Council Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations
Date: 1999-05-17
Institutions: Council of the European Union
Subjects: Community support framework, EAGGF Guarantee Section, EAGGF Guidance Section, State aid, aid to agriculture, development aid, regional aid, repeal, rural development

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Official Journal of the European Communities

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COUNCIL REGULATION (EC) No 1257/1999

of 17 May 1999

on support for rural development from the European Agricultural Guidance and Guarantee
Fund (EAGGF) and amending and repealing certain Regulations

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Articles 36 and 37
thereof,

Having
regard
Commission (1),

to

the

proposal

from the

Having regard to the opinion of
Parliament (2),

the European

Having regard to the opinion of the Economic and
Social Committee (3),

Having regard to the opinion of the Committee of the
Regions (4),

Articles 158 and 160 for the common policy of
economic and social cohesion and contribute to
their achievement; whereas rural development
measures should,
therefore, contribute to this
policy in regions whose development is lagging
behind
facing
structural difficulties (Objective 2) as defined in
Council Regulation (EC) No 1260/1999, of 21
June 1999 laying down general provisions on the
Structural Funds (6);

(Objective

regions

and

1)

(4) Whereas measures designed to support

the
structures were
improvement of agricultural
introduced into the common agricultural policy
as early as 1972; whereas
two
decades, attempts have been made to integrate
agricultural
structural policy into the wider
rural areas;
economic and social context of
whereas the 1992 policy reform stressed the
environmental dimension of agriculture as the
largest land user;

for almost

Having regard to the opinion of
Auditors (5),

the Court of

(5) Whereas rural policy is currently carried out

through a range of complex instruments;

(1) Whereas a common rural development policy
should accompany and complement
the other
instruments of the common agricultural policy
and thus contribute to the achievement of the
policy’s objectives as laid down in Article 33(1)
of the Treaty;

the

(2) Whereas, according to Article 33(2)(a) of the
Treaty, in working out the common agricultural
its
policy
and
application, account
the
is
particular nature of agricultural activity which
results from the social structure of agriculture
and from structural and natural disparities
between the various agricultural regions;

for
to be taken of

special methods

(3) Whereas, according to Article 159 of the Treaty,
the implementation of the common policies is to
in
take into account

the objectives

set out

and

(6) Whereas over the coming years, agriculture will
have to adapt
to new realities and further
changes in terms of market evolution, market
policy and trade rules, consumer demand and
preferences
next
enlargement; whereas these changes will affect
not only agricultural markets but also local
economies in rural areas in general; whereas a
rural development policy should aim at restoring
and enhancing the competitiveness of rural areas
and,
therefore, contribute to the maintenance
and creation of employment in those areas;

Community’s

the

(7) Whereas

these

developments

be
encouraged and supported by reorganisation and
simplification of the existing rural development
instruments;

should

(1) OJ C 170, 4.6.1998, p. 7.
(2) Opinion delivered on 6 May 1999 (not yet published in

the Official Journal).

(3) OJ C 407, 28.12.1998, p. 210.
(4) OJ C 93, 6.4.1999, p. 1.
(5) OJ C 401, 22.12.1998, p. 3.

(8) Whereas such reorganisation should take into
account
experience gained in applying
existing instruments and thus be based on those
instruments, which are those implemented under

the

(6) OJ L 161, 26.6.1999, p. 1.

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of

activities

the development

the current priority objectives promoting rural
development by speeding up the adjustment of
agricultural structures in the framework of the
reform of the common agricultural policy and
and structural
facilitating
adjustment of rural areas (Objectives 5a and 5b),
as
laid down in Council Regulation (EEC)
No 2052/88 of 24 June 1988 on the tasks of the
Structural Funds and their effectiveness and on
between
their
coordination
themselves and with the operations of
the
European Investment Bank and the other
instruments (1) and Council
existing financial
Regulation (EEC) No 4256/88 of 19 December
1988 laying down provisions for implementing
Regulation (EEC) No 2052/88 as regards the
European Agricultural Guidance and Guarantee
Fund (EAGGF) Guidance Section (2), and those
introduced as accompanying measures to the
1992 common agricultural policy reform by
Council Regulation (EEC) No 2078/92 of 30
June 1992 on agricultural production methods
the
compatible with
the
environment
protection
countryside (3), Council
maintenance of
Regulation (EEC) No 2079/92 of 30 June 1992
instituting a Community aid scheme for early
and Council
retirement
Regulation (EEC) No 2080/92 of 30 June 1992
instituting a Community aid scheme for forestry
measures in agriculture (5);

from farming (4)

requirements

of
and

the
the

the

of

(9) Whereas the framework of a reformed rural
development policy should cover all rural areas
in the Community;

(10) Whereas

the

three

existing

accompanying
measures introduced by the 1992 reform of the
common agricultural policy (agri-environment,
early retirement and afforestation) should be
supplemented by the scheme for less-favoured
areas and areas with environmental restrictions;

(11) Whereas other

rural development measures
should form part of
integrated development
programmes for Objective 1 and may form part
of programmes for Objective 2 regions;

(12) Whereas

in rural areas,

rural development
measures should accompany and complement
market policies;

(13) Whereas support

from the EAGGF for rural
development should be based on a single legal
framework establishing measures eligible for
support,
for
eligibility;

objectives

criteria

their

and

(14) Whereas, given the diversity of the Community’s
rural areas,
rural development policy should
follow the principle of subsidiarity; whereas it
should therefore, be as decentralised as possible
and emphasis must be on participation and a
(cid:28)bottom up’
therefore,
eligibility criteria for rural development support
should not go beyond what
is necessary to
rural development
achieve the objectives of
policy;

approach; whereas,

(15) Whereas consistency with other instruments of
the common agricultural policy and with other
common
basic
requires,
support criteria to be laid down at Community
unjustified
level; whereas,
distortions of competition resulting from rural
development measures should be avoided;

particular,

however,

policies

in

(16) Whereas,

in order to ensure flexibility and to
simplify legislation, the Council should confer all
necessary
the
Commission in accordance with the third indent
of Article 202 of the Treaty;

implementing

powers

on

(1) OJ L 185, 15.7.1988, p. 9. Regulation as last amended
by Regulation (EC) No 3193/94 (OJ L 337, 24.12.1994,
p. 11).

(2) OJ L 374, 31.12.1988, p. 25. Regulation as last amended
by Regulation (EEC) No 2085/93 (OJ L 193, 31.7.1993,
p. 44).

(3) OJ L 215, 30.7.1992, p. 85. Regulation as last amended
by Commission Regulation (EC) No 2272/95 (OJ L 288,
1.12.1995, p. 35). Regulation rectified by Commission
Regulation (EC) No 1962/96 (OJ L 259, 12.10.1996,
p. 7).

(4) OJ L 215, 30.7.1992, p. 91. Regulation as amended by
Commission Regulation (EC) No 2773/95 (OJ L 288,
1.12.1995, p. 37).

(5) OJ L 215, 30.7.1992, p. 96. Regulation as last amended
by Commission Regulation (EC) No 231/96 (OJ L 30,
8.2.1996, p. 33).

(17) Whereas

the structure of agriculture in the
Community is typified by the existence of a large
number of holdings which lack the structural
conditions to ensure a fair income and living
conditions for farmers and their families;

(18) Whereas the aim of Community investment aid
is to modernise agricultural holdings and to
improve their viability;

(19) Whereas Community

concerning
eligibility for investment aid should be simplified

conditions

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as compared to the existing conditions laid down
in Council Regulation (EC) No 950/97 of 20
May 1997 on improving the
efficiency of
agricultural structures (1);

necessary that support is granted to farmers to
solve their specific problems arising from these
limitations;

(20) Whereas the granting of specific benefits

to
young farmers may facilitate not only their
establishment but also the structural adjustment
of their holdings after their initial establishment;

(21) Whereas

require an appropriate

the evolution and specialisation of
level of
agriculture
technical and economic training for
general,
persons
involved in agricultural and forestry
activities, especially as regards new approaches
to management, production and marketing;

(22) Whereas a particular effort is needed to educate
in and inform them of agricultural

farmers
methods compatible with the environment;

(23) Whereas early retirement from farming should
be encouraged in order to improve the viability
of agricultural holdings, taking into account the
experience acquired in the implementation of
Regulation (EEC) No 2079/92;

(29) Whereas, in the coming years, a prominent role
agri-environmental
should
be
instruments
sustainable
support
development of rural areas and to respond to
society’s increasing demand for environmental
services;

given
to

the

to

(30) Whereas the existing agri-environmental support
under Regulation (EEC) No 2078/92 should be
continued for targeted environmental measures,
taking into account experience gained in the
implementation of this scheme as described in
detail
report presented
pursuant to Article 10(2) of Regulation (EEC)
No 2078/92;

in the Commission’s

(31) Whereas

the agri-environmental aid scheme
should continue to encourage farmers to serve
society as a whole by introducing or continuing
the use of farming practices compatible with the
increasing need to protect and improve the
environment, natural resources, soil and genetic
diversity and to maintain the landscape and the
countryside;

(24) Whereas support for less-favoured areas should
contribute to the continued use of agricultural
land, maintaining the countryside, maintenance
and promotion of sustainable farming systems;

(32) Whereas improvements in the processing and
marketing of agricultural products should be
encouraged by support for investments in that
field;

(25) Whereas less-favoured areas should be classified

on the basis of common criteria;

(26) Whereas

there is no need for any further
at

less-favoured

areas

classification
of
Community level;

(27) Whereas conditions concerning eligibility for
compensatory allowances should be laid down in
order to ensure the efficiency of this support
scheme and to ensure that
its objectives are
achieved;

(28) Whereas for limitations on agricultural use in
areas with environmental restrictions it might be

(33) Whereas such support can largely be based on
existing conditions as currently laid down in
Council Regulation (EC) No 951/97 of 20 May
1997 on improving the processing and marketing
conditions for agricultural products (2).

(34) Whereas

it

should be

such
investments are viable and that farmers have a
share in the economic benefits of
the action
taken;

ensured that

and forestry measures

(35) Whereas forestry is an integral part of rural
should,
development
therefore,
rural
development support scheme, whereas support
for forestry should avoid distorting competition
and should be market neutral;

included

under

the

be

(1) OJ L 142, 2.6.1997, p. 1. Regulation as amended by
Regulation (EC) No 2331/98 (OJ L 291, 30.10.1998, p.
10).

(2) OJ L 142, 2.6.1997, p. 22.

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of

light

undertakings

(36) Whereas forestry measures should be adopted in
the
and
at
level and be based on Member
forestry plans; whereas such measures
specific
into account

the
Community
international
States’
should also take
problems of climate change;

the Member

by
States

given

the

the existing schemes

(37) Whereas forestry measures should be based on
those taken under
laid
down in Council Regulation (EEC) No 1610/89
of 29 May 1989 laying down provisions for
implementing Regulation (EEC) No 4256/88 as
regards the scheme to develop and optimally
the
utilise woodlands
Community (1) and in Council Regulation (EEC)
No 867/90 of 29 March 1990 on improving the
processing and marketing conditions for forestry
products (2);

areas

rural

in

in

(41) Whereas

demand

from consumers

for
organically-produced agricultural products and
foodstuffs is increasing; whereas a new market
for agricultural products is thus being created;
the
organic
whereas
farming activities and thus
sustainability of
this
the
contributes
Regulation;
rural
whereas
development support measures may concern the
of
production,
organically-produced agricultural products;

and marketing

aims
specific

general
the

agriculture

processing

improves

to

of

(42) Whereas rural development measures eligible for
Community
comply with
Community law and be consistent with other
Community policies as well as with other
instruments of the common agricultural policy;

support

should

and as

and the

environment

(38) Whereas the afforestation of agricultural land is
especially important from the point of view of
soil use
a
contribution to increasing supplies for certain
forestry products, whereas the existing support
(EEC)
afforestation
for
No 2080/92 should,
therefore, be continued,
taking into account the experience gained in the
implementation of that scheme as described in
detail
report presented
pursuant to Article 8(3) thereof;

in the Commission’s

under Regulation

(39) Whereas payments

granted for
activities to maintain and improve ecological
stability of forests in certain areas;

should be

(43) Whereas in the framework of this Regulation
support should be excluded for certain measures
eligible under other common agricultural policy
instruments and in particular those falling within
the scope of support schemes under common
organisations of the market with the exceptions
justified by objective criteria;

(44) Whereas,

in view of existing aid to producer
groups and their associations in several common
organisations of the market, specific support to
producer groups
rural
development no longer appears to be necessary;
whereas, therefore, the aid scheme existing under
Council Regulation (EC) No 952/97 of 20 May
1997 on producer groups and associations
thereof (3) should be discontinued;

in the framework of

(40) Whereas support should be granted for other
measures relating to farming activities and their
conversion; whereas the list of measures should
be defined on the basis of experience and having
regard to the need for rural development to be
based partly on non-agricultural activities and
services so as to reverse the trend towards the
economic and social decline and depopulation of
the countryside; whereas measures to remove
inequalities and to promote equal opportunities
for men and women should be supported;

(45) Whereas the financing of Community support
for the accompanying measures and for other
rural development measures in areas other than
Objective 1 should come from the Guarantee
Section of
the basic
the EAGGF; whereas
financial rules laid down in Regulation (EC)
No 1260/1999 have been adapted accordingly;

(46) Whereas the financing of Community support
for rural development measures, in areas covered

(1) OJ L 165, 15.6.1989, p. 3.
(2) OJ L 91, 6.4.1990, p. 7.

(3) OJ L 142, 2.6.1997, p. 30.

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by Objective 1, should continue to come from
the Guidance Section of the EAGGF except for
the three existing accompanying measures and
the support for less-favoured areas and areas
with environmental restrictions;

(50) Whereas appropriate rules should be established
for
rural
the monitoring and evaluation of
development support, using as a reference well-
defined indicators to be agreed and established
prior to programme implementation;

(47) Whereas, with regard to the support for rural
development measures covered by Objective 1
and Objective 2 programming, Regulation (EC)
No 1260/1999 should apply, in particular as to
integrated programming of
these measures;
rules concerning financing
whereas, however,
should
the Guarantee
into
financing of measures in Objective 2 regions;

account

take

(51) Whereas rural development measures should be
eligible for Member State support without any
Community co-financing; whereas, in view of the
considerable economic impact of such aid and in
order
consistency with measures
eligible for Community support and simplify
procedures, specific State-aid rules should be
established;

to ensure

to

for

should

1
be

rates of assistance

development measures

rural
by Objective

or Objective
subject

(48) Whereas
not
covered
2
rural
programming
development programming pursuant to specific
rules; whereas
such
measures should be differentiated according to
the general principles laid down in Article 29(1)
of Regulation (EC) No 1260/1999 taking
sufficiently into account
the requirement of
social and economic cohesion; whereas, as a
result, those assistance rates should, in principle,
be differentiated as between areas covered by
Objective 1 and Objective 2 and other areas;
whereas the rates laid down in this Regulation
are
of Community
assistance;

the maximum rates

(49) Whereas,

in addition to rural development
programmes, the Commission should be able to
make
rural
for
initiative
its
development
notwithstanding the rural development initiative
provided for in Articles 19 and 20 of Regulation
(EC) No 1260/1999;

provisions
on

studies
own

on

(52) Whereas

it

to adopt
should be possible
transitional rules to facilitate the transition from
existing support
to the new rural
development support scheme;

schemes

(53) Whereas the new support scheme provided for in
this Regulation replaces existing support schemes
which should therefore be repealed; whereas, as
a consequence, the derogation in current schemes
for outermost regions and for the Aegean Islands
will equally have to be repealed; whereas new
rules providing for
the necessary flexibility,
adaptations and derogations in order to meet the
specific needs of those regions will be established
when
are
rural
programmed,

development measures

HAS ADOPTED THIS REGULATION:

TITLE I

SCOPE AND OBJECTIVES

Article 1

3.

Rural development measures shall:

This Regulation establishes the framework for
1.
Community support for sustainable rural development.

— be integrated into the measures promoting the
development and structural adjustment of regions
whose development is lagging behind (Objective
1), and

Rural development measures shall accompany
2.
and complement other instruments of the common
agricultural policy
to the
and thus
achievement of the objectives laid down in Article 33
of the Treaty.

contribute

— accompany the measures supporting the economic
and social conversion of areas facing structural
difficulties (Objective 2)

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taking into account

in the regions concerned,
the
specific targets of Community support under these
objectives as laid down in Articles 158 and 160 of the
Treaty and in Regulation (EC) No 1260/1999 and
laid down in this
conditions
according to the
Regulation.

Article 2

Support
activities and their conversion, may concern:

for rural development, related to farming

— the

improvement of

in agricultural
holdings and structures for the processing and
marketing of agricultural products,

structures

— the conversion and reorientation of agricultural
production potential,
the introduction of new
technologies and the improvement of product
quality,

— the encouragement of non-food production,

— sustainable forest development,

— the maintenance and reinforcement of viable social

fabric in rural areas,

— the development of economic activities and the
maintenance and creation of employment with the
aim of ensuring a better exploitation of existing
inherent potential,

— the improvement of working and living conditions,

— the maintenance and promotion of

low-input

farming systems,

— the preservation and promotion of a high nature
value and a sustainable agriculture respecting
environmental requirements,

— the removal of inequalities and the promotion of
in
initiated and

equal opportunities
particular by supporting projects
implemented by women.

for men and women,

Article 3

— the diversification of activities with the aim of

complementary or alternative activities,

Support shall be granted for the rural development
measures defined in Title II and under the conditions
laid down therein.

TITLE II

RURAL DEVELOPMENT MEASURES

CHAPTER I

— to increase quality,

INVESTMENT IN AGRICULTURAL HOLDINGS

— to preserve and improve the natural environment,
hygiene conditions and animal welfare standards,

Article 4

Support for investment in agricultural holdings shall
contribute to the improvement of agricultural incomes
and of living, working and production conditions.

Such investment shall pursue one or more of
following objectives:

the

— to reduce production costs,

— to promote the diversification of farm activities.

Article 5

Support for investment shall be granted to agricultural
holdings:

— to improve and redeploy production,

demonstrated,

— the

economic

viability

of which

can

be

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— which comply with minimum standards regarding
the environment, hygiene and animal welfare, and

— the farmer is established as head of the holding.

— where the farmer possesses adequate occupational

skill and competence.

Article 6

Specific conditions may be applied in a situation
where a young farmer is not established as sole head
of the holding. These conditions must be equivalent to
those required for a young farmer setting up as sole
head of a holding.

Support shall not be granted for investment which has
as its objective an increase in production for which no
normal market outlets can be found.

2.

The setting-up aid may comprise:

Article 7

— a single premium up to the maximum eligible

amount specified in the Annex,

Member States shall set limits for total
eligible for support.

investment

total

support,

amount of

expressed as a
The
percentage of the volume of eligible investment,
is
limited to a maximum of 40 % and 50 % in less-
favoured areas. Where investments are undertaken by
young farmers, as referred to under Chapter II, these
percentages may reach a maximum of 45 % and 55 %
in less-favoured areas.

CHAPTER II

SETTING UP OF YOUNG FARMERS

Article 8

— an interest subsidy on loans taken on with a view
to covering the costs arising from setting up; the
capitalised value of the interest subsidy may not
exceed the value of the premium.

CHAPTER III

TRAINING

Article 9

Setting-up aid to facilitate the establishment of
1.
young farmers shall be granted under the following
conditions:

Support for vocational training shall contribute to the
improvement of the occupational skill and competence
of farmers and other persons involved in agricultural
activities and forestry activities, and their conversion.

— the farmer is under 40 years of age,

— the farmer possesses adequate occupational skill

and competence,

— the farmer is setting up on an agricultural holding

for the first time,

— as regards the holding:

(i) economic viability can be demonstrated, and

(ii) minimum standards regarding the environment,
hygiene and animal welfare are complied with,

and

Training shall in particular be designed:

— to prepare farmers for qualitative reorientation of
production, the application of production practices
compatible with the maintenance and enhancement
the
of
the
the
and
environment,
animal
the skills needed to
welfare and acquisition of
enable them to manage an economically viable
farm, and

landscape,

protection

standards

hygiene

of

— to prepare

forest holders and other persons
involved in forestry activities for the application of
forest management practices
the
economic, ecological or social functions of forests.

to improve

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CHAPTER IV

— possess

adequate

occupational

skill

and

competence, and

EARLY RETIREMENT

Article 10

Support for early retirement from farming shall

1.
contribute to the following objectives:

— to provide an income for elderly farmers who

decide to stop farming,

— to encourage the replacement of

such elderly
farmers by farmers able
to improve, where
necessary, the economic viability of the remaining
agricultural holdings,

— to reassign agricultural

land to non-agricultural
uses where it cannot be farmed under satisfactory
conditions of economic viability.

Early retirement support may include measures

2.
to provide an income for farm workers.

Article 11

1.

A transferor of a farm shall:

— stop all commercial farming activity definitively;
non-commercial

he may,
farming and retain the use of the buildings,

however,

continue

— undertake to practise farming on the agricultural

holding for not less than five years.

3.

A farm worker shall:

— stop all farm work definitively,

— be not less than 55 years old but not yet of normal

retirement age,

— have devoted at least half of his working time as a
family helper or farm worker to farm work during
the preceding five years,

— have worked on the

transferor’s agricultural
holding for at least the equivalent of two years
full-time during the four-year period preceding the
early retirement of the transferor, and

— belong to a social security scheme.

A non-farming transferee may be any other
4.
person or body who takes over released land to use it
for non-agricultural purposes, such as forestry or the
creation of ecological reserves, in a manner compatible
with protection or improvement of the quality of the
environment of the countryside.

— be not less than 55 years old but not yet of normal

retirement age at the time of transfer, and

The conditions laid down in this Article shall be
the period during which the

5.
applied throughout
transferor receives early retirement support.

— have practised farming for the 10 years preceding

transfer.

2.

The transferee of a farm shall:

Article 12

— succeed the

as

transferor

the head of

the
agricultural holding or take over all or part of the
land released. The economic viability of
the
transferee’s holding must be improved within a
period and in compliance with conditions to be
defined in terms of, in particular, the transferee’s
occupational skill and competence and the surface
area and volume of work or income, according to
the region and type of production,

The maximum amounts eligible for Community

1.
support are laid down in the Annex.

The duration of early retirement support shall
2.
not exceed a total period of 15 years for the transferor
and 10 years for the farm worker. It shall not go
beyond the 75th birthday of a transferor and not go
beyond the normal retirement age of a worker.

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Where in the case of a transferor a normal retirement
pension is paid by the Member State, early retirement
support shall be granted as a supplement taking into
account
retirement
pension.

the amount of

the national

CHAPTER V

LESS-FAVOURED AREAS AND AREAS WITH
ENVIRONMENTAL RESTRICTIONS

Article 13

for

Support
environmental
following objectives.

less-favoured areas and areas with
shall contribute to the

restrictions

(a) Compensation for naturally less-favoured areas

— to ensure continued agricultural land use and
thereby contribute to the maintenance of a
viable rural community,

— to maintain countryside,

— to maintain and promote sustainable farming
systems which in particular take account of
environmental protection requirements.

(b) Compensation for

areas with environmental

restrictions

— to ensure

environmental

requirements and
safeguard farming in areas with environmental
restrictions.

— apply usual good farming practices compatible
with the need to safeguard the environment and
maintain
by
sustainable farming.

countryside,

particular

the

in

residues of

3. Where residues of substances prohibited under
Directive 96/22/EC (1) or
substances
authorised under that Directive but used illegally, are
detected pursuant to the relevant provisions of Council
Directive 96/23/EC (2) in an animal belonging to the
bovine herd of a producer, or where an unauthorised
substance or product, or a substance or product
authorised under Directive 96/22/EC but held illegally
is found on the producer’s holding in any form, the
producer
from receiving
compensatory allowances for the calendar year of that
discovery.

excluded

shall

be

exclusion

In the event of a repeated infringement, the length of
the
the
seriousness of the offence, be extended to five years
from the year in which the repeated infringement was
discovered.

period may,

depending

on

In the event of obstruction on the part of the owner or
holder of
the animals when inspections are being
carried out and the necessary samples are being taken
in application of national residue-monitoring plans, or
when the investigations and checks provided for under
Directive 96/23/EC are being carried out, the penalties
provided for in the first subparagraph shall apply.

Article 15

Compensatory allowances shall be fixed at a

1.
level which:

— is sufficient in making an effective contribution to

compensation for existing handicaps, and

Article 14

— avoids overcompensation.

Farmers in less-favoured areas may be supported

1.
by compensatory allowances.

Compensatory

2.
allowances
differentiated, taking into account:

shall

be

duly

Compensatory allowances shall be granted per

2.
hectare of areas used for agriculture to farmers who:

— the situation and development objectives peculiar

to a region,

— farm a minimum area of land to be defined,

— the severity of any permanent natural handicap

affecting farming activities,

— undertake to pursue their farming activity in a
less-favoured area for at least five years from the
first payment of a compensatory allowance, and

(1) OJ L 125, 23.5.1996, p. 3.
(2) OJ L 125, 23.5.1996, p. 10.

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— the particular

environmental problems

to be

Article 18

solved where appropriate,

— the type of production and, where appropriate, the

economic structure of the holding.

1. Mountain areas shall be those characterised by a
considerable limitation of the possibilities for using the
land and an appreciable increase in the cost of
working it due:

Compensatory allowances shall be fixed between
3.
the minimum and maximum amounts set out in the
Annex.

— to the existence, because of altitude, of very
difficult climatic conditions, the effect of which is
substantially to shorten the growing season,

Compensatory allowances higher than this maximum
amount may be granted provided that the average
amount of all compensatory allowances granted at the
programming level concerned does not exceed this
maximum amount. However, in cases duly justified by
objective circumstances, Member States may, for the
purpose of calculating the average amount, present a
combination of several regional programmes.

— at a lower altitude,

to the presence over the
greater part of the area in question of slopes too
steep for the use of machinery or requiring the use
of very expensive special equipment, or

— to a combination of these two factors, where the
handicap resulting from each taken separately is
less acute but the combination of the two gives
rise to an equivalent handicap.

Article 16

2.
Areas north of the 62nd Parallel and certain
adjacent areas shall be treated in the same way as
mountain areas.

1.
Payments to compensate for costs incurred and
income foregone may be made to farmers who are
subject to restrictions on agricultural use in areas with
the
environmental
implementation of
limitations on agricultural use
based on Community environmental protection rules,
if and in so far as such payments are necessary to
solve the specific problems arising from those rules.

restrictions

result

as

of

a

Article 19

are

areas which

Less-favoured
of
abandonment of land-use and where the conservation
of the countryside is necessary, shall comprise farming
areas which are homogeneous from the point of view
of natural production conditions and exhibit all of the
following characteristics:

danger

in

2.
Payments shall be fixed at a level which avoids
overcompensation; this is especially necessary in the
case of payments in less-favoured areas.

The maximum amounts eligible for Community

3.
support are laid down in the Annex.

Article 17

Less-favoured areas shall include:

— mountain areas (Article 18),

— the presence of land of poor productivity, difficult
cultivation and with a limited potential which
cannot be increased except at excessive cost, and
which is mainly suitable for extensive livestock
farming,

— production which results from low productivity of
the natural environment which is appreciably
lower than the average, with regard to the main
indices of economic performance in agriculture,

— a low or dwindling population predominantly
dependent on agricultural activity, the accelerated
decline of which would jeopardise the viability of
the area concerned and its continued habitation.

— other less-favoured areas (Article 19), and

Article 20

— areas affected by specific handicaps (Article 20).

Less-favoured areas may include other areas affected
in which farming should be
by specific handicaps,

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in order

to certain
continued, where necessary and subject
conditions,
improve the
environment, maintain the countryside and preserve
the tourist potential of the area or in order to protect
the coastline.

to conserve or

Article 21

years. Where necessary, a longer period shall be
determined for particular types of commitments in
view of their environmental effects.

Agri-environmental commitments shall

2.
involve
more than the application of usual good farming
practice.

The total extent of areas referred to in Article 16 and
Article 20 may not exceed 10 % of the area of the
Member State concerned.

They shall provide for services which are not provided
for by other support measures, such as market support
or compensatory allowances.

CHAPTER VI

AGRI-ENVIRONMENT

Article 24

1.
Support
commitment
calculated on the basis of:

in respect of an agri-environmental
shall be granted annually and be

Article 22

— income foregone,

Support for agricultural production methods designed
the environment and to maintain the
to protect
countryside
to
(agri-environment)
achieving the Community’s policy objectives regarding
agriculture and the environment.

contribute

shall

Such support shall promote:

— ways of using

land which are
agricultural
compatible with the protection and improvement
of the environment, the landscape and its features,
natural resources, the soil and genetic diversity,

— an environmentally-favourable extensification of
farming and management of low-intensity pasture
systems,

— the conservation of high nature-value farmed

environments which are under threat,

— additional costs resulting from the commitment

given, and

— the need to provide an incentive.

The cost of any non-remunerative capital works
necessary for the fulfilment of the commitments may
also be taken into account in calculating the level of
annual support.

per

2. Maximum amounts
for
Community support are laid down in the Annex.
These amounts shall be based on that area of the
holding to which agri-environmental commitments
apply.

eligible

year

CHAPTER VII

— the upkeep of the landscape and historical features

on agricultural land,

IMPROVING PROCESSING AND MARKETING OF
AGRICULTURAL PRODUCTS

— the use of environmental planning in farming

practice.

Article 25

Article 23

1.
agri-environmental commitments

Support shall be granted to farmers who give
five

for at

least

for

Support

investment

the
1.
improvement and rationalisation of processing and
marketing of
and thereby
agricultural products
contribute to increasing the competitiveness and added
value of such products.

facilitate

shall

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Such support shall contribute to one or more of

2.
the following objectives:

Article 27

— to guide production in line with foreseeable
market trends or encourage the development of
new outlets for agricultural products,

— to improve or rationalise marketing channels or

processing procedures,

— to improve the presentation and preparation of
or

products
elimination of by-products or waste,

encourage

better

use

the

or

Investment

1.
shall concern the processing and
marketing of products covered by Annex I to the
Treaty except fishery products.

2.
Investment shall meet selection criteria setting
priorities and indicating which types of investment are
not eligible for support.

Article 28

The following types of

1.
excluded from support:

investment

shall be

— to apply new technologies,

— investment at the retail level,

— to favour innovative investments,

— investment

in the processing or marketing of

products from third countries.

— to improve and monitor quality,

The total amount of support, expressed as a
is

2.
percentage of the volume of eligible investment,
limited to a maximum of:

— to improve and monitor health conditions,

(a) 50 % in Objective 1 regions;

— to protect the environment.

(b) 40 % in the other regions.

Article 26

Support

1.
shall be granted to those persons
ultimately responsible for financing the investment in
enterprises

— for which economic viability can be demonstrated,

and

— which comply with minimum standards regarding
the environment, hygiene and animal welfare.

CHAPTER VIII

FORESTRY

Article 29

for

Support

1.
maintenance and development of
functions of
ecological and social
areas.

forestry shall contribute to the
the
economic,
forests in rural

2.
Investment must contribute to improving the
situation of the basic agricultural production sector in
question.
It must guarantee the producers of such
basic products an adequate share in the resulting
economic benefits.

Such support shall promote in particular one or

2.
more of the following objectives:

— sustainable forest management and development

of forestry,

3.
Sufficient evidence must be shown that normal
market outlets for the products concerned can be
found.

— maintenance and improvement of forest resources,

— extension of woodland areas.

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3.
Such support shall be granted only for forests
and areas owned by private owners or by their
associations or by municipalities or their associations.
This
restriction shall not apply to the measures
provided for in the sixth indent of Article 30(1).

4.
Such support shall contribute to the fulfilment of
the undertakings given by the Community and the
Member States at international level. It shall be based
on national or
forest programmes or
equivalent instruments which should take into account
the commitments made in the Ministerial Conferences
on the Protection of Forests in Europe.

subnational

5. Measures proposed under
this Regulation in
areas classified as high or medium forest fire risk
under Council Regulation (EEC) No 2158/92 of 23
July 1992 on protection of the Community forests
against fire (1) must conform to the forest protection
plans presented by
States under
Regulation (EEC) No 2158/92.

the Member

— restoring forestry production potential damaged
by natural disasters and fire and introducing
appropriate prevention instruments.

2.
The rules laid down in Chapters I and VII, with
the exception of the second subparagraph of Article 7,
shall apply as appropriate for investments.

Article 31

Support shall be granted for the afforestation of
1.
agricultural
such planting is
adapted to local conditions and is compatible with the
environment.

land provided that

Such support may include in addition to planting
costs:

Article 30

— an annual premium per hectare afforested to cover
maintenance costs for a period of up to five years,

Support for forestry shall concern one or more of

1.
the following measures:

— afforestation of land not eligible under Article 31
provided that such planting is adapted to local
the
conditions
environment,

compatible with

and

is

— investment

in forests

significantly
improving their economic, ecological or social
value,

aimed at

— investment

to

and

improve

the
harvesting, processing and marketing of forestry
products; investment related to the use of wood as
a raw material shall be limited to all working
operations prior to industrial processing,

rationalise

resulting

— an annual premium per hectare to cover loss of
a
income
maximum period of 20 years for farmers or
associations thereof who worked the land before
its afforestation or for any other private law
person.

from afforestation

for

2.
Support for the afforestation of agricultural land
undertaken by public authorities shall cover only the
cost of establishment.

Support for the afforestation of agricultural land

3.
shall not be granted:

— fot

farmers benefiting from early retirement

support,

— promotion of new outlets

for

the use and

— in respect of the planting of Christmas trees.

marketing of forestry products,

— the establishment of associations of forest holders
that are set up in order to help their members to
improve the sustainable and efficient management
of their forests,

In the case of fast-growing species cultivated in the
short term, support for afforestation shall be granted
for planting costs only.

(1) OJ L 217, 31.7.1992, p. 3. Regulation as amended by
Regulation (EC) No 308/97 (OJ L 51, 21.2.1997, p. 2).

the annual
4. Maximum amounts per year of
premium to cover
for
eligible
income
Community support are laid down in the Annex.

loss of

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Article 32

— basic

services

for

the

rural

economy

and

population,

1. With a view to:

— maintaining and improving the ecological stability
of forests where the protective and ecological role
of these forests are of public interest and where
and improvement
the
measures for these forests exceed the income from
forestry,

costs of maintenance

— maintaining
measures,

fire-breaks

through

agricultural

provided

payments for relevant measures shall be granted to the
beneficiaries
and
that
ecological values of these forests are ensured in a
sustainable manner and the measures to be carried out
are laid down by contract and their cost specified
therein.

protective

the

2.
Payments shall be fixed between the minimum
and maximum amounts set out in the Annex, on the
basis of the real costs of the measures carried out, as
previously stipulated in the contract.

— renovation and development of villages and

protection and conservation of the rural heritage,

— diversification

and
activities close to agriculture to provide multiple
activities or alternative incomes,

agricultural

activities

of

— agricultural water resources management,

— development and improvement of infrastructure
connected with the development of agriculture,

— encouragement for tourist and craft activities,

— protection of the environment in connection with
agriculture, forestry and landscape conservation as
well as with the improvement of animal welfare,

— restoring

agricultural

potential
damaged by natural disasters and introducing
appropriate prevention instruments,

production

CHAPTER IX

— financial engineering.

PROMOTING THE ADAPTATION AND
DEVELOPMENT OF RURAL AREAS

Article 33

Support shall be granted for measures, relating to
farming activities and their conversion and to rural
activities, which do not fall within the scope of any
other measure referred to in this Title.

Such measures shall concern:

CHAPTER X

IMPLEMENTING RULES

Article 34

Detailed rules for the implementation of this Title
shall be adopted in accordance with the procedure laid
down in Article 50(2) of Regulation (EC) No 1260/
1999.

— land improvement,

These rules may in particular define:

— reparcelling,

— setting-up of farm relief and farm management

services,

— conditions

for

support

in
agricultural holdings (Articles 4 to 7), including
the
from
restrictions
necessary
application of Article 6,

investment

resulting

for

— marketing of quality agricultural products,

— the period and the conditions for the improvement
of economic viability of an agricultural holding

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and conditions of use of land released in the case
of early retirement (Article 11(2)),

— conditions for the granting and calculation of the
compensatory allowance in less-favoured areas,
including in the
communal use of
case of
land (Articles 14 and 15) and the
agricultural
compensatory
with
in
environmental restrictions (Article 16),

payments

areas

— conditions

governing

the

giving

of

agri-

environmental commitments (Articles 23 and 24),

— selection

criteria

for

improving
agricultural products (Article 27(2)),

the processing

investment

at
and marketing of

aimed

— conditions governing forestry measures (Chapter

VIII).

According to the same procedure, the Commission
may derogate from the second indent of Article 28(1)
in the outermost regions subject to the condition that
the processed products are destined for the market of
the region in question.

TITLE III

GENERAL PRINCIPLES, ADMINISTRATIVE AND FINANCIAL PROVISIONS

CHAPTER I

Article 36

GENERAL PRINCIPLES

1. With regard to support for the rural development
measures referred to in Article 35(2):

S u b c h a p t e r I

Support from EAGGF

Article 35

Community support for early retirement (Articles
1.
less-favoured areas and areas with
10 to 12),
environmental restrictions (Articles 13 to 21), agri-
(Articles 22 to 24) and afforestation
environment
(Article 31)
financed by the EAGGF
shall be
Guarantee Section throughout the Community.

Community support for other rural development

2.
measures shall be financed by the EAGGF:

— Guidance Section in areas covered by Objective 1,

— Guarantee Section in areas not

covered by

Objective 1.

3.
Support for the measures referred to in the sixth,
seventh and ninth indents of Article 33 shall be
financed by the EAGGF in areas classified under
Objectives 1 and 2 and areas in transition in so far as
their
financing is not provided by the European
Regional Development Fund (ERDF).

— in areas covered by Objective 1, Regulation (EC)
No 1260/1999 shall apply as supplemented by
specific rules contained in this Regulation,

— in areas covered by Objective 2, Regulation (EC)
No 1260/1999 shall apply as supplemented by
specific rules contained in this Regulation and
save
this
as otherwise provided for under
Regulation.

2. With regard to support for rural development
measures financed by the EAGGF Guarantee Section,
the specific rules of Regulation (EC) No 1260/1999 (1)
and the provisions adopted in implementation thereof
shall apply save as otherwise provided for under this
Regulation.

S u b c h a p t e r I I

Compatibility and consistency

Article 37

Support for rural development shall be granted
1.
only for measures which comply with Community law.

(1) See page 103 of this Official Journal.

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Such measures shall be consistent with other
implemented

and measures

policies

2.
Community
thereunder.

In particular, no measure which falls within the scope
of this Regulation shall be eligible for support under
other Community support schemes if it is incompatible
condition laid down in this
with any specific
Regulation.

Consistency shall also be ensured with measures
3.
implemented under other instruments of the common
agricultural policy, and in particular between rural
development support measures on the one hand and
the common market
measures
organisations and agricultural quality and health
measures on the other hand, as well as between the
different rural development support measures.

implemented under

Accordingly, no support under this Regulation may be
granted for:

— measures

support
falling within the scope of
schemes under common market organisations,
with the exceptions, justified by objective criteria,
that may be defined according to Article 50,

— measures to support research projects, to promote
to eradicate animal

agricultural products or
diseases.

Article 39

1. Member States shall take all necessary steps to
rural
ensure the compatibility and consistency of
development
to the
provisions laid down in this Chapter.

support measures pursuant

rural development plans

submitted by
The
2.
the
Member States
shall
compatibility and the consistency of
the support
measures envisaged and an indication of the measures
taken in order to ensure compatibility and consistency.

include an appraisal of

Support measures

3.
subsequently revised to ensure
consistency.

shall, where necessary, be
compatibility and

CHAPTER II

PROGRAMMING

Article 40

Rural development measures financed by the
1.
the
EAGGF Guidance Section shall
programming for Objective 1 regions according to
Regulation (EC) No 1260/1999.

form part of

Rural development measures other than those
2.
referred to in Article 35(1) may form part of the
programming for Objective 2 regions in accordance
with Regulation (EC) No 1260/1999.

4. Member States may lay down further or more
restrictive conditions for granting Community support
for rural development provided that such conditions
are consistent with the objectives and requirements
laid down in this Regulation.

3. Other rural development measures which do not
form part of the programming in accordance with
paragraphs 1 and 2 shall be
to rural
development programming in accordance with Articles
41 to 44.

subject

Article 38

Payments may not be made in respect of the
1.
same measure under both this Regulation and another
Community support scheme.

for

Support

several measures

2.
this
Regulation may be combined only if such measures
are consistent and compatible with each other.
If
necessary, the level of support shall be adjusted.

under

4. With reference to appropriate rural development
for
measures, Member States may also submit
approval general framework Regulations which form
part of
in accordance with
paragraphs 1 to 3, as far as it is appropriate with a
view to maintaining uniform conditions.

the programming

Article 41

Rural development plans shall be drawn up at
1.
the geographical
the most
appropriate. They shall be prepared by the competent
authorities designated by the Member State and

level deemed to be

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submitted by the Member State to the Commission
after competent authorities and organisations have
been consulted at the appropriate territorial level.

support measures

Rural development

2.
to be
applied in one area shall be integrated, whenever
into a single plan. Wherever several plans
possible,
the relationship between
need to be established,
measures put forward in such plans shall be indicated
and their compatibility and consistency ensured.

Article 42

— where appropriate, information on the needs for
any studies, demonstration projects, training or
technical assistance operations
relating to the
preparation, implementation or adaptation of the
measures concerned,

— the designation of competent authorities and

bodies responsible,

— provisions

to ensure the effective and correct
implementation of the plans, including monitoring
quantified
and
for
arrangements
evaluation,
indicators
controls and sanctions and adequate publicity,

evaluation,

definition

for

of

a

Rural development plans shall cover a period of seven
years from 1 January 2000.

— the results of consultations and designation of
associated authorities and bodies as well as the
economic and social partners at the appropriate
levels.

Article 43

2.

In their plans, Member States shall:

1.

Rural development plans shall include:

— a quantified description of the current situation
for
gaps
showing disparities,
development, the financial resources deployed and
the main results of operations undertaken in the
previous programming period with regard to the
evaluation results available,

and potential

— a description of

the

its
and rural development
selected, and the geographical area

strategy proposed,

quantified objectives,
priorities
covered,

— an appraisal
and
environmental
employment effects,

showing the expected economic,
including

impact,

social

— an indicative overall financial table summarising
the national and Community financial resources
provided for and corresponding to each rural
development priority submitted in the context of
the plan and, where the plan covers rural areas in
Objective 2, identifying the indicative amounts for
rural development measures under Article 33 in
these areas,

— a description of the measures contemplated for
implementing the plans, and in particular aid
schemes,
for
assessing the rules of competition,

the points necessary

including

— provide for agri-environment measures throughout
their territories, and in accordance with their
specific needs,

— ensure the necessary balance is kept between the

different support measures.

Article 44

1.
Rural development plans shall be submitted not
later than six months after the entry into force of this
Regulation.

2.
The Commission shall appraise the proposed
plans to determine whether they are consistent with
this Regulation. On the basis of the plans,
it shall
approve rural development programming documents
in accordance with the procedure referred to in Article
50(2) of Regulation (EC) No 1260/1999 within six
months after the submission of the plans.

CHAPTER III

ADDITIONAL MEASURES AND COMMUNITY
INITIATIVES

Article 45

Pursuant

1.
No 1260/1999,

to Article 21(2) of Regulation (EC)
the

the Commission,

following

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laid down in Article 50(2) of

in Article 35(2) of
of measures

procedure
that
Regulation, may extend the scope of assistance from
the EAGGF Guidance Section beyond that provided
this Regulation and the
for
under Council
eligible
financing
Regulations (EC) No 1262/1999 (1), (EC) No 1261/
1999 (2) and (EC) No 1263/1999 (3) with a view to
implementing
rural
all
development Community initiative.

the measures

the

in

1999 shall not apply to support for rural development
measures in relation to Objective 2.

The Commission shall take the necessary action to
ensure efficient and coherent implementation of these
measures which shall attain at
same
standards as those laid down in the provisions referred
to in the first subparagraph, including the principle of
a single management authority.

least

the

2.
The EAGGF Guarantee Section may, on the
initiative of the Commission, finance studies related to
rural development programming.

2.
For measures covered by rural development
programming,
the Community shall contribute to
to the principles laid down in
financing pursuant
Articles 29 and 30 of Regulation (EC) No 1260/1999.

CHAPTER IV

FINANCIAL PROVISIONS

Article 46

In this connection:

— the Community contribution shall not exceed
50 % of the total eligible cost and, as a general
rule, shall be equal to at least 25 % of eligible
covered by
expenditure
public
Objective 1 and Objective 2,

in areas not

Community support for rural development from
1.
the EAGGF Guarantee Section shall be subject
to
financial planning and accounting on an annual basis.
rural
The financial planning shall
development programming (Article 40(3)) or of
programming related to Objective 2.

form part of

The Commission shall make initial allocations to
2.
Member States, broken down on an annual basis and
using objective criteria which take into account
particular situations and needs, and efforts to be
undertaken especially
job
for
creation and maintenance of the landscape.

environment,

the

expenditure

Initial allocations shall be adjusted on the basis
3.
expenditure
and
actual
of
forecasts submitted by the Member States taking into
account programme objectives, and be subject to the
funds available and as a rule be consistent with the aid
intensity for rural areas covered by Objective 2.

revised

— for

the rates

revenue-bearing investment,

laid
down in Article 29(4)(a)(ii) and (iii) and (b)(ii) and
(iii) of Regulation (EC) No 1260/1999 shall apply.
Agricultural and forestry holdings and businesses
involved in the processing and marketing of
agricultural and forestry products are businesses in
that
respect within the meaning of Article
29(4)(b)(iii),

— the Community contribution to the programming
for measures laid down in Articles 22 to 24 of this
Regulation shall be 75 % in areas covered by
Objective 1 and 50 % in the other areas.

The fifth subparagraph of Article 32(1) of Regulation
(EC) No 1260/1999 shall apply to such payments.

financial

Payments of

from the
3.
EAGGF Guarantee Section may take the form of
advances
implementation and of
payments in respect of expenditure incurred.

for programme

assistance

Article 47

CHAPTER V

MONITORING AND EVALUATION

1.
The financial provisions laid down in Articles 31,
32 (except for the fifth subparagraph of paragraph 1
thereof), 34, 38 and 39 of Regulation (EC) No 1260/

Article 48

(1) OJ L 161, 26.6.1999, p. 48.
(2) OJ L 161, 26.6.1999, p. 43.
(3) OJ L 161, 26.6.1999, p. 54.

1.
The Commission and the Member States shall
ensure effective monitoring of implementation of rural
development programming.

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Such monitoring shall be carried out by way of

2.
jointly agreed procedures.

Monitoring shall be carried out by reference to
specific physical and financial indicators agreed and
established beforehand.

Member States shall submit annual progress reports to
the Commission.

CHAPTER VI

IMPLEMENTING RULES

Article 50

Detailed rules for the application of this Title shall be
adopted in accordance with the procedure laid down
in Article 50(2) of Regulation (EC) No 1260/1999.

3. Where appropriate, monitoring committees shall
be established.

These rules may in particular define the details of:

Article 49

Evaluation

of measures

1.
rural
development programming shall be carried out on the
basis of the principles laid down in Articles 40 to 43
of Regulation (EC) No 1260/1999.

covered

by

The EAGGF Guarantee Section may, within the
2.
the financial resources allocated to
framework of
of
the
participate
programmes,
evaluations
in the
Member States. The EAGGF Guarantee Section may
also, on the initiative of
finance
evaluations at Community level.

in
relating to rural development

the Commission,

financing

— the presentation of
(Articles 41 to 44),

rural development plans

— the revision of rural development programming

documents,

— financial

planning,

ensure
budgetary discipline (Article 46), and participation
in financing (Article 47(2)),

particular

to

in

— monitoring and evaluation (Articles 48 and 49),

— how to

ensure

consistency

rural
development measures and the support measures
introduced by the market organisations (Article
37).

between

TITLE IV

STATE AID

Article 51

— the

protection

and

improvement

of

the

environment,

1.
Save as otherwise provided in this Title, Articles
87 to 89 of the Treaty shall apply to aid granted by
Member
rural
development.

for measures

to support

States

However, Articles 87 to 89 of the Treaty shall not
apply to financial contributions provided by Member
States for measures subject to Community support
within the scope of Article 36 of
the Treaty in
accordance with the provisions of this Regulation.

2.
Aid for investment in agricultural holdings which
exceeds the percentages referred to in Article 7 shall
be prohibited.

This prohibition does not apply to aid for investments
relating to:

— investments undertaken predominantly in the
public interest
related to the conversation of
traditional landscapes shaped by agricultural and
forestry activities or relocation of farm buildings,

— improvement

of

the

hygiene

conditions

of

livestock enterprises and the welfare of animals.

State aid granted to farmers to compensate for
3.
natural handicaps
shall be
prohibited if it does not satisfy the conditions laid
down in Articles 14 and 15.

in less-favoured areas

State aid to support

4.
farmers who give agri-
environmental commitments which fail to satisfy the
conditions laid down in Articles 22 to 24 shall be
prohibited. However,
exceeding
maximum amounts fixed according to Article 24(2)
may be granted if justified under paragraph 1 of that
Article. In duly justified exceptional cases derogation
may be permitted in respect of the minimum duration
of these commitments as laid down in Article 23(1).

additional

aid

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Article 52

Within the scope of Article 36 of the Treaty, State aid
intended to provide additional
financing for rural
development measures for which Community support

is granted shall be notified by Member States and
approved by the Commission in accordance with the
provisions of this Regulation as part of programming
referred to in Article 40. The first sentence of Article
88(3) of the Treaty shall not apply to aid thus notified.

TITLE V

TRANSITIONAL AND FINAL RULES

Article 53

and 31 December of the marketing year in respect
of which the aid is applied for.

be

Should

specific measures

1.
to
facilitate the transition from the system in force to the
one established by this Regulation, such measures shall
be adopted by the Commission in accordance with the
procedures laid down in Article 50(2) of Regulation
(EC) No 1260/1999.

necessary

2.
Such measures shall in particular be adopted for
the integration of existing Community support actions,
approved by the Commission for a period ending after
1 January 2000 or without any time limit, into the
rural development
support provided for by this
Regulation.

Article 54

The Commission

4.
the
procedure laid down in Article 20, adopt rules for
the application of this Article’.

following

shall,

2.
Article 6 of Council Regulation (EEC) No 404/
93 of 13 February 1993 on the common organisation
of the market in bananas (2) shall be replaced by the
following text:

(cid:28)Article 6

the Member

For the five years following the date of
1.
recognition,
grant
recognised producer organisations assistance to
encourage their establishment and assist with their
administrative operation.

States

shall

1.
Article 17 of Council Regulation (EEC) No 1696/
71 of 26 July 1971 on the common organisation of
(1) shall be replaced by the
the market
following:

in hops

(cid:28)Article 17

2.

Such aid:

— shall be, for the first, second, third, fourth and
fifth years respectively, 5 %, 5 %, 4 %, 3 % and
2 % of the value of production marketed under
the auspices of the producer organisation,

1.
the
The Regulations on the financing of
common agricultural policy shall apply to the
market in the products referred to in Article 1(1)
the
date
from the
arrangements laid down herein.

implementation

of

of

— shall not exceed the actual cost of formation
the

operation

of

administrative

and
organisation concerned,

— shall be paid in annual

instalments for a
maximum of seven years following the date of
recognition.

The aid referred to in Article 8 shall be

2.
subject to part financing by the Community.

The value of each year’s production shall be
calculated on the basis of:

3. Member States shall pay the aid referred to in
Article 12 to the producers between 16 October

— the annual volume actually marketed,

(1) OJ L 175, 4.8.1971, p. 1. Regulation as last amended by
Regulation (EC) No 1554/97 (OJ L 208, 2.8.1997, p. 1).

(2) OJ L 47, 25.2.1993, p. 1. Regulation as last amended by
Regulation (EC) No 1637/98 (OJ L 210, 28.7.1998, p.
28).

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— the average producer prices obtained.

deriving

Producer

organisations

3.
from
organisations which already comply to a large
extent with the conditions of this Regulation shall
qualify for aid under this Article only if they are
formed as the result of a merger enabling the
objectives referred to in Article 5 to be achieved
more effectively. However, in such a case, the aid
shall be granted only in respect of the cost of
formation
(expenditure
incurred in connection with the preparatory work
and the drawing up of
the memorandum and
articles of association).

organisation

the

of

4.
The aid referred to in this Article shall be
notified to the Commission in a report from the
Member States at the close of each financial year’.

3.
Council Regulation (EC) No 2200/96 of 28
October 1996 on the common organisation of the
market in fruit and vegetables (1) is hereby amended
as follows:

(a) Article 15(6) shall be replaced by the following:

In regions of

(cid:28)6.
the Community where the
degree of organisation of producers is particularly
low, Member States may be authorised, on a duly
producer
substantiated
organisations national financial assistance equal to
a maximum of half the financial contributions of
producers. This assistance shall be additional to
the operational fund.

request,

pay

to

and whose

For Member States where producer organisations
market less than 15 % of the fruit and vegetable
production
vegetable
production represents at least 15 % of their total
agricultural output, the assistance referred to in
the first subparagraph may be partly reimbursed
by the Community at the request of the Member
State concerned’.

fruit

and

be deemed to be
intervention to stabilise
agricultural markets within the meaning of Article
1(2)(b) of Regulation (EC) No 1257/1999 (*).

2.
Expenditure relating to the aid granted by
the Member States in accordance with Article 14
and the second subparagraph of Article 15(6) shall
be deemed to be
intervention to stabilise
agricultural markets within the meaning of Article
1(2)(b) of Regulation (EC) No 1257/1999. It shall
be eligible for part financing by the Community.

The Commission

the
3.
procedure laid down in Article 46, adopt rules for
the application of paragraph 2 of this Article.

following

shall,

The provisions of Title VI

shall apply
4.
without prejudice to the application of Council
Regulation (EEC) No 4045/89 of 21 December
States
scrutiny
1989
of
system of
forming part of
transactions
financing by the Guarantee
the
European Agricultural Guidance and Guarantee
Fund and repealing Directive 77/435/EEC (**).

by Member
the
Section of

on

(*) OJ L 160, 26.6.1999, p. 80.
(**) OJ L 388, 30.12.1989, p. 17. Regulation as
last amended by Regulation (EC) No 3235/94
(OJ L 338, 28.12.1994, p. 16)’.

Article 55

1.

The following Regulations are hereby repealed:

— Regulation (EEC) No 4256/88,

— Regulations (EC) No 950/97, (EC) No 951/97,
(EC) No 952/97 and Regulation (EEC) No 867/
90,

(b) Article 52 shall be replaced by the following:

— Regulations (EEC) No 2078/92, (EEC) No 2079/

(cid:28)Article 52

Expenditure relating to the payment of the
1.
Community withdrawal
compensation and to
Community financing of the operational fund, the
specific measures referred to in Article 17 and
Articles 53, 54 and 55 and checks by experts of
the Member
to the
Commission in application of Article 40(1) shall

States made

available

92, (EEC) No 2080/92,

— Regulation (EEC) No 1610/89

2.

The following provisions are hereby deleted:

— Article 21 of Regulation (EEC) No 3763/91 (2),

— Article 32 of Regulation (EEC) No 1600/92 (3),

(1) OJ L 297, 21.11.1996, p. 1. Regulation as last amended
by Regulation (EC) No 857/1999 (OJ L 108, 27.4.1999,
p. 7).

(2) OJ L 356, 24.12.1991, p. 1.
(3) OJ L 173, 27.6.1992, p. 1.

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— Article 27 of Regulation (EEC) No 1601/92 (1),

— Article 13 of Regulation (EEC) No 2019/93 (2).

accordance with Article 21(2) and (3) of Regulation
(EC) No 950/97 shall remain in force unless further
amended in the framework of programmes.

3.
The Regulations repealed and provisions deleted
under paragraphs 1 and 2 respectively shall continue
to apply to actions approved by the Commission
under the Regulations before 1 January 2000.

This Regulation shall enter into force on the seventh
day following its publication in the Official Journal of
the European Communities.

Article 56

Council and Commission Directives adopting
4.
lists of less-favoured areas or amending such lists in

It shall apply in relation to Community support as
from 1 January 2000.

This Regulation shall be binding in its entirety and directly applicable in all Member
States.

Done at Brussels, 17 May 1999.

For the Council

The President

K.-H. FUNKE

(1) OJ L 173, 27.6.1992, p. 13.
(2) OJ L 184, 27.7.1993, p. 1.

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8(2)

12(1)

15(3)

16

24(2)

31(4)

ANNEX

TABLE OF AMOUNTS

Article

Subject

Setting-up aid

Euro

25 000

Early retirement

15 000 (*)

per transferor and year

150 000
3 500

35 000

total amount per transferor
per worker and year

total amount per worker

Minimum compensatory
allowance
Maximum compensatory
allowance

25 (**)

200

per hectare of areas used for
agriculture
per hectare of areas used for
agriculture

Maximum payment

200

per hectare

Annual crops
Specialised perennial crops

Other land uses

Maximum annual premium to
cover loss of income from
afforestation

— for farmers or associations

thereof

— for any other private law

person

600
900

450

725

185

40

120

per hectare
per hectare

per hectare

per hectare

per hectare

per hectare

per hectare

32(2)

Minimum payment

Maximum payment

(*)

Subject to the total maximum per transferor, the maximum annual payments may be increased up to twofold
taking account of the economic structure of holdings in territories and the objective of speeding up the
adjustment of agricultural structures.

(**) This amount may be reduced to take account of the particular geographical situation or economic structure of
holdings in certain territories and in order to avoid overcompensation in accordance with Article 15(1), second
indent.