Council Regulation (EC) No 1259/1999 of 17 May 1999 establishing common rules for direct support schemes under the common agricultural policy
Date: 1999-05-17
Institutions: Council of the European Union
Subjects: EAGGF, agricultural guidance, aid to agriculture, common agricultural policy

26.6.1999

EN

Official Journal of the European Communities

L 160/113

COUNCIL REGULATION (EC) No 1259/1999

of 17 May 1999

establishing common rules for direct support schemes under the common agricultural
policy

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 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),

Having regard to the opinion of
Auditors (5),

the Court of

(1) Whereas for direct payments under the various
income
common
schemes
agricultural policy some common conditions
should be established;

support

the

in

(2) Whereas

provided

payments

under
Community support schemes should be made by
the competent national authorities in full
to
beneficiaries subject to any reductions explicitly
provided for in this Regulation;

for

the

into

(3) Whereas, with a view to better integrating the
common market
environment
organisations, Member
should apply
appropriate environmental measures in relation
to agricultural land and agricultural production
subject
to direct payments; whereas Member
States should decide on the consequences in the
case of environmental requirements not being

States

(1) OJ C 170, 4.6.1998, p. 93.
(2) Opinion delivered on 6 May 1999 (not yet published in

the Official Journal).

(3) OJ C 407, 28.12.1998, p. 208.
(4) OJ C 93, 6.4.1999, p. 1.
(5) OJ C 401, 22.12.1998, p. 3.

should be
observed; whereas Member States
even cancel benefits
enabled to reduce or
accruing from support
schemes where such
environmental requirements are not respected;
should be taken by
whereas
Member States notwithstanding the possibility of
granting
agri-
environmental commitments;

aid in return for optional

such measures

(4) Whereas,

of

overall

holdings

prosperity

in order to stabilise the employment
situation in agriculture and to take into account
and
the
Community support to those holdings and thus
to contribute to a fair standard of living for the
agricultural community,
including all persons
engaged in agriculture, Member States should be
authorised to reduce direct payments to farmers
in cases where the labour force used on their
holding falls short of limits to be determined
and/or where the overall prosperity of holdings
and/or the total amounts of payments rise above
limits to be decided by Member States; whereas
in order to maintain in particular agricultural
productivity, such reductions should, however,
not
total amount of
payments;

exceed 20 % of

the

rules

reductions

detailed
of
for
(5) Whereas
should be determined by Member
payments
States on the basis of objective criteria; whereas
enabled to use
should be
Member States
amounts made
from payment
available
reductions for certain additional measures in the
support
framework
provided for under 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 (6);

development

rural

of

(6) Whereas common support schemes have to be
adapted to market developments,
if necessary
within short time limits; whereas beneficiaries
cannot,
therefore, rely on support conditions
remaining unchanged and should be prepared for
a possible review of schemes in the light of
market developments;

(6) See page 80 of this Official Journal.

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Official Journal of the European Communities

26.6.1999

(7) Whereas the support schemes under the common
agricultural policy provide for direct
income
support in particular with a view to ensuring a
fair
the agricultural
living for
standard of
this objective is closely
community; whereas
related to the maintenance of
rural areas;
whereas,
in order to avoid misallocations of
Community funds, no support payments should
be made to those farmers
is
established that they have artificially created the
conditions required for obtaining such payments
with a view to obtaining an advantage contrary
to the objectives of support schemes;

for whom it

land used or the production concerned and which
reflect
the potential environmental effects. These
measures may include:

— support

in
commitments,

return

for

agri-environmental

— general mandatory environmental requirements,

— specific environmental requirements constituting a

condition for direct payments.

(8) Whereas,

in view of the significant budgetary
implications of direct payment support and in
impact,
order
to a
Community schemes
proper evaluation,

appraise
should be subject

better

their

to

2. Member States shall decide on the penalties that
are appropriate and proportionate to the seriousness
of the ecological consequences of not observing the
environmental requirements referred to in paragraph
1. They may provide for a reduction or, where
appropriate, a cancellation of the benefits accruing
from the
such
schemes
environmental requirements are not respected.

concerned

support

if

HAS ADOPTED THIS REGULATION:

Article 1

Scope

Article 4

Modulation

This Regulation shall apply to payments granted
directly to farmers under support schemes in the
framework of the common agricultural policy which
are financed in full or in part by the (cid:28)Guarantee’
those provided for
section of
under Regulation (EC) No 1257/1999.

the EAGGF, except

These support schemes are listed in the Annex.

the
1. Member States may decide
amounts of payments which would, but
this
paragraph, be granted to farmers in respect of a given
calendar year in cases where:

to reduce
for

— the labour force used on their holdings during that
calendar year, expressed in annual work units, falls
short of limits to be determined by the Member
States, and/or

Article 2

Full payment

— the overall prosperity of their holdings during that
calendar year, expressed in the form of standard
average
gross margin
situation of either a given region or a smaller
geographic entity, rises above limits to be decided
by Member States, and/or

corresponding

the

to

Payments under support schemes shall be made in full
to the beneficiaries.

Article 3

Environmental protection requirements

— the total amounts of payments granted under
support schemes in respect of a calendar year
exceed limits to be decided by Member States.

(cid:28)Annual work unit’ shall mean the national or regional
average annual working time of adult full-time farm
workers employed throughout a calendar year.

1. Where agricultural activity within the scope of
this Regulation is concerned, Member States shall take
the environmental measures
to be
appropriate in view of the situation of the agricultural

they consider

(cid:28)Standard gross margin’ shall mean the difference
between standard production value and the standard
amount for certain specific costs.

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Official Journal of the European Communities

L 160/115

2.
The reduction of support to a farmer in respect
of a given calendar year, resulting from the application
of the measures referred to in paragraph 1, shall not
exceed 20 % of the total amount of payments which
would, but for paragraph 1, be granted to the farmer
in respect of the calendar year concerned.

Article 5

Common provision

1. Member States shall apply the measures referred
to in Articles 3 and 4 in such a way as to ensure equal
treatment between farmers and to avoid market and
competition distortions.

2.
The difference between the amounts which
would, but for Articles 3 and 4, be paid to farmers in
a Member State in respect of a calendar year and the
amounts calculated after application of those Articles ,
shall be available to the Member State concerned
within time limits to be fixed under the procedure
referred to in Article 11 as additional Community
support for measures under Articles 10 to 12 (early
retirement), 13 to 21 (less-favoured areas and areas
with environmental
restrictions), 22 to 24 (agri-
environment) and 31 (afforestation) of Regulation
(EC) No 1257/1999.

designed to appraise their impact with respect of their
objectives and to analyse their effects on the relevant
markets.

Article 9

Transmission of information to the Commission

Member States shall inform the Commission in detail
on the measures taken to implement this Regulation.

Article 10

Definitions

For the purposes of this Regulation:

(a) (cid:28)farmer’

shall mean an individual agricultural
producer, whether a natural or legal person or a
group of natural or legal persons, whatever legal
status is granted the group and its members by
national law, whose holding is within Community
territory,

Article 6

Review

(b) (cid:28)holding’

shall mean all

the production units
managed by a farmer situated within the same
Member State's territory,

Support schemes shall be applied without prejudice to
possible review at any moment in the light of market
developments.

(c) payments to be granted in respect of a calendar
year shall
include payments to be granted in
respect of other periods starting in that calendar
year.

Article 7

Restriction of payments

Nothwithstanding any specific provisions in individual
support schemes, no payment shall be made in favour
of beneficiaries for whom it is established that they
artificially
for
obtaining such payments with a view to obtaining an
advantage contrary to the objectives of that support
scheme.

conditions

required

created

the

Article 8

Evaluation

In order to gauge their effectiveness, payments under
to evaluation
support

shall be

schemes

subject

Article 11

Detailed rules

In accordance with the procedure referred to in Article
9 of Council Regulation (EC) No 1251/1999 of 17
May 1999 establishing a support system for producers
of certain arable crops (1), the procedure referred to in
Article 43 of Council Regulation (EC) No 1254/1999
of 17 May 1999 on the common organisation of the
market in beef and veal (2) or, as appropriate, the
corresponding Articles in the other Regulations on the
common organisation of agricultural markets,
the
Commission shall adopt:

(1) See page 1 of this Official Journal.
(2) See page 21 of this Official Journal.

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Official Journal of the European Communities

26.6.1999

— where

detailed

appropriate,

the
application of
in
particular, the measures necessary to avoid Articles
3 and 4 being circumvented, as well as those
concerning Article 7 and

this Regulation including,

rules

for

— amendments

to the Annex as may become
necessary taking into account the criteria set out
in Article 1.

Article 12

Entry into force

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

It shall apply 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

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Official Journal of the European Communities

L 160/117

LIST OF SUPPORT SCHEMES FULFILLING THE CRITERIA SET OUT IN ARTICLE 1

ANNEX

Sector

Legal base

Notes

Arable crops

Articles 2 and 5
Regulation (EC) No 1251/1999

set-aside
Area payments
payments and including durum wheat
supplement and special aid

including

Potato starch

Cereals

Olive oil

Grain legumes

Flax

Hemp

Silkworms

Bananas

Dried grapes

Tobacco

Seeds

Hops

Rice

Article 8(2)
Regulation (EEC) No 1766/92

Payment

Article 3
Regulation (EEC) No 3653/90 (as
read together with Regulation (EEC)
No 738/93)

Transitional
governing
measures
common organisation of the market
for cereals in Portugal

Article 5(1)
Regulation 136/66/EEC

Article 1
Regulation (EC) No 1577/96

Article 4
Regulation (EEC) No 1308/70

Article 4
Regulation (EEC) No 1308/70

Article 2
Regulation (EEC) No 845/72

Article 12
Regulation (EEC) No 404/93

Article 7(1)
Regulation (EC) No 2201/96

Article 3
Regulation (EEC) No 2075/92

Article 3
Regulation (EEC) No 2358/71

Article 12
Regulation (EEC) No 1696/71

Production aid

Area aid

Area aid (the portion paid to farmers)

Area aid

Aid to encourage rearing

Production aid

Area aid

Production aid

Production aid

Area aid

Regulation (EC) No 1098/98

Payments for temporary resting only

Article 6
Regulation (EC) No 3072/95

Area aid

Beef and veal

Articles 4, 5, 6 and 10, 11, 13
Regulation (EC) No 1254/1999

premium,
suckler

deseasonalisation
Special
premium,
cow premium
(including when paid for heifers and
national
including
suckler
co-
premium,
financed),
extensification
additional
payments

cow premium when

additional

payment,

slaughter

the

Milk and dairy
products

Sheep and goats

Agri-money

Articles 16 and 17
Regulation (EC) No 1256/1999

Dairy
payments

premium and

additional

Article 5
Regulation (EC) No 2467/98

Ewe and she-goat premium and LFA
supplements

Articles 4 and 5 of
Regulation (EC) No 2799/98
Articles 2 and 3 of
Regulation (EC) No 2800/98

Payments
those
Regulation)

to producers

under

the

(including
transitional

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Official Journal of the European Communities

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Sector

Legal base

Notes

Poseidom

Poseima

Poseican

Articles 5, 13(1), 17
Regulation (EEC) No 3763/91

Sectors: beef and veal; development of
fruit, vegetables, plants and flowers;
sugar

Articles 11, 14 & 24, 16 & 27,
17 & 25(1), 22 & 29, 30
Regulation (EEC) No 1600/92

Articles 10, 13, 15, 19, 20, 24
Regulation (EEC) No 1601/92

of

development

Sectors:
fruit,
vegetables, plants and flowers; beef
and veal and milk; potatoes and
endives; sugar; wine; pineapples
Sectors: beef and veal; development of
fruit, vegetables, plants and flowers;
sheep and goats; wine; potatoes;
honey

Aegean Islands

Articles 6, 7, 8, 9, 11, 12
Regulation (EEC) No 2019/93

Sectors: beef and veal; development of
fruit, vegetables, plants and flowers;
potatoes; wine; olives; honey