Joint Cases C‑333/15 and C‑334/15

María Pilar Planes Bresco

v

Comunidad Autónoma de Aragón

(Requests for a preliminary ruling from the Tribunal Supremo)

‛References for a preliminary ruling — Common agricultural policy — Integrated administration and control system for certain aid schemes — Regulation (EC) No 1782/2003 — Single payment scheme — Articles 43 and 44 — Payment entitlements based on areas — Hectares eligible for area aid — Permanent pasture — National legislation making the eligibility of permanent pasture areas which exceed the forage areas initially taken into account for the purposes of determining the payment entitlements subject to conditions that they be used for the purposes of rearing livestock on the farm’

Summary — Judgment of the Court (Eighth Chamber), 9 June 2016

Agriculture — Common agricultural policy — Single payment scheme — Concept of area eligible for aid — Permanent pasture — Included — Conditions

(Council Regulation No 1782/2003, as amended by Regulation No 2012/2006, Recitals 4 and 24 and Arts. 2(c), 3 to 5, and 44 ; Commission Regulation No 796/2004, Art. 2(2))

Regulation No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers and amending Regulations No 2019/93, No 1452/2001, No 1453/2001, No 1454/2001, No 1868/94, No 1251/1999, No 1254/1999, No 1673/2000, No 2358/71 and No 2529/2001, as amended by Regulation No 2012/2006, must be interpreted as precluding national legislation which prevents areas of permanent pasture declared by a farmer which exceed the area of permanent pasture initially taken into account for determining the amount of that farmer’s payment entitlements per hectare being taken into account as hectares eligible for area aid for an agricultural year, unless the farmer demonstrates that those areas are actually being used for the purposes of rearing livestock on the farm in that agricultural year.

It follows from Articles 2(c), 3, 4, and 5 of that regulation that the permanent pasture areas of an agricultural holding are eligible for area aid where they come within the agricultural area of that holding, and that maintaining them in good agricultural and environmental condition, in itself, amounts to an agricultural activity; the fact that the grass and other herbaceous forage, which, under Article 2(2) of Regulation No 796/2003 laying down detailed rules for the implementation of cross-compliance, modulation and the integrated administration and control system provided for in Regulation No 1782/2003, those areas must be used to produce, are not used directly for the purposes of rearing livestock on the farm is immaterial. That analysis is borne out by the objectives of Regulation No 1782/2003 and by the role of permanent pasture in achieving those objectives.

First, Regulation No 1782/2003 states, in recital 4 thereof, that permanent pasture has a positive environmental effect and that it is appropriate to adopt measures to encourage the maintenance of existing permanent pasture to avoid a massive conversion into arable land. In that regard, environmental protection, one of the essential objectives of the European Union, forms part of the common agricultural policy. Secondly, Regulation No 1782/2003, as is clear from recital 24 thereof, aims to replace the system of direct production aid with a system of direct aid for agricultural holdings, decoupled from production and paid directly to the farmers to supplement their income.

(see paras 43-47, 49, operative part)