Commission Regulation (EC) No 445/2002 of 26 February 2002 laying down detailed rules for the application of Council Regulation (EC) No 1257/1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF)
Date: 2002-02-26
Institutions: European Commission
Subjects: EAGGF Guarantee Section, EAGGF Guidance Section, State aid, aid to agriculture, regional aid, rural development

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I

(Acts whose publication is obligatory)

COMMISSION REGULATION (EC) No 445/2002

of 26 February 2002

laying down detailed rules for the application of Council Regulation (EC) No 1257/1999 on
support for rural development from the European Agricultural Guidance and Guarantee Fund
(EAGGF)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Com-
munity,

Having regard to 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 (1), and in
particular Articles 34, 45 and 50 thereof,

(3)

Whereas:

eligible for support, their objectives and the criteria for
eligibility. This legal framework applies to support for
rural development throughout the Community.

Detailed rules should be adopted to supplement this
framework, taking account of experience gained using
the instruments applied under the various Council
Regulations repealed by Article 55(1) of Regulation (EC)
No 1257/1999. Those rules should follow the principles
of subsidiarity and proportionality, and should therefore
be restricted to what is necessary for the attainment of
the aims being pursued.

(1)

Commission Regulation (EC) No 1750/1999 of 23 July
1999 laying down detailed rules for the application of
Council Regulation (EC) No 1257/1999 on support
for rural development from the European Agricultural
Guidance and Guarantee Fund (EAGGF) (2), as last
amended by Regulation (EC) No 1763/2001 (3), has been
substantially amended a number of times. Moreover,
experience gained during the first two years of program-
ming shows that further clarifications are needed, in
particular as concerns the procedure for amending
programming documents and the indicative overall
financial table. In the interests of clarity and rationalis-
ation, therefore, Regulation (EC) No 1750/1999 should
be recast.

(2)

Regulation (EC) No 1257/1999 established a single legal
framework for EAGGF support for rural development.
In particular, Title II thereof specifies the measures

(4) With respect to the eligibility criteria, Regulation (EC)
No 1257/1999 lays down three basic conditions for
support for investment in agricultural holdings and
processing plants and support for young farmers. The
time at which those conditions must be fulfilled should
be specified, including, in the case of investment aid, the
condition regarding demonstration of the economic
viability of an agricultural holding, on the basis of an
adequate assessment of the prospects of that holding. It
can be very difficult for farms in rural areas facing very
serious structural difficulties to meet these requirements.
In the case of small investments, Member States should
be allowed to grant farms a period of grace in which to
meet these requirements.

(1) OJ L 160, 26.6.1999, p. 80.
(2) OJ L 214, 13.8.1999, p. 31.
(3) OJ L 239, 7.9.2001, p. 10.

(5)

Community support for investments in holdings and
processing plants is subject to the condition that normal
market outlets can be found for the products concerned.
Detailed rules should be laid down for assessing such
market outlets.

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(6)

Support for vocational training should not cover normal
agricultural and forestry education.

No 1257/1999, under which no support may be granted
for investments intended for the processing or marketing
of products from third countries.

(7)

(8)

(9)

As regards the conditions for early retirement support,
specific problems arising where a holding is transferred
by several transferors or by a tenant farmer should be
solved.

Compensatory allowances payable in less-favoured areas
for land used jointly by several farmers should be paid
to each farmer concerned in proportion to the degree to
which the farmer is entitled to its use.

Article 16 of Regulation (EC) No 1257/1999 provides
that farmers may receive support to offset additional
costs and loss of income if they farm in areas where
environmental constraints mean that they are subject to
environmental protection restrictions based on Com-
munity provisions. Council Directive 91/676/EEC of
12 December 1991 concerning the protection of waters
against pollution caused by nitrates from agricultural
sources (4) is intended to reduce the pollution of waters
by nitrates from agriculture and to prevent it from
In line with the ‘polluter pays’ principle
spreading.
in Article 174(2) of the Treaty, there should be no
compensation for the costs and income losses resulting
from application of the restrictions imposed by that
Directive, which should therefore be excluded from the
scope of Article 16 of Regulation (EC) No 1257/1999.

(10) As regards agri-environment support, the minimum
requirements to be met by farmers in connection
with the various agri-environment commitments should
ensure a balanced application of agri-environment sup-
port that takes account of its objectives and will thus
contribute to sustainable rural development.

(11) The selection criteria for investments to improve the
processing and marketing of agricultural products
should be fixed. The experience gained shows that these
selection criteria should be based on broad principles
rather than sectoral rules.

(12) The outermost regions of the Community should be
exempt, subject to certain conditions, from the second
(EC)
28(1)
indent

of Article

Regulation

of

(13) The forests not eligible for support under Article 29(3)
of Regulation (EC) No 1257/1999 should be defined in
greater detail.

(14) Detailed conditions should be laid down for support for
land and payments for
afforestation of agricultural
activities to maintain and improve the ecological stability
of forests.

(15) Under Article 33 of Regulation (EC) No 1257/1999,
support is granted for other measures relating to farming
activities and their conversion and to rural activities that
are not covered by any other rural development measure.
Given the wide variety of measures which could be
covered by this Article, it should be left primarily to the
Member States to lay down the conditions for support
as part of their programming.

(16) Rules common to several measures should be laid down
to ensure, in particular, that common standards of good
farming practice are applied where measures refer to
that criterion, and to guarantee the flexibility needed for
long-term commitments to take account of events which
might affect those commitments without jeopardising
the effective implementation of the various support
measures.

(17) A clear dividing line should be drawn between financing
rural development support and financing support under
the common market organisations. Any exceptions to
the principle that measures covered by support schemes
under common market organisations should not be
eligible for rural development support should be pro-
posed by Member States in their rural development
programming, according to their specific needs and
following a transparent procedure.

(4) OJ L 375, 31.12.1991, p. 1.

(18) Rural development support payments should be made

in full to the beneficiaries.

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(19) Commission Regulation (EC) No 1685/2000 (5)

lays
down detailed rules for implementing Council Regu-
lation (EC) 1260/1999 of 21 June 1999 laying down
general provisions on the Structural Funds (6), as
amended by Regulation (EC) No 1447/2001 (7), as
regards eligibility of expenditure under operations part-
financed by the Structural Funds, and hence by the
EAGGF Guidance Section. In the interests of consistency,
Regulation (EC) No 1685/2000 should also apply to
measures part-financed by the EAGGF Guarantee Sec-
tion, except where otherwise provided in Regulation
(EC) No 1257/1999,
in Council Regulation (EC)
No 1258/1999 of 17 May 1999 on the financing of the
common agricultural policy (8) or in this Regulation.

(20) Commission Decision 1999/659/EC of 8 September
1999 fixing an indicative allocation by Member States
the allocations under the European Agricultural
of
Guidance and Guarantee Fund Guarantee Section for
rural development measures for the period 2000 to
2006 (9), as amended by Decision 2000/426/EC (10),
specifies the type of expenditure covered by the allo-
cations made to the Member States. Moreover, under
Commission Regulation (EC) No 2603/1999 of
9 December 1999 laying down rules for the transition
to the rural development support provided for by
Council Regulation (EC) No 1257/1999 (11), as last
amended by Regulation (EC) No 2055/2001 (12), pay-
ments arising from certain commitments made before
1 January 2000 may be included in the rural develop-
ment programming for 2000-2006, subject to certain
conditions. It is therefore necessary to specify what is
included in the overall amount of Community support
fixed for each rural development plan under the single
programming document approved by the Commission.

(21) Article 5 of Council Regulation (EC) No 1259/1999 of
17 May 1999 establishing common rules for direct
the common agricultural
support
policy (13),
(EC)
Regulation
No 1244/2001 (14), stipulates that the amounts accruing
from penalties for infringement of environmental pro-

schemes under

amended

by

as

(5) OJ L 193, 29.7.2000, p. 39.
(6) OJ L 161, 26.6.1999, p. 1.
(7) OJ L 198, 21.7.2001, p. 1.
(8) OJ L 160, 26.6.1999, p. 103.
(9) OJ L 259, 6.10.1999, p. 27.
(10) OJ L 165, 6.7.2000, p. 33.
(11) OJ L 316, 10.12.1999, p. 26.
(12) OJ L 277, 20.10.2001, p. 12.
(13) OJ L 160, 26.6.1999, p. 113.
(14) OJ L 173, 27.6.2001, p. 1.

tection requirements or from modulation remain avail-
able to the Member States as additional Community
support for certain rural development measures. Exactly
what the Commission’s approval covers in the case of
such measures should be specified.

(22) Detailed rules should be laid down for the presentation

of rural development plans and their revision.

(23)

In order to facilitate the establishment of rural develop-
ment plans and their examination and approval by the
Commission, common rules should be laid down for the
structure and content of those plans, based on the
requirements set out in particular in Article 43 of
Regulation (EC) No 1257/1999.

(24) Requirements should be set for amendments to rural
development programming documents so as to enable
the Commission to examine them quickly and efficiently.

(25) Only those amendments which involve important
changes to rural development programming documents
should be subject to the management committee pro-
cedure. Other amendments should be decided by the
Member States and communicated to the Commission.

(26)

In order to cover all the measures needed for the
implementation of the Community initiative programme
for rural development, the scope of the measures eligible
for aid from the EAGGF Guidance Section should be
extended beyond what is provided under Regulation
(EC) No 1257/1999.

(27) Detailed rules should be laid down on the financial
planning and contributions to financing of the measures
financed by the EAGGF Guarantee Section under
Article 35(1) and (2) of Regulation (EC) No 1257/1999.

(28)

In this connection, Member States should report regu-
larly to the Commission on the state of financing of
rural development measures.

(29)

Steps should be taken to ensure that appropriations
earmarked for rural development support are efficiently
used, in particular by providing for the Commission to
grant an initial advance payment to paying agencies and
for allocations to be adjusted according to needs and in

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the light of past performance. It would also be advisable
to provide for the possibility of granting advances
to certain categories of beneficiaries, under certain
conditions, in order to facilitate the implementation of
investment measures.

(30) The general rules on budgetary discipline, in particular
those relating to incomplete or incorrect declarations by
Member States, should apply in addition to the specific
rules laid down in this Regulation.

(33) The administrative rules should permit better adminis-
tration, monitoring and control of rural development
support. In the interests of simplicity, Council Regulation
(EEC) No 3508/92 of 27 November 1992 establishing
an integrated administration and control system for
certain Community aid schemes (15), as last amended by
Commission Regulation (EC) No 495/2001 (16), and the
detailed rules for applying it as laid down by Commission
Regulation (EC) No 2419/2001 (17), as amended by
Regulation (EC) No 2550/2001 (18), should be applied
wherever possible.

(31) The detailed financial administration of rural develop-
ment measures should be governed by the regulations
implementing Regulation (EC) No 1258/1999.

(34)

Provision should be made for a system of penalties at
both Community and Member State level.

(32)

Procedures and requirements for monitoring and evalu-
ation should be laid down following the principles
applicable to other Community support measures, in
particular
laid down by Regulation (EC)
No 1260/1999.

those

(35) The Committee on Agricultural Structures and Rural
Development has not delivered an opinion within the
time limit set by its chairman,

HAS ADOPTED THIS REGULATION:

CHAPTER I

RURAL DEVELOPMENT MEASURES

SECTION 1

Investment in agricultural holdings

support

Regulation (EC) No 1257/1999, Member States may grant
such farms
totalling less than
EUR 25 000 to enable them to comply with those require-
ments within a period of not more than three years from the
date of the decision to grant the support.

investments

for

Article 1

The provisions of the first subparagraph shall apply until
31 December 2002 and without prejudice to paragraph 2 of
this Article.

1.
The conditions for support for investment laid down in
Article 5 of Regulation (EC) No 1257/1999 must be fulfilled
at the time when the individual decision to grant support is
taken.

Article 2

1.
For the purposes of Article 6 of Regulation (EC)
No 1257/1999, the existence of normal market outlets shall
be assessed at the appropriate level in terms of:

2. Where investments are made in order to comply with
newly introduced minimum standards relating to the environ-
ment, hygiene, and animal welfare, support may be granted in
order to reach these new standards. In such cases, a period of
grace may be provided to meet these minimum standards
where time is needed to solve the specific problems involved
in reaching such standards and provided this is in accordance
with the specific legislation concerned.

(a)

the products concerned;

(b)

the types of investment;

(c)

existing and planned capacity.

In the case of farms in rural areas where the structural
3.
difficulties caused by the very small size of farms make it
particularly difficult to meet the requirements of Article 5 of

(15) OJ L 355, 5.12.1992, p. 1.
(16) OJ L 72, 14.3.2001, p. 6.
(17) OJ L 327, 12.12.2001, p. 11.
(18) OJ L 341, 22.12.2001, p. 105.

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2.
Any restrictions on production or limitations on Com-
munity support under common market organisations shall be
taken into account.

later than 12 months after start-up as defined by the provisions
in force in the Member States.

3. Where a common market organisation places restrictions
on production or limitations on Community support at the
level of individual farmers, holdings or processing plants,
no investment shall be supported which would increase
production beyond those restrictions or limitations.

2. Where young farmers who start up before 1 January
2002 would be able to receive support more than 12 months
after starting up under the arrangements in the programming
document approved by the Commission, Member States may
take the individual decision to grant support no later than
31 December 2002.

Article 3

1. Where investments are made by young farmers, the
maximum percentages of the volume of eligible investment
referred to in the second sentence of the second paragraph of
Article 7 of Regulation (EC) No 1257/1999 may be applied
for up to five years after setting-up.

Article 4(2) of

2.
this Regulation shall also apply to
investments made by young farmers within five years of
setting-up.

SECTION 2

Setting-up of young farmers

Article 4

1.
The conditions for start-up assistance for young farmers
laid down in Article 8(1) of Regulation (EC) No 1257/1999
must be met at the time when the individual decision to grant
support is taken. Farmers starting up under the conditions
described in Article 5(3) of this Regulation who apply for aid
no later than 31 December 2001 must meet the age condition
laid down in the first indent of Article 8(1) of Regulation (EC)
No 1257/1999 at the time of start-up.

2.
A period not exceeding three years may be allowed after
starting up in order to meet the requirements relating to
occupational skill and competence, economic viability and
minimum standards regarding the environment, hygiene and
animal welfare,
the young farmer needs a period of
adaptation in which to start up or to restructure the holding.

if

3. Where young farmers have started up in 1999, 2000 or
2001 and have not yet received support
for budget or
administrative reasons, Member States may take the individual
decision to grant support no later than 31 December 2001 or
within not more than 12 months after start-up.

SECTION 3

Training

Article 6

Support for vocational training shall not include courses of
instruction or training which form part of normal programmes
or systems of agricultural and forestry education at secondary
or higher levels.

SECTION 4

Early retirement

Article 7

Where a farm is transferred by several transferors, overall
support shall be limited to the amount provided for one
transferor.

Article 5

1.
The individual decision to grant the aid provided for in
Article 8 of Regulation (EC) No 1257/1999 shall be taken no

Non-commercial farming activity continued by the transferor
indent of Article 11(1) of
in accordance with the first
Regulation (EC) No 1257/1999 shall not be eligible for support
under the common agricultural policy.

Article 8

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Article 9

A tenant farmer may transfer the released land to the owner
provided that the lease is terminated and the requirements
relating to the transferee laid down in Article 11(2) of
Regulation (EC) No 1257/1999 are complied with.

Article 10

(b)

(c)

the livestock shall be distributed across the farm in such
a way that the whole of the grazed area is maintained,
thus avoiding both over-grazing and under-utilisation;

livestock density shall be defined taking into account all
grazing livestock kept on the farm or, in the case of a
commitment to limit nutrient leaching, all animals kept
on the farm which are relevant to the commitment in
question.

Released land may be included in a re-parcelling operation or
in a simple exchange of parcels.

Article 14

In such cases, the conditions applicable to released land shall
be applied to areas agronomically equivalent to the released
land.

Member States may make provision for released land to be
taken in charge by a body which undertakes to reassign it at a
later date to a transferee who satisfies the conditions laid down
for early retirement.

1.

Support may relate to the following commitments:

(a)

(b)

to rear farm animals of local breeds indigenous to the
area and in danger of being lost to farming;

to preserve plant genetic resources naturally adapted to
the local and regional conditions and under threat of
genetic erosion.

SECTION 5

Less-favoured areas and areas with environmental restric-
tions

2.
The local breeds and plant genetic resources must play a
role in maintaining the environment on the area to which the
measure provided for in paragraph 1 applies.

Article 11

The eligible species of farm animals and the criteria for
determining the threshold of loss to farming of local breeds
are defined in the table in Annex I to this Regulation.

Compensatory allowances for areas used jointly by several
farmers for the purpose of grazing animals may be granted to
each farmer concerned in proportion to that farmer’s use or,
right of use, of the land.

Article 12

The support provided for in Article 16 of Regulation (EC)
No 1257/1999 may not offset the costs and loss of income
resulting from the implementation of restrictions based on
Directive 91/676/EEC.

SECTION 6

Agri-environment

Article 13

Article 15

For the purposes of the second subparagraph of Article 24(1)
of Regulation (EC) No 1257/1999, capital works shall be
considered to be non-remunerative provided that they do not
normally lead to any significant net increase in the value or
profitability of the farm.

Article 16

Agri-environment commitments beyond the minimum period
of five years referred to in Article 23(1) of Regulation (EC)
No 1257/1999 shall not run for a longer period than is
reasonably necessary for the achievement of their environmen-
tal effects. They shall normally be for no longer than 10 years,
except in the case of specific commitments where a longer
period is found to be indispensable.

Any commitment to extensify livestock farming or manage
livestock farming differently shall comply with at least the
following conditions:

Article 17

(a)

grassland management shall continue;

Various agri-environment commitments may be combined
provided that they are complementary and compatible.

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Where agri-environment measures are thus combined, the
level of support shall take account of income forgone and
specific additional costs arising from the combination.

Incentives may not exceed 20 % of the income forgone and
additional costs due to the commitment given, except in the
case of specific commitments where a higher rate is deemed to
be indispensable for effective implementation of the measure.

Article 18

Article 20

1.
The reference level for calculating income forgone and
additional costs resulting from the commitments given shall
be the usual good farming practice in the area where the
measure is applied.

The economic consequences of abandoning land or ceasing
certain farming practices may be taken into account where this
is justified by the agronomic or environmental circumstances.

2.
Payments may not be made per unit of production,
except in the case of support for rearing farm animals of
breeds which are in danger of being lost, which may be paid
per livestock unit or per animal reared. Where commitments
are normally expressed in units other than area, Member States
may calculate payments on the basis of those units.

3.
In the specific cases referred to in paragraph 2, Member
States shall ensure that the maximum amounts per year eligible
for Community support as set out in the Annex to Regulation
(EC) No 1257/1999 are complied with.

To this end the Member State may:

(a)

set a limit on the number of units per hectare of the farm
to which the agri-environment commitments applies; or

(b) determine the overall maximum amount for each partici-
pating farm and ensure that the payments for each farm
are compatible with this limit.

4.
Payments may be based on limitations on the use of
fertilisers, plant protection products or other inputs only if
such limitations are technically and economically measurable.

A farmer who gives an agri-environment commitment relating
to one part of a farm shall adhere to at least the standard of
usual good farming practice throughout the farm.

Article 21

1. Member States may authorise one commitment to be
converted into another during the period of its operation, on
condition that:

(a)

any such conversion is of unquestionable benefit to the
environment;

(b)

the existing commitment is significantly reinforced; and

(c)

the approved programme includes the commitments
concerned.

An agri-environment commitment may be converted into a
commitment
land under
for afforestation of agricultural
Article 31 of Regulation (EC) No 1257/1999 subject to the
conditions set out in points (a) and (b) of the first subparagraph
of this paragraph. The agri-environment commitment shall
cease without reimbursement being required.

2. Member States may allow agri-environment commit-
ments to be adjusted during the period for which they apply,
provided that the approved programme includes scope for
such adjustment and that the adjustment is duly justified
having regard to the objectives of the commitment.

SECTION 7

Improving the processing and marketing of agricultural
products

Article 19

Article 22

Eligible expenditure may include:

Member States shall determine the need to provide an incentive
as provided for in the third indent of the first subparagraph of
Article 24(1) of Regulation (EC) No 1257/1999 on the basis
of objective criteria.

(a)

the construction and acquisition of immovable property,
with the exception of land purchase;

(b) new machinery and equipment

including computer

software;

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(c)

general costs, such as architects’, engineers’ and consult-
ants’ fees, feasibility studies, acquisition of patents and
licences.

(c)

forests owned by legal persons at least 50 % of whose
capital is held by one of the institutions referred to in
points (a) and (b).

The costs referred to in point (c) of the first subparagraph are
in addition to the costs referred to in (a) and (b) and shall be
considered eligible expenditure up to a ceiling of 12 % of those
costs.

Article 26

Article 23

1.
For the purposes of Article 26(3) of Regulation (EC)
No 1257/1999, the existence of normal market outlets shall
be assessed at the appropriate level in relation to:

Agricultural land eligible for support for afforestation under
Article 31 of Regulation (EC) No 1257/1999 shall be specified
by the Member State and shall include in particular arable
land, grassland, permanent pastures and land used for peren-
nial crops, where farming takes place on a regular basis.

(a)

the products concerned;

(b)

the types of investment;

(c)

existing and planned capacity.

2.
Any restrictions on production or limitations on Com-
munity support under common market organisations shall be
taken into account.

Article 24

In the outermost regions, support may be granted for invest-
ment in the processing or marketing of products from third
countries, provided that the processed products are intended
for the market of the region in question.

For the purpose of compliance with the condition laid down
in the first subparagraph, support shall be limited to processing
capacity corresponding to regional needs, provided that such
processing capacity does not exceed such needs.

SECTION 8

Forestry

Article 25

The forests excluded from forestry support under Article 29(3)
of Regulation (EC) No 1257/1999 shall be:

(a)

forest or other wooded land owned by central or regional
governments, or by government-owned corporations;

(b) Crown forest and other wooded land;

Article 27

of Article

1.
For the purposes of the second indent of the second
subparagraph
(EC)
31(1)
‘farmer’ means a person who devotes an
No 1257/1999,
essential part of his or her working time to agricultural
activities and derives from them a significant part of his or her
income according to detailed criteria to be determined by the
Member State.

of Regulation

For

the purposes of

the second subparagraph of
2.
Article 31(3) of Regulation (EC) No 1257/1999, ‘fast-growing
species cultivated in the short term’ means species with a
rotation time, namely the period between two harvest cuts on
the same parcel, of less than 15 years.

Article 28

Support

under Article

1.
32 of Regulation (EC)
No 1257/1999 may not be granted for areas for which support
under Article 31 of that Regulation has been granted.

2.
Payments for maintaining fire-breaks through agricul-
tural measures under the second indent of Article 32(1) of
Regulation (EC) No 1257/1999 may not be granted for areas
which are the subject of agri-environment support.

Such payments shall be consistent with any restrictions on
production or limitations on Community support under
common market organisations and shall take account of
payments made under those common market organisations.

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SECTION 9

Provision may also be made for such replacement in cases
where the area covered by a commitment within a holding is
extended.

Rules common to several measures

Article 29

For the purposes of the third indent of Article 14(2) and
the first subparagraph of Article 23(2) of Regulation (EC)
No 1257/1999,
‘usual good farming practice’ means the
standard of farming which a reasonable farmer would follow
in the region concerned.

Member States shall set out verifiable standards in their rural
development plans. These standards shall at
least entail
compliance with general mandatory environmental require-
ments.

Article 30

Where a beneficiary transfers all or part of a holding to another
person during the period for which a commitment given as a
condition for the grant of support runs, the transferee may
take over the commitment for the remainder of the period. If
the commitment
the beneficiary shall
reimburse the support granted.

transferred,

is not

Member States may choose not to require such reimbursement
if a beneficiary who has already honoured a significant part of
the commitment concerned definitively ceases agricultural
activities and it is not feasible for a successor to take over the
commitment.

The extension referred to in paragraph 1 may be granted

2.
only under the following conditions:

(a)

it is of unquestionable benefit to the measure concerned;

(b)

it is justified in terms of the nature of the commitment,
the length of the remaining period and the size of the
additional area;

(c)

it does not impede the effectiveness of checks to ensure
compliance with the conditions for the grant of support.

The size of the additional area referred to in (b) must be
significantly less than the original area or not more than two
hectares.

3.
The new commitment referred to in paragraph 1 shall
cover the whole area concerned under terms at least as strict
as those of the original commitment.

Article 32

Where a beneficiary is unable to continue to comply with
commitments given because the holding is reparcelled or is
the subject of other similar public land-consolidation measures,
Member States shall take the measures necessary to allow the
commitments to be adapted to the new situation of the
holding. If such adaptation proves impossible, the commit-
ment shall expire and reimbursement shall not be required in
respect of the period in which the commitment was effective.

In the event of minor changes to the situation of a holding,
Member States may take specific measures to ensure that
application of the first subparagraph does not lead to inappro-
priate results in terms of the commitment entered into.

Article 33

Article 31

1. When a beneficiary increases the area of the holding
during the period for which a commitment given as a condition
for the grant of support runs, Member States may provide for
the commitment to be extended to cover the additional area
in
the period of
for the remainder of
accordance with paragraph 2, or for the original commitment
to be replaced by a new one in accordance with paragraph 3.

the commitment

1. Without prejudice to the actual circumstances to be
taken into consideration in individual cases, Member States
may recognise, in particular, the following categories of force
majeure:

(a)

death of the farmer;

(b)

long-term professional incapacity of the farmer;

(c)

expropriation of a large part of the holding if this could
not have been anticipated on the day on which the
commitment was given;

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(d)

(e)

(f)

a severe natural disaster seriously affecting the agricultural
land on the holding;

Member States shall notify the Commission of categories
which they recognise as force majeure.

the accidental destruction of livestock buildings on the
holding;

an epizootic disease affecting all or part of the farmer’s
livestock.

2.
Cases of force majeure shall be notified in writing to the
competent authority, together with relevant evidence to the
satisfaction of that authority, within 10 working days of the
date on which the farmer is in a position to do so.

CHAPTER II

GENERAL RULES AND ADMINISTRATIVE AND FINANCIAL PROVISIONS

SECTION 1

General rules

Article 34

(c)

in the case of support
for less-favoured areas and
areas with environmental restrictions, agri-environment
commitments shall take account of the conditions laid
down for support in the areas concerned.

3.
For the purposes of applying paragraphs 1 and 2, the
level of support shall take account of income forgone and
specific additional costs arising from the combination.

For the purposes of the second subparagraph of Article 37(3)
of Regulation (EC) No 1257/1999, Articles 35, 36 and 37 of
this Regulation shall apply.

Article 36

Article 35

Under no circumstances may the same commitment be the
subject of payments simultaneously under agri-environment
support and another Community aid scheme.

1.
Environmental measures implemented under common
market organisations, agricultural quality and health measures,
or rural development measures other than agri-environment
support, shall not preclude agri-environment support for the
same production, provided that such support is additional and
consistent with the measures concerned.

In the event of a combination as envisaged in paragraph

2.
1, the following provisions shall apply:

(a)

agri-environment measures on land set aside under
Article 6 of Council Regulation (EC) No 1251/1999 (19)
shall qualify for support only if the commitments go
beyond the appropriate environmental measures referred
to in Article 6(2) of that Regulation;

Article 37

Member States shall propose any exceptions under the first
indent of the second subparagraph of Article 37(3) of Regu-
lation (EC) No 1257/1999 in their rural development plans or
programming documents presented for Objectives 1 and 2 as
provided for in Article 18(1) and (2) and Article 19(1), (2)
and (3) of Regulation (EC) No 1260/1999.

Article 38

Payments under rural development measures shall be made in
full to the beneficiaries.

(b)

in the case of extensification of beef production, support
shall take account of the extensification payment under
Article 13 of Council Regulation (EC) No 1254/1999 (20);

Article 39

(19) OJ L 160, 26.6.1999, p. 1.
(20) OJ L 160, 26.6.1999, p. 21.

Regulation (EC) No 1685/2000 shall apply to measures
included in the programming referred to in Article 40(2)
and (3) of Regulation (EC) No 1257/1999, except where
otherwise provided in Regulations (EC) No 1257/1999 and
No 1258/1999 and this Regulation.

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SECTION 2

Programming

Article 40

The rural development plans under Title III, Chapter II, of
Regulation (EC) No 1257/1999 shall be submitted in accord-
ance with Annex II to this Regulation.

Article 41

Article 42

Member States shall make rural development programming
documents available to the public.

Article 43

Where rural development measures are submitted in the form
of general framework regulations, rural development plans
shall make appropriate reference to such regulations.

Articles 40, 41 and 42 shall also apply in the case referred to
in the first paragraph.

1.
The approval of the programming documents referred
to in Article 44(2) of Regulation (EC) No 1257/1999 shall
determine the overall amount of Community support.

Article 44

That amount shall include:

(a)

(b)

expenditure on measures presented under the new rural
development programming,
including expenditure on
evaluation under Article 49(2) of Regulation (EC)
No 1257/1999;

covered

incurred under

earlier
by Council Regulations

accompanying
expenditure
(EEC)
measures
(EEC) No 2079/92 (22) and (EEC)
No 2078/92 (21),
No 2080/92 (23) as well as expenditure incurred under the
measures covered by the earlier Regulations repealed by
the above Regulations;

(c)

expenditure incurred on measures under Article 4 of
Regulation (EC) No 2603/1999.

2.
Besides the provisions of paragraph 1, the approval shall
also cover the allocation and use of amounts remaining
available to the Member States as additional Community
support under Article 5 of Regulation (EC) No 1259/1999.

1.
Amendments to rural development programming docu-
ments and single programming documents under Objective 2
in the case of rural development measures financed by the
EAGGF Guarantee Section shall be duly substantiated,
in
particular giving the following information:

(a)

the reasons and any implementation problems justifying
adjustment of the programming document;

(b)

the expected effects of the amendment;

(c)

the implications for financing and verification of commit-
ments.

2.
Acting in accordance with the procedures referred to in
Articles 50(2) and 48(3), respectively, of Regulation (EC)
No 1260/1999, the Commission shall approve any amend-
ments to rural development programming documents and to
single programming documents under Objective 2 in the case
of rural development measures financed by the EAGGF
Guarantee Section whenever they have a bearing on:

However, those amounts shall not be included in the overall
amount of Community support referred to in paragraph 1.

(a)

priorities;

3.
The approval may cover State aid intended to provide
additional financing to rural development measures only if the
State aid is identified in accordance with point 16 of Annex II.

(21) OJ L 215, 30.7.1992, p. 85.
(22) OJ L 215, 30.7.1992, p. 91.
(23) OJ L 215, 30.7.1992, p. 96.

(b)

the main features of the support measures as indicated in
Annex II, including changes to the rate of Community
contribution;

(c)

the overall amount of Community support;

(d)

the financial allocation made for any measure, by chang-
ing it by more than 10 % of the amount provided for the
entire programming period, calculated on the basis of the
programming document approved by the Commission;

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(e)

additional financing in the form of State aid granted for
any measure, by changing it by more than 10 % of
the amount provided for that measure for the entire
programming period, calculated on the basis of the
programming document approved by the Commission.

Points (d) and (e) shall not apply to measures with a financial
allocation accounting for less than 5 % of the total amount
allocated to the programme for the entire programming
period.

Amendments shall be submitted to the Commission in a

3.
single proposal per programme no more than once a year.

4.
Amendments of a financial nature which are not covered
by points (d) and (e) of paragraph 2 shall be communicated in
due time to the Commission for information.

5.
Amendments other than those covered in paragraphs 2
and 4 shall be communicated to the Commission at least two
months before their entry into force.

Article 45

Where Community legislation is subsequently amended, rural
development programming documents and single program-
ming documents under Objective 2 shall be revised in line
with subsequent changes in Community legislation.

Article 44(3) shall not apply to such revisions.

If the amendment of rural development programming docu-
ments or single programming documents under Objective 2 is
limited to bringing the document into line with new Com-
munity legislation, such amendments shall be sent to the
Commission for information.

extended to measures eligible under European Parliament
and Council Regulations (EC) No 1783/1999 (24) and (EC)
No 1784/1999 (25).

SECTION 4

Financial provisions

Article 47

No later than 30 September each year, the Member
1.
States shall forward the following information to the Com-
mission, for each rural development programming document
and each single programming document under Objective 2 in
the case of rural development measures financed by the
EAGGF Guarantee Section:

(a)

(b)

a statement of expenditure incurred in the current
financial year and expenditure remaining to be disbursed
by the end of that year and covered by Community
support as defined in Article 41(1); and

revised forecasts of such expenditure for subsequent
financial years until the end of the programming period
concerned, keeping within the allocation for each Mem-
ber State.

This information shall be transmitted in table format using a
computerised model supplied by the Commission.

2. Without prejudice to the general rules on budgetary
discipline, where the information which Member States are
required to transmit to the Commission under paragraph 1 is
incomplete or the time limit has not been met, the Commission
shall reduce advances on entry in the accounts of agricultural
expenditure on a temporary and flat-rate basis.

Article 48

SECTION 3

Additional measures and Community initiatives

Article 46

1.
For the month during which the decision is adopted
approving a rural development programming document or a
single programming document under Objective 2 in the case
of rural development measures financed by the EAGGF
Guarantee Section, the paying agencies may enter in the
accounts as expenditure an advance not exceeding 12,5 % of
the average annual EAGGF contribution provided for in the
programming document, covering the expenditure referred to
in Article 41(1).

The scope of assistance from the EAGGF Guidance Section for
measures in the Community initiative for rural development
shall be extended to the whole Community and its financing

(24) OJ L 213, 13.8.1999, p. 1.
(25) OJ L 213, 13.8.1999, p. 5.

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This advance shall represent working capital which, in prin-
ciple, may be recovered only at the end of the programming
period for each programming document, or once the aggregate
sum of the expenditure paid out by the EAGGF and the
amount of the advance is equal to the total EAGGF contri-
bution provided for in the programming document.

for the following financial year shall be reduced by a third of
the difference between this threshold, or the amounts resulting
from the application of paragraph 2 if they are below it, and
the actual expenditure incurred during the financial year
concerned.

2.
The advance under paragraph 1 shall be entered in the
accounts, for those countries whose currency is not the euro
on the date of such entry, using the rate of exchange prevailing
on the penultimate Commission working day of the month
preceding that in which the paying agencies enter the advance
in the accounts.

Article 49

For each Member State, expenditure declared for any
1.
given financial year shall be financed up to the limit of the
amounts notified to the Commission under point (b) of the
first subparagraph of Article 47(1) which are covered by the
appropriations entered in the budget for the financial year
concerned.

2. Where the total amount of the forecasts notified under
point (b) of the first subparagraph of Article 47(1) exceeds the
total appropriations entered in the budget for the financial
year concerned, the maximum amount of expenditure to be
financed for each Member State shall be limited using the
formula used to establish the corresponding annual allocation
as defined in Decision 1999/659/EC.

If, after this reduction, appropriations remain available because
some Member States have made forecasts which are below
their annual allocation, the surplus amount shall be distributed
in proportion to the Member States’ respective annual allo-
cations while ensuring that the amount forecast for each
Member State as referred to in the first subparagraph is not
exceeded. The Commission shall notify the forecasts thus
adjusted to the Member States in the month following the
adoption of the budget for the financial year concerned.

3. Where expenditure actually incurred by a Member State
in any given financial year exceeds the amounts notified under
point (b) of the first subparagraph of Article 47(1) or the
amounts resulting from the application of paragraph 2 of this
Article, the overruns on expenditure in the current financial
year shall be taken into account on a pro rata basis, up to
the limit of
the appropriations remaining available after
reimbursing to the other Member States the expenditure
incurred.

4. Where expenditure actually incurred by a Member State
in a given financial year is less than 75 % of the amounts
referred to in paragraph 1, the expenditure to be recognised

This reduction shall not be taken into account when estab-
lishing actual expenditure in the financial year following that
in which the reduction was made.

5.
Paragraph 4 shall not apply to the first statement of
expenditure incurred during the 2000 financial year under the
rural development programming document or the single
programming document under Objective 2 in the case of rural
development measures financed by the EAGGF Guarantee
Section.

Article 50

Articles 47, 48 and 49 of this Regulation shall not apply to
expenditure incurred under Article 5 of Regulation (EC)
No 1259/1999.

Article 51

The Community shall contribute to financing evaluations in
the Member States under Article 49(2) of Regulation (EC)
No 1257/1999 where such evaluations actually contribute to
evaluation at Community level by virtue of
their scope,
particularly through their replies to common evaluation
questions and their quality.

The Community contribution shall not exceed 50 % of a
ceiling which, except in duly justified cases, shall be 1 % of the
total costs of the rural development programme. For each
rural development programme, at least 40 % of the part-
financing shall concern ex post evaluation.

Article 52

Beneficiaries of

investment support measures under
1.
Title II, Chapters I, VII, VIII and IX, of Regulation (EC)
No 1257/1999 may request the payment of an advance from
the competent paying agencies if this option is included in the
programming document. As regards public beneficiaries, this
advance may only be granted to municipalities and associations
thereof and to public law bodies.

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2.
The amount of the advance shall not exceed 20 % of the
total cost of the investment, and its payment shall be subject
to the establishment of a bank guarantee corresponding to
110 % of the amount of the advance.

However, in the case of the public beneficiaries referred to in
paragraph 1, the paying agency may accept a written guarantee
from their authority, in accordance with provisions applied in
the Member States, covering an amount equal to the percentage
specified in the first subparagraph, provided that the authority
undertakes to pay the amount covered by its guarantee should
entitlement to the advance paid not be established.

3.
The guarantee shall be released once the competent
agency notes that the amount of real expenditure resulting
from the investment exceeds the amount of the advance.

Paying agencies shall declare to the EAGGF Guarantee
4.
Section the amount corresponding to the Community part-
financing:

(i) monitoring measures, financial control and evalu-

ation, including data collection procedures;

(ii)

a summary of the major problems encountered in
managing the measure and any steps taken;

(d) measures taken to ensure compatibility with Community

policies.

2.
The indicators referred to in point (b) of the second
subparagraph of paragraph 1 shall follow, as far as possible,
the common indicators defined in the guidelines drawn up by
the Commission. Where additional indicators are needed to
effectively monitor progress towards the objectives in the
rural development programming documents, these shall be
included.

(a)

of the advance paid;

Article 54

(b) of the actual expenditure subsequently paid to benefi-
ciaries, minus the amount of the advance already paid.

Evaluations shall be performed by independent evalua-

1.
tors in accordance with recognised practice.

SECTION 5

Monitoring and evaluation

Article 53

Evaluations shall provide answers,

to
2.
common evaluation questions defined by the Commission in
consultation with the Member States and shall, as a general
rule, be accompanied by performance-related criteria and
indicators.

in particular,

1.
The annual progress reports provided for in Article 48(2)
of Regulation (EC) No 1257/1999 shall be submitted to the
Commission by 30 April of each year and shall relate to the
previous calendar year.

Progress reports shall contain the following information:

The authority responsible for managing the rural devel-
3.
opment programming document shall assemble the appropri-
ate resources for evaluations, making use of monitoring results
and gathering additional information where necessary.

(a)

(b)

(c)

any change in the general conditions which is of relevance
to the implementation of the measure, and in particular
any major socio-economic trends or changes in national,
regional or sectoral policies;

Article 55

the progress of measures and priorities in relation to
their operational and specific objectives, expressed using
quantitative indicators;

action taken by the management authority and the
Monitoring Committee, if provision has been made for
such a committee, to ensure high quality and effective
implementation, and in particular:

1.
Ex ante evaluation shall analyse the disparities, gaps and
potentials of the current situation, assess the consistency of
the proposed strategy with the situation and targets and
consider the issues raised in the common evaluation questions.
It shall assess the expected impact of the selected priorities for
action and quantify their targets where possible.
It shall
also verify the proposed implementing arrangements and
consistency with the common agricultural policy and other
policies.

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2.
Ex ante evaluation shall be the responsibility of the
authorities preparing the rural development plan and shall
form part of it.

Monitoring Committee,
if any, and the Commission. The
results of the evaluations shall be made available to the public.

Article 56

Article 57

1. Mid-term and ex post evaluation shall deal with the
specific issues arising in the rural development programming
document concerned and with common evaluation questions
relevant at Community level. These shall relate to the living
conditions and structure of the rural population, employment
and income from farm and off-farm activities, agricultural
structures, agricultural commodities, quality, competitiveness,
forest resources and the environment.

If a common evaluation question is not considered relevant to
a particular rural development programming document, this
shall be substantiated.

2. Mid-term evaluation shall deal with the evaluation
questions and shall examine in particular the initial achieve-
ments, their relevance to and consistency with the rural
development programming document and the extent to which
the targets have been attained. It shall also assess the use made
of financial resources and the operation of monitoring and
implementation.

Ex post evaluation shall answer the evaluation questions,
paying particular attention to the use made of resources and
the effectiveness and efficiency of assistance and its impact and
shall draw conclusions concerning rural development policy,
including its contribution to the common agricultural policy.

3. Mid-term and ex post evaluation shall be performed in
consultation with the Commission under the responsibility of
the authority in charge of managing rural development
programming.

1.
A mid-term evaluation report shall be transmitted to the
Commission not later than 31 December 2003. The authority
responsible for managing the rural development programming
document shall inform the Commission on the follow-up to
the recommendations in the evaluation report. The Com-
mission shall prepare a Community-level summary upon
receipt of the individual evaluation reports. Where necessary,
an update of the mid-term evaluation shall be completed by
31 December 2005.

2.
An ex post evaluation report shall be transmitted to the
Commission not later than two years after the end of the
programming period. Within three years of the end of the
the individual
programming period and upon receipt of
evaluation reports the Commission shall prepare a Com-
munity-level summary.

3.
The evaluation reports shall explain the methods used,
including their implications for the quality of the data and the
findings. Reports shall include a description of the context and
information and the
contents of the programme, financial
answers — including the indicators used — to the common
evaluation questions and the evaluation questions defined
level, as well as conclusions and
at national or regional
recommendations. Their structure shall
follow, as far as
possible, a common structure for evaluation reports defined in
guidelines drawn up by the Commission.

SECTION 6

Applications, checks and penalties

Article 58

The quality of individual evaluations shall be assessed
4.
using recognised methods by the authority in charge of
managing the rural development programming document, the

1.
Applications for rural development support for areas or
animals which are lodged separately from aid applications
under Article 6 of Regulation (EC) No 2419/2001 shall
indicate all the areas and animals on the holding which are
relevant for checking the applications under the measure in
question, including those for which no support is requested.

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2. Where a rural development support measure relates to
areas, parcels shall be identified individually. During the period
covered by a commitment, parcels receiving support may not
be exchanged except in cases specifically provided for in the
programming document.

3. Where an application for payment is included with an
application for an area payment in the context of the integrated
administration and control system, the Member State shall
ensure that parcels covered by applications for rural develop-
ment support are declared separately.

5 % of beneficiaries each year and all the different types of
rural development measures set out in the programming
documents.

On-the-spot checks shall be spread over the year on the basis
of an analysis of the risks presented by each rural development
measure.

Checks shall cover all the commitments and obligations of a
beneficiary which can be checked at the time of the visit.

Plots of land and animals shall be identified in accordance

4.
with Articles 4 and 5 of Regulation (EEC) No 3508/92.

Article 62

5. Where support is multiannual, payments subsequent to
that made in the year an application was submitted shall be
made in response to an annual application for payment, except
where the Member State has introduced an effective annual
verification procedure as referred to in Article 59(1).

Articles 30, 31 and 32 of Regulation (EC) No 2419/2001

1.
shall apply to area payments.

Articles 36, 38 and 40 of that Regulation shall apply to
headage payments.

Article 59

Article 44 of Regulation (EC) No 2419/2001 shall apply

2.
to the support referred to in paragraph 1 of this Article.

1.
Initial applications to join a scheme and subsequent
applications for payment shall be checked in a manner which
ensures effective verification of compliance with the conditions
for granting support.

In the event of undue payment, the individual beneficiary
3.
under a rural development measure shall be under an obli-
gation to repay the amount in accordance with Article 49 of
Regulation (EC) No 2419/2001.

The Member States shall define suitable methods and means
for verifying each support measure as well as the persons who
shall be subject to checks.

Article 63

Wherever appropriate, Member States shall make use of the
integrated administration and control system introduced by
Regulation (EEC) No 3508/92.

Verification shall consist of administrative and on-the-

2.
spot checks.

Article 60

Administrative checks shall be exhaustive and shall include
cross-checks wherever appropriate, inter alia with data from
the integrated administration and control system. They shall
relate to parcels and livestock covered by a support measure
in order to avoid all unjustified payments of aid. Compliance
with long-term commitments shall also be checked.

1.
Any beneficiary found to have made a false declaration
as a result of serious negligence shall be excluded from all
rural development measures under the relevant chapter of
Regulation (EC) No 1257/1999 for the calendar year in
question.

Where a false declaration was made intentionally, the benefici-
ary shall be excluded for the following year as well.

2.
The penalties provided for in paragraph 1 shall apply
without prejudice to additional penalties provided for under
national rules.

Article 64

Article 61

On-the-spot checks shall be made in accordance with Title III
of Regulation (EC) No 2419/2001. They shall cover at least

Member States shall lay down the rules on penalties applicable
to infringements of the provisions of this Regulation and
shall take all measures necessary to ensure that they are
implemented. The penalties provided for must be effective,
proportionate and dissuasive.

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CHAPTER III

FINAL PROVISIONS

Article 65

1.

Regulation (EC) No 1750/1999 is repealed.

References to the repealed Regulation shall be construed as
references to this Regulation and shall be read in accordance
with the correlation table in Annex III.

2.
The Regulations and Decisions repealed by Regulation
(EC) No 1750/1999 shall continue to apply to actions

approved by the Commission before 1 January 2000 under
the Regulations referred to in Article 55(1) of Regulation (EC)
No 1257/1999.

Article 66

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

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

Done at Brussels, 26 February 2002.

For the Commission

Franz FISCHLER

Member of the Commission

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ANNEX I

(Article 14)

Eligible farm animal species

Thresholds under which a local breed is considered
as being in danger of being lost to farming

(number of breeding females) (1)

Cattle

Sheep

Goats

Equidae

Pigs

Avian

7 500

10 000

10 000

5 000

15 000

25 000

(1) Number, calculated for all EU Member States, of breeding females of the same breed available for purebred reproduction,

included in a register recognised by the Member State (e.g. herd book or flock book).

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ANNEX II

RURAL DEVELOPMENT PLANS

1. Title of rural development plan

2. Member State and administrative region (if relevant)

3.1. Geographical area covered by the plan

(Article 41 of Regulation (EC) No 1257/1999)

3.2. Regions classified as Objectives 1 and 2

(Article 40 of Regulation (EC) No 1257/1999)

Identify:

— Objective 1 regions and Objective 1 regions in transition. This applies only to the accompanying measures
(early retirement, compensatory allowances, agri-environment and afforestation of agricultural land under
Article 31 of Regulation (EC) No 1257/1999),

— Objective 2 regions. This applies to:

(1)

accompanying measures,

(2)

other measures which do not form part of the Objective 2 programming.

4.

Planning at the relevant geographical level

(Article 41(2) of Regulation (EC) No 1257/1999)

Where exceptionally more than one rural development plan will apply in the region, indicate:

— all the relevant plans,

— why it is not possible to integrate measures into a single plan,

— the relationship between measures in the different plans and details as to how compatibility and

consistency between plans will be ensured.

5. Quantified description of the current situation

(First indent of Article 43(1) of Regulation (EC) No 1257/1999)

(1) Description of the current situation

Describe the current situation of the geographical area using quantified data, highlighting strengths,
disparities, gaps and potential for rural development. This description should concern both agriculture

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and forestry (including the type and extent of handicaps affecting farming in less-favoured areas), the
rural economy,
the
environment.

the demographic situation, human resources, employment and the state of

(2)

Impact from the previous programming period

Describe the impact of EAGGF financial resources allocated to rural development during the previous
programming period and under accompanying measures since 1992. Present the results of evaluations.

(3) Other information

Where relevant, also describe any supplementary measures in addition to Community rural development
and accompanying measures which have had an impact on the programming area concerned.

6. Description of the strategy proposed, its quantified objectives, the rural development priorities

selected and the geographical area covered

(Second indent of Article 43(1) of Regulation (EC) No 1257/1999)

(1)

Proposed strategy, quantified objectives and priorities selected

In the light of the strengths, disparities, gaps and development potential identified in the area concerned,
describe in particular:

— the priorities for action,

— the appropriate strategy to attain the objectives,

— the operational objectives and expected impact, quantified where possible, also in terms of both

monitoring and estimates that can be used for evaluation purposes,

— the extent to which the strategy takes account of the specific features of the areas concerned,

— how the integrated approach has been applied,

— the extent to which the strategy provides for the involvement of women and men,

— the extent to which the strategy takes account of all relevant international Community and national
obligations in the field of the environment, including those relating to sustainable development, in
particular the quality and use of water, conservation of biodiversity including on-farm conservation
of crop varieties, and global warming.

(2) Description and effects of other measures

Where relevant, the description must also include any measures taken outside the rural development plan
(other Community measures or national measures, such as compulsory rules, codes of practice and State-
aided measures) and the extent to which these measures meet the needs identified.

(3) Areas covered by specific territorial measures

Describe the geographical coverage of any measures as defined at point 8 which do not apply throughout
the region indicated at point 3.

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In particular, include:

— the list of less-favoured areas adopted for the area concerned,

— any amendments to the list of less-favoured areas, giving the reasons (Article 55(4) of Regulation

(EC) No 1257/1999),

— areas with environmental restrictions, giving reasons.

(4)

Timetable and uptake

Proposed timetable for implementing the various measures, expected uptake and duration (see also
point 8).

7.

Appraisal showing the expected economic, environmental and social impact

(Third indent of Article 43(1) of Regulation (EC) No 1257/1999)

Detailed description in accordance with Article 43 of Regulation (EC) No 1257/1999.

8.

Indicative overall financial table (EAGGF financial year)

(Fourth indent of Article 43(1) of Regulation (EC) No 1257/1999)

Financial programming table: rural development programmes

(EUR million)

Year 1

... Year 7

Total

Public
expendi-
ture (1)

EU
contri-
bution (2)

Private
sector
contri-
bution (3)

Public
expendi-
ture (1)

EU
contri-
bution (2)

Private
sector
contri-
bution (3)

Public
expendi-
ture (1)

EU
contri-
bution (2)

Private
sector
contri-
bution (3)

Priority A

Measure A1 (e.g. agri-
environment)

including
measures
approved under Regu-
lation (EC) No 2078/
1992

Measure A2 ...

... Measure An

Total A

Priority B ...

Measure B1 (e.g. early
retirement)

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Year 1

... Year 7

Total

Public
expendi-
ture (1)

EU
contri-
bution (2)

Private
sector
contri-
bution (3)

Public
expendi-
ture (1)

EU
contri-
bution (2)

Private
sector
contri-
bution (3)

Public
expendi-
ture (1)

EU
contri-
bution (2)

Private
sector
contri-
bution (3)

(EUR million)

including
measures
approved under Regu-
lation (EC) No 2079/
1992

Measure B2 ...

... Measure Bn

Total B

... Priority N

Measure N1 (e.g. affor-
estation)

including
measures
approved under Regu-
lation (EC) No 2080/
1992

Measure N2 ...

... Measure Nn

Total N

Other measures

Evaluation

Former measures from
before 1992

Transitional
measures (4)

Total other
measures

Total plan N

(1) Column for planned (public) expenditure, provided for guidance.
(2) Column for the Community contribution planned for each measure. The Community contribution relating to expenditure
to be paid is calculated using the rates and arrangements laid down in the programme for each measure. The Community
contribution can be calculated in relation to eligible public expenditure (column 2/column 1) or total eligible cost
(column 2/(column 1 + column 3)).

(3) Column for planned (private-sector) expenditure, provided for guidance when such a contribution is foreseen for the

measure.

(4) Article 4(2) of Regulation (EC) No 2603/1999. The Member States must define the criteria, identifying clearly the

expenditure to be included in programming.

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Application of appropriations resulting from modulation

Year 1

Year 2

... Year 7

Total

Public
expendi-
ture

EU
contri-
bution

Public
expendi-
ture

EU
contri-
bution

Public
expendi-
ture

EU
contri-
bution

Public
expendi-
ture

EU
contri-
bution

Early retirement

Agri-environment

Afforestation

Less-favoured areas

Total modulation

NB: Where a measure is entered simultaneously under more than one priority, the Member State shall provide, for the
purposes of financial management, an additional table consolidating all expenditure relating to the measure. This
additional table should follow the structure of the table above and the order of the list below.

— The different measures are defined as follows:

(a)

investment in farms;

(b)

start-up assistance for young farmers;

(c)

training;

(d)

early retirement;

(e)

less-favoured areas and areas with environmental restrictions;

(f)

agri-environment;

(g)

improving the processing and marketing of agricultural products;

(h)

afforestation of agricultural land;

(i)

(j)

other forestry measures;

land improvement;

(k)

reparcelling;

(l)

setting up farm relief and farm management services;

(m) marketing of quality agricultural products;

(n)

basic services for the rural economy and population;

(o)

renovation and development of villages and protection and conservation of the rural heritage;

(p)

diversifying agricultural activities and activities close to agriculture to provide multiple activities or
alternative sources of income;

(q) managing agricultural water resources;

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(r)

(s)

(t)

(u)

developing and improving infrastructure connected with the development of agriculture;

encouraging tourist and craft activities;

protecting the environment in connection with agriculture, forestry and landscape management and
improving animal welfare;

restoring agricultural production potential damaged by natural disasters and introducing appropriate
prevention instruments;

(v)

financial engineering.

— EAGGF Guarantee Section resources for measures to promote the adaptation and development of rural
areas (Article 33 of Regulation (EC) No 1257/1999) in Objective 2 (rural) areas: EUR ... million (% of
total for Article 33).

9. Description of the measures designed to implement the plans

(Fifth indent of Article 43(1) of Regulation (EC) No 1257/1999)

For each point below, provide:

A.

B.

the main features of support measures;

other information.

(1) General requirements

A. Main features of support measures:

— list of measures in the order presented in Regulation (EC) No 1257/1999,

— identify the specific article (and paragraph) which covers each rural development payment
measure. Where two or more articles are cited, the payment measure must be divided into its
constituent parts.

B.

Other information:

None.

(2)

Requirements concerning all or several measures (1)

A. Main features:

— Community contribution based on either the total cost or public expenditure,

— aid intensity and/or amount and differentiation applied (Chapters I to VIII),

— exceptions referred to in the first indent of the second subparagraph of Article 37(3) of

Regulation (EC) No 1257/1999.

B.

Other information:

— details of eligibility conditions,

— criteria to demonstrate economic viability (Chapters I, II, IV and VII),

— usual good farming practice (Chapters V and VI),

— minimum standards regarding environment, hygiene and animal welfare (Chapters I, II and

VII),

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— level of occupational skill and competence required (Chapters I, II and IV),

— sufficient assessment of the existence of normal market outlets for the products concerned

(Chapters I and VII) in accordance with Articles 6 and 26 of Regulation (EC) No 1257/1999,

— description of all ongoing contracts (from the previous period), including in financial terms,

and the procedures/rules which apply to these.

(3)

Information required for specific measures

In addition, the following specific information is required for measures under the individual chapters:

I.

Investment in agricultural holdings

A. Main features:

— primary production sectors and types of investments.

B.

Other information:

— maximum limits on total amount of investment eligible for support,

— types of support,

— where applicable, a description of the rural areas facing structural difficulties as referred

to in Article 1(3) of this Regulation.

II.

Start-up assistance for young farmers

A. Main features:

None.

B.

Other information:

— length of time allowed for young farmers to fulfil the eligibility criteria within the three-

year period authorised under Article 4(2) of this Regulation,

— age limit,

— conditions applying to young farmers not established as sole head of the holding or who
start up as members of associations or cooperatives whose main purpose is to manage
an agricultural holding,

— type of start-up support.

III.

Training

A. Main features:

None.

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B.

Other information:

— eligible measures and beneficiaries,

— assurance that no normal education system or programmes are proposed for financing.

IV.

Early retirement

A. Main features:

None.

B.

Other information:

— detailed description of conditions concerning transferor, transferee, worker and land
released, in particular the use of land to be retained by the transferor for non-commercial
purposes and the length of time allowed to improve viability,

— type of aid, including a description of the method used for calculating the maximum

amount to be part-financed per holding and a justification for each type of beneficiary,

— description of national retirement and early-retirement schemes,

— details on the duration of the aid.

V.

Less-favoured areas and areas with environmental restrictions

A. Main features:

— amount of aid:

1.

2.

3.

for payments under Article 13(a) of Regulation (EC) No 1257/1999: justification
of differentiation of the aid using the criteria set out in Article 15(2) of that
Regulation,

for compensatory allowances under Article 13(a) of Regulation (EC) No 1257/1999:
proposals to exceed the maximum amount which can be part-financed in
accordance with the second subparagraph of Article 15(3) of Regulation (EC)
No 1257/1999 must include the necessary justification. Specify how it will be
assured that the upper limit for compensatory allowances is complied with in these
cases and explain the administrative procedure by which compliance with the
maximum amount that can be part-financed will be ensured,

for compensatory allowances under Articles 13(b) and 16 of Regulation (EC)
No 1257/1999: detailed agronomic calculations showing: (a) income foregone and
costs incurred as a result of
(b) agronomic
assumptions used as reference point.

the environmental restrictions,

B.

Other information:

— details of eligibility conditions, in particular:

1.

2.

definition of the minimum area;

description of the appropriate conversion mechanism used in the case of common
pastures,

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— amendments to the lists of less-favoured areas adopted or amended by Council and

Commission Directives, and the list of areas with environmental restrictions.

VI. Agri-environment

A. Main features:

— justification for the commitments, based on their expected impact,

— the list of local breeds in danger of being lost to farming and the number of breeding
females for the areas concerned. This number must be certified by a duly recognised
technical body — or breeder’s organisation/association — which must register and keep
up-to-date the herd or flock book for the breed. The body concerned must possess the
necessary skills and knowledge to identify animals of the breeds in question,

— for plant genetic resources under threat of genetic erosion, evidence of genetic erosion
based upon scientific results and indicators for the occurrence of landraces/primitive
(local) varieties, their population diversity and the prevailing agricultural practices at
local level,

— details of obligations on farmers and any other terms of the commitment, including

scope and procedures for adjusting of running contracts,

— detailed agronomic calculations showing: (a) income foregone and cost incurred in
relation to usual good farming practice; (b) the agronomic assumptions used as reference
point; (c) the level of incentive and a justification for this based on objective criteria.

B.

Other information:

— description of the coverage of the measure, showing its scope in relation to needs and

its degree of targeting in terms of geographical, sectoral or other coverage,

— for all the agri-environment commitments together, the possible ways of combining
commitments should be shown and the mutual consistency of commitments should be
ensured.

VII.

Improving the processing and marketing of agricultural products

A. Main features:

— sectors of basic agricultural production.

B.

Other information:

— criteria to prove economic benefits for primary producers.

VIII. Forestry

A. Main features:

definition of:

— ‘agricultural land’ in relation to Article 26 of this Regulation,

— ‘farmer’ in relation to Article 27 of this Regulation,

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— provisions ensuring that the planned measures are suited to local conditions and
compatible with the environment as well as keeping balance between forestry and game
populations where applicable,

— contractual arrangements between regions and potential beneficiaries concerning

measures referred to in Article 32 of Regulation (EC) No 1257/1999.

B.

Other information:

— description of eligible measures and beneficiaries,

— linkage between proposed measures and national/sub-national forest programmes or

equivalent instruments,

— the existence of forest protection plans as laid down in Community legislation for areas
classified as high or medium risk for forest fires and the conformity of proposed
measures with these protection plans.

IX.

Promoting the adaptation and development of rural areas

A. Main features:

— description and justification of the action proposed under each measure.

B.

Other information:

— definition of financial engineering, which must comply with the general eligibility

criteria.

10. Need for any studies, demonstration projects, training or technical assistance operations (where

applicable)

(Sixth indent of Article 43(1) of Regulation (EC) No 1257/1999)

11. Designation of competent authorities and bodies responsible

(Seventh indent of Article 43(1) of Regulation (EC) No 1257/1999)

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

(Eighth indent of Article 43(1) of Regulation (EC) No 1257/1999)

(1) Detailed information on the implementation of Articles 52 to 57 of this Regulation

This should include in particular:

— the possibility to grant advances to certain beneficiaries of investment measures,

— the description of the financial circuits for the payment of assistance to final beneficiaries,

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— the arrangements for monitoring and evaluating the programme, notably systems and procedures
for collecting, organising and coordinating data relating to financial, physical and impact indicators,

— the role, composition and rules of procedure of any monitoring committees,

— codification. This codification shall be in accordance with the model provided by the Commission.

(2) Detailed information on the implementation of Articles 58 to 64 of this Regulation

This should include the specific control measures planned to verify the substance of claims and
compliance with the conditions for support as well as the specific rules on penalties.

(3) Detailed information on compliance with the general eligibility criteria laid down in Regulation (EC) No 1685/2000

Article 39 of this Regulation.

13. Results of consultations and designation of associated authorities and bodies as well as economic and

social partners

(Ninth indent of Article 43(1) of Regulation (EC) No 1257/1999)

(1) Describe:

— the economic and social partners and other relevant national bodies to be consulted in accordance

with national rules and practice;

— the agricultural and environmental authorities and bodies to be involved, in particular, in preparing,
implementing, monitoring, evaluating and reviewing agri-environment measures and other measures
targeting the environment, thus ensuring a balance between these measures and other rural
development measures.

(2)

Summarise the results of consultations and indicate the extent to which the views and advice received
have been taken into account.

14. Balance between the different support measures

(Second indent of Article 43(2) of Regulation (EC) No 1257/1999)

(1) Describe, with reference to strengths, needs and potential:

— the balance between the different rural development measures,

— the extent to which the agri-environment measures apply throughout the territory.

(2)

This description shall refer, as the case may be, to:

— measures taken outside the scope of Regulation (EC) No 1257/1999,

— measures taken or planned under separate rural development plans.

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15. Compatibility and consistency

(Article 37(2) of Regulation (EC) No 1257/1999)

A. Main features:

(1) Appraisal of compatibility and consistency with:

— other Community policies and measures implemented under those policies, in particular

competition policy,

— other common agricultural policy instruments,

in particular where exceptions under

Article 37(3) of Regulation (EC) No 1257/1999 are provided for,

— other support measures included in the rural development plans,

— the general eligibility criteria.

(2)

For measures under Article 33 of Regulation (EC) No 1257/1999, ensure and, where necessary,
demonstrate that:

— measures adopted under the sixth, seventh and ninth indents of that Article are not receiving
financial assistance from the ERDF for rural areas covered by Objective 2 and in areas in
transition,

— measures are not covered by any other measure referred to in Title II of Regulation (EC)

No 1257/1999.

B.

Other information:

In particular, appraisal shall cover arrangements to ensure proper coordination with the various authorities
responsible for:

— development measures provided for under the market organisations,

— any rural development measures provided for under national legislation.

16. Additional State aids

(Article 52 of Regulation (EC) No 1257/1999)

A. Main features:

Identify the measures to which additional financing will be granted in the form of State aid (Article 52 of
Council Regulation (EC) No 1257/1999). The amount of additional support to be granted for each of the
measures concerned during each year covered by the plan should be shown in an indicative table.

B.

Other information:

None.

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ANNEX III

CORRELATION TABLE

This Regulation

Regulation (EC) No 1750/1999

Article 1

Article 2

Article 3

Article 4

Article 5, first, second, and third indents

Article 5, fourth and fifth indents

Article 6

Article 7

Article 8

Article 9

Article 10

Article 11

Article 11a

Article 12

Article 13

Article 14

Article 15

Article 16

—

Article 1

Article 2

Article 3

Article 5

Article 4

Article 6

Article 7

Article 8

Article 9

Article 10

Article 11

Article 12

Article 13

Article 14

Article 15

Article 16

Article 17

Article 18(1) and (2)

Article 17(1) and (2), first indent

Article 18(3)

Article 18(4)

Article 19

Article 20

Article 17(2), second indent

Article 17(3)

Article 18

Article 19

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This Regulation

Regulation (EC) No 1750/1999

Article 21

Article 22

Article 23

Article 24

Article 25

Article 26

Article 27

Article 28

Article 29

Article 30

Article 31

Article 32

Article 33

Article 34

Article 35(1)

Article 35(2)

Article 35(3)

Article 36

Article 37

Article 38

Article 39

Article 40

Article 41(1)

Article 41(2)

Article 41(3)

Article 42

Article 20

Article 21

Article 22

Article 23

Article 24

Article 25

Article 26

Article 27

Article 28

Article 29(1)

Article 29(2)

Article 29(3)

Article 30

Article 31(1)

Article 31(2), first indent

Article 31(2), second indent

Article 31(2), third indent

Article 31(2), fourth indent

Article 31(3)

Article 32

Article 32a

Article 33(1)

Article 33(2)

Article 33(2)a)

Article 33(3)

Article 33(4)

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This Regulation

Regulation (EC) No 1750/1999

Article 43

Article 44(1)

Article 44(2)

Article 44(3)

Article 44(5)

Article 34

Article 35(1)

Article 35(2) first and second indents

Article 35(2) third indent

Article 35(2) fourth indent

Article 45, first and second indents

Article 35(3)

Article 46

Article 47

Article 48

Article 49(1)

Article 49(2)

Article 49(3)

Article 49(4)

Article 49(5)

Article 50

Article 51

Article 53

Article 54

Article 55

Article 56

Article 57

Article 58

Article 59

Article 60

Article 61

Article 62

Article 36

Article 37

Article 38

Article 39(1)

Article 39(1)a

Article 39(2)

Article 39(3)

Article 39(4)

Article 39a

Article 40

Article 41

Article 42

Article 43

Article 44

Article 45

Article 46

Article 47(1) and (2)

Article 47(3)

Article 47(4)

Article 48(1)

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This Regulation

Regulation (EC) No 1750/1999

Article 64

Article 63

—

Article 65

Annex I

Annex II

Annex III

Article 48(2)

Article 48(3)

Article 49(1)

Article 49(2)

—

Annex

—