Council Regulation (EC) No 1783/2003 of 29 September 2003 amending Regulation (EC) No 1257/1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF)
Date: 2003-09-29
Institutions: Council of the European Union
Subjects: EAGGF, aid to agriculture, economic instrument for the environment, quality control of agricultural products, rural development, terms for aid

L 270/70

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Official Journal of the European Union

21.10.2003

COUNCIL REGULATION (EC) No 1783/2003

of 29 September 2003

amending Regulation (EC) No 1257/1999 on support for rural development from the European
Agricultural Guidance and Guarantee Fund (EAGGF)

THE COUNCIL OF THE EUROPEAN UNION,

(4)

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

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament (1),

Having regard to the opinion of the European Economic and
Social Committee (2),

Having regard to the opinion of
Regions (3),

the Committee of

the

(5)

Whereas:

(1)

(2)

(3)

to achieve the objectives of

In order
the common
agricultural policy, as laid down in Article 33 of the
the
Treaty,
rural
it
development policy
range of
accompanying measures as provided for in Regulation
(EC) No 1257/1999 (4).

to reinforce
the

appropriate

increasing

by

is

factor

in the
representing a key
Young farmers
development of rural areas, support to this category of
farmers should be considered as a priority. In order to
facilitate the establishment of young farmers and the
structural adjustment of their holdings, it is necessary to
reinforce the specific support already granted.

based

standards

demanding

A more rapid implementation in the agricultural sector
of
on Community
legislation concerning the environment, public, animal
and plant health, animal welfare and occupational safety
should be promoted. Those standards may impose new
obligations on farmers giving rise to a loss of income or
additional costs. Temporary and degressive support
should be provided to farmers to help cover partly the
costs
such
standards.

implementation of

from the

arising

(6)

(7)

(8)

for

Following the introduction of the ‘meeting standards'
measure, support currently permitted under Regulation
(EC) No 1257/1999 to farmers
limitations on
agricultural use in areas with environmental restrictions
should henceforth cover limitations arising from the
implementation of Council Directive 79/409/EEC of 2
April 1979 on the conservation of wild birds (5) and
Council Directive 92/43/EEC of 21 May 1992 on the
conservation of natural habitats and of wild fauna and
flora (6). Accordingly, a higher level of support may be
proposed under certain circumstances and the area
limitation of 10 % will be restricted to the measure
concerning areas with specific handicaps.

Farm advisory systems as provided for
in Council
Regulation (EC) No 1782/2003 of 29 September 2003
establishing common rules for direct support schemes
under the common agricultural policy and establishing
certain support schemes for farmers (7), are to identify
and propose improvements in current performance with
regard to statutory environmental, public, animal and
plant health and animal welfare standards. Support
should be provided to farmers towards the costs of such
advisory services.

animal welfare. The

Farmers should be encouraged to adopt high standards
of
existing
agri-environment Chapter of Regulation (EC) No
1257/1999 should be extended to provide for support
to farmers who undertake to adopt standards of animal
husbandry which go beyond statutory minima.

scope

the

of

Experience has shown that the range of instruments to
promote food quality in rural development policy needs
to be reinforced.

in
Farmers
Community
schemes.
Participation in such schemes can give rise to additional

encouraged to participate

should be
or

national

quality

food

(1) Opinion delivered on 5 June 2003 (not yet published in the Official

Journal).

(2) OJ C 208, 3.9.2003, p. 64.
(3) Opinion delivered on 2 July 2003 (not yet published in the Official

Journal).

(4) OJ L 160, 26.6.1999, p. 80.

(5) OJ L 103, 25.4.1979, p. 1. Directive as last amended by Regulation

(EC) No 807/2003 (OJ L 122, 16.5.2003, p. 36).

(6) OJ L 206, 22.7.1992, p. 7. Directive as last amended by Directive

97/62/EC (OJ L 305, 8.11.1997, p. 42).

(7) See page 1 of this Official Journal.

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L 270/71

costs and obligations which are not fully rewarded by
the marketplace. Temporary support should be provided
to farmers who participate in such schemes.

(15)

Regulation (EC) No 1257/1999 should therefore be
amended accordingly,

(9)

There is a need to improve consumers' awareness of the
existence and specifications of products produced under
Community or national food quality schemes. Support
should be provided to producer groups
to inform
and promote products provided under
consumers
schemes supported by Member States within their rural
development plans.

(10)

The introduction of the new accompanying measures
necessitates a clarification of certain existing provisions.
Such clarifications concern mainly the investment
in
agricultural holdings and the financial provisions.

(11) Given the importance of promoting innovation in the
food processing sector, the scope of the existing Chapter
of Regulation (EC) No 1257/1999 for
improving
agricultural products
processing and marketing of
the
should be
food
development
processing.

extended to provide
innovative

approaches

for
in

support

of

(12)

(13)

(14)

The said Chapter lays down eligibility conditions for
support for investments for improving the processing
and marketing of agricultural products including the
requirement for enterprises which receive such support
to already comply with minimum standards regarding
the environment, hygiene and animal welfare. Given
that small processing units can sometimes experience
difficulties in complying with such standards, Member
States should be allowed to grant a period of grace with
reference to the eligibility conditions for investments in
small processing units made in order to comply with
newly introduced standards relating to the environment,
hygiene and animal welfare.

There is a need to improve the ecological and social
value of State owned forests;
investment support for
should be allowed while excluding
these purposes
support
for measures which improve the economic
utilisation of such forests.

rural
Experience to date in the implementation of
development programming for
the 2000 to 2006
period has shown a need to clarify and simplify certain
provisions of Regulation (EC) No 1257/1999 and adapt
certain aid levels. Such clarifications and adaptations
concern mainly the scope and detailed content of
areas with
support
for
environmental
and
promoting the adaptation and development of rural
areas.

less-favoured
restrictions,

areas
training,

forestry

and

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 1257/1999 is hereby amended as follows:

1)

In Article 5, the existing text shall become paragraph 1
and the following paragraphs shall be added:

The conditions for support

‘2.
laid
down in paragraph 1 must be fulfilled at the time when
the individual decision to grant support is taken.

investment

for

3. Where investments are made in order to comply
with newly introduced minimum standards relating to the
environment, hygiene, and animal welfare, support may
be granted in order to comply with the new standards. In
such cases, a period of grace may be provided to farmers
to meet these minimum standards where time is needed
to solve specific problems involved in complying with
such standards. The farmer shall comply with the relevant
standards by the end of the investment period.';

2) Article 7 shall be amended as follows:

(a) The second paragraph of Article 7 shall be replaced

by the following:

total

amount of

a
‘The
expressed as
percentage of the volume of eligible investment,
is
limited to a maximum of 40 % and 50 % in
less-favoured areas.'

support,

(b) The following paragraph shall be added:

‘Where investments are undertaken by young farmers,
as referred to in Chapter II, these percentages may
reach a maximum of 50 % and 60 % in less-favoured
areas during a period not exceeding five years from
the setting up. The age condition laid down in the
first indent of Article 8(1) must be met at the time of
setting up.';

3) Article 8(2) shall be replaced by the following:

‘2.

The setting-up aid may comprise:

(a) a single premium up to the maximum eligible amount

specified in the Annex, and

(b) an interest subsidy on loans taken on with a view to
arising from setting-up;
the
the interest subsidy may not

covering the
costs
capitalised value of
exceed the value of the premium.

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A support higher than the maximum amount referred
to in point a) but not exceeding EUR 30 000 may be
granted to young farmers who are using farm
their
advisory services linked to the setting-up of
activity during
after
years
setting-up.';

a period of

three

A support higher than this maximum amount may be
granted during a period not exceeding five years from
the date the provision imposing new restrictions
becomes mandatory in accordance with Community
legislation. This support shall be granted annually on
a degressive basis and shall not exceed the amount set
out in the Annex.';

4)

In the second paragraph of Article 9, the first indent shall
be replaced by the following:

7)

In Article 20, the existing text shall become paragraph 1
and following paragraph shall be added:

‘— to prepare farmers and other persons involved in
agricultural activities for qualitative reorientation of
production,
the application of production practices
compatible with the maintenance and enhancement of
the landscape,
the environment,
hygiene standards and animal welfare and acquisition
of the skills needed to enable them to manage an
economically viable farm, and';

the protection of

5)

In Article 15(3),
replaced by the following:

the second subparagraph shall be

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

6) Article 16 shall be amended as follows:

(a) Article 16(1) shall be replaced by the following:

Areas referred to in paragraph 1 may not exceed

‘2.
10 % of the area of the Member State concerned.';

8) Article 21 shall be deleted.

9)

The following Chapter shall be inserted after Chapter V of
Title II:

‘CHAPTER Va

MEETING STANDARDS

Article 21a

Support to help farmers to adapt to demanding standards
the
based on Community legislation in the fields of
environment, public, animal and plant health, animal
welfare and occupational safety shall contribute to the
following objectives:

(a) a more

of
Community standards by Member States;

implementation

rapid

demanding

(b) the respect of those standards by farmers;

‘1.
Payments to compensate for costs incurred and
income foregone may be made to farmers who are
subject to restrictions on agricultural use in areas with
environmental
the
of
and
implementation of Directives 79/409/EEC (*)
92/43/EEC (**), if and in so far as such payments are
necessary to solve the specific problems arising from
the implementation of those Directives.

restrictions

result

as

a

(*) OJ L 103, 25.4.1979, p. 1. Directive as last
amended by Regulation (EC) No 807/2003 (OJ
L 122, 6.5.2003, p. 36).

(**) OJ L 206, 22.7.1992, p. 7. Directive as last
amended by Directive 97/62/EC (OJ L 305,
8.11.1997, p. 42).'

(b) Article 16(3) shall be replaced by the following:

(c)

for

in Council Regulation

farm advisory services by farmers, as
the use of
provided
(EC) No
1782/2003 of 29 September 2003 establishing
common rules for direct support schemes under the
common agricultural policy and support schemes for
in assessing the
producers of
performance of
and identifying
farm businesses
improvements required with regard to the statutory
management
in that
Regulation.

certain crops (*),

requirements

set out

as

(*) OJ L 270, 21.10.2003, p. 1.

Article 21b

‘3.
The maximum amount eligible for Community
support is laid down in the Annex. This amount may
be increased in duly justified cases to take account of
specific problems.

1.
Temporary support intended to contribute partly to
costs incurred and income foregone may be granted to
farmers who have to apply demanding standards based on
Community legislation and newly introduced in national
legislation.

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For Member States applying Article 16, support shall not
be granted under this Chapter to a farmer to apply
standards based on the Community legislation referred to
in Article 16.

2.
Support may be granted during a period not
exceeding five years from the date the standard becomes
mandatory in accordance with Community legislation.

To be eligible for support, the standard should impose
new obligations or restrictions on farming practice which
have a significant impact on typical farm operating costs
and which concern a significant number of farmers.

For Directives for which the implementation deadline has
been exceeded
correctly
and which are not
implemented by the Member State, support may be
granted during a period not exceeding five years from
25 October 2003.

yet

not

shall

Support

the
3.
non-application of a standard is due to the non-respect by
the applicant farmer of a standard already transposed in
national legislation.

payable where

be

Article 21c

Support shall be granted annually in the form of a
1.
in equal
rate
aid and on a degressive basis,
flat
instalments. Member States shall modulate the level of
payment per
standard with regard to the level of
obligations resulting from the application of the standard.
Payment
fixed at a level which prevents
overcompensation. Costs related to investments shall not
be taken into account when determining the level of
annual support.

shall be

The maximum eligible annual amount, per holding,

2.
of support is set out in the Annex.

Article 21d

1.
Support may be granted to farmers to help them
meet costs arising from the use of the farm advisory
services which identify and where necessary, propose
improvements relating to the application by farmers of
statutory environmental, public, animal and plant health
and animal welfare standards.

2.
Farm advisory services for which support may be
granted shall be in accordance with Chapter III of Title II
of Regulation (EC) No 1782/2003 and the provisions
adopted in implementation thereof.

10) Chapter VI shall be replaced by the following:

‘CHAPTER VI

AGRI-ENVIRONMENT AND ANIMAL WELFARE

Article 22

Support for agricultural methods designed to protect the
environment, maintain the countryside (agri-environment)
or improve animal welfare shall contribute to achieving
the Community's policy objectives regarding agriculture,
the environment and the welfare of farm animals.

Such support shall promote:

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

(b) an

environmentally-favourable

farming and management of
systems,

extensification

of
low-intensity pasture

(c)

conservation

the
environments which are under threat,

high

of

nature-value

farmed

(d) the upkeep of the landscape and historical features on

agricultural land,

(e)

the use of
practice,

environmental planning in farming

(f)

the improvement of animal welfare.

Article 23

Support

1.
shall be granted to farmers who give
agri-environmental or animal welfare commitments for at
least five years. Where necessary, a longer period shall be
determined for particular types of commitments in view
of their effects on the environment or animal welfare.

Agri-environmental

2.
welfare
commitments shall involve more than the application of
usual good farming practice
including good animal
husbandry practice.

animal

and

3.
The total amount of support for the use of advisory
services as referred to in paragraph 1, shall be limited to a
maximum of 80 % of the eligible cost, without exceeding
the maximum eligible amount as set out in the Annex.';

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

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Article 24

Support

1.
in respect of an agri-environmental or
animal welfare commitment shall be granted annually and
be calculated on the basis of:

(a)

income foregone,

(b) additional costs resulting from the commitment given,

and

(c)

the need to provide an incentive.

Costs related to investments shall not be taken into
account when calculating the level of annual support.
Costs
investments which are
necessary to comply with a commitment may be taken
into account in calculating the level of annual support.

for non-remunerative

2. Maximum amounts per year eligible for Community
support are laid down in the Annex. When support is
calculated on an area basis, these amounts shall be based
on that area of the holding to which agri-environmental
commitments apply.';

11) The following Chapter is inserted after Chapter VI of Title

II:

‘CHAPTER VIa

FOOD QUALITY

Article 24a

Support for agricultural production methods designed to
improve the quality of agricultural products and for
promotion of
those products shall contribute to the
following objectives:

(a)

to provide assurances to consumers on the quality of
the product or of
the production process used
through the participation of farmers in food quality
schemes as defined in Article 24b;

(b) to achieve added value

for agricultural primary

products and to enhance market opportunities;

(c)

to improve consumer information on the availability
and specifications of such products.

Article 24b

Support shall be granted to farmers who participate
1.
food
on a voluntary basis in Community or national
quality
specific production
requirements on agricultural products listed in Annex I to
the Treaty, except
fishery products, and comply with
paragraph 2 or 3 in this Article.

schemes, which impose

Community quality schemes under

2.
Regulations and provisions shall be eligible for support:

the following

(a) Council Regulation (EEC) No 2081/92 of 14 July
indications
1992 on the protection of geographical
and designations of origin for agricultural products
and foodstuffs (*),

(b) Council Regulation (EEC) No 2082/92 of 14 July
for

1992 on certificates of
agricultural products and foodstuffs (**),

character

specific

(c) Council Regulation (EEC) No 2092/91 of 24 June
1991 on organic production of agricultural products
and indications
referring thereto on agricultural
products and foodstuffs (***),

(d) Title VI on quality wine produced in specified regions
of Council Regulation (EC) No 1493/1999 of 17 May
1999 on the common organisation of the market in
wine (****).

To be eligible for support,

3.
food quality schemes
recognised by the Member States shall comply with the
criteria set out in points (a) to (e):

(a)

the specificity of the final product produced under
such schemes
from detailed
obligations on farming methods that guarantee:

derived

shall

be

(i)

specific characteristics including the production
process, or

(ii) a

the

quality of

final product

goes
significantly beyond the commercial commodity
regards public, animal or plant
standards as
health,
environmental
or
protection;

animal welfare

that

(b) the schemes involve binding product specifications
and compliance with those specifications shall be
verified by an independent inspection body;

(c)

the schemes shall be open to all producers;

(d) the schemes shall be transparent and assure complete

traceability of the products;

Support shall only cover products intended for human
consumption.

(e)

the schemes shall respond to current or foreseeable
market opportunities.

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Schemes whose sole purpose is to provide a higher
4.
level of control of respect of obligatory standards under
Community or national
law shall not be eligible for
support.

(*)

OJ L 208, 24.7.1992, p. 1. Regulation as last
amended by Regulation (EC) No 806/2003 (OJ
L 122, 16.5.2003, p. 1).

(**) OJ L 208, 27.7.1992, p. 9. Regulation as last

amended by Regulation (EC) No 806/2003.

(***) OJ L 198, 22.7.1991, p. 1. Regulation as last
amended by Regulation (EC) No 806/2003.

(****) OJ L 179, 14.7.1999, p. 1. Regulation as

last

amended by Regulation (EC) No 806/2003.

Article 24c

Support

shall be paid as an annual

1.
incentive
payment up to the maximum eligible amount per holding
as set out in the Annex. The level of payment amount
shall be determined according to the level of the fixed
costs arising from participation in supported schemes and
be fixed at a level which prevents overcompensation.

The duration of such support shall not exceed a

2.
period of five years.

Article 24d

intended to inform consumers

1.
Support shall be granted to producer groups for
and
activities
promote agricultural products or foodstuffs designated
under Community or national food quality schemes as
described in Article 24b and selected for support by the
Member State under the measure provided for in Articles
24a, 24b and 24c.

about

Support shall cover

2.
advertising activities.

information, promotion and

The total amount of support shall be limited to a

3.
maximum of 70 % of the eligible costs of the action.';

12)

In Article 25(2), the fourth indent shall be replaced by the
following:

14) Article 29(3) shall be replaced by the following:

or

by

their

owners

‘3.
Such support, as provided for in Articles 30 and
32, shall be granted only for forests and areas owned by
by
private
municipalities or their associations. This restriction shall
not apply to the measures provided for in the second
indent of Article 30(1) for investment in forests aimed at
significantly improving their ecological and social value,
and for the measures provided for in the sixth indent of
Article 30(1).';

associations

or

15) Article 29(5) shall be replaced by the following:

‘5. Measures proposed under
in areas
classified as high or medium forest fire risk within the
framework of the Community action on protection of
forests against fire, must conform to the forest protection
plans established by the Member States for these areas.';

this Chapter

16)

In Article 30(1), the last indent shall be replaced by the
following:

‘— restoring forestry production potential damaged by
natural disasters and fire and introducing appropriate
prevention actions.';

17) Article 31 shall be amended as follows:

(a)

In paragraph 1,
replaced by the following:

the second subparagraph shall be

support may

‘Such
establishment costs:

include

in

addition

to

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

resulting

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

from afforestation

‘— to develop and apply new technologies,';

(b) Paragraph 2 shall be replaced by the following:

13)

In Article 26(1),
added:

the following subparagraph shall be

‘Where investments are made in order to comply with
newly introduced minimum standards relating to the
environment, hygiene, and animal welfare, support may
be granted in order to comply with the new standards. In
such cases, a period of grace may be provided to small
processing units to meet these minimum standards where
time is needed to solve specific problems encountered in
complying with such standards. The small processing
units shall comply with the relevant standards by the end
of the investment period.';

‘2. Where support is granted for afforestation of
agricultural land owned by public authorities, it shall
cover only the cost of establishment. If the afforested
land is rented by a private law person, the annual
premia
second
in
subparagraph, may be granted.'

paragraph

referred

to

1,

(c)

In paragraph 3,
replaced by the following:

the second subparagraph shall be

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

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18)

In Article 33, the second paragraph shall be amended as
follows:

Decision 90/424/EEC of 26 June 1990 on expenditure
in the veterinary field (*).

(a)

the third and the fourth indents shall be replaced by
the following:

(*) OJ L 224, 18.8.1990, p. 19. Decision as last amended

by Regulation (EC) No 806/2003.';

‘— setting up of farm advisory systems as referred to
in Chapter III of Title II of Regulation (EC) No
1782/2003, as well as
farm relief and farm
management services,

— marketing

of

products,
including the setting-up of quality schemes as
referred to in Article 24b(2) and (3),'.

agricultural

quality

22)

In the second subparagraph of Article 47(2),
indent shall be replaced by the following:

the last

‘— the Community contribution to the programming for
measures laid down in Articles 22 to 24 of
this
Regulation shall not exceed 85 % in areas covered by
Objective 1 and 60 % in the other areas.';

(b) the following indent shall be added:

23)

In Article 51, the following paragraph shall be added:

‘— management of

integrated rural development

strategies by local partnerships.';

19)

In the second subparagraph of Article 34, the following
two indents shall be added:

‘— conditions governing meeting standards measures

(Chapter Va)

— conditions governing food quality measures (Chapter

VIa)';

20) Article 35(1) shall be replaced by the following:

Community support for early retirement (Articles
‘1.
10, 11 and 12),
less-favoured areas and areas with
environmental restrictions (Articles 13 to 21), meeting
standards (Articles 21a to 21d), agri-environment and
animal welfare (Articles 22, 23 and 24),
food quality
(Articles 24a to 24d) and afforestation (Article 31) shall
be financed by the EAGGF Guarantee Section throughout
the Community.';

State

aid to support

farmers who adapt

‘5.
to
demanding standards based on Community legislation in
the fields of the environment, public, animal and plant
health, animal welfare and occupational safety shall be
prohibited if it does not satisfy the conditions provided
for in Articles 21a, 21b and 21c. However, additional aid
exceeding the maximum amounts fixed in accordance
with Article 21c may be granted to help farmers to
comply with
exceeds
Community standards.

legislation which

national

In the absence of Community legislation, state aid to
support farmers who adapt to demanding standards based
on national legislation in the fields of the environment,
public, animal and plant health, animal welfare and
occupational safety shall be prohibited if
it does not
satisfy the relevant conditions provided for in Articles
21a, 21b and 21c. Additional aid exceeding the maximum
amounts fixed in accordance with Article 21c may be
granted if justified under paragraph 1 of that Article.';

24) The Annex shall be replaced by the text in the Annex to

this Regulation.

21)

In the second paragraph of Article 37(3),
indent shall be replaced by the following:

the second

Article 2

‘— measures to support research projects or measures
funding under Council

for Community

eligible

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

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

Done at Brussels, 29 September 2003.

For the Council

The President

G. ALEMANNO

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ANNEX

‘ANNEX

TABLE OF AMOUNTS

Article

Subject

8(2)

Setting-up aid

Euro

25 000

12(1)

Early retirement

15 000 (*)

per transferor and year

150 000

total amount per transferor

3 500

35 000

per worker and year

total amount per worker

15(3)

Minimum compensatory allowance

25 (**)

per hectare of areas used for agriculture

Maximum average compensatory

Maximum average compensatory
allowance

Maximum payment Initial maximum
payment

Initial maximum payment

200

250

200

500

per hectare of areas used for agriculture

per hectare of areas used for agriculture

per hectare

per hectare

Maximum payment

10 000

per holding

Farm advisory services

1 500

per advisory service

16

21c

21d

24(2)

Annual crops

Specialised perennial crops

Other lands uses

Local breeds in danger being lost to
farming

600

900

450

per hectare

per hectare

per hectare

200 (***)

per livestock unit

Animal welfare

500

per livestock unit

24c

Maximum payment

3 000

per holding

31(4)

Maximum annual premium to cover
loss of income from afforestation

— für Landwirte for farmers of

associations thereofoder deren
Vereinigungen

— for any other private-law person

32(2)

Minimum payment

Maximum payment

725

per hectare

185

40

120

per hectare

per hectare

per hectare

(*)

Subject to the total maximum per transferor, the maximum annual payments may be increased up to twofold taking account of
the economic structure of holdings in territories and the objective of speeding up the adjustment of the agricultural structures.
(**) This amount may be reduced to take account of the particular geographical situation or economic structure of holdings in certain

territories and in order to avoid overcompensation and in accordance with the second indent of Article 15(1).

(***) This amount may be increased in exceptional cases taking account of specific requirements of certain breeds, which should be

justified in the rural developments plans.'