1999R1257 — EN — 03.07.1999 — 000.001 — 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 1257/1999
of 17 May 1999
on support for rural development from the European Agricultural Guidance and Guarantee Fund
(EAGGF)and amending and repealing certain Regulations
(OJ L 160, 26.6.1999, p. 80)
Corrected by:
►C1 Corrigendum, OJ L 302, 1.12.2000, p. 72 (1257/1999)
▼B
COUNCIL REGULATION (EC)No 1257/1999
of 17 May 1999
on support for rural development from the European Agricultural
Guidance and Guarantee Fund (EAGGF)and amending and
repealing certain Regulations
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, andin particular Articles 36 and 37 thereof,
Having regard to the proposal from the Commission (
1),
Having regard to the opinion of the European Parliament (2),
Having regard to the opinion of the Economic and Social Committee (3),
Having regard to the opinion of the Committee of the Regions (4),
Having regard to the opinion of the Court of Auditors (5),
(1) Whereas a common rural development policy should accompany
and complement the other instruments of the common agriculturalpolicy and thus contribute to the achievement of the policy'sobjectives as laid down in Article 33(1) of the Treaty;
(2) Whereas, according to Article 33(2)(a) of the Treaty, in workingout the common agricultural policy and the special methods for its
application, account is to be taken of the particular nature of
agricultural activity which results from the social structure ofagriculture and from structural and natural disparities between thevarious agricultural regions;
(3) Whereas, according to Article 159 of the Treaty, the implementa-tion of the common policies is to take into account the objectivesset out in Articles 158 and 160 for the common policy ofeconomic and social cohesion and contribute to their achieve-
ment; whereas rural development measures should, therefore,
contribute to this policy in regions whose development is laggingbehind (Objective 1) and regions facing structural difficulties(Objective 2) as defined in Council Regulation (EC) No 1260/1999, of 21 June 1999 laying down general provisions on the
Structural Funds (
6);
(4) Whereas measures designed to support the improvement ofagricultural structures were introduced into the common agricul-
tural policy as early as 1972; whereas for almost two decades,attempts have been made to integrate agricultural structural policyinto the wider economic and social context of rural areas; whereasthe 1992 policy reform stressed the environmental dimension of
agriculture as the largest land user;
(5) Whereas rural policy is currently carried out through a range ofcomplex instruments;
(6) Whereas over the coming years, agriculture will have to adapt tonew realities and further changes in terms of market evolution,
market policy and trade rules, consumer demand and preferencesand the Community's next enlargement; whereas these changeswill affect not only agricultural markets but also local economiesin rural areas in general; whereas a rural development policy
should aim at restoring and enhancing the competitiveness of
rural areas and, therefore, contribute to the maintenance andcreation of employment in those areas;1999R1257 — EN — 03.07.1999 — 000.001 — 2
(1) OJ C 170, 4.6.1998, p. 7.
(2) Opinion delivered on 6 May 1999 (not yet published in the Official Journal).
(3) OJ C 407, 28.12.1998, p. 210.
(4) OJ C 93, 6.4.1999, p. 1.
(5) OJ C 401, 22.12.1998, p. 3.
(6) OJ L 161, 26.6.1999, p. 1.
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(7) Whereas these developments should be encouraged and supported
by reorganisation and simplification of the existing rural
development instruments;
(8) Whereas such reorganisation should take into account theexperience gained in applying existing instruments and thus be
based on those instruments, which are those implemented under
the current priority objectives promoting rural development byspeeding up the adjustment of agricultural structures in theframework of the reform of the common agricultural policy andfacilitating the development and structural adjustment of rural
areas (Objectives 5a and 5b), as laid down in Council Regulation
(EEC) No 2052/88 of 24 June 1988 on the tasks of the StructuralFunds and their effectiveness and on coordination of theiractivities between themselves and with the operations of theEuropean Investment Bank and the other existing financialinstruments (
1) and Council Regulation (EEC) No 4256/88 of 19
December 1988 laying down provisions for implementing
Regulation (EEC) No 2052/88 as regards the European Agricul-tural Guidance and Guarantee Fund (EAGGF) GuidanceSection (
2), and those introduced as accompanying measures to
the 1992 common agricultural policy reform by Council
Regulation (EEC) No 2078/92 of 30 June 1992 on agricultural
production methods compatible with the requirements of theprotection of the environment and the maintenance of thecountryside (
3), Council Regulation (EEC) No 2079/92 of 30
June 1992 instituting a Community aid scheme for earlyretirement from farming (
4) and Council Regulation (EEC)
No 2080/92 of 30 June 1992 instituting a Community aid scheme
for forestry measures in agriculture (5);
(9) Whereas the framework of a reformed rural development policy
should cover all rural areas in the Community;
(10) Whereas the three existing accompanying measures introduced by
the 1992 reform of the common agricultural policy (agri-environment, early retirement and afforestation) should be
supplemented by the scheme for less-favoured areas and areas
with environmental restrictions;
(11) Whereas other rural development measures should form part of
integrated development programmes for Objective 1 and may
form part of programmes for Objective 2 regions;
(12) Whereas in rural areas, rural development measures shouldaccompany and complement market policies;
(13) Whereas support from the EAGGF for rural development shouldbe based on a single legal framework establishing measureseligible for support, their objectives and criteria for eligibility;
(14) Whereas, given the diversity of the Community's rural areas, ruraldevelopment policy should follow the principle of subsidiarity;whereas it should therefore, be as decentralised as possible andemphasis must be on participation and a ‘bottom up’ approach;
whereas, therefore, eligibility criteria for rural development
support should not go beyond what is necessary to achieve theobjectives of rural development policy;1999R1257 — EN — 03.07.1999 — 000.001 — 3
(1) OJ L 185, 15.7.1988, p. 9. Regulation as last amended by Regulation (EC)
No 3193/94 (OJ L 337, 24.12.1994, p. 11).
(2) OJ L 374, 31.12.1988, p. 25. Regulation as last amended by Regulation
(EEC) No 2085/93 (OJ L 193, 31.7.1993, p. 44).
(3) OJ L 215, 30.7.1992, p. 85. Regulation as last amended by Commission
Regulation (EC) No 2272/95 (OJ L 288, 1.12.1995, p. 35). Regulation
rectified by Commission Regulation (EC) No 1962/96 (OJ L 259, 12.10.1996,p. 7).
(
4) OJ L 215, 30.7.1992, p. 91. Regulation as amended by Commission
Regulation (EC) No 2773/95 (OJ L 288, 1.12.1995, p. 37).
(5) OJ L 215, 30.7.1992, p. 96. Regulation as last amended by Commission
Regulation (EC) No 231/96 (OJ L 30, 8.2.1996, p. 33).
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(15) Whereas consistency with other instruments of the common
agricultural policy and with other common policies requires,
however, basic support criteria to be laid down at Communitylevel; whereas, in particular, unjustified distortions of competitionresulting from rural development measures should be avoided;
(16) Whereas, in order to ensure flexibility and to simplify legislation,the Council should confer all necessary implementing powers onthe Commission in accordance with the third indent of Article 202of the Treaty;
(17) Whereas the structure of agriculture in the Community is typified
by the existence of a large number of holdings which lack the
structural conditions to ensure a fair income and living conditionsfor farmers and their families;
(18) Whereas the aim of Community investment aid is to moderniseagricultural holdings and to improve their viability;
(19) Whereas Community conditions concerning eligibility for invest-ment aid should be simplified as compared to the existingconditions laid down in Council Regulation (EC) No 950/97 of 20May 1997 on improving the efficiency of agricultural struc-
tures (
1);
(20) Whereas the granting of specific benefits to young farmers mayfacilitate not only their establishment but also the structural
adjustment of their holdings after their initial establishment;
(21) Whereas the evolution and specialisation of agriculture require anappropriate level of general, technical and economic training forpersons involved in agricultural and forestry activities, especiallyas regards new approaches to management, production andmarketing;
(22) Whereas a particular effort is needed to educate farmers in andinform them of agricultural methods compatible with the
environment;
(23) Whereas early retirement from farming should be encouraged in
order to improve the viability of agricultural holdings, taking intoaccount the experience acquired in the implementation ofRegulation (EEC) No 2079/92;
(24) Whereas support for less-favoured areas should contribute to thecontinued use of agricultural land, maintaining the countryside,maintenance and promotion of sustainable farming systems;
(25) Whereas less-favoured areas should be classified on the basis ofcommon criteria;
(26) Whereas there is no need for any further classification of less-favoured areas at Community level;
(27) Whereas conditions concerning eligibility for compensatoryallowances should be laid down in order to ensure the efficiency
of this support scheme and to ensure that its objectives are
achieved;
(28) Whereas for limitations on agricultural use in areas withenvironmental restrictions it might be necessary that support isgranted to farmers to solve their specific problems arising fromthese limitations;
(29) Whereas, in the coming years, a prominent role should be given toagri-environmental instruments to support the sustainable devel-
opment of rural areas and to respond to society's increasing
demand for environmental services;
(30) Whereas the existing agri-environmental support under Regula-tion (EEC) No 2078/92 should be continued for targetedenvironmental measures, taking into account experience gained1999R1257 — EN — 03.07.1999 — 000.001 — 4
(1) OJ L 142, 2.6.1997, p. 1. Regulation as amended by Regulation (EC)
No 2331/98 (OJ L 291, 30.10.1998, p. 10).
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in the implementation of this scheme as described in detail in the
Commission's report presented pursuant to Article 10(2) ofRegulation (EEC) No 2078/92;
(31) Whereas the agri-environmental aid scheme should continue toencourage farmers to serve society as a whole by introducing orcontinuing the use of farming practices compatible with theincreasing need to protect and improve the environment, natural
resources, soil and genetic diversity and to maintain the landscape
and the countryside;
(32) Whereas improvements in the processing and marketing ofagricultural products should be encouraged by support for
investments in that field;
(33) Whereas such support can largely be based on existing conditions
as currently laid down in Council Regulation (EC) No 951/97 of20 May 1997 on improving the processing and marketing
conditions for agricultural products (
1).
(34) Whereas it should be ensured that such investments are viable and
that farmers have a share in the economic benefits of the actiontaken;
(35) Whereas forestry is an integral part of rural development andforestry measures should, therefore, be included under the ruraldevelopment support scheme, whereas support for forestry shouldavoid distorting competition and should be market neutral;
(36) Whereas forestry measures should be adopted in the light ofundertakings given by the Community and the Member States atinternational level and be based on Member States' forestry plans;whereas such measures should also take into account the specific
problems of climate change;
(37) Whereas forestry measures should be based on those taken under
the existing schemes laid down in Council Regulation (EEC)No 1610/89 of 29 May 1989 laying down provisions for
implementing Regulation (EEC) No 4256/88 as regards the
scheme to develop and optimally utilise woodlands in rural areasin the Community (
2) and in Council Regulation (EEC) No 867/90
of 29 March 1990 on improving the processing and marketingconditions for forestry products (
3);
(38) Whereas the afforestation of agricultural land is especiallyimportant from the point of view of soil use and the environmentand as a contribution to increasing supplies for certain forestryproducts, whereas the existing support for afforestation under
Regulation (EEC) No 2080/92 should, therefore, be continued,
taking into account the experience gained in the implementationof that scheme as described in detail in the Commission's reportpresented pursuant to Article 8(3) thereof;
(39) Whereas payments should be granted for activities to maintainand improve ecological stability of forests in certain areas;
(40) Whereas support should be granted for other measures relating tofarming activities and their conversion; whereas the list of
measures should be defined on the basis of experience and having
regard to the need for rural development to be based partly onnon-agricultural activities and services so as to reverse the trendtowards the economic and social decline and depopulation of thecountryside; whereas measures to remove inequalities and topromote equal opportunities for men and women should be
supported;
(41) Whereas demand from consumers for organically-produced
agricultural products and foodstuffs is increasing; whereas anew market for agricultural products is thus being created;1999R1257 — EN — 03.07.1999 — 000.001 — 5
(1) OJ L 142, 2.6.1997, p. 22.
(2) OJ L 165, 15.6.1989, p. 3.
(3) OJ L 91, 6.4.1990, p. 7.
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whereas organic agriculture improves the sustainability of
farming activities and thus contributes to the general aims ofthis Regulation; whereas the specific rural development support
measures may concern the production, processing and marketing
of organically-produced agricultural products;
(42) Whereas rural development measures eligible for Communitysupport should comply with Community law and be consistentwith other Community policies as well as with other instruments
of the common agricultural policy;
(43) Whereas in the framework of this Regulation support should be
excluded for certain measures eligible under other commonagricultural policy instruments and in particular those fallingwithin the scope of support schemes under common organisationsof the market with the exceptions justified by objective criteria;
(44) Whereas, in view of existing aid to producer groups and theirassociations in several common organisations of the market,specific support to producer groups in the framework of ruraldevelopment no longer appears to be necessary; whereas,therefore, the aid scheme existing under Council Regulation(EC) No 952/97 of 20 May 1997 on producer groups and
associations thereof (
1) should be discontinued;
(45) Whereas the financing of Community support for the accom-
panying measures and for other rural development measures inareas other than Objective 1 should come from the GuaranteeSection of the EAGGF; whereas the basic financial rules laid
down in Regulation (EC) No 1260/1999 have been adapted
accordingly;
(46) Whereas the financing of Community support for rural develop-ment measures, in areas covered by Objective 1, should continueto come from the Guidance Section of the EAGGF except for thethree existing accompanying measures and the support for less-
favoured areas and areas with environmental restrictions;
(47) Whereas, with regard to the support for rural development
measures covered by Objective 1 and Objective 2 programming,Regulation (EC) No 1260/1999 should apply, in particular as tointegrated programming of these measures; whereas, however,rules concerning financing should take into account the Guarantee
financing of measures in Objective 2 regions;
(48) Whereas rural development measures not covered by Objective 1
or Objective 2 programming should be subject to ruraldevelopment programming pursuant to specific rules; whereasrates of assistance for such measures should be differentiatedaccording to the general principles laid down in Article 29(1) of
Regulation (EC) No 1260/1999 taking sufficiently into account
the requirement of social and economic cohesion; whereas, as aresult, those assistance rates should, in principle, be differentiatedas between areas covered by Objective 1 and Objective 2 andother areas; whereas the rates laid down in this Regulation are the
maximum rates of Community assistance;
(49) Whereas, in addition to rural development programmes, the
Commission should be able to make provisions for studies onrural development on its own initiative notwithstanding the ruraldevelopment initiative provided for in Articles 19 and 20 ofRegulation (EC) No 1260/1999;
(50) Whereas appropriate rules should be established for themonitoring and evaluation of rural development support, usingas a reference well-defined indicators to be agreed and establishedprior to programme implementation;
(51) Whereas rural development measures should be eligible forMember State support without any Community co-financing;1999R1257 — EN — 03.07.1999 — 000.001 — 6
(1) OJ L 142, 2.6.1997, p. 30.
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whereas, in view of the considerable economic impact of such aid
and in order to ensure consistency with measures eligible forCommunity support and simplify procedures, specific State-aid
rules should be established;
(52) Whereas it should be possible to adopt transitional rules to
facilitate the transition from existing support schemes to the newrural development support scheme;
(53) Whereas the new support scheme provided for in this Regulationreplaces existing support schemes which should therefore berepealed; whereas, as a consequence, the derogation in currentschemes for outermost regions and for the Aegean Islands willequally have to be repealed; whereas new rules providing for the
necessary flexibility, adaptations and derogations in order to meet
the specific needs of those regions will be established when ruraldevelopment measures are programmed,
HAS ADOPTED THIS REGULATION:
TITLE I
SCOPE AND OBJECTIVES
Article 1
1. This Regulation establishes the framework for Community support
for sustainable rural development.
2. Rural development measures shall accompany and complement
other instruments of the common agricultural policy and thus contributeto the achievement of the objectives laid down in Article 33 of theTreaty.
3. Rural development measures shall:
— be integrated into the measures promoting the development and
structural adjustment of regions whose development is lagging
behind (Objective 1), and
— accompany the measures supporting the economic and social
conversion of areas facing structural difficulties (Objective 2)
in the regions concerned, taking into account the specific targets of
Community support under these objectives as laid down in Articles 158
and 160 of the Treaty and in Regulation (EC) No 1260/1999 and
according to the conditions laid down in this Regulation.
Article 2
Support for rural development, related to farming activities and their
conversion, may concern:
— the improvement of structures in agricultural holdings and structures
for the processing and marketing of agricultural products,
— the conversion and reorientation of agricultural production potential,
the introduction of new technologies and the improvement of
product quality,
— the encouragement of non-food production,
— sustainable forest development,— the diversification of activities with the aim of complementary or
alternative activities,
— the maintenance and reinforcement of viable social fabric in rural
areas,
— the development of economic activities and the maintenance and
creation of employment with the aim of ensuring a betterexploitation of existing inherent potential,
— the improvement of working and living conditions,— the maintenance and promotion of low-input farming systems,
— the preservation and promotion of a high nature value and a
sustainable agriculture respecting environmental requirements,1999R1257 — EN — 03.07.1999 — 000.001 — 7
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— the removal of inequalities and the promotion of equal opportunities
for men and women, in particular by supporting projects initiatedand implemented by women.
Article 3
Support shall be granted for the rural development measures defined in
Title II and under the conditions laid down therein.
TITLE II
RURAL DEVELOPMENT MEASURES
CHAPTER I
INVESTMENT IN AGRICULTURAL HOLDINGS
Article 4
Support for investment in agricultural holdings shall contribute to the
improvement of agricultural incomes and of living, working andproduction conditions.
Such investment shall pursue one or more of the following objectives:
— to reduce production costs,
— to improve and redeploy production,— to increase quality,
— to preserve and improve the natural environment, hygiene conditions
and animal welfare standards,
— to promote the diversification of farm activities.
Article 5
Support for investment shall be granted to agricultural holdings:
— the economic viability of which can be demonstrated,
— which comply with minimum standards regarding the environment,
hygiene and animal welfare, and
— where the farmer possesses adequate occupational skill and
competence.
Article 6
Support shall not be granted for investment which has as its objective an
increase in production for which no normal market outlets can be found.
Article 7
Member States shall set limits for total investment eligible for support.The total amount of support, expressed as a percentage of the volume of
eligible investment, is limited to a maximum of 40 % and 50 % in less-favoured areas. Where investments are undertaken by young farmers, asreferred to under Chapter II, these percentages may reach a maximum of
45 % and 55 % in less-favoured areas.
CHAPTER II
SETTING UP OF YOUNG FARMERS
Article 8
1. Setting-up aid to facilitate the establishment of young farmers shall
be granted under the following conditions:
— the farmer is under 40 years of age,
— the farmer possesses adequate occupational skill and competence,— the farmer is setting up on an agricultural holding for the first time,— as regards the holding:
(i) economic viability can be demonstrated, and1999R1257 — EN — 03.07.1999 — 000.001 — 8
▼B
(ii) minimum standards regarding the environment, hygiene and
animal welfare are complied with,
and
— the farmer is established as head of the holding.
Specific conditions may be applied in a situation where a young farmer
is not established as sole head of the holding. These conditions must beequivalent to those required for a young farmer setting up as sole head of
a holding.
2. The setting-up aid may comprise:
— a single premium up to the maximum eligible amount specified in
the Annex,
— an interest subsidy on loans taken on with a view to covering the
costs arising from setting up; the capitalised value of the interest
subsidy may not exceed the value of the premium.
CHAPTER III
TRAINING
Article 9
Support for vocational training shall contribute to the improvement of
the occupational skill and competence of farmers and other persons
involved in agricultural activities and forestry activities, and their
conversion.
Training shall in particular be designed:
— to prepare farmers for qualitative reorientation of production, the
application of production practices compatible with the maintenance
and enhancement of the landscape, the protection of the environ-
ment, hygiene standards and animal welfare and acquisition of theskills needed to enable them to manage an economically viable farm,and
— to prepare forest holders and other persons involved in forestry
activities for the application of forest management practices toimprove the economic, ecological or social functions of forests.
CHAPTER IV
EARLY RETIREMENT
Article 10
1. Support for early retirement from farming shall contribute to the
following objectives:
— to provide an income for elderly farmers who decide to stop farming,
— to encourage the replacement of such elderly farmers by farmers able
to improve, where necessary, the economic viability of the remainingagricultural holdings,
— to reassign agricultural land to non-agricultural uses where it cannot
be farmed under satisfactory conditions of economic viability.
2. Early retirement support may include measures to provide an
income for farm workers.
Article 11
1. A transferor of a farm shall:
— stop all commercial farming activity definitively; he may, however,
continue non-commercial farming and retain the use of the buildings,
— be not less than 55 years old but not yet of normal retirement age at
the time of transfer, and
— have practised farming for the 10 years preceding transfer.
2. The transferee of a farm shall:
— succeed the transferor as the head of the agricultural holding or take
over all or part of the land released. The economic viability of the1999R1257 — EN — 03.07.1999 — 000.001 — 9
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transferee's holding must be improved within a period and in
compliance with conditions to be defined in terms of, in particular,the transferee's occupational skill and competence and the surface
area and volume of work or income, according to the region and type
of production,
— possess adequate occupational skill and competence, and
— undertake to practise farming on the agricultural holding for not less
than five years.
3. A farm worker shall:
— stop all farm work definitively,
— be not less than 55 years old but not yet of normal retirement age,
— have devoted at least half of his working time as a family helper or
farm worker to farm work during the preceding five years,
— have worked on the transferor's agricultural holding for at least the
equivalent of two years full-time during the four-year periodpreceding the early retirement of the transferor, and
— belong to a social security scheme.
4. A non-farming transferee may be any other person or body who
takes over released land to use it for non-agricultural purposes, such asforestry or the creation of ecological reserves, in a manner compatiblewith protection or improvement of the quality of the environment of thecountryside.
5. The conditions laid down in this Article shall be applied
throughout the period during which the transferor receives earlyretirement support.
Article 12
1. The maximum amounts eligible for Community support are laid
down in the Annex.
2. The duration of early retirement support shall not exceed a total
period of 15 years for the transferor and 10 years for the farm worker. Itshall not go beyond the 75th birthday of a transferor and not go beyondthe normal retirement age of a worker.
Where in the case of a transferor a normal retirement pension is paid by
the Member State, early retirement support shall be granted as asupplement taking into account the amount of the national retirement
pension.
CHAPTER V
LESS-FAVOURED AREAS AND AREAS WITH ENVIRONMENTAL
RESTRICTIONS
Article 13
Support for less-favoured areas and areas with environmental restric-
tions shall contribute to the following objectives.
(a)Compensation for naturally less-favoured areas
— to ensure continued agricultural land use and thereby contribute
to the maintenance of a viable rural community,
— to maintain countryside,
— to maintain and promote sustainable farming systems which in
particular take account of environmental protection require-ments.
(b)Compensation for areas withenvironmental restrictions
— to ensure environmental requirements and safeguard farming in
areas with environmental restrictions.
Article 14
1. Farmers in less-favoured areas may be supported by compensatory
allowances.1999R1257 — EN — 03.07.1999 — 000.001 — 10
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2. Compensatory allowances shall be granted per hectare of areas
used for agriculture to farmers who:
— farm a minimum area of land to be defined,
— undertake to pursue their farming activity in a less-favoured area for
at least five years from the first payment of a compensatoryallowance, and
— apply usual good farming practices compatible with the need to
safeguard the environment and maintain the countryside, inparticular by sustainable farming.
3. Where residues of substances prohibited under Directive 96/22/
EC (
1) or residues of substances authorised under that Directive but used
illegally, are detected pursuant to the relevant provisions of Council
Directive 96/23/EC (2) in an animal belonging to the bovine herd of a
producer, or where an unauthorised substance or product, or a substanceor product authorised under Directive 96/22/EC but held illegally isfound on the producer's holding in any form, the producer shall beexcluded from receiving compensatory allowances for the calendar year
of that discovery.
In the event of a repeated infringement, the length of the exclusion
period may, depending on the seriousness of the offence, be extended to
five years from the year in which the repeated infringement wasdiscovered.
In the event of obstruction on the part of the owner or holder of the
animals when inspections are being carried out and the necessarysamples are being taken in application of national residue-monitoringplans, or when the investigations and checks provided for underDirective 96/23/EC are being carried out, the penalties provided for in
the first subparagraph shall apply.
Article 15
1. Compensatory allowances shall be fixed at a level which:
— is sufficient in making an effective contribution to compensation for
existing handicaps, and
— avoids overcompensation.
2. Compensatory allowances shall be duly differentiated, taking into
account:
— the situation and development objectives peculiar to a region,
— the severity of any permanent natural handicap affecting farming
activities,
— the particular environmental problems to be solved where appro-
priate,
— the type of production and, where appropriate, the economic
structure of the holding.
3. Compensatory allowances shall be fixed between the minimum
and maximum amounts set out in the Annex.
Compensatory allowances higher than this maximum amount may be
granted provided that the average amount of all compensatoryallowances granted at the programming level concerned does not
exceed this maximum amount. However, in cases duly justified by
objective circumstances, Member States may, for the purpose ofcalculating the average amount, present a combination of severalregional programmes.
Article 16
1. Payments to compensate for costs incurred and income foregone
may be made to farmers who are subject to restrictions on agriculturaluse in areas with environmental restrictions as a result of the1999R1257 — EN — 03.07.1999 — 000.001 — 11
(1) OJ L 125, 23.5.1996, p. 3.
(2) OJ L 125, 23.5.1996, p. 10.
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implementation of limitations on agricultural use based on Community
environmental protection rules, if and in so far as such payments arenecessary to solve the specific problems arising from those rules.
2. Payments shall be fixed at a level which avoids overcompensation;
this is especially necessary in the case of payments in less-favouredareas.
3. The maximum amounts eligible for Community support are laid
down in the Annex.
Article 17
Less-favoured areas shall include:
— mountain areas (Article 18),
— other less-favoured areas (Article 19), and— areas affected by specific handicaps (Article 20).
Article 18
1. Mountain areas shall be those characterised by a considerable
limitation of the possibilities for using the land and an appreciableincrease in the cost of working it due:
— to the existence, because of altitude, of very difficult climatic
conditions, the effect of which is substantially to shorten the growingseason,
— at a lower altitude, to the presence over the greater part of the area in
question of slopes too steep for the use of machinery or requiring theuse of very expensive special equipment, or
— to a combination of these two factors, where the handicap resulting
from each taken separately is less acute but the combination of the
two gives rise to an equivalent handicap.
2. Areas north of the 62nd Parallel and certain adjacent areas shall be
treated in the same way as mountain areas.
Article 19
Less-favoured areas which are in danger of abandonment of land-use
and where the conservation of the countryside is necessary, shallcomprise farming areas which are homogeneous from the point of viewof natural production conditions and exhibit all of the following
characteristics:
— the presence of land of poor productivity, difficult cultivation and
with a limited potential which cannot be increased except at
excessive cost, and which is mainly suitable for extensive livestock
farming,
— production which results from low productivity of the natural
environment which is appreciably lower than the average, withregard to the main indices of economic performance in agriculture,
— a low or dwindling population predominantly dependent on
agricultural activity, the accelerated decline of which wouldjeopardise the viability of the area concerned and its continuedhabitation.
Article 20
Less-favoured areas may include other areas affected by specific
handicaps, in which farming should be continued, where necessary and
subject to certain conditions, in order to conserve or improve theenvironment, maintain the countryside and preserve the tourist potentialof the area or in order to protect the coastline.
Article 21
The total extent of areas referred to in Article 16 and Article 20 may not
exceed 10 % of the area of the Member State concerned.1999R1257 — EN — 03.07.1999 — 000.001 — 12
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CHAPTER VI
AGRI-ENVIRONMENT
Article 22
Support for agricultural production methods designed to protect the
environment and to maintain the countryside (agri-environment) shall
contribute to achieving the Community's policy objectives regarding
agriculture and the environment.
Such support shall promote:
— ways of using agricultural land which are compatible with the
protection and improvement of the environment, the landscape andits features, natural resources, the soil and genetic diversity,
— an environmentally-favourable extensification of farming and
management of low-intensity pasture systems,
— the conservation of high nature-value farmed environments which
are under threat,
— the upkeep of the landscape and historical features on agricultural
land,
— the use of environmental planning in farming practice.
Article 23
1. Support shall be granted to farmers who give agri-environmental
commitments for at least five years. Where necessary, a longer period
shall be determined for particular types of commitments in view of their
environmental effects.
2. Agri-environmental commitments shall involve more than the
application of usual good farming practice.
They shall provide for services which are not provided for by other
support measures, such as market support or compensatory allowances.
Article 24
1. Support in respect of an agri-environmental commitment shall be
granted annually and be calculated on the basis of:
— income foregone,
— additional costs resulting from the commitment given, and— the need to provide an incentive.
The cost of any non-remunerative capital works necessary for the
fulfilment of the commitments may also be taken into account in
calculating the level of annual support.
2. Maximum amounts per year eligible for Community support are
laid down in the Annex. These amounts shall be based on that area of theholding to which agri-environmental commitments apply.
CHAPTER VII
IMPROVING PROCESSING AND MARKETING OF AGRICULTURAL
PRODUCTS
Article 25
1. Support for investment shall facilitate the improvement and
rationalisation of processing and marketing of agricultural products
and thereby contribute to increasing the competitiveness and added
value of such products.
2. Such support shall contribute to one or more of the following
objectives:
— to guide production in line with foreseeable market trends or
encourage the development of new outlets for agricultural products,
— to improve or rationalise marketing channels or processing
procedures,1999R1257 — EN — 03.07.1999 — 000.001 — 13
▼B
— to improve the presentation and preparation of products or encourage
the better use or elimination of by-products or waste,
— to apply new technologies,— to favour innovative investments,
— to improve and monitor quality,
— to improve and monitor health conditions,— to protect the environment.
Article 26
1. Support shall be granted to those persons ultimately responsible for
financing the investment in enterprises
— for which economic viability can be demonstrated, and
— which comply with minimum standards regarding the environment,
hygiene and animal welfare.
2. Investment must contribute to improving the situation of the basic
agricultural production sector in question. It must guarantee theproducers of such basic products an adequate share in the resulting
economic benefits.
3. Sufficient evidence must be shown that normal market outlets for
the products concerned can be found.
Article 27
1. Investment shall concern the processing and marketing of products
covered by Annex I to the Treaty except fishery products.
2. Investment shall meet selection criteria setting priorities and
indicating which types of investment are not eligible for support.
Article 28
1. The following types of investment shall be excluded from support:
— investment at the retail level,
— investment in the processing or marketing of products from third
countries.
2. The total amount of support, expressed as a percentage of the
volume of eligible investment, is limited to a maximum of:
(a) 50 % in Objective 1 regions;
(b) 40 % in the other regions.
CHAPTER VIII
FORESTRY
Article 29
1. Support for forestry shall contribute to the maintenance and
development of the economic, ecological and social functions of forests
in rural areas.
2. Such support shall promote in particular one or more of the
following objectives:
— sustainable forest management and development of forestry,
— maintenance and improvement of forest resources,
— extension of woodland areas.
3. Such support shall be granted only for forests and areas owned by
private owners or by their associations or by municipalities or their
associations. This restriction shall not apply to the measures provided forin the sixth indent of Article 30(1).
4. Such support shall contribute to the fulfilment of the undertakings
given by the Community and the Member States at international level. Itshall be based on national or subnational forest programmes orequivalent instruments which should take into account the commitments1999R1257 — EN — 03.07.1999 — 000.001 — 14
▼B
made in the Ministerial Conferences on the Protection of Forests in
Europe.
5. Measures proposed under this Regulation in areas classified as
high or medium forest fire risk under Council Regulation (EEC)No 2158/92 of 23 July 1992 on protection of the Community forestsagainst fire (
1) must conform to the forest protection plans presented by
the Member States under Regulation (EEC) No 2158/92.
Article 30
1. Support for forestry shall concern one or more of the following
measures:
— afforestation of land not eligible under Article 31 provided that such
planting is adapted to local conditions and is compatible with theenvironment,
— investment in forests aimed at significantly improving their
economic, ecological or social value,
— investment to improve and rationalise the harvesting, processing and
marketing of forestry products; investment related to the use of woodas a raw material shall be limited to all working operations prior to
industrial processing,
— promotion of new outlets for the use and marketing of forestry
products,
— the establishment of associations of forest holders that are set up in
order to help their members to improve the sustainable and efficientmanagement of their forests,
— restoring forestry production potential damaged by natural disasters
and fire and introducing appropriate prevention instruments.
2. The rules laid down in Chapters I and VII, with the exception of
the second subparagraph of Article 7, shall apply as appropriate for
investments.
Article 31
1. Support shall be granted for the afforestation of agricultural land
provided that such planting is adapted to local conditions and is
compatible with the environment.
Such support may include in addition to planting costs:
— an annual premium per hectare afforested to cover maintenance costs
for a period of up to five years,
— an annual premium per hectare to cover loss of income resulting
from afforestation for a maximum period of 20 years for farmers orassociations thereof who worked the land before its afforestation or
for any other private law person.
2. Support for the afforestation of agricultural land undertaken by
public authorities shall cover only the cost of establishment.
3. Support for the afforestation of agricultural land shall not be
granted:
— for farmers benefiting from early retirement support,
— in respect of the planting of Christmas trees.
In the case of fast-growing species cultivated in the short term, support
for afforestation shall be granted for planting costs only.
4. Maximum amounts per year of the annual premium to cover loss
of income eligible for Community support are laid down in the Annex.1999R1257 — EN — 03.07.1999 — 000.001 — 15
(1) OJ L 217, 31.7.1992, p. 3. Regulation as amended by Regulation (EC)
No 308/97 (OJ L 51, 21.2.1997, p. 2).
▼B
Article 32
1. With a view to:
— maintaining and improving the ecological stability of forests where
the protective and ecological role of these forests are of public
interest and where the costs of maintenance and improvementmeasures for these forests exceed the income from forestry,
— maintaining fire-breaks through agricultural measures,
payments for relevant measures shall be granted to the beneficiaries
provided that the protective and ecological values of these forests areensured in a sustainable manner and the measures to be carried out arelaid down by contract and their cost specified therein.
2. Payments shall be fixed between the minimum and maximum
amounts set out in the Annex, on the basis of the real costs of themeasures carried out, as previously stipulated in the contract.
CHAPTER IX
PROMOTING THE ADAPTATION AND DEVELOPMENT OF RURAL
AREAS
Article 33
Support shall be granted for measures, relating to farming activities and
their conversion and to rural activities, which do not fall within thescope of any other measure referred to in this Title.
Such measures shall concern:
— land improvement,
— reparcelling,— setting-up of farm relief and farm management services,— marketing of quality agricultural products,
— basic services for the rural economy and population,
— renovation and development of villages and protection and
conservation of the rural heritage,
— diversification of agricultural activities and activities close to
agriculture to provide multiple activities or alternative incomes,
— agricultural water resources management,
— development and improvement of infrastructure connected with the
development of agriculture,
— encouragement for tourist and craft activities,
— protection of the environment in connection with agriculture,
forestry and landscape conservation as well as with the improvementof animal welfare,
— restoring agricultural production potential damaged by natural
disasters and introducing appropriate prevention instruments,
— financial engineering.
CHAPTER X
IMPLEMENTING RULES
Article 34
Detailed rules for the implementation of this Title shall be adopted in
accordance with the procedure laid down in Article 50(2) of Regulation(EC) No 1260/1999.
These rules may in particular define:
— conditions for support for investment in agricultural holdings
(Articles 4 to 7), including the necessary restrictions resulting from
application of Article 6,
— the period and the conditions for the improvement of economic
viability of an agricultural holding and conditions of use of landreleased in the case of early retirement (Article 11(2)),1999R1257 — EN — 03.07.1999 — 000.001 — 16
▼B
— conditions for the granting and calculation of the compensatory
allowance in less-favoured areas, including in the case of communaluse of agricultural land (Articles 14 and 15) and the compensatory
payments in areas with environmental restrictions (Article 16),
— conditions governing the giving of agri-environmental commitments
(Articles 23 and 24),
— selection criteria for investment aimed at improving the processing
and marketing of agricultural products (Article 27(2)),
— conditions governing forestry measures (Chapter VIII).
According to the same procedure, the Commission may derogate from
the second indent of Article 28(1) in the outermost regions subject to thecondition that the processed products are destined for the market of the
region in question.
TITLE III
GENERAL PRINCIPLES, ADMINISTRATIVE AND FINANCIAL
PROVISIONS
CHAPTER I
GENERAL PRINCIPLES
Subchapter I
Support from EAGGF
Article 35
1. Community support for early retirement (Articles 10 to 12), less-
favoured areas and areas with environmental restrictions (Articles 13 to21), agri-environment (Articles 22 to 24) and afforestation (Article 31)
shall be financed by the EAGGF Guarantee Section throughout the
Community.
2. Community support for other rural development measures shall be
financed by the EAGGF:
— Guidance Section in areas covered by Objective 1,
— Guarantee Section in areas not covered by Objective 1.
3. Support for the measures referred to in the sixth, seventh and ninth
indents of Article 33 shall be financed by the EAGGF in areas classifiedunder Objectives 1 and 2 and areas in transition in so far as theirfinancing is not provided by the European Regional Development Fund(ERDF).
Article 36
1. With regard to support for the rural development measures referred
to in Article 35(2):
— in areas covered by Objective 1, Regulation (EC) No 1260/1999
shall apply as supplemented by specific rules contained in thisRegulation,
— in areas covered by Objective 2, Regulation (EC) No 1260/1999
shall apply as supplemented by specific rules contained in thisRegulation and save as otherwise provided for under this Regulation.
2. With regard to support for rural development measures financed by
the EAGGF Guarantee Section, the specific rules of ►
C1Regulation
(EC) No 1258/1999 (1)◄and the provisions adopted in implementation
thereof shall apply save as otherwise provided for under this Regulation.1999R1257 — EN — 03.07.1999 — 000.001 — 17
(1) See page 103 of this Official Journal.
▼B
Subchapter II
Compatibility and consistency
Article 37
1. Support for rural development shall be granted only for measures
which comply with Community law.
2. Such measures shall be consistent with other Community policies
and measures implemented thereunder.
In particular, no measure which falls within the scope of this Regulation
shall be eligible for support under other Community support schemes if
it is incompatible with any specific condition laid down in thisRegulation.
3. Consistency shall also be ensured with measures implemented
under other instruments of the common agricultural policy, and in
particular between rural development support measures on the one handand measures implemented under the common market organisations andagricultural quality and health measures on the other hand, as well asbetween the different rural development support measures.
Accordingly, no support under this Regulation may be granted for:
— measures falling within the scope of support schemes under common
market organisations, with the exceptions, justified by objective
criteria, that may be defined according to Article 50,
— measures to support research projects, to promote agricultural
products or to eradicate animal diseases.
4. Member States may lay down further or more restrictive conditions
for granting Community support for rural development provided thatsuch conditions are consistent with the objectives and requirements laiddown in this Regulation.
Article 38
1. Payments may not be made in respect of the same measure under
both this Regulation and another Community support scheme.
2. Support for several measures under this Regulation may be
combined only if such measures are consistent and compatible with each
other. If necessary, the level of support shall be adjusted.
Article 39
1. Member States shall take all necessary steps to ensure the
compatibility and consistency of rural development support measures
pursuant to the provisions laid down in this Chapter.
2. The rural development plans submitted by Member States shall
include an appraisal of the compatibility and the consistency of the
support measures envisaged and an indication of the measures taken in
order to ensure compatibility and consistency.
3. Support measures shall, where necessary, be subsequently revised
to ensure compatibility and consistency.
CHAPTER II
PROGRAMMING
Article 40
1. Rural development measures financed by the EAGGF Guidance
Section shall form part of the programming for Objective 1 regions
according to Regulation (EC) No 1260/1999.
2. Rural development measures other than those referred to in Article
35(1) may form part of the programming for Objective 2 regions inaccordance with Regulation (EC) No 1260/1999.1999R1257 — EN — 03.07.1999 — 000.001 — 18
▼B
3. Other rural development measures which do not form part of the
programming in accordance with paragraphs 1 and 2 shall be subject torural development programming in accordance with Articles 41 to 44.
4. With reference to appropriate rural development measures,
Member States may also submit for approval general frameworkRegulations which form part of the programming in accordance withparagraphs 1 to 3, as far as it is appropriate with a view to maintaining
uniform conditions.
Article 41
1. Rural development plans shall be drawn up at the geographical
level deemed to be the most appropriate. They shall be prepared by thecompetent authorities designated by the Member State and submitted by
the Member State to the Commission after competent authorities and
organisations have been consulted at the appropriate territorial level.
2. Rural development support measures to be applied in one area
shall be integrated, whenever possible, into a single plan. Wherever
several plans need to be established, the relationship between measures
put forward in such plans shall be indicated and their compatibility andconsistency ensured.
Article 42
Rural development plans shall cover a period of seven years from 1
January 2000.
Article 43
1. Rural development plans shall include:
— a quantified description of the current situation showing disparities,
gaps and potential for development, the financial resources deployedand the main results of operations undertaken in the previous
programming period with regard to the evaluation results available,
— a description of the strategy proposed, its quantified objectives, and
rural development priorities selected, and the geographical areacovered,
— an appraisal showing the expected economic, environmental and
social impact, including employment effects,
— an indicative overall financial table summarising the national and
Community financial resources provided for and corresponding to
each rural development priority submitted in the context of the planand, where the plan covers rural areas in Objective 2, identifying theindicative amounts for rural development measures under Article 33in these areas,
— a description of the measures contemplated for implementing the
plans, and in particular aid schemes, including the points necessary
for assessing the rules of competition,
— where appropriate, information on the needs for any studies,
demonstration projects, training or technical assistance operationsrelating to the preparation, implementation or adaptation of the
measures concerned,
— the designation of competent authorities and bodies responsible,— provisions to ensure the effective and correct implementation of the
plans, including monitoring and evaluation, a definition of quantifiedindicators for evaluation, arrangements for controls and sanctionsand adequate publicity,
— the results of consultations and designation of associated authorities
and bodies as well as the economic and social partners at the
appropriate levels.
2. In their plans, Member States shall:
— provide for agri-environment measures throughout their territories,
and in accordance with their specific needs,
— ensure the necessary balance is kept between the different support
measures.1999R1257 — EN — 03.07.1999 — 000.001 — 19
▼B
Article 44
1. Rural development plans shall be submitted not later than six
months after the entry into force of this Regulation.
2. The Commission shall appraise the proposed plans to determine
whether they are consistent with this Regulation. On the basis of theplans, it shall approve rural development programming documents inaccordance with the procedure referred to in Article 50(2) of Regulation
(EC) No 1260/1999 within six months after the submission of the plans.
CHAPTER III
ADDITIONAL MEASURES AND COMMUNITY INITIATIVES
Article 45
1. Pursuant to Article 21(2) of Regulation (EC) No 1260/1999, the
Commission, following the procedure laid down in Article 50(2) of thatRegulation, may extend the scope of assistance from the EAGGFGuidance Section beyond that provided for in Article 35(2) of this
Regulation and the financing of measures eligible under Council
►
C1Regulations (EC) No 1783/1999 (1), (EC) No 1784/1999 (2)
and◄(EC) No 1263/1999 (3) with a view to implementing all the
measures in the rural development Community initiative.
2. The EAGGF Guarantee Section may, on the initiative of the
Commission, finance studies related to rural development programming.
CHAPTER IV
FINANCIAL PROVISIONS
Article 46
1. Community support for rural development from the EAGGF
Guarantee Section shall be subject to financial planning and accountingon an annual basis. The financial planning shall form part of ruraldevelopment programming (Article 40(3)) or of programming related to
Objective 2.
2. The Commission shall make initial allocations to Member States,
broken down on an annual basis and using objective criteria which takeinto account particular situations and needs, and efforts to be undertakenespecially for the environment, job creation and maintenance of the
landscape.
3. Initial allocations shall be adjusted on the basis of actual
expenditure and revised expenditure forecasts submitted by the MemberStates taking into account programme objectives, and be subject to thefunds available and as a rule be consistent with the aid intensity for rural
areas covered by Objective 2.
Article 47
1. The financial provisions laid down in Articles 31, 32 (except for
the fifth subparagraph of paragraph 1 thereof), 34, 38 and 39 ofRegulation (EC) No 1260/1999 shall not apply to support for ruraldevelopment measures in relation to Objective 2.
The Commission shall take the necessary action to ensure efficient and
coherent implementation of these measures which shall attain at least thesame standards as those laid down in the provisions referred to in thefirst subparagraph, including the principle of a single managementauthority.1999R1257 — EN — 03.07.1999 — 000.001 — 20
(1) OJ L 213, 13.8.1999, p. 1.
(2) OJ L 213, 13.8.1999, p. 5.
(3) OJ L 161, 26.6.1999, p. 54.
▼B
2. For measures covered by rural development programming, the
Community shall contribute to financing pursuant to the principles laiddown in Articles 29 and 30 of Regulation (EC) No 1260/1999.
In this connection:
— the Community contribution shall not exceed 50 % of the total
eligible cost and, as a general rule, shall be equal to at least 25 % of
eligible public expenditure in areas not covered by Objective 1 and
Objective 2,
— for revenue-bearing investment, the rates laid down in Article
29(4)(a)(ii) and (iii) and (b)(ii) and (iii) of Regulation (EC) No 1260/1999 shall apply. Agricultural and forestry holdings and businesses
involved in the processing and marketing of agricultural and forestry
products are businesses in that respect within the meaning of Article29(4)(b)(iii),
— the Community contribution to the programming for measures laid
down in Articles 22 to 24 of this Regulation shall be 75 % in areas
covered by Objective 1 and 50 % in the other areas.
The fifth subparagraph of Article 32(1) of Regulation (EC) No 1260/
1999 shall apply to such payments.
3. Payments of financial assistance from the EAGGF Guarantee
Section may take the form of advances for programme implementation
and of payments in respect of expenditure incurred.
CHAPTER V
MONITORING AND EVALUATION
Article 48
1. The Commission and the Member States shall ensure effective
monitoring of implementation of rural development programming.
2. Such monitoring shall be carried out by way of jointly agreed
procedures.
Monitoring shall be carried out by reference to specific physical and
financial indicators agreed and established beforehand.
Member States shall submit annual progress reports to the Commission.3. Where appropriate, monitoring committees shall be established.
Article 49
1. Evaluation of measures covered by rural development program-
ming shall be carried out on the basis of the principles laid down inArticles 40 to 43 of Regulation (EC) No 1260/1999.
2. The EAGGF Guarantee Section may, within the framework of the
financial resources allocated to programmes, participate in the financingof evaluations relating to rural development in the Member States. TheEAGGF Guarantee Section may also, on the initiative of theCommission, finance evaluations at Community level.
CHAPTER VI
IMPLEMENTING RULES
Article 50
Detailed rules for the application of this Title shall be adopted in
accordance with the procedure laid down in Article 50(2) of Regulation
(EC) No 1260/1999.
These rules may in particular define the details of:
— the presentation of rural development plans (Articles 41 to 44),
— the revision of rural development programming documents,
— financial planning, in particular to ensure budgetary discipline
(Article 46), and participation in financing (Article 47(2)),1999R1257 — EN — 03.07.1999 — 000.001 — 21
▼B
— monitoring and evaluation (Articles 48 and 49),
— how to ensure consistency between rural development measures and
the support measures introduced by the market organisations (Article37).
TITLE IV
STATE AID
Article 51
1. Save as otherwise provided in this Title, Articles 87 to 89 of the
Treaty shall apply to aid granted by Member States for measures tosupport rural development.
However, Articles 87 to 89 of the Treaty shall not apply to financial
contributions provided by Member States for measures subject toCommunity support within the scope of Article 36 of the Treaty in
accordance with the provisions of this Regulation.
2. Aid for investment in agricultural holdings which exceeds the
percentages referred to in Article 7 shall be prohibited.
This prohibition does not apply to aid for investments relating to:
— investments undertaken predominantly in the public interest related
to the conversation of traditional landscapes shaped by agriculturaland forestry activities or relocation of farm buildings,
— the protection and improvement of the environment,
— improvement of the hygiene conditions of livestock enterprises and
the welfare of animals.
3. State aid granted to farmers to compensate for natural handicaps in
less-favoured areas shall be prohibited if it does not satisfy theconditions laid down in Articles 14 and 15.
4. State aid to support farmers who give agri-environmental
commitments which fail to satisfy the conditions laid down in Articles22 to 24 shall be prohibited. However, additional aid exceeding
maximum amounts fixed according to Article 24(2) may be granted if
justified under paragraph 1 of that Article. In duly justified exceptionalcases derogation may be permitted in respect of the minimum durationof these commitments as laid down in Article 23(1).
Article 52
Within the scope of Article 36 of the Treaty, State aid intended to
provide additional financing for rural development measures for whichCommunity support is granted shall be notified by Member States andapproved by the Commission in accordance with the provisions of thisRegulation as part of programming referred to in Article 40. The first
sentence of Article 88(3) of the Treaty shall not apply to aid thus
notified.
TITLE V
TRANSITIONAL AND FINAL RULES
Article 53
1. Should specific measures be necessary to facilitate the transition
from the system in force to the one established by this Regulation, suchmeasures shall be adopted by the Commission in accordance with theprocedures laid down in Article 50(2) of Regulation (EC) No 1260/1999.
2. Such measures shall in particular be adopted for the integration of
existing Community support actions, approved by the Commission for aperiod ending after 1 January 2000 or without any time limit, into therural development support provided for by this Regulation.1999R1257 — EN — 03.07.1999 — 000.001 — 22
▼B
Article 54
1. Article 17 of Council Regulation (EEC) No 1696/71 of 26 July
1971 on the common organisation of the market in hops (1) shall be
replaced by the following:
‘Article 17
1. The Regulations on the financing of the common agricultural
policy shall apply to the market in the products referred to in Article
1(1) from the date of implementation of the arrangements laid down
herein.
2. The aid referred to in Article 8 shall be subject to part
financing by the Community.
3. Member States shall pay the aid referred to in Article 12 to the
producers between 16 October and 31 December of the marketing
year in respect of which the aid is applied for.
4. The Commission shall, following the procedure laid down in
Article 20, adopt rules for the application of this Article’.
2. Article 6 of Council Regulation (EEC) No 404/93 of 13 February
1993 on the common organisation of the market in bananas (2) shall be
replaced by the following text:
‘Article 6
1. For the five years following the date of recognition, the
Member States shall grant recognised producer organisationsassistance to encourage their establishment and assist with theiradministrative operation.
2. Such aid:
— shall be, for the first, second, third, fourth and fifth years
respectively, 5 %, 5 %, 4 %, 3 % and 2 % of the value ofproduction marketed under the auspices of the producer
organisation,
— shall not exceed the actual cost of formation and administrative
operation of the organisation concerned,
— shall be paid in annual instalments for a maximum of seven years
following the date of recognition.
The value of each year's production shall be calculated on the basis
of:
— the annual volume actually marketed,
— the average producer prices obtained.
3. Producer organisations deriving from organisations which
already comply to a large extent with the conditions of thisRegulation shall qualify for aid under this Article only if they are
formed as the result of a merger enabling the objectives referred to
in Article 5 to be achieved more effectively. However, in such acase, the aid shall be granted only in respect of the cost of formationof the organisation (expenditure incurred in connection with thepreparatory work and the drawing up of the memorandum and
articles of association).
4. The aid referred to in this Article shall be notified to the
Commission in a report from the Member States at the close of each
financial year’.
3. Council Regulation (EC) No 2200/96 of 28 October 1996 on the
common organisation of the market in fruit and vegetables (
3) is hereby
amended as follows:
(a) Article 15(6) shall be replaced by the following:1999R1257 — EN — 03.07.1999 — 000.001 — 23
(1) OJ L 175, 4.8.1971, p. 1. Regulation as last amended by Regulation (EC)
No 1554/97 (OJ L 208, 2.8.1997, p. 1).
(2) OJ L 47, 25.2.1993, p. 1. Regulation as last amended by Regulation (EC)
No 1637/98 (OJ L 210, 28.7.1998, p. 28).
(3) OJ L 297, 21.11.1996, p. 1. Regulation as last amended by Regulation (EC)
No 857/1999 (OJ L 108, 27.4.1999, p. 7).
▼B
‘6. In regions of the Community where the degree of organisation
of producers is particularly low, Member States may be authorised,on a duly substantiated request, to pay producer organisations
national financial assistance equal to a maximum of half the
financial contributions of producers. This assistance shall beadditional to the operational fund.
For Member States where producer organisations market less than
15 % of the fruit and vegetable production and whose fruit andvegetable production represents at least 15 % of their totalagricultural output, the assistance referred to in the first subpara-graph may be partly reimbursed by the Community at the request of
the Member State concerned’.
(b) Article 52 shall be replaced by the following:
‘Article 52
1. Expenditure relating to the payment of the Community
withdrawal compensation and to Community financing of theoperational fund, the specific measures referred to in Article 17 andArticles 53, 54 and 55 and checks by experts of the Member Statesmade available to the Commission in application of Article 40(1)
shall be deemed to be intervention to stabilise agricultural markets
within the meaning of Article 1(2)(b) of ►
C1Regulation (EC) No
1258/1999 (*) ◄.
2. Expenditure relating to the aid granted by the Member States
in accordance with Article 14 and the second subparagraph ofArticle 15(6) shall be deemed to be intervention to stabilise
agricultural markets within the meaning of Article 1(2)(b) of
►
C1Regulation (EC) No 1258/1999 ◄. It shall be eligible for
part financing by the Community.
3. The Commission shall, following the procedure laid down in
Article 46, adopt rules for the application of paragraph 2 of thisArticle.
4. The provisions of Title VI shall apply without prejudice to the
application of Council Regulation (EEC) No 4045/89 of 21December 1989 on scrutiny by Member States of transactionsforming part of the system of financing by the Guarantee Section ofthe European Agricultural Guidance and Guarantee Fund andrepealing Directive 77/435/EEC (**)..
(*) OJ L 160, 26.6.1999, p. 103.
(**) OJ L 388, 30.12.1989, p. 17. Regulation as last amended by
Regulation (EC) No 3235/94 (OJ L 338, 28.12.1994, p. 16)’
Article 55
1. The following Regulations are hereby repealed:
— Regulation (EEC) No 4256/88,
— Regulations (EC) No 950/97, (EC) No 951/97, (EC) No 952/97 and
Regulation (EEC) No 867/90,
— Regulations (EEC) No 2078/92, (EEC) No 2079/92, (EEC) No 2080/
92,
— Regulation (EEC) No 1610/89
2. The following provisions are hereby deleted:
— Article 21 of Regulation (EEC) No 3763/91 (
1),
— Article 32 of Regulation (EEC) No 1600/92 (2),
— Article 27 of Regulation (EEC) No 1601/92 (3),
— Article 13 of Regulation (EEC) No 2019/93 (4).1999R1257 — EN — 03.07.1999 — 000.001 — 24
(1) OJ L 356, 24.12.1991, p. 1.
(2) OJ L 173, 27.6.1992, p. 1.
(3) OJ L 173, 27.6.1992, p. 13.
(4) OJ L 184, 27.7.1993, p. 1.
▼B
3. The Regulations repealed and provisions deleted under paragraphs
1 and 2 respectively shall continue to apply to actions approved by theCommission under the Regulations before 1 January 2000.
4. Council and Commission Directives adopting lists of less-favoured
areas or amending such lists in accordance with Article 21(2) and (3) ofRegulation (EC) No 950/97 shall remain in force unless further amendedin the framework of programmes.
Article 56
This Regulation shall enter into force on the seventh day following its
publication in the Official Journal of the European Communities .
It shall apply in relation to Community support as from 1 January 2000.
This Regulation shall be binding in its entirety and directly applicable in
all Member States.1999R1257 — EN — 03.07.1999 — 000.001 — 25
▼B
ANNEX
TABLE OF AMOUNTS
Article Subject Euro
8(2) Setting-up aid 25 000
12(1) Early retirement 15 000 (*) per transferor and year
150 000 total amount per transferor
3 500 per worker and year
35 000 total amount per worker
15(3) Minimum compensatory
allowance25 (**) per hectare of areas used for
agriculture
Maximum compensatory
allowance200 per hectare of areas used for
agriculture
16 Maximum payment 200 per hectare24(2) Annual crops 600 per hectare
Specialised perennial crops 900 per hectare
Other land uses 450 per hectare
31(4) Maximum annual premium
to cover loss of income
from afforestation
— for farmers or associa-
tions thereof725 per hectare
— for any other private law
person185 per hectare
32(2) Minimum payment 40 per hectare
Maximum payment 120 per hectare
(*) Subject to the total maximum per transferor, the maximum annual payments may be increased up to twofold
taking account of the economic structure of holdings in territories and the objective of speeding up theadjustment of agricultural structures.
(**) This amount may be reduced to take account of the particular geographical situation or economic structure of
holdings in certain territories and in order to avoid overcompensation in accordance with Article 15(1), secondindent.1999R1257 — EN — 03.07.1999 — 000.001 — 26