5.

the following Chapter is inserted: ‘CHAPTER 6b INTEGRATION OF TOBACCO, OLIVE OIL, COTTON AND HOPS PAYMENTS IN THE SINGLE PAYMENT SCHEME Article 48c General rules 1. Where a Member State has made use of the option provided for in Article 71 of Regulation (EC) No 1782/2003 and decided to apply the single payment scheme in 2006, the rules laid down in Title III of Regulation (EC) No 1782/2003 and in Chapters 1 to 6 of this Regulation shall apply. 2. Where a Member State has applied the single payment scheme in 2005 and without prejudice to the third subparagraph of Article 71(1) of Regulation (EC) No 1782/2003, for the purposes of the establishment of the amount and the determination of payment entitlements in 2006 in the framework of the integration of tobacco, olive oil, cottons payments in the single payment scheme, Articles 37 and 43 of that Regulation shall apply subject to the rules established in Article 48d of this Regulation and, in case the Member State has made use of the option provided for in Article 59 of Regulation (EC) No 1782/2003, in Article 48e of this Regulation. 3. Where a Member State has applied the single payment scheme in 2005, the Member State shall ensure the respect of the national ceiling fixed in Annex VIII to Regulation (EC) No 1782/2003. 4. Where the case may be, Article 41(2) of Regulation (EC) No 1782/2003 shall apply to the value of all the existing payment entitlements in 2006, before integration of tobacco, olive oil, cotton and/or dairy payments, and to the reference amounts calculated for tobacco, olive oil, cotton and/or dairy payments. 5. Where a Member State has applied the single payment scheme in 2005, the percentage of reduction fixed by the Member States in accordance with Article 42(1) of Regulation (EC) No 1782/2003 shall apply in 2006 to the tobacco, olive oil, cotton reference amounts to be integrated in the single payment scheme. 6. The five-year period provided for in Article 42(8) of Regulation (EC) No 1782/2003 shall not restart for the payment entitlements coming from the national reserve whose amount has been recalculated or increased in accordance with Articles 48d and 48e of this Regulation. 7. For the purpose of the establishment of the payment entitlements in relation to cotton, tobacco and olive oil, the first year of application of the single payment scheme referred to in Articles 7(1), 12 to 17 and 20 shall be 2006. Article 48d Specific rules 1. If the farmer has not been allocated or has not bought payment entitlements by the last date for applying for the establishment of payment entitlements for 2006, he shall receive payment entitlements calculated in accordance with Articles 37 and 43 of Regulation (EC) No 1782/2003 for tobacco, olive oil, cotton payments. The first subparagraph shall apply also when the farmer has leased in payment entitlements for 2005 and/or 2006. 2. If the farmer has been allocated or has bought or received payment entitlements by the last date for applying for the establishment of payment entitlements for 2006, the value and number of his payment entitlements shall be recalculated as follows: (a) the number of payment entitlements shall be equal to the number of payment entitlements he owns, increased by the number of hectares established in accordance with Article 43 of Regulation (EC) No 1782/2003 for tobacco, olive oil, cotton payments granted in the reference period; (b) the value shall be obtained by dividing the sum of the value of the payment entitlements he owns and the reference amount calculated in accordance with Article 37 of Regulation (EC) No 1782/2003 for the areas which were granted tobacco, olive oil, cotton payments in the reference period by the number established in accordance with point (a) of this paragraph. Set-aside payment entitlements shall not be taken into account in the calculation referred to in the first subparagraph. 3. By way of derogation from Article 27, the contractual clause referred to in that Article may be inserted or modified in a lease contract by the date for lodging an application under the single payment scheme in 2006 at the latest. 4. Payment entitlements leased out before the date for lodging an application under the single payment scheme in 2006 shall be taken into account in the calculation referred to in paragraph 2. However, payment entitlements leased out via a contractual clause as referred to in Article 27 before 15 May 2004 shall be taken into account in the calculation referred to in paragraph 2 of this Article only if the lease conditions may be adjusted. Article 48e Regional implementation 1. Where a Member State has made use of the option provided for in Article 59(1) of Regulation (EC) No 1782/2003, all payment entitlements shall be increased by a supplementary amount corresponding to the increase of the regional ceiling in 2006, divided by the total number of payment entitlements allocated in 2005. 2. Where a Member State has made use of the option provided for in Article 59(1) and (3) of Regulation (EC) No 1782/2003, without prejudice to Article 48 of that Regulation, a farmer shall receive a supplementary amount per payment entitlement. The supplementary amount shall consist of the sum of the following: (a) the corresponding part of the increase of the regional ceiling divided by the total number of payment entitlements allocated in 2005; (b) the reference amount corresponding for each farmer to the remaining part of the increase of the regional ceiling divided by the number of payment entitlements that the farmer owns by the date for lodging an application for the single payment scheme for 2006 at the latest. However, in case of set aside entitlements, the farmer shall receive only the supplementary amount calculated according to point (a) per set aside entitlement.’;