Commission Regulation(EC) No 817/2004 of 29 April 2004 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: 2004-04-29
Institutions: European Commission
Subjects: EAGGF Guarantee Section, EAGGF Guidance Section, State aid, aid to agriculture, regional aid, rural development

L 153/30 

EN 

Official Journal of the European Union 

30.4.2004 

COMMISSION REGULATION (EC) No 817/2004  

of 29 April 2004 

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 Community, 

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 Regulations1, and in particular Articles 34, 45 and 50 thereof, 

Whereas: 

(1)   Regulation  (EC)  No  1257/1999  established  a  single  legal  framework  for  EAGGF 
support for rural development. In particular, Title II thereof specifies the measures eligible for 
support,  their  objectives  and  the  criteria  for  eligibility.  This  legal  framework  applies  to 
support for rural development throughout the Community. 

(2)  
To  supplement  this  framework,  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)2 has been adopted, 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instruments  applied  under  the  various  Council  Regulations  repealed  by  Article  55(1)  of 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. 

(3)   Commission  Regulation  (EC)  No  445/2002  of  26  February  2002  has  been 
substantially amended. In addition, when Regulation (EC) No 1257/1999 was amended, four 
new measures were introduced for which detailed rules are needed. Moreover, in view of the 
experience gained since the beginning of the programming period, certain provisions should 
be  clarified,  in  particular  those  relating  to  the  procedure  for  amending  programming 
documents, to the financial management of programmes and to the controls. In the interests of 
clarity  and  rationality,  therefore,  a  new  Regulation  laying  down  detailed  rules  should  be 
adopted and Regulation (EC) No 445/2002 should be repealed. 

(4)  
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  

2  

OJ  L  160,  26.6.1999,  p.  80.  Regulation  as  amended  by  Regulation  (EC)  No  1783/2003  (OJ  L  270, 
21.10.2003). 
OJ  L  74,  15.3.2002,  p.  1.  Regulation  as  last  amended  by  Regulation  (EC)  No  963/2003  (OJ  L  138, 
5.6.2003, p. 2). 

                                                 
(5)   With respect to the eligibility criteria, Regulation (EC) No 1257/1999 lays down three 
basic conditions for support for investments in agricultural holdings and processing plants and 
support  for  young  farmers.  The  time  at  which  those  conditions  must  be  fulfilled  should  be 
specified,  including  the  duration  of  the  period  of  grace  that  Member  States  may  grant  to 
certain  beneficiaries  in  which  to  comply  with  minimum  standards  in  cases  where  an 
investment is carried out with a view to meeting those standards.  

(6)   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. 

Support  for  vocational  training  should  not  cover  normal  agricultural  and  forestry 

(7)  
education. 

(8)   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. 

(9)   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. 

(10)  The competences and resources required from the authorities and bodies selected for 
providing the farm advisory services should be specified. 

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

(12)  As  regards  support  for  farmers  participating  in  a  food-quality  scheme,  the  products 
concerned by this support and  the types of fixed costs which  may be taken into  account for 
calculating the amount of assistance should be specified.  

(13) 
In order to ensure complementarity between the promotion measures set in Article 24d 
of  Regulation  (EC)  N°  1257/1999  and  the  regime  concerning  information  and  promotion 
actions  established  by Regulation  (EC)  N°  2826/2000  of  19  December  2000  on information 
and promotion actions for agricultural products on the internal market3, detailed requirements 
for support for the promotion of quality products should be laid down, in particular as regards 
beneficiaries and eligible activities. In addition, in order to avoid the risk of double financing, 
information and promotion measures supported under Council Regulation (EC) No 2826/2000 
should not be eligible for rural development support. 

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

(15)  The  outermost  regions  of  the  Community  should  be  exempt,  subject  to  certain 
conditions, from the second indent of Article 28(1) of Regulation (EC) No 1257/1999, under 
which no assistance may be granted for investments intended for the processing or marketing 
of products from third countries. 

3  

OJ L 328, 23.12.2000, p.2. 

2 

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

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

(18)  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 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. 

(19)  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.  

(20)  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 proposed by Member States in 
their  rural  development  programming,  according  to  their  specific  needs  and  following  a 
transparent procedure. 

(21)  Rural development support payments should be made in full to the beneficiaries. 

(22)  Commission  Regulation  (EC)  No  1685/20004 
lays  down  detailed  rules  for 
implementing  Council  Regulation  (EC)  1260/1999  of  21  June  1999  laying  down  general 
provisions on the Structural Funds5 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 Section, 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 policy6 or in this Regulation.  

(23)  Standard unit costs are frequently fixed for certain investments part-financed under the 
first,  second  and  sixth  indents  of  Article  30(1)  and under  Article  31  of  Regulation  (EC)  No 
1257/1999.  In  the  interests  of  clarity  and  in  order  to  simplify  the  management  of  those 
measures,  beneficiaries  should  be  exempt,  from  2000,  from  the  requirement  to  present 
invoices  under  Commission  Regulation  (EC)  No  1685/2000.  The  conditions  on  which 
Member  States  may  apply  such  standard  costs  should  also  be  laid  down  in  order  to  ensure 
efficient management. 

4 

5  

6 

OJ  L  193,  29.7.2000,  p.39.  Regulation  as  amended  by  Regulation  (EC)  No  448/2004,  (OJ  L  72, 
11.3.2004, p. 66). 
OJ  L  161,  26.6.1999,  p.1.  Regulation  as  last  amended  by  Regulation  (EC)  No  1105/2003  (OJ  L  158, 
27.6.2003, p.3). 
OJ L 160, 26.6.1999, p.103.  

3 

 
  
 
                                                 
(24)  Commission  Decision  1999/659/EC  of  8  September  1999  fixing  an  indicative 
allocation by Member States of the allocations under the European Agricultural Guidance and 
Guarantee  Fund  Guarantee  Section  for  rural  development  measures  for  the  period  2000  to 
20067 specifies the type of expenditure covered by the allocations 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 1257/19998, payments arising from certain commitments made before 1 
January  2000  may  be  included  in  rural  development  programming  for  2000-06  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.  

(25) 
In  order  to  ensure  more  flexible  financial  management,  Member  States  which  have 
opted for regionalised rural development programming should have the option of having the 
total amount of Community support granted to each regional programme set out in a separate 
decision containing a consolidated table for the entire Member State.  

(26)  Article  5  of  Council  Regulation  (EC)  No  1259/1999  of  17  May  1999  establishing 
common  rules  for  direct  support  schemes  under  the  common  agricultural  policy9  stipulates 
that  the  amounts  accruing  from  penalties  for  infringement  of  environmental  protection 
requirements  or  from  modulation  remain  available  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. 

(27)  Detailed rules should be laid down for the presentation of rural development plans and 
their revision. 

(28) 
In  order  to  facilitate  the  establishment  of  rural  development  plans  and  their 
examination  and  approval  by  the  Commission,  common  rules  should  be  laid  down  for  the 
structure and content of these plans, based in particular on the requirements set out in Article 
43 of Regulation (EC) No 1257/1999. 

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

(30)  Only  amendments  involving  important  changes  to  rural  development  programming 
documents  should  be  subject  to  the  management  committee  procedure.  Other  amendments 
should be decided by the Member States and communicated to the Commission. 

(31)  To  ensure  effective  and  regular  monitoring,  the  Member  States  should  make  a 
consolidated and updated electronic version of their programming documents available to the 
Commission. 

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

7 
8 

9 

OJ L 259, 6.10.1999, p. 27. Decision as amended by Decision 2000/426/EC (OJ L 165, 6.7.2000, p. 33). 
OJ L 316, 10.12.1999, p. 26. Regulation as last amended by Regulation (EC) No 2055/2001 (OJ L 277, 
20.10.2001, p. 12). 
OJ L 160, 26.6.1999, p. 113. Regulation as last amended by Commission Regulation (EC) No 41/2004 
(OJ L 6, 10.1.2004, p.19). 

4 

 
  
 
                                                 
In  this  connection,  Member States  should  report  regularly  to  the  Commission  on  the 

(33) 
state of financing of rural development measures. 

(34)  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  the  light  of  past  performance.  It  should  also  be  possible  to  grant  advances  to  certain 
categories of beneficiaries, under certain conditions, in order to facilitate the implementation 
of investment measures. 

(35)  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. 

(36)  The  detailed  financial  administration  of  rural  development  measures  should  be 
governed by the regulations implementing Regulation (EC) No 1258/1999. 

(37)  The  procedures  and  requirements  for  monitoring  and  evaluation  should  be  based  on 
the principles applicable to other Community support measures, in particular those laid down 
by Regulation (EC) No 1260/1999. 

(38)  The administrative rules should permit better administration, monitoring and control of 
rural  development  support.  In  the  interests  of  simplicity,  the  integrated  administration  and 
control system foreseen in Title II, Chapter IV of 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  farmers10  for  which  the 
detailed implementing rules are laid down by Commission Regulation (EC) No 2419/200111 
should be applied wherever possible. 

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

(40) 
Information  on  the  situation  regarding  the  implementation  of  former  accompanying 
measures  under  Council  Regulations  (EEC)  Nos  2078/9212,  2079/9213and  2080/9214,  should 
be  included  in  the  annual  report  provided  for  in  Article  48(2)  of  Regulation  (EC)  No 
1257/1999  where  such  measures  form  part  of  the  financial  programming  for  2000-06.  The 
expenditure  arising  under  such  measures  should  also  be  included  in  the  information  which 
Member States are required to supply by 30 September each year. 

(41)  The measures provided for in this Regulation are in accordance with the opinion of the 
Committee on Agricultural Structures and Rural Development, 

10 

11 

12 

13 

14 

OJ L 270, 21.10.2003, p.1. Regulation as last amended by Commission Regulation (EC) No 583/2004 
(OJ L 91, 30.3.2004, p. 1). 
OJ  L  327,  12.12.2001,  p.11.  Regulation  as  amended  by  Regulation  (EC)  No  2550/2001  (OJ  L  341, 
22.12.2001, p. 105). 
OJ L 215, 30.7.1992, p. 85. Regulation as last amended by Commission Regulation (EC) No 2772/95 
(OJ L 288, 1.12.1995, p. 35) and repealed by Regulation (EC) No 1257/1999. 
OJ L 215, 30.7.1992, p. 91. Regulation as last amended by Commission Regulation (EC) No 2773/95 
(OJ L 288, 1.12.1995, p. 37) and repealed by Regulation (EC) No 1257/1999. 
OJ 215, 30.7.1992, p. 96. Regulation as last amended by Commission Regulation (EC) No 231/96 (OJ L 
30, 8.2.1996, p. 33) and repealed by Regulation (EC) No 1257/1999. 

5 

 
  
 
                                                 
HAS ADOPTED THIS REGULATION: 

CHAPTER I 

RURAL DEVELOPMENT MEASURES  

SECTION 1 
Investments in agricultural holdings  

Article 1 

The  period  of  grace  which  the  Member  States  may  grant  under  Article  5(3)  of  Regulation 
(EC)  No  1257/1999  in  which  to  comply  with  newly  introduced  standards  may  not  exceed 
thirty-six months from the date on which the standard becomes mandatory for the farmer.  

The end of the investment period referred to in Article 5(3) of Regulation (EC) No 1257/1999 
shall fall within the period of grace as fixed in the first paragraph.  

The period of grace as fixed in the first paragraph shall not apply to applications for support 
introduced before 7 May 2004. 

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: 

Article 2 

(a)  the products concerned;  

(b) the types of investment; 

(c)  existing and planned capacity. 

2. 

3. 

Any  restrictions  on  production  or  limitations  on  Community  support  under  common 
market organisations shall be taken into account. 

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.  

Article 4(2) of this Regulation shall also apply to investments made by young farmers. 

Article 3 

SECTION 2 
Setting-up of young farmers 

6 

 
  
 
Article 4 

1. 

2. 

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.  

A period not exceeding five 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,  if 
the young farmer needs a period of adaptation in which to start up or to restructure 
the holding.  

Article 5 

The  individual  decision  to  grant  the  aid  provided  for  in  Article  8  of  Regulation  (EC)  No 
1257/1999 shall be taken no later than 12 months after start-up as defined by the provisions in 
force in the Member States.  

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 8 

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

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.  

7 

 
  
 
Article 10 

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

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. 

SECTION 5 
Less-favoured areas and areas with environmental restrictions 

Article 11 

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.  

SECTION 6 
Meeting standards 

Article 12 

The authorities and bodies selected to provide the farm advisory services referred to in Article 
21d  (2)  of  Regulation  (EC)  No  1257/1999  shall  ensure  the  availability  of  appropriate 
resources  in  the  form  of  qualified  staff,  administrative  and  technical  facilities  and  advisory 
experience and reliability with respect to the statutory requirements referred to Article 21d (1) 
of Regulation (EC) No 1257/1999.  

SECTION 7 
Agri-environment and animal welfare 

Article 13 

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

a) 

b) 

c) 

grassland management shall continue;  

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.   

8 

 
  
 
1. 

Support may relate to the following commitments: 

Article 14 

(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.  

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.  

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.  

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 environmental 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. 

Article 17 

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

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. 

Article 18 

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. 

Where commitments are normally expressed in units other than those used in Annex of 
Regulation (EC) No 1257/1999, Member States may calculate payments on the basis 

9 

 
  
 
of these other units. In such cases, the 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 participating farm and ensure 

that the payments for each farm are compatible with this limit.  

3. 

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.  

Article 19 

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.  

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 20 

A farmer who gives an agri-environment or animal welfare 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  or  to 
animal welfare;  

(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  for 
afforestation of agricultural land under 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  or  animal  welfare  commitments  to  be 
adjusted  during  the  period  for  which  they  apply,  provided  that  the  approved 

10 

 
  
 
programme  includes  scope  for  such  adjustment  and  that  the  adjustment  is  duly 
justified having regard to the objectives of the commitment.   

SECTION 8 
Food quality 

Sub-section 1 

Participation in food quality schemes  

Article 22 

1. 

2. 

3. 

Assistance foreseen in Article 24b of Regulation (EC) No 1257/1999 may be granted 
to  farmers  participating  in  a  quality  scheme  only  if  the  agricultural  product  or 
foodstuff has been officially recognised under the Regulations listed in paragraph 2 of 
that Article or a national quality scheme as provided for in paragraph 3 of that Article.  

Where a support under Article 24b of Regulation No 1257/1999 for participation in a 
food  quality  scheme  under  Council  Regulation  (EEC)  No  2092/9115  for  a  specific 
product is included in the rural development programming document, the fixed cost 
resulting  from  the  participation  in  this  quality  scheme  shall  no  more  be  taken  into 
account  in  calculating  the  amount  of  support  in  the  framework  of  an  agri-
environment measure to support organic farming for the same product.  

For  the  purposes  of  Article  24c  of  Regulation  (EC)  No  1257/1999,  “fixed  costs” 
means the costs incurred for entering a quality scheme and the annual contribution for 
participating  in  such  a  scheme,  including,  where  necessary,  expenditure  on  checks 
required to verify compliance with the specifications of the scheme.  

Sub-section 2 

Promotion of quality products  

Article 23 

For  the  purposes  of  Article  24d(1)  of  Regulation  (EC)  No  1257/1999,  “producer  group” 
means  any  organisation,  of  whatever  legal  form,  which  brings  together  operators  actively 
participating in a quality scheme covered by Article 24b of Regulation (EC) No 1257/1999 for 
a specific agricultural product or foodstuff.  

Professional  and/or  interprofessional  organisations  representing  one  or  more  sectors  cannot 
qualify as “producer groups” in the sense of the first paragraph..  

For  the  purposes  of  Article  24d(2)  of  Regulation  (EC)  No  1257/1999,  the  information, 
promotion and advertising activities eligible for support shall be activities designed to induce 

Article 24 

15  

OJ L 198, 22.7.1991, p.1.  

11 

 
  
 
                                                 
consumers to buy the agricultural products or foodstuffs covered by quality schemes included 
in the programming document under the measure “participation in food quality schemes”. 

Such  activities  shall  draw  attention  to  the  specific  features  or  advantages  of  the  products 
concerned,  notably  the  quality,  specific  production  methods,  high  animal  welfare  standards 
and respect for the environment linked to the quality scheme concerned, and may include the 
dissemination of scientific and technical knowledge about these products. 

Such  activities  shall  include,  in  particular,  the  organisation  of,  and/or  participation  in,  fairs 
and exhibitions, similar public relations exercises and advertising via the different channels of 
communication or at the points of sale. 

Article 25 

1. 

2. 

3. 

4. 

Only information, promotion and advertising activities on the internal market shall be 
eligible for support under Article 24d of Regulation (EC) No 1257/1999.  

Activities under Article 24 may not concern commercial brands. They may not incite 
consumers to buy a product due to its particular origin, except for products covered by 
the  quality  scheme  introduced  by  Council  Regulation  (EC)  No  2081/9216  and  those 
covered by Council Regulation (EC) n°1493/1999 on the common organisation of the 
market in wine17.  

The  origin  of  a  product  may  nevertheless  be  indicated  provided  the  mention  of  the 
origin is subordinate to the main message.  

Where activities covered by Article 24 of this Regulation concern a product included 
in a quality scheme provided for under Article 24b(2)(a), (b) or (c) of Regulation (EC) 
No 1257/1999, the Community logo provided for under those schemes shall appear on 
information, promotion and/or advertising material.  

Information  and  promotion  activities  supported  under  Council  Regulation  (EC)  No 
2826/2000  shall  not  qualify  for  support  under  Article  24d  of  Regulation  (EC)  No 
1257/1999.  

Article 26 

The  Member  States  shall  ensure  that  all  draft  information,  promotion,  and  advertising 
materials drawn up in the context of an activity benefiting from support under Article 24d of 
Regulation  (EC)  No  1257/1999  comply  with  Community  legislation.  To  that  end, 
beneficiaries shall transmit all such draft materials to the competent authority of the Member 
State. 

SECTION 9 
Improving the processing and marketing of agricultural products   

16  
17  

OJ L 208, 24.7.1992, p.1. 
OJ L 179, 14.7.1999, p.1 

12 

 
  
 
 
                                                 
Eligible expenditure may include:  

Article 27 

(a) 

(b) 

(c) 

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

new machinery and equipment including computer software; 

general costs, such as architects', engineers' and consultants' fees, feasibility studies, 
acquisition of patents and licences. 

The  costs  referred  to  in  point  (c)  of  the  first  subparagraph  shall  be  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.  For  the development  of  new  technologies  as  referred  to  Article  25(2),  fourth 
indent, of Regulation (EC) No 1257/1999, the ceiling can be increased up to 25 %. 

Article 28 

1. 

2. 

For the purposes of the second subparagraph of Article 26(1) of Regulation (EC) No 
1257/1999,  “small  processing  units”  means  undertakings  with  fewer  than  10 
employees and an annual turnover or annual balance sheet total not exceeding EUR 2 
million. 

The  period  of  grace  which  the  Member  States  may  grant  under  the  second 
subparagraph of Article 26(1) of Regulation (EC) No 1257/1999 in which to comply 
with newly introduced minimum standards, may not exceed thirty-six months from the 
date on which the standard becomes mandatory for the small processing unit.  

The  end  of  the  investment  period  referred  to  in  the  second  subparagraph  of  Article 
26(1), of Regulation (EC) No 1257/1999 shall fall within the period of grace as fixed 
in the second paragraph above.  

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:  

Article 29 

(a) 

the products concerned;  

(b) 

the types of investment;  

(c) 

existing and planned capacity.  

2. 

Any  restrictions  on  production  or  limitations  on  Community  support  under  common 
market organisations shall be taken into account.  

13 

 
  
 
Article 30 

In  the  outermost  regions,  support  may  be  granted  for  investment  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 10 
Forestry  

Article 31 

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

(a) 

(b) 

(c) 

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

forest and other wooded land owned by the crown;  

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).  

Article 32 

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 perennial crops, where farming takes place on 
a regular basis 

Article 33 

1. 

2. 

For the purposes of the second indent of the second subparagraph of Article 31(1) of 
Regulation  (EC)  No  1257/1999,  "farmer"  means  a  person  who  devotes  an  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.  

For the purposes of the second subparagraph of 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.  

1. 

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

Article 34 

14 

 
  
 
2. 

Payments for maintaining fire-breaks through agricultural measures under the second 
indent  of  Article  32(1)  of  Regulation  (EC)  No  1257/1999  may  not  be  granted  for 
areas benefiting from 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. 

SECTION 11 
Rules common to several measures 

Article 35 

1. 

2. 

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.  

The Member States shall define verifiable standards in their rural development plans. 
These  standards  shall  at 
least  entail  compliance  with  general  mandatory 
environmental requirements. Concerning the support for animal welfare according to 
article 22, second subparagraph, points (f) of Regulation (EC) No 1257/1999, these 
standards comprise at least the mandatory requirements in this area. 

Where  a  Member  States  grants  a  period  for  the  compliance  with  a  new  standard  as 
referred  to  article  1  of  this  Regulation  or  a  period  for  the  compliance  of  young 
farmers with the minimum standards referred to in article 4, second subparagraph, of 
this  Regulation,  the  farmers  remains  eligible  for  the  compensatory  allowances 
referred  to  in  Chapter  V  of  Regulation  (EC)  No  1257/1999  and/or  for  agri-
environment or animal welfare support referred to in Chapter VI of that Regulation 
during this period provided the other conditions for granting these supports are met 
and provided that the farmer complies with the standards concerned at the end of the 
period.  

Article 36 

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 assistance runs, the transferee may 
take  over  the  commitment  for  the  remainder  of  the  period.  If  the  commitment  is  not  taken 
over, the beneficiary shall reimburse the assistance granted. 

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. 

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  inappropriate 
results in terms of the commitment entered into. 

15 

 
  
 
Article 37 

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 assistance runs, Member States may 
provide  for  the  commitment  to  be  extended  to  cover  the  additional  area  for  the 
remainder of the period of the commitment in accordance with paragraph 2, or for the 
original commitment to be replaced by a new one in accordance with paragraph 3. 

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

2. 

The  extension  referred  to  in  paragraph  1  may  be  granted  only  under  the  following 
conditions: 

(a) 

it is of unquestionable benefit to the measure concerned;  

(b) 

(c) 

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

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

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 38 

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 commitment shall 
expire  and  reimbursement  shall  not  be  required  in  respect  of  the  period  in  which  the 
commitment was effective. 

Article 39 

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;  

(d) 

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

16 

 
  
 
(e) 

the accidental destruction of livestock buildings on the holding;  

(f) 

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

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

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. That deadline may be extended 
by  20  working  days  so  long  as  that  possibility  is  provided  for  in  the  programming 
document. 

CHAPTER II 

GENERAL RULES AND ADMINISTRATIVE AND 
FINANCIAL PROVISIONS 

SECTION 1 
General rules 

Article 40 

For  the  purposes  of  the  second  subparagraph  of  Article  37(3)  of  Regulation  (EC)  No 
1257/1999, Articles 41, 42 and 43 of this Regulation shall apply.  

Article 41 

1. 

2. 

3. 

Environmental  measures 
implemented  under  common  market  organisations, 
agricultural  quality  and  health  measures,  and  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 and without prejudice to paragraph 3. 

Where  support  is  combined  in  accordance  with  paragraph  1,  the  level  of  assistance 
shall  take  account  of  income  forgone  and  specific  additional  costs  arising  from  the 
combination. 

Agri-environment  measures  on  land  set  aside  under  Article  6  of  Council  Regulation 
(EC) No 1251/199918 shall qualify for support only if the commitments go beyond the 
appropriate environmental measures referred to in Article 6(2) of that Regulation. 

From 1 January 2005, new agri-environment measures on land set aside under Article 
54 or Article 107 of Council Regulation (EC) No 1782/2003 shall qualify for support 
only if the commitments go beyond the basic requirements laid down in Article 3(1) of 
that Regulation. 

18  

OJ L 160, 26.6.1999, p. 1. 

17 

 
  
 
                                                 
In  the  case  of  extensification  of  beef  production,  support  shall  take  account  of  the 
extensification  payment  under  Article  13  of  Council  Regulation  (EC)  No 
1254/199919. 

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. 

Article 42 

Under  no  circumstances  may 
simultaneously under agri-environment support and another Community aid scheme. 

the  same  commitment  be 

the  subject  of  payments 

Article 43 

The  Member  States  must  propose  any  exceptions  under  the  first  indent  of  the  second 
subparagraph  of  Article  37(3)  of  Regulation  (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) or Article 19(1), (2) and (3) of Regulation (EC) No 1260/1999. 

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

Article 44 

Article 45 

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.  

Article 46 

1. 

Member States applying standard unit costs for establishing the cost of certain forestry 
investments under the first, second and sixth indents of Article 30(1) and under Article 
31 of Regulation (EC) No 1257/1999 may exempt beneficiaries from the requirement 
to  present  receipted  invoices  or  accounting  documents  of  equivalent  probative  value 
for  the  investments  concerned  as  provided  for  in  point  2  of  Rule  1  of  the  Annex  to 
Regulation (EC) No 1685/2000. 

2. 

The costs referred to in paragraph 1 may be applied provided the following conditions 
are fulfilled: 

(a) 

the  costs  are  calculated  by  the  competent  public  authorities  on  the  basis  of 
objective  criteria  permitting  determination  of  the  cost  of  individual  activities, 
taking account of specific local conditions and avoiding any overcompensation; 

19 

OJ L 160, 26.6.1999, p. 21. 

18 

 
  
 
                                                 
(b) 

the part-financed investments are made between the date the aid application is 
submitted and the date final payment of that aid is made.";  

SECTION 2 
Programming 

Article 47 

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

Article 48 

1. 

The  approval  of  programming  documents  referred  to  in  Article  44(2)  of  Regulation 
(EC)  No  1257/1999  shall  determine  the  overall  amount  of  Community  support.  If 
Member  States  opt  for  regionalised  rural  development  programming,  that  overall 
amount may be the subject of a separate decision containing a consolidated financial 
table for all the rural development programmes of the Member State concerned.  

That amount referred to in the first subparagraph 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;  

expenditure incurred under earlier accompanying measures covered by Council 
Regulations (EEC) Nos 2078/92, 2079/92 and 2080/92 and 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. 

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.  If  a  separate  decision  as  referred  to  in  the  first  subparagraph  of 
paragraph  1  is  adopted,  these  amounts  shall  appear  in  the  financial  table  annexed  to 
this decision. 

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

3. 

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. 

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

Article 49 

19 

 
  
 
Article 50 

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

Articles 47, 48 and 49 shall also apply in the case referred to in the first paragraph. 

Article 51 

1. 

2. 

Amendments  to  rural  development  programming  documents  and  rural  development 
measures  included  in  single  programming  documents  under  Objective  2  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 commitments. 

Acting  in  accordance  with  the  procedures  referred  to  in  Articles  50(2)  and  48(3)  of 
Regulation  (EC)  No  1260/1999,  the  Commission  shall  approve  any  amendments  to 
rural  development  programming  documents,  financial  table  annexed  to  the  decision 
referred to in the first subparagraph of Article 48(1) and rural development measures 
included in single programming documents under Objective 2 financed by the EAGGF 
Guarantee Section whenever they have a bearing on: 

(a) 

priorities;  

(b) 

the main features of the support measures as indicated in Annex II; 

(c) 

the  overall  maximum  amount  of  Community  support  and/or  the  overall 
minimum total eligible cost or eligible public expenditure fixed in the decision 
approving the programming document or in the decision referred to in the first 
subparagraph of Article 48(1);  

(d) 

the distribution of the financial allocation made for the measures contained in 
the programming document, where it exceeds:  

– 

– 

15% of the total eligible cost of the programme concerned for the entire 
programming  period,  if  the  Community  contribution  is  based  on  the 
total eligible cost, 

20%  of  the  total  eligible  public  expenditure  for  the  programme 
concerned  for  the  entire  programming  period,  if  the  Community 
contribution is based on the eligible public expenditure,  

calculated on the basis of the last column (total) of the financial table annexed to 
the Commission Decision approving the programming document or annexed to 
the  decision  referred  to  in  the  first  subparagraph  of  Article  48(1),  as  last 
amended.  

20 

 
  
 
3. 

The amendments referred to in paragraph 2 shall be submitted to the Commission in a 
single proposal per programme no more than once per calendar year. 

The first subparagraph shall not apply: 

(a)  where  amendments  are  required  as  a  result  of  a  natural  disaster  or  other 
the  Member  State's 

impact  on 

exceptional  occurrence  with  a  major 
programming; 

(b)  where an amendment of the financial table annexed to the decision referred to 
in  Article  48(1)  is  necessary  as  a  result  of  an  amendment  of  a  regional  rural 
development programming document. 

4. 

Amendments  of  a  financial  nature  which  are  not  covered  by  paragraph  2(d)  and 
amendments  to  the  Community  contribution  rate  as  referred  to  in  the  first  indent  of 
point 9(2) B of Annex II shall be communicated to the Commission together with the 
financial table amended in accordance with point 8 of Annex II. They shall enter into 
force on the date on which they are received by the Commission. 

Amendments  of  a  financial  nature  as  referred  to  in  the  first  subparagraph  may  not 
exceed the ceilings provided for in paragraph 2(d) when totalled over a calendar year. 

5. 

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

Such  amendments  may  enter  into  force  earlier  if  the  Commission  confirms  to  the 
Member State before the end of the three-month period that the notified amendments 
comply with Community legislation.  

If  the  notified  amendment  does  not  comply  with  Community  legislation,  the 
Commission  shall  inform  the  Member  State  thereof  and  the  three–month  period 
provided  for  in  the  first  subparagraph  shall  be  suspended  until  the  Commission 
receives a compliant amendment.  

Article 52 

Where  Community  legislation  is  amended,  rural  development  programming  documents  and 
single  programming  documents  under  Objective  2  shall  be  revised  in  line  with  those 
amendments if necessary.  

Article 51(3) shall not apply to such revisions. 

Such  amendments  to  rural  development  programming  documents  or  single  programming 
documents under Objective 2 which are limited to bringing the document into line with new 
Community legislation shall be sent to the Commission for information.  

Article 53 

Member States shall  make  available to the Commission  a  consolidated  electronic version of 
their  programming  documents,  updated  following  each  amendment.  They  shall  provide  the 
Commission with the  electronic  address at which the consolidated versions of programming 
documents can be consulted and shall inform it each time they are updated. 

21 

 
  
 
Furthermore,  Member  States  shall  keep  an  electronic  version of all  the  previous  versions of 
their programming documents. 

SECTION 3 
Additional measures and Community initiatives 

Article 54 

The  scope  of  assistance  from  the  EAGGF  Guidance  Section  is  extended  to  the  whole 
Community in the case of measures under the rural development Community initiative and its 
financing extended to measures eligible under European Parliament and Council Regulations 
(EC) Nos 1783/199920 and 1784/199921.  

SECTION 4 
Financial provisions 

Article 55 

1. 

No later than 30 September each year, the Member States shall forward the following 
information  to  the  Commission,  for  each  rural  development  programming  document 
and  each  single  programming  document  under  Objective  2  as  regards  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 48(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 Member State. 

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

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 56 

For the  month during which the decision  is  adopted approving  a rural  development 
programming  document  or  a  single  programming  document  under  Objective  2  as 
regards 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 48(1). 

2. 

1. 

20 
21 

OJ L 213, 13.8.1999, p. 1. 
OJ L 213, 13.8.1999,p .5. 

22 

 
  
 
                                                 
2. 

1. 

2. 

This  advance  shall  represent  working  capital  which  shall  be  recovered  for  each 
programming document: 

(a) 

once  the  aggregate  sum  of  the  expenditure  paid  out  by  the  EAGGF  and  the 
amount of the advance is equal to the total EAGGF contribution provided for in 
the programming document  or, 

(b) 

at  the  end  of  the  programming  period,  if  the  total  amount  of  the  EAGGF 
contribution is not reached.  

However, Member States may decide to pay the advance back before the end of the 
programming period. 

For  countries  whose  currency  is  not  the  euro  on  the  date  of  such  entry,  advances 
under  paragraph  1  shall  be  entered  in  the  accounts  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 57 

For  each  Member  State,  expenditure  declared  for  any  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  55(1)  which  are  covered  by  the  appropriations 
entered in the budget for the financial year concerned. 

Where  the  total  amount  of  the  forecasts  notified  under  point  (b)  of  the  first 
subparagraph of Article 55(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 allocations 
while ensuring that the amount forecast for each Member State as referred to in the 
first subparagraph is not exceeded. The Commission shall adapt the initial allocations 
per Member State fixed by Decision 1999/659/EC within two months of the adoption 
of  the  budget  for  the  financial  year  concerned.  Within  six  weeks  following  that 
adaptation the Member States shall communicate to the Commission, for each rural 
development  programme  and  single  programming  document  for  Objective  2  as 
regard  rural  development  measures  financed  by  the  EAGGF-Guarantee  Section,  a 
new  financial  table  complying  with  the  adjusted  forecasts  for  the  financial  year 
concerned and the allocations fixed by Decision 1999/659/EC as modified.  

For  2004,  the  communication  of  the  new  financial  table  referred  to  in  the  second 
subparagraph should be done within eight weeks following the entry into force of the 
present Regulation. 

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 55 
(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 

23 

 
  
 
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  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. 

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

Articles 55, 56, and 57 of this Regulation shall not apply to expenditure incurred under Article 
5 of Regulation (EC) No 1259/1999. 

Article 58 

Article 59 

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 cost of the rural development programme.  

Article 60 

1. 

2. 

Beneficiaries  of  investment  support  measures  under  Chapters  I,  VII,  VIII  and  IX  of 
Title  II  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  be  granted  only  to 
municipalities and associations thereof and to public law bodies. 

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  or  an 
equivalent 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.  

24 

 
  
 
4. 

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

(a) 

of the advance paid;  

(b)  of the actual expenditure subsequently paid to beneficiaries, minus the amount 

of the advance already paid.  

SECTION 5 
Monitoring and evaluation 

Article 61 

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  June  of  each  year  and  shall 
relate to the previous calendar year.  

Progress reports shall contain the following information:  

(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;  

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: 

(i)  monitoring  measures,  financial  control  and  evaluation,  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. 

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. 

Article 62 

Evaluations  shall  be  performed  by  independent  evaluators  in  accordance  with 
recognised practice. 

Evaluations  shall  provide  answers,  in  particular,  to  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. 

2. 

1. 

2. 

25 

 
  
 
3. 

1. 

2. 

1. 

2. 

3. 

4. 

The  authority  responsible  for  managing  the  rural  development  programming 
document  shall  assemble  the  appropriate  resources  for  evaluations,  making  use  of 
monitoring results and gathering additional information where necessary. 

Article 63 

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. 

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

Article 64 

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. 

Mid-term  evaluation  shall  deal  with  the  evaluation  questions  and  shall  examine  in 
particular the initial  achievements, 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. 

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. 

The quality of individual evaluations shall be assessed using recognised methods by 
the authority in charge of managing the rural development programming document, 
the  Monitoring  Committee,  if  any,  and  the  Commission.  The  results  of  the 
evaluations shall be made available to the public. 

26 

 
  
 
1. 

2. 

3. 

1. 

2. 

3. 

4. 

5. 

Article 65 

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  Commission  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. 

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  programming  period  and  upon  receipt  of  the  individual  evaluation  reports  the 
Commission shall prepare a Community-level summary. 

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  contents  of  the  programme,  financial  information  and  the  answers  - 
including  the  indicators  used  -  to  the  common  evaluation  questions  and  the 
evaluation questions defined at national or regional level, as well as conclusions and 
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 66 

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. 

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. 

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 development 
support are declared separately. 

Animals and plots of land shall be identified in accordance with Articles 18 and 20 of 
Regulation (EEC) No 1782/2003. 

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 66(1). 

27 

 
  
 
Article 67 

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.  

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. 

Wherever appropriate, Member States shall make use of the integrated administration 
and control system introduced by Regulation (EC) N°1782/2003. 

2. 

Verification shall consist of administrative and on-the-spot checks. 

Article 68 

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.  

Article 69 

On-the-spot  checks  shall  be  made  in  accordance  with  Title  III  of  Regulation  (EC)  No 
2419/2001. They shall cover at least 5% of beneficiaries each year and all the different types 
of  rural  development  measures  set  out  in  the  programming  documents.  As  regards  the 
measure  “early retirement” referred  to in Chapter IV of Regulation (EC) No 1257/1999 and 
the  measure  “afforestation  of  agricultural  land”  referred  to  in  Article  31  of  that  Regulation,  
this  rate  can  be  reduced  down  to  2.5  %  from  the  sixth  year  of  support  for  these  measures 
onwards, without increasing the control rate for the other measures.  

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.  For  investment  support  measures  under 
Chapters I, VII, VIII and IX of Title II of Regulation (EC) No 1257/1999, Member States may 
provide that on-the-spot checks concern only those projects in the process of completion.  

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

Article 70 

Articles  30  and  31  and  Article  32(1)  of  Regulation  (EC)  No  2419/2001  shall  apply  to  area 
payments.  Those  provisions  shall  not  apply  to  support  under  forestry  measures  other  than 
afforestation of agricultural land. 

Articles 36, 38 and 40 of that Regulation shall apply to support based on livestock. 

28 

 
  
 
1. 

2. 

1. 

Article 71 

Article 44 of Regulation (EC) No 2419/2001 shall apply to support granted to all rural 
development measures. 

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

Article 72 

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 beneficiary 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 73 

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. 

CHAPTER III 

FINAL PROVISIONS 

1. 

Regulation (EC) No 445/2002 is hereby repealed. 

Article 74 

Article 65(2) of Regulation (EC) n°445/2002 shall continue to apply. 

2. 

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. 

Article 75 

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

Article 46 shall apply from 1 January 2000. 

29 

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

Done at Brussels, 29 April 2004. 

For the Commission 
Franz FISCHLER 
Member of the Commission 

30 

 
  
 
 
 
 
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 *) 

Cattle 

Sheep 

Goat 

Equidae 

Pigs 

Avian 

7 500 

10 000 

10 000 

5 000 

15 000 

25 000 

* Number, calculated for all EU Member States, of breeding females of the same breed 
available for a pure-bred reproduction, included in a register recognised by the Member 
State (e.g. herd book or zoological book).  

31 

 
  
 
 
ANNEX II 

RURAL DEVELOPMENT PLANS 

1. 

2. 

Title of rural development plan 

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 1257/1995 

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

32 

 
  
 
 
economy,  the  demographic  situation,  human  resources,  employment  and  the 
state of the environment. 

2. 

Impact from the previous programming period 

Describe  the  impact  of  EAGGF  financial  resources  allocated  to  rural 
the  previous  programming  period  and  under 
development  during 
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. 

33 

 
  
 
 
 
 
 
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. 

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. 

34 

 
  
 
 
 
 
8. 

Indicative overall financial table (EAGGF financial year) 

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

Financial programming table: rural development programmes (EUR million) 

Year 1 

......Year 7 

TOTAL 

Public 
expenditure 

EC 
contribution

Private sector 
contribution

EC 
contribution

Private sector 
contribution 

Public 
expenditur
e 

Public 
expenditur
e 

EC 
contribution

Private sector 
contribution

(2) 

(3) 

(2) 

(3) 

(1) 

(1) 

(1) 

(2) 

(3) 

Priority A 

Measure A1 (e.g. agri-
environment and  animal 
welfare) 

Of which measures 
approved under Regulation 
(EEC) No 2078/1992) 

Measure A2… 

…Measure An 

Total A 

Priority B…. 

Measure B1 (e.g. early 
retirement) 

Of which measures 
approved under Regulation 
(EEC) No 2079/1992) 

Measure B2… 

…Measure Bn 

Total B 

... Priority N 

Measure N1 (e.g. 
afforestation) 

Of which measures 
approved under Regulation 
(EEC) No 2080/1992) 

Measure N2… 

…Measure Nn 

Total N 

Other measures 

Evaluation 

Former measures from 
before 1992 

Transitional measures (4) 

Total other measures 

Total expenditure 
incurred (D) 

Total plan (P) (5) 

Under-utilisation (P-D) 

Over-utilisation (D-P) 

(1) 

Column for planned (public) expenditure, provided for guidance. 

35 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2) 

(3) 

(4) 

(5) 

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)]. 

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

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. 

Calculated  on  the  basis  of  the  financial  table  annexed  to  the  Commission  Decision 
approving the programming document as last amended. 

APPLICATION OF APPROPRIATIONS RESULTING FROM MODULATION 

Year 1 

Year 2 

......Year 7 

Total 

Public 
expenditure 

EC 
contribution 

Public 
expenditure

EC 
contribution

Public 
expenditure

EC 
contribution 

Public 
expenditure 

EC 
contribution

Early 
retirement 

Agri-
environment 
and 
animal 
welfare 

Afforestation 

Less-
favoured 
areas 

Total 
modulation 

Note: 

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.  Idem  for  Member  States  with  a  consolidated 
financial table. 

The consolidated financial table referred to in Article 48(1) of this Regulation must follow the 
structure of the table above and the order of the list below. 

36 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
----------------------------------------------------------------------------------------- 

– 

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 and animal welfare; 

(g) 

improving processing and marketing of agricultural products; 

(h) 

afforestation of agricultural land; 

(i) 

other forestry measures; 

(j) 

land improvement; 

(k) 

reparcelling; 

(l) 

setting  up  farm  advisory  services,  farm  relief  services  and  farm  management 
services; 

(m)  marketing  of  quality  agricultural  products,  including  the  setting-up  of  quality 

schemes; 

(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) 

agricultural water resources management; 

(r) 

development  and 
development of agriculture; 

improvement  of 

infrastructure  connected  with 

the 

(s) 

encouragement for tourist and craft activities; 

(t) 

(u) 

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. 

37 

 
  
 
(w)  management of integrated rural development strategies by local partners; 

(x) 

implementing demanding standards; 

(y)  use of farm advisory services; 

(z) 

participation in food quality schemes; 

(aa)  promotion of quality products. 

– 

– 

Measures (j) to (w) may be defined as a single measure: (j) promoting the adaptation 
and development of rural areas. 

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. 

the main features of support measures,  

B. 

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. 

–  overall objective of each measure 

2 

Requirements concerning all or several measures(1). 

A.  Main features: 

–  exceptions referred to in the first indent of the second subparagraph 

of Article 37(3) of Regulation (EC) No 1257/1999. 

B.  Other information: 

–  Community  contribution  based  on  either  the  total  cost  or  public 

expenditure; 

38 

 
  
 
–  aid intensity and/or amount and differentiation applied (Chapters I 

to VIII); 

–  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); 

–  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. 

–  designation of the standards for which a period of grace can 
be  granted  to  the  farmer  in  accordance  with  article  5(3)  of 
Regulation  (EC)  No  1257/1999,  justification  related  to  the 
specific problems involved in complying with these standards 
and maximum duration of the period per standard concerned. 

II. 

Start-up assistance for young farmers 

A.  Main features: 

None. 

39 

 
  
 
 
B.  Other information: 

–  length  of  time  allowed  for  young  farmers  to  fulfil  the 
eligibility  criteria  within  the  five-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. 

–  designation of farm advisory services linked to the setting-up 
of young farmers in cases where the support granted is higher 
than  provided  for  in  the  second  subparagraph  of  Article 
8(2)(b) of Regulation (EC) No 1257/1999. 

III.  Training 

A.  Main features: 

None. 

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. 

40 

 
  
 
V.  Less-favoured areas and areas with environmental restrictions 

A.  Main features: 

–  amount of aid: 

1) 

2) 

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;  where  the  maximum  payment  as  laid  down  in  the 
Annex to Regulation (EC) No 1257/1999 is applied, indicate 
the objective circumstances justifying this application; 

(EC)  No  1257/1999: 

for compensatory allowances under Articles 13(b) and 16 of 
Regulation 
initial  detailed 
agronomic  calculations  showing:  (a)  income  foregone  and 
costs incurred as a result of the environmental restrictions, (b) 
agronomic assumptions used as reference point; 

the 

3) 

for  compensatory  allowances  as  referred  to  in  Article  16  of 
Regulation (EC) No 1257/1999:   

–  indicate,  if  necessary,  the  specific  problems  justifying  a 
higher support than the maximum amount, as provided for in 
the  first  subparagraph  of  Article  16(3)  of  the  above 
Regulation;  

–  indicate,  if  necessary,  the  justification  for  initially  higher 
support as provided for in the second subparagraph of Article 
16(3) of the above Regulation.  

B.  Other information: 

1) 

2) 

3) 

–  details of eligibility conditions, in particular: 

definition of the minimum area;  

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

amount of aid for payments referred to in point (a) of Article 
13  of  Regulation  (EC)  No  1257/1999:  justification  of 
differentiation of the amount of aid using the criteria set out 
in Article 15(2) of that Regulation;  

4.) 

for  compensatory  allowances  referred  to  in  point  (b)  of 
Article 13 and Article 16 of Regulation (EC) No 1257/1999: 

41 

 
  
 
changes  to  the  detailed  agronomic  calculations  fixed  in  the 
programming document as approved; 

–  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.  Meeting standards 

VI.1. Implementing demanding standards  

A.  Main features: 

–  list of standards based on Community legislation eligible for 
support under Article 21b of Regulation (EC) No 1257/1999, 
date  from  which  the  standard  is  mandatory  in  accordance 
with Community legislation and justification of choice.  

B.  Other information: 

–  description of the significant impact on farm operating costs 
stemming from the obligations or restrictions imposed by the 
new standard; 

–  amount  of  support  per  eligible  standard  and  detailed 

calculations justifying this amount. 

VI.2.  Use of farm advisory services 

A.  Main features: 

None.  

B.  Other information: 

–  description  of  the  farm  advisory  system  put  in  place  by  the 
Member  State,  including  the  procedure  for  the  selection  of 
the bodies responsible for the advisory services. 

–  frequency  of  support  granted  to  a  farmer  for  the  use  of 
agricultural  advisory services in the  four areas referred to  in 
article 21d (1) of Regulation (EC) No 1257/1999 

VII.  Agri-environment and animal welfare 

A.  Main features: 

–  justification  for  the  commitments,  based  on  their  expected 

impact; 

–  the  initial  detailed  agronomic  calculations  showing:  (a) 
income  foregone  and  cost  incurred  in  relation  to  usual  good 

42 

 
  
 
 
 
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: 

–  the list of local breeds in danger of being lost to farming and 
the number of breeding females for the areas concerned. That 
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, 

–  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) 
the  prevailing 
varieties, 
agricultural practices at local level; 

their  population  diversity  and 

–  details  of  obligations  on  farmers  and  any  other  terms  of  the 
commitment, including scope and procedures for adjusting of 
running contracts, 

–  changes to the level of support up to 120 % of the costs and 
income  lost  indicated  in  the  agronomic  calculations  fixed  in 
the programming document as approved and the justification 
for these changes 

–  description of 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 and animal welfare commitments 
together,  the  possible  ways  of  combining  commitments 
should be shown and the mutual consistency of commitments 
should be ensured. 

VIII.  Food quality  

VIII.1. Participation in food quality schemes  

A.  Main features 

–  list  of  Community  and  national  quality  schemes  eligible  for 
support.  For  national  schemes,  description  of  the  scheme 
regarding  the  criteria  referred  to  in  Article  24b(3)  of 
Regulation No 1257/1999.  

B.  Other information 

43 

 
  
 
–  amount  of  support  per 

type  of  eligible  scheme  and 
justification for fixed costs as provided for in Article 24c of 
Regulation No 1257/99. 

VIII.2. Promotion of quality products  

A.  Main features 

–  None.  

B.  Other information 

–  list  of  products  qualifying  for  support  under  the  quality 

scheme chosen under the measure referred to in VIII.1; 

–  procedure  for  ensuring  that  actions  benefiting  from  rural 
development  support  are  not  also  supported  under  Council 
Regulation (EC) No 2826/2000; 

–  procedure for ex-ante checks on information, promotion, and 

advertising materials (Article 26 of this Regulation); 

–  description of eligible costs. 

IX. 

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, 

–  designation of the standards for which a period of grace can 
be  granted  to  the  small  processing  units  in  accordance  with 
article  26(1),  second 
indent,  of  Regulation  (EC)  No 
1257/1999,  justification  related  to  the  specific  problems 
involved  in  complying  with  these  standards  and  maximum 
duration of the period per standard concerned.. 

X. 

Forestry 

A.  Main features: 

–  None 

B.  Other information: 

definition of: 

"agricultural  land"  in  relation  to  Article  32  of  this 

(i) 
Regulation; 

44 

 
  
 
(ii) 

“farmer" in relation to Article 33 of this Regulation; 

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

(iv) 
contractual  arrangements  between  regions  and  potential 
beneficiaries  concerning  measures  referred  to  in  Article  32  of 
Regulation (EC) No 1257/1999. 

–  where the standard costs referred to in Article 46 are applied: 

– 

– 

– 

(i) 

the standard unit costs;  

(ii) 

the method used to fix those costs;  

compliance  with 

(iii) 
overcompensation 

the  criterion  of  avoidance  of 

–  description of eligible measures and beneficiaries; 

–  linkage  between  proposed  measures  and  national/sub-national  forest 

programmes or equivalent instruments; 

–  reference  to  the  forest  protection  plans  for  areas  classified  as  high  or 
medium  risk  for  forest fires  and  the  conformity  of  proposed  measures 
with these protection plans. 

XI.  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. 

45 

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

1.  Detailed  information  on  the  implementation  of  Articles  60  to  65  of  this 

Regulation 

This should include in particular: 

–  the possibility of granting advances to certain beneficiaries of investment 

measures, 

–  the  description  of  the  financial  circuits  for  the  payment  of  assistance  to 

final beneficiaries, 

–  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  66  to  73  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 45 of this Regulation. 

4.   Other information: 

Where appropriate, information that the time limit for notifying cases of 
force majeure has been extended (Article 39(2) 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 1257/1995 

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 

46 

 
  
 
 
 
 
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  Council  Regulation  (EC)  No 

1257/1999, 

–  measures taken or planned under separate rural development plans. 

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 Council Regulation (EC) No 1257/1999. 

B.  Other information. 

47 

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

to  ensure  proper 

–  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 

–  abolition of a State aid;  

–  changes  to  the  additional  financing  in  the  form  of  State  aid  granted  for  any  of  the 
measures in the programming document as approved; 

– 

rate of aid. 

48 

 
  
 
 
 
ANNEX III 

CORRELATION TABLE 

Regulation (EC) No 445/2002 

Present Regulation 

Article 1 

Article 2 

Article 3(1) 

Article 3(2) 

Article 4 

Article 5 (1) 

Article 5(2) and (3) 

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 

Article 19 

Article 20 

- 

Article 1 

Article 2 

- 

Article 3 

Article 4 

Article 5 

- 

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 

Article 19 

Article 20 

49 

 
  
 
 
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 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 

Article 36 

Article 37 

Article 38 

Article 39 

Article 40 

Article 41(1) 

Article 41(3) 

Article 41(2) 

Article 42 

Article 43 

Article 44 

Article 45 

50 

 
  
 
Article 39a 

Article 40 

Article 41 

Article 42 

Article 43 

Article 44 

Article 45 

Article 45a 

Article 46 

Article 47 

Article 48 

Article 49 

Article 50 

Article 51 

Article 52 

Article 53 

Article 54 

Article 55 

Article 56 

Article 57 

Article 58 

Article 59 

Article 60 

Article 61 

Article 62  

Article 62a 

Article 63 

Article 46 

Article 47 

Article 48 

Article 49 

Article 50 

Article 51 

Article 52 

Article 53 

Article 54 

Article 55 

Article 56 

Article 57 

Article 58 

Article 59 

Article 60 

Article 61 

Article 62 

Article 63 

Article 64 

Article 65 

Article 66 

Article 67 

Article 68 

Article 69 

Article 70 

Article 71 

Article 72 

51 

 
  
 
Article 64 

Article 65(1) 

Article 65(2) 

Article 66 

- 

Annex I 

Annex II 

Annex III 

Article 73 

Article 74(1), first subparagraph and 74(2) 

Article 74(1), second subparagraph 

Article 75, first subparagraph 

Article 75, second subparagraph  

Annex I 

Annex II 

Annex III 

52