Council Regulation (EC) No 1698/2005 of 20 September 2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD)
Date: 2005-09-20
Institutions: Council of the European Union
Subjects: EU aid, financial aid, fund (EU), rural development

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I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 1698/2005

of 20 September 2005

on support for rural development by the European Agricultural Fund for Rural Development
(EAFRD)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Articles 36, 37 and 299(2)
thereof,

Having regard to the proposal from the Commission,

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

Whereas:

(3) The reform of the common agricultural policy in June
2003 and April 2004 introduced major changes likely to
have a significant impact on the economy across the
whole rural territory of the Community in terms of
land management
agricultural production patterns,
methods,
and
social
employment
economic conditions in the various rural areas.

and the wider

(4) Action by the Community should be complementary to
that carried out by the Member States or seek to
contribute to it. The partnership should be strengthened
through arrangements for the participation of various
types of partners with full regard to the institutional
competences of
the Member States. The partners
concerned should be involved in the preparation,
monitoring and evaluation of programming.

(5)

(1) A rural development policy should accompany and
complement the market and income support policies of
the common agricultural policy and thus contribute to
the achievement of that policy’s objectives as laid down
in the Treaty. Rural development policy should also take
into account the general objectives for economic and
social cohesion policy set out
in the Treaty and
contribute to their achievement, while integrating other
major policy priorities as spelled out in the conclusions
of
the Lisbon and Göteborg European Councils for
competitiveness and sustainable development.

the common agricultural policy,

this Regulation, namely rural
Since the objective of
development, cannot be achieved sufficiently by the
Member States given the links between it and the other
instruments of
the
extent of the disparities between the various rural areas
and the limits on the financial resources of the Member
States in an enlarged Union, and can therefore be better
achieved at Community level through the multiannual
guarantee of Community finance and by concentrating it
on its priorities, the Community may adopt measures, in
accordance with the principle of subsidiarity as set out in
Article 5 of the Treaty. In accordance with the principle
of proportionality as
this
set out
Regulation does not go beyond what is necessary in
order to achieve that objective.

in that Article,

(2) According to the Treaty, in working out the common
agricultural policy and the special methods for
its
application, account is to be taken of the particular
nature of agricultural activity which results from the
social structure of agriculture and from structural and
natural disparities between the various rural areas.

(1) Opinion of 7.6.2005 (not yet published in the Official Journal).

(6) The activities of the European Agricultural Fund for Rural
Development (hereinafter the EAFRD) and the operations
to which it
and
contributes must be
compatible with the other Community policies and
comply with all Community legislation.

consistent

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(7)

the
In its action in favour of
Community takes care to eliminate inequalities and to
promote equality between men and women and non-
discrimination, in accordance with the Treaty.

rural development,

management, farm relief and farm advisory services as
well as
should be made
available.

forestry advisory services

(8) To focus the strategic content of rural development
policy in line with the Community’s priorities and hereby
should adopt
favour
strategic guidelines on a proposal from the Commission.

transparency,

the Council

its

(9) On the basis of the strategic guidelines, each Member
State should prepare its rural development national
strategy plan constituting the reference framework for
the preparation of the rural development programmes.
Member States and the Commission should report on the
monitoring of the national and Community strategy.

(10) The programming of rural development should comply
with Community and national priorities and comple-
ment the other Community policies,
in particular the
agricultural market policy, cohesion policy and common
fisheries policy.

(11) To ensure the sustainable development of rural areas it is
necessary to focus on a limited number of core objectives
at Community level relating to agricultural and forestry
competitiveness,
land management and environment,
quality of life and diversification of activities in those
areas, taking into account the diversity of situations,
ranging from remote rural areas suffering from depopu-
lation and decline to peri-urban rural areas under
increasing pressure from urban centres.

(12) There is a need to establish general rules for program-
ming and revising rural development programming,
while ensuring an appropriate balance between the axes
of the rural development programmes corresponding to
those core objectives. The duration of the programmes
should be of seven years.

the agricultural and forestry sectors

(13) To achieve the objective of improving the competitive-
ness of
is
important to build clear development strategies aimed
at enhancing and adapting human potential, physical
potential and the quality of agricultural production.

it

(15) As

regards

training,

information and diffusion of
knowledge, the evolution and specialisation of agricul-
ture and forestry require an appropriate level of technical
and economic training,
including expertise in new
information technologies, as well as adequate awareness
in the fields of product quality, results of research and
sustainable management of natural resources, including
cross-compliance requirements and the application of
production practices compatible with the maintenance
and enhancement of the landscape and the protection of
the environment. It is therefore necessary to broaden the
scope of training, information and diffusion of knowl-
adult persons dealing with
edge
agricultural, food and forestry matters. These activities
cover issues under both the agricultural and forestry
competitiveness and the land management and environ-
ment objectives.

activities

to all

(16) The granting of specific benefits to young farmers may
facilitate both their
and the
initial
structural adjustment of their holdings after their initial
setting up. The setting-up measure should be made
conditional on the establishment of a business plan as an
instrument to ensure over time the development of the
activities of the new agricultural holding.

establishment

(17) Early retirement from farming should target a significant
structural change of the transferred holdings through the
measure for the setting-up of young farmers according to
the requirements of that measure, or by transferring the
holding with a view to increasing its size, also taking into
account the experience acquired in the implementation
of previous Community schemes in this field.

(18) The use by farmers and forest holders of management
and advisory services should allow them to improve the
sustainable management of their holdings. At least, the
use of farm advisory services, as provided for in Council
Regulation (EC) No 1782/2003 of 29 September 2003
establishing common rules for direct support schemes
under the common agricultural policy and establishing
(1), should help
certain support schemes for farmers
farmers to assess the performance of their agricultural
holding and identify necessary improvements with regard

(14) With regard to human potential, a set of measures on
training, information and diffusion of knowledge, setting
up of young farmers, early retirement of farmers and
farm workers, use by farmers and forest holders of
farm
advisory services and on the setting up of

(1) OJ L 270, 21.10.2003, p. 1. Regulation as last amended by
Commission Regulation (EC) No 118/2005 (OJ L 24,
27.1.2005, p. 15).

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to the statutory management requirements set out in that
Regulation and to Community standards relating to
occupational safety.

(19) The setting up of farm management, farm relief and farm
advisory services for farmers and of forestry advisory
services for forest holders should help them to adapt,
improve and facilitate management and improve the
overall performance of
their holdings by further
enhancing the human potential operating in the
agricultural and forestry sectors.

the economic value of

(20) With regard to physical potential, a set of measures on
the modernisation of agricultural holdings, improvement
of
forests, adding value to
agricultural and forestry products, promoting the devel-
opment of new products, processes and technologies in
the agriculture and food sector and in the forestry sector,
improvement and development of agricultural and
forestry infrastructure, restoring agricultural production
potential damaged by natural disasters and introduction
of appropriate prevention measures should be made
available.

(21) The purpose of Community farm investment aid is to
modernise agricultural holdings to improve their eco-
nomic performance through better use of the production
factors including the introduction of new technologies
and innovation, targeting quality, organic products and
on/off-farm diversification,
including non-food sectors
and energy crops, as well as improving the environ-
mental, occupational safety, hygiene and animal welfare
status of agricultural holdings, while simplifying the
conditions for investment aid as compared with those
laid down in Council Regulation (EC) No 1257/1999 of
17 May 1999 on support for rural development from the
European Agricultural Guidance and Guarantee Fund
(EAGGF)

(1).

(22) Private forests play an important role in economic
activity in rural areas and, therefore, Community aid is
important for improving and broadening their economic
value, for increasing diversification of production and
enhancing market opportunities, in sectors such as that
for renewable energy, while maintaining the sustainable
management and the multifunctional role of forests.

(23)

Improvements
in the processing and marketing of
primary agricultural and forestry products should be
encouraged by means of support for investments aimed
at improving efficiency in the processing and marketing

(1) OJ L 160, 26.6.1999, p. 80. Regulation as last amended by
Regulation (EC) No 2223/2004 (OJ L 379, 24.12.2004, p. 1).

sector, promoting the processing of agricultural and
forestry production for renewable energy,
introducing
new technologies and innovation, opening new market
opportunities for agricultural and forestry products,
putting emphasis on quality, improving environmental
safety, hygiene and animal
protection, occupational
welfare, as appropriate, by targeting, as a general rule,
micro, small and medium-sized enterprises and other
enterprises under a certain size, which are better placed
to add value to local products, while simplifying the
conditions for investment aid as compared with those
laid down in Regulation (EC) No 1257/1999.

(24)

In a context of increased competition it is important to
ensure that the agriculture and food sector and the
forestry sector can take advantage of market opportu-
nities through widespread innovative approaches in
developing new products, processes and technologies.
For this purpose cooperation between farmers, the food
and the raw materials processing industry and other
parties should be encouraged.

(25) Agricultural infrastructure and restorative and preventive
measures against natural disasters should contribute to
the agricultural and forestry competitiveness axis.

(26) With regard to the quality of agricultural production and
products, a set of measures on meeting standards by
farmers based on Community legislation, encouraging
participation of farmers in food quality schemes and
supporting producer groups
information and
promotion activities should be made available.

for

(27) The aim of the measure on meeting standards is to
promote a more rapid implementation by farmers of
demanding standards based on Community legislation
concerning the environment, public health, animal and
plant health, animal welfare and occupational safety and
the respect of
those standards by farmers. These
standards may impose new obligations on farmers and
consequently support should be provided to help cover
partly the additional costs or income foregone arising
from these obligations.

(28) The aim of the measure providing support for farmers
participating in Community or national
food quality
schemes is to provide consumers with assurances on the
quality of the product or the production process used as
a result of their participation in such schemes, to achieve
added value for agricultural primary products and

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enhance market opportunities. Since participation in
such schemes may give rise to additional costs and
obligations which are not fully rewarded by the market-
place, farmers should be encouraged to participate in
such schemes.

(29) There is a need to improve consumers’ awareness of the
existence and specifications of products produced under
the aforementioned quality schemes. Support should be
provided to producer groups to inform consumers and
promote products provided under quality schemes
supported by Member States within their rural develop-
ment programmes.

(30) There is a need to ensure the smooth transition of a set of
individual measures introduced through the 2003 Act of
Accession, namely the measure on semi-subsistence
farming and the measure on producer groups.

(31) Support

and improve natural

for specific methods of

land management
should contribute
to sustainable development by
encouraging farmers and forest holders in particular to
employ methods of land use compatible with the need to
preserve the natural environment and landscape and
protect
should
contribute to the implementation of the 6th Community
Environment Action Programme and the Presidency
conclusions
regarding the Sustainable Development
Strategy. Key issues to be addressed include biodiversity,
Natura 2000 site management, the protection of water
and soil, climate change mitigation including the
reduction of greenhouse gas emissions, the reduction
of ammonia emissions and the sustainable use of
pesticides.

resources.

It

(32) Forestry is an integral part of rural development and
support for sustainable land use should encompass the
sustainable management of
forests and their multi-
functional role. Forests create multiple benefits: they
provide raw material for renewable and environmentally
role in
friendly products and play an important
economic welfare, biological diversity, the global carbon
cycle, water balance, erosion control and the prevention
of natural hazards, as well as providing social and
recreational
should be
services. Forestry measures
adopted in the light of undertakings given by the
Community and the Member States at international level,
and be based on Member States’ national or sub-national
forest programmes or equivalent
instruments, which
should take into account the commitments made in the
Ministerial Conferences on the Protection of Forests in
Europe. Forestry measures should contribute to the

the Community Forestry Strategy.
implementation of
This support should avoid distorting competition and
should be market-neutral.

(33) Natural handicap payments in mountain areas and
payments in other areas with handicaps should con-
tribute, through continued use of agricultural land, to
maintaining the countryside, as well as to maintaining
and promoting sustainable farming systems. Objective
parameters for fixing the level of payments should be laid
down in order to ensure the efficiency of this support
scheme and ensure that
its objectives are achieved.
Certain provisions of Regulation (EC) No 1257/1999
concerning support for less favoured areas should remain
in force for a period of time.

(34) Support should continue to be granted to farmers to help
address specific disadvantages in the areas concerned
resulting from the implementation of Council Directive
79/409/EEC of 2 April 1979 on the conservation of wild
birds (1) and Council Directive 92/43/EEC of 21 May
1992 on the conservation of natural habitats and of wild
fauna and flora (2) in order to contribute to the effective
management of Natura 2000 sites, while support should
also be made available to farmers to help address
disadvantages in river basin areas resulting from the
implementation of Directive 2000/60/EC of the Eur-
opean Parliament and of the Council of 23 October
2000 establishing a framework for the Community
action in the field of the water policy (3).

(35) Agri-environmental payments should continue to play a
prominent role in supporting the sustainable develop-
ment of rural areas and in responding to society’s
increasing demand for environmental services. They
should further encourage farmers and other
land
managers to serve society as a whole by introducing or
continuing to apply agricultural production methods
compatible with the protection and improvement of the
the landscape and its features, natural
environment,
resources, the soil and genetic diversity. In this context
the conservation of genetic resources in agriculture
should be given specific attention. In accordance with the
polluter-pays principle these payments should cover only
those commitments going beyond the relevant manda-
tory standards.

(36) Farmers should continue to be encouraged to adopt high
standards of animal welfare by providing for support for
farmers who undertake to adopt standards of animal
husbandry which go beyond the relevant mandatory
standards.

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

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

(2) OJ L 206, 22.7.1992, p. 7. Directive as last amended by
Regulation (EC) No 1882/2003 of the European Parliament and
of the Council (OJ L 284, 31.10.2003, p. 1).

(3) OJ L 327, 22.12.2000, p. 1. Directive as amended by Decision

No 2455/2001/EC (OJ L 331, 15.12.2001, p. 1).

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(37) Support should be granted for non-remunerative invest-
ments where they are necessary to achieve the commit-
ments undertaken under agri-environmental schemes or
other agri-environmental objectives, or where they
enhance on-farm the public amenity value of Natura
2000 areas and other areas of high natural value.

(44)

(38)

to contribute to the protection of

the
In order
the prevention of natural hazards and
environment,
fires, as well as to mitigate climate change,
forest
resources should be extended and improved by first
than
afforestation of
agricultural
land. Any first afforestation should be
adapted to local conditions and compatible with the
environment and enhance biodiversity.

land and other

agricultural

In order to ensure the targeted and efficient use of land
management support under this Regulation, Member
States should designate areas for intervention under
certain measures of this axis. Mountain areas and other
areas with handicaps should be designated on the basis of
objective common criteria. Therefore, Council Directives
and Decisions adopting lists of less favoured areas or
amending such lists in accordance with Article 21(2) and
(3) of Council Regulation (EC) No 950/97 of 20 May
1997 on improving the
agricultural
structures (1) should be repealed with effect at a later
date. Natura 2000 areas are designated in accordance
with Directives 79/409/EEC and 92/43/EEC. Member
States should designate areas suitable for afforestation for
such as protection against
environmental
erosion, prevention of natural hazards or extension of
forest resources contributing to climate change mitiga-
tion, and forest areas with a medium to high forest fire
risk.

efficiency of

reasons,

(39) Agri-forestry systems have a high ecological and social
value by combining extensive agriculture and forestry
systems, aimed at the production of high-quality wood
and other forest products. Their establishment should be
supported.

(45) A penalty system should be set up where beneficiaries
receiving payments under certain land management
measures do not meet
the mandatory requirements
provided for in Regulation (EC) No 1782/2003 on all of
their holding, taking into account the severity, extent,
permanence and repetition of non-compliance.

(40) Given the importance of

forests for

the successful
implementation of Directives 79/409/EEC and 92/43/
EEC, specific support should be granted to forest holders
to help address specific problems resulting from their
implementation.

(41) Forest-environment payments should be introduced for
voluntary commitments to enhance biodiversity, pre-
serve high-value forest ecosystems and reinforce the
protective value of forests with respect to soil erosion,
maintenance of water resources and water quality and to
natural hazards.

(42) Support

should be granted for

restoring forestry
potential in forests damaged by natural disasters and fire
and introducing preventive actions. Preventive actions
against fires should cover areas classified by Member
States as high or medium fire risk according to their
forest protection plans.

(46) There is a need to accompany changes in rural areas by
helping them to diversify farming activities towards non-
agricultural activities and develop non-agricultural sec-
tors, promote employment,
improve basic services,
including local access to Information and Communica-
investments
tion Technologies (ICTs) and carry out
making rural areas more attractive in order to reverse
trends
and
depopulation of the countryside. An effort to enhance
the human potential in this respect is also necessary.

and social decline

economic

towards

(47) Support should be granted for other measures relating to
the broader rural economy. The list of measures should
be defined on the basis of experience of the Leader
initiative and having regard to the multi-sectoral needs
for endogenous rural development.

(48) The implementation of local development strategies can
reinforce territorial coherence and synergies between
measures intended for the broader rural economy and
population. Therefore, measures relating to the broader
rural
economy should be preferably implemented
through local development strategies.

(43) Support should be granted to forest holders for non-
remunerative investments where they are necessary to
achieve the forest-environment commitments or other
environmental objectives, or in forests to enhance the
public amenity value of the areas concerned.

(1) OJ L 142, 2.6.1997, p. 1. Regulation repealed by Regulation (EC)

No 1257/1999.

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(49) There is a need to clearly define the principles of
coherence and complementarity of
the axis for the
improvement of the quality of life in rural areas and the
diversification of the rural economy with other Com-
munity financial instruments, and particularly with those
of cohesion policy.

(55) The annual appropriations allocated to a Member State
for the Convergence Objective under the Funds for the
part coming from the EAGGF Guidance Section, the
Structural Funds, the Cohesion Fund (hereinafter the CF)
and the Financial Instrument for Fisheries Guidance (2)
(hereinafter the FIFG) should be limited to a ceiling fixed
with regard to its capacity for absorption.

(50) The Leader initiative, after having experienced three
programming periods, has reached a level of maturity
enabling rural areas to implement the Leader approach
more widely in mainstream rural development program-
ming. Provision should therefore be made to transfer the
basic principles of
the Leader approach to the pro-
grammes building a specific axis in them, and provide a
definition of the local action groups and measures to be
supported, including partnership capacity, implementa-
local strategies, cooperation, networking and
tion of
acquisition of skills.

(56) For the indicative breakdown of commitment appro-
priations available to the Member States criteria should
be established according to an objective and transparent
method.

(57) Over and above these amounts the Member States should
take account of the amounts pursuant to Article 12(2) of
Regulation (EC) No 1290/2005.

(51) Given the importance of
substantial share of
should be earmarked for this axis.

the Leader approach, a
the EAFRD

the contribution of

(52) The EAFRD is to support through technical assistance
actions relating to the implementation of
the pro-
grammes. As part of the technical assistance referred to
in Article 5 of Council Regulation (EC) No 1290/2005 of
21 June 2005 on the financing of
the common
agricultural policy (1), a network for rural development
should be set up at Community level.

(53) Provisions on the allocation of the available resources
should be introduced. These
should be
consistent with the financial perspective for the period
2007 to 2013. The overall amount for rural development
should be allocated annually. Significant concentration
on the regions eligible under the Convergence Objective
should be allowed.

resources

(54) Provision should be made for the Council to determine
the amount for Community support to rural develop-
ment under this Regulation for the period from 1
January 2007 to 31 December 2013, its annual break-
down and the minimum amount to be concentrated in
regions eligible under the Convergence Objective in
accordance with the financial perspective for the period
2007 to 2013 and the Interinstitutional Agreement on
budgetary discipline and improvement of the budgetary
procedure for the same period.

(1) OJ L 209, 11.8.2005, p. 1.

(58) The appropriations available under the Funds should be

indexed on a flat-rate basis for programming.

(59) The rate of the EAFRD contribution to rural develop-
ment programming should be set in relation to public
expenditure in the Member States, taking account of the
importance of the priority given to land management
and environment, the situation in the regions eligible
under the Convergence Objective and the priority given
to the Leader approach.

(60)

In order to mitigate the specific constraints and structural
problems in farming and forestry activities and in adding
value to agricultural and forestry products as a result of
remoteness,
insularity or distant location and of the
dependency of the rural economy on a limited number of
agricultural products, and to promote a robust rural
development policy, specific provisions for certain rural
development measures, as well as appropriate co-
financing rates from the EAFRD should apply in the
outermost regions referred to in the Treaty and the
islands covered by Council Regulation (EEC) No 2019/93
of 19 July 1993 introducing specific measures for the
smaller Aegean islands concerning certain agricultural
products (3).

(61)

In accordance with the principle of subsidiarity and
subject to exceptions, there should be national rules on
the eligibility of expenditure.

(2)

Council Regulation (EC) No 1263/1999 of 21 June 1999 on the
Financial
for Fisheries Guidance (OJ L 161,
26.6.1999, p. 54).

Instrument

(3) OJ L 184, 27.7.1993, p. 1. Regulation as last amended by

Regulation (EC) No 1782/2003.

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(62) To ensure the effectiveness,

fairness and sustainable
impact of the assistance from the EAFRD, there should
be provisions guaranteeing that
investment-related
operations are durable and avoiding this fund being
used to introduce unfair competition.

(63) Decentralised implementation of the actions under the
EAFRD should be accompanied by guarantees relating in
particular to the quality of implementation, the results,
sound financial management and control.

(64) Member States should take measures to guarantee sound
functioning of management and control systems. To this
end, it is necessary to establish the general principles and
the basic functions which any management and control
system should ensure.
therefore necessary to
maintain the designation of a single Managing Authority
and to specify its responsibilities.

is

It

(65) Each rural development programme should be subject to
appropriate monitoring, by a Monitoring Committee, on
the basis of a common monitoring and evaluation
framework established and implemented in partnership
with the Member States, to effectively meet the specific
needs of rural development.

(66) The effectiveness and the impact of actions under the
EAFRD also depend on improved evaluation on the basis
of the common monitoring and evaluation framework.
In particular, the programmes should be evaluated for
their preparation, implementation and completion.

(67) To enable the partnership to function effectively and
promote Community action, information on it should be
publicised as widely as possible. The authorities mana-
ging the programmes have a responsibility in this respect.

(68) Rural development as defined in this Regulation should
support without

for Member

eligible

State

be

In view of

the economic
Community co-financing.
impact of such aid and in order to ensure consistency
with measures eligible for Community support and to
simplify procedures, specific State aid rules should be
established, also taking into account the experience from
the implementation of Regulation (EC) No 1257/1999.
Moreover, Member States should be authorised to grant
State aid, intended to provide additional financing for
rural development for which Community support is
granted, under a notification procedure in accordance
this Regulation as part of
with the provisions of
programming.

(69) There is a need to adopt rules to facilitate the transition
from the existing support scheme to the new rural
development support scheme.

(70) The new support scheme provided for in this Regulation
replaces the existing support scheme. Therefore, Regula-
tion (EC) No 1257/1999 should be repealed from 1
January 2007 with the exception of certain provisions
concerning less favoured areas which should be repealed
at a later date.

(71) The measures necessary for the implementation of this
Regulation should be adopted in accordance with
Council Decision 1999/468/EC of 28 June 1999 laying
down the procedures for the exercise of implementing
powers conferred on the Commission (1).

(72) The European Economic and Social Committee has

delivered an opinion (2).

(73) The Committee of the Regions has delivered an opinion

(3),

HAS ADOPTED THIS REGULATION:

TITLE I

OBJECTIVES AND GENERAL RULES ON ASSISTANCE

CHAPTER I

SCOPE AND DEFINITIONS

Article 1

Scope

This Regulation:

2)

3)

defines the Objectives to which rural development policy
is to contribute;

defines the strategic context
rural development
policy, including the method for fixing the Community

for

1)

lays down the general
rules governing Community
support for rural development, financed by the EAFRD,
established by Regulation (EC) No 1290/2005;

(1) OJ L 184, 17.7.1999, p. 23.
(2) Opinion of 9 March 2005 (not yet published in the Official

Journal).

(3) Opinion of 23 February 2005 (OJ C 164, 5.7.2005, p. 18).

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strategic guidelines for rural development policy (here-
inafter the Community strategic guidelines) and the
national strategy plans;

the Member States defining a limited number of
common indicators relating to the baseline situation
and the financial execution, outputs, results and impacts
of the programmes;

4)

5)

defines the priorities and measures for rural develop-
ment;

lays down rules on partnership, programming, evalua-
tion, financial management, monitoring and control on
the basis of responsibilities shared between the Member
States and the Commission.

Article 2

Definitions

For the purposes of this Regulation, the following definitions
shall apply:

(a)

(b)

‘programming’: the process of organisation, decision-
taking and financing in several stages intended to
implement, on a multiannual basis, the joint action by
the Community and the Member States to achieve the
priority goals of the EAFRD;

‘region’: territorial unit corresponding to level 1 or 2 of
the Nomenclature of territorial units for statistics (NUTS
level 1 and 2) within the meaning of Regulation (EC) No
1059/2003 of
the
Council of 26 May 2003 on the establishment of a
common classification of territorial units for statistics
(NUTS)

the European Parliament and of

(1);

(g)

(h)

(i)

‘local development strategy’: a coherent set of operations
to meet
local objectives and needs implemented in
partnership at the appropriate level;

‘beneficiary’: an operator, body or firm, whether public
or private, responsible for implementing operations or
receiving support;

‘public expenditure’: any public contribution to the
financing of operations whose origin is the budget of the
State, of regional and local authorities, of the European
Communities and any similar expenditure. Any con-
tribution to the financing of operations whose origin is
the budget of public law bodies or associations of one or
more regional or local authorities or public law bodies
within the meaning of Directive 2004/18/EC of
the
European Parliament and of the Council of 31 March
2004 on the coordination of procedures for the award of
public works contracts, public supply contracts and
public service contracts (2) shall be regarded as public
contribution;

(j)

‘Convergence Objective’: the objective of the action for
the least developed Member States and regions according
to the Community legislation governing the European
Regional Development Fund (hereinafter the ERDF), the
European Social Fund (hereinafter the ESF) and the CF for
the period from 1 January 2007 to 31 December 2013.

(c)

‘axis’: a coherent group of measures with specific goals
resulting directly from their implementation and con-
tributing to one or more of the objectives set out in
Article 4;

(d)

‘measure’: a set of operations contributing to the
implementation of an axis as referred to in Article 4(2);

(e)

‘operation’: a project, contract or arrangement, or other
action selected according to criteria laid down for the
rural development programme concerned and imple-
mented by one or more beneficiaries allowing achieve-
ment of the objectives set out in Article 4;

(f)

‘common monitoring and evaluation framework’: a
general approach developed by the Commission and

CHAPTER II

MISSIONS AND OBJECTIVES

Article 3

Missions

The EAFRD shall contribute to the promotion of sustainable
rural development throughout the Community in a comple-
mentary manner to the market and income support policies
of the common agricultural policy, to cohesion policy and to
the common fisheries policy.

(1) OJ L 154, 21.6.2003, p. 1.

(2) OJ L 134, 30.4.2004, p. 114.

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Article 4

Objectives

5. There shall also be consistency with the measures
financed by the European Agricultural Guarantee Fund.

Support

1.
achieving the following objectives:

rural development

for

shall contribute to

6. No support under this Regulation shall be granted to
schemes eligible for support under common market organisa-
tions,
in
accordance with the procedure referred to in Article 90(2).

to any exceptions yet

to be defined,

subject

(a)

improving the competitiveness of agriculture and forestry
by supporting restructuring, development and innova-
tion;

7. The Member States shall ensure that
the operations
financed by the EAFRD are in conformity with the Treaty and
any acts adopted under it.

(b)

improving the environment and the countryside by
supporting land management;

(c)

improving the quality of
encouraging diversification of economic activity.

life in rural areas and

Article 6

Partnership

2. The objectives
implemented by means of the four axes defined in Title IV.

in paragraph 1 shall be

set out

CHAPTER III

EAFRD assistance shall be implemented through close
1.
consultations (hereinafter partnership) between the Commis-
sion and the Member State and with the authorities and bodies
designated by the Member State under national rules and
practices, including:

PRINCIPLES OF ASSISTANCE

(a)

the competent
public authorities;

regional,

local authorities and other

Article 5

(b)

the economic and social partners;

Complementarity, consistency and conformity

1. The EAFRD shall complement national, regional and local
actions contributing to the Community’s priorities.

2. The Commission and the Member States shall ensure that
the assistance from the EAFRD and the Member States is
consistent with the activities, policies and priorities of the
Community. The assistance of the EAFRD shall be consistent
with the objectives of Economic and Social Cohesion and
those of the Community support instrument for fisheries in
particular.

3. This consistency shall be provided by the Community
strategic guidelines referred to in Article 9,
the national
strategy plan referred to in Article 11, the rural development
programmes referred to in Article 15 and the Commission
report referred to in Article 14.

(c)

any other appropriate body representing civil society,
non-governmental organisations, including environmen-
tal organisations, and bodies responsible for promoting
equality between men and women.

The Member State shall designate the most representative
partners at national, regional and local
level and in the
economic, social, environmental or other sphere (hereinafter
partners).
It shall create the conditions for a broad and
effective involvement of all appropriate bodies, in accordance
with national rules and practices, taking into account the need
to promote equality between men and women and sustainable
development through integration of environmental protection
and improvement requirements.

2. The partnership shall be conducted with due regard to the
respective institutional, legal and financial responsibilities of
each category of partner as defined under paragraph 1.

In accordance with their respective responsibilities, the
4.
Commission and the Member States
shall ensure the
coordination between the assistance from the different Funds,
the ERDF, the ESF, the CF, the Community support instrument
for fisheries, and the interventions of the European Investment
Bank (hereinafter the EIB), and of other Community financial
instruments.

the national

3. The partnership shall be involved in the preparation and
monitoring of
strategy plan and in the
preparation,
implementation, monitoring and evaluation of
the rural development programmes. Member States shall
involve all appropriate partners at the various programming
stages, due regard being had to the time limit set for each step.

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Article 7

Subsidiarity

Member States shall be responsible for implementing the rural
development programmes at the appropriate territorial level,
according to their own institutional
in
accordance with this Regulation.

arrangements,

Article 8

Equality between men and women and non-
discrimination

Member States and the Commission shall promote equality
between men and women and shall ensure that any
discrimination based on sex, racial or ethnic origin, religion
or belief, disability, age or sexual orientation is prevented
during the various stages of programme implementation.

This includes the stages of design, implementation, monitor-
ing and evaluation.

TITLE II

THE STRATEGIC APPROACH TO RURAL DEVELOPMENT

CHAPTER I

CHAPTER II

THE COMMUNITY STRATEGIC GUIDELINES

NATIONAL STRATEGY PLANS

Article 9

Content and adoption

Article 11

Content

1. The Council shall adopt Community strategic guidelines
for rural development policy for the programming period
from 1 January 2007 to 31 December 2013 in the light of the
policy priorities set at Community level.

Each Member State shall submit a national strategy plan
1.
indicating the priorities of the action of the EAFRD and of the
Member State concerned taking into account the Community
strategic guidelines, their specific objectives, the contribution
from the EAFRD and the other financial resources.

These strategic guidelines shall set at Community level the
strategic priorities for rural development for the programming
period with a view to implementing each of the axes laid
down in this Regulation.

2. By 20 February 2006, a decision on the Community
shall be adopted according to the
strategic guidelines
procedure laid down in Article 37 of the Treaty. The decision
shall be published in the Official Journal of the European Union.

Article 10

Review

2. The national strategy plan shall ensure that Community
aid for rural development is consistent with the Community
strategic guidelines and that Community, national and
regional priorities all coordinate. The national strategy plan
shall be a reference tool for preparing EAFRD programming. It
shall be
rural development
programmes.

implemented through the

3.

Each national strategy plan shall include:

(a)

an evaluation of the economic, social and environmental
situation and the potential for development;

With a view to taking account of major changes in the
Community priorities in particular, the Community strategic
guidelines may be subject to review.

(b)

the strategy chosen for joint action by the Community
and the Member State concerned, showing the consis-
tency of the choices made with the Community strategic
guidelines;

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the thematic and territorial priorities for rural develop-
ment under each axis,
including the main quantified
objectives and the appropriate monitoring and evalua-
tion indicators;

Commission a summary report setting out the progress made
in implementing its national strategy plan and objectives and
the Community
its contribution to the achievement of
strategic guidelines. The last
shall be
submitted no later than 1 October 2014.

summary report

(c)

(d)

(e)

a list of the rural development programmes implement-
ing the national strategy plan and an indicative EAFRD
allocation for each programme, including the amounts
provided for in Article 12(2) of Regulation (EC) No
1290/2005;

the means
to ensure coordination with the other
common agricultural policy instruments, the ERDF, the
ESF, the CF, the Community support instrument for
fisheries and the EIB;

(f)

if appropriate, the budget for achieving the Convergence
Objective;

(g)

a description of the arrangements and the indication of
the amount earmarked for establishing the national rural
network referred to in Articles 66(3) and 68.

Article 12

Preparation

2. The report shall summarise the previous years’ annual
progress reports referred to in Article 82 and shall describe in
particular:

(a)

the achievements and results of the rural development
programmes relative to the indicators set out in the
national strategy plan;

(b)

the results of the ongoing evaluation activities for each
programme.

3. By way of derogation from paragraph 1,
for single
programmes as referred to in Article 15(2) Member States may
include in the annual progress reports referred to in Article 82
the elements provided for in paragraph 2 of this Article within
the time limit set in Article 82.

Each Member State shall prepare a national strategy plan

1.
after the Community strategic guidelines are adopted.

Article 14

This plan shall be prepared in accordance with the Member
States’ institutional arrangements, following close collabora-
tion with the partners referred to in Article 6. It shall be drawn
up in close collaboration with the Commission and shall cover
the period from 1 January 2007 to 31 December 2013.

Each Member State shall

send the Commission its
2.
national strategy plan before submitting its rural development
programmes.

CHAPTER III

STRATEGIC MONITORING

Article 13

Summary reports by Member States

Commission report

1.
For the first time in 2011 and at the start of each second
year, the Commission shall present a report summarising the
main developments, trends and challenges relating to the
implementation of
strategy plans and the
Community strategic guidelines. The last Commission report
shall be presented at the start of 2015.

the national

This report shall be based on the Commission’s analysis and
appraisal of the Member States’ summary reports referred to
in Article 13 and any other available information. It shall
indicate the measures taken or to be taken by the Member
States and Commission in order to provide an appropriate
follow-up to the report’s conclusions.

For the first time in 2010 and no later than 1 October
1.
each second year, each Member State shall submit to the

2. The Commission report shall be sent to the European
Parliament, the Council, the European Economic and Social
Committee and the Committee of the Regions.

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TITLE III

PROGRAMMING

CHAPTER I

PROGRAMMING CONTENT

(c)

information on the axes and measures proposed for each
axis and their description, including the specific verifiable
objectives and indicators referred to in Article 81 that
allow the programme’s progress, efficiency and effective-
ness to be measured;

Article 15

(d)

a financing plan, comprising two tables:

Rural development programmes

1. The EAFRD shall act in the Member States through rural
development programmes. These programmes implement a
rural development strategy through a set of measures grouped
together in accordance with the axes defined in Title IV, for the
achievement of which aid from the EAFRD will be sought.

Each rural development programme shall cover a period
between 1 January 2007 and 31 December 2013.

2. A Member State may submit either a single programme
for its entire territory or a set of regional programmes.

— a table setting out, in accordance with Article 69(4)
and (5), the total EAFRD contribution planned for
each year. When applicable, this financing plan shall
indicate separately within the total EAFRD con-
tribution the appropriations provided for
the
regions eligible under the Convergence Objective.
The planned annual EAFRD contribution shall be
compatible with the Financial Perspectives;

— a table setting out

for the entire programming
period the total Community contribution planned
and the matching national public funding for each
axis, the EAFRD contribution rate for each axis and
the amount earmarked for
technical assistance.
When applicable,
this table shall also indicate
separately the planned EAFRD contribution for
the regions eligible under the Convergence Objec-
tive and the matching national public funding;

3. Member States with regional programmes may also
submit
framework containing
a national
common elements for these programmes.

approval

for

Article 16

Content of programmes

(e)

for information, an indicative breakdown of the initial
amounts by measure in terms of public and private
expenditure;

(f) where applicable, a table on additional national financing

per axis in accordance with Article 89;

Each rural development programme shall include:

(a)

an analysis of the situation in terms of strengths and
weaknesses, the strategy chosen to meet them and the ex
ante evaluation referred to in Article 85;

(g)

the elements needed for the appraisal under competition
rules and, when applicable,
the list of aid schemes
authorised under Articles 87, 88 and 89 of the Treaty to
be used for the implementation of the programmes;

(b)

a justification of the priorities chosen having regard to
the Community strategic guidelines and the national
strategy plan, as well as the expected impact according to
the ex ante evaluation;

(h)

information on the complementarity with the measures
financed by the other common agricultural policy
instruments, through cohesion policy as well as by the
Community support instrument for fisheries;

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(i)

programme implementing arrangements, including:

CHAPTER II

(i)

the designation by the Member State of all the
authorities provided for in Article 74(2) and for
information a summary description of the manage-
ment and control structure;

(ii)

a description of
systems, as well as
Monitoring Committee;

the monitoring and evaluation
the

composition of

the

(iii)

the provisions to ensure that the programme is
publicised;

(j)

the designation of the partners referred to in Article 6
and the results of the consultations of the partners.

Article 17

Balance between objectives

PREPARATION, APPROVAL AND REVIEW

Article 18

Preparation and approval

1. Rural development programmes shall be established by a
Member State following close cooperation with the partners
referred to in Article 6.

2. Member States
to the Commission a
submit
proposal for each rural development programme, containing
the information mentioned in Article 16.

shall

3. The Commission shall assess the proposed programmes
on the basis of their consistency with the Community strategic
guidelines, the national strategy plan and this Regulation.

Where the Commission considers that a rural development
programme is not consistent with the Community strategic
guidelines, the national strategy plan or this Regulation, it
shall
the Member State to revise the proposed
programme accordingly.

request

Each rural development programme shall be approved in

4.
accordance with the procedure referred to in Article 90(2).

1. The Community financial contribution to each of the
three objectives referred to in Article 4 shall cover at least
10 % of the EAFRD total contribution to the programme for
axis 1 and 3 referred to in Sections 1 and 3 respectively of
Chapter I of Title IV and at least 25 % of the EAFRD total
contribution to the programme for axis 2 referred to in
Section 2 of Chapter I of Title IV. For the programmes of the
French overseas departments,
the minimum Community
financial contribution for axis 2 shall be 10 %.

2. 5 % at least of the EAFRD total contribution to the
programme shall be reserved for axis 4 referred to in Section 4
of Chapter I of Title IV. This amount contributes to the
percentages laid down in paragraph 1. For the Czech Republic,
Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland,
Slovenia and Slovakia, the minimum Community financial
contribution for axis 4 of 5 % may be phased in over the
programming period in such a way that on average at least
2,5 % of the EAFRD total contribution is reserved for axis 4.

Article 19

Review

1. The rural development programmes shall be re-examined
and, if appropriate, adapted for the remainder of the period by
the Member State following Monitoring Committee approval.
The revisions
the outcome of
take into account
evaluations and the Commission’s reports, particularly with
a view to strengthening or adapting the way in which the
Community priorities are taken into account.

shall

2. The Commission shall adopt a decision on requests to
revise rural development programmes after the submission of
such a request by a Member State in accordance with the
procedure referred to in Article 90(2). Changes requiring
approval by Commission decision shall be defined in
accordance with the procedure referred to in Article 90(2).

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TITLE IV

RURAL DEVELOPMENT SUPPORT

CHAPTER I

AXES

SECTION 1

A x i s 1

I m p r o v i n g t h e c o m p e t i t i v e n e s s o f t h e
a g r i c u l t u r a l a n d f o r e s t r y s e c t o r

Article 20

Measures

Support targeting the competitiveness of the agricultural and
forestry sector shall concern:

(a) measures aimed at promoting knowledge and improving

human potential through:

(i)

vocational training and information actions, includ-
ing diffusion of scientific knowledge and innovative
practises, for persons engaged in the agricultural,
food and forestry sectors;

(ii)

setting up of young farmers;

(iii) early retirement of farmers and farm workers;

(iv) use of advisory services by farmers and forest

holders;

(v)

setting up of farm management, farm relief and
farm advisory services, as well as of
forestry
advisory services;

(ii)

improving the economic value of forests;

(iii) adding value to agricultural and forestry products;

(iv) cooperation for development of new products,
processes and technologies in the agriculture and
food sector and in the forestry sector;

(v)

improving and developing infrastructure related to
the development and adaptation of agriculture and
forestry;

(vi)

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

(c) measures aimed at improving the quality of agricultural

production and products by:

(i)

helping farmers to adapt to demanding standards
based on Community legislation;

(ii)

supporting farmers who participate in food quality
schemes;

(iii)

supporting producer groups for information and
promotion activities for products under food quality
schemes;

(d)

transitional measures for the Czech Republic, Estonia,
Cyprus, Latvia, Lithuania, Hungary, Malta, Poland,
Slovenia and Slovakia concerning:

(b) measures aimed at restructuring and developing physical

potential and promoting innovation through:

(i)

supporting semi-subsistence agricultural holdings
undergoing restructuring;

(i) modernisation of agricultural holdings;

(ii)

supporting setting up of producer groups.

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S U B S E C T I O N 1

10 years younger than the normal retirement age in the
Member State concerned at the time of the transfer;

C o n d i t i o n s f o r m e a s u r e s a i m e d a t p r o m o t i n g
k n o w l e d g e a n d i m p r o v i n g h u m a n p o t e n t i a l

(b)

stop all commercial farming activity definitively;

Article 21

Vocational training and information actions

(c)

have practised farming for
transfer.

the 10 years preceding

Support provided for in Article 20(a)(i) 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.

Article 22

Setting up of young farmers

Support provided for in Article 20(a)(ii), shall be granted

1.
to persons who:

(a)

are less than 40 years of age and are setting up for the
first time on an agricultural holding as head of the
holding;

(b) possess adequate occupational skills and competence;

(c)

submit a business plan for the development of their
farming activities.

2. The support shall be granted up to the maximum amount
laid down in the Annex

Article 23

Early retirement

3. The transferee shall:

(a)

succeed the transferor by setting up as provided for in
Article 22; or

(b) be a farmer of less than 50 years old or a private law
body and take over the agricultural holding released by
the transferor to increase the size of the agricultural
holding.

4. The farm worker shall:

(a)

be not less than 55 years old but not yet of normal
retirement age or not more than 10 years younger than
in the Member State
the normal
concerned;

retirement age

(b) have devoted at least half of his working time to farm
work, during the preceding five years, as a family helper
or farm worker;

(c)

have worked on the transferor’s agricultural holding for
at least the equivalent of two years full-time during the
four-year period preceding the early retirement of the
transferor;

1.

Support provided for in Article 20(a)(iii), shall be granted:

(d) belong to a social security scheme.

(a)

to farmers who decide to stop their agricultural activity
for the purpose of transferring the holdings to other
farmers;

5. The total duration of early retirement support shall not
exceed 15 years for the transferor and for the farm worker. It
shall not go beyond the 70th birthday of the transferor and
the normal retirement age of the farm worker.

(b)

to farm workers who decide to stop all
definitively upon the transfer of the holding.

farm work

2. The transferor shall:

Where, in the case of a transferor, a retirement pension is paid
by the Member State, early retirement support shall be granted
the
as a supplement taking into account the amount of
national retirement pension.

(a)

be not less than 55 years old but not yet of normal
retirement age at the time of transfer or not more than

6. The maximum eligible amount of support is laid down in
the Annex.

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Article 24

Use of advisory services

which are made in order to comply with newly introduced
Community standards. In that case, a period of grace, not
exceeding 36 months from the date on which the standard
becomes mandatory for the agricultural holding, may be
provided to meet that standard.

1.
Support provided for in Article 20(a)(iv) shall be granted
in order to help farmers and forest holders to meet costs
arising from the use of advisory services for the improvement
of the overall performance of their holding.

As a minimum the advisory service to farmers shall cover:

(a)

the statutory management requirements and the good
agricultural and environmental conditions provided for
in Articles 4 and 5 of and in Annexes III and IV to
Regulation (EC) No 1782/2003;

In the case of young farmers receiving support provided for in
Article 20(a)(ii), support may be granted for investments to
comply with existing Community standards, when identified
in the business plan referred to in Article 22(1)(c). The period
of grace within which the standard needs to be met, may not
exceed 36 months from the date of setting up.

Support shall be limited to the maximum rate laid down

2.
in the Annex.

(b) occupational safety standards based on Community

legislation.

Article 27

Support for the use of advisory services shall be limited to

2.
the maxima laid down in the Annex.

Article 25

Setting up of management, relief and advisory services

Support provided for in Article 20(a)(v) shall be granted in
order to cover costs arising from the setting up of farm
management, farm relief and farm advisory services as well as
forestry advisory services and shall be degressive over a
maximum period of five years from setting up.

S U B S E C T I O N 2

C o n d i t i o n s f o r m e a s u r e s a i m e d a t r e s t r u c t u r i n g
a n d d e v e l o p i n g p h y s i c a l p o t e n t i a l a n d
p r o m o t i n g i n n o v a t i o n

Article 26

Modernisation of agricultural holdings

Improvement of the economic value of forests

1.
Investment support provided for in Article 20(b)(ii) shall
be granted for forests owned by private owners or their
associations or by municipalities or their associations. This
limitation does not apply to the tropical or subtropical forests
and to the wooded areas of the territories of the Azores,
Madeira, the Canary Islands, the smaller Aegean Islands within
the meaning of Regulation (EEC) No 2019/93 and the French
overseas departments.

2.
Investments shall be based on forest management plans
for forest holdings above a certain size to be defined by the
Member States in their programmes.

Support shall be limited to the maximum rate laid down

3.
in the Annex.

Article 28

Adding value to agricultural and forestry products

Support provided for in Article 20(b)(i), shall be granted

1.
for tangible and/or intangible investments which:

Support provided for in Article 20(b)(iii), shall be granted

1.
for tangible and/or intangible investments which:

(a)

improve the overall performance of
holding; and

the agricultural

(a)

improve the overall performance of the enterprise;

(b)

respect
investment concerned.

the Community standards applicable to the

(b)

concern:

to comply with
Where investments are made in order
Community standards, support may be granted only to those

— the processing and/or marketing of products
covered by Annex I to the Treaty, except fishery
products, and of forestry products; and/or

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— the development of new products, processes and
technologies linked to products covered by Annex I
to the Treaty, except
fishery products, and to
forestry products; and

(c)

respect
investment concerned.

the Community standards applicable to the

Where investments are made in order to comply with
Community standards, support may be granted only to
those which are made by micro-enterprises, as referred in
paragraph 2, in order to comply with a newly introduced
Community standard. In that case a period of grace, not
exceeding 36 months from the date on which the
standard becomes mandatory for the enterprise, may be
provided to meet the standard.

Article 30

Infrastructure related to the development and adaptation
of agriculture and forestry

Support provided for in Article 20(b)(v), may cover notably
operations related to access to farm and forest land,
land
consolidation and improvement, energy supply and water
management.

S U B S E C T I O N 3

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

Support shall be limited to the maximum rate laid down

2.
in the Annex.

Article 31

3.
Support under paragraph 1 at its maximum rate shall be
limited to micro, small and medium- sized enterprises within
the meaning of Commission Recommendation 2003/361/EC
(1). For the territories of the Azores, Madeira, the Canary
Islands, the smaller Aegean Islands within the meaning of
Regulation (EEC) No 2019/93 and the French overseas
departments, no size limits apply for the maximum rate. For
enterprises that are not covered by Article 2(1) of
that
recommendation with less than 750 employees or with a turn
over of less than EUR 200 million the maximum aid intensity
is halved. In the case of forestry, support shall be limited to
micro-enterprises.

Support shall not be granted to enterprises in difficulty within
the meaning of the Community guidelines on State aid for
rescuing and restructuring firms in difficulty (2).

Article 29

Meeting standards based on Community legislation

Support provided for in Article 20(c)(i) shall contribute
1.
partly to costs incurred and income foregone caused to
farmers who have to apply standards in the fields of the
environmental protection, public health, animal and plant
health, animal welfare and occupational safety.

These standards must be newly introduced in national
legislation implementing Community law and impose new
obligations or restrictions to farming practice which have a
significant impact on typical farm operating costs and concern
a significant number of farmers.

2. The support shall be granted as a flat-rate, temporary and
degressive aid on an annual basis, for a maximum duration of
five years from the date the standard becomes mandatory in
accordance with Community legislation. Support shall be
limited to the maximum amount laid down in the Annex.

Cooperation for development of new products, processes
and technologies in the agriculture and food sector and in
the forestry sector

Article 32

1.
Support provided for in Article 20(b)(iv) shall be granted
to promote the cooperation between primary producers in
agriculture and forestry, the processing industry and/or third
parties.

Participation of farmers in food quality schemes

1.

Support provided for in Article 20(c)(ii) shall:

Support shall contribute to cover costs incurred for the

2.
cooperation.

(a)

cover agricultural products only intended for human
consumption;

(1) OJ L 124, 20.5.2003, p. 36.
(2) OJ C 244, 1.10.2004, p. 2.

(b) be for Community food quality schemes, or for those
recognised by the Member States which comply with
precise criteria to be defined in accordance with the
procedure referred to in Article 90(2); schemes whose

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

Article 35

Producer groups

(c)

be granted as an annual incentive payment whose level
shall be determined according to the level of the fixed
costs arising from participation in supported schemes,
for a maximum duration of five years.

Support provided for in Article 20(d)(ii) shall be granted
to facilitate the setting up and administrative

1.
in order
operation of producer groups for the purposes of:

Support shall be limited to the maximum amount laid

2.
down in the Annex.

(a)

adapting the production and output of producers who
are members of such groups to market requirements;

Article 33

(b)

jointly placing goods on the market, including prepara-
tion for sale, centralisation of sales and supply to bulk
buyers;

Information and promotion activities

(c)

establishing common rules on production information,
with particular regard to harvesting and availability.

shall concern
Support provided for
products covered by the support of
the quality schemes
referred to in Article 32. Support shall be limited to the
maximum rate laid down in the Annex.

in Article 20(c)(iii)

S u b s e c t i o n 4

C o n d i t i o n s f o r t r a n s i t i o n a l m e a s u r e s

Article 34

Semi-subsistence farming

Support provided for in Article 20(d)(i) to agricultural
1.
holdings which produce primarily for their own consumption
and also market a proportion of
(semi-
subsistence agricultural holdings) shall be granted to farmers
who submit a business plan.

their output

Progress in respect of the business plan referred to in

2.
paragraph 1 shall be assessed after three years.

2. The support shall be granted as a flat-rate aid in annual
instalments for the first five years following the date on which
the producer group was recognised. It shall be calculated on
the basis of the group’s annual marketed production, up to the
ceilings set in the Annex.

3. The support shall be granted to producer groups which
are officially recognised by the Member State’s competent
authority by 31 December 2013.

SECTION 2

A x i s 2

I m p r o v i n g t h e e n v i r o n m e n t a n d t h e
c o u n t r y s i d e

Article 36

Measures

3. The support shall be paid in the form of a flat-rate aid up
to the maximum amount specified in the Annex and for a
maximum of five years.

(a) measures targeting the sustainable use of agricultural

land through:

Support under this section shall concern:

4. The support shall be granted in respect of applications
approved by 31 December 2013.

(i)

natural handicap payments to farmers in mountain
areas;

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(ii) payments to farmers in areas with handicaps, other

S u b s e c t i o n 1

than mountain areas;

(iii) Natura 2000 payments and payments linked to

Directive 2000/60/EC;

Article 37

C o n d i t i o n s f o r m e a s u r e s t a r g e t i n g t h e

s u s t a i n a b l e u s e o f a g r i c u l t u r a l

l a n d

(iv) agri-environment payments;

(v)

animal welfare payments;

(vi)

support for non-productive investments;

(b) measures targeting the sustainable use of forestry land

through:

(i)

first afforestation of agricultural land;

(ii)

first establishment of agroforestry systems on
agricultural land;

(iii)

first afforestation of non-agricultural land;

Natural handicap payments in mountain areas and
payments in other areas with handicaps

1.
Payments provided for in Article 36(a)(i) and (ii) shall be
granted annually per hectare of utilised agricultural area
(hereinafter UAA) within the meaning of Commission
Decision 2000/115/EC of 24 November 1999 relating to the
the list of agricultural
definitions of
products, the exceptions to the definitions and the regions
and districts regarding the surveys on the structure of
agricultural holdings (1).

the characteristics,

Payments should compensate for farmers’ additional costs and
income forgone related to the handicap for agricultural
production in the area concerned.

2.
Payments shall be granted to farmers who undertake to
pursue their farming activity in areas designated pursuant to
Article 50(2) and (3) for at least five years from the first
payment.

Payments shall be fixed between the minimum and

3.
maximum amount laid down in the Annex.

Payments higher than the maximum amount may be granted
in duly justified cases provided that the average amount of all
these payments granted at the Member State level concerned
does not exceed this maximum amount.

Payments shall be degressive above a threshold level of

4.
area per holding, to be defined in the programme.

(iv) Natura 2000 payments;

Article 38

(v)

forest-environment payments;

Natura 2000 payments and payments linked to Directive
2000/60/EC

(vi)

restoring forestry potential and introducing preven-
tion actions;

1.
Support provided for in Article 36(a)(iii), shall be granted
annually and per hectare of UAA to farmers in order to
compensate for costs incurred and income foregone resulting

(vii) support for non-productive investments.

(1) OJ L 38, 12.2.2000, p. 1. Decision as last amended by
Regulation (EC) No 2139/2004 (OJ L 369, 16.12.2004, p. 26).

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from disadvantages in the areas concerned related to the
implementation of Directives 79/409/EEC, 92/43/EEC and
2000/60/EC.

Support may be provided for the conservation of genetic
5.
resources in agriculture for operations not covered by the
provisions under paragraphs 1 to 4.

2.
Support shall be limited to the maximum amount laid
down in the Annex. For payments linked to Directive 2000/
60/EC, detailed rules,
including the maximum amount of
support, shall be fixed in accordance with the procedure
referred to in Article 90(2).

Article 40

Animal welfare payments

Article 39

Agri-environment payments

1. Member States shall make available support provided for
in Article 36(a)(iv) throughout their territories, in accordance
with their specific needs.

1. Animal welfare payments provided for in Article 36(a)(v)
shall be granted to farmers who make on a voluntary basis
animal welfare commitments.

2. Animal welfare payments cover only those commitments
going beyond the relevant mandatory standards established
pursuant to Article 4 of and Annex III to Regulation (EC) No
relevant mandatory requirements
1782/2003 and other
legislation and identified in the
established by national
programme.

2. Agri-environment payments shall be granted to farmers
who make on a voluntary basis agri-environmental commit-
ments. Where duly justified to achieve
environmental
objectives, agri-environment payments may be granted to
other land managers.

These commitments shall be undertaken as a general rule for a
period between five and seven years. Where necessary and
justified, a longer period shall be determined according to the
procedure referred to in Article 90(2) for particular types of
commitments.

3. Agri-environment payments cover only those commit-
ments going beyond the relevant mandatory standards
established pursuant to Articles 4 and 5 of and Annexes III
and IV to Regulation (EC) No 1782/2003 as well as minimum
requirements for fertiliser and plant protection product use
and other relevant mandatory requirements established by
national legislation and identified in the programme.

These commitments shall be undertaken as a general rule for a
period between five and seven years. Where necessary and
justified, a longer period shall be determined according to the
procedure referred to in Article 90(2) for particular types of
commitments.

4. The payments shall be granted annually and shall cover
additional costs and income foregone resulting from the
commitment made. Where necessary, they may cover also
transaction cost.

3. The payments shall be granted annually and shall cover
additional costs and income foregone resulting from the
commitment made. Where necessary, they may cover also
transaction cost.

Support shall be limited to the maximum amount laid down
in the Annex.

Article 41

Non-productive investments

Support provided in Article 36(a)(vi) shall be granted for:

Where appropriate, the beneficiaries may be selected on the
basis of calls for tender, applying criteria of economic and
environmental efficiency.

(a)

investments linked to the achievement of commitments
undertaken pursuant to the measure provided for in
Article 36(a)(iv) or other agri-environmental objectives;

Support shall be limited to the maximum amount laid down
in the Annex.

(b) on-farm investments which enhance the public amenity
value of a Natura 2000 area or other high nature value
areas to be defined in the programme.

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S u b s e c t i o n 2

Support for the afforestation of agricultural land shall not

3.
be granted:

C o n d i t i o n s f o r m e a s u r e s t a r g e t i n g t h e
s u s t a i n a b l e u s e o f f o r e s t r y l a n d

(a)

for farmers benefiting from early retirement support;

Article 42

(b)

for the planting of Christmas trees.

General conditions

In the case of fast-growing species for short-term cultivation,
support for afforestation shall be granted for establishment
costs only.

Support under this subsection shall be granted only for
1.
forests and wooded areas owned by private owners or by their
associations or by municipalities or their associations. This
limitation does not apply to the tropical or subtropical forests
and to the wooded areas of the territories of the Azores,
Madeira, the Canary Islands, the smaller Aegean Islands within
the meaning of Regulation (EEC) No 2019/93 and the French
overseas departments.

4.
Support to farmers or other natural persons and private
law bodies shall be limited to the maxima laid down in the
Annex.

Article 44

This restriction shall not apply to the support provided for in
Article 36(b)(i), (iii), (vi) and (vii).

First establishment of agroforestry systems on
agricultural land

subsection in areas
this
2. Measures proposed under
classified as high or medium forest
fire risk within the
framework of the Community action on protection of forests
against fires shall conform to the forest protection plans
established by the Member States for those areas.

Support provided for in Article 36(b)(ii), shall be granted
1.
to farmers to create agroforestry systems combining extensive
agriculture and forestry systems. Support shall cover the
establishment costs.

Article 43

2. Agroforestry systems refer to land use systems in which
trees are grown in combination with agriculture on the same
land.

First afforestation of agricultural land

3. Christmas trees and fast-growing species for short-term
cultivation shall be excluded from support.

Support provided for in Article 36(b)(i), shall cover only

1.
one or more of the following:

Support shall be limited to the maximum rate laid down

4.
in the Annex.

(a)

establishment costs;

Article 45

(b)

(c)

an annual premium per hectare afforested to contribute
to covering maintenance costs for a maximum of five
years,

First afforestation of non-agricultural land

an annual premium per hectare to contribute to covering
income resulting from afforestation for a
loss of
maximum of 15 years for farmers or associations thereof
who worked the land before its afforestation or for any
other natural person or private law body.

2.
Support for the afforestation of agricultural land owned
by public authorities shall cover only the cost of establish-
ment. If the agricultural land to be afforested is rented by a
natural person or private law body, the annual premiums
referred to in paragraph 1 may be granted.

Support provided for in Article 36(b)(iii) for afforestation
1.
land not eligible under Article 36(b)(i) shall cover the
of
establishment costs.
In the case of abandoned farmland,
support shall also cover the annual premium as referred to in
Article 43(1)(b).

Support
2.
Christmas trees.

shall not be granted for

the planting of

3. When support covering establishment costs is granted to
natural persons or private law bodies, it shall be limited to the
maximum rate laid down in the Annex.

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Article 46

Article 49

Natura 2000 payments

Non-productive investments

Support provided for in Article 36(b)(iv), shall be granted
annually and per hectare of forest to private forest owners or
associations thereof in order to compensate for costs incurred
and income foregone resulting from the restrictions on the use
of forests and other wooded land due to the implementation
of Directives 79/409/EEC and 92/43/EEC in the area
concerned. Support shall be fixed between the minimum
and maximum amounts laid down in the Annex.

Support provided in Article 36(b)(vii), shall be granted for
investments in forests:

(a)

linked to the achievement of commitments undertaken
pursuant to the measure provided for in Article 36(b)(v),
or other environmental objectives;

Article 47

(b) which enhance the public amenity value of forest and

wooded land of the area concerned.

Forest-environment payments

S u b s e c t i o n 3

1.
Forest-environment payments provided for in Article 36
(b)(v), shall be granted per hectare of forest to beneficiaries
who make forest-environmental commitments on a voluntary
basis. These payments shall cover only those commitments
going beyond the relevant mandatory requirements.

These commitments shall be undertaken as a general rule for a
period between five and seven years. Where necessary and
justified, a longer period shall be determined in accordance
with the procedure referred to in Article 90(2) for particular
types of commitments.

2. The payments shall cover additional costs and income
foregone resulting from the commitment made. Support shall
be fixed between the minimum and maximum amounts laid
down in the Annex.

Article 48

Restoring forestry potential and introducing prevention
actions

1.
Support provided for in Article 36(b)(vi), shall be granted
for restoring forestry potential in forests damaged by natural
disasters and fire and for introducing appropriate prevention
actions.

D e s i g n a t i o n o f a r e a s

Article 50

Eligible areas

1. Member States shall designate the areas eligible for
payments provided for in Article 36(a)(i), (ii) and (iii) as well as
in Article 36(b)(i),
(iv) and (vi), taking into account
paragraphs 2 to 5 of this Article.

(iii),

2.
In order to be eligible for payments provided for in
Article 36(a)(i) mountain areas shall be characterised by a
considerable limitation of the possibilities for using the land
and an appreciable increase in the cost of working it due to:

(a)

the existence, because of altitude, of very difficult climatic
conditions, the effect of which is substantially to shorten
the growing season;

(b)

at a lower altitude, the presence over the greater part of
the area in question of slopes too steep for the use of
machinery or requiring the use of very expensive special
equipment, or a combination of these two factors, where
the handicap resulting from each taken separately is less
acute but the combination of the two gives rise to an
equivalent handicap.

Preventive actions against

2.
fires shall concern forests
classified by the Member States as high or medium forest fire
risk according to their forest protection plans.

Areas north of the 62nd parallel and certain adjacent areas
shall be regarded as mountain areas.

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In order to be eligible for payments provided for in
3.
Article 36(a)(ii), areas other than mountain areas referred to in
paragraph 2 of this Article must be:

Forest areas with a medium to high forest fire risk shall be
8.
eligible for payments provided for in Article 36(b)(vi) relating
to prevention actions against fires.

(a)

affected by significant natural handicaps, notably a low
soil productivity or poor climate conditions and where
maintaining extensive farming activity is important for
the management of the land; or

(b)

affected by specific handicaps, and where land manage-
ment should be continued in order to conserve or
improve the environment, maintain the countryside and
preserve the tourist potential of the area or in order to
protect the coastline.

(b),

As concerns areas affected by specific handicaps referred to in
they shall comprise farming areas which are
point
homogeneous from the point of view of natural production
conditions and their total extent shall not exceed 10 % of the
area of the Member State concerned.

4.
In the programmes, the Member States, according to
specific provisions to be defined in accordance with the
procedure referred to in Article 90(2), shall:

— confirm the existing delimitation pursuant to paragraphs

2 and 3(b) or amend it, or

S u b s e c t i o n 4

R e s p e c t o f s t a n d a r d s

Article 51

Reduction or exclusion from payments

1. Where beneficiaries receiving payments under Article 36
(a)(i) to (v) and Article 36(b)(i), (iv) and (v) do not respect on
the whole holding, as a result of an action or omission directly
attributable to them, the mandatory requirements provided for
in Articles 4 and 5 of and in Annexes III and IV to Regulation
(EC) No 1782/2003, the total amount of their payments to be
granted in the calendar year in which the non-compliance
occurs shall be reduced or cancelled.

The reduction or cancellation referred to in the first
subparagraph shall also apply in cases where the beneficiaries
receiving payments under Article 36(a)(iv) do not respect on
the whole holding, as a result of an action or omission directly
attributable to them, the minimum requirements for fertiliser
and plant protection product use referred to in Article 39(3).

— delimitate the areas referred to in paragraph 3(a).

2. The reduction or cancellation of payments referred to in
paragraph 1 shall not apply for standards for which a period
of grace has been granted in accordance with Article 26(1)(b)
during the period of grace.

5. Natura 2000 agricultural areas designated pursuant to
Directives 79/409/EEC and 92/43/EEC and agricultural areas
included in river basin management plans according to
Directive 2000/60/EC shall be eligible for payments provided
for in Article 36(a)(iii).

6. Areas apt for afforestation for environmental reasons such
as protection against erosion or extension of forest resources
contributing to climate change mitigation, shall be eligible for
payments provided for in Article 36(b)(i) and (iii).

3. By way of derogation from paragraph 1, for beneficiaries
in Member States applying the single area payment scheme as
provided for in Article 143b of Regulation (EC) No 1782/
2003, the mandatory requirements to be respected are those
provided for in Article 5 of and Annex IV to that Regulation.

4. Detailed rules for the reductions and exclusions shall be
laid down in accordance with the procedure referred to in
Article 90(2). In this context account shall be taken of the
severity, extent, permanence and repetition of non-compli-
ance.

7. Natura 2000 forest areas designated pursuant to Direc-
shall be eligible for
tives 79/409/EEC and 92/43/EEC,
payments provided for in Article 36(b)(iv).

5.

Paragraphs 1 to 4 shall not apply to Article 39(5).

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SECTION 3

A x i s 3

S u b s e c t i o n 1

C o n d i t i o n s g o v e r n i n g t h e m e a s u r e s t o d i v e r s i f y
t h e r u r a l e c o n o m y

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

Article 53

Article 52

Measures

Diversification into non-agricultural activities

The aid beneficiary referred to in Article 52(a)(i) shall be a
member of the farm household.

Article 54

Support under this section shall involve:

Support for business creation and development

(a) measures to diversify the rural economy, comprising:

The support provided for in Article 52(a)(ii) shall relate only to
micro-enterprises as defined in the Commission Recommen-
dation 2003/361/EC.

(i)

diversification into non-agricultural activities,

Article 55

(ii)

support for the creation and development of micro-
enterprises with a view to promoting entrepreneur-
ship and developing the economic fabric,

Encouragement of tourism activities

The support referred to in Article 52(a)(iii) shall cover the
following:

(iii) encouragement of tourism activities;

(a)

small-scale infrastructure such as information centres
and the signposting of tourist sites;

(b) measures to improve the quality of life in the rural areas,

comprising:

(b)

recreational infrastructure such as that offering access to
natural areas, and small-capacity accommodation;

(i)

basic services for the economy and rural popula-
tion,

(c)

the development and/or marketing of tourism services
relating to rural tourism.

(ii)

village renewal and development,

(iii) conservation and upgrading of the rural heritage;

S u b s e c t i o n 2

C o n d i t i o n s g o v e r n i n g t h e m e a s u r e s t o i m p r o v e
t h e q u a l i t y o f l i f e i n r u r a l a r e a s

Article 56

(c)

a training and information measure for economic actors
operating in the fields covered by axis 3;

Basic services for the economy and rural population

(d)

a skills-acquisition and animation measure with a view to
local development
preparing and implementing a
strategy.

The support referred to in Article 52(b)(i) shall cover the
setting up of basic services,
including cultural and leisure
activities, concerning a village or group of villages, and related
small-scale infrastructure.

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Article 57

S u b s e c t i o n 4

Conservation and upgrading of the rural heritage

I m p l e m e n t a t i o n o f t h e a x i s

The support referred to in Article 52(b)(iii) shall cover:

(a)

the drawing-up of protection and management plans
relating to Natura 2000 sites and other places of high
natural value, environmental awareness actions and
investments associated with maintenance, restoration
and upgrading of
the natural heritage and with the
development of high natural value sites;

(b)

studies and investments associated with maintenance,
restoration and upgrading of the cultural heritage such as
the cultural features of villages and the rural landscape.

S u b s e c t i o n 3

T r a i n i n g , s k i l l s a c q u i s i t i o n a n d a n i m a t i o n

Article 58

Training and information

Article 60

Demarcation

Where a measure falling within this section targets operations
eligible also under another Community support instrument,
including the Structural Funds and the Community support
instrument for fisheries, the Member State shall set in each
programme the demarcation criteria for
the operations
supported by the EAFRD and those supported by the other
Community support instrument.

SECTION 4

A x i s 4

L e a d e r

Article 61

Support under Article 52(c), shall not include courses of
instruction or training which form part of normal education
programmes or systems at secondary or higher levels.

Definition of the Leader approach

The Leader approach shall comprise at least the following
elements:

Article 59

Skills acquisition, animation and implementation

(a)

area-based local development strategies intended for
well-identified subregional rural territories;

The support referred to in Article 52(d) shall cover:

(b)

local public-private partnerships (hereinafter local action
groups);

(a)

studies of the area concerned;

(b) measures to provide information about the area and the

local development strategy;

(c)

bottom-up approach with a decision-making power for
local action groups concerning the elaboration and
implementation of local development strategies;

(c)

the training of staff involved in the preparation and
implementation of a local development strategy;

(d) multi-sectoral design and implementation of the strategy
based on the interaction between actors and projects of
different sectors of the local economy;

(d) promotional events and the training of leaders;

(e)

implementation of innovative approaches;

(e)

implementation by public-private partnerships other
than those defined by Article 62(1)(b) of
the local
development strategy encompassing one or more of the
measures under Article 52(a), (b) and (c).

(f)

implementation of cooperation projects;

(g) networking of local partnerships.

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Article 62

Local action groups

Article 63

Measures

1. A partnered local development approach shall be
implemented by the local action groups
satisfying the
following conditions:

The support granted under the Leader axis shall be for:

(a)

(b)

they must propose an integrated local development
strategy based at least on the elements set out in Article
61(a)
its
implementation;

to (d) and (g) and be responsible for

(a)

implementing local development strategies as referred to
in Article 62(1)(a), with a view to achieving the objectives
of one or more of
the three other axes defined in
Sections 1, 2 and 3;

they must consist of either a group already qualified for
the Leader II (1) or Leader+ (2) initiatives, or according to
the Leader approach, or be a new group representing
partners from the various locally based socioeconomic
sectors in the territory concerned. At
the decision-
making level the economic and social partners, as well as
other representatives of the civil society, such as farmers,
rural women, young people and their associations, must
make up at least 50 % of the local partnership;

(b)

implementing cooperation projects involving the objec-
tives selected under point (a);

(c)

running the local action group, acquiring skills and
animating the territory as referred to in Article 59.

(c)

they must show an ability to define and implement a
development strategy for the area.

2. The Managing Authority shall ensure that the local action
groups either select an administrative and financial lead actor
able to administer public funds and ensure the satisfactory
operation of the partnership, or come together in a legally
constituted common structure the constitution of which
guarantees the satisfactory operation of the partnership and
the ability to administer public funds.

3. The area covered by the strategy shall be coherent and
offer sufficient critical mass in terms of human, financial and
economic resources to support a viable development strategy.

4. The local action groups shall choose the projects to be
financed under the strategy. They may also select cooperation
projects.

(1)

(2)

Commission notice to the Member States
laying down
guidelines for global grants or integrated operational pro-
grammes for which Member States are invited to submit
applications for assistance in the framework of a Community
initiative for rural development (Leader II) (OJ C 180, 1.7.1994,
p. 48).
Commission notice to the Member States of 14 April 2000
laying down guidelines for the Community initiative for rural
development (Leader+) (OJ C 139, 18.5.2000, p. 5). Notice as
last amended by Commission communication amending the
notice to the Member States of 14 April 2000 laying down
guidelines for the Community Initiative for rural development
(Leader+) (OJ C 294, 4.12.2003, p. 11).

Article 64

Implementing local strategies

If the operations under the local strategy correspond to the
measures defined in this Regulation for the other axes, the
relevant conditions shall apply in accordance with Sections 1,
2 and 3.

Article 65

Cooperation

1. The support referred to in Article 63(b) shall be granted
to inter-territorial or transnational cooperation projects.

‘Inter-territorial cooperation’ means cooperation within a
Member State. ‘Transnational cooperation’ means cooperation
between territories
in several Member States and with
territories in third countries.

2. Only expenditure relating to the territories within the
Community shall be eligible for support.

3. Article 64 shall also apply to cooperation projects.

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CHAPTER II

TECHNICAL ASSISTANCE

Article 66

administrations active in the field of rural development at
Community level shall be put in place in accordance with
Article 66(1).

The aims of the Network shall be to:

Funding technical assistance

(a)

collect, analyse and disseminate information on Com-
munity rural development measures;

the EAFRD may use up to 0,25 % of

1.
In accordance with Article 5 of Regulation (EC) No 1290/
its annual
2005,
allocation to finance the preparatory, monitoring, adminis-
trative support, evaluation and control measures, at
the
Commission’s initiative and/or on its behalf. These actions
shall be carried out in accordance with Article 53(2) of
Council Regulation (EC, Euratom) No 1605/2002 of 25 June
2002 on the Financial Regulation applicable to the general
(1) and any other
budget of
provisions of
implementing
its
provisions applicable to this form of execution of the budget.

the European Communities
that Regulation and of

(b)

collect, disseminate and consolidate at Community level
good rural development practice;

(c)

provide information on developments in the Commu-
nity’s rural areas and in third countries;

(d) organise meetings and seminars at Community level for

those actively involved in rural development;

2. At the initiative of the Member States, for each rural
development programme, the EAFRD may finance prepara-
tion, management, monitoring, evaluation, information and
control activities of programme assistance.

(e)

set up and run expert networks with a view to facilitating
an exchange of expertise and supporting implementation
and evaluation of the rural development policy;

Up to 4 % of the total amount for each programme may be
devoted to these activities.

(f)

support the national networks and transnational coop-
eration initiatives.

3. Within the limit set out in paragraph 2, an amount shall
be reserved for establishing and operating the national rural
network referred to in Article 68.

Member States with regional programmes may submit for
approval a specific programme for the establishment and the
operation of their national rural network.

Details concerning the establishment and the operation of the
national rural network shall be fixed in accordance with the
procedure referred to in Article 90(2).

Article 67

Article 68

National rural network

1.
rural
Each Member State shall establish a national
network, which groups the organisations and administrations
involved in rural development.

2. The amount referred to in Article 66(3) first subpara-
graph shall be used:

European Network for Rural Development

(a)

for the structures needed to run the network;

A European Network for Rural Development
networking

for
organisations

networks,

national

of

(1) OJ L 248, 16.9.2002, p. 1.

(b)

the
and

for an action plan containing at least the identification
and analysis of good transferable practices and the
provision of information about them, network manage-
ment, the organisation of exchanges of experience and
know-how, the preparation of training programmes for
local action groups in the process of formation and
technical assistance for inter-territorial and transnational
cooperation.

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TITLE V

EAFRD CONTRIBUTION

Article 69

Resources and their distribution

1. The amount for Community support to rural develop-
ment under this Regulation for the period from 1 January
2007 to 31 December 2013, its annual breakdown and the
minimum amount to be concentrated in regions eligible under
the Convergence Objective shall be fixed by the Council,
acting by a qualified majority on a proposal
from the
Commission, in accordance with the financial perspective for
the period 2007 to 2013 and the Interinstitutional Agreement
on budgetary discipline and improvement of the budgetary
procedure for the same period.

2. 0,25 % of the resources referred to in paragraph 1 shall be
devoted to technical assistance for the Commission as referred
to in Article 66(1).

3.
For the purpose of their programming and subsequent
inclusion in the general budget of the European Communities,
the amounts referred to in paragraph 1 shall be indexed at 2 %
per year.

4. The Commission shall make an annual breakdown by
Member State of the amounts referred to in paragraph 1, after
deduction of the amount referred to in paragraph 2, and
taking into account:

(a)

the amounts reserved for regions eligible under the
Convergence Objective;

(b) past performance; and

(c)

particular
criteria.

situations and needs based on objective

5.
In addition to the amounts referred to in paragraph 4, the
Member States shall take into account for the purpose of
programming the amounts resulting from modulation as
provided for in Article 12(2) of Regulation (EC) No 1290/
2005.

6. The Commission shall ensure that total annual allocations
from the EAFRD originating from the EAGGF Guidance
Section for any Member State pursuant to this Regulation, and
from the ERDF,
the ESF and the CF, according to the
Community legislation laying down general provisions
governing these Funds for the period from 1 January 2007
to 31 December 2013, including the contribution of ERDF

according to the Community legislation governing the
European Neighbourhood Instrument, from the Instrument
for Pre-Accession, according to the Community legislation
governing that instrument, and from the part of the FIFG
contributing to the Convergence Objective, shall not exceed
4 % of that Member State’s GDP as estimated at the time of the
adoption of the Interinstitutional Agreement on budgetary
discipline and improvement of the budgetary procedure.

Article 70

Fund contribution

1. The Decision adopting a rural development programme
shall set the maximum contribution from the EAFRD for each
axis within a flexibility threshold to be defined in accordance
with the procedure referred to in Article 90(2). The decision
the appropriations
shall clearly identify, where necessary,
allocated to the regions eligible under
the Convergence
Objective.

2. The EAFRD contribution shall be calculated on the basis
of the amount of eligible public expenditure.

3. The EAFRD contribution rate shall be established for each
axis.

(a)

In the case of axis 1 (competitiveness) and axis 3
life) as well as for the
(diversification and quality of
technical assistance according to Article 66(2)
the
following ceilings shall apply respectively:

(i)

75 % of
regions eligible under the Convergence Objective;

the eligible public expenditure in the

(ii) 50 % of the eligible public expenditure in the other

regions.

(b)

In the case of axis 2 (improving the environment and the
countryside) and axis 4 (Leader) the following ceilings
shall apply respectively:

(i)

80 % of
regions eligible under the Convergence Objective;

the eligible public expenditure in the

(ii) 55 % of the eligible public expenditure in the other

regions.

The minimum EAFRD contribution rate at axis level shall be
20 %.

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4. Notwithstanding the ceilings set out in paragraph 3, the
EAFRD contribution may be increased to 85 % for
the
programmes of the outermost regions and the smaller Aegean
Islands within the meaning of Regulation (EEC) No 2019/93.

5.
For Member States opting for a specific programme
pursuant to Article 66(3), second subparagraph, the ceiling of
the EAFRD contribution shall be 50 % of the eligible public
expenditure.

The following costs are not eligible for a EAFRD contribution:

referred to in Article 4(5),

(a) VAT, except non-recoverable VAT when it is genuinely
and definitively borne by beneficiaries other than non
first
taxable persons
subparagraph of the Sixth Council Directive 77/388/
EEC of 17 May 1977 on the harmonisation of the laws of
taxes —
the Member States
Common system of value added tax: uniform basis of
assessment

relating to turnover

(1);

6. Technical assistance measures taken at the initiative of the
Commission or on its behalf may be funded at 100 %.

(b)

interest on debt, without prejudice to paragraph 5;

7. An expenditure co-financed by the EAFRD shall not be
co-financed by way of a contribution from the Structural
Funds, the CF or any other Community financial instrument.

(c)

the purchase of land costing more than 10 % of all the
eligible expenditure on the operation concerned.
In
exceptional and duly justified cases, a higher percentage
can be fixed for operations concerning environmental
conservation.

the rural
It may be co-financed under only one axis of
development programme. Where an operation falls under
measures from more than one axis, the expenditure shall be
attributed to the dominant axis.

8.
Public expenditure on aid to enterprises shall comply with
the aid limits laid down in respect of State aid, unless this
Regulation provides otherwise.

4.

Paragraphs 1 to 3 shall not apply to Article 66(1).

5. Notwithstanding paragraph 3(b) the contribution from
the EAFRD may be made in a form other than a non-repayable
direct assistance. Detailed rules shall be defined in accordance
with the procedure referred to in Article 90(2).

Article 71

Eligibility of expenditure

1. Without prejudice to Article 39(1) of Regulation (EC) No
1290/2005, expenditure shall be eligible for a EAFRD
contribution if the relevant aid is actually paid by the paying
agency between 1 January 2007 and 31 December 2015. Co-
financed operations should not be completed before the
eligibility starting date.

A new expenditure added at the moment of the modification
of a programme referred to in Article 19, shall be eligible from
the date of the reception by the Commission of the request for
modification of the programme.

2.
Expenditure shall be eligible for a EAFRD contribution
only where incurred for operations decided on by the
Managing Authority of the programme in question or under
its responsibility, in accordance with the selection criteria fixed
by the competent body.

Article 72

Durability of investment-related operations

1. Without prejudice to the rules relating to the freedom of
establishment and the free provision of services within the
meaning of Articles 43 and 49 of the Treaty, the Member State
shall ensure that an investment operation retains the EAFRD
contribution if that operation does not, within five years of
the Managing Authority’s
funding decision, undergo a
substantial modification that:

(a)

affects its nature or implementation conditions or gives
undue advantage to a firm or public body;

(b)

results either from a change in the nature of ownership of
an item of infrastructure, or the cessation or relocation
of a productive activity.

2. Amounts unduly paid out
recovered in
accordance with Article 33 of Regulation (EC) No 1290/2005.

shall be

3. The rules on eligibility of expenditure shall be set at
national level, subject to the special conditions laid down by
this Regulation for certain rural development measures.

(1) OJ L 145, 13.6.1977, p. 1. Directive as last amended by Directive

2004/66/EC (OJ L 168, 1.5.2004, p. 35).

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TITLE VI

MANAGEMENT, CONTROL AND INFORMATION

CHAPTER I

MANAGEMENT AND CONTROL

Article 73

Responsibilities of the Commission

4. Member States shall undertake controls in accordance
with detailed implementing rules fixed in accordance with the
procedure referred to in Article 90(2), notably regarding the
type and intensity of controls, adapted to the nature of the
different rural development measures.

Article 75

Managing Authority

To ensure,
in the context of shared management, sound
financial management in accordance with Article 274 of the
Treaty, the Commission shall carry out the measures and
controls laid down in Article 9(2) of Regulation (EC) No
1290/2005.

1. The Managing Authority shall be responsible for mana-
ging and implementing the programme in an efficient,
effective and correct way and in particular for:

Article 74

(a)

ensuring that operations are selected for funding in
accordance with the criteria applicable to the rural
development programme;

Responsibilities of the Member States

1. Member States shall adopt all the legislative, statutory and
administrative provisions in accordance with Article 9(1) of
Regulation (EC) No 1290/2005 in order to ensure that the
Community’s financial interests are effectively protected.

2. Member States shall designate, for each rural development
programme, the following authorities:

(a)

the Managing Authority, which may be either a public or
private body acting at national or regional level, or the
Member State itself when it carries out that task, to be in
charge of the management of the programme concerned;

(b)

ensuring that there is a system to record and maintain
statistical
information on implementation in compu-
terised form adequate for the purposes of monitoring
and evaluation;

(c)

ensuring that beneficiaries and other bodies involved in
the implementation of operations:

(i)

are informed of their obligations resulting from the
aid granted,
separate
and maintain either
accounting system or an adequate accounting code
for all transactions relating to the operation,

a

(b)

the accredited paying agency within the meaning of
Article 6 of Regulation (EC) No 1290/2005;

(ii)

the requirements concerning the
are aware of
provision of data to the Managing Authority and
the recording of outputs and results;

(c)

the certifying body within the meaning of Article 7 of
Regulation (EC) No 1290/2005.

(d)

3. Member States shall ensure for each rural development
programme that the relevant management and control system
has been set up ensuring a clear allocation and separation of
functions between the Managing Authority and other bodies.
Member States shall be responsible for ensuring that the
the programme
systems
period.

function effectively throughout

ensuring that programme evaluations are conducted
within the time limits laid down in this Regulation and
conform to the common monitoring and evaluation
framework and for submitting evaluations undertaken to
the relevant national authorities and the Commission;

(e)

leading the Monitoring Committee and sending it the
documents needed to monitor implementation of the
programme in the light of its specific objectives;

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(f)

(g)

(h)

ensuring compliance with the obligations concerning
publicity referred to in Article 76;

drawing up the annual progress
report and, after
approval by the Monitoring Committee, submitting it
to the Commission;

ensuring that the paying agency receives all necessary
information,
in particular on the procedures operated
and any controls carried out in relation to operations
selected for funding, before payments are authorised.

2. When a part of its tasks is delegated to another body, the
Managing Authority shall retain full responsibility for the
efficiency and correctness of management and implementa-
tion of those tasks.

CHAPTER II

INFORMATION AND PUBLICITY

Article 76

Information and publicity

1. Member States shall provide information on and publicise
national strategy plans, rural development programmes and
the Community contribution.

This information shall be aimed at the general public. It shall
spotlight
the Community and ensure the
the role of
transparency of EAFRD assistance.

2. The Managing Authority for the programme shall be
responsible for its publicity as follows:

(a)

(b)

(c)

shall

inform potential beneficiaries, professional
it
organisations, the economic and social partners, bodies
involved in promoting equality between men and
women and the non-governmental organisations con-
cerned,
including environmental organisations, of the
possibilities offered by the programme and the rules for
gaining access to programme funding;

it shall
contribution;

inform the beneficiaries of

the Community

it shall inform the general public about the role played by
the Community in the programmes and the results
thereof.

TITLE VII

MONITORING AND EVALUATION

CHAPTER I

MONITORING

Article 77

Monitoring Committee

Each Monitoring Committee shall be chaired by a
the Managing
the Member State or of

2.
representative of
Authority.

Its composition shall be decided by the Member State and
shall include the partners referred to in Article 6(1).

For each rural development programme a Monitoring
1.
Committee shall be set up within a maximum of three months
following the decision approving the programme.

At
their own initiative, Commission representatives may
participate in the work of the Monitoring Committee in an
advisory capacity.

Each Monitoring Committee shall draw up its rules of
procedure within the institutional, legal and financial frame-
work of the Member State concerned and adopt them in
agreement with the Managing Authority in order to perform
its duties in accordance with this Regulation.

3. Member States with regional programmes may establish a
national Monitoring Committee to coordinate the implemen-
tation of these programmes in relation to the national strategy
and the uptake of financial resources.

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Article 78

limited number of common indicators applicable to each
programme.

Responsibilities of the Monitoring Committee

The Monitoring Committee shall satisfy itself as to the
effectiveness of the implementation of the rural development
programme. To that end, the Monitoring Committee:

Article 81

Indicators

shall be consulted, within four months of the decision
approving the programme, on the selection criteria for
financed operations. The selection criteria shall be revised
according to programming needs;

efficiency and effectiveness of

1. The progress,
rural
development programmes in relation to their objectives shall
be measured by means of indicators relating to the baseline
situation as well as to the financial execution, outputs, results
and impact of the programmes.

(a)

(b)

(c)

(d)

shall periodically review progress made towards achiev-
ing the specific targets of the programme, on the basis of
the documents submitted by the Managing Authority;

shall examine the results of implementation, particularly
achievement of the targets set for each axis and ongoing
evaluations;

shall consider and approve the annual progress report
and the last progress report before they are sent to the
Commission;

(e) may propose to the Managing Authority any adjustment
or review of the programme aimed at achieving the
the EAFRD defined in Article 4 or
Objectives of
improving its management,
financial
management;

including its

(f)

shall consider and approve any proposal to amend the
content of the Commission decision on the contribution
from the EAFRD.

Article 79

Monitoring procedures

1. The Managing Authority and the Monitoring Committee
shall monitor the quality of programme implementation.

2. The Managing Authority and the Monitoring Committee
shall carry out monitoring of each rural development
programme by means of
financial, output and result
indicators.

Article 80

Common monitoring and evaluation framework

The common monitoring and evaluation framework shall be
drawn up in cooperation between the Commission and the
Member States and adopted in accordance with the procedure
referred to in Article 90(2). The framework shall specify a

Each rural development programme shall

2.
limited number of additional
programme.

specify a
indicators specific to that

3. Where the nature of the assistance so permits, the data
relating to the indicators shall be broken down by sex and age
of the beneficiaries.

Article 82

Annual progress report

1.
For the first time in 2008 and by 30 June each year, the
Managing Authority shall send the Commission an annual
progress report on the implementation of the programme.
The Managing Authority shall send a last progress report on
the implementation of the programme to the Commission by
30 June 2016.

Each annual progress report shall contain the following

2.
elements:

(a)

(b)

(c)

any change to the general conditions having a direct
impact on the conditions for implementing the pro-
gramme as well as any change to Community and
national policies affecting consistency between the
EAFRD and other financial instruments;

the progress of
objectives
indicators;

the programme in relation to the
set, on the basis of output and result

the financial implementation of the programme giving,
for each measure, a statement of the expenditure paid to
beneficiaries; if the programme covers regions eligible
under the Convergence Objective, expenditure shall be
identified separately;

(d)

a summary of
accordance with Article 86(3);

the ongoing evaluation activities in

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(e)

the steps taken by the Managing Authority and the
Monitoring Committee to ensure the quality and
effectiveness of programme implementation, in particu-
lar:

Article 83

Annual examination of programmes

(i) monitoring and evaluation measures;

1.
Each year, on presentation of the annual progress report,
the Commission and the Managing Authority shall examine
the main results of the previous year,
in accordance with
procedures to be determined in agreement with the Member
State and Managing Authority concerned.

(ii)

a summary of the major problems encountered in
managing the programme and any measures taken,
including in response to comments made under
Article 83;

2.
Following that examination the Commission may make
comments
to the Member State and to the Managing
inform the Monitoring Committee
Authority, which will
thereof. The Member State shall inform the Commission of
action taken in response to those comments.

(iii) use of technical assistance;

(iv)

steps taken to ensure that
publicised in accordance with Article 76;

the programme is

(f)

a declaration on compliance with Community policies in
the context of the support, including identification of the
problems encountered and the measures adopted to deal
with them;

(g) where applicable, re-utilisation of aid recovered under

Article 33 of Regulation (EC) No 1290/2005.

3. The report shall be judged admissible with a view to
applying Article 26 of Regulation (EC) No 1290/2005 if it
contains all the elements listed in paragraph 2 and enables
programme implementation to be appraised.

The Commission shall have two months to comment on the
annual progress report after it has been sent by the Managing
Authority. That time limit shall be increased to five months for
the last report of the programme. If the Commission does not
respond within the time limit set, the report shall be deemed
accepted.

CHAPTER II

EVALUATION

Article 84

General provisions

1. Rural development programmes shall be subject to ex
ante, mid-term and ex post evaluations in accordance with
Articles 85, 86 and 87.

2. The evaluations
shall aim to improve the quality,
efficiency and effectiveness of the implementation of rural
development programmes. They shall assess the impact of the
programmes as
the
Community provided for
rural
development problems specific to the Member States and
regions concerned, taking into account sustainable develop-
ment requirements and environmental impact, meeting the
requirements of relevant Community legislation.

the strategic guidelines of
in Article 9 and the

regards

3. The evaluation shall be organised, as appropriate, under
the responsibility of either Member States or the Commission.

4. The evaluations referred to in paragraph 1 shall be carried
out by independent evaluators. The results shall be made
available subject to Regulation (EC) No 1049/2001 of the
European Parliament and of the Council of 30 May 2001
regarding public access to European Parliament, Council and
Commission documents (1).

5. Member States shall provide the human and financial
resources necessary for carrying out the evaluations, shall
organise the production and gathering of the requisite data,
and shall use the various pieces of information provided by
the monitoring system.

4. Details concerning annual progress reports for specific
to Article 66(3) shall be fixed in
programmes pursuant
accordance with the procedure referred to in Article 90(2).

(1) OJ L 145, 31.5.2001, p. 43.

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6. Member States and the Commission shall agree evalua-
tion methods and standards to be applied at the initiative of
the Commission within the framework provided for in Article
80.

Committee. A summary of the activities shall be included in
the annual progress report provided for in Article 82.

Article 85

Ex ante evaluation

1.
Ex ante evaluation shall form part of drawing up each
rural development programme and aim to optimise the
allocation of budgetary resources and improve programming
quality. It shall identify and appraise medium and long-term
needs, the goals to be achieved, the results expected, the
quantified targets particularly in terms of impact in relation to
the baseline situation, the Community value-added, the extent
to which the Community’s priorities have been taken into
account, the lessons drawn from previous programming and
the quality of the procedures for implementation, monitoring,
evaluation and financial management.

Ex ante evaluation shall be carried out under

2.
responsibility of the Member State.

the

Article 86

Mid-term and ex post evaluation

1. Member States shall establish a system of ongoing
evaluation for each rural development programme.

2. The Managing Authority for the programme and the
Monitoring Committee shall use ongoing evaluation to:

(a)

examine the progress of the programme in relation to its
goals by means of result and, where appropriate, impact
indicators;

In 2010, ongoing evaluation shall take the form of a
4.
separate mid-term evaluation report. That mid-term evalua-
tion shall propose measures to improve the quality of
programmes and their implementation.

A summary of
undertaken on the initiative of the Commission.

the mid-term evaluation reports shall be

In 2015, ongoing evaluation shall take the form of a

5.
separate ex post evaluation report.

resources,
the programming of

6. The mid-term and ex post evaluations shall examine the
the effectiveness and
degree of utilisation of
efficiency of
its socio-
the EAFRD,
economic impact and its impact on the Community priorities.
They shall cover the goals of the programme and aim to draw
lessons concerning rural development policy. They shall
identify the factors which contributed to the success or failure
of
including as regards
implementation,
sustainability, and identify best practice.

the programmes’

7. Ongoing evaluation shall be organised on the initiative of
the Managing Authorities in cooperation with the Commis-
sion. It shall be organised on a multiannual basis and cover the
period 2007-2015.

8. The Commission shall organise measures on its initiative
to provide training, exchanges of best practice and informa-
tion for ongoing evaluators, experts in the Member States and
Monitoring Committee members, as well as thematic and
summary evaluations.

Article 87

(b)

improve the quality of programmes and their imple-
mentation;

Summary of ex post evaluations

(c)

examine proposals for substantive changes to pro-
grammes;

(d) prepare for mid-term and ex post evaluation.

1. A summary of ex post evaluations shall be made, under
the responsibility of the Commission, in cooperation with the
Member State and the Managing Authority, which shall gather
the data required for its completion.

From 2008, the Managing Authority shall report each
3.
year on the ongoing evaluation activities to the Monitoring

2. The summary of ex post evaluations shall be completed at
the latest by 31 December 2016.

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TITLE VIII

STATE AID

Article 88

Application of the rules to State aid

Save as otherwise provided in this Title, Articles 87, 88
rural
the Treaty shall apply to support

1.
and 89 of
development by Member States.

for

farmers who enter

State aid to support

4.
into agri-
environmental or animal welfare commitments which fail to
satisfy the conditions laid down in Articles 39 and 40
respectively shall be prohibited. However, additional aid
exceeding maximum amounts set in the Annex, as regards
Articles 39(4) and 40(3), may be granted if duly justified. In
exceptional cases, duly justified derogation may be permitted
in respect of the minimum duration of those commitments as
laid down in Articles 39(3) and 40(2).

However, Articles 87, 88 and 89 of the Treaty shall not apply
to financial contributions provided by Member States as
counterpart of Community support for rural development
within the scope of Article 36 of the Treaty in accordance
with this Regulation.

2. Aid for modernisation of agricultural holdings which
exceeds the percentages set in the Annex, as regards Article 26
(2), shall be prohibited. This prohibition shall not apply to aid
for investments relating to:

(a)

investments undertaken predominantly in the public
interest and related to the conservation of traditional
landscapes shaped by agricultural and forestry activities
or to the relocation of farm buildings;

5.
State aid to support farmers who adapt to demanding
standards based on Community legislation in the fields of the
environmental protection, public health, animal and plant
health, animal welfare and occupational safety shall be
prohibited if it does not satisfy the conditions laid down in
Article 31. However, additional aid exceeding the maximum
amounts fixed in accordance with that Article may be granted
to help farmers to comply with national
legislation which
exceeds Community standards.

6.
In the absence of Community legislation, State aid to
support farmers who adapt to demanding standards based on
national legislation in the fields of the environment, public
health, animal and plant health, animal welfare and occupa-
tional safety shall be prohibited if it does not satisfy the
conditions laid down in Article 31. Additional aid exceeding
the maximum amounts set in the Annex, as regards Article 31
(2), may be granted if justified under Article 31.

(b)

the protection and improvement of the environment;

Article 89

(c)

improvement of
livestock
undertakings and animal welfare and those with regard
to occupational safety at the workplace.

the hygiene conditions of

Additional national financing

State aid granted to farmers to compensate for natural
3.
in mountain areas and in other areas with
handicaps
handicaps shall be prohibited if
it does not satisfy the
conditions laid down in Article 37. However, additional aid
exceeding amounts fixed according to Article 37(3) may be
granted in duly justified cases.

State aid intended to provide additional financing for rural
development for which Community support is granted, shall
be notified by Member States and approved by the
Commission in accordance with this Regulation as part of
the programming referred to in Article 16. The first sentence
of Article 88(3) of the Treaty shall not apply to aid thus
notified.

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TITLE IX

TRANSITIONAL AND FINAL PROVISIONS

Article 90

Committee

2.
Such measures shall in particular be adopted to integrate
existing Community support approved by the Commission
from either the EAGGF Guidance or Guarantee section for a
period ending after 1 January 2007 into the rural develop-
ment support provided for by this Regulation and to cover ex
post evaluations of the programmes of the period 2000-2006.

1. The Commission shall be assisted by the Rural Develop-
ment Committee (hereinafter the Committee).

2. Where reference is made to this paragraph, Articles 4 and
7 of Decision 1999/468/EC shall apply.

The period laid down in Article 4(3) of Decision 1999/468/EC
shall be set at one month.

3. The Committee shall adopt its Rules of Procedure.

Article 91

Article 93

Repeal

1. Regulation (EC) No 1257/1999 shall be repealed with
effect from 1 January 2007 with the exception of Articles 13
(a), 14(1) and the first two indents of Article 14(2), 15, 17 to
20, 51(3) and 55(4) and the part of Annex I which specifies
the amounts under Article 15(3). These provisions shall be
repealed with effect from 1 January 2010, subject to an act of
the Council adopted in accordance with the procedure laid
down in Article 37 of the Treaty.

Implementing rules

References made to the repealed Regulation shall be construed
as being made to this Regulation.

Over and above the measures set out in particular provisions
of this Regulation, detailed rules shall be adopted for the
implementation of this Regulation in accordance with the
procedure referred to in Article 90(2). They shall cover in
particular:

Regulation (EC) No 1257/1999 shall continue to apply to
actions approved by the Commission under that Regulation
before 1 January 2007.

(a)

the presentation of proposed rural development pro-
grammes;

(b)

the conditions governing rural development measures.

laying down and
2. Council Directives and Decisions
amending the lists of less favoured areas adopted pursuant
to Article 21(2) of Regulation (EC) No 950/97 are hereby
repealed with effect from 1 January 2010, subject to an act of
the Council adopted in accordance with the procedure laid
down in Article 37 of the Treaty.

Article 92

Transitional provisions

Article 94

Entry into force

1.
Should specific measures be necessary to facilitate the
transition from the system in force to that established by this
Regulation, such measures shall be adopted in accordance
with the procedure referred to in Article 90(2).

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

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shall apply to Community support concerning the
It
programming period starting on 1 January 2007. However,
this Regulation shall not apply before the entry into force of
the Community legislation laying down general provisions
governing the ERDF, the ESF and the CF, for the period from 1
January 2007 to 31 December 2013, with the exception of
Articles 9, 90, 91 and 92, which shall apply from the entry
into force of this Regulation.

Notwithstanding the second subparagraph, Articles 37, 50(2)
to (4) and 88(3) shall apply from 1 January 2010, subject to an
act of the Council adopted in accordance with the procedure
laid down in Article 37 of the Treaty.

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

Done at Brussels, 20 September 2005.

For the Council

The President

M. BECKETT

L 277/38

EN

Official Journal of the European Union

21.10.2005

ANNEX

AMOUNTS AND RATES OF SUPPORT

Article

Subject

Amount in EUR
or rate

Setting up support (*)

55 000

Early retirement

18 000

Per transferor per year

22(2)

23(6)

24(2)

Advisory services

180 000

Total amount per transferor

4 000

40 000

80 %

Per worker per year

Total amount per worker

Of the eligible cost per advisory
service

1 500

Maximum eligible amount

26(2)

Intensity of aid for the modernisa-
tion of agricultural holdings

60 %

50 %

50 %

40 %

75 %

75 %

60 % (**)

50 %

85 % (**)

27(3)

Intensity of aid for the improve-
ment of the economic value of
forests

Of the amount of eligible investment
by young farmers in the areas
referred to in Article 36(a)(i), (ii) and
(iii)

Of the amount of eligible investment
by other farmers in the areas
referred to in Article 36(a)(i), (ii) and
(iii)

Of the amount of eligible investment
by young farmers in other areas

Of the amount of eligible investment
by other farmers in other areas

Of the amount of eligible investment
in the outermost regions and the
smaller Aegean Islands within the
meaning of Regulation (EEC)
No 2019/93

Of the amount of eligible investment
in the Member States which acceded
to the Community on 1 May 2004,
for the implementation of Council
Directive 91/676/EEC (1) within a
maximum period of four years from
the date of Accession pursuant to
Articles 3(2) and 5(1) of that
Directive

Of the amount of eligible investment
in the areas referred to in Article 36
(a)(i), (ii) and (iii)

Of the amount of eligible investment
in other areas

Of the amount of eligible investment
in the outermost regions

21.10.2005

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Official Journal of the European Union

L 277/39

Article

Subject

Amount in EUR
or rate

28(2)

Intensity of aid for adding value to
agricultural and forestry products

50 %

40 %

75 %

65 %

Of the amount of eligible investment
in regions eligible under the Con-
vergence Objective

Of the amount of eligible investment
in other regions

Of the amount of eligible investment
in the outermost regions

Of the amount of eligible investment
in the smaller Aegean Islands within
the meaning of Regulation (EEC)
No 2019/93

31(2)

32(2)

33

34(3)

35(2)

Maximum amount of support for
meeting standards

10 000

Per holding

Maximum amount of support for
participation in food quality
schemes

3 000

Per holding

Intensity of aid for information and
promotion activities

70 %

Maximum amount for semi-subsis-
tence agricultural holdings

1 500

Of the eligible cost of the action

Per agricultural holding per year

Producer groups: ceiling, as a
percentage of marketed production
during the first five years following
recognition

5 %, 5 %, 4 %, 3 %,
and 2 % (***)

For the 1st, 2nd, 3rd, 4th and 5th
year respectively for marketed pro-
duction up to EUR 1 000 000

2,5 %, 2,5 %,
2,0 %, 1,5 %
and 1,5 %

For the 1st, 2nd, 3rd, 4th and 5th
year respectively for marketed pro-
duction exceeding EUR 1 000 000

But not exceeding in respect of each
of the first five years the amount of

37(3)

Minimum handicap payment

38(2)

Maximum handicap payment for
mountain areas

Maximum payment for areas with
other handicaps

Initial maximum Natura 2000
payment for a period not exceeding
five years

Normal maximum Natura 2000
payment

39(4)

Annual crops

Specialised perennial crops

Other land uses

Local breeds in danger of being lost
to farming

100 000
100 000
80 000
60 000
50 000

25

250

150

For the 1st year
For the 2nd year
For the 3rd year
For the 4th year
For the 5th year

Per hectare of UAA

Per hectare of UAA

Per hectare of UAA

500 (****)

Per hectare of UAA

200 (****)

Per hectare of UAA

600 (****)

900 (****)

450 (****)

200 (****)

Per hectare

Per hectare

Per hectare

Per livestock unit

40(3)

Animal welfare

500

Per livestock unit

L 277/40

EN

Official Journal of the European Union

21.10.2005

Article

Subject

Amount in EUR
or rate

43(4)

43(4), 44(4) and 45
(3)

Maximum annual premium to
cover loss of income from affor-
estation
— for farmers or associations

thereof

— for any other natural persons
or private-law bodies
— Intensity of aid for establish-

ment costs

700

150

80 % (**)

70 %
85 % (**)

Per hectare

Per hectare

Of eligible costs in the areas referred
to in Article 36(a)(i), (ii) and (iii)
Of eligible costs in other areas
Of eligible costs in the outermost
regions

46 and 47(2)

Natura 2000 and forest-environ-
ment annual payment
— minimum payment
— maximum payment

40
200 (****)

Per hectare
Per hectare

(1)

(*)

Council Directive 91/676/EEC of 12 December 1991 concerning the protection of waters against pollution
caused by nitrates from agricultural sources (OJ L 375, 31.12.1991, p. 1).
The setting up support may be given in the form of a single premium up to a maximum of EUR 40 000, or in
the form of an interest rate subsidy, the capitalised value of which may not exceed EUR 40 000. For both forms
of support combined, the maximum may not exceed EUR 55 000.

(**) Not applicable in the case of State owned tropical οr subtropical forests and wooded areas of the territories of
the Azores, Madeira, the Canary Islands, the smaller Aegean Islands within the meaning of Regulation (EEC)
No 2019/93 and the French overseas departments.
In the case of Malta, the Commission may set a minimum amount of aid for sectors of production in which
total output is extremely small.

(***)

(****) These amounts may be increased in exceptional cases taking account of specific circumstances to be justified in

the rural development programmes.