketing year shall run from 1 July to 30 June,
— ‘arable crops’ are taken to mean those listed in Annex IX.
3. Member States where maize is not a traditional crop may make
grass silage eligible for the arable crops area payments, under thesame conditions as those applicable for arable crops.
Article 101
Base areas
The area payment shall be fixed on a per hectare basis and regionally
differentiated.2003R1782 — EN — 01.05.2004 — 001.001 — 48
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The area payment shall be granted for the area which is down to arable
crops or subject to set-aside in accordance with Article 107 of thisRegulation and which does not exceed the total number of hectares of
the regional base area or areas as fixed in Annex VI of Commission
Regulation (EC) No 2316/1999 (
1), taking into account the application
of Regulation (EC) No 1017/94.
However, the regional base area or areas in the new Member States
shall be fixed by the Commission in accordance with the procedurereferred to in Article 144(2) and within the limits of the national baseareas listed in Annex XIb.
A region in this sense shall be understood to mean a Member State or a
region within the Member State, at the option of the Member Stateconcerned. In case of application of Article 66 of this Regulation, thearea or areas fixed in Annex VI of Regulation (EC) No 2316/1999 shallbe reduced by the number of hectares corresponding to the set-asideentitlements set up in accordance with Article 53 and 63(2) of this
Regulation in the region concerned.
Article 102
Overrun of base areas and ceiling
1. When the sum of the areas for which payment is claimed under
the arable crops' scheme, including the set-aside provided for underthat scheme in case of application of Article 71, is in excess of the
base area, the eligible area per farmer shall be reduced proportionately
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in question, during the same marketing year.
2. The sum of the payments claimed shall not be higher than the
ceiling fixed by the Commission in accordance with Article 64(2).When the total amount of aid claimed exceeds the fixed ceiling, the
aid per farmer shall be reduced proportionately in that year.
3. In case of application of Article 71, areas which are not the
subject of an application for payment under this Chapter but are usedto support an application for aid under Chapter 12 shall also be takeninto account for the calculation of areas for which payment is claimed.
4. If a Member State makes grass silage eligible for the arable crops
area payments, a separate base area shall be defined. If the base area
for arable crops or grass silage is not reached in a given marketingyear, the balance of hectares shall be allocated for the same marketingyear to the corresponding base area.
5. Where a Member State has chosen to establish one or more
national base areas, it may subdivide each national base area into sub-
base areas according to objective criteria to be defined by the MemberState.
For the purposes of applying this paragraph, the ‘Secano’ and
‘Regadío’ base areas shall be considered as national base areas.
Where there is an overshoot of a national base area, the Member State
concerned may, in accordance with objective criteria, concentrate the
measure applicable under paragraph 1 totally or partially on the sub-base areas for which the overshoot has been noted.
Member States which have decided to apply the possibilities provided
for in this paragraph, shall notify farmers and the Commission by 15September of their choices and the detailed rules for their application.2003R1782 — EN — 01.05.2004 — 001.001 — 49
(1) 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 Regula-
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Article 103
Regionalisation plan
The regionalisation plan established by Member States pursuant to
Article 3 of Regulation (EC) No 1251/1999 shall apply.
Alternatively, for any new Member State applying the single area
payment scheme referred to in Article 143b in 2004 and opting for
the application of Article 66, the regionalisation plan shall be estab-lished, according to objective criteria, not later than 1 August of thelast year of application of the single area payment scheme. Where thisis done, the combined regional base areas and the weighted average
reference yield in the regions shall respect the limits of the national
base area and reference yield as listed in Annex XIb.
The regionalisation plan may be revised, according to objective criteria,
by the Member State concerned at the request of the Commission or atthe initiative of that Member State.
Article 104
Basic amount
1. The area payment shall be calculated by multiplying the basic
amount per tonne by the average cereal yield determined in the regio-nalisation plan for the region concerned.
2. The calculation mentioned in paragraph 1 shall be made using the
average cereals yield. However, where maize is treated separately, the
'maize' yield shall be used for maize and the ‘cereals other than maize’
yield shall be used for cereals, oilseeds, linseed and flax and hempgrown for fibre.
3. The basic amount for arable crops and, in case of application of
Article 71, for set-aside shall be fixed at EUR 63,00/t from the 2005/2006 marketing year onwards.
Article 105
Durum wheat supplement
1. A supplement to the area payment of
— EUR 291/ha for the marketing year 2005/06,
— EUR 285/ha for the marketing year 2006/07 and onwards
shall be paid for the area down to durum wheat in the traditional
production zones listed in Annex X, subject to the following limits:
Greece 617 000 ha
Spain 594 000 haFrance 208 000 haItaly 1 646 000 haCyprus 6 183 ha
Hungary 2 500 ha
Austria 7 000 haPortugal 118 000 ha.
2. Should the total of the areas for which a supplement to the area
payment is claimed be greater than the limit referred to in paragraph 1during the course of a marketing year, the area per farmer for whichthe supplement may be paid shall be reduced proportionately.
However, subject to the limits per Member State laid down in para-
graph 1, Member States may distribute the areas indicated in that2003R1782 — EN — 01.05.2004 — 001.001 — 50
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paragraph among the production zones as defined in Annex X, or, for
the Member States of the Community as constituted on 30 April 2004,if necessary, the production regions of the regionalisation plan,
according to the extent of the production of durum wheat during the
period 1993 to 1997. Where this is done, should the total of the areaswithin a region for which a supplement to the area payment isrequested be greater than the corresponding regional limit during thecourse of a marketing year, the area per farmer in that production
region for which the supplement may be paid shall be reduced propor-
tionately. The reduction shall be made when, within a Member State,the areas in regions which have not reached their regional limits havebeen distributed to regions in which those limits have been exceeded.
3. In regions where the production of durum wheat is well estab-
lished, other than those referred to in Annex X, special aid amounting
to EUR 46/ha for the marketing year 2005/06 shall be granted up to alimit of the following number of hectares:
Germany 10 000 ha
Spain 4 000 haFrance 50 000 haItaly 4 000 haHungary 4 305 haSlovakia 4 717 haUnited Kingdom 5 000 ha.
Article 106
Flax and hemp
For flax and hemp grown for fibre, the area payment shall be made
only, depending on circumstances, when the contract is concluded orcommitment made as referred to in Article 2(1) of Regulation (EC)
No 1673/2000.
For hemp grown for fibre, the area payment shall also be made under
the conditions provided for in Article 52.
Article 107
Set-aside
1. In case of application of Article 71, farmers applying for the area
payment shall be subject to an obligation to set aside part of the land oftheir holding from production and shall receive compensation for thisobligation.
2. The set-aside obligation for each farmer applying for area
payments shall be fixed as a proportion of his area down to arable
crops and for which a claim is made and left in set-aside pursuant tothis Chapter.
The basic rate of compulsory set-aside is fixed at 10 % for the
marketing years 2005/2006 and 2006/2007.
3. The land set aside may be used for:
— producing materials for the manufacture within the Community of
products not directly intended for human or animal consumption,provided that effective control systems are applied;
— growing legume crops on a agricultural holding, managed for the
totality of its production, in compliance with the obligations laid
down in Regulation (EEC) No 2092/91.
Member States shall be authorised to pay national aid up to 50 % of
the costs associated with establishing multiannual crops intended forbio-mass production on set-aside land.2003R1782 — EN — 01.05.2004 — 001.001 — 51
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4. The quantity of by-products for feed or food uses likely to be
made available as a result of the cultivation of oilseeds on land set-aside under paragraph 3 first indent shall be taken into account for the
respect of the limit of 1 million tonnes referred to in Article 56(3).
5. Where different yields are set for irrigated and non-irrigated land,
the payment for set-aside for non-irrigated land apply.
6. Farmers may be granted the set-aside payment on land voluntarily
set aside in excess of their obligation. Member States shall allowfarmers to set-aside up to at least 10 % of the area down to arablecrops and for which a payment application is made, and left in set-
aside pursuant to this Article. Higher percentages may be set by a
Member State taking into account specific situations and ensuringsufficient occupation of farmland.
In case of application of Article 66, this paragraph shall apply
according to detailed rules to be adopted by the Commission, in accor-
dance with the procedure referred to in Article 144(2).
7. Farmers who make a payment application for an area no bigger
than the area which would be needed to produce 92 tonnes of cereals,
on the basis of the yields determined for their region, are not bound by
the set-aside obligation. Paragraph 6 shall apply to these farmers.
8. Without prejudice to Article 108, areas:
— set aside pursuant to agri-environment (Articles 22 to 24 of Council
Regulation (EC) No 1257/1999), which are neither put to any agri-cultural use nor used for any lucrative purposes other than those
accepted for other land set aside under this Regulation, or
— afforested pursuant to afforestation (Article 31 of Regulation (EC)
No 1257/1999),
as a result of an application made after 28 June 1995, may, up to any
limit per holding which may be set by the Member State concerned, be
counted as being set aside for the purposes of the set-aside requirementindicated in paragraph 1. Such limit shall be set only to the extentnecessary to avoid a disproportionate amount of the available budgetrelating to the scheme in question being concentrated on a small
number of farms.
However, on these areas, the area payment specified in Article 104 of
this Regulation shall not be granted and the support granted underArticle 24(1) or Article 31(1), second indent of Regulation (EC) No
1257/1999 shall be limited to an amount equal at most to the area
payment for set aside specified in Article 104 of this Regulation.
Member States may decide not to apply the scheme provided for in this
paragraph to a new applicant in any region in which there is a conti-
nuing risk of a significant overshoot of the regional base area.
9. Set aside areas shall not be less than 0,1 ha in size and 10 metres
wide. For duly justified environmental reasons, Member States mayaccept areas at least 5 metres wide and 0,05 ha in size.
Article 108
Eligible land
Applications for payments may not be made in respect of land which,
at the date provided for the area aid applications for 2003, was under
permanent pasture, permanent crops or trees or was used for non-agri-
cultural purposes.
For the new Member States, applications for payments may not be
made in respect of land which, on 30 June 2003, was under permanent
pasture, permanent crops or trees or was used for non-agricultural
purposes.
Member States may, on terms to be determined in accordance with the
procedure referred to in Article 144(2), derogate from the first or2003R1782 — EN — 01.05.2004 — 001.001 — 52
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second subparagraph of this Article provided that they take action to
prevent any significant increase in the total eligible agricultural area.
Article 109
Sowing and application
In order to qualify for the area payment, a farmer shall by 31 May at
the latest preceding the relevant harvest have sown the seed and by 15May at the latest have lodged an application.
Article 110
Implementing rules
Detailed rules for the application of this Chapter shall be adopted in
accordance with the procedure referred to in Article 144(2) and inparticular:
— those relating to the establishment and management of base areas,
— those relating to the establishment of production regionalisation
plans,
— those relating to grass silage,
— those relating to the granting of the area payment,
— those relating to the minimum area eligible for payment; such rules
shall take particular account of the monitoring requirements and ofthe desired effectiveness of the scheme in question,
— those determining, for durum wheat, the eligibility for the supple-
ment to the area payment and the eligibility requirements for thespecial aid, and in particular determination of the regions to be
taken into consideration,
— those relating to set-aside, and in particular those relating to Article
107(3); these conditions shall define the fodder legumes that may
be grown on land set aside and, with regard to the first indent of
the first paragraph of that paragraph, may include the growing ofcrops without compensation.
According to the same procedure, the Commission may:
— either make the granting of payments subject to the use of:
(i) specific seeds;
(ii) certified seed in the case of durum wheat and flax and hemp
grown for fibre;
(iii) certain varieties in the cases of oilseeds, durum wheat, linseed
and flax and hemp grown for fibre,
— or provide for the possibility for Member States to make the grant
of payments subject to such conditions,
— allow the dates in Article 109 to be varied in certain zones where
exceptional climatic conditions render the normal dates inapplic-able.
CHAPTER 11
SHEEP AND GOAT PREMIUMS
Article 111
Scope of application
In case of application of Article 67, Member States shall grant, on a
yearly basis, premiums or additional payments to farmers rearing sheepand goats under the conditions provided for in this Chapter, save asotherwise provided.2003R1782 — EN — 01.05.2004 — 001.001 — 53
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Article 112
Definitions
For the purposes of this Chapter the following definitions shall apply:
(a) ‘ewe’ shall mean any female of the ovine species having lambed at
least once or aged at least one year;
(b) ‘she-goat’ shall mean any female of the caprine species having
kidded at least once or aged at least one year.
Article 113
Ewe and goat premium
1. A farmer keeping ewes on his holding may qualify, on applica-
tion for a premium for maintaining ewes (ewe premium).
2. A farmer keeping she-goats on his holding may qualify, on appli-
cation for a premium for maintaining she-goats (goat premium). Thispremium shall be granted to farmers in specific areas where theproduction meets the following two criteria:
(a) goat rearing is mainly directed towards the production of goatmeat;
(b) goat and sheep rearing techniques are similar in nature.
A list of such areas shall be established following the procedure
referred to in Article 144(2).
3. The ewe premium and the goat premium shall be granted in the
form of an annual payment per eligible animal per calendar year and
per farmer within the limits of individual ceilings. The minimum
number of animals in respect of which an application for a premiumis lodged shall be determined by the Member State. This minimumshall not be less than 10 or greater than 50.
4. Per ewe, the amount of the premium shall be EUR 21. However
for farmers marketing sheep's milk or products based on sheep's milkthe premium per ewe shall be EUR 16,8.
5. Per she-goat the amount of the premium shall be EUR 16,8.
Article 114
Supplementary premium
1. A supplementary premium shall be paid to farmers in areas where
sheep and goat production constitutes a traditional activity or contri-butes significantly to the rural economy. Member States shall definethese areas. In any event the supplementary premium shall only begranted to a farmer whose holding has at least 50 % of its area usedfor agriculture situated in less-favoured areas defined pursuant to Regu-
lation (EC) No 1257/1999.
2. The supplementary premium shall also be granted to a farmer
practising transhumance provided that:
(a) at least 90 % of the animals for which the premium is applied are
grazed for at least 90 consecutive days in an eligible area estab-lished in accordance with paragraph 1, and
(b) the seat of the holding is situated in a well-defined geographical
area for which it has been established by the Member State thattranshumance is a traditional practice of sheep and/or goat rearing
and that these animal movements are necessary owing to the
absence of forage in sufficient quantity during the transhumanceperiod.
3. The amount of the supplementary premium shall be set at EUR 7
per ewe and per she-goat. The supplementary premium shall be grantedunder the same conditions as those laid down for the grant of the eweand goat premium.2003R1782 — EN — 01.05.2004 — 001.001 — 54
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Article 115
Common provisions
1. Premiums shall be paid to recipient farmers on the basis of the
number of ewes and/or she-goats kept on their holding over a minimum
period to be determined in accordance with the procedure referred to inArticle 144(2).
2. Once a Regulation providing for new rules on the identification
and registration of sheep and goats becomes applicable, to qualify forthe premium an animal shall be identified and registered in accordancewith these rules.
Article 116
Individual limits
1. On 1 January 2005 the individual ceiling per farmer referred to in
Article 113(3), shall be equal to the number of premium rights whichhe held on 31 December 2004 in accordance with the relevant Commu-nity rules.
2. Member States shall take the necessary measures to ensure that
the sum of premium rights on their territory does not exceed thenational ceilings set out in paragraph 4 and that the national reservesreferred to in Article 118 may be maintained.
Except in cases where Article 143b is applied, the new Member States
shall allocate individual ceilings to producers and shall set up the
national reserves from the overall number of rights to the premium
reserved for each of these new Member States as set out in paragraph4, no later than one year after the date of accession.
After the end of the period of application of the single area payment
scheme according to Article 143b and where Article 67 is applied, theallocation of the individual ceilings to producers and the setting up ofthe national reserve referred to in the second subparagraph shall takeplace no later than the end of the first year of the application of thesingle payment scheme.
3. Premium rights, which have been withdrawn pursuant to the
measure taken pursuant to paragraph 2 shall be abolished.
4. The following ceilings shall apply:
Member State Rights (× 1 000)
Belgium 70
Czech Republic 66,733
Denmark 104
Germany 2 432
Estonia 48
Greece 11 023
Spain 19 580
France 7 842
Ireland 4 956
Italy 9 575
Cyprus 472,401
Latvia 18,437
Lithuania 17,304
Luxembourg 4Hungary 1 146
Malta 8,4852003R1782 — EN — 01.05.2004 — 001.001 — 55
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Member State Rights (× 1 000)
Netherlands 930
Austria 206
Poland 335,88
Portugal (*) 2 690
Slovenia 84,909
Slovakia 305,756
Finland 80
Sweden 180
United Kingdom 19 492
Total 81 667,905
(*) To be adjusted on the expiry of Regulation (EC) No 1017/94.
Article 117
Transfer of premium rights
1. When a farmer sells or otherwise transfers his holding, he may
transfer all his premium rights to the person who takes over his
holding.
2. A farmer may also transfer, in whole or in part, his rights to other
farmers without transferring his holding.
In the case of a transfer of rights without transfer of the holding, a part
of the premium rights transferred, not exceeding 15 %, shall be surren-
dered, without compensation to the national reserve of the MemberState where his holding is situated for redistribution free of charge.
Member States may acquire premium rights from farmers who agree,
on a voluntary basis, to surrender their rights, in whole or in part. Inthis case payments for the acquisition of such rights may be made to
such farmers either from national budgets or as provided for under
Article 119(2), fifth indent.
By way of derogation from paragraph 1 and in duly justified circum-
stances, Member States may provide that in the case of a sale or othertransfer of the holding, the transfer of rights is carried out by the inter-
mediary of the national reserve.
3. Member States may take the necessary measures to avoid
premium rights being moved away from sensitive zones or regionswhere sheep production is especially important for the local economy.
4. Member States may authorise, before a date that they shall deter-
mine, temporary transfers of that part of the premium rights, which are
not intended to be used by the farmer who holds them.
Article 118
National reserve
1. Each Member State shall maintain a national reserve of premium
rights.
2. Any premium rights withdrawn pursuant to Article 117(2) or
other Community provisions shall be added to the national reserve.
3. Member States may allocate premium rights to farmers, within
the limits of their national reserves. When making the allocation theyshall give precedence in particular to newcomers, young farmers orother priority farmers.2003R1782 — EN — 01.05.2004 — 001.001 — 56
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Article 119
Additional payments
1. In case of application of Article 71, Member States shall, on a
yearly basis, make additional payments totalling the global amountsset out in paragraph 3 of this Article.
Member States may decide to supplement the global amounts set out in
paragraph 3 of this Article by reducing the amounts of the paymentsreferred to in Article 113. The reduction in the amounts, which maybe applied on a regional basis, shall not exceed one euro.
The payments shall be made, on a yearly basis, according to objective
criteria including, in particular, the relevant production structures andconditions, and in such a way as to ensure equal treatment betweenproducers and to avoid market and competition distortions. Moreover,
such payments shall not be linked to fluctuations of market prices.
They may be made on a regional basis.
2. Payments may include, in particular, the following:
— payments to farmers engaged in specific types of production, in
particular related to quality, which are important for the local
economy or the protection of the environment;
— an increase in the premium set out in Article 113. The additional
amounts may be subject to the application of stocking density
requirements, to be determined by the Member State according tolocal conditions;
— support for restructuring of farmers' holdings or the development of
producers' organisations;
— area payments to farmers, to be granted per hectare of forage area,
which is available to a farmer during the calendar year concernedand in respect of which no payments are claimed for the same
year under the support system for farmers producing certain arable
crops, under the aid system for dried fodder and under Communityaid schemes for other permanent or horticultural crops;
— payments to farmers who surrender their rights on a voluntary basis
pursuant to Article 117(2);
— support for the improvement and rationalisation of processing and
marketing of sheep and goatmeat.
3. The following global amounts shall apply:
(EUR 1 000)
Belgium 64
Czech Republic 71Denmark 79Germany 1 793
Estonia 51
Greece 8 767Spain 18 827France 7 083Ireland 4 875
Italy 6 920
Cyprus 441Latvia 192003R1782 — EN — 01.05.2004 — 001.001 — 57
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(EUR 1 000)
Lithuania 18
Luxembourg 4Hungary 1 212Malta 9Netherlands 743
Austria 185
Poland 355Portugal 2 275Slovenia 86
Slovakia 323
Finland 61Sweden 162United Kingdom 20 162
4. In the new Member States, the global amounts shall be applied in
accordance with the schedule of increments as set out in Article 143a.
Article 120
Ceilings
The sum of the amounts of each premium or additional payment
claimed shall not exceed the limit of the ceiling, fixed by the Commis-sion in accordance with Article 64(2).
When the total amount of aid claimed exceeds the fixed ceiling, the aid
per farmer shall be reduced proportionately in that year.
CHAPTER 12
BEEF AND VEAL PAYMENTS
Article 121
Scope of application
In case of application of Article 68, Member States shall grant, under
the conditions set out in this Chapter, save as otherwise provided, the
aid or aids chosen by the Member State concerned according to thatArticle.
Article 122
Definitions
For the purposes of this Chapter:
(a) ‘region’ shall mean a Member State or a region within a Member
State, at the option of the Member State concerned,
(b) ‘bull’ shall mean an uncastrated male bovine animal,
(c) ‘steer’ shall mean a castrated male bovine animal,2003R1782 — EN — 01.05.2004 — 001.001 — 58
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(d) ‘suckler’ cow shall mean a cow belonging to a meat breed or born
of a cross with a meat breed, and belonging to a herd intended forrearing calves for meat production,
(e) ‘heifer’ shall mean a female bovine animal from the age of eight
months which has not yet calved.
Article 123
Special premium
1. A farmer holding male bovine animals on his holding may
qualify, on application, for a special premium. It shall be granted in
the form of an annual premium per calendar year and per holdingwithin the limits of regional ceilings for not more than 90 animals foreach of the age brackets referred to in paragraph 2.
2. The special premium shall be granted no more than:
(a) once in the life of each bull from the age of nine months, or
(b) twice in the life of each steer:
— the first time at the age of nine months,
— the second time after it has reached the age of 21 months.
3. To qualify for the special premium:
(a) any animal covered by an application shall be held by the farmer
for fattening for a period to be determined,
(b) each animal shall be covered until slaughter or until export by an
animal passport referred to in Article 6 of Regulation (EC) No1760/2000 of the European Parliament and of the Council of 17
July 2000 establishing a system for the identification and registra-
tion of bovine animals and regarding the labelling of beef and beefproducts (
1) containing all relevant information on its premium
status or, if not available, an equivalent administrative document.
4. When in a given region the total number of bulls from the age of
nine months and of steers from nine months to 20 months of age, forwhich an application has been made and which satisfy the conditionsfor granting the special premium exceeds the regional ceiling referredto in paragraph 8, the number of all eligible animals under paragraph2(a) and (b) per farmer for the year in question shall be reduced
proportionately.
Within the meaning of this Article, ‘regional ceiling’ shall mean the
number of animals entitled to benefit, in a region and per calendaryear, from the special premium.
5. By way of derogation from paragraphs 1 and 4, Member States
may:
— on the basis of objective criteria that are part of a rural development
policy and only on the condition that they take into account envir-onmental as well as employment aspects, change or waive theheadage limit of 90 animals per holding and age bracket, and,
— where exercising this power, decide to apply paragraph 4 in such a
way as to reach the level of reductions required to comply with the
applicable regional ceiling, without applying such reductions to
small farmers who, in respect of the year in question, did notsubmit special premium applications for more than a minimumnumber of animals determined by the Member State concerned.
6. Member States may decide to grant the special premium at the
time of slaughter. In this case, for bulls the age criterion referred to inparagraph 2(a) shall be replaced by a minimum carcass weight of 185kilograms.
The premium shall be paid or passed back to the farmers.2003R1782 — EN — 01.05.2004 — 001.001 — 59
(1) OJ L 204, 11.8.2000, p. 1.
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The United Kingdom shall be authorised to apply in Northern Ireland a
system for granting the special premium which differs from thatapplied in the remainder of its territory.
7. The amount of the special premium shall be set at:
(a) EUR 210 per eligible bull;
(b) EUR 150 per eligible steer and age bracket.
8. The following regional ceilings shall apply:
Belgium 235 149
Czech Republic 244 349
Denmark 277 110
Germany 1 782 700
Estonia 18 800
Greece 143 134
Spain 713 999 (*)
France 1 754 732 (**)
Ireland 1 077 458Italy 598 746
Cyprus 12 000
Latvia 70 200
Lithuania 150 000
Luxembourg 18 962
Hungary 94 620
Malta 3 201
Netherlands 157 932
Austria 373 400
Poland 926 000
Portugal 175 075 (***) (****)
Slovenia 92 276
Slovakia 78 348
Finland 250 000
Sweden 250 000
United Kingdom 1 419 811 (*****)
(*) Without prejudice to the specific rules laid down in Regulation (EC) No 1454/
2001.
(**) Without prejudice to the specific rules laid down in Regulation (EC) No 1452/
2001.
(***) Without prejudice to the specific rules laid down in Regulation (EC) No 1453/
2001.
(****) To be adjusted on the expiry of Regulation (EC) No 1017/94.(*****) This ceiling shall be temporarily increased by 100 000 to 1 519 811 until such
time as live animals under six months of age may be exported.
Article 124
Deseasonalisation premium
1. In case of application of Article 71 where, in a Member State the
number of steers:
(a) slaughtered in a given year exceeds 60 % of total annual slaughter-
ings of male bovine animals, and
(b) slaughtered during the period 1 September to 30 November in a
given year exceeds 35 % of total annual slaughterings of steers,2003R1782 — EN — 01.05.2004 — 001.001 — 60
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farmers may qualify, on application, for an additional premium to the
special premium (deseasonalisation premium). However, if both trig-gering rates referred to above are reached in Ireland or in Northern
Ireland, the premium shall apply in Ireland and in Northern Ireland.
For the purpose of applying this Article in the United Kingdom,
Northern Ireland shall be regarded as a separate entity.
2. The amount of this premium shall be set at:
— EUR 72,45 per animal slaughtered during the first 15 weeks in a
given year,
— EUR 54,34 per animal slaughtered during the 16th and 17th weeks
in a given year,
— EUR 36,23 per animal slaughtered during the 18th to the 21st week
in a given year, and
— EUR 18,11 per animal slaughtered during the 22nd and 23rd weeks
in a given year.
3. Where the rate referred to in paragraph 1(b) is not achieved,
taking into account the penultimate sentence of paragraph 1, Member
States whose farmers have previously received the deseasonalisationpremium may decide to grant this premium at the rate of 60 % of theamounts set in paragraph 2.
In such case, the Member State concerned:
(a) may decide to grant this premium for the first two or three of the
periods in question only,
(b) shall ensure the measure is financially neutral in respect of the
same budget year by accordingly reducing:
— the amount of the second age bracket of the special premium
applicable to steers granted in that Member State, and/or
— the additional payments to be made under Section 2, and shall
inform the Commission of the reduction measure applied.
For the purpose of applying this measure, Ireland and Northern Ireland
shall be regarded as one entity for the calculation of the rate referred toin paragraph 1(a) and consequently for qualification for the premium.
4. In order to establish whether the percentages referred to in this
Article have been exceeded, account shall be taken of slaughteringscarried out during the second year preceding that in which the animalqualifying for the premium was slaughtered.
Article 125
Suckler cow premium
1. A farmer keeping suckler cows on his holding may qualify, on
application, for a premium for maintaining suckler cows (suckler cowpremium). It shall be granted in the form of an annual premium per
calendar year and per farmer within the limits of individual ceilings.
2. The suckler cow premium shall be granted to any farmer:
(a) not supplying milk or milk products from his farm for 12 months
from the day on which the application is lodged.
The supply of milk or milk products directly from the holding to
the consumer shall not, however, prevent grant of the premium,
(b) supplying milk or milk products whose total individual reference
quantity as referred to in Article 4 of Regulation (EEC) No 3950/92 does not exceed 120 000 kilograms. However, Member Statesmay decide on the basis of objective criteria, which they determine,
to change or waive this quantitative limit,
provided that the farmer keeps, for at least six consecutive months
from the day on which the application is lodged a number of sucklercows at least equal to 60 % and of heifers at most equal to 40 % ofthe number for which the premium was requested.2003R1782 — EN — 01.05.2004 — 001.001 — 61
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For the purposes of determining the number of eligible animals under
points (a) and (b) of the first paragraph of paragraph 2 of this Article,whether cows belong to a suckler herd or to a dairy herd shall be estab-
lished on the basis of the beneficiary's individual reference quantity as
defined in Article 95(2) and the average milk yield.
3. The farmers' entitlement to the premium shall be limited by the
application of an individual ceiling as defined in Article 126.
4. Per eligible animal, the amount of the premium shall be set at
EUR 200.
5. In case of application of Article 68(a)(i), Member States may
grant an additional national suckler cow premium, up to a maximumof EUR 50 per animal, provided that no discrimination is caused
between stockfarmers in the Member State concerned.
In respect of holdings located in a region as defined in Articles 3 and 6
of Council Regulation (EC) No 1260/1999 of 21 June 1999 layingdown general provisions on the Structural Funds (
1), the first EUR
24,15 per animal of this additional premium shall be financed by theGuarantee Section of the European Guidance and Guarantee Fund(EAGGF).
In respect of holdings located throughout the territory of a Member
State, if in the Member State concerned the cattle population has a
high proportion of suckler cows, representing at least 30 % of the totalnumber of cows, and if at least 30 % of male bovine animals slaugh-tered belong to conformation classes S and E, the Guarantee Section ofEAGGF shall finance the additional premium in total. Any overshoot
of these percentages is established on the basis of the average of the
two years preceding that for which the premium is granted.
6. For the purposes of this Article, only heifers belonging to a meat
breed or born of a cross with a meat breed and belonging to a herdintended for rearing calves for meat production shall be taken intoaccount.
Article 126
Individual ceiling for suckler cow
1. An aid shall be granted to each farmer of suckler cows within the
limit of the individual ceilings established in application of Article 7 ofRegulation (EC) No 1254/1999 or of the second subparagraph of para-
graph 2.
2. Member States shall take the necessary steps to ensure that the
sum of premium rights on their territory does not exceed the nationalceilings set out in paragraph 5 and that the national reserves referredto in Article 128 may be maintained.
Except in cases where Article 143b is applied, the new Member States
shall allocate individual ceilings to producers and shall set up thenational reserves from the overall number of rights to the premium
reserved for each of these Member States as set out in paragraph 5,
no later than one year after the date of accession.
After the end of the period of application of the single area payment
scheme according to Article 143b and where Article 68(2)(a)(i) isapplied, the allocation of the individual ceilings to producers and thesetting up of the national reserve referred to in the second subparagraphshall take place no later than the end of the first year of the application
of the single payment scheme.
3. Where the adjustment referred to in paragraph 2 requires a reduc-
tion of individual ceilings held by farmers, it shall be carried out2003R1782 — EN — 01.05.2004 — 001.001 — 62
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without compensatory payment and decided on the basis of objective
criteria, including, in particular:
— the rate at which farmers have used their individual ceilings during
the three reference years prior to the year 2000,
— the implementation of an investment or extensification programme
in the beef and veal sector,
— particular natural circumstances or the application of penalties,
resulting in a non-payment or a reduced payment of the premium
for at least one reference year,
— additional exceptional circumstances having the effect that the
payments made for at least one reference year do not correspondto the actual situation as established during the previous years.
4. Premium rights which have been withdrawn pursuant to the
measure provided for in paragraph 2 shall be abolished.
5. The following national ceilings shall apply:
Belgium 394 253
Czech Republic (*) 90 300
Denmark 112 932
Germany 639 535
Estonia (*) 13 416
Greece 138 005
Spain (**) 1 441 539
France (***) 3 779 866
Ireland 1 102 620
Italy 621 611
Cyprus (*) 500
Latvia (*) 19 368
Lithuania (*) 47 232
Luxembourg 18 537
Hungary (*) 117 000
Malta (*) 454
Netherlands 63 236Austria 375 000
Poland (*) 325 581
Portugal (****) (*****) 416 539
Slovenia (*) 86 384
Slovakia (*) 28 080
Finland 55 000
Sweden 155 000
United Kingdom 1 699 511
(*) Applicable from the date of accession.
(**) Without prejudice to the specific rules laid down in Regulation (EC) No 1454/
2001.
(***) Without prejudice to the specific rules laid down in Regulation (EC) No 1452/
2001.
(****) Without prejudice to the specific rules laid down in Regulation (EC) No 1453/
2001.
(*****) To be increased on the expiry of Regulation (EC) No 1017/94 by the premiums
resulting from the application of that Regulation in 2003 and 2004.2003R1782 — EN — 01.05.2004 — 001.001 — 63
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Article 127
Transfer of suckler cow premium rights
1. When a farmer sells or otherwise transfers his holding, he may
transfer all his suckler cow premium rights to the person who takes
over his holding. He may also transfer, in whole or in part, his rightsto other farmers without transferring his holding.
In the case of transfer of premium rights without transfer of the holding
a part of the transferred rights, which shall not exceed 15 %, shall be
returned without compensatory payment to the national reserve of the
Member State where the holding is situated for redistribution free ofcharge.
2. The Member States:
(a) shall take the necessary measures to prevent premium rights being
transferred outside sensitive areas or regions where beef and veal
production is particularly important for the local economy;
(b) may provide either that the transfer of rights without transfer of the
holding is carried out directly between farmers or that it is carried
out through the intermediary of the national reserve.
3. Member States may authorise, before a date to be determined,
temporary transfers of part of the premium rights which are notintended to be used by the farmer who holds them.
Article 128
National reserve of suckler cow premium rights
1. Each Member State shall maintain a national reserve of suckler
cow premium rights.
2. Any premium rights withdrawn pursuant to Article 127(1) or
other Community provisions shall be added to the national reserve,without prejudice to Article 126(4).
3. The Member States shall use their national reserves for allocating,
within the limits of those reserves, premium rights in particular to
newcomers, young farmers and other priority farmers.
Article 129
Heifers
1. By way of derogation from Article 125(3), Member States where
more than 60 % of suckler cows and heifers are kept in mountain areaswithin the meaning of Article 18 of Council Regulation (EC) No 1257/
1999 may decide to manage the granting of the suckler cow premium
for heifers separately from that for suckler cows within the limits of aseparate national ceiling to be set up by the Member State concerned.
Such separate national ceiling shall not exceed 40 % of the national
ceiling of the Member State concerned set out in Article 126(5). Thatnational ceiling shall be reduced by an amount equal to the separate
national ceiling. When in a Member State exercising the power
provided for in this paragraph, the total number of heifers, for whichan application has been made, and which satisfy the conditions forgranting the suckler cow premium, exceeds the separate nationalceiling, the number of eligible heifers per farmer for the year in ques-
tion shall be reduced proportionately.
2. For the purpose of this Article, only heifers belonging to a meat
breed or born of a cross with a meat breed shall be taken into account.
Article 130
Slaughter premium
1. A farmer keeping bovine animals on his holding may qualify, on
application, for a slaughter premium. It shall be granted on slaughter of2003R1782 — EN — 01.05.2004 — 001.001 — 64
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eligible animals or their export to a third country and within national
ceilings to be determined.
The following shall be eligible for the slaughter premium:
(a) bulls, steers, cows and heifers from the age of eight months,
(b) calves of more than one and less than eight months old and of
carcass weight up to 185 kg,
provided they have been held by the farmer for a period to be deter-
mined.
2. The amount of the premium shall be set at:
(a) EUR 80 per eligible animal as specified under paragraph 1(a);
(b) EUR 50 per eligible animal as specified under paragraph 1(b).
3. The national ceilings referred to in paragraph 1 shall be estab-
lished per Member State and separately for both groups of animals as
specified in (a) and (b) thereof. Each ceiling shall be equal to the
number of animals of each of these two groups which in 1995 wereslaughtered in the Member State concerned to which are added thoseanimals exported to third countries, according to Eurostat data or anyother published official statistical information for that year accepted
by the Commission.
For the new Member States the national ceilings shall be those
contained in the following table:
Bulls, steers, cows and
heifersCalves more than 1 and
less than 8 months old and
of carcase weight up to
185 kg
Czech Republic 483 382 27 380
Estonia 107 813 30 000
Cyprus 21 000 —
Latvia 124 320 53 280
Lithuania 367 484 244 200
Hungary 141 559 94 439
Malta 6 002 17
Poland 1 815 430 839 518
Slovenia 161 137 35 852
Slovakia 204 062 62 841
4. When in a given Member State the total number of animals, for
which an application has been made in respect of one of the twogroups of animals specified in (a) or (b) of paragraph 1, and which
satisfy the conditions for granting the slaughter premium exceeds the
national ceiling laid down for that group, the number of all eligibleanimals under that group per farmer for the year in question shall bereduced proportionately.
Article 131
Stocking density
1. In case of application of Article 71, the total number of animals
qualifying for the special premium and the suckler-cow premium shall
be limited by the application of a stocking density on the holding of
two livestock units (LU) per hectare and calendar year. The stockingdensity shall be 1,8 LU from 1 January 2003. This stocking densityshall be expressed in LU per unit of forage area of the holding usedfor the animals carried on it. However, a farmer shall be exempt fromthe application of the stocking density if the number of animals held on2003R1782 — EN — 01.05.2004 — 001.001 — 65
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his holding and to be taken into account for determining the stocking
density is not more than 15 LU.
2. For determining the stocking density on the holding, account shall
be taken of:
(a) the male bovine animals, suckler cows and heifers, sheep and/or
goats for which premium applications have been submitted, aswell as the dairy cows needed to produce the total reference quan-tity of milk allocated to the farmer. The number of animals shall beconverted to LU by reference to the following conversion table:
Male bovine animals and heifers older than 24
months, suckler cows, dairy cows1,0 LU
Male bovine animals and heifers from six months to
24 months0,6 LU
Sheep 0,15 LU
Goats 0,15 LU
(b) the forage area, meaning the area of the holding available
throughout the calendar year for rearing bovine animals and sheep
and/or goats. The forage area shall not include:
— buildings, woods, ponds, paths,
— areas used for other crops eligible for Community aid or for
permanent crops or horticultural crops, except permanentpasture for which area payments are granted pursuant to Article
136 or, as the case may be, Article 96,
— areas qualifying for the support system laid down for the
farmers producing certain arable crops, used for the aid scheme
for dried fodder or subject to a national or Community set-asidescheme.
Forage area shall include areas in shared use and areas which are
subject to mixed cultivation.
Article 132
Extensification payment
1. In case of application of Article 71, farmers receiving the special
premium and/or the suckler cow premium may qualify for an extensifi-
cation payment.
2. The extensification payment shall be EUR 100 per special
premium and suckler cow premium granted, provided that in respectof the calendar year concerned the stocking density on the holdingconcerned is less than or equal to 1,4 LU per hectare.
However, Member States may decide to grant the extensification
payment at an amount of EUR 40 for a stocking density of 1,4 LUper hectare or more and less or equal to 1,8 LU per hectare, and at an
amount of EUR 80 for a stocking density of less than 1,4 LU per
hectare.
3. For the purposes of the application of paragraph 2:
(a) by way of derogation from Article 131(2)(a), the stocking density
of the holdings shall be determined by taking into account themale bovine animals, cows, and heifers present thereon during thecalendar year concerned, as well as the sheep and/or goats for
which premium applications have been submitted for the same
calendar year. The number of animals shall be converted to LUby reference to the conversion table referred to in Article 131(2)(a);
(b) without prejudice to the third indent of Article 131(2)(b), areas
used for the production of arable crops as defined in Annex IX
shall not be taken as ‘forage area’;
(c) the forage area to be taken into account for the calculation of the
stocking density shall consist of at least 50 % of pasture land.2003R1782 — EN — 01.05.2004 — 001.001 — 66
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‘Pasture land’ shall be defined by Member States. The definition shall
include at least the criterion that pasture land shall be grassland which,following the local farming practices is recognised as being destined
for grazing bovine animals and/or sheep. However, this shall not
exclude the mixed use of pasture land during the same year (pasture,hay, grass silage).
4. Without prejudice to the stocking density requirements set out in
paragraph 2 of this Article, farmers in Member States where more than50 % of milk production takes place in mountain areas within themeaning of Article 18 of Regulation (EC) No 1257/1999 and whoseholdings are located in such areas, may receive extensificationpayments as set out in that paragraph for the dairy cows kept thereon.
5. In accordance with the procedure referred to in Article 144(2), the
Commission shall if necessary, adjust the amounts set out in paragraph2 of this Article, taking account, in particular, of the number of animals
qualifying for the payment for the preceding calendar year.
Article 133
Additional payments
1. In case of application of Article 71, Member States shall, on a
yearly basis, make additional payments to farmers in their territorytotalling the global amounts set out in paragraph 3 of this Article.Such payments shall be made according to objective criteria including,
in particular, the relevant production structures and conditions, and in
such a way as to ensure equal treatment between farmers and to avoidmarket and competition distortions. Moreover, such payments shall notbe linked to fluctuations of market prices.
2. Additional payments may be made in the form of headage
payments and/or area payments.
3. The following global amounts shall apply:
(EUR million)
Belgium 39,4
Czech Republic 8,776017
Denmark 11,8
Germany 88,4
Estonia 1,13451
Greece 3,8
Spain 33,1
France 93,4
Ireland 31,4
Italy 65,6
Cyprus 0,308945
Latvia 1,33068
Lithuania 4,942267
Luxembourg 3,4
Hungary 2,936076
Malta 0,0637
Netherlands 25,3Austria 12,0
Poland 27,3
Portugal 6,2
Slovenia 2,9647802003R1782 — EN — 01.05.2004 — 001.001 — 67
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(EUR million)
Slovakia 4,500535
Finland 6,2Sweden 9,2
United Kingdom 63,8
Article 134
Headage payments
1. Headage payments may be granted for:
(a) male bovine animals,
(b) suckler cows,
(c) dairy cows,
(d) heifers.
2. Headage payments may be granted as supplementary amounts per
slaughter premium unit as set out in Article 130, except for calves. In
the other cases, the grant of headage payments shall be subject:
(a) to the special conditions set out in Article 135,
(b) to specific stocking density requirements to be established by
Member States.
3. The specific stocking density requirements shall be established:
— on the basis of the forage area referred to in Article 131(2)(b), with
the exception of areas for which area payments are granted inaccordance with Article 136,
— taking account of, in particular, the environmental impact of the
type of production concerned, the environmental sensitivity of theland used for rearing cattle and the measures which have been
implemented with a view to stabilise or improve the environmental
situation of this land.
Article 135
Conditions for the headage payment
1. Headage payments for male bovine animals may be granted per
calendar year for no more than a number of animals in a MemberState:
— equal to the regional ceiling of the Member State concerned set out
in Article 123(8), or
— equal to the number of male bovine animals for which premiums
were granted in 1997, or
— equal to the average number of slaughterings of male bovine
animals during the years 1997, 1998 and 1999 deriving from Euro-stat statistics for these years or any other published officialstatistical information for these years accepted by the Commission,
or
— for the new Member States: equal to the ceilings set out in Article
123(8) or equal to the average number of slaughterings of male
bovine animals during the years 2001, 2002 and 2003 derivingfrom Eurostat statistics for these years or any other published offi-cial statistical information for these years accepted by theCommission.
Member States may also provide for a headage limit of number of male
bovine animals per holding to be determined by the Member State on anational or regional basis.2003R1782 — EN — 01.05.2004 — 001.001 — 68
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Only male bovine animals from the age of eight months shall be
eligible. If headage payments are made at the time of slaughter,Member States may decide to replace this condition by a minimum
carcase weight of at least 180 kilograms.
2. Headage payments for suckler cows and heifers qualifying for
suckler cow premium under Article 125(4) and Article 129 may only
be granted as a supplementary amount per suckler cow premium unitas set out in Article 125(4).
3. Headage payments for dairy cows may only be granted as amount
per tonne of reference quantity eligible for premium available on theholding to be established in accordance with Article 95(2).
Article 134(2)(b) shall not apply.
4. Headage payments for heifers other than those referred to in para-
graph 2 may be granted per Member State and calendar year for no
more than a number of heifers equal to the average number of slaugh-terings of heifers during the years 1997, 1998 and 1999 deriving fromEurostat statistics for these years or any other published official statis-tical information for these years accepted by the Commission.►
M1 For the new Member States the reference years shall be 2001,
2002 and 2003. ◄
Article 136
Area payments
1. Area payments shall be granted per hectare of permanent pasture:
(a) which is available to a farmer during the calendar year concerned,
(b) which is not used to comply with the specific stocking density
requirements referred to in Article 134(3), and
(c) in respect of which no payments under the support system laid
down for farmers producing certain arable crops, under the aidsystem for dried fodder and under Community aid schemes forother permanent or horticultural crops are claimed for the sameyear.
2. The area of permanent pasture in a region for which area
payments may be granted shall not exceed the relevant regional basearea.
Regional base areas shall be established by Member States as the
average number of hectares of permanent pasture available for rearingbovine animals during the years 1995, 1996 and 1997. ►
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new Member States the reference years shall be 1999, 2000 and
2001.◄
3. The maximum area payment per hectare which may be granted,
including, as the case may be, area payments pursuant to Article 96shall not exceed EUR 350.
Article 136a
Conditions of application in the new Member States
In the new Member States, the global amounts referred to in Article
133(3) and the maximum area payment per hectare at EUR 350referred to in Article 136(3) shall be applied in accordance with theschedule of increments as set out in Article 143a.
Article 137
Transmission of information
Any changes of national arrangements concerning the granting of addi-
tional payments shall be communicated to the Commission not laterthan one month after their adoption.2003R1782 — EN — 01.05.2004 — 001.001 — 69
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Article 138
Common provisions
To qualify for direct payments under this chapter, an animal shall be
identified and registered in accordance with Regulation (EC) No
1760/2000.
Article 139
Ceilings
The sum of the amounts of each direct payment claimed under this
chapter shall not exceed a ceiling, fixed by the Commission in accor-dance with Article 64(2) corresponding to the component of each ofthese direct payments in the ceiling referred to in Article 41.►
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Commission in accordance with Article 64(2) shall correspond to the
component of each of the direct payments concerned in the ceilingreferred to in Article 71c. ◄
When the total amount of aid claimed exceeds the fixed ceiling, the aid
per farmer shall be reduced proportionately in that year.
Article 140
Substances prohibited under Directive 96/22/EC
1. Where residues of substances prohibited under Directive 96/22/
EC (
1), or residues of substances authorised under the aforementioned
act but used illegally, are detected pursuant to the relevant provisionsof Directive 96/23/EC (
2), in an animal belonging to the bovine herd
of a farmer, or where a non-authorised substance or product, or asubstance or product authorised under Directive 96/22/EC but held
illegally is found on the farmer's holding in any form, the farmer shall
be excluded, for the calendar year of that discovery, from receiving theamounts provided for under this Chapter.
In the event of a repeated infringement, the length of the exclusion
period may, according to the seriousness of the offence, be extendedto five years as from the year in which the repeated infringement wasdiscovered.
2. In the event of obstruction on the part of the owner or holder of
the animals when inspections are being carried out and when thesamples are being taken which are necessary for the application ifnational residue-monitoring plans or when the investigations and
checks provided for under Directive 96/23/EC are being carried out,
the penalties provided for in paragraph 1 of this Article shall apply.
CHAPTER 13
GRAIN LEGUMES AID
Article 141
Scope of application
In case of application of Article 71, Member States concerned, shall
grant an aid for the production of the following grain legumes:
(a) lentils other than for sowing covered by CN code ex 0713 40 00;2003R1782 — EN — 01.05.2004 — 001.001 — 70
(1) Council Directive 96/22/EC of 29 April 1996 concerning the prohibition on
the use in stockfarming of certain substances having a hormonal or thyro-
static action and of β-agonists, and repealing Directives 81/602/EEC, 88/
146/EEC and 88/299/EEC (OJ L 125, 23.5.1996, p. 3).
(2) Council Directive 96/23/EC of 29 April 1996 on measures to monitor
certain substances and residues thereof in live animals and animal products
and repealing Directives 85/358/EEC and 86/469/EEC and Decisions 89/
187/EEC and 91/664/EEC (OJ L 125, 23.5.1996, p. 10). Directive as
amended by Regulation (EC) No 806/2003 (OJ L 122, 16.5.2003, p. 1).
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(b) chick peas other than for sowing covered by CN code
ex 0713 20 00;
(c) vetches of the species Vicia sativa L. and Vicia ervilla Willd.
covered by CN code ex 0713 90 90 (other).
Article 142
Aid
1. The aid shall be granted by marketing year for the production of
the grain legumes covered by Article 141. The marketing year shall run
from 1 July to 30 June.
An arable plot which is the subject of an application for aid per hectare
under a system financed in accordance with Article 1(2)(b) of Regula-
tion (EC) No 1258/1999 shall be excluded from eligibility for payment
of the aid provided for by this system.
2. Without prejudice to Article 143, the aid per hectare of area sown
and harvested shall be EUR 181 per hectare.
Article 143
Ceiling
The sum of the aid claimed shall not be higher than a ceiling fixed by
the Commission in accordance with Article 64(2), corresponding to thecomponent of grain legumes area payments referred to in Annex VI inthe national ceiling referred to in Article 41. However, for the new
Member States, the ceiling fixed by the Commission in accordance
with Article 64(2) shall correspond to the component of grain legumesarea payments referred to in Annex VI in the national ceiling referredto in Article 71c.
When the total amount of aid claimed exceeds the fixed ceiling, the aid
per farmer shall be reduced proportionately in that year.
TITLE V
TRANSITIONAL AND FINAL RULES
Article 144
Management Committee for Direct Payments
1. The Commission shall be assisted by the Management Committee
for Direct Payments, consisting of representatives of the Member States
and chaired by a representative of the Commission.
2. Where reference is made to this paragraph, Articles 4 and 7 of
Decision 1999/468/EC shall apply.
The period provided for in Article 4(3) of Decision 1999/468/EC shall
be set at one month.
3. The Committee shall adopt its Rules of Procedure.
Article 145
Implementing Rules
In accordance with the procedure referred to in Article 144(2), detailed
rules shall be adopted for the implementation of this Regulation. They
shall include in particular:
(a) detailed rules related to the establishment of a farm advisory
system;
(b) detailed rules related to the definition of the criteria for the alloca-
tion of amounts made available by the application of modulation;
(c) detailed rules related to the granting of aids provided for in this
Regulation, including eligibility conditions, dates of application2003R1782 — EN — 01.05.2004 — 001.001 — 71
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and payment and control provisions as well as checking and estab-
lishing entitlement to the aids including any necessary exchange ofdata with the Member States, and the establishment of the overrun
of the base areas or maximum guaranteed areas as well as detailed
rules concerning the withdrawal and reallocation of unusedpremium rights established under Chapter 11 and 12;
(d) with regard to the single payment scheme, detailed rules relating
in particular to the establishment of national reserve, the transfer
of entitlements, the definition of permanent crops, permanentpastures, agricultural land and grassland, the options provided forin Chapters 5 and 6 of Title III and the list of crops allowed on theset-aside land as well as detailed rules relating to compliance withthe Memorandum of Understanding on certain oil seeds between
the European Economic Community and the United States of
America within the framework of the GATT approved by Decision93/355/EEC (
1);
(e) with regard to durum wheat, detailed rules relating to the quanti-
ties of certified seeds and recognised varieties;
(f) with regard to energy crops, detailed rules relating to the definition
of crops covered by the scheme, minimal requirements for thecontract, control measures on the quantity processed and proces-sing on the holding;
(g) with regard to hemp grown for fibre, detailed rules relating to the
specific control measures and methods for determining tetrahydro-cannabinol levels including the arrangements for contracts and tothe commitment referred to in Article 52;
(h) such amendments to Annex I as may become necessary taking into
account the criteria set out in Article 1;
(i) such amendments to Annexes II, VI, VII, IX, X and XI as may
become necessary, taking into account in particular new Commu-nity legislation and, as far as it concerns Annexes VIII and VIIIa,in case of application of Articles 62 and 71i respectively and, as
the case may be, in function of the information communicated by
the Member States in relation to the part of the reference amountscorresponding to the payments for arable crops, as well as theamounts of the ceilings themselves, to be increased in function ofthe difference between the area actually determined and the areafor which premiums were paid for arable crops in 2000 and 2001,
in application of Article 9(2) and (3) of Commission Regulation
(EEC) No 3887/92 (
2), within the limit of the base areas (or
maximum guaranteed area for durum wheat) and taking intoaccount the average national yield used for the calculation ofAnnex VIII;
(j) the basic features of the identification system for agricultural
parcels and their definition;
(k) any amendments which may be made to the aid application and
exemption from the requirement to submit an aid application;
(l) rules on the minimum amount of information to be included in the
aid applications;
(m) rules on the administrative and on-the-spot checks and the checks
by remote sensing;
(n) rules on the application of reductions and exclusions from
payments in case of non-compliance with the obligations referred
to in Articles 3 and 24, including cases of non-application ofreductions and exclusions;2003R1782 — EN — 01.05.2004 — 001.001 — 72
(1) OJ L 147, 18.6.1993, p. 25.
(2) OJ L 327, 12.12.2001, p. 11.▼M1
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▼M1
▼B
▼B
(o) such amendments to Annex V as may become necessary taking
into account the criteria set out in Article 26;
(p) communications between the Member States and the Commission;
(q) measures which are both necessary and duly justified to resolve, in
an emergency, practical and specific problems, in particular thoserelated to the implementation of Chapter 4 of Title II and Chapters
5 and 6 of Title III. Such measures may derogate from certain
parts of this Regulation, but only to the extent that, and for sucha period as, is strictly necessary.
Article 146
Transmission of information to the Commission
Member States shall inform the Commission in detail of the measures
taken to implement this Regulation and, in particular, those relating toArticles 5, 13, 42, 58, 71d and 71e.
Article 147
Amendments to Regulations (EEC) No 2019/93, (EC) No 1452/2001,
No 1453/2001, No 1454/2001
1) Article 6 of Regulation (EEC) No 2019/93 shall be replaced by the
following:
‘Article 6
1. In case of application of the exclusion provided for in Article
70 of Council Regulation (EC) No 1782/2003 (*) of 29 September
2003 establishing common rules for direct support schemes underthe Common Agricultural Policy and establishing certain supportschemes for farmers, the Hellenic Republic shall present to theCommission a programme to assist traditional activities connected
with beef and veal, as well as sheep and goat production, within
the limits of the consumption needs of minor Aegean Islands.
The programme shall be prepared and implemented by the compe-
tent authorities designated by the Member State.
2. The Community shall finance the programme up to an annual
amount equal to the sum of premiums actually paid in 2003pursuant to Regulation (EC) No 1254/1999 (**), to this Regulationand to Regulation (EC) No 2529/2001 (***) for producers estab-
lished in the minor Aegean Islands.
The Commission shall increase such amount in order to take into
consideration the development of the local production. However,the annual amount shall in no case be higher than the sum of theceilings applicable in 2003 for beef premiums pursuant to thisRegulation multiplied by the base and complementary premiums
and payments applicable in 2003 and the sum of all premiums rights
held by producers established in the minor Aegean Islands at thedate of 30 June 2003 pursuant to Regulation (EC) No 2529/2001and the pertinent proportion of the national reserve multiplied bythe premiums and payments applicable in 2003.
3. The Commission shall adopt the implementing arrangements,
approve and modify the programme as well as fix and increase the
amount provided for in paragraph 2, first subparagraph, of this
Article in accordance with the procedure referred to in Article144(2) of Regulation (EC) No 1782/2003
+The Commission may,
in accordance with the same procedure, revise the limit set forth inparagraph 2, second subparagraph.
4. Before 15 April every year, Greek authorities shall present a
report on the implementation of the programme.
(*) OJ L 270, 21.10.2003, p. 1.
(**) OJ L 160, 26.6.1999, p. 21. Regulation as last amended by
Regulation (EC) No 806/2003 (OJ L 122, 16.5.2003, p. 1).
(***) OJ L 341, 22.12.2001, p. 3.’2003R1782 — EN — 01.05.2004 — 001.001 — 73
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2) Article 9 of Regulation (EC) No 1452/2001 shall be replaced by the
following:
‘Article 9
1. In case of application of the exclusion provided for in Article
70 of Regulation (EC) No 1782/2003 of 29 September 2003 estab-lishing common rules for direct support schemes under the common
agricultural policy and establishing certain support schemes for
farmers (*), France shall present to the Commission programmes toassist traditional activities connected with beef and veal, as well assheep and goat production and measures to improve product quality,within the limits of the consumption needs of the French OverseasDepartments.
The programmes shall be prepared and implemented by the compe-
tent authorities designated by the Member State.
2. The Community shall finance the programmes up to an annual
amount equal to the sum of premiums actually paid in 2003pursuant to Regulation (EC) No 1254/1999 (**), to this Regulationand to Regulation (EC) No 2529/2001 (***) for producers estab-lished in the French Overseas Departments.
The Commission shall increase such amount in order to take into
consideration the development of the local production. However,the annual amount shall in no case be higher than the sum of theceilings applicable in 2003 for beef premiums pursuant to Regula-tion (EC) No 1452/2001 multiplied by the base and complementarypremiums and payments applicable in 2003 and the sum of all
premiums rights held by producers established in the French Over-
seas Departments at the date of 30 June 2003 pursuant to Regulation(EC) No 2529/2001 and the pertinent proportion of the nationalreserve multiplied by the premiums and payments applicable in2003.
3. The Commission shall adopt the implementing arrangements,
approve and modify the programmes as well as fix and increase
the amount provided for in paragraph 2, first subparagraph of thisArticle, in accordance with the procedure referred to in Article144(2) of Regulation (EC) No 1782/2003. The Commission may,in accordance with the same procedure, revise the limit set forth inparagraph 2, second subparagraph.
4. Before 15 April every year, French authorities shall present a
report on the implementation of the programmes.
(*) OJ L 270, 21.10.2003, p. 1.
(**) OJ L 160, 26.6.1999, p. 21. Regulation as last amended by
Regulation (EC) No 806/2003 (OJ L 122, 16.5.2003, p. 1).
(***) OJ L 341, 22.12.2001, p. 3.’
3) Regulation (EC) No 1453/2001 is hereby amended as follows:
(a) Article 13 shall be replaced by the following:
‘Article 13
1. In case of application of the exclusion provided for in
Article 70 of Council Regulation (EC) No 1782/2003 of 29September 2003 establishing common rules for direct support
schemes under the common agricultural policy and establishing
certain support schemes for farmers (*), the Portuguese Republicshall present to the Commission a programme to assist tradi-tional activities connected with beef and veal, as well as sheepand goat production and measures to improve product quality,within the limits of the consumption needs of Madeira.
The programme shall be prepared and implemented by the
competent authorities designated by the Member State.
2. The Community shall finance the programme up to an
annual amount equal to the sum of premiums actually paid in2003 pursuant to Regulation (EC) No 1254/1999 (**), to thisRegulation and to Regulation (EC) No 2529/2001 (***) forproducers established in Madeira.2003R1782 — EN — 01.05.2004 — 001.001 — 74
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The Commission shall increase such amount in order to take
into consideration the development of the local production.However, the annual amount shall in no case be higher than
the sum of the ceilings applicable in 2003 for beef premiums
pursuant to Regulation (EC) No 1453/2001 multiplied by thebase and complementary premiums and payments applicable in2003 and the sum of all premiums rights held by producersestablished in Madeira at the date of 30 June 2003 pursuant to
Regulation (EC) No 2529/2001 and the pertinent proportion of
the national reserve multiplied by the premiums and paymentsapplicable in 2003.
3. The Commission shall adopt the implementing arrange-
ments, approve and modify the programme as well as fix andincrease the amount provided for in paragraph 2, first subpara-
graph, of this Article in accordance with the procedure referred
to in Article 144(2) of Regulation (EC) No 1782/2003. TheCommission may, in accordance with the same procedure,revise the limit set forth in paragraph 2, second subparagraph.
4. Before 15 April every year, the Portuguese Republic
authorities shall present a report on implementation of the
programme.
(*) OJ L 270, 21.10.2003, p. 1.
(**) OJ L 160, 26.6.1999, p. 21. Regulation as last amended
by Regulation (EC) No 806/2003 (OJ L 122, 16.5.2003,p. 1).
(***) OJ L 341, 22.12.2001, p. 3.’
(b) Article 22(2) to (5) shall be replaced by the following:
‘2. In case of application of the exclusion provided for in
Article 70 of Council Regulation (EC) No 1782/2003
+, the
Portuguese Republic shall present to the Commission aprogramme to assist traditional activities connected with beefand veal, as well as sheep and goat production and measures toimprove product quality.
The programme shall be prepared and implemented by the
competent authorities designated by the Member State.
3. The Community shall finance the programme up to an
annual amount equal to the sum of premiums actually paid in2003 pursuant to Regulation (EC) No 1254/1999, to this Regu-lation and to Regulation (EC) No 2529/2001 for producersestablished in the Azores.
The Commission shall increase such amount in order to take
into consideration the development of the local production.
However, the annual amount shall in no case be higher thanthe sum of the ceilings applicable in 2003 for beef premiumspursuant to this Regulation multiplied by the base and comple-mentary premiums a and payments applicable in 2003 and the
sum of all premiums rights held by producers established in
the Azores at the date of 30 June 2003 pursuant to Regulation(EC) No 2529/2001 and to Regulation (EC) No 1254/1999 forsuckler cows premiums, and the pertinent proportions of thenational reserves thereof multiplied by the premiums andpayments applicable in 2003.
In case of application of Article 68(a)(i) of Regulation (EC) No
1782/2003 the Portuguese Republic authorities may increase theceiling for suckler cow for the Azores by transferring sucklercow premium rights from the national ceiling. In this case, thecorresponding amount shall be transferred from the ceiling fixedin application of Article 68(a)(i) of Regulation (EC) No 1782/
2003 to the ceiling referred to in the second subparagraph of
paragraph 3 of this Article.
4. The Commission shall adopt the implementing arrange-
ments, approve and modify the programme as well as fix andincrease the amount provided for in paragraph 3, first subpara-graph of this Article, in accordance with the procedure referred2003R1782 — EN — 01.05.2004 — 001.001 — 75
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to in Article 144(2) of Regulation (EC) No 1782/2003. The
Commission may, in accordance with the same procedure,revise the limit set forth in paragraph 2, second subparagraph.
5. Before 15 April every year the Portuguese Republic autho-
rities shall present a report on implementation of theprogramme.’
(c) Article 22(6) shall be repealed.
(d) Article 23 shall be replaced by the following:
‘Article 23
For a transitional period covering the 1999/2000 to 2004/2005
marketing years, for the purposes of sharing the additional levybetween the producers referred to in the second sentence ofArticle 2(1) of Regulation (EEC) No 3950/92 (*), only produ-
cers as defined in Article 9(c) of that Regulation, established
and producing in the Azores, who market quantities exceedingtheir reference quantity increased by the percentage referred toin the third subparagraph shall be deemed to have contributedto the overrun.
The additional levy shall be due on quantities exceeding the
increased reference quantity after reallocation of the unused
quantities within the margin resulting from this increase amongthe producers referred to in the first paragraph and in proportionto the reference quantity available to each producer.
The percentage referred to in the first paragraph shall be equal
to the ratio between the quantities respectively, of 73 000 tonnes
for the period 1999/2000 to 2003/2004 and 61 500 tonnes for
the 2004/2005 marketing years, and the total of the referencequantities available on each holding on 31 March 2000. It shallapply for each producer only to the reference quantities avail-able to that producer on 31 March 2000.
(*) OJ L 405, 31.12.1992, p. 1. Regulation as last amended by
Commission Regulation (EC) No 572/2003 (OJ L 82,29.3.2003, p. 20).’
4) Regulation (EC) No 1454/2001 is hereby amended as follows:
(a) Article 5 shall be replaced by the following:
‘Article 5
1. In case of application of the exclusion provided for in
Article 70 of Council Regulation (EC) No 1782/2003
+of 29
September 2003 establishing common rules for direct supportschemes under the common agricultural policy and establishingcertain support schemes for farmers (*) the Kingdom of Spainshall present to the Commission a programme to assist tradi-
tional activities connected with beef and veal, as well as sheep
and goat production and measures to improve product quality,within the limits of the consumption needs of Canary Islands.
The programme shall be prepared and implemented by the
competent authorities designated by the Member State.
2. The Community shall finance the programme up to an
annual amount equal to the sum of premiums actually paid in
2003 pursuant to Regulation (EC) No 1254/1999 (**), to this
Regulation and to Regulation (EC) No 2529/2001 (***) forproducers established in the Canary Islands.
The Commission shall increase such amount in order to take
into consideration the development of the local production.However, the annual amount shall in no case be higher than
the sum of the ceilings applicable in 2003 for beef premiums
pursuant to Regulation (EC) No 1454/2001 multiplied by thebase and complementary premiums and payments applicable in2003 and the sum of all premiums rights held by producersestablished in the Canary Islands at the date of 30 June 2003pursuant to Regulation (EC) No 2529/2001 and the pertinent2003R1782 — EN — 01.05.2004 — 001.001 — 76
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proportion of the national reserve multiplied by the premiums
and payments applicable in 2003.
3. The Commission shall adopt the implementing arrange-
ments, approve and modify the programme as well as fix and
increase the amount provided for in paragraph 2, first subpara-graph, of this Article in accordance with the procedure referredto in Article 144(2) of Regulation (EC) No 1782/2003. TheCommission may, in accordance with the same procedure,revise the limit set forth in paragraph 2, second subparagraph.
4. Before 15 April every year, the Kingdom of Spain autho-
rities shall present a report on implementation of theprogramme.
(*) OJ L 270, 21.10.2003, p. 1.
(**) OJ L 160, 26.6.1999, p. 21. Regulation as last amended
by Regulation (EC) No 806/2003 (OJ L 122, 16.5.2003,
p. 1).
(***) OJ L 341, 22.12.2001, p. 3.’
(b) Article 6 shall be repealed.
Article 148
Amendments to Regulation (EC) No 1868/94
Regulation (EC) No 1868/94 is hereby amended as follows:1) The following Article 4 shall be inserted:
‘Article 4a
A minimum price for potatoes intended for the manufacture of
potato starch shall be set at EUR 178,31 per tonne from the 2004/
2005 marketing year onwards.
This price applies to the quantity of potatoes, delivered to the
factory, which is needed for making one tonne of starch.
The minimum price shall be adjusted according to the starch content
of the potatoes.’
2) Article 5 shall be replaced by the following:
‘Article 5
A premium of EUR 22,25 per tonne of starch produced shall be
paid to undertakings producing potato starch for the quantity ofpotato starch up the quota limit referred to in Article 2(2), providedthat they have paid to potato producers the minimum price, referred
to in Article 4a, for all the potatoes necessary to produce starch up
to that quota limit.’
3) Article 7 shall be replaced by the following:
‘Article 7
The provisions of this Regulation shall not cover production of
potato starch by undertakings which are not subject to Article 2(2)of this Regulation and which purchase potatoes for which producersdo not benefit from the payment provided for in Article 93 ofCouncil Regulation (EC) No 1782/2003 of 29 September 2003establishing common rules for direct support schemes under the
common agricultural policy and establishing certain support
schemes for farmers (*).
(*) OJ L 270, 21.10.2003, p. 1’
Article 149
Amendments to Regulation (EC) No 1251/1999
Regulation (EC) No 1251/1999 is amended as follows:1) In Article 4(3), the first indent shall be replaced by the following:
‘for protein crops:
— EUR 63,00/t from the 2004/2005 marketing year onwards’.2003R1782 — EN — 01.05.2004 — 001.001 — 77
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2) In Article 4(4), the amount of ‘EUR 19/t’ shall be replaced by ‘EUR
24/t’.
3) In Article 5:
(a) the first subparagraph shall be replaced by the following:
‘A supplement to the area payment of EUR 313/ha for the
marketing year 2004/2005, shall be paid for the area down todurum wheat in the traditional production zones listed in Annex
II, subject to the limits fixed in Annex III.’;
(b) the fourth subparagraph shall be replaced by the following:
‘In regions where the production of durum wheat is well estab-
lished, other than those referred to in Annex II, special aid
amounting to EUR 93/ha for the marketing year 2004/2005 shall
be granted up to a limit of the number of hectares laid down inAnnex IV.’
Article 150
Amendments to Regulation (EC) No 1254/1999
Regulation (EC) No 1254/1999 is amended as follows:1) In Article 10(1) second subparagraph, the percentage of ‘20 %’ shall
be replaced by ‘40 %’.
2) In Annex I, in the table concerning Special premium, the figure for
Austria is replaced by ‘373 400’.
3) In Annex II, in the table concerning Suckler cow premium, the
figures for Austria and Portugal are replaced respectively by‘375 000’ and ‘416 539’.
Article 151
Amendments to Regulation (EC) No 1673/2000
Regulation (EC) No 1673/2000 is hereby amended as follows:1) Article 1 is amended as follows:
(a) In paragraph 2, point (a) shall be replaced by the following:
‘(a) “farmer” shall mean a farmer as defined in Article 2(a) of
Council Regulation (EC) No 1782/2003
+of 29 September
2003 establishing common rules for direct support schemesunder the common agricultural policy and establishing
certain support schemes for farmers (*).
(*) OJ L 270, 21.10.2003, p. 1.’
(b) In paragraph 3, ‘Regulation (EC) No 1251/1999’ shall be
replaced by ‘Article 52 of Regulation (EC) No 1782/2003
+’
2) In the first and second indent of Article 5(2), ‘Article 5a of Regula-
tion (EC) No 1251/1999’ shall be replaced by ‘Article 52 of
Regulation (EC) No 1782/2003+’.
Article 152
Amendments to other Regulations
The following provisions are deleted:
(a) Article 3 of Regulation (EEC) No 2358/71;
(b) Articles 3 to 25 of Regulation (EC) No 1254/1999;
(c) Articles 3 to 11 of Regulation (EC) No 2529/2001.
Article 153
Repeals
1. Regulation (EEC) No 3508/92 is hereby repealed. However, it
shall continue to apply to applications for direct payments in respectof the calendar years preceding 2005.2003R1782 — EN — 01.05.2004 — 001.001 — 78
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2. Regulation (EC) No 1017/94 is hereby repealed starting from 1
January 2005.
3. Regulation (EC) No 1577/96 and Regulation (EC) No 1251/1999
are hereby repealed. However, they shall continue to apply to themarketing year 2004/2005.
4. Regulation (EC) No 1259/1999 is hereby repealed starting from 1
May 2004. However, Articles 2a and 11 of Regulation (EC) No 1259/
1999 as well as, for the purpose of applying those Articles, the Annexof that Regulation shall continue to apply until 31 December 2005.Furthermore Articles 3, 4, 5 and, for the purpose of applying thoseArticles, the Annex of that Regulation (EC) No 1259/1999 shall
continue to apply until 31 December 2004.
5. References made to the repealed Regulations shall be construed
as being made to this Regulation.
Article 154
Transitional rules for the simplified scheme
Where a Member State applies the simplified scheme referred to in
Article 2a of Regulation (EC) No 1259/1999, the following provisions
shall apply:
(a) 2003 shall be the last year in which participants may introduce new
applications;
(b) Participants shall continue to receive the amount established under
the simplified scheme until 2005;
(c) Chapters 1 and 2 of Title II of this Regulation shall not apply to
the amounts granted under the simplified scheme during the parti-cipation in the scheme;
(d) Farmers participating in the simplified scheme shall not be entitled
to apply for the single payment as long they participate in thesimplified scheme. In case of application for the single payment
scheme, the amount granted under the simplified scheme shall be
included in the reference amount referred to in Article 37 andcalculated and adjusted according to Chapter 2 of Title III of thisRegulation.
Article 154a
Transitional arrangements for new Member States
1. Where transitional measures are necessary in order to facilitate,
for the new Member States, the transition from the single area paymentscheme to the single payment scheme and other aid schemes referred toin Titles III and IV, such measures shall be adopted in accordance withthe procedure laid down in Article 144(2).
2. The measures referred to in paragraph 1 may be adopted during a
period starting on 1 May 2004 and expiring on 30 June 2009 and shallnot apply beyond that date. The Council, acting by a qualified majorityon a proposal from the Commission, may extend that period.
Article 155
Other transitional rules
Further measures required to facilitate the transition from the arrange-
ments provided for in the Regulations referred to in Articles 152 and153 to those established by this Regulation, notably those related to
the application of Articles 4 and 5 and the Annex of Regulation (EC)
No 1259/1999, Article 6 of Regulation (EC) No 1251/1999 ►
C1 and
from the provisions related to the improvement plans provided for inRegulation (EEC) No 1035/72 to those referred to in Articles 83 to 87of this Regulation, ◄may be adopted in accordance with the proce-
dure referred to in Article 144(2) of this Regulation. Regulations and2003R1782 — EN — 01.05.2004 — 001.001 — 79
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Articles referred to in Articles 152 and 153 shall continue to apply for
the purpose of the establishment of the reference amounts referred to inAnnex VII.
Article 156
Entry into force and application
1. This Regulation shall enter into force on the seventh day
following that of its publication in the Official Journal of the European
Union .
2. It shall apply as of the date of entry into force, with the following
exceptions:
(a) Title II, Chapters 4 and 5 shall apply to the applications for
payments made in respect of the calendar year 2005 and onwards.However, Article 28(2) shall apply for the application for paymentsunder Title IV, Chapters 1 to 7 from 1 January 2004.
(b) Title IV, Chapters 1, 2, 3, 6, and Article 149 shall apply starting
from marketing year 2004/2005.
(c) Title IV, Chapters 4, 5, 7 and Article 150 shall apply from 1
January 2004.
(d) Title II, Chapter 1, Article 20, Title III, Title IV Chapters 8, 10, 11,
12 and 13 and Article 147 shall apply from 1 January 2005, exceptArticle 147(3)(d) which shall apply from 1 April 2003.
(e) Title IV, Chapter 9 shall apply from marketing year 2005/2006.
(f) Article 151 and 152 shall apply from 1 January 2005, except
Article 152(a) which shall apply from the marketing year 2005/
2006.
This Regulation shall be binding in its entirety and directly applicable
in all Member States.2003R1782 — EN — 01.05.2004 — 001.001 — 80
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ANNEX I
List of direct payments referred to in Article 1
Sector Legal base Notes
Single payment Title III of this Regulation Decoupled payment (see Annex
VI) (*)
Durum wheat Title IV, Chapter 1 of this
RegulationArea aid (quality premium)
Protein crop Title IV, Chapter 2 of this
RegulationArea aid
Rice Title IV, Chapter 3 of this
RegulationArea aid
Nuts Title IV, Chapter 4 of this
RegulationArea aid
Energy crops Title IV, Chapter 5 of this
RegulationArea aid
Starch potato Title IV, Chapter 6 of this
RegulationProduction aid
Milk and dairy products Title IV, Chapter 7 of this
RegulationDairy premium and additional
payment
Arable crop in Finland and in
certain regions of SwedenTitle IV, Chapter 8 of this
Regulation (**) (*****)Specific regional aid for arable
crops
Seeds Title IV, Chapter 9 of this
Regulation (**) (*****)Production aid
Arable crops Title IV, Chapter 10 of this
Regulation (***) (*****)Area aid, including set-aside
payments, grass silage
payments, supplementary
amounts (**), durum wheat
supplement and special aid
Sheep and goats Title IV, Chapter 11 of this
Regulation (***) (*****)Ewe and she-goat premium,
supplementary premium and
certain additional payments
Beef and veal Title IV, Chapter 12 of this
Regulation (*****)Special premium (***), desea-
sonalisation premium, suckler
cow premium (including when
paid for heifers and including
the additional national suckler
cow premium when co-
financed) (***), slaughter
premium (***), extensification
payment, additional payments
Grain legumes Title IV, Chapter 13 of this
Regulation (*****)Area aid
Specific types of farming and
quality productionArticle 69 of this Regula-
tion (****)
Dried fodder Article 71(2) second subpara-
graph of this Regula-
tion (*****)
Small farmers' scheme Article 2a Regulation (EC)
No 1259/1999Transitional area aid for farmers
receiving less than EUR 1 250
Olive oil Article 5(1) Regulation 136/
66/EECProduction aid
Silkworms Article 1 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 aid2003R1782 — EN — 01.05.2004 — 001.001 — 81
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Sector Legal base Notes
Tobacco Article 3 Regulation (EE) No
2075/92Production aid
Hops Article 12 Regulation (EEC)
No 1696/71 Regulation (EEC)
No 1098/98Area aid payments for
temporary resting only
POSEIDOM Articles 9 (**) (*****), 12(2)
and 16 Regulation (EC) No
1452/2001Sectors: beef and veal; sugar;
green vanilla
POSEIMA Articles 13 (**) (*****), 16,
17 and 28(1), 21, 22 (2) to
(4) (**) (*****) and (7), 27,
29 and 30 (1), (2) and (4)
Regulation (EC) No 1453/
2001Sectors: beef and veal; milk;
potatoes; sugar; wicker; pineap-
ples, tobacco, seed potatoes,
chicory and tea
POSEICAN Articles 5 (**) (*****), 9 and
14 Regulation (EC) No 1454/
2001Sectors: beef and veal, sheep
and goat; potatoes
Aegean Islands Articles 6 (**) (*****), 8, 11
and 12 Regulation (EEC) No
2019/93Sectors: beef and veal; potatoes;
olives; honey
(*) Starting from 1 January 2005 or later in the case of application of Article 71. For 2004, or later on in case
of application of Article 71, the direct payments listed in Annex VI are included in Annex I except dried
fodder.
(**) In case of application of Article 70.(***) In case of application of Articles 66, 67, 68.(****) In case of application of Article 69.(*****) In case of application of Article 71.2003R1782 — EN — 01.05.2004 — 001.001 — 82
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ANNEX II
National ceilings referred to in Article 12(2)
(millions of euro)
Member State 2005 2006 2007 2008 2009 2010 2011 2012
Belgium 4,7 6,2 7,7 7,7 7,7 7,7 7,7 7,7
Denmark 7,7 10,3 12,9 12,9 12,9 12,9 12,9 12,9Germany 40,4 54,6 68,3 68,3 68,3 68,3 68,3 68,3Greece 40,4 53,9 67,4 67,4 67,4 67,4 67,4 67,4
Spain 55,1 74,3 92,9 92,9 92,9 92,9 92,9 92,9
France 51,4 68,7 85,9 85,9 85,9 85,9 85,9 85,9Ireland 15,3 20,4 25,5 25,5 25,5 25,5 25,5 25,5Italy 62,3 83,7 104,6 104,6 104,6 104,6 104,6 104,6
Luxembourg 0,2 0,3 0,4 0,4 0,4 0,4 0,4 0,4
Netherlands 6,8 9,2 11,5 11,5 11,5 11,5 11,5 11,5Austria 12,4 17,1 21,3 21,3 21,3 21,3 21,3 21,3Portugal 11,3 15,4 19,2 19,2 19,2 19,2 19,2 19,2
Finland 8,0 10,8 13,6 13,6 13,6 13,6 13,6 13,6
Sweden 6,6 8,8 11,0 11,0 11,0 11,0 11,0 11,0United Kingdom 17,7 23,6 29,5 29,5 29,5 29,5 29,5 29,52003R1782 — EN — 01.05.2004 — 001.001 — 83
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ANNEX III
Statutory management requirements referred to in Articles 3 and 4
A. Applicable from 1.1.2005
Environment
1. Council Directive 79/409/EEC of 2 April 1979 on the conservation
of wild birds (OJ L 103, 25.4.1979, p. 1)Articles 3, 4(1), (2),
(4), 5, 7 and 8
2. Council Directive 80/68/EEC of 17 December 1979 on the protection
of groundwater against pollution caused by certain dangerous
substances (OJ L 20, 26.1.1980, p. 43)Articles 4 and 5
3. Council Directive 86/278/EEC of 12 June 1986 on the protection of
the environment, and in particular of the soil, when sewage sludge is
used in agriculture (OJ L 181, 4.7.1986, p. 6)Article 3
4. Council Directive 91/676/EEC of 12 December 1991 concerning the
protection of waters against pollution caused by nitrates from agri-
cultural sources (OJ L 375, 31.12.1991, p. 1)Articles 4 and 5
5. Council Directive 92/43/EEC of 21 May 1992 on the conservation of
natural habitats and of wild flora and fauna (OJ L 206, 22.7.1992, p.
7)Articles 6, 13, 15, and
22(b)
Public and animal health
Identification and registration of animals
6. Council Directive 92/102/EEC of 27 November 1992 on identifica-
tion and registration of animals (OJ L 355, 5.12.1992, p. 32)Articles 3, 4 and 5
7. Commission Regulation (EC) No 2629/97 of 29 December 1997
laying down detailed rules for the implementation of Council Regu-
lation (EC) No 820/97 as regards eartags, holding registers and
passports in the framework of the system for the identification and
registration of bovine animals (OJ L 354, 30.12.1997, p. 19)Articles 6 and 8
8. Regulation (EC) No 1760/2000 of the European Parliament and of
the Council of 17 July 2000 establishing a system for the identifica-
tion and registration of bovine animals and regarding the labelling of
beef and beef products and repealing Council Regulation (EC) No
820/97 (OJ L 204, 11.8.2000, p. 1)Articles 4 and 7
B. Applicable from 1.1.2006
Public, animal and plant health
9. Council Directive 91/414/EEC of 15 July 1991 concerning the
placing of plant protection products on the market (OJ L 230,
19.8.1991, p. 1)Article 3
10. Council Directive 96/22/EC of 29 April 1996 concerning the prohi-
bition on the use in stockfarming of certain substances having a
hormonal or thyrostatic action and of beta-agonists, and repealing
Directives 81/602/EEC, 88/146/EEC and 88/299/EEC (OJ L 125,
23.5.1996, p. 3)Articles 3, 4, 5 and 7
11. Regulation (EC) No 178/2002 of the European Parliament and of the
Council of 28 January 2002 laying down the general principles and
requirements of food law, establishing the European Food Safety
Authority and laying down procedures in matters of food safety (OJ
L 31, 1.2.2002, p. 1)Articles 14, 15, 17(1),
18, 19 and 20
12. Regulation (EC) No 999/2001 of the European Parliament and of the
Council of 22 May 2001 laying down rules for the prevention,
control and eradication of certain transmissible spongiform encepha-
lopathies (OJ L 147, 31.5.2001, p. 1)Articles 7, 11, 12, 13
and 152003R1782 — EN — 01.05.2004 — 001.001 — 84
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Notification of diseases
13. Council Directive 85/511/EEC of 18 November 1985 introducing
Community measures for the control of foot-and-mouth disease (OJ
L 315, 26.11.1985, p. 11)Article 3
14. Council Directive 92/119/EEC of 17 December 1992 introducing
general Community measures for the control of certain animal
diseases and specific measures relating to swine vesicular disease
(OJ L 62, 15.3.1993, p. 69)Article 3
15. Council Directive 2000/75/EC of 20 November 2000 laying down
specific provisions for the control and eradication of bluetongue (OJ
L 327, 22.12.2000, p. 74)Article 3
C. Applicable from 1.1.2007
Animal welfare
16. Council Directive 91/629/EEC of 19 November 1991 laying down
minimum standards for the protection of calves (OJ L 340,
11.12.1991, p. 28)Articles 3 and 4
17. Council Directive 91/630/EEC of 19 November 1991 laying down
minimum standards for the protection of pigs (OJ L 340, 11.12.1991,
p. 33)Articles 3 and 4(1)
18. Council Directive 98/58/EC of 20 July 1998 concerning the protec-
tion of animals kept for farming purposes (OJ L 221, 8.8.1998, p.
23)Article 42003R1782 — EN — 01.05.2004 — 001.001 — 85
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ANNEX IV
Good agricultural and environmental condition referred to in Article 5
Issue Standards
Soil erosion:
Protect soil through appropriate
measures— Minimum soil cover
— Minimum land management
reflecting site-specific conditions
— Retain terraces
Soil organic matter:
Maintain soil organic matter levels
through appropriate practices— Standards for crop rotations where
applicable
— Arable stubble management
Soil structure:
Maintain soil structure through appro-
priate measures— Appropriate machinery use
Minimum level of maintenance:
Ensure a minimum level of mainte-
nance and avoid the deterioration of
habitats— Minimum livestock stocking rates
or/and appropriate regimes
— Protection of permanent pasture— Retention of landscape features— Avoiding the encroachment of
unwanted vegetation on agricul-
tural land2003R1782 — EN — 01.05.2004 — 001.001 — 86
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ANNEX V
Compatible support schemes referred to in Article 26
Sector Legal base Notes
Dried grapes Article 7(1) Regulation (EC) No 2201/96 Area-related aid
Tobacco Article 3 Regulation (EEC) No 2075/92 Production aid
Hops Article 12 Regulation (EEC) No 1696/71
Regulation (EC) No 1098/98Area-related aid
Payments for
temporary resting and
grubbing-up
Agri-environment Title II, chapter VI (Articles 22 to 24) and
Article 55(3) Regulation (EC) No 1257/1999Area-related aid
Forestry Article 31 and Article 55(3) Regulation (EC)
No 1257/1999Area-related aid
Less-favoured areas
and areas with envir-
onmental restrictionsTitle II, chapter V (Articles 13 to 21) and
Article 55(3) Regulation (EC) No 1257/1999Area-related aid
Olive oil Article 5(1) Regulation No 136/66/EEC Production aid
Cotton Article 8 Regulation (EC) No 1554/95 Production aid
Dried fodder Articles 10 and 11 Regulation (EC) No 603/95 Production aid
Citrus for processing Article 1 Regulation (EC) No 2202/96 Production aid
Tomatoes for proces-
singArticle 2 Regulation (EC) No 2201/96 Production aid
Wine Articles 11 to 15 Regulation (EC) No 1493/
1999Restructuring aid2003R1782 — EN — 01.05.2004 — 001.001 — 87
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ANNEX VI
List of direct payments in relation to the single payment referred to in Article 33
Sector Legal base Notes
Arable crops Articles 2, 4 and 5 Regulation (EC)
No 1251/1999Area aid, including set-aside payments,
grass silage payments, supplementary
amounts (1), durum wheat supplement
and special aid
Potato starch Article 8(2) Regulation (EEC) No
1766/92Payment for farmers producing pota-
toes intended for the manufacture of
potato starch
Grain legumes Article 1 Regulation (EC) No 1577/
96Area aid
Rice Article 6 Regulation (EC) No 3072/
95Area aid
Seeds (1) Article 3 Regulation (EEC) No
2358/71Production aid
Beef and veal Articles 4, 5, 6, 10, 11, 13 and 14
Regulation (EC) No 1254/1999Special premium, deseasonalisation
premium, suckler cow premium(including when paid for heifers and
including the additional national
suckler cow premium when co-
financed), slaughter premium, extensi-
fication payment, additional payments
Milk and dairy
productsTitle IV Chapter 7 of this Regulation Dairy premium and additional
payments (
2)
Sheep and goats Article 5 Regulation (EC) No 2467/
98, Article 1 Regulation (EEC) No
1323/90, Articles 4, 5 and 11(1) and
(2) 1st, 2nd and 4th indent Regula-
tion (EC) No 2529/2001Ewe and she-goat premium, supple-
mentary premium and certain addi-
tional payments
POSEIDOM (1) Article 9(1)(a) and (b) Regulation
(EC) No 1452/2001Sectors: beef and veal
POSEIMA (1) Articles 13(2) and (3), 22(2) and (3)
Regulation (EC) No 1453/2001Sectors: beef and veal
POSEICAN (1) Article 5(2) and (3), 6(1) and (2)
Regulation (EC) No 1454/2001Sectors: beef and veal; sheep and goats
Aegean Islands (1) Article 6(2) and (3) Regulation
(EEC) No 2019/93Sectors: beef and veal
Dried fodder Article 3 Regulation (EEC) No 603/
95Payment for processed products (as
applied according to Annex VII point
D of this Regulation)
(1) Except in case of application of Article 70.
(2) Starting from 2007, except in case of application of Article 62.2003R1782 — EN — 01.05.2004 — 001.001 — 88
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ANNEX VII
Calculation of the reference amount referred to in Article 37
A. Area aids
1. Where a farmer has received area aids, the number of hectares, to two
decimal places, for which a payment has been granted, respectively, in
each year of the reference period, shall be multiplied by the following
amounts:
1.1. For cereals, including durum wheat, oilseeds, protein crops, linseed, flax
and hemp grown for fibre, grass silage and set-aside:
— EUR 63/t multiplied by the yield as provided for in Article 4(2) of
Regulation (EC) No 1251/1999 determined in the regionalisation plan
for the region concerned applicable in the calendar year 2002.
This point shall apply without prejudice to the provisions laid down by
Member States in application of Article 6(6) of Regulation (EC) No 1251/
1999.
By way of derogation from Article 38, for flax and hemp, the average shall
be calculated on the basis of the number hectares for which a payment was
granted in the calendar year 2001 and 2002.
1.2. For rice:
— EUR 102/t multiplied by the following average yields:
Member States Yields (t/ha)
Spain 6,35
France
— Metropolitan territory 5,49
— French Guyana 7,51
Greece 7,48
Italy 6,04
Portugal 6,05
1.3. For grain legumes:
— for lentils and chick peas, EUR 181/ha
— for vetches, respectively, EUR 175,02/ha in 2000, EUR 176,60/ha in
2001 and EUR 150,52/ha in 2002.
2. Where a farmer has received durum wheat supplement or special aid, the
number of hectares, to two decimal places, for which such a payment has
been granted, respectively, in each year of the reference period, shall be
multiplied by the following amounts:
In the zones listed in Annex II of Regulation (EC) No 1251/1999 and in
Annex IV of Regulation (EC) No 2316/1999:
— EUR 291/ha for the single payment to be granted for the calendar year
2005,
— EUR 285/ha for the single payment to be granted for the calendar year
2006 and subsequent calendar years.
In the zones listed in Annex V of Regulation (EC) No 2316/1999:
— EUR 46/ha for the single payment to be granted for the calendar year
2005.
3. For the purpose of the preceding points, ‘number of hectares’ shall mean
the determined number of hectares corresponding to each different type of
area aid listed in Annex VI of this Regulation, for which all the conditions
laid down in the rules for the granting of the aid have been met, taking into
account the application of Articles 2(4) and 5 of Regulation (EC) No 1251/
1999. In case of rice, by way of derogation to Article 6(5) of Council
Regulation (EC) No 3072/95, where the areas given over to rice in one
Member State in the reference period exceeded its Maximum Guaranteed
Area for this period, the amount per hectare shall be reduced proportion-
ally.2003R1782 — EN — 01.05.2004 — 001.001 — 89
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B. Potato starch payment
Where a farmer has received potato starch payment, the amount shall be calcu-
lated by multiplying the number of tonnes for which such a payment has been
granted, respectively, in each year of the reference period, by EUR 44,22 per
tonne of potato starch. Member states shall calculate the number of hectares to
be included in calculation of the single payment proportionately to the number
of tonnes of potato starch produced for which the aid provided for in Article
8(2) of Regulation (EEC) No 1766/92 has been granted, respectively, in each
year of the reference period, and within the limits of a base area to be fixed by
the Commission on the basis of the number of hectares, covered by a cultivation
contract in the reference period, communicated by Member States.
C. Livestock premiums and supplements
Where a farmer has received livestock premiums and/or supplements, the
amount shall be calculated by multiplying the number of determined animals
for which such a payment has been granted, respectively, in each year of the
reference period, by the amounts per head established for the calendar year
2002 by the corresponding Articles referred to in Annex VI, taking into account
the application of Article 4(4), Article 7(2) and Article 10(1) of Regulation (EC)
No 1254/1999 or Article 8(3) of Regulation (EC) No 2529/2001.
By way of derogation from Article 38, for sheep and goat additional payments
granted on the basis of Article 11(2) first, second and fourth indent of Regula-
tion (EC) No 2529/2001, the average shall be calculated on the basis of the
number of animals for which the payment has been granted in the calendar
year 2002.
However, the payments under Article 4(2) second subparagraph of Regulation
(EC) No 1254/1999, shall not be taken into account.
Moreover, by way of derogation from Article 38, in case of application of
Article 32(11) and (12) of Commission Regulation (EC) No 2342/1999 and
Article 4 of Commission Regulation (EC) No 1458/2001, the number of
animals, for which a payment was granted in the year during which such
measures were applied, to be taken into account for the calculation of the refer-
ence amount, shall not be higher than the average of the number of animals for
which a payment was granted in the year/years during which such measures
were not applied.
D. Dried fodder
When a farmer has delivered fodder under a contract as provided for in Article
9(c) of Regulation (EC) No 603/95 or a declaration of areas as under Article 10
of the same Regulation, Member States shall calculate the amount to be
included in the reference amount proportionately to the number of tonnes of
dried fodder produced for which the aid provided for in Article 3 of that Regu-
lation has been granted, respectively, in each year of the reference period, and
within the limits of the following ceilings expressed in EUR millions:
Member StateCeiling for fodder
processed into the
products referred to in
Article 3(2) of Regula-
tion (EC) No 603/95
(dehydrated fodder)Ceiling for fodder
processed into the
products referred to in
Article 3(3) of Regula-
tion (EC) No 603/95
(sun-dried fodder)Total
ceiling
UEBL 0,049 0,049
Denmark 5,424 5,424
Germany 11,888 11,888
Greece 1,101 1,101
Spain 42,124 1,951 44,075
France 41,155 0,069 41,224
Ireland 0,166 0,166Italy 17,999 1,586 19,585
Netherlands 6,804 6,804
Austria 0,070 0,070
Portugal 0,102 0,020 0,1222003R1782 — EN — 01.05.2004 — 001.001 — 90
▼B
Member StateCeiling for fodder
processed into the
products referred to in
Article 3(2) of Regula-
tion (EC) No 603/95
(dehydrated fodder)Ceiling for fodder
processed into the
products referred to in
Article 3(3) of Regula-
tion (EC) No 603/95
(sun-dried fodder)Total
ceiling
Finland 0,019 0,019
Sweden 0,232 0,232
United
Kingdom1,950 1,950
Member States shall calculate the number of hectares to be included in calcula-
tion of the reference amounts proportionately to the number of tonnes of dried
fodder produced for which the aid provided for in Article 3 of Regulation (EC)
No 603/95 has been granted, respectively, in each year of the reference period,
and within the limits of a base area to be fixed by the Commission on the basis
of the number of hectares, covered by a cultivation contract or a declaration of
areas in the reference period, communicated by Member States.
E. Regional aids
In the regions concerned, the following amounts shall be included in the calcu-
lation of the reference amount:
— EUR 24/t multiplied by the yields utilised for the area payments for cereals,
oilseeds, linseed and flax and hemp grown for fibre in the regions indicated
in Article 4(4) of Regulation (EC) No 1251/1999;
— the amount per head as provided for in Article 9(1)(a) and (b) of Regulation
(EC) No 1452/2001, Articles 13(2) and (3), 22(2) and (3) of Regulation (EC)
No 1453/2001, Article 5(2) and (3), 6(1) and (2) of Regulation (EC) No
1454/2001, multiplied by the number of animals for which such a payment
has been granted in 2002;
— the amount per head as provided for in Article 6(2) and (3) of Regulation
(EEC) No 2019/93 multiplied by the number of animals for which such a
payment has been granted in 2002.
F. Seed aids
Where a farmer has received seed production aid, the amount shall be calculated
by multiplying the number of tonnes for which such a payment has been
granted, respectively, in each year of the reference period, by the amount per
tonne established in application of Article 3 of Regulation (EEC) No 2358/71.
Member States shall calculate the number of hectares to be included in calcula-
tion of the single payment proportionately to area accepted for certification for
which the aid provided for in Article 3 of Regulation (EEC) No 2358/71 has
been granted, respectively, in each year of the reference period, and within the
limits of a base area to be fixed by the Commission on the basis of the total area
accepted for certification as communicated to the Commission according to
Regulation (EEC) No 3083/73. This total area shall not include the areaaccepted for certification for rice ( Oryza sativa L. ), spelt ( Triticum spelta L. ),
and fibre and oil flax ( Linum usitatissimum L. ) and hemp ( Cannabis sativa L. )
that already has been declared for arable crops.2003R1782 — EN — 01.05.2004 — 001.001 — 91
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ANNEX VIII
National ceilings referred to in Article 41
(millions of euro)
Member State 2005 20062007
subsequent years
Belgium 411 411 528
Denmark 838 838 996Germany 4 479 4 479 5 468
Greece 837 834 856
Spain 3 244 3 240 3 438France 7 199 7 195 8 055Ireland 1 136 1 136 1 322
Italy 2 539 2 530 2 882
Luxembourg 27 27 37Netherlands 386 386 779Austria 613 613 711Portugal 452 452 518
Finland 467 467 552
Sweden 612 612 729United Kingdom 3 350 3 350 3 8682003R1782 — EN — 01.05.2004 — 001.001 — 92
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ANNEX VIIIA
National ceilings referred to in Article 71c
The ceilings have been calculated taking account of the schedule of increments provided for in Article
143a, and therefore do not need to be reduced.
(EUR million)
Calendar
yearCzech
Repub-
licEstoni-
aCyprus LatviaLithu-
aniaHung-
aryMalta PolandSlove-
niaSlova-
kia
2005 227,9 23,4 8,9 33,9 92,0 350,8 0,67 724,3 35,5 97,6
2006 265,7 27,3 10,4 39,6 107,3 408,7 0,78 845,0 41,4 113,6
2007 342,4 40,4 13,9 55,6 146,9 495,1 1,59 1 098,8 55,5 144,5
2008 427,8 50,5 17,4 69,5 183,6 618,5 1,99 1 373,4 69,4 180,5
2009 513,2 60,5 20,9 83,4 220,3 741,9 2,38 1 648,0 83,3 216,6
2010 598,5 70,6 24,4 97,3 257,0 865,2 2,78 1 922,5 97,2 252,6
2011 683,9 80,7 27,8 111,2 293,7 988,6 3,18 2 197,1 111,0 288,6
2012 769,3 90,8 31,3 125,1 330,4 1 111,9 3,57 2 471,7 124,9 324,6
subsequent
years854,6 100,9 34,8 139,0 367,1 1 235,3 3,97 2 746,3 138,8 360,62003R1782 — EN — 01.05.2004 — 001.001 — 93
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ANNEX IX
List of arable crops referred to in Article 66
CN code Description
I. CEREALS
1001 10 00 Durum wheat
1001 90 Other wheat and meslin other than durum wheat
1002 00 00 Rye
1003 00 Barley1004 00 00 Oats
1005 Maize
1007 00 Grain sorghum
1008 Buckwheat, millet and canary seed; other cereals
0709 90 60 Sweet corn
II. OILSEEDS
1201 00 Soya beans
ex 1205 00 Rape seed
ex 1206 00 10 Sunflower seed
III. PROTEIN CROPS
0713 10 Peas
0713 50 Field beans
ex 1209 29 50 Sweet lupins
IV. FLAX
ex 1204 00 Linseed ( Linum usitatissimum L.)
ex 5301 10 00 Flax, raw or retted, grown for fibre ( Linum usitatis-
simum L.)
V. HEMP
ex 5302 10 00 Hemp, raw or retted, grown for fibre ( Cannabis
sativa L.)2003R1782 — EN — 01.05.2004 — 001.001 — 94
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ANNEX X
Traditional production zones for durum wheat as referred to in Article 74
GREECE
Nomoi (prefectures) of the following regionsCentral Greece
Peloponnese
Ionian IslandsThessalyMacedoniaAegean IslandsThrace.
SPAIN
Provinces
Almería
BadajozBurgosCádizCórdobaGranadaHuelvaJaénMàlagaNavarraSalamanca
Sevilla
ToledoZamoraSaragossa
AUSTRIA
Pannonia:
1.Gebiete der Bezirksbauernkammern (Areas covered by District Farmers'
Boards)
2046 Tullnerfeld-Klosterneuburg
2054 Baden2062 Bruck/Leitha-Schwechat2089 Baden2101 Gänserndorf2241 Hollabrunn2275 Tullnerfeld-Klosterneuburg2305 Korneuburg2321 Mistelbach2330 Krems/Donau2364 Gänserndorf2399 Mistelbach2402 Mödling2470 Mistelbach2500 Hollabrunn
2518 Hollabrunn
2551 Bruck/Leitha-Schwechat2003R1782 — EN — 01.05.2004 — 001.001 — 95
▼B
2577 Korneuburg
2585 Tullnersfeld-Klosterneuburg
2623 Wr. Neustadt
2631 Mistelbach2658 Gänserndorf
2.Gebiete der Bezirksreferate (Areas covered by District Divisions)
3018 Neusiedl/See
3026 Eisenstadt3034 Mattersburg3042 Oberpullendorf
3.Gebiete der Landwirtschaftskammer (Areas covered by the Chamber of Agri-
culture)
1007 Wien
FRANCE
Regions
Midi-Pyrénées
Provence-Alpes-Côte d'AzurLanguedoc-Roussillon
Departments (*)
Ardèche
Drôme
ITALY
RegionsAbruzzo
BasilicataCalabriaCampaniaLatiumMarchesMoliseUmbriaApuliaSardinia
Sicily
Tuscany
PORTUGAL
DistrictsSantarém
LisbonSetúbalPortalegreÉvoraBejaFaro2003R1782 — EN — 01.05.2004 — 001.001 — 96
(*) Each of these departments may be linked to one of the abovementioned regions.
▼M1
CYPRUS
HUNGARY
RegionsDél Dunamenti síkság
Dél-DunántúlKözép-Alföld
Mezőföld
Berettyo-K őrös-Maros vidéke
Györi medence
Hajdúság2003R1782 — EN — 01.05.2004 — 001.001 — 97
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ANNEX XI
List of seed species referred to in Article 99
(EUR/100 kg)
CN code Description Amount of aid
1. Ceres
1001 90 10 Triticum spelta L. 14,37
1006 10 10 Oryza sativa L. (1)
— long-grain varieties the grains of which are of a
length exceeding 6,0 millimetres and of a length/width
ratio of more than or equal to 317,27
— other varieties the grains of which are of a length
exceeding, not exceeding or equal to 6,0 millimetres
and of a length/width ratio of less than 314,85
2. Oleagineae
ex 1204 00 10 Linum usitatissimum L. (fibre flax) 28,38
ex 1204 00 10 Linum usitatissimum L. (linseed) 22,46
ex 1207 99 10 Cannabis sativa L. (2) (varieties with a tetrahydrocan-
nabinol content not exceeding 0,2 %)20,53
3. Gramineae
ex 1209 29 10 Agrostis canina L. 75,95
ex 1209 29 10 Agrostis gigantea Roth. 75,95
ex 1209 29 10 Agrostis stolonifera L. 75,95
ex 1209 29 10 Agrostis capillaris L. 75,95
ex 1209 29 80 Arrhenatherum elatius (L.) P. Beauv. ex J.S. and K.B.
Prest.67,14
ex 1209 29 10 Dactylis glomerata L. 52,77
ex 1209 23 80 Festuca arundinacea Schreb. 58,93
ex 1209 23 80 Festuca ovina L. 43,59
1209 23 11 Festuca pratensis Huds. 43,59
1209 23 15 Festuca rubra L. 36,83
ex 1209 29 80 Festulolium 32,36
1209 25 10 Lolium multiflorum Lam. 21,13
1209 25 90 Lolium perenne L. 30,99
ex 1209 29 80 Lolium x boucheanum Kunth 21,13
ex 1209 29 80 Phleum Bertolinii (DC) 50,96
1209 26 00 Phleum pratense L. 83,56
ex 1209 29 80 Poa nemoralis L. 38,88
1209 24 00 Poa pratensis L. 38,52
ex 1209 29 10 Poa palustris and Poa trivialis L. 38,88
4. Leguminosae
ex 1209 29 80 Hedysarum coronarium L. 36,47
ex 1209 29 80 Medicago lupulina L. 31,88
ex 1209 21 00 Medicago sativa L. (ecotypes) 22,10
ex 1209 21 00 Medicago sativa L. (varieties) 36,59
ex 1209 29 80 Onobrichis viciifolia Scop. 20,04
ex 0713 10 10 Pisum sativum L. (partim) (field peas) 0
ex 1209 22 80 Trifolium alexandrinum L. 45,76
ex 1209 22 80 Trifolium hybridum L. 45,892003R1782 — EN — 01.05.2004 — 001.001 — 98
▼B
(EUR/100 kg)
CN code Description Amount of aid
ex 1209 22 80 Trifolium incarnatum L. 45,76
1209 22 10 Trifolium pratense L. 53,49
ex 1209 22 80 Trifolium repens L. 75,11
ex 1209 22 80 Trifolium repens L. var. giganteum 70,76
ex 1209 22 80 Trifolium resupinatum L. 45,76
ex 0713 50 10 Vicia faba L. (partim) (field beans) 0
ex 1209 29 10 Vicia sativa L. 30,67
ex 1209 29 10 Vicia villosa Roth. 24,03
(1) Grain measurements are taken on wholly milled rice by the following method:
(i) take a sample representative of the batch;
(ii) sieve the sample so as to retain only whole grains, including immature grains;
(iii) carry out two measurements of 100 grains each and work out the average;
(iv) express the results in millimetres, rounded off to one decimal place.
(2) The tetrahydrocannabinol (THC) content of a variety is determined by analysing a sample maintained at constant
weight. The weight of THC in relation to the weight of the sample must - for the purposes of granting the aid -not be greater than 0,2 %. The sample is to consist of the upper third of a representative number of plants
selected at random at the end of their flowering period and with stalks and seeds removed.2003R1782 — EN — 01.05.2004 — 001.001 — 99
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ANNEX XIA
Seed aid ceilings in the new Member States referred to in Article 99(3)
(EUR million)
Calendar
yearCzech
Repub-
licEstoni-
aCyprus LatviaLithu-
aniaHung-
aryMalta PolandSlove-
niaSlova-
kia
2005 0,87 0,04 0,03 0,10 0,10 0,78 0,03 0,56 0,08 0,04
2006 1,02 0,04 0,03 0,12 0,12 0,90 0,03 0,65 0,10 0,04
2007 1,17 0,05 0,04 0,14 0,14 1,03 0,04 0,74 0,11 0,05
2008 1,46 0,06 0,05 0,17 0,17 1,29 0,05 0,93 0,14 0,06
2009 1,75 0,07 0,06 0,21 0,21 1,55 0,06 1,11 0,17 0,072010 2,04 0,08 0,07 0,24 0,24 1,81 0,07 1,30 0,19 0,08
2011 2,33 0,10 0,08 0,28 0,28 2,07 0,08 1,48 0,22 0,09
2012 2,62 0,11 0,09 0,31 0,31 2,33 0,09 1,67 0,25 0,11
subsequent
years2,91 0,12 0,10 0,35 0,35 2,59 0,10 1,85 0,28 0,122003R1782 — EN — 01.05.2004 — 001.001 — 100
▼M1
ANNEX XIB
National arable crops base areas and reference yields in the new Member
States referred to in Articles 101 and 103
Base area
(hectares)Reference yields
(t/ha)
Czech Republic 2 253 598 4,20
Estonia 362 827 2,40
Cyprus 79 004 2,30
Latvia 443 580 2,50
Lithuania 1 146 633 2,70
Hungary 3 487 792 4,73
Malta 4 565 2,02
Poland 9 454 671 3,00
Slovenia 125 171 5,27
Slovakia 1 003 453 4,062003R1782 — EN — 01.05.2004 — 001.001 — 101