EN Official Journal of the European Union L 345/1

COMMISSION REGULATION (EC) No 1973/2004

of 29 October 2004

laying down detailed rules for the application of Council Regulation (EC) No 1782/2003 as regards the support schemes provided for in Titles IV and IVa of that Regulation and the use of land set aside for the production of raw materials

CONTENTS

Chapter 1 Scope and general provisions

Chapter 2 Specific quality premium for durum wheat

Chapter 3 Protein crop premium

Chapter 4 Crop-specific payment for rice

Chapter 5 Area payment for nuts

Chapter 6 Aid for starch potato

Chapter 7 Dairy premium and additional payments

Chapter 8 Aid for energy crops

Section 1 Definitions

Section 2 Contract

Section 3 Amendments and termination of contract

Section 4 Representative yields and quantities delivered

Section 5 Condition of payment of the aid

Section 6 Contract and obligations on applicants and first processors

Section 7 Securities

Section 8 Documents for sale in, transfer to or delivery to another member State or export

Section 9 Checks

Section 10 Exclusion from the scheme and evaluation

Chapter 9 Specific regional aid for arable crops

Chapter 10 Seed aid

Chapter 11 Arable crops area payment

Section 1 General provisions for the eligibility for arable crops area payment

Section 2 Special provisions covering certain arable crops

Section 3 Base areas, reference yields and ceilings

Section 4 Set aside

Section 5 Communications

Chapter 12 Sheep and goat premiums

Section 1 Direct payments

Section 2 Limits, Reserves and Transfers

Section 3 Additional payments

Section 4 General provisions

Chapter 13 Beef and veal payments

Section 1 Special premium (Article 123 of Regulation (EC) No 1782/2003)

Section 2 Deseasonalisation premium (Article 124 of Regulation (EC) No 1782/2003)

Section 3 Suckler cow premium (Articles 125 to 129 of Regulation (EC) No 1782/2003)

Section 4 Provisions common to the special premium and the suckler cow premium

Section 5 Slaughter premium (Article 130 of Regulation (EC) No 1782/2003)

Section 6 Additional payments (Articles 133 to 136 of Regulation (EC) No 1782/2003)

Section 7 General provisions

Section 8 Transitional and final provisions

Chapter 14 Single area payment scheme

Chapter 15 Complementary national direct payments

Chapter 16 Use of land set aside for the production of raw materials

Section 1 Scope and definitions

Section 2 Contract

Section 3 Amendment and termination of contracts

Section 4 Representative yields and quantities delivered

Section 5 Conditions of payment of the aid

Section 6 Obligations on collectors and applicants

Section 7 Securities

Section 8 Documents for sale in, transfer to, or delivery to another Member State or export

Section 9 Checks

Section 10 Exclusion from the scheme and notifications

Chapter 17 Hops area aid

Chapter 18 Final provisions

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to the Act of Accession of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia, and in particular the first paragraph of Article 41 thereof,

Having regard to 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 (1), and in particular Article 110 and Article 145(c), (d), (e) and (f) thereof,

Whereas:

(1) Titles IV and IVa of Regulation (EC) No 1782/2003 establish certain support schemes for farmers. The implementing rules of some of these schemes have already been laid down by the following acts: Commission Regulation (EEC) No 1686/72 of 2 August 1972 on certain detailed rules for aid for seed (2), Commission Regulation (EEC) No 1445/76 of 22 June 1976 specifying the different varieties of Lolium perenne L. (3), Commission Regulation (EC) No 1644/96 of 30 July 1996 laying down detailed rules for the grant of aid for certain grain legumes (4), Commission Regulation (EC) No 609/1999 of 19 March 1999 laying down detailed rules for granting aid to hop producers (5); 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 (6), Commission Regulation (EC) No 2342/1999 of 28 October 1999 laying down detailed rules for the application of Council Regulation (EC) No 1254/1999 on the common organisation of the market in beef and veal as regards premium schemes (7), Commission Regulation (EC) No 2461/1999 of 19 November 1999 laying down detailed rules for the application of Council Regulation (EC) No 1251/1999 as regards the use of land set aside for the production of raw materials (8), Commission Regulation (EC) No 2550/2001 of 21 December 2001 laying down detailed rules for the application of Council Regulation (EC) No 2529/2001 on the common organisation of the market in sheepmeat and goatmeat as regards premium schemes and amending Regulation (EC) No 2419/2001 (9), Commission Regulation (EC) No 2199/2003 of 16 December 2003 laying down transitional measures for the application in respect of the year 2004 of Council Regulation (EC) No 1259/1999 as regards the single area payment scheme for the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia (10), Commission Regulation (EC) No 2237/2003 of 23 December 2003 laying down detailed rules for the application of the support schemes provided for in Title IV of Council Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers (11). In the interests of clarity of Community legislation, it is appropriate to repeal those acts and replace them by one Regulation laying down the implementing rules for all those schemes, applicable from 1 January 2005.

(2) In order to ensure the efficient administration of those schemes, the area payments should be restricted to certain areas and conditions should be specified.

(3) Malta has a very large number of small farms, less than 0.3 hectare in size. To avoid many farmers in Malta being disqualified from the area based direct payments, the minimum size of application to area based direct payments in Malta should be fixed at 0.1 ha and, for the years 2005 and 2006, Malta should be allowed to derogate from Article 107(9) of Regulation (EC) No 1782/2003.

(4) The sowing of land for the sole purpose of qualifying for area payments should be prevented. Certain conditions relating to the sowing and cultivation of crops should be specified, in particular as regards durum wheat, protein plants and rice. Local standards should be respected in order to reflect the diversity of agricultural practice within the Community.

(5) Only one application for an area payment should be permitted in respect of any parcel cultivated in a given year except in cases where the area payment is given as a supplement to the same crop or the aid concerns the production of seeds. Area payments may be granted on crops subsidised under a scheme falling within the Community's structural or environmental policies.

(6) Supports schemes based on area aid provide that where the area for which aid is claimed exceeds the maximum guaranteed area or base areas or sub-base areas, the area per farmer for which aid is claimed is to be reduced proportionately in that year. It is therefore appropriate to establish the modalities and deadlines for the exchange of information between the Commission and the Member States in order to establish the coefficient of reduction and to inform the Commission of the areas for which the aid has been paid. The same provisions should apply for the reduction of the total amount of individual reference quantities in the event of application of Article 95(4) of Regulation (EC) No 1782/2003.

(7) Under Article 73 of Regulation (EC) No 1782/2003, the granting of the specific quality premium for durum wheat is subject to the use of certain quantities of certified seeds of varieties recognised, in the production zone, as being of high quality for the production of semolina or pasta. In order to ensure that those requirements are respected, the criteria for the variety screening method in each Member State should be fixed and the procedure for the establishment of the eligible varieties list as well as the minimum quantity of certified seeds to be used should be fixed.

(8) The short time between the adoption of Regulation (EC) No 1782/2003 and the entry into force of the specific quality premium for durum wheat makes it impossible to establish a list of eligible varieties for the granting of the aid in the year 2005 according to the envisaged screening method. It is therefore necessary for Member States to establish a transitional list based on a selection of current varieties.

(9) In some regions, the protein crops are traditionally sown in a mixture with cereals for agronomical reasons. The resulting crop principally consists of protein crops. For the purpose of granting the protein crop premium, the areas thus sown should therefore be considered as areas of protein crops.

(10) Standards for sweet lupins and tests to determine whether or not a sample of lupins is sweet should be laid down.

(11) In the interest of efficiency and good management of the aid scheme for nuts, the area aid granted should not be used to finance marginal plantations or isolated trees. A minimum plot size and a minimum tree density of a specialised orchard should therefore be defined. In order to facilitate the transition between the existing improvement plans which expire later than the introduction of the new aid scheme, it is appropriate to provide for transitional measures.

(12) The terms of payment as well as the crop specific payment for rice calculation depend not only on the base area or areas fixed for each producing Member State fixed by Regulation (EC) No 1782/2003, but also on the possible subdivision of those base areas into sub-base areas and on the objective criteria chosen by each Member State to perform this subdivision, on conditions in which the cultivated parcels are put into cultivation and on the minimum size of the base areas. As a consequence, detailed rules should be laid down for the establishment, the management and the cultivation modalities applicable to base areas and sub-base areas.

(13) The observation of a possible overrun of the base area referred to in Article 82 of Regulation (EC) No 1782/2003 implies a reduction of the crop-specific payment for rice. In order to set the calculation modalities for such a reduction, the criteria to be taken into consideration as well as applicable coefficients should be defined.

(14) The follow-up of the payments of the crop specific payment for rice presumes that the Commission has been forwarded certain information related to the cultivation of base areas and sub-base areas. For that purpose, the detailed information that the Member States should communicate to the Commission as well as the deadlines for such communications should be determined.

(15) Articles 93 and 94 of Regulation (EC) No 1782/2003 provide for an aid to farmers producing potatoes intended for the manufacture of potato starch subject to a cultivation contract and within the quota limit established by Council Regulation (EC) No 1868/94 of 27 July 1994 establishing a quota system in relation to the production of potato starch (12). The conditions for the granting of the aid should therefore be established and, where applicable, cross references should be made to the existing provisions concerning the quota system provided for in Regulation (EC) No 1868/94.

(16) Articles 95 and 96 of Regulation (EC) No 1782/2003 provide that the dairy premium and additional payment are paid to producers. Council Regulation (EC) No 1788/2003 of 29 September 2003 establishing a levy in the milk and milk products sector (13) provides for specific provisions in case of inactivity. It is therefore appropriate to provide, when a natural or legal person holding an individual reference quantity no longer meets the conditions referred to in Article 5(c) of Regulation (EC) No 1788/2003 during the twelve-month period preceding 31 March of the year concerned, for an exclusion from the benefit of the premium and payment.

(17) Articles 88 to 92 of Regulation (EC) No 1782/2003 provide for a new aid scheme for energy crops to be granted to farmers. In line with Regulation (EC) No 2461/1999, which excludes sugarbeet from the aid, the cultivation of sugarbeet should be excluded from the aid scheme for energy crops.

(18) The terms of eligibility for that aid should be laid down. For that purpose, it should be laid down that a contract must be concluded between the producer and the first processor with respect to the agricultural raw materials concerned. The conditions where processing is carried out by the farmer on the holding should also be defined.

(19) To ensure that the raw material is processed into the specified energy product, first processors should lodge a security, despite the fact that the aid is granted not to first processors but to farmers. The security should be high enough to prevent any risk that the raw materials are ultimately diverted from their destination. In addition, in order to make the control system for the scheme effective, sales of raw materials and of semi-processed products should be limited to a maximum of two before final processing.

(20) An explicit distinction should be made between the applicant's obligations, which end once the total quantity of raw material harvested is delivered, and the obligations incumbent on first processors, which commence on delivery and end with the final processing of the raw materials into energy products.

(21) Certain transport operations within Community territory involving raw materials and products derived therefrom should be subject to controls entailing the use of T5 control copies to be issued in accordance with Commission Regulation (EEC) No 2454/93 of 2 July 1993 laying down provisions for the implementation of Council Regulation (EEC) No 2913/92 establishing the Community Customs Code (14). Provision should be made for alternative evidence should the T5 control copy be lost as a result of circumstances for which the first processor is not responsible.

(22) Article 98 of Regulation (EC) No 1782/2003 provides for a reduction of the specific regional aid for arable crops when the total amount of aid claimed exceeds the fixed ceiling. The modalities for the calculation of the reduction coefficient should therefore be established.

(23) Article 99 of Regulation (EC) No 1782/2003 provides for the possibility of direct aid being granted for the production of one or more seed species.

(24) That aid may be granted only for the production of basic seed or certified seed and these products should be clearly defined by reference to the Directives on certification and marketing of seeds: Council Directive 66/401/EEC of 14 June 1966 on the marketing of fodder plant seed (15), Council Directive 66/402/EEC of 14 June 1966 on the marketing of cereal seed (16), and Council Directive 2002/57/EC of 13 June 2002 on the marketing of seed of oil and fibre plants (17).

(25) To make controls possible, basic seed and certified seed should be produced under growing contracts or growing declarations which will be joined to the single application and seed establishments and breeders should be officially approved or registered. The necessary measures should be laid down for cases where a seed establishment or a breeder from one Member State grows seed in another Member State.

(26) For administrative reasons, aid should, in each Member State, be granted only in respect of products harvested on the territory of that Member State.

(27) Under Annex XI to Regulation (EC) No 1782/2003, production aid is payable for basic and certified seed of varieties of Cannabis sativa L. with a tetrahydrocannabinol content not exceeding 0.2 %. In order to ensure uniform application throughout the Community of the rules for granting the aid, the list of the varieties of Cannabis sativa L. eligible for aid set up in Annex II to Commission Regulation (EC) No 796/2004 of 21 April 2004 laying down detailed rules for the implementation of cross-compliance, modulation and the integrated administration and control system provided for in of Council Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers (18) should be used for that purpose.

(28) Article 108 of Regulation (EC) No 1782/2003 defines the land that is eligible for arable crops area payments. That Article authorises certain exceptions under the control of the Member States which do not undermine the effectiveness of the arrangements laid down in that Regulation. In order to avoid any such risk, suitable measures should be laid down to keep the total area of eligible land at the current level and to prevent any appreciable increase therein. Those measures may in certain cases involve deeming previously eligible areas ineligible as an offsetting measure.

(29) Member States where maize is not a traditional crop may make silage grass eligible for the arable crops area payments. Accordingly, it is necessary to define what is meant by silage grass.

(30) Article 106 of Regulation (EC) No 1782/2003 subjects the area payment for flax and hemp grown for fibre to the conclusion of a contract or to a commitment as referred to in Article 2(1) of Council Regulation (EC) No 1673/2000 of 27 July 2000 on the common organisation of the markets in flax and hemp grown for fibre (19). Provision should be made for a copy of the contract or the commitment to be sent to the competent authorities of the Member State responsible for the administration of payment applications. It should also be ensured that the varieties of flax and hemp grown for fibre are those listed in the Common Catalogue of Varieties of Agricultural Plant Species as fibre plants and, in the case of flax in particular, as ‘fibre flax’ Moreover, in the case of hemp, the tetrahydrocannabinol content of the authorised varieties may not exceed 0.2 %. A list of eligible varieties for flax should therefore be drawn up, the eligible varieties for hemp being listed in Annex II to Regulation (EC) No 796/2004. To provide firmer guarantees in the case of hemp, the use of certified seed should also be required.

(31) Article 109 of Regulation (EC) No 1782/2003 requires producers of cereals, oilseeds and protein plants to complete sowing by 31 May at the latest. In certain cases, sowing may be put off until after 31 May because of the climate. The deadline for sowing and for submitting applications should be extended for certain crops in certain regions. However, such extensions should not adversely affect the effectiveness of the support system or undermine the control system introduced by Chapter 4 of Title II of Regulation (EC) No 1782/2003.

(32) In order to ensure that the processing industry receives regular supplies of sweetcorn throughout the marketing year, producers should be able to spread their sowings over a longer period. The final date for sowing sweetcorn should therefore be deferred to 15 June.

(33) It is appropriate to provide that a minimum quantity of certified durum wheat seed is to be used in the case of the durum wheat supplement and special aid. In view of the diversity of agricultural practice within the Member States and within regions thereof, the setting of the minimum quantity should be left to the Member States concerned.

(34) For the purpose of Article 103 of Regulation (EC) No 1782/2003, what is meant by irrigation should be defined.

(35) The areas to be taken into account with a view to assessing any overshoot in the base area and the rules for determining the extent of such overshoots should be specified. Where a separate base area is established for maize, irrigated areas or silage grass, special rules should be laid down as regards the areas to be taken into account with a view to calculating any overshoot in the base area in question. The rules for determining any overshoot in the base area should ensure that the base area is complied with in all cases. The way the overshoot is to be calculated in respect of the maximum guaranteed areas for durum wheat should also be specified. The procedure to be followed for establishing overshoot of the ceiling of the payments referred to in Article 102(2) of Regulation (EC) No 1782/2003 should also be specified.

(36) In the event of application of Article 71 of Regulation (EC) No 1782/2003, eligibility for arable crops area payments is conditional on an obligation on the producers concerned to set aside part of the area on their holdings. Detailed implementing rules capable of ensuring that the scheme has the necessary effectiveness should be laid down. To that end, provision should be made for the areas counting as set-aside to be comparable with those counting for the purposes of calculating the regional base area. The legume crops referred to in the second indent of Article 107(3) of Regulation (EC) No 1782/2003 should be defined.

(37) Under Article 107(6) and in the event of application of Article 66 of Regulation (EC) No 1782/2003, detailed rules should be established regarding land voluntarily set-aside. Those rules should be consistent with the overall system introduced by Regulation (EC) No 1782/2003.

(38) The criteria for eligibility for sheep and goat premiums provided for in Chapter 11 of Title IV of Regulation (EC) No 1782/2003, and in particular the conditions required, need to be laid down.

(39) Article 113(2) of Regulation (EC) No 1782/2003 provides for the granting of a premium to goatmeat farmers in certain areas of the Community. The areas in question should therefore be determined in accordance with the criteria laid down in that provision.

(40) Under Article 114(1) of Regulation (EC) No 1782/2003 farmers whose holdings have at least 50 % of their area used for agriculture situated in less-favoured areas may qualify for a supplementary premium. Article 113(2) makes reference to the specific geographical zones where goatmeat farmers meet the necessary conditions to qualify for the goat premium. Provisions should be made for a declaration to be provided by farmers meeting those criteria to prove that at least half of the land they are using for agricultural production is located in less-favoured areas or in areas which qualify for the goat premium.

(41) For the purpose of control on eligibility for the correct level of ewe premium, Member States should draw up an inventory of farmers marketing sheep's milk or sheep's milk products.

(42) With a view to implementing the system of individual limits as introduced by Articles 116, 117 and 118 of Regulation (EC) No 1782/2003, the existing administrative rules may continue to be applied as regards, in particular, the use of rights granted free of charge, the use of normal rights including minimum use, the temporary leasing and transfer of rights, the notification of changes on individual ceiling and the transfer of rights through the national reserve. Some of those rules are specific provisions for exceptional and duly justified circumstances such as, regarding the use of rights, the small farmers and farmers participating in extensification programs and early retirement schemes, and, for the transfer purpose, the inheritance of premiums rights and the case of farmers using only publicly or collectively owned land for grazing.

(43) The Commission is to monitor the new arrangements and as a result it needs to be properly provided by the Member States with the essential information regarding the implementation of the premium rules.

(44) If applicable, detailed information on the national rules on, and the implementation of, the additional payments should be forwarded to the Commission.

(45) Title IV Chapter 12 of Regulation (EC) No 1782/2003 provides for beef and veal payments. The criteria for eligibility, and in particular the conditions required for those payments, need to be laid down.

(46) The objectives of the regional ceiling and of the stocking density dictate that the special premium may no longer be applied for in respect of the same age bracket for those animals affected by the application of these two measures. For the purposes of the deseasonalisation premium, those animals should be deemed to have qualified for the special premium.

(47) Provision should be made for the administrative document laid down in Article 123(3)(b) of Regulation (EC) No 1782/2003 to be drawn up and issued at national level. In order to take account of particular administrative and control conditions in the Member States, different forms of administrative document should be allowed.

(48) Article 123(3)(a) and Article 130(1) of Regulation (EC) No 1782/2003 lay down a retention period as a condition for granting the special premium and the slaughter premium. It is therefore necessary to define and quantify that period.

(49) The arrangements for granting the special premium at the time of slaughter should be consistent with the arrangements for granting the slaughter premium. The types of documents which are to accompany the animal until slaughter dispatch or export should be specified. In order to take account of the specific features of the form of granting at the time of slaughter, the age conditions for steers and the method of presentation of the carcase for adult bovine animals should be laid down.

(50) The conditions for granting the deseasonalisation premium should be laid down, in accordance with the arrangements for granting the slaughter premium. The Commission should determine, on the basis of available information, which Member States meet the conditions for applying this premium scheme.

(51) The concept of suckler cow laid down in Article 125 of Regulation (EC) No 1782/2003 should be defined. In that respect, the same breeds should be kept as those under Regulation (EC) No 2342/1999. Moreover, the existing essential requirements may continue to be applied, in particular as regards the average milk yield and the additional national premium.

(52) The existing administrative rules may continue to be applied as regards in particular the individual ceilings, the notifications on the individual ceilings and the national reserve, the rights obtained free of charge, the use of rights, the transfer and temporary leasing of rights, the transfers through the national reserve.

(53) The Commission should determine, on the basis of available information, which Member States meet the conditions for applying the special scheme laid down in Article 129 of Regulation (EC) No 1782/2003. The special arrangements for granting the premium should be specified.

(54) The method for calculating the stocking density should be determined. A date should be laid down for taking the milk reference quantity into consideration.

(55) The stocking density for the extensification payment scheme should include all bovine animals aged six months and over present on the holding. Special rules are therefore required for counting animals and for the producer's statement of participation in the scheme. Provision should be made for using the computerised database referred to in Regulation (EC) No 1760/2000 of the European Parliament and of the Council of 17 July 2000 establishing a system for the identification and registration of bovine animals and regarding the labelling of beef and beef products and repealing Council Regulation (EC) No 820/97 (20).

(56) Steps should be taken to ensure that the extensification payment is not granted to farmers who artificially comply with the average stocking rates required for the grant of the extensification payment.

(57) The procedures for determining, on the basis of available information, which Member States meet the conditions in Article 132(4) of Regulation (EC) No 1782/2003 for granting the extensification payment to dairy cows should be laid down. The special arrangements for granting the premium should be specified. A minimum retention period should be laid down.

(58) Specific provisions should be laid down as regards the application of the rules on periods, dates and time limits to the retention period.

(59) In the interests of simplification, the ‘livestock’ aid application provided for in the integrated system should be taken to represent application for the slaughter premium, provided that it contains all the elements needed to justify payment of the premium and that the animal is slaughtered in the same Member State or in another Member State, or exported.

(60) It should be possible to use the computerised database referred to in Regulation (EC) No 1760/2000 to facilitate the management of the slaughter premium, on condition that the Member State concerned considers that the database offers adequate assurances as to the accuracy of the data it contains for the purposes of the payment of premiums.

(61) The slaughter premium for calves is conditional on a maximum weight limit. A standard type of carcase presentation should therefore be laid down, to which this maximum weight applies.

(62) Detailed information on the national rules on and implementation of the additional payments should be forwarded to the Commission.

(63) To ensure that farmers receive payments as quickly as possible, provision should be made for granting advances. However, in view of the application of the national or regional ceilings, steps should be taken to ensure that the advance does not exceed the definitive payment. Provision should therefore be made to allow Member States to reduce the percentage of the advance for the premium schemes subject to those ceilings.

(64) Regulation (EC) No 1782/2003 lays down penalties for the illegal use or holding of substances or products not authorised by the relevant veterinary legislation. In the case of repeated infringements, determination of the duration of penalties should be left to the Member States, which are better placed to judge the true gravity of the offence committed.

(65) It is necessary to fix the date determining the elements to be taken into consideration for the application of the special premium and suckler cow premium schemes. In order to ensure sound and consistent administration, that date should, as a general rule, be the date of the submission of applications. However, with respect to the special premium paid on slaughter, special rules should be laid down in order to avoid carry-overs from one year to the next with a view to obtaining a higher premium. As regards the slaughter premium, the date of slaughter or of export is a better indication of whether the operations concerned have actually been carried out.

(66) The exchange rate applicable on the date of the operative event for the premiums should be fixed in such a way as to ensure in principle that such premiums do not undergo any sharp fluctuations on conversion into national currency due to the exchange rate on a single date.

(67) Provision should be made for the Member States to be subject to certain notification obligations. To facilitate the transmission and analysis of the data, a consistent format for submitting that data should be laid down.

(68) In order to facilitate the change to the new scheme, transitional provisions are needed for the obligation to mark and identify animals.

(69) Article 143b of Regulation (EC) No 1782/2003 allows the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia (the new Member States) to replace the direct payments with a single payment (‘the single area payment scheme’). The Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Poland and Slovakia have made that choice. Therefore detailed rules for the application of the single area payment scheme should be laid down.

(70) In accordance with the second subparagraph of Article 143b(5) of Regulation (EC) No 1782/2003 and in order to avoid managing numerous applications that would entail payments per holding lower than EUR 50, the Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland and Slovakia have requested the authorisation to set the minimum size of eligible area par holding at a level higher than 0.3 ha.

(71) The Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Poland and Slovakia have estimated the part of their utilised agricultural area which has been maintained in good agricultural condition on 30 June 2003 and have proposed to adjust it in accordance with the minimum size of eligible area per holding.

(72) Article 143c of Regulation (EC) No 1782/2003 provides for the possibility in the new Member States of complementing direct aid paid to a farmer, subject to authorisation by the Commission. The general modalities for implementing this possibility should be established.

(73) Article 55(b) and the first indent of Article 107(3) of Regulation (EC) No 1782/2003 provide for exemption from set-aside if the land is used for producing materials for the manufacture within the Community of products not primarily intended for human or animal consumption, provided that effective control systems are applied.

(74) The cultivation of sugarbeet, Jerusalem artichokes or chicory roots on land set aside should not be ruled out under certain conditions. Such crops cannot qualify for area payments in view of the risk of affecting the market in sugar. Care should nonetheless be taken to ensure that such crops comply with the rules governing the use of set-aside land.

(75) The terms of eligibility for this scheme must be laid down. To this end it should be laid down that a contract must be concluded between the producer and the collector or first processor with respect to the agricultural raw materials concerned. Conditions should also be laid down for cases where processing is carried out by the farmer on the holding.

(76) To guarantee conformity with point 7 of the 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 Council Decision 93/355/EC (21), detailed implementing rules must be laid down to reduce, where necessary, the quantity of by-products which may be produced for human or animal consumption if the total quantity of those by-products exceeds 1 million metric tonnes annually, expressed in soya bean meal equivalents.

(77) To ensure that the raw material is processed into the specified end product, collectors or first processors must lodge a security, even though the aid is granted to farmers. In addition, to make the control system for the scheme effective, the number of processors should be limited.

(78) A clear distinction must be made between the applicant's obligations, which end once the total quantity of raw material harvested is delivered, and the obligations, including the requirement concerning securities, incumbent on collectors and first processors, which commence on delivery and end with the final processing of the raw materials into end products.

(79) Certain transport operations within Community territory involving raw materials and products derived therefrom should be subject to controls entailing the use of declarations and T5 control copies to be issued in accordance with Regulation (EEC) No 2454/93. Provision should be made for alternative evidence if the T5 control copy is not returned to the competent authorities of the collectors or first processors as a result of circumstances for which they are not responsible. In the interest of efficiency and good management of the aid scheme, provisions should be laid down to govern checks.

(80) Apart from the eligibility criteria laid down in Article 110o of Regulation (EC) No 1782/2003 for the hops area aid, some additional criteria should be established in order to en ensure that the aid if granted to areas on which hops is cultivated under normal cultivation conditions. The concept of an area ‘planted with hops’ should be defined at Community level so as to ensure that the areas for which the additional payment is made are calculated in the same way. It is necessary to lay down the way in which the total sum per Member State available for the additional payments is distributed over the eligible areas.

(81) A time limit should be set for committing the payment in respect of the measures listed in Article 7(1) (a) to (d) of Council Regulation (EEC) No 1696/71 of 26 July 1971 on the common organisation of the market in hops (22) by the recognised hop producer groups and the Commission should be informed about the way the payment has been used. Any amount not committed within a certain time period should be paid back. It is necessary to lay down the way in which the total sum per Member State available for the payment to recognised hop producer groups is distributed.

(82) The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Direct Payments,

HAS ADOPTED THIS REGULATION:

CHAPTER 1

SCOPE AND GENERAL PROVISIONS

Article 1

Subject matter and scope

1. This Regulation lays down detailed rules for the implementation of the following supports schemes provided for in Titles IV and IVa of Regulation (EC) No 1782/2003:

(a) specific quality premium for durum wheat provided for in Title IV Chapter 1 of that Regulation;

(b) protein crop premium provided for in Title IV Chapter 2 of that Regulation;

(c) crop-specific payment for rice provided for in Title IV Chapter 3 of that Regulation;

(d) area payment for nuts provided for in Title IV Chapter 4 of that Regulation;

(e) aid for energy crops provided for in Title IV Chapter 5 of that Regulation;

(f) aid for starch potato provided for in Title IV Chapter 6 of that Regulation;

(g) dairy premium and additional payments provided for in Title IV Chapter 7 of that Regulation;

(h) specific regional aid for arable crops provided for in Title IV Chapter 8 of that Regulation;

(i) seed aid provided for in Title IV Chapter 9 of that Regulation;

(j) arable crops area payment provided for in Title IV Chapter 10 of that Regulation;

(k) sheep and goat premiums provided for in Title IV Chapter 11 of that Regulation;

(l) beef and veal payments provided for in Title IV Chapter 12 of that Regulation;

(m) grain legumes aid provided for in Title IV Chapter 13 of that Regulation;

(n) single area payment scheme provided for in Article 143b of that Regulation;

(o) complementary national direct payments provided for in Article 143c of that Regulation;

(p) hops area aid provided for in Title IV Chapter 10d of that Regulation.

2. This Regulation lays down detailed rules as regards the use of land set aside for the production of raw materials under the single payment scheme provided for in Title III of Regulation (EC) No 1782/2003 and under arable crops area payment provided for in Title IV Chapter 10 of that Regulation.

Article 2

Conditions for the payment

1. The direct payments referred to in Article 1(a), (b), (c), (e), (h), (i), (j), (m) and (p) shall be granted only for the areas, per each type of crop, which have been the subject of application in respect of at least 0.3 hectare, where each cultivated parcel exceeds the minimum size set by the Member State within the limit provided for in Article 14(4) of Regulation (EC) No 796/2004.

In the case of Malta, the direct payments referred to in Article 1(a), (b), (c), (e), (h), (i), (j), (m) and (p) shall be granted only for the areas, per each type of crop, which have been the subject of application in respect of at least 0.1 hectare, where each cultivated parcel exceeds the minimum size set by the Member State within the limit provided for in Article 14(4) of Regulation (EC) No 796/2004.

2. The direct payment referred to in Article 1(a), (b), (c), (h) and (j) shall be granted only for the areas entirely sown and on which all normal cultivation conditions have been performed in accordance with local standards.

However, in the case of the specific quality premium for durum wheat provided for in Title IV Chapter 1 of Regulation (EC) No 1782/2003 and of arable crops payment provided for in Title IV Chapter 10 of that Regulation, 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 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 other purpose up to this growing stage.

3. In a given year, no more than one application for an area payment under a scheme financed pursuant to Article 1(2)(b) of Council Regulation (EC) No 1258/1999 (23) may be made in respect of any cultivated parcel.

However:

(a) any cultivated parcel which is covered in respect of the same year by an application for specific quality premium for durum wheat provided for in Title IV Chapter 1 of Regulation (EC) No 1782/2003 or protein crop premium provided for in Title IV Chapter 2 of that Regulation may be the subject of an application for arable crops payments provided for in Title IV Chapter 10 of Regulation (EC) No 1782/2003;

(b) any cultivated parcel which is covered in respect of the same year by an application for crop-specific payment for rice provided for in Title IV Chapter 3 of Regulation (EC) No 1782/2003 or protein crop premium provided for in Title IV Chapter 2 of that Regulation may be the subject of an application for seed aid provided for in Title IV Chapter 9 of Regulation (EC) No 1782/2003;

(c) any cultivated parcel which is covered in respect of the same year by an application for aid for energy crops provided for in Title IV Chapter 5 of Regulation (EC) No 1782/2003 may be the subject of an application for arable crops area payment provided for in Title IV Chapter 10 of Regulation (EC) No 1782/2003, without prejudice to the second subparagraph of Article 90 of Regulation (EC) No 1782/2003, or may be the subject of an application for crop specific payment for rice provided for in Title IV Chapter 3 of Regulation (EC) No 1782/2003;

(d) any cultivated parcel which is covered in respect of the same year by an application for arable crops payments referred to in Title IV Chapter 10 of Regulation (EC) No 1782/2003 may be the subject of an application for seed aid provided for in Title IV Chapter 9 of Regulation (EC) No 1782/2003.

4. Land used to produce raw materials referred to in Article 55 (b) and in the first indent of Article 107 (3) of Regulation (EC) No 1782/2003 or cultivated under the energy crop aid provided for in Title IV Chapter 5 of that Regulation shall not be eligible for Community aid provided for in Title II Chapter VIII of Council Regulation (EC) No 1257/1999 (24), with the exception of support granted in respect of the costs of planting fast-growing species as provided for in the second subparagraph of Article 31(3) of that Regulation.

Raw materials referred to in Article 55 point b) and 107 (3) first indent of Regulation (EC) No 1782/2003 grown on land set aside and intermediate products, end products, co-products and by-products derived therefrom shall not be eligible for any financing by the Guarantee Section of the European Agricultural Guidance and Guarantee Fund pursuant to Article 1(2) point a) and b) of Regulation (EC) No 1258/1999.

5. For the purpose of the protein crop premium provided for in Title IV Chapter 2 of Regulation (EC) No 1782/2003 and arable crops area payment provided for in Title IV Chapter 10 of that Regulation, ‘sweet lupins’ shall means those varieties of lupins producing seed comprising not more than 5 % bitter seeds. The bitter seed content shall be calculated in accordance with the test set out in Annex I to this Regulation.

Article 3

Communications

The Member States shall communicate the following data to the Commission by electronic transmission:

(a) by 15 September of the year concerned at the latest: the available data on the areas, or the quantities in the case of the dairy premium and additional payment provided for in Articles 95 and 96 of Regulation (EC) No 1782/2003, for which the aid has been claimed for that calendar year, where the case may be subdivided by sub-base area;

(b) by 31 October of the year concerned at the latest: definitive data on the areas or quantities referred in point (a), taking into account checks already carried out;

(c) by 31 July of the following year at the latest: the final data corresponding to the areas or quantities for which the aid has actually been paid for the year concerned, after, where applicable, the deduction of the reductions in area provided for in Title IV Chapter 1 of Regulation (EC) No 796/2004.

The areas shall be expressed in hectares to two decimal places. The quantities shall be expressed in tonnes to three decimal places.

Article 4

Coefficient of reduction

1. The coefficient of reduction of area in the case referred to in Articles 75, 78(2), 82, 85, 89(2), 98, 143 and 143b(7) of Regulation (EC) No 1782/2003 or of the quantities and the objective criteria in the case referred to in Article 95(4) of that Regulation shall be fixed at the latest by 15 November of the year concerned on the basis of the data communicated in accordance with Article 3(b) of this Regulation.

2. In the cases referred to in Article 75, Article 82, Article 85, Article 95(4), Article 98, Article 143 and Article 143b(7) of Regulation (EC) No 1782/2003, the Member States shall communicate to the Commission, by 1 December of the year concerned at the latest, the coefficient of reduction applied and, in the case referred to in Article 95(4) of that Regulation, the objective criteria applied.

CHAPTER 2

SPECIFIC QUALITY PREMIUM FOR DURUM WHEAT

Article 5

Variety screening

1. Member States listed in Article 74(1) of Regulation (EC) No 1782/2003 shall establish the list of durum wheat varieties eligible for the special quality premium provided for in Article 72 of that Regulation in accordance with the variety screening method laid down in paragraphs 2 to 5 of this Article.

2. Member States shall, at least every two years, identify at least two representative varieties. The representative varieties shall be the most certified durum wheat varieties.

3. Member States shall analyse durum wheat varieties according to the following quality parameters and assign to each parameter the relevant weighting:

(a) protein content (40 %);

(b) gluten quality (30 %):

(c) yellow index (20 %);

(d) specific weight or weight of one thousand kernels (10 %).

The sum of the averages of the quality parameters referred to in (a) to (d) of the first subparagraph, multiplied by the indicated value in percentage, shall constitute the quality index of the varieties.

Each Member State shall compare, over a period of at least two years, the quality indexes of the durum wheat varieties with those of the representative varieties at regional level. The varieties to be examined shall be those which are registered in the national catalogue of each Member State, with the exclusion of those varieties for which no analytical data are available for the last three years because they are not longer used or certified.

To that end, based on the average quality index of 100 attributed to the representative varieties, each Member State shall calculate, for each of the quality parameters provided for in points (a) to (d) of the first subparagraph, the percentage to be assigned to the other durum wheat varieties in comparison with the index of 100. Only durum wheat varieties with an index equal to or higher than 98 shall be eligible for the specific quality premium for durum wheat.

4. A Member State may exclude from the list of eligible varieties the varieties which have an average rate of loss of vitreous aspect of durum wheat (‘mitadinage’) exceeding 27 %.

5. Varieties which are registered in the national catalogue of another Member State may also be examined for their eligibility.

Article 6

Analysis methods

1. The analysis methods of the protein content, specific weight and the rate of loss of vitreous aspect of durum wheat (‘mitadinage’) shall be those laid down in Commission Regulation (EC) No 824/2000 (25).

2. The yellow index shall be measured in accordance with the ICC 152 method or an equivalent recognised method.

3. The gluten quality shall be measured in accordance with the ICC 158 method or according to the ICC 151 method.

Article 7

Quantity of certified seeds

Member States shall fix, before 1 October of the year preceding the year in respect of which the specific quality premium for durum wheat is granted, the minimum quantity of seed, certified in accordance with Directive 66/402/EEC (26), to be used in accordance with the current agricultural practices in the production zone concerned.

Article 8

Publications and communications

1. Member States shall publish the list of selected varieties which are eligible at national or regional level to the special quality premium for durum wheat, by 1 October at the latest for winter varieties, and by 31 December at the latest for spring varieties, of the year preceding the year in respect of which the premium is granted.

2. Member States shall communicate to the Commission, not later than one month after the dates provided for in paragraph 1, the list referred to in paragraph 1 as well as, if amended, the minimum quantity of certified seed to be used.

Article 9

Validity

1. The varieties included in the list referred to in Article 8(1) shall be eligible for the special quality premium for durum wheat for periods of five years starting from the date of their first inclusion in that list.

2. The eligibility of each variety may be extended for a period of five years, based on the results of the qualitative analyses carried out during the second and third year of the five-year eligibility period.

Article 10

Transitional measures

1. Member States shall publish the list of selected varieties which are eligible for the special quality premium for durum wheat in respect of the year 2005, by 1 October 2004 at the latest for winter varieties and by 31 December 2004 at the latest for spring varieties.

2. Member States shall establish the list referred to in paragraph 1 by eliminating from the list of varieties which are registered in the national catalogue the varieties which have not been certified in 2003 and 2004 and those which do not satisfy at least two of the four following parameters:

(a) a minimum protein content of 11.5 %;

(b) a minimum specific weight of 78 kg/hl or a minimum weight of one thousand kernels of 42 g;

(c) a maximum rate of loss of vitreous aspect of durum wheat (‘mitadinage’) of 27 %;

(d) a minimum gluten content of 10 %.

3. The lists of varieties which are eligible for the premium in 2005 and 2006 may include varieties which are in the list of selected varieties of another Member State on the basis of the results of the qualitative analyses carried out by that other Member State.

CHAPTER 3

PROTEIN CROP PREMIUM

Article 11

Mixture of cereals and protein crops

In regions where protein crops are traditionally sown in a mixture with cereals, the protein crop premium shall be paid at the request of the applicant provided that he proves, to the satisfaction of the competent authorities of the Member State concerned, that the protein crops are predominant in the mixture. The areas concerned shall not be eligible for the specific regional aid for arable crops provided for in Article 98 of Regulation (EC) No 1782/2003.

CHAPTER 4

CROP SPECIFIC PAYMENT FOR RICE

Article 12

Dates for sowings

To be eligible for the crop specific payment for rice, the declared area shall be sown at the latest:

(a) on 30 June preceding the harvest in question, for Spain and Portugal,

(b) on 31 May for the other producing Member States referred to in Article 80(2) of Regulation (EC) No 1782/2003.

However, in French Guiana, the areas shall be sown respectively for each of the two sowing cycles, at the latest on 31 December and 30 June preceding each of them and the crop specific payment for rice shall be granted on the basis of the average of the areas sown for each of the two sowing cycles

Article 13

Coefficient of reduction

The coefficient of reduction of the crop specific payment for rice referred to in Article 82 of Regulation (EC) No 1782/2003 shall be calculated in accordance with Annex II to this Regulation.

Article 14

Communications

1. Member States shall communicate to the Commission, in accordance with Article 3, the following information:

(a) by 15 September at the latest: (i) the list of the varieties registered in the national catalogue, classified according to the criteria defined in item 2 of Annex I to Council Regulation (EC) No 1785/2003 (27), (ii) the sown areas for which applications for crop-specific payment for rice have been submitted, by variety of rice and by base area and sub-base area, using the model set out in Annex III(A) to this Regulation, including the overruns of the base areas and sub-base areas;

(b) by 31 October at the latest, the modifications with regard to the sown areas for which applications for the crop-specific payment for rice have been submitted, communicated in accordance with subparagraph (a) and using the model form set out in Annex III(B);

(c) by 31 July at the latest, the information concerning the sown areas for which the crop-specific payment for rice has actually been paid for the past marketing year, in accordance with the calculation method defined in Annex II and using the model form set out in Annex III(C).

2. For French Guiana, the information concerning the sown areas shall be communicated on the basis of the average of the areas sown during the two sowing cycles.

3. Member States may revise annually the subdivision of their base area or areas in sub-base areas and the objective criteria on which those subdivisions are based. They shall communicate that information to the Commission by 15 May preceding the harvest in question at the latest.

CHAPTER 5

AREA PAYMENT FOR NUTS

Article 15

Eligibility conditions for Community aid

1. For the purposes of this Chapter, an orchard shall mean a homogeneous and cohesive area planted with nut trees which is not intersected by other crops or plantations and which is geographically continuous. Isolated trees or a single row of nut trees planted alongside roads or other crops shall not be considered an orchard.

By way of derogation from the first subparagraph, Member States may allow the presence of trees other than nut trees within a limit corresponding to 10 % of the number of trees laid down in paragraph 3. Moreover, Member States may allow the presence of chestnut trees if the number of trees laid down in paragraph 3 is respected by the eligible nut trees.

2. Only orchards producing nuts and meeting the conditions provided for in paragraphs 3 and 4 of this Article at the date to be fixed in accordance with Article 11 of Regulation (EC) No 796/2004 shall be eligible for the area payment provided for in Article 83 of Regulation (EC) No 1782/2003.

In the case of an orchard where different types of nuts are grown and when the aid is differentiated in function of the products, the eligibility conditions and the level of the aid specific to the nut type which is predominant shall apply.

3. The minimum plot size of orchards may not be less than a surface area of 0.10 hectare.

The number of nut trees per hectare of orchards may not be less than:

(i) 125 for hazelnuts;

(ii) 50 for almonds;

(iii) 50 for walnuts;

(iv) 50 for pistachios;

(v) 30 for locust beans.

4. Member States may fix the minimum plot size and tree density at a higher level than that laid down in paragraph 3 in accordance with objective criteria and in order to take into account the specific characteristic of the areas and productions concerned.

Article 16

Eligibility conditions for national aid

Article 15 shall apply to the national aid provided for in Article 87 of Regulation (EC) No 1782/2003.

Without prejudice to Article 87 of Regulation (EC) No 1782/2003, a Member State may establish further eligibility criteria, provided that such criteria are consistent with the environmental, rural, social and economic objectives of the aid scheme and do not introduce discrimination between producers. Member States shall establish the necessary arrangements in order to control that those eligibility criteria are respected by farmers.

Article 17

Communications

1. Member States shall communicate to the Commission in any case before the date for lodging an application fixed by Member States in accordance with Article 11 of Regulation (EC) No 796/2004 and at the latest:

(a) by 31 March, the higher levels and the criteria referred to in Article 15(4) and the additional criteria referred to in Article 16;

(b) by 15 May, where a Member State differentiates the aid in accordance with Article 83(2) of Regulation (EC) No 1782/2003, the level of the area payment per products and/or the modified national guaranteed area (‘the NGA’).

2. Any modification of the information to be communicated to the Commission pursuant to paragraph 1 shall apply to the following year and shall be immediately communicated by the Member State concerned to the Commission accompanied by the objective criteria justifying any such modification.

Article 18

Transitional measures

1. Member States may determine whether and under what conditions the improvement plans referred to in Article 86(2) of Regulation (EC) No 1782/2003 may be ceased before their normal expiry and relative areas become eligible under the scheme provided for in Chapter 4 of Title IV of that Regulation.

2. When setting the conditions referred to in paragraph 1, the Member State shall ensure that:

(a) the plan is not ceased before the complete implementation of an annual period;

(b) the initial objectives of the plan have been reached to the satisfaction of the Member State.

CHAPTER 6

AID FOR STARCH POTATO

Article 19

Eligibility

The aid for starch potato provided for in Article 93 of Regulation (EC) No 1782/2003 shall be granted for potatoes which are covered by a cultivation contract as provided for in Article 3 of Commission Regulation (EC) No 2236/2003 (28), on the basis of the net weight of the potatoes determined by one of the methods described in Annex I to Commission Regulation (EC) No 2235/2003 (29) and the starch content of the potatoes delivered, in accordance with the rates fixed in Annex II to that Regulation.

No aid for starch potato shall be granted for potatoes whose starch content is less than 13 %, except where the second subparagraph of Article 5(3) of Regulation (EC) No 2236/2003 applies.

Article 20

Minimum price

The aid for starch potato shall be subject to the requirement that proof is provided that a price not less than that referred to in Article 4a of Regulation (EC) No 1868/94 has been paid at the delivered-to-factory stage in accordance with the rates fixed in Annex II to Regulation (EC) No 2235/2003.

Article 10(2) of Regulation (EC) No 2236/2003 shall apply.

Article 21

Payment

1. Without prejudice to Article 28 of Regulation (EC) No 1782/2003, the aid for starch potato shall be paid, by the Member State on whose territory the potato starch was manufactured, per farmer once all his quantities for the marketing year have been delivered to the starch-producing undertaking within four months from the date on which the proof referred to in Article 20 of this Regulation has been provided and the conditions referred to in Article 19 of this Regulation have been respected.

2. Member States may grant advances, as from 1 December of the marketing year, based on the different parts of the quantity of starch potatoes by farmer delivered to the starch-producing undertaking for that marketing year. Each advance payment shall be granted for the quantity of starch potatoes delivered for which the proof referred to in Article 20 has been provided and the conditions referred to in Article 19 have been respected.

3. The conversion rate to be used to express aid for starch potato in national currency shall be the one applied under Article 20 of Regulation (EC) No 2236/2003.

CHAPTER 7

DAIRY PREMIUM AND ADDITIONAL PAYMENT

Article 22

Cases of inactivity

1. When a natural or legal person holding an individual reference quantity does not come within the definition of producer provided for in Article 5(c) of Regulation (EC) No 1788/2003 during the twelve-month period ending on 31 March of the year concerned, no dairy premiums and additional payment shall be paid for the year concerned, unless he proves before the deadline for the application and to the satisfaction of the competent authority that production has been taken up.

2. Paragraph 1 shall not apply in cases of force majeure and in duly justified cases temporarily affecting the production capacity of the producers concerned and recognised by the competent authority.

CHAPTER 8

AID FOR ENERGY CROPS

SECTION 1

Definitions

Article 23

Definitions

For the purposes of this Chapter:

(a) ‘applicant’ means any farmer cultivating the areas referred to in Article 88 of Regulation (EC) No 1782/2003 with a view to obtaining the aid provided for in that Article;

(b) ‘first processor’ means any user of agricultural raw materials who undertakes the first processing thereof with a view to obtaining one or more of the products referred to in the second paragraph of Article 88 of Regulation (EC) No 1782/2003.

SECTION 2

Contract

Article 24

Use of raw material

1. Any agricultural raw material with the exception of sugarbeet may be grown on the areas covered by the aid provided for in Article 88 of Regulation (EC) No 1782/2003 provided that they are intended primarily for use in the production of the energy products referred to in the second paragraph of that Article.

The economic value of the energy products obtained by processing raw materials shall be higher than that of all other products intended for other uses and obtained by such processing, as determined by the valuation method set out in Article 39(3).

2. The raw materials referred to in paragraph 1 shall be covered by a contract in accordance with Article 90 of Regulation (EC) No 1782/2003 under the conditions laid down in this Section.

3. Applicants shall deliver all raw materials harvested to a first processor who shall take delivery of them and ensure that an equivalent quantity of such raw materials is used within the Community for the manufacture of one or more energy products as referred to in the second paragraph of Article 88 of Regulation (EC) No 1782/2003.

Where the first processor uses the raw material actually harvested to manufacture an intermediate product or a by-product, he may use an equivalent quantity of such intermediate products or by-products to manufacture one or more end products as referred to in the first subparagraph.

In the case referred to in the second subparagraph, the first processor shall so inform the competent authority with whom the security is lodged. Where such equivalent quantity is used in a Member State other than that in which the raw material is harvested, the competent authorities of the Member States concerned shall inform each other of the details of such transaction.

4. In accordance with the national provisions governing contractual relations, the first processor may delegate to a third party the collection of the raw material from the farmer applying for the aid. The delegate shall act in the name and on behalf of the processor who remains solely responsible with regard to the obligations laid down by this Chapter.

Article 25

Derogations

1. Notwithstanding Article 24(2) and (3), Member States may permit applicants to:

(a) use short rotation forest trees covered by ex 0602 90 41 or all the cereals or the oilseeds covered by CN codes 1201 00 90, 1205 10 90, 1205 90 00, 1206 00 91 and 1206 00 99 harvested: (i) as fuel for heating their agricultural holding, (ii) for the production on the holding of power or biofuels;

(b) process into biogas covered by CN code 2711 29 00 on their holdings all raw materials harvested.

2. In the cases referred to in paragraph 1, applicants shall:

(a) undertake, by way of a declaration in place of the contract referred to in Article 26, to use or process directly the raw material covered by the declaration; Articles 26 to 40 shall apply mutatis mutandis to those cases.

(b) have all the raw material harvested weighed by a body or an undertaking designated by the Member State and keep separate accounts for the raw material used and the products and by-products resulting from its processing; however, in the case of cereals and oilseeds, and of straw, and where the entire plant is used, weighing may be replaced by volumetric measurement of the raw material.

3. Member States applying paragraph 1 shall introduce adequate control measures to ensure that the raw material is directly used on the holding or is processed into biogas falling within CN code 2711 29 00.

4. Cereals and oilseeds used in accordance with paragraph 1(a) shall be denatured in accordance with the method laid down by the Member State. The Member States may authorise the oil produced by processing oilseeds in accordance with paragraph 1(a)(ii) to be denatured instead of the oilseeds themselves, provided that such denaturing takes place immediately after the seeds are processed into oil and that the use to which the seeds are put is checked.

Article 26

Contract

1. In support of their aid applications, applicants shall submit to their competent authorities the contracts they have concluded with a first processor.

2. Applicants shall ensure that the contracts specify the following:

(a) the names and addresses of the parties to the contract;

(b) the duration of the contract;

(c) the species of all raw materials concerned and the area planted with each species;

(d) any conditions applicable to the delivery of the forecast quantities of raw materials;

(e) an undertaking to fulfil their obligations pursuant to Article 24(3);

(f) the intended primary end uses for the raw material, each end use complying with the conditions laid down in Articles 24(1) and 39(3).

3. Applicants shall ensure that the contracts are concluded in time to allow the first processor to deposit a copy with the competent authority of the applicant within the time limits laid down in Article 34(1).

4. For the purposes of control, Member States may require each applicant to conclude a single supply contract for each raw material.

SECTION 3

Amendment and termination of contracts

Article 27

Amendment and termination of contracts

Where the parties to a contract amend or terminate the contract after the applicant has lodged an aid application, the applicant may maintain such aid application only on condition that, with a view to allowing the requisite inspections to be carried out, he informs the competent authority of such amendment or termination, no later than the closing date set in the Member State concerned for amendment of the application.

Article 28

Exceptional circumstances

Without prejudice to Article 27, where an applicant informs his competent authority that, owing to exceptional circumstances, he will be unable to supply all or part of the raw materials specified in the contract, the competent authority may, after obtaining sufficient evidence of such exceptional circumstances, authorise such amendments to the contract as appear justified, or may authorise its termination.

Where the land covered by a contract is reduced as a result of amendments thereto or where a contract is terminated, the applicant shall forfeit his right to the aid referred to in this Chapter for the areas withdrawn from the contract.

Article 29

Changes in end uses

Without prejudice to Article 27, first processors may alter the intended primary end uses of raw materials, as referred to in Article 26(2)(f), once the raw materials under contract have been delivered to them and once the conditions laid down in Article 31(1) and in the first subparagraph of Article 34(3) have been fulfilled.

Changes in end uses shall be made in compliance with the conditions laid down in the second subparagraph of Article 24(1) and in Article 39(3).

The first processors shall give prior notice to their competent authorities with a view to the requisite controls.

SECTION 4

Representative yields and quantities delivered

Article 30

Representative yields

Each year the Member States shall establish, using an appropriate procedure, representative yields which must be attained, and shall inform the applicants concerned thereof.

Article 31

Quantities to be delivered

1. Applicants shall declare the total quantity of raw materials harvested by species to their competent authorities and shall confirm the quantities of raw materials delivered and the parties to whom such deliveries are made.

2. The actual quantities to be delivered by the applicants to the first processors shall at least correspond to the representative yield.

However, in duly justified cases, the Member States may, by way of an exception, accept a quantity up to 10 % below the representative yield.

Furthermore, where the competent authorities have authorised the amendment or termination of contracts in accordance with Article 28, they may, where it seems justified to do so, reduce the quantities that applicants are required to deliver under the first subparagraph of this paragraph.

SECTION 5

Conditions of payment of the aid

Article 32

Payment

1. The aid may be paid to applicants before the raw material is processed. However, such payments shall be made only where the requisite quantities of raw materials pursuant to this Chapter have been delivered to the first processor and where:

(a) the declaration provided for in Article 31(1) has been made;

(b) a copy of the contract has been deposited with the first processor's competent authority in accordance with Article 34(1) and the conditions provided for in Article 24(1) have been fulfilled;

(c) the competent authority has received proof that the full security provided for in Article 35(2) has been lodged;

(d) the competent authority responsible for the payment has checked that the conditions laid down in Article 26 have been met in respect of each application.

2. In the case of biennial crops, where the raw materials are harvested, and hence delivered, in the course of the second year of cultivation only, payment shall be made in each of the two years following the date of conclusion of the contract as provided for in Article 26, on condition that the competent authorities establish that:

(a) the obligations referred to in paragraph 1(b), (c) and (d) of this Article are fulfilled as from the first year of cultivation;

(b) the obligations referred to in paragraph 1(a) of this Article are fulfilled, and the information referred to in the first subparagraph of Article 34(3) is communicated, in the second year of cultivation.

In respect of the first year of cultivation, payments shall be made only if the competent authorities have received proof that the security provided for in Article 35(2) has been lodged. In respect of the second year of cultivation, payment may be made without security being lodged.

3. In the case of permanent or multi-annual crops, the payment of the aid shall be made each year from the date of conclusion of the contract. The conditions laid down in paragraph 2 shall be applied mutatis mutandis.

SECTION 6

Contract and obligations on applicants and first processors

Article 33

Number of processors

Energy products shall be obtained at the most by a second successive processor.

Article 34

Contract and obligations on applicants and first processors

1. First processors shall deposit a copy of the contract with their competent authorities under a timetable to be established by the Member State concerned and no later than the closing date for the submission of aid applications for the year in question in the Member State concerned.

Where applicants and first processors amend or terminate contracts prior to the date referred to in Article 27 in a given year, the first processors shall deposit with their competent authorities a copy of the amended or terminated contract, no later than that date.

2. First processors shall provide their competent authorities with the requisite information on the processing chain in question, in particular as regards prices and the technical processing coefficients to be used for determining the quantities of end products that may be obtained, as referred to in the second subparagraph of Article 40(1).

3. First processors who have taken over the raw materials from applicants shall inform their competent authorities of the quantities of raw materials received, specifying the species, the name and address of the party to the contract who delivered the raw materials, the place of delivery and the contract reference, within a time limit to be set by the Member States that allows the payments to be made within the period specified in Article 28 of Regulation (EC) No 1782/2003.

Where the Member State of the first processor is not the same Member State in which the raw materials have been grown, the competent authority of the first processor shall inform the competent authority of the applicant of the total quantities of raw materials delivered, within 40 working days of receipt of the information referred to in the first subparagraph.

SECTION 7

Securities

Article 35

First processors

1. First processors shall lodge a full security as provided for in paragraph 2 with their competent authorities by the closing date for submission of payment applications for the year in question in the Member State concerned.

2. The securities to be lodged in respect of each raw material shall be calculated by multiplying the sum of all areas covered by a contract signed by the first processor concerned and used to produce that raw material, by the rate of EUR 60 per hectare.

3. Where contracts are amended or terminated in accordance with Articles 27 or 28, the securities lodged shall be adjusted accordingly.

4. A percentage of the security shall be released for each raw material on condition that the competent authority of the first processor concerned is in possession of proof that the quantity of raw material in question has been processed in compliance with the requirement laid down in Article 26(2)(f), account being taken, where necessary, of any changes pursuant to the Article 29.

Article 36

Primary and subordinate requirements

1. The following obligations shall constitute primary requirements within the meaning of Article 20 of Commission Regulation (EEC) No 2220/85 (30):

(a) the obligation to process the quantities of raw materials principally into the end products specified in the contract. The raw materials shall be processed by 31 July of the second year following that of harvest;

(b) the obligation that products be accompanied by a T5 control copy in accordance with Articles 37 and 38 of this Regulation.

2. The following obligations, incumbent on first processors, shall constitute subordinate requirements within the meaning of Article 20 of Regulation (EEC) No 2220/85:

(a) the obligation to take delivery of all raw materials delivered by applicants pursuant to Article 24(3) of this Regulation;

(b) the obligation to deposit copies of contracts in accordance with Article 34(1) of this Regulation;

(c) the obligation to provide the information required in accordance with the first subparagraph of Article 34(3) of this Regulation;

(d) the obligation to lodge a security in accordance with Article 35(1) of this Regulation.

SECTION 8

Documents for sale in, transfer to or delivery to another Member State or export

Article 37

T5 control copy

Where first processors sell or transfer to second processors in other Member States intermediate products covered by contracts as provided for in Article 26, the products shall be accompanied by T5 control copies issued in accordance with Regulation (EEC) No 2454/93.

One of the following shall be entered under the heading ‘Other’ in box 104 of the T5 control copies:

— Producto destinado a su transformación o entrega de acuerdo con lo establecido en el articulo 26 del Reglamento (CE) no 1973/2004 de la Comisión;

— Použito pro zpracování nebo dodávku v souladu s článkem 26 nařízení Komise (ES) 1973/2004

— Skal anvendes til forarbejdning eller levering i overensstemmelse med artikel 26 i Kommissionens forordning (EF) nr. 1973/2004

— Zur Verarbeitung oder Lieferung gemäß Artikel 26 der Verordnung (EG) Nr. 1973/2004 der Kommission zu verwenden

— Προς χρήση για μεταποίηση ή παράδοση σύμφωνα με το άρθρο 26 του κανονισμού (ΕΚ) αριθ. 1973/2004 της Επιτροπής

— To be used for processing or delivery in accordance with Article 26 of Commission Regulation (EC) No 1973/2004

— Kasutamiseks töötlemisel või tarnimisel vastavalt komisjoni määruse (EÜ) nr 1973/2004 artiklile 26

— À utiliser pour transformation ou livraison conformément aux dispositions de l'article 26 du règlement (CE) no 1973/2004 de la Commission

— Da consegnare o trasformare conformemente all'articolo 26 del regolamento (CE) n. 1973/2004 della Commissione

— Izmantot pārstrādei vai piegādei saskaņā ar Komisijas Regulas (EK) Nr. 1973/2004 26. panta nosacījumiem

— Naudoti perdirbimui arba pristatymui pagal Komisijos reglamento (EB) Nr. 1973/2004 26 straipsnio nuostatas

— A Bizottság 2004/1973/EK rendelete szerint feldolgozásra, vagy átadásra használandó

— Te gebruiken voor verwerking of aflevering overeenkomstig artikel 26 van Verordening (EG) nr. 1973/2004 van de Commissie

— Do wykorzystania w procesie przetwórstwa bądź do dostawy zgodnie z postanowieniami zawartymi w art. 26 rozporządzenia Komisji (WE) nr 1973/2004

— A utilizar para transformação ou entrega em conformidade com o artigo 26 do Regulamento (CE) n.o 1973/2004 da Comissão

— Na spracovanie alebo dodávku v súlade s článkom 26 nariadenia Komisie (ES) č. 1973/2004

— Se uporablja za predelavo ali dostavo v skladu s členom 26 Uredbe Komisije (ES) št. 1973/2004

— Käytetään jalostamiseen tai toimittamiseen komission asetuksen (EY) N:o 1973/2004 26 artiklan mukaisesti

— Används till bearbetning eller leverans i enlighet med artikel 26 i kommissionens förordning (EG) nr 1973/2004.

Article 38

Alternatives to the T5 control copy

If the T5 control copy is not returned to the office of departure of the body responsible for control in the Member State in which the first processor is established two months after expiry of the deadline for the processing of raw materials provided for in Article 36(1)(a), as a result of circumstances for which the first processor is not responsible, the following documents may be accepted as alternatives to the T5 control copy:

(a) purchase invoices for the intermediate products;

(b) statements by the second processor verifying the final processing of the raw materials into energy products as referred to in Article 88 of Regulation (EC) No 1782/2003;

(c) certified photocopies from the second processor of accounting documents proving that processing has been carried out.

SECTION 9

Checks

Article 39

Record keeping

1. The competent authority of the Member State shall specify the records to be kept by processors and the frequency thereof, which shall be at least monthly.

Such records shall comprise at least the following information:

(a) the quantities of different raw materials purchased for processing;

(b) the quantities of raw materials processed and the quantities and types of end products, co-products and by-products obtained therefrom;

(c) wastage during processing;

(d) the quantities destroyed and the reasons for such destruction;

(e) the quantities and types of products sold or transferred by the processor and the prices obtained;

(f) where applicable, the names and addresses of the subsequent processors.

2. The competent authority of the first processor shall check that the contract submitted complies with the conditions laid down in Article 24(1). Where those conditions are not met, the applicants' competent authorities shall be notified.

3. With a view to calculating the economic value of the products referred to in Article 24(1), the competent authorities concerned shall, on the basis of the information referred to in Article 34(2), compare the sum of the values of all energy products with the sum of the values of all other products intended for other uses and obtained from the same processing operation. Each value shall equal the relevant quantity multiplied by the average of the ex-factory prices recorded during the previous marketing year. Where such prices are not available, the competent authorities shall determine the relevant prices, in particular on the basis of the information referred to in Article 34(2).

Article 40

Checks at the premises of processors

1. The competent authorities of the Member States in which processing takes place shall verify compliance with Article 24(1) at the premises of at least 25 % of the processors located in their territory, selected on the basis of a risk analysis. Such checks shall involve at least:

(a) a comparison of the sum of the values of all the energy products with the sum of the values of all other products intended for other uses and obtained from the same processing operation;

(b) analysis of the processor's production system, comprising physical checks and inspections of commercial documents, with a view to verifying, in the case of processors, that deliveries of raw materials, end products, co-products and by-products tally.

For the purpose of the checks referred to in point (b) of the first subparagraph, the competent authorities shall base themselves in particular on the technical processing coefficients for the raw materials concerned. Where such coefficients exist for exports in Community legislation, they shall be applied. Where they do not but other coefficients do exist in Community legislation, they shall be applied. In all other cases, inspection shall rely mainly on the coefficients generally accepted by the processing industry.

2. For the processing operations referred to in Article 25, checks shall be carried out on 10 % of applicants selected on the basis of a risk analysis taking account of:

(a) aid amounts;

(b) the number of agricultural parcels and the area covered by an aid application;

(c) developments since the previous year;

(d) the findings of checks made in past years;

(e) other parameters to be defined by the Member States, based on the representativeness of the declarations submitted.

3. Where the checks referred to in paragraph 2 reveal irregularities in at least 3 % of cases, the competent authority shall carry out additional checks during the year and shall consequently increase the percentage of farmers to be subject to an on-the-spot check the following year.

4. If it has been provided that certain elements of the checks referred to in paragraphs 1 and 2 may be carried out on the basis of a sample, that sample shall guarantee a reliable and representative level of inspection.

5. Every on-the-spot check shall be the subject of an inspection report signed by the inspector giving the details of the checks carried out. The report shall indicate in particular:

(a) the date of the check;

(b) the persons present;

(c) the period checked;

(d) the checking techniques used including, where applicable, reference to sampling methods;

(e) results of the check.

Article 41

Hemp production

The provisions relating to hemp referred to in Article 29 of Commission Regulation (EC) No 795/2004 (31) and in Article 33 of Regulation (EC) No 796/2004 shall apply.

Article 42

Additional measures and mutual assistance

1. The Member States shall take all further measures required for the proper application of this Chapter and shall give the mutual assistance needed for the purposes of checks required pursuant to this Chapter. Where this Chapter does not provide for appropriate reductions and exclusions, the Member States may apply appropriate national sanctions against market participants involved in the procedure for granting aid.

2. As far as necessary or as required by this Chapter, the Member States shall assist one another mutually to ensure effective controls, and enable the authenticity of documents submitted and the accuracy of the data exchanged to be verified.

SECTION 10

Exclusion from the aid for energy crops and evaluation

Article 43

Exclusion of raw materials from aid for energy crops and minimal cultivated area

1. The Member States may exclude any agricultural raw material from aid for energy crops where such materials raise difficulties from the viewpoint of controls, public health, the environment, criminal law, or a reduced rate of final energy products.

2. For any raw material referred to in Article 24, the Member States may set a minimum cultivated area.

Article 44

Evaluation

Before 15 October following the end of the year in respect of which the aid is granted, the Member States shall forward to the Commission all the information needed to evaluate the aid for energy crops.

Such information shall include, in particular:

(a) the areas corresponding to each species of raw material;

(b) the quantities of each type of raw material, end product, by-product and co-product obtained, with details of the type of raw material used;

(c) the measures taken under Article 25;

(d) the raw materials excluded from the aid for energy crops pursuant to Article 43(1) and the minimal cultivated areas referred to in Article 43(2).

CHAPTER 9

SPECIFIC REGIONAL AID FOR ARABLE CROPS

Article 45

Sowing date

To be eligible for the special regional aid for arable crops provided for in Article 98 of Regulation (EC) No 1782/2003, the declared area shall be sown by a date to be fixed by the Member States which shall not be later than 15 June.

CHAPTER 10

SEED AID

Article 46

Certified seeds

In the event of application of Article 99 of Regulation (EC) No 1782/2003, the aid shall be granted for production of basic and officially certified seed as defined by Directives 66/401/EEC, 66/402/EEC and 2002/57/EC and complying with the standards and conditions laid down in those Directives, in accordance with Articles 47 to 50 of this Regulation.

Article 47

Production of seeds

1. The seed shall be produced:

(a) either under a growing contract concluded between a seed establishment or a breeder and a seed grower,

(b) or directly by the seed establishment or the breeder; such production being attested by a growing declaration.

2. The seed establishments and breeders referred to in paragraph 1 shall be approved or registered by Member States. Approval or registration by a Member State shall be valid throughout the Community.

3. A seed establishment or a breeder growing seed or having seed grown in a Member State other than that in which approval or registration referred to in paragraph 2 took place shall supply the competent authorities of that other Member State, on request, with all the information required for checking entitlement to aid.

Article 48

Territorial eligibility

Each Member State shall grant aid only in respect of seed harvested on its territory during the calendar year in which the marketing year for which the aid was fixed begins.

The aid shall be granted to all seed growers under conditions which ensure equal treatment for beneficiaries irrespective of the place of their establishment within the Community.

Article 49

Marketing of seeds

Aid shall be granted only on condition that the seed has in fact been marketed for sowing by the recipient by 15 June of the year following the harvest at the latest. ‘Marketed’ shall mean holding available or in stock, displaying for sale, offering for sale, sale or delivery to another person.

Article 50

Cannabis sativa L. varieties

The varieties of Cannabis sativa L. eligible for aid under Article 99(4) of Regulation (EC) No 1782/2003 shall be those listed in Annex II to Regulation (EC) No 796/2004.

CHAPTER 11

ARABLE CROPS AREA PAYMENT

SECTION 1

General provisions for the eligibility for arable crops area payment

Article 51

Eligible land

1. For the purposes of Chapter 10 of Regulation (EC) No 1782/2003:

(a) ‘permanent pasture’ shall mean ‘permanent pasture’ within the meaning of Article 2(2) of Regulation (EC) No 796/2004;

(b) ‘permanent crops’ shall mean ‘permanent crops’ within the meaning of Article 2(c) of Regulation (EC) No 795/2004.

2. For the purposes of the first paragraph of Article 108 of Regulation (EC) No 1782/2003, land under permanent pasture in 2003 shall be:

(a) land declared by a farmer in his aid application for 2003 as being under permanent pasture, and

(b) land not declared by a farmer in his aid application for 2003, unless it can be shown that that land was not under permanent pasture in 2003.

3. Pursuant to the third paragraph of Article 108 of Regulation (EC) No 1782/2003, Member States may only derogate from the first paragraph of that Article only subject to the following conditions:

(a) for areas subject to a restructuring programme, defined as a ‘change to the structure and/or eligible area of a holding imposed by the public authorities’, Member States shall take action to prevent any significant increase in the total agricultural area eligible for arable area crops payment; this may in particular involve deeming previously eligible areas ineligible as an offsetting measure; areas newly declared eligible by the Member States under a restructuring programme shall not exceed the area newly declared ineligible under that programme by more than 5 %;

(b) in case of one or other form of public intervention, where such intervention results in a farmer growing crops on land previously regarded as ineligible for arable crops area payment in order to continue his normal agricultural activity and the intervention in question means that land originally eligible ceases to be so, Member Sates may not increase their total eligible agricultural area, either temporarily or permanently, by more than 0.1 % of their total base area;

(c) where farmers are able to give relevant and objective reasons for exchanging land ineligible for arable crops area payment for eligible land on their holdings, Member States shall check that there are no valid reasons for refusing such exchanges, in particular from the viewpoint of environmental risks, and shall provide proof in a plan submitted to the Commission that the total amount of eligible land remains unchanged; under no circumstances may exchanges result in any increase in the total area of eligible arable land on the holding; the Member States shall provide for a system for the prior notification and approval of such exchanges.

Article 52

Conditions for payment

Without prejudice to Article 2, arable crops area payments shall be paid solely on areas:

(a) located in regions climatically and agriculturally suitable for growing arable crops; the Member States shall have the power to decide that any region is not suitable for producing certain arable crops;

(b) on which the crop is maintained until at least the beginning of flowering under conditions of normal growth.

As regards durum wheat, crops shall in addition be cultivated in accordance with local standards at least until 30 June in respect of which the payment is granted, unless they are harvested at full maturity before that date.

Article 53

Regional amount

1. Where a producer's areas eligible for arable crops area payment are located in more than one region of production, the amount payable shall be determined by the location of each area covered by his application.

2. Member States that treat maize separately in regions where maize is grown principally for silage shall be authorised to apply the yield for a feed grain in that region to all areas under maize in the regions in question.

SECTION 2

Special provisions covering certain arable crops

Article 54

Silage grass

1. For the purposes of Article 100(3) of Regulation (EC) No 1782/2003, ‘silage grass’ shall mean the crop grown on areas mainly sown to herbaceous grasses and harvested green at least once a year with a view to preservation in an enclosed environment by anaerobic fermentation.

Areas registered for growing grass seed certified in accordance with Directive 66/401/EEC during the marketing year in question shall not qualify for arable crops area payments.

2. The provisions of this Chapter, with the exception of the condition relating to flowering in point (b) of the first paragraph of Article 52, shall apply to silage grass.

3. In the Member States that make provision for a specific area for silage grass as set out in Annex IV, farmers shall be eligible for area payments in respect of silage grass.

Article 55

Durum wheat

1. Aid applications in respect of durum wheat supplement and special aid laid down in Article 105 of Regulation (EC) No 1782/2003 shall be valid only where:

(a) an application for an area payment, as referred to in Article 101 of Regulation (EC) No 1782/2003, is submitted in respect of the same number of hectares under durum wheat;

(b) a minimum quantity of seed certified in accordance with Directive 66/402/EEC is used.

2. The Member States shall, before 1 October of the year preceding the year in respect of which the aid is granted, fix and notify to the farmers the minimum quantity of certified seed to be used in accordance with agricultural practice in the Member State concerned.

Article 56

Flax and hemp grown for fibre

1. The area payment for flax and hemp grown for fibre is subject to the following conditions:

(a) the submission of a copy of the contract or commitment referred to in the first paragraph of Article 106 of Regulation (EC) No 1782/2003 by 15 September of the year in respect of which the payment is granted at the latest or by an earlier date laid down by the Member State;

(b) the use of seed of the following varieties: (i) for flax grown for fibre, varieties listed in Annex V on 15 May of the year in respect of which the payment is granted; (ii) for hemp grown for fibre, varieties listed in Annex II to Regulation (EC) No Regulation (EC) No 796/2004 on 15 May of the year in respect of which the payment is granted and certified in accordance with Directive 2002/57/EEC (32).

2. For the purposes of granting the area payment for hemp grown for fibre, the Member States may fix the minimum sowing rate compatible with good hemp-growing practice.

Article 57

Sowing date

By way of derogation from Article 109 of Regulation (EC) No 1782/2003, the Member States may defer the final date for sowing to no later than 15 June for the crops listed in Annex VIII to this Regulation and in the zones, to be defined by the Member States concerned, located in the regions specified in that Annex.

SECTION 3

Base areas, reference yields and ceilings

Article 58

Irrigated and non-irrigated land

1. Where regionalisation plans referred to in Article 103 of Regulation (EC) No 1782/2003 provide for different yields for irrigated and non-irrigated land, the Member States shall lay down rules to determine whether or not areas are irrigated in the course of a marketing year. They shall in particular lay down:

(a) a list of arable crops on which area payments may be granted at the rate for the irrigated yield;

(b) a description of the irrigation equipment which the farmer must have at his disposal; such equipment must be commensurate with the area concerned and must allow for the supply of the water needed for the normal development of plants during their growth cycle;

(c) the relevant irrigation period.

2. Paragraph 1 shall not apply to ‘regadío’ production regions in Spain or other regions where irrigation is a historical feature linked to the parcels and allows them to be distinguished and listed.

Article 59

Base area overshoot

1. For the purposes of determining any overshoots in regional base areas in accordance with Article 102 of Regulation (EC) No 1782/2003, the competent authority of the Member State concerned shall take account of:

(a) the regional base area as set out in Annex IV to this Regulation;

(b) the sum of areas covered by applications for area payments submitted in respect of each crop, including, in the event of application of Article 71 of Regulation (EC) No 1782/2003, the corresponding compulsory set-aside.

Any voluntary set-aside shall be included with areas other than irrigated, other than under maize and/or other than under silage grass.

2. The sum of the areas covered by aid applications submitted shall not include areas, or parts thereof, covered by applications that administrative checks show to be clearly unjustified.

Where applicable, the area actually determined during on-the-spot checks pursuant to Article 23 of Regulation (EC) No 1782/2003 shall be taken into account.

3. Areas sown to arable crops in accordance with Chapter 10 of Title IV of Regulation (EC) No 1782/2003 and used in support of aid applications under Chapter 12 of Title IV of that Regulation shall be added to the sum of the areas covered by applications submitted, adjusted in accordance with paragraph 2.

4. The base area overshoot shall be calculated in accordance with the table in Annex VI.

Article 60

Durum wheat limited area overshoot

1. For the purposes of determining any overshoot in the limited area for durum wheat eligible for the supplement to the area payment laid down in Article 105(1) of Regulation (EC) No 1782/2003, the competent authorities of the Member States shall take account of the sum of the areas covered by applications for the supplement to area payments in respect of durum wheat, adjusted in accordance with Article 59(2) of this Regulation and, where applicable, reduced in accordance with Article 102 of Regulation (EC) No 1782/2003.

2. Paragraph 1 shall apply for the purposes of determining any overshoot in the limited areas eligible for the special aid for durum wheat set out in Article 105(3) of Regulation (EC) No 1782/2003.

Article 61

Definitive rate of areas overshoot and coefficient of reduction

1. Where the areas referred to in Articles 59 and 60 are found to be exceeded, the Member State concerned shall, by 31 October of the year concerned at the latest, determine the definitive rate of overshoot truncated to two decimal points.

2. The definitive rate of overshoot thus determined shall be used to calculate the proportional reduction in the area eligible for:

(a) the arable crop area payment in accordance with Article 102(1) of Regulation (EC) No 1782/2003;

(b) the supplement thereto and the special aid for durum wheat