4.

the following Chapter 6c is inserted before Chapter 7: ‘CHAPTER 6 C INTEGRATION OF THE FRUIT AND VEGETABLE SECTOR IN THE SINGLE PAYMENT SCHEME Article 48f General rules 1. For the purposes of the establishment of the amount and the determination of payment entitlements in the framework of the integration of the fruit and vegetable sector in the single payment scheme, Articles 37 and 43 of Regulation (EC) No 1782/2003 shall apply subject to the rules established in Article 48g 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 48h of this Regulation. 2. Without prejudice of Article 12(1) of Regulation (EC) No 795/2004, for allocating payments entitlements deriving from the integration of fruits and vegetables sector in the single payment scheme, Member States may proceed to the identification of the eligible farmers as from 1 January 2008. 3. As the case may be, Article 41(2) of Regulation (EC) No 1782/2003 shall apply to the value of all the payment entitlements existing before the integration of fruit and vegetable support and to the reference amounts calculated for fruit and vegetable support. 4. The percentage of reduction fixed by the Member State in accordance with Article 42(1) of Regulation (EC) No 1782/2003 shall apply to the reference amounts corresponding to fruit and vegetable products integrated in the single payment scheme. 5. 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 48g and 48h of this Regulation. 6. For the purpose of the application of Article 7(1), Articles 12 to 17, Article 20 and Article 27 of this Regulation in relation to the fruit and vegetable sector, the first year of application of the single payment scheme shall be the year of the determination by the Member State of the amounts and eligible hectares as referred to in point M of Annex VII to Regulation (EC) No 1782/2003, taking account of the optional transitional three years' period referred to in the third paragraph of that point. Article 48g Specific rules 1. If the farmer does not own payment entitlements or only owns set-aside entitlements or entitlements subject to special conditions by the last date for applying for the establishment of payment entitlements fixed in accordance with Article 12 of this Regulation, he shall receive payment entitlements calculated in accordance with Articles 37 and 43 of Regulation (EC) No 1782/2003 for fruit and vegetable. The first subparagraph shall also apply when the farmer has leased in payment entitlements between the first year of the application of the single payment scheme and the year of the integration of the fruit and vegetable sector. 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 fixed in accordance with Article 12 of this Regulation, the value and number of the payment entitlements he owns 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 fruit and vegetables, ware potatoes and nurseries; (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 fruit and vegetables by the number established in accordance with point (a) of this paragraph. Set-aside payment entitlements and payment entitlements subject to special conditions shall not be taken into account in the calculation referred to in this paragraph. 3. Payment entitlements leased out before the date for lodging an application under the single payment scheme fixed in accordance with Article 12 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 48h 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, farmers shall receive a number of payment entitlements equal to the number of new eligible hectares under fruit and vegetables, ware potatoes and nurseries, pursuant to Article 59(4) of that Regulation. The value of the payment entitlements is calculated in accordance with paragraphs 2 and 3 of Article 59 and paragraph 3 of Article 63 of that Regulation. The first year of application pursuant to Article 59(4) of that Regulation shall be 2008. 2. By way of derogation from the first subparagraph of paragraph 1, Member States may establish the additional number of entitlements per farmer on the basis of objective criteria in accordance with point M of Annex VII to Regulation (EC) No 1782/2003 for fruit and vegetables, ware potatoes and nurseries.’;