Corrigendum to 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) (OJ L 153, 30.4.2004)
Date: 2004-06-30
Institutions: European Commission
Subjects: EAGGF Guarantee Section, EAGGF Guidance Section, State aid, aid to agriculture, regional aid, rural development

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Corrigendum to 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)

(Official Journal of the European Union L 153 of 30 April 2004)

Regulation (EC) No 817/2004 should read as follows:

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 Euro-
pean Agricultural Guidance and Guarantee Fund (EAGGF) and
amending and repealing certain Regulations (1), and in particular
Articles 34, 45 and 50 thereof,

Whereas:

(1)

(2)

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

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various Council regulations repealed by Article 55(1) of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.

needed. Moreover, in view of the experience gained since
the beginning of the programming period, certain provi-
sions 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.

(5) With respect to the eligibility criteria, Regulation (EC)
No 1257/1999 lays down three basic conditions for sup-
port for investments in agricultural holdings and process-
ing plants and support for young farmers. The time at
which those conditions must be fulfilled should be speci-
fied, 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 pro-
cessing plants is subject to the condition that normal mar-
ket outlets can be found for the products concerned.
Detailed rules should be laid down for assessing such mar-
ket outlets.

(3)

Commission Regulation (EC) No 445/2002 of 26 Febru-
ary 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

(7)

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

(1) OJ L 160, 26.6.1999, p. 80. Regulation as amended by Regulation

(EC) No 583/2004 (OJ L 91, 30.3.2004, p. 1).

(2) 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. 32).

(8)

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

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(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.

(18)

Pursuant to 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.

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

(11) As regards support for agri-environment and animal wel-
fare, the minimum requirements to be met by farmers in
connection with the various agri-environment and animal
welfare commitments should ensure a balanced applica-
tion 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 promo-
tion measures set
in Article 24d of Regulation (EC)
No 1257/1999 and the regime concerning information
and promotion actions established by Regulation (EC)
No 2826/2000 of 19 December 2000 on information and
promotion actions for agricultural products on the inter-
nal market (1), detailed requirements for support for the
promotion of quality products should be laid down, in par-
ticular 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 eli-
gible for rural development support.

(14) The selection criteria for investments to improve the pro-
cessing 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)

(16)

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.

forests not

to
The
Article 29(3) of Regulation (EC) No 1257/1999 should be
defined in greater detail.

support pursuant

eligible

for

(19) Rules common to several measures should be laid down to
in particular, that common standards of good
ensure,
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 effec-
tive 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 Mem-
ber States in their rural development programming,
according to their specific needs and following a transpar-
ent procedure.

(21) Rural development support payments should be made in

full to the beneficiaries.

(22) Commission Regulation (EC) No 1685/2000 (2) lays down
detailed rules for implementing Council Regulation (EC)
No 1260/1999 of 21 June 1999 laying down general pro-
visions on the Structural Funds (3) as regards eligibility of
expenditure under operations part-financed by the Struc-
tural Funds, and hence by the EAGGF Guidance Section. In
the
(EC)
consistency,
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 policy (4) or
in this Regulation.

Regulation

interests

of

(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.

(2) 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).

(3) 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).

(1) OJ L 328, 23.12.2000, p. 2.

(4) OJ L 160, 26.6.1999, p. 103.

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(23)

Standard unit costs are frequently fixed for certain invest-
ments part-financed pursuant to the first, second and sixth
indents of Article 30(1) and pursuant to Article 31 of
Regulation (EC) No 1257/1999. In the interests of clarity
and in order to simplify the management of those mea-
sures, beneficiaries should be exempt, from 2000, from the
requirement to present invoices pursuant to 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.

(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 develop-
ment measures for the period 2000 to 2006 (1) 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 develop-
ment
support provided for by Council Regulation
(EC) No 1257/1999 (2), payments arising from certain
commitments made before 1 January 2000 may be
included in rural development programming for 2000 to
2006 subject to certain conditions. It is therefore necessary
to specify what is included in the overall amount of Com-
munity 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 hav-
ing 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 sup-
port schemes under the common agricultural policy (3)
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 develop-
ment 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 develop-
ment 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 devel-
opment programming documents so as to enable the Com-
mission 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 amend-
ments should be decided by the Member States and com-
municated 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 pursuant to Article 35(1)
and (2) of Regulation (EC) No 1257/1999.

(33)

In this connection, Member States should report regularly
to the Commission on the state of financing of rural devel-
opment measures.

(34)

Steps should be taken to ensure that appropriations ear-
marked 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 alloca-
tions 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 cer-
tain conditions, in order to facilitate the implementation of
investment measures.

(1) OJ L 259, 6.10.1999, p. 27. Decision as amended by Decision

2000/426/EC (OJ L 165, 6.7.2000, p. 33).

(2) OJ L 316, 10.12.1999, p. 26. Regulation as last amended by Regula-

tion (EC) No 2055/2001 (OJ L 277, 20.10.2001, p. 12).

(3) OJ L 160, 26.6.1999, p. 113. Regulation as last amended by Commis-

sion Regulation (EC) No 41/2004 (OJ L 6, 10.1.2004, p. 19).

(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.

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(36) The detailed financial administration of rural development
measures should be governed by the regulations imple-
menting 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 administra-
tion, monitoring and control of rural development sup-
port. In the interests of simplicity, the integrated adminis-
tration and control system foreseen in Title II, Chapter IV
of Council Regulation (EC) No 1782/2003 of 29 Septem-
ber 2003 establishing common rules for direct support
schemes under the common agricultural policy and estab-
lishing certain support schemes for farmers (1) for which
the detailed implementing rules are laid down by Commis-
sion Regulation (EC) No 2419/2001 (2) 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 Regula-
tions (EEC) No 2078/92 (3), (EEC) No 2079/92 (4) and
(EEC) No 2080/92 (5) 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 to 2006. 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.

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 pursu-
ant to Article 5(3) of Regulation (EC) No 1257/1999 in which to
comply with newly introduced standards may not exceed 36
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.

Article 2

For

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

(a)

the products concerned;

(b)

the types of investment;

(c)

existing and planned capacity.

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

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

Article 3

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

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

(1) OJ L 270, 21.10.2003, p. 1. Regulation as last amended by Commis-

sion Regulation (EC) No 583/2004 (OJ L 91, 30.3.2004, p. 1).

(2) OJ L 327, 12.12.2001, p. 11. Regulation as amended by Regulation

(EC) No 118/2004 (OJ L 17, 24.1.2004, p. 7).

(3) OJ L 215, 30.7.1992, p. 85. Regulation repealed by Regulation

(EC) No 1257/1999.

(4) OJ L 215, 30.7.1992, p. 91. Regulation repealed by Regulation

(EC) No 1257/1999.

(5) OJ L 215, 30.7.1992, p. 96. Regulation repealed by Regulation

(EC) No 1257/1999.

SECTION 2

Setting-up of young farmers

Article 4

1.
The conditions for start-up assistance for young farmers laid
down in Article 8(1) of Regulation (EC) No 1257/1999 must be
met at the time when the individual decision to grant support is
taken.

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A period not exceeding five years may be allowed after start-
2.
ing 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

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 farm-
ers 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.

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 6

Meeting standards

Article 12

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.

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 tech-
nical facilities and advisory experience and reliability with respect
to the statutory requirements referred to in Article 21d(1) of
Regulation (EC) No 1257/1999.

Article 8

Agri-environment and animal welfare

SECTION 7

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 pro-
vided that the lease is terminated and the requirements relating to
the transferee laid down in Article 11(2) of Regulation
(EC) No 1257/1999 are complied with.

Article 10

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

Article 13

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

(a) grassland management shall continue;

(b)

(c)

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

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

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Article 14

1.

Support may relate to the following commitments:

(a)

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

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 of these other
units. In such cases, the Member States shall ensure that the maxi-
mum 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:

(b)

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

(a)

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

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 determin-
ing 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 reason-
ably 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.

or

(b) determine the overall maximum amount for each participat-
ing 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 ferti-
lisers, plant protection products or other inputs only if such limi-
tations 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 addi-
tional costs due to the commitment given, except in the case of
specific commitments where a higher rate is deemed to be indis-
pensable for effective implementation of the measure.

Article 20

Article 17

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

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

Article 21

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

1. Member States may authorise one commitment to be con-
verted into another during the period of its operation, on condi-
tion that:

Article 18

(a) any such conversion is of unquestionable benefit to the envi-

ronment or to animal welfare;

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

(b)

the existing commitment is significantly reinforced;

and

The economic consequences of abandoning land or ceasing cer-
tain farming practices may be taken into account where this is jus-
tified by the agronomic or environmental circumstances.

(c)

the approved programme includes
concerned.

the commitments

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An agri-environment commitment may be converted into a com-
mitment 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 reim-
bursement being required.

S u b s e c t i o n 2

P r o m o t i o n o f q u a l i t y p r o d u c t s

Article 23

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

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

SECTION 8

Food quality

S u b s e c t i o n 1

P a r t i c i p a t i o n i n f o o d q u a l i t y s c h e m e s

Article 22

Assistance foreseen in Article 24b of Regulation (EC)
1.
No 1257/1999 may be granted to farmers participating in a qual-
ity 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.

2. Where a support under Article 24b of Regulation
No 1257/1999 for participation in a food quality scheme under
Council Regulation (EEC) No 2092/91 (1) 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.

Professional and/or inter-professional organisations representing
one or more sectors cannot qualify as ‘producer groups’ in the
sense of the first paragraph..

Article 24

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
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, spe-
cific production methods, high animal welfare standards and
respect for the environment linked to the quality scheme con-
cerned, and may include the dissemination of scientific and tech-
nical knowledge about these products.

Such activities shall include, in particular, the organisation of,
and/or participation in, fairs and exhibitions, similar public rela-
tions exercises and advertising via the different channels of com-
munication or at the points of sale.

Article 25

1.
Only information, promotion and advertising activities on
the internal market shall be eligible for support pursuant to
Article 24d of Regulation (EC) No 1257/1999.

2.
Activities pursuant to Article 24 may not concern commer-
cial 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 2081/92 (2)
and those covered by Council Regulation (EC) No 1493/1999 of
17 May 1999 on the common organisation of the market in
wine (3).

(2) OJ L 208, 24.7.1992, p. 1. Regulation as last amended by Regulation

(EC) No 806/2003 (OJ L 122, 16.5.2003, p. 1).

(1) OJ L 198, 22.7.1991, p. 1. Regulation as last amended by Commis-
sion Regulation (EC) No 746/2004 (OJ L 122, 26.4.2004, p. 10).

(3) OJ L 179, 14.7.1999, p. 1. Regulation as last amended by Commis-
sion Regulation (EC) No 1795/2003 (OJ L 262, 14.10.2003, p. 13).

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

minimum standards, may not exceed 36 months from the date on
which the standard becomes mandatory for the small processing
unit.

3. Where activities covered by Article 24 of this Regulation
concern a product included in a quality scheme provided for in
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.

4.
Information and promotion activities supported pursuant
to Regulation (EC) No 2826/2000 shall not qualify for support
pursuant to Article 24d of Regulation (EC) No 1257/1999.

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

Article 29

Article 26

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

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

(a)

the products concerned;

(b)

the types of investment;

(c)

existing and planned capacity.

SECTION 9

Improving the processing and marketing
of agricultural products

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

Article 27

Article 30

Eligible expenditure may include:

(a)

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

(b) new machinery and equipment including computer software;

(c) 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 con-
sidered eligible expenditure up to a ceiling of 12 % of those costs.
For the development of new technologies as referred to in
Article 25(2), fourth indent, of Regulation (EC) No 1257/1999,
the ceiling can be increased up to 25 %.

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 pro-
cessing capacity does not exceed such needs.

SECTION 10

Forestry

Article 31

Article 28

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

the

For

the purposes of

1.
second subparagraph of
Article 26(1) of Regulation (EC) No 1257/1999, ‘small process-
ing units’ means undertakings with fewer than 10 employees and
an annual turnover or annual balance sheet total not exceeding
EUR 2 million.

(a)

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

(b)

forest and other wooded land owned by the crown;

2.
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

(c)

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

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Article 32

Agricultural land eligible for support for afforestation pursuant to
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.
For the purposes of the second indent of the second sub-
paragraph 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 cri-
teria to be determined by the Member State.

the

For

the purposes of

2.
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.

Article 34

Support

under Article

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

Regulation

32

of

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 pro-
duction or limitations on Community support under common
market organisations and shall take account of payments made
under those common market organisations.

2. 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
referred to in Chapter V of Regulation (EC)
allowances
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 con-
dition for the grant of assistance runs, the transferee may take
over the commitment for the remainder of the period. If the com-
mitment 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, Mem-
ber 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.

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 com-
mitment 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.

SECTION 11

Rules common to several measures

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

Article 35

The extension referred to in paragraph 1 may be granted

2.
only under the following conditions:

For the purposes of the third indent of Article 14(2) and the
1.
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 compli-
ance with general mandatory environmental requirements. Con-
cerning the support for animal welfare according to Article 22,
second subparagraph, point (f) of Regulation (EC) No 1257/1999,
these standards comprise at least the mandatory requirements in
this area.

(a)

it is of unquestionable benefit to the measure concerned;

(b)

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

(c)

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

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

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

Article 41

Article 38

Where a beneficiary is unable to continue to comply with com-
mitments given because the holding is reparcelled or is the sub-
ject of other similar public land-consolidation measures, Member
States shall take the measures necessary to allow the commit-
ments 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 recog-
nise, 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;

1.
Environmental measures implemented under common mar-
ket organisations, agricultural quality and health measures, and
rural development measures other than agri-environment support
shall not preclude agri-environment support for the same produc-
tion, provided that such support is additional and consistent with
the measures concerned and without prejudice to paragraph 3.

2. Where support is combined in accordance with para-
graph 1, the level of assistance shall take account of income for-
gone and specific additional costs arising from the combination.

3.
Agri-environment measures on land set aside under
Article 6 of Council Regulation (EC) No 1251/1999 (1) shall
the commitments go beyond
qualify for support only if
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 Regulation
(EC) No 1782/2003 shall qualify for support only if the commit-
ments go beyond the basic requirements laid down in Article 3(1)
of that Regulation.

(d) a severe natural disaster seriously affecting the agricultural

land on the holding;

In the case of extensification of beef production, support shall
take account of the extensification payment under Article 13 of
Council Regulation (EC) No 1254/1999 (2).

(e)

(f)

the accidental destruction of livestock buildings on the
holding;

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 com-
petent authority, together with relevant evidence to the satisfac-
tion 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 pro-
vided for in the programming document.

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

Article 42

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

CHAPTER II

Article 43

GENERAL RULES AND ADMINISTRATIVE AND FINANCIAL
PROVISIONS

SECTION 1

General rules

Article 40

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 program-
ming 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.

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.

(1) OJ L 160, 26.6.1999, p. 1. Regulation as last amended by Regulation

(EC) No 1782/2003 (OJ L 270, 21.10.2003, p. 1).

(2) OJ L 160, 26.6.1999, p. 21. Regulation as last amended by Regula-

tion (EC) No 1782/2003

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Article 44

amount may be the subject of a separate decision containing a
consolidated financial table for all the rural development pro-
grammes of the Member State concerned.

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

Article 45

Regulation (EC) No 1685/2000 shall apply to measures included
in the programming referred to in Article 40(2) and (3) of Regu-
lation (EC) No 1257/1999, except where otherwise provided in
Regulations (EC) No 1257/1999 and (EC) 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 require-
ment to present receipted invoices or accounting documents of
equivalent probative value for the investments concerned as pro-
vided for in point 2 of Rule 1 of the Annex to Regulation
(EC) No 1685/2000.

The costs referred to in paragraph 1 may be applied pro-

2.
vided 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;

(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

That amount referred to in the first subparagraph shall include:

(a)

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

(b) expenditure incurred under earlier accompanying measures
covered by Council Regulations (EEC) No 2078/92 (1), (EEC)
No 2079/92 (2) and (EEC) No 2080/92 (3) and under the
measures covered by the earlier Regulations repealed by the
above Regulations;

(c)

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

2.
Approval shall also cover the allocation and use of amounts
remaining available to the Member States as additional Commu-
nity support under Article 5 of Regulation (EC) No 1259/1999. If
a separate decision as referred to in the first subparagraph of para-
graph 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 addi-
tional financing to rural development measures only if the State
aid is identified in accordance with point 16 of Annex II.

Article 49

Member States shall make rural development programming docu-
ments available to the public.

Article 50

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

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

Article 48

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

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

(1) OJ L 215, 30.7.1992, p.85.
(2) OJ L 215, 30.7.1992, p. 91.
(3) OJ L 215, 30.7.1992, p. 96.

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Article 51

The amendments referred to in paragraph 2 shall be sub-
3.
mitted to the Commission in a single proposal per programme no
more than once per calendar year.

1.
Amendments to rural development programming docu-
ments and rural development measures included in single pro-
gramming 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)

implications

the
commitments.

for

financing

and verification of

2.
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 develop-
ment 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 program-
ming document or in the decision referred to in the first sub-
paragraph of Article 48(1);

(d)

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

— 15 % of the total eligible cost of the programme con-
cerned for the entire programming period, if the Com-
munity contribution is based on the total eligible cost,

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

The first subparagraph shall not apply:

(a) where amendments are required as a result of a natural disas-
ter or other exceptional occurrence with a major impact on
the Member State’s 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 program-
ming document.

Amendments of a financial nature which are not covered by
4.
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 sub-
paragraph may not exceed the ceilings provided for in para-
graph 2(d) when totalled over a calendar year.

Amendments other than those covered in paragraphs 2
5.
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 legis-
lation, 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.

calculated on the basis of the last column (total) of the finan-
cial 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.

Such amendments to rural development programming docu-
ments 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.

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Article 53

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

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
and
(EC) No1784/1999 (2).

(EC) No 1783/1999 (1)

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 devel-
opment measures financed by the EAGGF Guarantee Section:

(a) 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

(b)

revised forecasts of such expenditure for subsequent finan-
cial years until the end of the programming period con-
cerned, keeping within the allocation for each Member State.

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

(1) OJ L 213, 13.8.1999, p. 1.
(2) OJ L 213, 13.8.1999, p. 5.

2. Without prejudice to the general rules on budgetary disci-
pline, 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

1.
For the month during which the decision is adopted approv-
ing a rural development programming document or a single pro-
gramming document under Objective 2 as regards rural develop-
ment 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 con-
tribution provided for in the programming document, covering
the expenditure referred to in Article 48(1).

This advance shall represent working capital which shall be recov-
ered 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.

2.
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

1.
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 subpara-
graph of Article 55(1) which are covered by the appropriations
entered in the budget for the financial year concerned.

2. Where the total amount of the forecasts notified under
point (b) of the first subparagraph of Article 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 Deci-
sion 1999/659/EC.

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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 pro-
portion 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 Com-
mission 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 fol-
lowing 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 Sec-
tion, a new financial table complying with the adjusted forecasts
for the financial year concerned and the allocations fixed by Deci-
sion 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 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 follow-
ing financial year shall be reduced by a third of the difference
between this threshold, or the amounts resulting from the appli-
cation of paragraph 2 if they are below it, and the actual expen-
diture incurred during the financial year concerned.

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

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

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

However, in the case of the public beneficiaries referred to in para-
graph 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.

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

(a) of the advance paid;

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

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

minus the amount of the advance already paid.

Article 58

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

under Article

incurred

5

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, particu-
larly through their replies to common evaluation questions and
their quality.

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 Com-
mission by 30 June of each year and shall relate to the previous
calendar year.

Progress reports shall contain the following information:

(a) any change in the general conditions which is of relevance to
the implementation of the measure, and in particular any
major socioeconomic trends or changes in national, regional
or sectoral policies;

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(b)

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

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

(c) action taken by the management authority and the Monitor-
ing Committee, if provision has been made for such a com-
mittee, 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 man-

aging the measure and any steps taken;

Article 64

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

(d) measures taken to ensure compatibility with Community

policies.

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

2.
The indicators referred to in point (b) of the second subpara-
graph 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 pro-
gramming documents, these shall be included.

2. Mid-term evaluation shall deal with the evaluation questions
and shall examine in particular the initial achievements, their rel-
evance to and consistency with the rural development program-
ming 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.

Article 62

Evaluations shall be performed by independent evaluators in

1.
accordance with recognised practice.

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

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

3. Mid-term and ex post evaluation shall be performed in con-
sultation with the Commission under the responsibility of the
authority
development
in
programming.

of managing

charge

rural

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

4.
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 evalu-
ations shall be made available to the public.

Article 63

Article 65

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

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

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

the programme,

3.
The evaluation reports shall explain the methods used,
including their implications for the quality of the data and the
findings. Reports shall include a description of the context and
contents of
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 recommen-
dations. Their structure shall follow, as far as possible, a common
structure for evaluation reports defined in guidelines drawn up by
the Commission.

financial

SECTION 6

Applications, checks and penalties

Article 66

Applications for rural development support for areas or ani-
1.
mals 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.

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

Article 67

1.
Initial applications to join a scheme and subsequent appli-
cations for payment shall be checked in a manner which ensures
effective verification of compliance with the conditions for grant-
ing 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 inte-
grated administration and control system introduced by Regula-
tion (EC) No 1782/2003.

Verification shall consist of administrative and on-the-spot

2.
checks.

Article 68

Administrative checks shall be exhaustive and shall include cross-
checks wherever appropriate, inter alia with data from the inte-
grated administration and control system. They shall relate to par-
cels and livestock covered by a support measure in order to avoid
all unjustified payments of aid. Compliance with long-term com-
mitments 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 devel-
opment 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.

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

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

Animals and plots of land shall be identified in accordance

4.
with Articles 18 and 20 of Regulation (EEC) No 1782/2003.

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

5. Where support is multiannual, payments subsequent to that
made in the year an application was submitted shall be made in
response to an annual application for payment, except where the
Member State has introduced an effective annual verification pro-
cedure as referred to in Article 66(1).

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.

Article 70

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

Article 73

Article 71

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

1.
support granted to all rural development measures.

2.
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
1.
result of serious negligence shall be excluded from all rural devel-
opment measures under the relevant chapter of Regulation
(EC) No 1257/1999 for the calendar year in question.

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

Article 74

1.

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

Article 65(2) of Regulation (EC) No 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.

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

Article 75

The penalties provided for in paragraph 1 shall apply with-
2.
out prejudice to additional penalties provided for under national
rules.

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

Article 46 shall apply from 1 January 2000.

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

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ANNEX I

(Article 14)

Eligible farm animal species

Thresholds under which a local breed is considered as being
in danger of being lost to farming
(number of breeding females (*))

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).

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ANNEX II

RURAL DEVELOPMENT PLANS

1.

Title of rural development plan

2. Member State and administrative region (if relevant)

3.1. Geographical area covered by the plan

Article 41 of Regulation (EC) No 1257/1999

3.2 Regions classified as Objectives 1 and 2

Article 40 of Regulation (EC) No 1257/1999

Identify:

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

— Objective 2 regions. This applies to:

1.

accompanying measures;

2.

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

4.

Planning at the relevant geographical level

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

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

— all the relevant plans,

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

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

between plans will be ensured.

5. Quantified description of the current situation

First indent of Article 43(1) of Regulation (EC) No 1257/1995

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 (includ-
ing the type and extent of handicaps affecting farming in less-favoured areas), the rural 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 development during the previous program-
ming period and under accompanying measures since 1992. Present the results of evaluations.

3. Other information

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

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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 obliga-
tions in the field of the environment, including those relating to sustainable development, in particular
the quality and use of water, conservation of biodiversity including on-farm conservation of crop varieties,
and global warming.

2. Description and effects of other measures

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

3. Areas covered by specific territorial measures

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

In particular, include:

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

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

(EC) No 1257/1999),

— areas with environmental restrictions, giving reasons.

4.

Timetable and uptake

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

7. Appraisal showing the expected economic, environmental and social impact

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

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

8.

Indicative overall financial table (EAGGF financial year)

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 (1)

EC
contribution (2)

Private sector
contribution (3)

Public
expenditure (1)

EC
contribution (2)

Private sector
contribution (3)

Public
expenditure (1)

EC
contribution (2)

Private sector
contribution (3)

L

2
3
1
/
4
4

E
N

O

f
f
i
c
i
a
l

J
o
u
r
n
a
l

o
f

t
h
e

E
u
r
o
p
e
a
n
U
n
o
n

i

Priority A

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

Of which measures approved under Regulation
(EEC) No 2078/92)

Measure A2…

…Measure A n

Priority B

Total A

Measure B1 (e.g. early retirement)

Of which measures approved under Regulation
(EEC) No 2079/92)

Measure B2…

…Measure B n

Priority N

Total B

Measure N1 (e.g. afforestation)

Of which measures approved under Regulation
(EEC) No 2080/92)

Measure N2…

…Measure N n

Other measures

Evaluation

Total N

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.
(2) Column for the Community contribution planned for each measure. The Community contribution relating to expenditure to be paid is calculated using the rates and arrangements laid down in the programme for each measure.

The Community contribution can be calculated in relation to eligible public expenditure (column 2/column 1) or total eligible cost [column 2/(column 1 + column 3)].

(3) Column for planned (private-sector) expenditure, provided for guidance when such a contribution is foreseen for the measure.
(4) Article 4(2) of Regulation (EC) No 2603/1999. The Member States must define the criteria, identifying clearly the expenditure to be included in programming.
(5) Calculated on the basis of the financial table annexed to the Commission Decision approving the programming document as last amended.

.

.

3
0
6
2
0
0
4

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.
— The different measures are defined as follows:

investment in farms;
start-up assistance for young farmers;
training;
early retirement;
less-favoured areas and areas with environmental restrictions;
agri-environment and animal welfare;
improving processing and marketing of agricultural products;
afforestation of agricultural land;
other forestry measures;
land improvement;
reparcelling;
setting up farm advisory services, farm relief services and farm management services;

(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
(m) marketing of quality agricultural products, including the setting-up of quality schemes;
(n)
(o)
(p)
(q)
(r)
(s)
(t)
(u)
(v)
(w) management of integrated rural development strategies by local partners;
(x)
(y)
(z)
(aa) promotion of quality products.

implementing demanding standards;
use of farm advisory services;
participation in food quality schemes;

basic services for the rural economy and population;
renovation and development of villages and protection and conservation of the rural heritage;
diversifying agricultural activities and activities close to agriculture to provide multiple activities or alternative sources of income;
agricultural water resources management;
development and improvement of infrastructure connected with the development of agriculture;
encouragement for tourist and craft activities;
protecting the environment in connection with agriculture, forestry and landscape management and improving animal welfare;
restoring agricultural production potential damaged by natural disasters and introducing appropriate prevention instruments;
financial engineering;

— 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).

.

.

3
0
6
2
0
0
4

E
N

O

f
f
i
c
i
a
l

J
o
u
r
n
a
l

o
f

t
h
e

E
u
r
o
p
e
a
n
U
n
o
n

i

L

2
3
1
/
4
5

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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.

B. Other information:

None.

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,

— 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.

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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 accor-
dance with Article 5(3) of Regulation (EC) No 1257/1999, justification related to the specific prob-
lems involved in complying with these standards and maximum duration of the period per stan-
dard concerned.

II.

Start-up assistance for young farmers

A. Main features:

None.

B. Other information:

— length of time allowed for young farmers to fulfil the eligibility criteria within the 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 Regu-
lation (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,

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— description of national retirement and early-retirement schemes,

— details on the duration of the aid.

V.

Less-favoured areas and areas with environmental restrictions

A. Main features:

— amount of aid:

1.

2.

for compensatory allowances under Article 13(a) of Regulation (EC) No 1257/1999: pro-
posals 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;

for compensatory allowances under Articles 13(b) and 16 of Regulation (EC) No 1257/1999:
the 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;

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 maxi-
mum 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:

— details of eligibility conditions, in particular:

1.

definition of the minimum area;

2.

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

3.

4.

amount of aid for payments referred to in Article 13(a) 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;

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

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B. Other information:

— description of the significant impact on farm operating costs stemming from the obliga-

tions 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 pro-

cedure 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 rela-
tion to usual good farming practice; (b) the agronomic assumptions used as reference point; (c)
the level of incentive and a justification for this based on objective criteria.

B. Other information:

— 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 iden-
tify 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) varieties, their
population diversity and the prevailing agricultural practices at local level,

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

procedures for adjusting of running contracts,

— changes to the level of support up to 120 % of the costs and income lost indicated in the agro-
nomic 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,

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— for all the agri-environment and animal welfare commitments together, the possible ways of com-
bining 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
(EC) No 1257/1999.

B. Other information

— amount of support per type of eligible scheme and justification for fixed costs as provided

for in Article 24c of Regulation (EC) No 1257/1999.

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, justifi-
cation 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:

(i)

‘agricultural land’ in relation to Article 32 of this Regulation;

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(ii)

‘farmer’ in relation to Article 33 of this Regulation;

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

(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;

(iii) compliance with the criterion of avoidance of overcompensation

— 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 evalu-
ation, a definition of quantified indicators for evaluation, arrangements for controls and sanctions and
adequate publicity

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

1. Detailed information on the implementation of Articles 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 col-

lecting, organising and coordinating data relating to financial, physical and impact indicators,

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

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— 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, imple-
menting, monitoring, evaluating and reviewing agri-environment measures and other measures targeting the
environment, thus ensuring a balance between these measures and other rural development measures.

2.

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

14. Balance between the different support measures

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

1. Describe, with reference to strengths, needs and potential:

— the balance between the different rural development measures;

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

2.

This description shall refer (as the case may be) to:

— measures taken outside the scope of 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,

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— 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.

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

— development measures provided for under the market organisations,

— any rural development measures provided for under national legislation.

16. Additional State aids

Article 52 of Regulation (EC) No 1257/1999

A. Main features

Identify the measures to which additional financing will be granted in the form of State aid (Article 52 of Council
Regulation (EC) No 1257/1999). The amount of additional support to be granted for each of the measures con-
cerned 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 program-

ming document as approved,

— rate of aid.

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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 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 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

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

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Regulation (EC) No 445/2002

Present Regulation

Article 34

Article 35(1)

Article 35(2)

Article 35(3)

Article 36

Article 37

Article 38

Article 39

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 64

Article 65(1)

Article 65(2)

Article 66

—

Annex I

Annex II

Annex III

Article 40

Article 41(1)

Article 41(3)

Article 41(2)

Article 42

Article 43

Article 44

Article 45

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

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