27.

32003 R 1782: 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) No 1868/94, (EC) No 1251/1999, (EC) No 1254/1999, (EC) No 1673/2000, (EEC) No 2358/71 and (EC) No 2529/2001 (OJ L 270, 21.10.2003, p. 1) (a) in Article 1, after the second indent the following indent is inserted: ‘— a transitional simplified income support for farmers in the new Member States (hereinafter referred to as the “single area payment scheme”)’ (b) in Article 2 the following point (g) is added: ‘(g) “new Member States” means the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia.’ (c) after Title IV, the following Title IVa is inserted: ‘TITLE IVA IMPLEMENTATION OF SUPPORT SCHEMES IN THE NEW MEMBER STATES Article 143a Introduction of support schemes In the new Member States direct payments shall be introduced in accordance with the following schedule of increments expressed as a percentage of the then applicable level of such payments in the Community as constituted on 30 April 2004: — 25 % in 2004, — 30 % in 2005, — 35 % in 2006, — 40 % in 2007, — 50 % in 2008, — 60 % in 2009, — 70 % in 2010, — 80 % in 2011, — 90 % in 2012, — 100 % as from 2013. Article 143b Single Area Payment scheme 1. The new Member States may decide not later than the date of accession to replace the direct payments during the period of application referred to in paragraph 9 with a single area payment which shall be calculated according to paragraph 2. 2. The single area payment shall be made once a year. It shall be calculated by dividing the annual financial envelope established according to paragraph 3 by the agricultural area of each new Member State established according to paragraph 4. 3. For any new Member State, the Commission shall establish an annual financial envelope: — as the sum of the funds that would be available in respect of the calendar year concerned for granting direct payments in the new Member State, — according to the relevant Community rules and on the basis of the quantitative parameters, such as base areas, premium ceilings and Maximum Guaranteed Quantities (MGQ), specified in the Act of Accession and subsequent Community legislation for each direct payment, and — adjusted using the relevant percentage specified in Article 143a for the gradual introduction of direct payments. 4. The agricultural area of a new Member State under the single area payment scheme shall be the part of its utilised agricultural area which has been maintained in good agricultural condition at 30 June 2003, whether in production or not at that date, and, where appropriate, adjusted in accordance with the objective criteria to be set by that new Member State after approval by the Commission. “Utilised agricultural area” shall mean the total area taken up by arable land, permanent grassland, permanent crops and kitchen gardens as established by the Commission (EUROSTAT) for its statistical purposes. 5. For the purpose of granting payments under the single area payment scheme, all agricultural parcels corresponding to the criteria provided for in paragraph 4 shall be eligible. The minimum size of eligible area per holding for which payments may be requested shall be 0,3 ha. However, any new Member State may decide, on the basis of objective criteria and after approval by the Commission, to set the minimum size at a higher level not exceeding 1 ha. 6. There shall be no obligation to produce or to employ the factors of production. However, farmers may use the land referred to in paragraph 4 for any agricultural purpose. In the case of production of hemp falling within CN code 5302 10 00 , Article 5a(2) of Council Regulation (EC) No 1251/1999 ( *9 ) and Article 7b of Commission Regulation (EC) No 2316/1999 ( *10 ) as well as Article 52(1) of this Regulation shall apply. Any land benefiting from payments under the single area payment scheme shall be maintained in good agricultural condition compatible with the protection of the environment. As from 1 January 2005 the application of Articles 3, 4, 6, 7 and 9 shall be optional for the new Member States insofar as these provisions relate to statutory management requirements. 7. Where in a given year the single area payments in a new Member State would exceed its annual financial envelope, the national amount per hectare applicable in that new Member State shall be reduced proportionately by application of a reduction coefficient. 8. The Community rules on the integrated system laid down respectively in Council Regulation (EEC) No 3508/92 ( *11 ), and in particular Article 2 thereof, and in Chapter 4 of Title II of this Regulation, and in particular Article 18, shall apply to the single area payment scheme to the extent necessary. Accordingly, any new Member State choosing this scheme shall: — prepare and process farmers' annual aid applications. Such applications shall contain data on applicants and on declared agricultural parcels (identification number and area); — put in place a land parcel identification system so as to ensure that the parcels for which aid applications have been made can be identified and their area established, that the parcels concern agricultural land and that they are not the subject of another application; — have in place a computerised database for agricultural holdings, parcels and aid applications; — check the aid applications pertaining to the year 2004 in accordance with Articles 7 and 8 of Regulation (EEC) No 3508/92 and those pertaining to any year as from 2005 in accordance with Article 23 of this Regulation. The application of the single area payment scheme shall not in any way affect the obligation of any new Member State with regard to the implementation of Community rules on the identification and registration of animals as provided for by Council Directive 92/102/EEC ( *12 ) and Regulation (EC) No 1760/2000 of the European Parliament and of the Council ( *13 ). 9. For any new Member State the single area payment scheme shall be available for a period of application until the end of 2006 with the possibility of renewal twice by one year at the new Member State's request. Subject to the provisions of paragraph 11, any new Member State may decide to terminate the application of the scheme at the end of the first or the second year of the period of application with a view to applying the single payment scheme. New Member States shall notify the Commission of their intention to terminate by 1 August of the last year of application. 10. Before the end of the period of application of the single area payment scheme, the Commission shall assess the state of preparedness of the new Member State concerned to apply fully the direct payments. In particular, by the end of the period of application of the single area payment scheme, the new Member State shall have taken all necessary steps to set up the integrated system as referred to in Article 18 for running properly the direct payments in the form then applicable. 11. On the basis of its assessment, the Commission shall: (a) note that the new Member State can enter the system of direct payments applied in the Member States of the Community as constituted on 30 April 2004, or (b) decide to extend the application of the single area payment scheme by the new Member State for the period estimated necessary to allow for the necessary management and control procedures to be fully in place and to function properly. Before the end of the extended application period referred to in point (b), paragraph 10 shall apply. Until the end of the 5 year period of application of the single area payment scheme (i.e. 2008), the percentage rate set out in Article 143a shall apply. If the application of the single area payment scheme is extended beyond that date pursuant to a decision taken under point (b), the percentage rate set out in Article 143a for the year 2008 shall apply until the end of the last year of application of the single area payment scheme. 12. After the end of the period of application of the single area payment scheme, the direct payments shall be applied according to the relevant Community rules and on the basis of the quantitative parameters, such as base area, premium ceilings and Maximum Guaranteed Quantities (MGQ), specified in the Act of Accession ( *14 ) for each direct payment and subsequent Community legislation. The percentage rates set out in Article 143a for the relevant years shall subsequently apply. 13. New Member States shall inform the Commission in detail of the measures taken to implement this Article and in particular the measures taken pursuant to paragraph 7. Article 143c Complementary national direct payments and direct payments 1. For the purposes of this Article: “CAP-like national scheme” shall mean any national direct payment scheme applicable prior to the date of accession of the new Member States under which the support was granted to farmers in respect of production covered by one of the direct payments. 2. The new Member States shall have the possibility, subject to authorisation by the Commission, of complementing any direct payments up to: (a) with regard to all direct payments, 55 % of the level of direct payments in the Community as constituted on 30 April 2004 in 2004, 60 % in 2005 and 65 % in 2006 and from 2007 up to 30 percentage points above the applicable level referred to in Article 143a in the relevant year. However, the Czech Republic may complement direct payments in the potato starch sector up to 100 % of the level applicable in the Community as constituted on 30 April 2004. or (b) (i) with regard to direct payments other than the single payment scheme, the total level of direct support the farmer would have been entitled to receive, on a product by product basis, in the new Member State in the calendar year 2003 under a CAP-like national scheme increased by 10 percentage points. However for Lithuania the reference year shall be the calendar year 2002 and for Slovenia the increase shall be 10 percentage points in 2004, 15 percentage points in 2005, 20 percentage points in 2006 and 25 percentage points from 2007. (ii) with regard to the single payment scheme the total amount of complementary national direct aid which may be granted by a new Member State in respect of a given year shall be limited by a specific financial envelope. This envelope shall be equal to the difference between: — the total amount of CAP-like national direct support that would be available in the relevant new Member State in respect of the calendar year 2003 or, in the case of Lithuania, of the calendar year 2002, each time increased by 10 percentage points. However, for Slovenia the increase shall be 10 percentage points in 2004, 15 percentage points in 2005, 20 percentage points in 2006 and 25 percentage points from 2007, — and — the national ceiling of that new Member State listed in Annex VIIIa adjusted, where appropriate, in accordance with Articles 64(2) and 70(2). For the purpose of calculating the total amount referred to in the first indent above, the national direct payments and/or its components corresponding to the Community direct payments and/or its components which were taken into account for calculating the effective ceiling of the new Member State concerned in accordance with Article 64(2), 70(2) and 71c shall be included. For each direct payment concerned a new Member State may choose to apply either option (a) or (b) above. The total direct support the farmer may be granted in the new Member States after accession under the relevant direct payment including all complementary national direct payments shall not exceed the level of direct support the farmer would be entitled to receive under the corresponding direct payment then applicable to the Member States in the Community as constituted on 30 April 2004. 3. Cyprus may complement direct aid paid to a farmer under any direct payments listed in Annex I up to the total level of support the farmer would have been entitled to receive in Cyprus in 2001. The Cypriot authorities shall ensure that the total direct support the farmer is granted after accession in Cyprus under the relevant direct payment including all complementary national direct payments in no case exceeds the level of direct support the farmer would be entitled to receive under that direct payment in the relevant year in the Community as constituted on 30 April 2004. The total amounts of complementary national aid to be granted shall be those indicated in Annex XII. The complementary national aid to be granted shall be subject to any adjustments which may be rendered necessary by developments in the common agricultural policy. The paragraphs 2 and 5 shall not apply to Cyprus. 4. If a new Member State decides to apply the single area payment scheme, that new Member State may grant complementary national direct aid under the conditions referred to in paragraphs 5 and 8. 5. In respect of the year 2004, the total amount per (sub)sector of complementary national aid granted in that year when applying the single area payment scheme shall be limited by a specific financial envelope per (sub)sector. This envelope shall be equal to the difference between: — the total amount of support per (sub)sector resulting from the application of the points (a) or (b) of paragraph 2, as appropriate, and — the total amount of direct support that would be available in the relevant new Member State for the same (sub)sector in the year concerned under the single area payment scheme. In respect of any year as from 2005 the requirement to operate the above limitation by means of applying (sub)sector specific financial envelopes shall not apply. However, the new Member States shall retain the right to apply (sub)sector specific financial envelopes, provided that such a (sub)sector specific financial envelope may only relate to — the direct payments combined to the single payment scheme, and/or — one or more of the direct payments that are excluded or may be excluded from the single payment scheme in accordance with Article 70(2) or may be subject to partial implementation as referred to in Article 64(2). 6. The new Member State may decide on the basis of objective criteria and after authorisation by the Commission, on the amounts of complementary national aid to be granted. 7. The authorisation by the Commission shall: — where point (b) of paragraph 2 applies, specify the relevant CAPlike national direct payment schemes, — define the level up to which the complementary national aid may be paid, the rate of the complementary national aid and, where appropriate, the conditions for the granting thereof, — be granted subject to any adjustments which may be rendered necessary by developments in the common agricultural policy. 8. No complementary national payments or aid shall be granted for agricultural activities in respect of which direct payments are not foreseen in the Community as constituted on 30 April 2004. 9. Cyprus may, in addition to the complementary national direct payments, grant transitional and degressive national aid until the end of 2010. This State aid shall be granted in a form similar to Community aid, such as decoupled payments. Taking into account the nature and amount of national support granted in 2001, Cyprus may grant State aid to the (sub)sectors listed in Annex XIII and up to the amounts specified in that Annex. The State aid to be granted shall be subject to any adjustments which may be rendered necessary by developments in the common agricultural policy. Should such adjustments prove necessary, the amount of the aid or the conditions for the granting thereof shall be amended on the basis of a decision by the Commission. Cyprus shall submit an annual report to the Commission on the implementation of the State aid measures, indicating the aid forms and amounts per (sub)sector. 10. Latvia may, in addition to the complementary national direct payments, grant transitional and degressive national aid until the end of 2008. This State aid shall be granted in a form similar to Community aid, such as decoupled payments. Latvia may grant State aid to the (sub)sectors listed in Annex XIV up to the amounts specified in that Annex. The State aid to be granted shall be subject to any adjustments which may be rendered necessary by developments in the common agricultural policy. Should such adjustments prove necessary, the amount of the aid or the conditions for the granting thereof shall be amended on the basis of a decision by the Commission. Latvia shall submit an annual report to the Commission on the implementation of the State aid measures, indicating the aid forms and amounts per (sub)sector. (d) in Article 145 after point (d) the following point is inserted: ‘(d)a) detailed rules relating to the implementation of the provisions in Title IVa,’; (e) in Article 153(4) the following sentence is added: ‘The simplified scheme referred to in Article 2a of that Regulation shall not apply to the new Member States.’ (f) in Annex I, the following line is inserted after the line ‘Single payment’ :



‘Single area payment Title IVa, Article 143b of this Regulation Decoupled payment replacing all the direct payments referred to in this Annex’ (g) the following Annexes are added:



‘ANNEX XII



Table 1 Cyprus: Complementary national direct payments where the normal schemes for direct payments apply Schedule of increments 25 % 30 % 35 % 40 % 50 % 60 % 70 % 80 % 90 % Sector 2004 2005 2006 2007 2008 2009 2010 2011 2012 Arable crops (durum wheat excluded) 7 913 822 7 386 234 6 858 646 6 331 058 75 881 4 220 705 3 165 529 2 110 353 1 055 176 Durum wheat 2 256 331 2 059 743 1 888 505 1 743 235 1 452 696 1 162 157 871 618 581 078 290 539 Grain legumes 30 228 28 273 26 318 24 363 20 363 16 362 12 272 8 181 4 091 Milk and dairy 887 535 1 759 243 2 311 366 2 133 569 1 777 974 1 422 379 1 066 784 711 190 355 595 Beef 3 456 709 3 226 262 2 995 814 2 765 367 2 304 473 1 843 578 1 382 684 921 789 460 895 Sheep and goat 8 267 087 7 715 948 7 164 809 6 613 669 5 511 391 4 409 113 3 306 835 2 204 556 1 102 278 Olive oil 5 951 250 5 554 500 5 157 750 4 761 000 3 967 500 3 174 000 2 380 500 1 587 000 793 500 Tobacco 782 513 730 345 678 178 626 010 521 675 417 340 313 005 208 670 104 335 Bananas 3 290 625 3 071 250 2 851 875 2 632 500 2 193 750 1 755 000 1 316 250 877 500 0 Dried grapes 104 393 86 562 68 732 50 901 15 241 0 0 0 0 Almonds 49 594 30 878 12 161 0 0 0 0 0 0 Total 32 990 086 31 649 237 30 014 153 27 681 672 23 040 943 18 420 634 13 815 476 9 210 317 4 166 409 Complementary national direct payments under Single Payment Scheme: The total amount of complementary national direct payments that may be granted under the Single Payment Scheme shall be equal to the sum of the sectoral ceilings referred to in this table relating to the sectors that are covered by the Single Payment Scheme to the extent that the support in these sectors is decoupled.



Table 2 Cyprus: Complementary national direct payments where the single area payment scheme for direct payments applies Single area payment scheme Sector 2004 2005 2006 2007 2008 Arable crops (durum wheat excluded) 6 182 503 3 997 873 2 687 095 1 303 496 0 Durum wheat 2 654 980 2 469 490 2 358 196 2 240 719 2 018 131 Grain legumes 27 346 20 566 16 498 12 204 4 068 Milk and dairy 1 153 380 2 323 212 3 501 948 3 492 448 3 474 448 Beef 4 608 945 4 608 945 4 608 945 4 608 945 4 608 945 Sheep and goat 10 932 782 10 887 782 10 860 782 10 832 282 10 778 282 Olive oil 7 215 000 6 855 000 6 639 000 6 411 000 5 979 000 Dried grapes 182 325 176 715 173 349 169 796 163 064 Bananas 4 368 300 4 358 700 4 352 940 4 346 860 4 335 340 Tobacco 1 049 000 1 046 750 1 045 400 1 043 975 1 041 275 Total 38 374 562 36 745 034 36 244 154 34 461 726 32 402 554



ANNEX XIII



State aid Cyprus Sector 2004 2005 2006 2007 2008 2009 2010 Cereals (durum wheat excluded) 7 920 562 6 789 053 5 657 544 4 526 035 3 394 527 2 263 018 1 131 509 Milk and dairy 5 405 996 3 161 383 1 405 471 1 124 377 843 283 562 189 281 094 Beef 227 103 194 660 162 216 129 773 97 330 64 887 0 Sheep and goats 3 597 708 3 083 750 2 569 791 2 055 833 1 541 875 1 027 917 513 958 Pig sector 9 564 120 8 197 817 6 831 514 5 465 211 4 098 909 2 732 606 1 366 303 Poultry and eggs 3 998 310 3 427 123 2 855 936 2 284 749 1 713 561 1 142 374 571 187 Wine 15 077 963 12 923 969 10 769 974 8 615 979 6 461 984 4 307 990 2 153 995 Olive oil 7 311 000 6 266 571 5 222 143 4 177 714 3 133 286 2 088 857 1 044 429 Table grapes 3 706 139 3 176 691 2 647 242 2 117 794 1 588 345 1 058 897 529 448 Processed tomatoes 411 102 352 373 293 644 234 915 176 187 117 458 58 729 Bananas 445 500 381 857 318 214 254 571 190 929 127 286 63 643 Deciduous fruit including stone fruit 9 709 806 8 322 691 6 935 576 5 548 461 4 161 346 2 774 230 1 387 115 Total 67 375 310 56 277 938 45 669 267 36 535 414 27 401 560 18 267 707 9 101 410



ANNEX XIV



State aid Latvia State aid Sector 2004 2005 2006 2007 2008 Flax 654 000 523 200 392 400 261 600 130 800 Pigmeat sector 204 000 163 200 122 400 81 600 40 800 Sheep and goats 107 000 85 600 64 200 42 800 21 400 Seeds 109 387 87 510 66 110 44 710 23 310 Total 1 074 387 859 510 645 110 430 710 216 310 ’