Commission Regulation (EC) No 1974/2006 of 15 December 2006 laying down detailed rules for the application of Council Regulation (EC) No 1698/2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD)
Date: 2006-12-15
Institutions: European Commission
Subjects: EU financing arrangements, agri-environmental plan, aid to agriculture, fund (EU), policy on agricultural structures, rural development

23.12.2006

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L 368/15

COMMISSION REGULATION (EC) No 1974/2006

of 15 December 2006

laying down detailed rules for the application of Council Regulation (EC) No 1698/2005 on support
for rural development by the European Agricultural Fund for Rural Development (EAFRD)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty
Community,

establishing the European

particular on the requirements set out in Article 16 of
Regulation (EC) No 1698/2005. Moreover,
specific
provisions should be established for national frameworks
referred to in Article 15(3) of Regulation (EC) No
1698/2005.

Having regard to Council Regulation (EC) No 1698/2005 of 20
for rural development by the
September 2005 on support
European
Rural Development
(EAFRD) (1) and in particular Article 5(6), the second sentence
of Article 19(2), Article 32(1)(b), the third subparagraph of
Article 66(3), Article 70(1), and Article 91 thereof,

Agricultural

Fund

For

Whereas:

(1)

(2)

(3)

(4)

(5)

Regulation (EC) No 1698/2005 established a single legal
framework for the EAFRD support for rural development
throughout the Community. The legal framework should
be complemented by detailed implementing rules.

for

for

the exceptions

As regards consistency with measures financed by other
instruments of the Common Agricultural Policy, detailed
provisions
rural development
support should be defined, notably those concerning
the exceptions referred to in Article 5(6) of Regulation
(EC) No 1698/2005. Rural development
investment
support should take account of any sectoral limitations
or restrictions and avoid creating overcapacities in the
sectors concerned.

There is a need to provide rules for updates of national
strategy plans
in terms of content, procedures and
timing.

In order to allow the Member States and the Commission
to put in place the new programming framework quickly
and efficiently, the deadlines between the submission of
rural development programmes and their approval by the
Commission should be specified.

Detailed rules should be laid down for the presentation
of rural development programmes and their revision. In
order to facilitate the establishment of rural development
programmes and their examination and approval by the
Commission, common rules should be laid down for the
structure and content of those programmes, based in

(6)

(7)

(8)

(9)

changes

involving significant

in
Only amendments
programmes,
shifts of EAFRD funding among axes
within a programme and changes to the EAFRD co-
financing rates should be adopted by a Commission
Decision. Other amendments should be decided by the
Member States and notified to the Commission. A
procedure should be established for agreement on such
notifications.

To ensure effective and regular monitoring, the Member
States should make available to the Commission a conso-
their
lidated
programming documents.

electronic

updated

version

and

of

fulfilled should be

Regulation (EC) No 1698/2005 lays down conditions for
to young farmers. The time by which those
support
conditions must be
specified,
including the duration of
the period that Member
to certain beneficiaries in which to
States may grant
comply with the occupational skills and competence
condition. Since support to young farmers is subject to
the condition that a business plan is submitted by the
young farmer, detailed rules should be laid down as
regards
its
the business plan and the respect
provisions by the young farmer.

for

As regards the conditions for early retirement support,
specific problems arising where a holding is transferred
by several transferors or by a tenant farmer should be
solved. The non-commercial
the
transferor should not be eligible for support under the
Common Agricultural Policy.

farming activity of

(10)

The skills and resources required from the authorities and
bodies selected for providing the farm advisory services
eligible for support should be specified.

(1) OJ L 277, 21.10.2005, p. 1. Regulation as amended by Regulation

(EC) No 1463/2006 (OJ L 277, 9.10.2006, p. 1).

(11) As regards support for the setting up of management,
the methodology for the

relief and advisory services,
degressivity of support should be established.

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(12) As regards investments for the modernisation of agri-
cultural holdings
to comply with newly
in order
introduced Community standards, and in cases where
young farmers are to comply with existing standards, a
date should be fixed for compliance with the relevant
standards.

detailed requirements for support for the promotion of
in particular as
quality products should be laid down,
In addition,
regards beneficiaries and eligible activities.
in order to avoid the risk of double financing,
infor-
mation and promotion measures supported under Regu-
lation (EC) No 2826/2000 should not be eligible for
rural development support.

the
the improvement of
(13) As regards investments for
economic value of
forest management plans
forests,
should be defined and the types of eligible investments
should be set out. Those plans should be prepared in
accordance with the Pan-European Operational Level
Guidelines for Sustainable Forest Management established
in Annex 2 of Resolution L2 (Pan-European Criteria,
Indicators
for
Sustainable Forest Management) of the Third Ministerial
Conference on the Protection of Forests in Europe held in
Lisbon (2, 3 and 4 June 1998) (2).

and Operational

Level Guidelines

(14) As regards investments for adding value to agricultural
and forestry products in order to comply with newly
introduced Community standards in micro-enterprises, a
date should be fixed for compliance with the relevant
standards. A demarcation line should be set for wood-
related investments benefiting from the rates of support
established by Regulation (EC) No 1698/2005 from
other investments in the wood sector.

(15) As regards cooperation for the development of new
products, processes and technologies in the agriculture
and food sector and in the forestry sector,
indicative
eligible costs should be defined.

(19) As regards support

the
content of the business plans and the conditions for
their implementation should be specified.

for semi-subsistence farming,

(20) As regards support to producer groups in Malta, specific
rules should be laid down to take into account
the
specific characteristics of the Maltese agricultural sector.

(21) As regards support to less-favoured areas, in accordance
with Article 93 of Regulation (EC) No 1698/2005, the
support system put in place by Council Regulation (EC)
No 1257/1999 of 17 May 1999 on support for rural
development from the European Agricultural Guidance
and amending and
and Guarantee
Fund (EAGGF)
repealing certain Regulations (4)
is to remain in force
the
to an act of
until 31 December 2009, subject
Council adopted in accordance with the procedure laid
down in Article 37 of the Treaty. Therefore, Article 11 of
Commission Regulation (EC) No 817/2004 of 29 April
2004 laying down detailed rules for the application of
Council Regulation (EC) No 1257/1999 on support for
from the European Agricultural
rural development
Fund (EAGGF) (5)
should
Guidance
remain applicable until such act
is adopted by the
Council.

and Guarantee

(16) As regards meeting standards, the level of support to
farmers should be modulated by the Member State per
standard with regard to the level of obligations resulting
from the application of the standard, while investment
costs should not be eligible for support.

(22)

Provision should be made to avoid overlapping between
the meeting standards support to farmers on the one
hand, and the Natura 2000 payments on the other.

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

(18)

to ensure

complementarity between the
In order
promotion measures referred to in Article 33 of Regu-
lation (EC) No 1698/2005 and the rules concerning
established by
information and promotion actions
Council Regulation
of 19
(EC) No
December 2000 on information and promotion actions
for agricultural products on the internal market (3),

2826/2000

(23) As regards support

commitments

for agri-environment and animal
welfare, the minimum requirements to be met by bene-
ficiaries in connection with the various agri-environment
and animal welfare
should ensure a
balanced application of support that takes account of
the objectives and should thus contribute to sustainable
rural development. In this respect, establishing a metho-
dology for the calculation of the additional costs, income
foregone and likely transaction costs stemming from the
commitment given should be of high importance. Where
limitations, support
commitments are based on input
should be granted only if
such limitations can be
assessed in a way providing reasonable assurance about
the respect of the commitment.

(4) OJ L 160, 26.6.1999, p. 80. Regulation as last amended by Regu-

lation (EC) No 1698/2005.

(2) http://www.mcpfe.org/mcpfe/resolutions/lisbon/resolution_l2a2.pdf
(3) OJ L 328, 23.12.2000, p. 2. Regulation as amended by Regulation

(EC) No 2060/2004 (OJ L 357, 2.12.2004, p. 3).

(5) OJ L 153, 30.4.2004, p. 30; corrected version (OJ L 231, 30.6.2004,
p. 24). Regulation as amended by Regulation (EC) No 1360/2005
(OJ L 214, 19.8.2005, p. 55).

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(24)

for

the conservation of genetic
Concerning support
resources in agriculture, details of the eligible operations
and a description of the beneficiaries should be provided.
Provision should be made to avoid overlapping with agri-
environment and to exclude from support activities
which are eligible under the framework programme for
research, technological development and demonstration
activities.

(25) Non-productive investments targeting the sustainable use

of agricultural land should be defined.

(26)

In order to ensure a homogenous approach for forestry
measures it is necessary to use a common definition of
forests and wooded areas as appropriate. This definition
should be in line with the definition used by the Food
and Agriculture Organisation of
the United Nations
(FAO) and by Eurostat, as applied for the Global Forest
Resources Assessment Update in 2005. The forests and
wooded areas not eligible for support under Article 42(1)
of Regulation (EC) No 1698/2005 should be defined in
more detail.

household referred to in Article 53 of that Regulation
should be provided.

(32)

The support for public-private partnerships, as provided
for in Article 59(e) of Regulation (EC) No 1698/2005,
should comply with certain detailed conditions.

(33) As regards the Leader Axis, the selection procedures of
local action groups should be transparent and compe-
titive to ensure that pertinent and high quality devel-
opment strategies at local level are selected for support.
Depending on the local conditions, minimum and
maximum thresholds should be set as a general rule
for the population of the areas covered by the local
action groups.

(34)

To allow the largest possible implementation of the local
development strategies, support for the running costs of
the local action groups should be limited.

(27) Detailed conditions should be laid down for support for
the first afforestation of agricultural land, in particular in
relation to the definition of land to be afforested, of the
the fast-
establishment costs, of
growing species.

the farmer and of

(35)

Cooperation projects implemented by local action groups
should comply with certain conditions. A coordinated
procedure
the
Commission and the Member States to facilitate the
selection of transnational cooperation projects.

established

between

should

be

(28) As regards support to agricultural land subject to the first
establishment of agroforestry systems, the Member States
should define maximum densities of plantation of forest
trees taking into account certain parameters.

(29) As regards support for restoring forestry potential and
preventive actions in forests classified as at high or
medium risk of forest fires, it should be conditional on
conformity with forest fire protection plans established
by the Member States. A common approach should be
ensured for the definition of preventive actions against
forest fires.

(30) As regards the areas designated in Article 50(5) and (6)
of Regulation (EC) No 1698/2005, the conditions for
their designation should be specified. Care should be
taken to avoid afforestation harmful to the biodiversity
or causing other environmental damage.

(31)

In order to allow an appropriate uptake of the measure
for diversification into non-agricultural activities referred
to in Article 52(a)(i) of Regulation (EC) No 1698/2005 a
comprehensive definition of the member of the farm

(36) As

for
regions

technical
rural
eligible

co-financing
regards
programmes
arrangements
covering
the Convergence
Objective and other regions, as well as detailed options
and a deadline for the establishment of the national rural
network should be provided.

assistance,
development
under

(37)

investments measures,

Rules common to several measures should be laid down,
in particular regarding the implementation of integrated
operations,
the transfer of a
holding during the period for which a commitment is
given as a condition for the grant of assistance,
the
increase of the area of the holding and the definition
force majeure or exceptional
of different categories of
circumstances.

States

(38) Member States should take all the necessary steps and
put in place adequate provisions to ensure that all rural
development measures are verifiable and controllable.
Member
control
arrangements give reasonable assurance that eligibility
In
criteria
commitments
certain
particular,
measures, Member
the
adequacy and accuracy of the calculations through appro-
priate expertise.

are
calculations
should

for
substantiate

and other
for

payment
States

respected.

should

ensure

their

that

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applicable. The

(39) Detailed rules should be laid down on interest rate
subsidies for loans and certain forms of financial engi-
neering, where
conditions which
managing authorities may apply to standard costs and
consider contributions in kind as eligible expenditure
should also be laid down in order to ensure efficient
and homogenous management.
In order to ensure a
better
investment operations, a set of
common rules for the definition of eligible expenditure
should be made available. Common rules should also be
necessary in cases where the competent authorities of the
Member State decide to pay advances to beneficiaries of
investment support.

targeting of

(45)

The new implementing rules should replace those laid
down for
application of Regulation (EC) No
1257/1999. Therefore, Regulation (EC) No 817/2004
should be repealed from 1 January 2007.

the

(46)

The measures provided for in this Regulation are in
accordance with the opinion of the Rural Development
Committee,

HAS ADOPTED THIS REGULATION:

(40)

(41)

(42)

In order to ensure compliance with State aid rules and
procedures, specific provisions should be laid down for
certain co-financed measures by the EAFRD and for addi-
tional national financing.

CHAPTER I

Scope

Article 1

development

To ensure information and publicity on the rural devel-
opment activities benefiting from support by the EARDF,
rural
a
programmes
communication plan, the content of which should be
specified. The obligations of managing authorities and
beneficiaries should be defined in this respect in order
to ensure the most coherent approach.

include

should

In order to enhance transparency regarding the use of the
EAFRD assistance, the list of beneficiaries, the names of
the operations and the amount of public funding
allocated to operations should be published annually by
Member States electronically or by other means. Making
such information accessible to the public aims
to
improve the transparency of the Community's action in
the area of rural development, to enhance the sound
financial management of the public funds involved and
in particular to reinforce control of the public money
used, and finally to avoid distortion of competition
between beneficiaries of rural development measures.
Given the overriding weight of the objectives pursued it
is justified, with regard to the principle of proportionality
and the requirement of the protection of personal data,
to provide for the general publication of the relevant
information as it does not go beyond what is necessary
in a democratic society for the prevention of irregula-
rities.

This Regulation lays down detailed rules for the application of
regards principles and
Regulation (EC) No 1698/2005 as
general
specific and
support,
rural development
common provisions for rural development measures, and elig-
ibility and administrative provisions, except provisions on
controls.

rules

for

CHAPTER II

General rules

S e c t i o n 1

C o m p l e m e n t a r i t y , c o n s i s t e n c y a n d
c o n f o r m i t y

Article 2

Consistency as referred to in Article 5 of Regulation (EC)

1.
No 1698/2005 shall be ensured:

(a) between rural development support measures on the one
hand, and measures implemented under other Community
imple-
support
instruments and in particular measures
mented under direct and other support schemes of
the
Common Agricultural Policy and animal and plant health
measures, on the other hand;

(b) between the different rural development support measures.

(43) As regards monitoring, details of the annual progress
report provided for in Article 82 of Regulation (EC) No
1698/2005, as well as of the common indicators making
and Evaluation
part of
Framework referred to in Article 80 of that Regulation,
should be defined.

the Common Monitoring

2. Where support under Regulation (EC) No 1698/2005 may
exceptionally be granted in accordance with Article 5(6) of that
Regulation, for measures falling within the scope of the support
schemes listed in Annex I to this Regulation, Member States
shall ensure that a beneficiary may receive support for a given
operation only under one scheme.

(44)

In order to ensure a secure electronic exchange of data
between the Commission and the Member States, an
information system should be established. The contents
and functioning of that system and the access rights to
the system should be defined.

such exceptions

end, Member States, when including measures
To that
containing
development
in their
programmes, shall describe in those programmes the criteria
and administrative rules
the support
schemes concerned.

they will apply for

rural

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schemes

financed by

including direct
3. Where a common market organisation,
support
the European Agricultural
Guarantee Fund (EAGF) places restrictions on production or
limitations on Community support at the level of individual
farmers, holdings or processing plants, no investment shall be
supported under Regulation (EC) No 1698/2005 which would
increase production beyond those restrictions or limitations.

S e c t i o n 2

S t r a t e g y a n d p r o g r a m m i n g

Article 3

strategy

National

1.
in the
plans may
programming period. For such updates one or both of the
following elements shall be taken into account:

updated

be

(a)

the update affects one or more of the elements listed in
Article 11(3) of Regulation (EC) No 1698/2005 and/or
one or more of
the Community strategic guidelines
referred to in Article 9 of that Regulation;

(b) the update involves changes of one or more rural devel-
opment programmes as referred to in Article 6(1) of this
Regulation.

Article 12(1) of Regulation (EC) No 1698/2005 shall

2.
apply mutatis mutandis to updates of national strategy plans.

3.
In order to allow sufficient time for rural development
programme adaptations, the last update of a national strategy
plan shall be forwarded to the Commission by 30 June 2013 at
the latest.

4.
The national strategy plans shall be confirmed or updated
after approval of the rural development programmes notably in
light of
the objectives and targets
stemming from the ex-ante evaluation of those programmes.

the quantification of

The dates for determining the time periods provided for in
2.
paragraph 1 of this Article shall be fixed in accordance with
Article 63(6) and (8), where applicable.

Article 5

1.
The content of rural development programmes as referred
to in Article 16 of Regulation (EC) No 1698/2005 shall be
established in accordance with Annex II to this Regulation.

The ex-ante evaluation referred to in Article 85 of Regulation
(EC) No 1698/2005 shall be annexed to each rural development
programme.

2.
National frameworks referred to in Article 15(3) of Regu-
lation (EC) No 1698/2005 shall contain information common
to several measures. For those measures, regional rural devel-
opment programmes may only contain additional information,
information contained jointly under national
provided that
complies with the
frameworks and regional programmes
requirements of Annex II to this Regulation.

3. Member States shall make available to the Commission an
electronic version of their rural development programmes and
national frameworks where applicable, updated following each
change, including the standard tables set out in Annex II to this
Regulation corresponding to information required in accordance
with Article 16(d), (e) and (f) of Regulation (EC) No 1698/2005.
Member States shall forward to the Commission requests for
programme changes and national framework changes, where
applicable, by electronic means, in accordance with Article 63
of this Regulation.

S e c t i o n 3

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

Article 6

Changes in rural development programmes shall fall under

1.
the following categories:

Article 4

(a) revisions as referred to in Article 19(1) of Regulation (EC)

The Commission shall approve the rural development
1.
submitted by the Member States within a
programmes
maximum of six months from the date of receipt of
the
programmes by the Commission. In the case of rural devel-
opment programmes submitted before the date of entry into
force of this Regulation, the six month period shall start from
that date.

In cases of application of the second subparagraph of Article
18(3) of Regulation (EC) No 1698/2005, the six-month period
provided for in the first subparagraph of this paragraph shall
start
from the date the revised proposed programme is
compliant with the first subparagraph of Article 18(3) of Regu-
lation (EC) No 1698/2005.

No 1698/2005;

(b) revisions stemming from coordination procedures for the
uptake of the financial resources as referred to in Article
77(3) of Regulation (EC) No 1698/2005;

(c) other changes not covered by points (a) and (b) of this

paragraph.

2.
Programme changes as referred to in points (a) and (b) of
paragraph 1 may only be proposed from the second year of
implementation of the programme.

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Proposals for changes in rural development programmes
in particular giving the following

3.
shall be duly substantiated,
information:

the European Agricultural Fund
transfer the contribution of
for Rural Development (EAFRD) between regional programmes
for particular years, where:

(a)

the reasons and any implementation problems justifying the
change;

(a)

the total EAFRD contribution per programme for the entire
programming period is not altered;

(b) the expected effects of the change;

(c)

the relationship between the change and the national
strategy plan.

Article 7

1.
For programme revisions referred to in Article 6(1)(a) of
this Regulation, a decision shall be adopted pursuant to the first
sentence of Article 19(2) of Regulation (EC) No 1698/2005, on
a request submitted by a Member State, where:

(a)

the revision goes above the flexibility ceiling between axes
referred to in Article 9(2) of this Regulation;

(b) the

revision alters

the Community co-financing rates
to in Article 70 of Regulation (EC) No
referred
1698/2005 as provided for in the approved rural devel-
opment programme;

(b) the total EAFRD allocation to the Member State concerned

is not altered;

(c)

the annual breakdowns of the programme for the years
preceding the year of the revision are not altered;

(d) the

annual EAFRD allocation to the Member State

concerned is respected;

(e)

if appropriate, the budget for achieving the Convergence
Objective mentioned in the national
strategy plan in
accordance with Article 11(3)(f) of Regulation (EC) No
1698/2005 is not reduced.

The financial tables of the programmes concerned shall be

2.
adapted to reflect the transfers referred to in paragraph 1.

(c)

the revision changes the total Community contribution for
the
annual
breakdown, without changing contributions for past years;

programming

and/or

period

entire

its

revised financial

The
forwarded to the
Commission by 30 September at the latest of the calendar
year in which a transfer takes place. The last year in which
such revisions can be forwarded shall be 2012.

shall be

tables

(d) the revision introduces changes relating to the exceptions
referred to in Article 5(6) of Regulation (EC) No
1698/2005.

The decision shall be taken within six months from the date of
receipt by the Commission of the Member State's request.

Except in cases of emergency measures due to natural
2.
disasters,
referred to in
for programme revisions
Article 6(1)(a) shall not be submitted more than once per
calendar year and per programme.

requests

For revisions as referred to in paragraph 1(c), Member States
shall forward requests by 30 September of each year at the
latest.

For the revisions referred to in paragraph 1, Member States shall
forward their last requests for revisions to the Commission by
30 June 2013 at the latest.

The Commission shall adopt a Decision approving the new
financial
the
Member State’s request. The procedure referred to in Article
90(2) of Regulation (EC) No 1698/2005 shall not apply.

tables within three months after

receipt of

3.
Requests for programme revisions referred to in Article
6(1)(b) shall not be submitted more than once per calendar
year.

Article 9

1.
Changes in programmes by Member States as referred to
in Article 6(1)(c) may involve changes of financial breakdowns
by measure within an axis as well as non-financial changes
concerning the introduction of new measures, the withdrawal
of existing measures, or information on and description of
existing measures in the programme.

Article 8

1. Member States with regionalised programming may
submit programme revisions referred to in Article 6(1)(b) to

2. Member States shall also be authorised to make changes
as referred to in Article 6(1)(c) by transferring within a calendar
year from and to any axis up to 1 % of the total EAFRD
contribution to the programme for the entire programming
period.

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Programme changes referred to in paragraphs 1 and 2
3.
may be made before 31 December 2015 at
the latest,
provided that Member States notify such changes by 31
August 2015 at the latest.

4.
Except in cases of emergency measures due to natural
disasters, changes referred to in paragraphs 1 and 2 shall be
notified no more than three times per calendar year and per
the 1 % ceiling referred to in
programme provided that
paragraph 2 is respected within the calendar year in which
the three notifications are made.

5.
Changes referred to in paragraphs 1 and 2 of this Article
shall be compatible with the rates set in Article 17 of Regu-
lation (EC) No 1698/2005.

6.
Changes referred to in paragraphs 1 and 2 shall be
notified to the Commission. The Commission shall assess their:

(a) compliance with Regulation (EC) No 1698/2005;

Article 11

Changes of national frameworks referred to in Article 15(3) of
Regulation (EC) No 1698/2005 shall fall within the scope of
Article 6(1)(c) of this Regulation. Article 9(3) and (6) of this
Regulation shall apply mutatis mutandis to such changes.

Article 12

Where Community legislation is adopted or amended, rural
development programmes shall be changed in line with the
new or amended legislation as necessary,
in accordance with
Article 6(1). Such changes shall not be taken into account for
the yearly number of changes referred to in Article 7(2), Article
8(3) and Article 9(4). Article 6(2) shall not apply to such
changes.

CHAPTER III

Rural development measures

S e c t i o n 1

(b) coherence with the relevant national strategy plan;

R u r a l d e v e l o p m e n t m e a s u r e s p e r a x i s

(c) compliance with this Regulation.

The Commission shall inform the Member State of the results
of that assessment within four months from the date of receipt
by the Commission of the request of the programme change. If
the changes fail to comply with one or more of the assessment
parameters referred to in the first subparagraph, the four-month
period shall be suspended until
the Commission receives
compliant programme changes.

If the Commission does not inform the Member State within
the four-month period referred to in the second subparagraph
the changes shall be deemed to be accepted and shall enter into
force once the four-month period has expired.

Article 10

1.
For the purpose of the second subparagraph of Article
71(1) of Regulation (EC) No 1698/2005, Member States shall
bear the responsibility for expenditure between the date on
which their request for programme revisions or changes as
referred to in Article 6(1) of this Regulation is received by
the Commission and the date of
the Commission Decision
pursuant to Articles 7 and 8 of this Regulation or that of the
completion of
the changes
the compliance assessment of
pursuant to Article 9 of this Regulation.

2.
In cases of emergency measures due to natural disasters,
eligibility of expenditure relating to programme changes as
referred to in Article 6(1) may start from a date earlier than
the date referred to in the second subparagraph of Article 71(1)
of Regulation (EC) No 1698/2005.

S u b - s e c t i o n 1

A x i s 1

Article 13

1.
The conditions for support for the setting up of young
farmers provided for in Article 22(1) of Regulation (EC) No
1698/2005 shall be met at the time when the application for
support is lodged.

However, a period not exceeding 36 months may be allowed
from the date the individual decision to grant support is taken
in order to meet the conditions relating to occupational skills
and competence referred to in Article 22(1)(b) of Regulation
(EC) No 1698/2005,
if the young farmer needs a period of
adaptation in which to set up or to restructure the holding,
provided that the business plan referred to in point (c) of that
paragraph provides for such a need.

The business plan referred to in Article 22(1)(c) of Regu-

2.
lation (EC) No 1698/2005 shall describe at least:

(a)

the initial situation of the agricultural holding and specific
milestones and targets for the development of the activities
of the new holding;

(b) details of investments, training, advice or any other action
required for the development of the activities of the agri-
cultural holding.

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Compliance with the business plan shall be assessed by
3.
the competent authority no later than five years from the date
of the individual decision granting support. Member States shall,
taking account of the circumstances in which the business plan
is implemented, define the conditions for recovery of support
already received if the young farmer fails to comply with the
provisions of the business plan at the time of the assessment.

The individual decision to grant support for the setting up
4.
of young farmers shall be taken no later than 18 months after
setting up as defined by the provisions in force in the Member
States. In the case of support in the form of a single premium
as set out in the Annex to Regulation (EC) No 1698/2005 and
for the purpose of paragraph 3 of this Article, a Member State
may divide its payment into up to five instalments.

5. Member States may decide that where the business plan
makes reference to the use of other rural development measures
provided for in Regulation (EC) No 1698/2005, the approval of
the young farmer’s application by the competent authority also
gives access to those other measures. In such case, the infor-
mation to be supplied by the applicant must be sufficiently
detailed to support an application for support under those
other measures.

6.
Specific conditions may be applied in a situation where a
young farmer is not established as sole head of the agricultural
holding. Those conditions must be equivalent to those required
for a young farmer setting up as sole head of a holding.

Article 14

1. When a farm is transferred by several transferors, overall
support for early retirement pursuant to Article 23 of Regu-
lation (EC) No 1698/2005 shall be limited to the amount
provided for one transferor.

shall be in accordance with Chapter 3 of Title II of Council
Regulation (EC) No 1782/2003 (6) and implementing provisions
thereof.

2.
The authorities and bodies selected to provide advisory
services to farmers shall have appropriate resources in the
facilities
form of qualified staff, administrative and technical
and advisory experience and reliability with respect
to the
requirements, conditions and standards referred to in points
(a) and (b) of the second subparagraph of Article 24(1) of
Regulation (EC) No 1698/2005.

Article 16

A degressive rate of support for setting-up of management,
relief and advisory services as referred to in Article 25 of Regu-
lation (EC) No 1698/2005 shall be established in the rural
reduction of
development programmes, providing for
support in equal amounts from the first year of support,
in
such a way that support is completely phased out in the sixth
year at the latest from the setting up of those services.

a

Article 17

In the case of support for investments for the moderni-
1.
sation of agricultural holdings in order to comply with newly
introduced Community standards as provided for in the second
subparagraph of Article 26(1) of Regulation (EC) No
1698/2005, the relevant standards shall be met by the end of
the period of grace provided for in that subparagraph.

2. Where investments are undertaken by young farmers
receiving support as referred to in Article 22 of Regulation
(EC) No 1698/2005 in order
to comply with existing
Community standards, the relevant standards shall be met by
the end of the period of grace provided for in the third subpar-
agraph of Article 26(1) of that Regulation.

Non-commercial

2.
transferor
Common Agricultural Policy.

shall not be

farming

eligible

activity
for

continued by
support under

the
the

Article 18

A tenant farmer may transfer the released land to the
3.
owner provided that
terminated and the
requirements relating to the transferee laid down in Article
23(3) of Regulation (EC) No 1698/2005 are complied with.

lease

the

is

1.
For the purpose of Article 27(2) of Regulation (EC) No
1698/2005 forest management plans appropriate to the size
and use of the forest area shall be based on relevant national
legislation as well as existing land use plans and they shall
adequately cover the forest resources.

4. Member States may make provision for released land to
be taken in charge by a body which undertakes to reassign it at
a later date to transferees who satisfy the conditions laid down
in Article 23(3) of Regulation (EC) No 1698/2005.

2.
Operations for the improvement of the economic value of
forests as referred to in Article 27 of Regulation (EC) No
1698/2005 shall concern investments at
the
forestry holding, and may include investments for harvesting
equipment.

the level of

Article 15

Activities related to regeneration after final
excluded from support.

felling shall be

1.
The advisory services to farmers for which support may
be granted under Article 24 of Regulation (EC) No 1698/2005

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

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L 368/23

Forests referred to in Article 30(4) of this Regulation shall
3.
be excluded from the scope of the first sentence of Article 27(1)
of Regulation (EC) No 1698/2005.

(c) Council Regulation (EC) No 510/2006 (9);

(d) Title VI of Council Regulation (EC) No 1493/1999 (10).

Article 19

1.
In the case of support for investments for adding value to
agricultural and forestry products in order to comply with
newly introduced Community standards as provided for in the
second subparagraph of Article 28(1)(c) of Regulation (EC) No
1698/2005, the relevant standards shall be met by the end of
the period of grace provided for in that subparagraph.

2.
In the case of support for investments for adding value to
forestry products, investments related to the use of wood as a
raw material shall be limited to all working operations prior to
industrial processing.

Article 20

Costs for cooperation for the development of new products,
processes and technologies in the agricultural and food sector
and in the forestry sector, as referred to in Article 29(2) of
Regulation (EC) No 1698/2005,
shall concern preparatory
operations, such as design, product, process or technology
development
intangible
investments related to the cooperation, before the use of the
newly developed products, processes and technologies
for
commercial purposes.

tangible

and/or

tests

and

and

Article 21

The level of support

1.
for meeting standards based on
Community legislation referred to in Article 31 of Regulation
(EC) No 1698/2005 shall be modulated by the Member States
per standard with regard to the level of obligations resulting
from the application of the standard. Payment shall be phased
five years referred to in
out over the maximum period of
paragraph 2 of that Article.

2.
Costs related to investments shall not be taken into
for
account when determining the level of annual support
meeting standards based on Community legislation referred to
in Article 31 of Regulation (EC) No 1698/2005.

Article 22

1.
Community quality schemes referred to in Article 32(1)(b)
of Regulation (EC) No 1698/2005 shall be those established
under the following Regulations and provisions:

(a) Council Regulation (EEC) No 2092/91 (7);

(b) Council Regulation (EC) No 509/2006 (8);

for

eligible

To be

2.
schemes
recognised by the Member States, as referred to in Article
32(1)(b) of Regulation (EC) No 1698/2005, shall comply with
the following criteria:

food quality

support,

(a)

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

— specific characteristics including the production process,

or

— a quality of
that goes significantly
beyond the
as
regards public, animal or plant health, animal welfare
or environmental protection;

the final product
commercial

commodity

standards

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

(c)

the schemes shall be open to all producers;

(d) the schemes shall be transparent and assure complete trace-

ability of the products;

(e)

the schemes shall respond to current and foreseeable market
opportunities.

3.
Support may be granted to farmers participating in a food
quality scheme only if the quality product or foodstuff has been
officially recognised under the Regulations and provisions listed
in paragraph 1, or in a food quality scheme recognised by a
Member State as referred to in paragraph 2.

As regards the food quality schemes referred to in paragraph
1(b) and (c), support may only be granted in respect of products
registered in a Community register.

for participation in a food quality
4. Where a support
scheme under Regulation (EEC) No 2092/91 for a specific
product is included in a rural development programme, the
fixed costs resulting from the participation in that quality
in calculating the
scheme shall not be taken into account
amount of support in the framework of an agri-environment
measure to support organic farming for the same product.

(7) OJ L 198, 22.7.1991, p. 1.
(8) OJ L 93, 31.3.2006, p. 1.

(9) OJ L 93, 31.3.2006, p. 12.
(10) OJ L 179, 14.7.1999, p. 1.

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For the purpose of Article 32(1)(c) of Regulation (EC) No
5.
‘fixed costs’ shall mean the costs incurred for
1698/2005,
entering a supported food quality scheme and the annual
contribution for participating in that scheme, including, where
necessary, expenditure on checks required to verify compliance
with the specifications of the scheme.

Article 23

‘producer group’ shall mean an organisation,

For the purposes of Article 20(c)(iii) of Regulation (EC) No
1.
1698/2005,
in
whatever legal form, which brings together operators actively
participating in a food quality scheme as referred to in Article
32 of that Regulation for a specific agricultural product or
foodstuff. Professional and/or inter-professional organisations
representing one or more sectors cannot qualify as ‘producer
groups’.

2.
The information and promotion activities eligible for
support under Article 33 of Regulation (EC) No 1698/2005
shall be activities designed to induce consumers to buy the
agricultural products or foodstuffs covered by food quality
schemes included in the rural development programme under
Article 32 of that Regulation.

Such activities shall draw attention to the specific features or
advantages of
the products concerned, notably the quality,
specific production methods, high animal welfare standards
and respect for the environment linked to the food quality
scheme concerned, and may include the dissemination of
scientific and technical knowledge about those products. Such
activities shall include, in particular, the organisation of, and/or
participation in, fairs and exhibitions, similar public relations
exercises and advertising via the different channels of commu-
nication or at the points of sale.

3.
Only information, promotion and advertising activities in
the internal market shall be eligible for support pursuant to
Article 20(c)(iii) of Regulation (EC) No 1698/2005.

Such activities shall not incite consumers to buy a product due
to its particular origin, except
for products covered by the
quality scheme introduced by Regulation (EC) No 510/2006
and those under Regulation (EC) No 1493/1999. The origin
of a product may nevertheless be indicated provided the
mention of the origin is subordinate to the main message.

Activities related to the promotion of commercial brands shall
not be eligible for support.

4. When activities referred to in paragraph 2 concern a
product
included in a food quality scheme referred to in
Article 22(1)(a), (b) or (c), the Community logo provided for
under those schemes shall appear on information, promotion
and/or advertising material.

Information and promotion activities supported under
5.
Regulation (EC) No 2826/2000 shall not qualify for support
pursuant to Article 20(c)(iii) of Regulation (EC) No 1698/2005.

6.
The Member States shall ensure that all draft information,
promotion and advertising materials drawn up in the context of
a supported activity comply with Community legislation. To
that end, beneficiaries shall transmit such draft materials to
the competent authority of the Member State.

Article 24

The business plan referred to in Article 34 of Regulation

1.
(EC) No 1698/2005 shall comply with the following:

(a) provide evidence that the farm can become economically
viable, taking account, where applicable, of the complemen-
tarity of other sources of income of the farm household;

(b) contain details of the investments required;

(c) describe specific milestones and targets.

2. Where the business plan referred to in Article 34 of
Regulation (EC) No 1698/2005 makes reference to the use of
other
it must be sufficiently
detailed to support an application for assistance under those
other measures.

rural development measures,

3.
For the purpose of Article 34(2) of Regulation (EC) No
1698/2005, the Member States, taking account of the circum-
stances in which the business plan is implemented, shall not
make any further payment of support if the semi-subsistence
farmer fails to comply with the provisions of the business plan
at the time of the assessment.

Article 25

1.
In the case of Malta, in order to set the minimum support
for a sector of production where the total output is extremely
small,
in accordance with the Annex to Regulation (EC) No
1698/2005, only producer groups comprising a minimum
percentage of the producers in the sector concerned and repre-
senting a minimum percentage of the production in that sector
shall be eligible for that minimum support.

The minimum percentages of producers and production as well
as the sectors concerned shall be determined in Malta’s rural
development programme.

2.
The minimum amount of support for producer groups in
Malta, calculated on the basis of the costs necessary to form a
small producer group, is set in Annex III.

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S u b - s e c t i o n 2

A x i s 2

Article 26

Beneficiaries of support pursuant to Article 38 of Regulation
(EC) No 1698/2005 shall not be eligible for support pursuant
to Article 31 of that Regulation, as regards the implementation
of Council Directives 79/409/EEC (11) and 92/43/EEC (12).

Article 27

1.
For the purpose of Article 39(1) to (4) and Article 40 of
Regulation (EC) No 1698/2005, paragraphs 2 to 13 of this
Article shall apply as relevant.

Any commitment

to extensify livestock farming or
2.
manage livestock farming differently shall comply with at
least the following conditions:

(a) grassland management shall continue;

(b) the whole of the grazed area per livestock unit shall be
maintained, avoiding both over-grazing and under-utili-
sation;

(c)

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

to limit nutrient

to limit

the use of

Commitments

3.
fertilisers, plant
protection products or other inputs shall be accepted only if
such limitations can be assessed in a way that provides
reasonable
those
commitments.

compliance

assurance

about

with

measures implemented under common market organisations
or direct support schemes listed in Annex I, animal and plant
health measures or rural development measures other than agri-
environment and animal welfare support, provided that such
and consistent with the measures
is
support
concerned.

additional

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

Where measures or commitments referred to in the first and
second subparagraph are combined, the level of support shall
take account of the specific income foregone and additional
costs resulting from the combination.

6.
Agri-environment measures on land set aside under
Article 54 or Article 107 of Regulation (EC) No 1782/2003
shall qualify
agri-environment
commitments go beyond the main requirements laid down in
Article 3(1) of that Regulation.

support only

the

for

if

In the case of support for mountain areas, areas with other
handicaps, Natura 2000 agricultural areas and agricultural
areas included in river basin management plans pursuant to
Directive 2000/60/EC of the European Parliament and of the
Council (13), agri-environment commitments shall, as appro-
priate, take account of the conditions laid down for support
in the areas concerned.

7.
Any animal welfare commitment as referred to in Article
40 of Regulation (EC) No 1698/2005 shall provide upgraded
standards in at least one of the following areas:

(a) water and feed closer to their natural needs;

4.

Support may relate to the following commitments:

(b) housing conditions, such as space allowances, bedding,

natural light;

(a)

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

(c) outdoor access;

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

(d) absence of systematic mutilations,

isolation or permanent

tethering;

The eligible species of farm animals and the criteria for deter-
mining the threshold of loss to farming of local breeds are
defined in Annex IV.

5.
Agri-environment and/or animal welfare support for the
same production shall not be precluded by environmental

(e) prevention of pathologies mainly determined by farming

practices or/and keeping conditions.

The reference level for calculating income foregone and
8.
additional costs resulting from the commitments given shall be
the relevant standards and requirements referred to in Article
39(3) and Article 40(2) of Regulation (EC) No 1698/2005.

(11) OJ L 103, 25.4.1979, p. 1.
(12) OJ L 206, 22.7.1992, p. 7.

(13) OJ L 327, 22.12.2000, p. 1.

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9. Where commitments are normally expressed in units
other than those used in the Annex to Regulation (EC) No
1698/2005, Member States may calculate payments on the
basis of those other units. In such cases, the Member States
shall ensure that the maximum amounts per year eligible for
Community support set out in that Annex are complied with.
To this end the Member State may:

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

the adjustment

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

Such adjustments may also take the form of an extension of the
duration of the commitment.

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

The conversion rates of animals to livestock units (LU)
13.
are set out in Annex V. Member States may differentiate those
rates within the limits set in that Annex for the relevant cate-
gories, according to objective criteria.

10. Member States shall determine the need to provide
compensation for transaction cost as provided for in Article
39(4) and Article 40(3) of Regulation (EC) No 1698/2005 on
the basis of objective criteria.

Article 28

1.
Support under Article 39(5) of Regulation (EC) No
1698/2005 may cover operations carried out by other benefi-
ciaries than those referred to in Article 39(2) of that Regulation.

For the purpose of Article 39(4) and Article 40(3) of Regulation
(EC) No 1698/2005, ‘transaction cost’ shall mean cost related to
letting the transaction take place and not directly attributable to
the implementation cost of the commitment it relates to.

Activities entering in agri-environmental commitments
2.
referred to in Article 27(4) of this Regulation shall not be
eligible for support under Article 39(5) of Regulation (EC) No
1698/2005.

The transaction cost element shall be calculated over the length
of the commitment period and shall not exceed 20 % of the
income foregone and additional costs due to the commitment
given.

No support shall be granted under Article 39(5) of Regulation
(EC) No 1698/2005 for activities eligible under the framework
programme of the European Community for research, techno-
logical development and demonstration activities.

11. Member States may authorise one commitment to be
its operation,
converted into another during the period of
provided that all the following conditions are fulfilled:

3.
The operations for the conservation of genetic resources
in agriculture eligible for support under Article 39(5) of Regu-
lation (EC) No 1698/2005 shall include the following:

(a) any such conversion is of significant benefit to the envir-

(a)

onment or to animal welfare or to both;

(b) the existing commitment is substantially reinforced;

targeted actions: actions promoting the ex situ and in situ
conservation, characterisation, collection and utilisation of
genetic resources in agriculture, including web-based inven-
tories of genetic resources currently conserved in situ,
including in situ/on-farm conservation, and of
ex situ
collections (gene banks) and databases;

(c)

the approved rural development programme includes the
commitments concerned.

(b) concerted actions: actions promoting the exchange of infor-
mation for the conservation, characterisation, collection and
utilisation of genetic resources in Community agriculture,
among competent organisations in the Member States;

An agri-environment commitment may be converted into a
commitment for first afforestation of agricultural
land under
Article 43 of Regulation (EC) No 1698/2005 subject to the
conditions set out in points (a) and (b) of the first subparagraph
of
this paragraph. The agri-environment commitment shall
cease without reimbursement being required.

(c) accompanying actions:

information, dissemination and
advisory actions involving non-governmental organisations
and other relevant stakeholders, training courses and the
preparation of technical reports.

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For the purposes of this Article, the following definitions

4.
shall apply:

protected areas, such as those of specific scientific, historical,
cultural or spiritual interest.

(a)

‘in situ conservation’ means the conservation of genetic
material in ecosystems and natural habitats and the main-
tenance and recovery of viable population of species or feral
in the case of
breeds in their natural surroundings and,
domesticated animal breeds or cultivated plant species,
in
the farmed environment where they have developed their
distinctive properties;

(b) ‘in situ/on-farm conservation’ means in situ conservation and

development at farm level;

(c)

‘ex situ conservation’ means the conservation of genetic
material for agriculture outside their natural habitat;

(d) ‘ex situ collection’ means a collection of genetic material for

agriculture maintained outside their natural habitat.

Article 29

For the purposes of Articles 41 and 49 of Regulation (EC) No
1698/2005,
shall mean
investments that do not lead to any significant increase in the
value or profitability of the agricultural or forestry holding.

‘non-productive

investments’

Article 30

1.
For the purpose of Article 42(1) of Regulation (EC) No
1698/2005, the definitions in paragraphs 2 and 3 of this Article
shall apply, subject to exceptions to be duly justified in the rural
development programmes.

‘Forest’ means land spanning more than 0,5 hectare with
2.
trees higher than 5 metres and a canopy cover of more than 10
percent, or trees able to reach those thresholds in situ. It does
not include land that is predominantly under agricultural or
urban land use.

Areas under reforestation that have not yet reached but are
expected to reach a canopy cover of 10 percent and a tree
height of 5 metres are included, as are temporarily unstocked
areas, resulting from human intervention or natural causes,
which are expected to regenerate.

Forests include areas with bamboo and palms provided that
height and canopy cover criteria are met.

Forests include windbreaks, shelterbelts and corridors of trees
with an area of more than 0,5 hectare and width of more than
20 metres.

such as

Forests include plantations primarily for forestry protection
purposes,
rubber-wood plantations and cork oak
stands. Tree stands in agricultural production systems, such as
those in fruit plantations, and agri-forestry systems are excluded
from the definition of ‘forests’. Trees in urban parks and gardens
are also excluded from that definition.

land not classified as

‘Wooded areas’ means

‘forest’,
3.
spanning more than 0,5 hectare, with trees higher than 5
metres and a canopy cover of 5-10 percent, or trees able to
reach those thresholds in situ, or with a combined cover of
shrubs, bushes and trees above 10 percent. The term does
not include land that is predominantly under agricultural or
urban use.

4.
The following forests and wooded areas shall be excluded
from the scope of the first sentence of Article 42(1) of Regu-
lation (EC) No 1698/2005:

(a)

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

(b) forest and other wooded land owned by the Crown;

(c)

least 50 % of whose
is held by one of the institutions referred to in

forests owned by legal persons at
capital
points (a) and (b).

Article 31

1.
Agricultural land eligible for support for first afforestation
under Article 43 of Regulation (EC) No 1698/2005 shall be
specified by the Member State and shall
include land where
farming takes place on a regular basis.

First afforestation in a Natura 2000 site designated pursuant to
Directives 79/409/EEC and 92/43/EEC shall be consistent with
the management objectives of the site concerned.

Forests include forest roads, firebreaks and other small open
forests in national parks, nature reserves and other
areas,

For the purposes of Article 43(1)(a) of Regulation (EC) No
2.
‘establishment costs’ shall include the cost of the
1698/2005,
plantation material, the cost of the plantation and the cost
directly linked to and necessary for the plantation.

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‘farmers’

For the purposes of Article 43(1)(c) of Regulation (EC) No
3.
1698/2005,
shall mean persons who devote an
essential part of their working time to agricultural activities
and derive from them a significant part of
income
according to criteria to be determined by the Member State.

their

For the purposes of Article 43(3) and Article 44(3) of
4.
Regulation (EC) No 1698/2005,
for
short–term cultivation’ shall mean species with a rotation
time, namely the period between two harvest cuts on the
same parcel, of less than 15 years.

‘fast-growing species

Article 32

For the purpose of Article 44 of Regulation (EC) No 1698/2005
Member States,
forestry
species and the need to ensure continuation of the agricultural
use of the land, shall determine the maximum number of trees
planted per hectare.

taking account of

local conditions,

Article 33

1. Where support under Article 48 of Regulation (EC) No
1698/2005 covers the creation of forest firebreaks, eligible costs
may comprise, beyond the cost of establishment, subsequent
maintenance cost on the area concerned.

Environmental reasons qualifying areas as apt for affores-
2.
tation as referred to in Article 50(6) of Regulation (EC) No
1698/2005 may comprise prevention from erosion and/or
desertification,
the enhancing of biodiversity, protection of
water resources, prevention of floods and climate change miti-
gation, provided that the latter will not harm biodiversity or
cause other environmental damage.

S u b - s e c t i o n 3

A x i s 3

Article 35

For
the purposes of Article 53 of Regulation (EC) No
1698/2005, a ‘member of the farm household’ shall mean a
natural or legal person or a group of natural or legal persons,
whatever legal status is granted to the group and its members
by national law, with the exception of the farm workers. Where
a member of the farm household is a legal person or a group of
legal persons, that member must exercise an agricultural activity
on the farm at the time of the support application.

Article 36

The public-private partnerships referred to in Article 59(e) of
for
Regulation (EC) No 1698/2005 which receive support
implementing local development strategies shall respect
the
following conditions:

Support for maintaining forest firebreaks through agricultural
activities shall not be granted for areas benefiting from agri-
environment support.

(a)

they shall establish area-based local development strategies
at sub-regional level;

2.
Preventive actions against fire, as referred to in Article 48
of Regulation (EC) No 1698/2005, may cover the following:

(b) they shall be representative of the public and private-sector
actors identified at the geographical level referred to in point
(a) of this Article;

(a) establishment of protective infrastructures such as forest
paths, tracks, water supply points, firebreaks, cleared and
felled areas, launching of operations to maintain firebreaks
and cleared and felled areas;

(c)

the running costs shall not exceed 15 % of
the public
expenditure relating to the local development strategy of
each individual public-private partnership.

(b) preventive forestry practices such as vegetation control,

thinning, diversification of vegetation structure;

(c) setting-up or improvement of fixed forest fire monitoring

facilities and communication equipment.

Article 34

Agricultural areas referred to in Article 50(5) of Regu-
1.
lation (EC) No 1698/2005, which are included in river basin
management plans in accordance with Directive 2000/60/EC,
shall be eligible for payments pursuant to Article 38 of Regu-
lation (EC) No 1698/2005, if a relevant river basin management
plan is established and implemented in those areas.

S u b - s e c t i o n 4

A x i s 4

Article 37

1.
For the implementation of Axis 4 as referred to in Section
4 of Chapter I of Title IV of Regulation (EC) No 1698/2005,
Member States or regions may opt to cover either their whole
territory or part of it by adapting accordingly the criteria for
selecting the local action groups and the areas they represent.

The procedures for selecting the local action groups must be
open to the rural areas concerned and ensure competition
between the local action groups putting forward local devel-
opment strategies.

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Calls for proposals for the selection of rural areas for the
2.
implementation of local development strategies referred to in
Article 62(1)(a) of Regulation (EC) No 1698/2005 shall be
organised no later than two years after the approval of the
regions may
programmes. However, Member
organise additional calls for proposals, especially where Leader
is open to new areas, in which case a longer time period may
be needed.

States or

3.
The population of each area referred to in Article 61(a)
and Article 62(3) of Regulation (EC) No 1698/2005 must as a
general rule be not less than 5 000 and not more than 150 000
inhabitants.

Expenditure on animation may be eligible in all
concerned by the cooperation.

the areas

The

shall be

cooperation projects

4.
selected by the
competent authority of the Member State where such projects
borne by the local action groups have not been integrated into
their local development strategy pursuant to Article 62(4) of
Regulation (EC) No 1698/2005. In that case, the cooperation
projects may be submitted by the local action groups to the
competent authority by 31 December 2013 at the latest.

However,
in properly justified cases, the limits of 5 000 and
150 000 inhabitants may be lowered or increased respectively.

5. Member States shall communicate to the Commission the
approved transnational cooperation projects.

4. Member States of the Community as constituted at 30
April 2004 shall seek to ensure that a priority is given to the
selection of local action groups which have integrated coop-
eration into their
to
Article 62(4) of Regulation (EC) No 1698/2005.

local development strategies pursuant

S u b - s e c t i o n 5

T e c h n i c a l a s s i s t a n c e

Article 40

Article 38

Running costs of local action groups as referred to in Article
63(c) of Regulation (EC) No 1698/2005 shall be eligible for
Community support within a limit of 20 % of the total public
expenditure of the local development strategy.

In case of rural development programmes covering both regions
the Convergence Objective and regions not
eligible under
eligible under the Convergence Objective, the EAFRD contri-
bution rate for
technical assistance referred to in Article
70(3)(a) of Regulation (EC) No 1698/2005 may be determined
taking into account the predominant type of regions, by their
number, in the programme.

Article 39

Cooperation as referred to in Article 65 of Regulation (EC)
1.
No 1698/2005 shall
involve at least one local action group
selected under the Leader Axis. It shall be implemented under
the responsibility of a coordinating local action group.

2.
Cooperation shall be open to public-private partnerships
as referred to in Article 59(e) of Regulation (EC) No 1698/2005
and to other rural areas organised with the following features:

(a) presence of a local group in a geographical territory, which
is active in rural development, with the capacity to draw up
a development strategy for that territory;

(b) the organisation of that local group is based on a part-

nership of local actors.

Cooperation shall include the implementation of a joint

3.
action.

Only expenditure for the joint action, for running any common
structures and for preparatory technical support shall be eligible
for support under Article 65 of Regulation (EC) No 1698/2005.

Article 41

running the national

The structure needed for

1.
rural
network provided for in Article 68 of Regulation (EC) No
1698/2005 may be established either within the competent
tendering
national
procedures. That structure must be able to perform the tasks
referred to in paragraph 2(b) of that Article.

selection through

authorities

by

or

the technical assistance component of

2. Where a single rural development programme covers the
whole territory of a Member State, the national rural network
the
shall be part of
programme and a distinction shall be made between planned
expenditure relating to elements covered by points (a) and (b) of
Article 68(2) of Regulation (EC) No 1698/2005. However,
expenditure related to the elements covered by that point (a)
shall not exceed 25 % of the amount reserved for the national
rural network.

3. Where Member States use the possibility provided for in
the second subparagraph of Article 66(3) of Regulation (EC) No
1698/2005, the specific programme for the establishment and
the operation of the national rural network shall be approved in
accordance with Article 18(4) of that Regulation.

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Article 4, Article 5(1) and (3), and Article 6 of this Regulation
shall apply mutatis-mutandis
submission, approval, and
for
changes of such specific programmes.

In the event of minor changes to the situation of a
3.
holding, Member States may take specific measures to ensure
that the application of paragraph 1 does not lead to inap-
propriate results as regards the commitment entered into.

The specific programme and its financial table shall make a
distinction between elements covered by points (a) and (b) of
Article 68(2) of Regulation (EC) No 1698/2005. However,
expenditure related to the elements covered by that point (a)
shall not exceed 25 % of the total amount of that programme.

National

4.
December 2008 at the latest.

rural networks

shall be established by 31

Article 45

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

Detailed rules on the establishment and the organisation

5.
of the national rural networks are laid down in Annex II.

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

S e c t i o n 2

C o m m o n p r o v i s i o n s f o r s e v e r a l m e a s u r e s

The extension referred to in paragraph 1 may be granted

2.
only under the following conditions:

Article 42

For
the purposes of Article 70(7) of Regulation (EC) No
1698/2005, where integrated operations fall under more than
one axis and/or measure, for each part of the operation clearly
identified as falling within the scope of a particular rural devel-
opment measure, the conditions of that measure shall apply.

(a)

it is of benefit to the measure concerned;

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

Article 43

(c)

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

For
investment measures, Member States shall ensure that
support is targeted on clearly defined objectives reflecting iden-
tified structural and territorial needs and structural disad-
vantages.

Article 44

1. Where all or part of a holding of the beneficiary is trans-
ferred to another person during the period for which a
commitment given as a condition for the grant of assistance
runs, that other person may take over the commitment for the
remainder of the period. If the commitment is not taken over,
the beneficiary shall reimburse the assistance granted.

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

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

2. Member States may choose not to require the reimbur-
sement referred to in paragraph 1 in the following cases:

Article 46

(a) where a beneficiary who has already honoured a significant
part of the commitment concerned definitively ceases agri-
cultural activities and it is not feasible for a successor to
take over the commitment;

(b) where the transfer of a part of the holding of a beneficiary
occurs during a period of extension of the commitment in
accordance with the second subparagraph of Article 27(12)
and the transfer does not concern more than 50 % of the
area covered by the commitment before the extension.

shall be provided for

A revision clause
commitments
undertaken pursuant to Articles 39, 40 and 47 of Regulation
(EC) No 1698/2005 in order to ensure their adjustment in the
case of amendments of the relevant mandatory standards or
requirements referred to in Article 39(3), Article 40(2) and
Article 47(1) of
to
Articles 4 and 5 of Regulation (EC) No 1782/2003 and
Annexes III and IV thereto, as well as of
the minimum
requirements for fertiliser and plant protection product use
and of other relevant mandatory requirements established by
national
legislation, beyond which the commitments go as
provided for in those Articles.

that Regulation, established pursuant

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is not accepted by the beneficiary,

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

Article 47

1. Member States may recognise, in particular, the following
categories of force majeure or exceptional circumstances in which
they will not require the partial or full reimbursement of aid
received by the beneficiary:

(a) death of the beneficiary;

(b) long-term professional incapacity of the beneficiary;

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

(d) a severe natural disaster seriously affecting land on the

holding;

(e)

the accidental destruction of
holding;

livestock buildings on the

(f) an epizootic disease affecting all or part of the farmer's

livestock.

2.
Cases of force majeure or exceptional circumstances shall be
notified in writing by the beneficiary, or any person entitled
through or under him to the competent authority, together
with relevant evidence to the satisfaction of
that authority,
within 10 working days from the date on which the beneficiary,
or the person entitled through or under him, is in a position to
do so.

CHAPTER IV

Eligibility and administrative provisions

S e c t i o n 1

In order to substantiate and confirm the adequacy and
2.
accuracy of the calculations of payments under Articles 31,
38, 39, 40 and 43 to 47 of Regulation (EC) No 1698/2005,
Member States
shall ensure that appropriate expertise is
provided by bodies or services functionally independent from
those calculations. Provision of such
those responsible for
expertise
rural development
programme.

evidenced in the

shall be

S u b - s e c t i o n 2

I n t e r e s t r a t e s u b s i d i e s

Article 49

Interest rate subsidies for loans may be co-financed by the
EAFRD pursuant
to Article 71(5) of Regulation (EC) No
1698/2005. When proposing interest rate subsidies, Member
States shall indicate in their programmes the method of calcu-
lation of the interest rate subsidy to be used.

Member States may establish a system of capitalisation of the
remaining annual instalments of the interest rate subsidy at any
time during the period of
the loan. Any remaining annual
instalment after the final date for payments shall be capitalised
and paid out by 31 December 2015 at the latest. For the
purposes of claims for payment made to the Commission, the
institution
amounts paid out
undertaking the payment of
the
subsidy shall be considered as expenditure actually incurred.

to the intermediary financial

the discounted value of

For the purposes of the second paragraph, an agreement is
needed between the Member States’ paying agency and the
institution undertaking the payment of
intermediary financial
the discounted value of
the subsidy. Member States shall
indicate in the programme the calculation method and future
value hypotheses to be used in calculating the capitalised value
of outstanding interest rate subsidy as well as the arrangements
for continuing transmitting the aid to the beneficiaries.

Member States shall remain responsible for the management of
the payment of the discounted value of the subsidy for the
entire loan period to the financial
intermediary and for any
recovery of amounts unduly paid in accordance with Article
33 of Council Regulation (EC) No 1290/2005 (14).

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

S u b - s e c t i o n 3

S u b - s e c t i o n 1

O t h e r f i n a n c i a l e n g i n e e r i n g a c t i o n s

V e r i f i a b i l i t y a n d c o n t r o l l a b i l i t y o f m e a s u r e s

Article 50

Article 48

For the purposes of Article 74(1) of Regulation (EC) No
1.
1698/2005 Member States shall ensure that all the rural devel-
opment measures they intend to implement are verifiable and
controllable. To this end, Member States shall define control
arrangements that give them reasonable assurance that eligibility
criteria and other commitments are respected.

Pursuant to Article 71(5) of Regulation (EC) No 1698/2005, as
part of a rural development programme, the EAFRD may co-
finance expenditure in respect of an operation comprising
funds, guarantee
contributions
funds and loan funds (hereinafter ‘the funds’),
in accordance
with Articles 51 and 52 of this Regulation.

to support venture capital

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

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Article 51

the

and

ownership

part-financing

1.
Those part-financing the funds or their sponsors shall
submit a business plan to the managing authority specifying,
inter alia, the targeted market or guarantee portfolio, the criteria,
terms and conditions of financing, the operational budget of the
fund,
the
requirements as to the professionalism, competence and inde-
pendence of the management, the fund’s by-laws, the justifi-
cation and intended utilisation of the EAFRD contribution, the
investment exit policy, and the winding-up provisions of the
fund, including the re-utilisation of returns attributable to the
EAFRD contribution. The business plan shall be appraised and
its implementation monitored by or under the responsibility of
the managing authority.

partners,

2.
The funds shall be set up as independent legal entities
governed by agreements between the shareholders or as
separate block of finance within an existing financial institution.
In the latter case, the fund shall be subject to specific imple-
menting rules, providing in particular
the keeping of
separate accounts distinguishing the new resources invested in
the fund, including those contributed by the EAFRD, from those
initially available in the financial institution. The Commission
shall not become a partner or shareholder in the fund.

for

3.
The funds shall invest in or provide guarantees to enter-
prises on their establishment, during their early stages or
expansion and only in activities
the fund managers
consider potentially viable. The assessment of the economic
viability shall take into account all sources of income of the
enterprises in question. Funds shall not invest in or provide
guarantees for firms in difficulty within the meaning of the
Community Guidelines on State aid for rescuing and restruc-
turing firms in difficulty (15).

that

Precautions shall be taken by managing authorities and
4.
funds to minimise distortion of competition in the venture
capital or lending market.
In particular, returns from equity
investments and loans, less a pro rata share of the management
costs, may be preferentially allocated to the private sector share-
holders up to the level of remuneration laid down in the share-
holder agreement, and after that, they shall be allocated propor-
tionally between all shareholders and the EAFRD.

5. Management costs of funds shall not exceed 3 % of the
paid-up capital, or 2 % in the case of guarantee funds, on a
yearly average for the duration of the programme unless, after a
competitive tender, a higher percentage proves necessary.

development

The terms and conditions for contributions to funds from
6.
rural
deliverables,
investment strategy and planning, monitoring implementation,
investment exit policy and winding up provisions, shall be

programmes,

including

(15) OJ C 244, 1.10.2004, p. 2.

established in a funding agreement to be concluded between the
fund on the one hand, and the Member State or the managing
authority, on the other.

7.
Contributions to funds from the EAFRD and other public
sources and investments made by the funds in or guarantees
provided to individual undertakings shall be subject to the rules
in Regulation (EC) No 1698/2005 or to the Community rules
on State aid.

Article 52

1.
As regards financial engineering actions referred to in
Article 51 of this Regulation, the expenditure declared to the
Commission in accordance with Article 26(3)(a) of Regulation
(EC) No 1290/2005 shall be the total expenditure paid in estab-
lishing or contributing to such funds.

However, when paying the balance and closing the rural devel-
opment programme in accordance with Article 28 of Regu-
lation (EC) No 1290/2005, the eligible expenditure shall be
the total of:

(a) any payment for investment in enterprises out of each of
the funds concerned, or any guarantees provided including
amounts committed as guarantees by guarantee funds;

(b) eligible management costs.

The difference between the EAFRD contribution actually paid
under financial engineering actions and the eligible expenditure
under points (a) or (b) of the second subparagraph shall be
cleared in the context of the annual accounts of the last year
of implementation of the programme.

2.
Interest generated by payments from rural development
programmes to funds shall be used to finance financial engi-
neering actions for individual undertakings.

3.
Resources returned to the operation from investments
undertaken by funds or left over after all guarantees have
been honoured shall be reused by the competent authorities
of the Member States concerned for the benefit of individual
undertakings.

S u b - s e c t i o n 4

S t a n d a r d c o s t s a n d a s s u m p t i o n s o f i n c o m e
f o r e g o n e , c o n t r i b u t i o n s i n k i n d

Article 53

1. Where appropriate Member States may fix the level of
support provided for in Articles 31, 37 to 41, and 43 to 49
of Regulation (EC) No 1698/2005 on the basis of standard
costs and standard assumptions of income foregone.

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2. Member States shall ensure that the calculations and the
corresponding support referred to in paragraph 1:

(a) contain only elements that are verifiable;

S u b - s e c t i o n 5

I n v e s t m e n t s

Article 55

In the case of investments, eligible expenditure shall be

1.
limited to:

(b) are based on figures established by appropriate expertise;

(a)

(c)

indicate clearly the source of the figures;

construction,

the
improvement of immovable property;

acquisition,

including

leasing,

or

(d) are differentiated to take into account regional or local site

conditions and actual land use as appropriate;

(e)

in the case of measures pursuant to Articles 31, 37 to 40
and 43 to 47 of Regulation (EC) No 1698/2005, do not
contain elements linked to fixed investment costs.

Article 54

1.
For measures involving investments in kind, contributions
of a public or private beneficiary, namely the provision of goods
or services for which no cash payment supported by invoices or
equivalent documents is made, may be eligible expenditure
provided that the following conditions are fulfilled:

(a)

the contributions consist in the provision of land or real
estate, equipment or raw materials, research or professional
work or unpaid voluntary work;

(b) the contributions are not made in respect of financial engi-

neering actions referred to in Article 50;

(c)

the value of the contributions can be independently assessed
and verified.

In the case of provision of land or real estate, the value shall be
certified by an independent qualified expert or duly authorised
official body.

In the case of unpaid voluntary work, the value of that work
shall be determined taking into account the time spent and the
hourly and daily rate of remuneration for equivalent work,
where relevant on the basis of ex-ante established system of
standard costing, provided that
the control system provides
reasonable assurance that the work has been carried out.

2.
Public expenditure co-financed by the EARDF, contri-
buting to an operation which includes contributions in kind
shall not exceed the total eligible expenditure, excluding contri-
butions in kind, at the end of the operation.

(b) the purchase or

lease-purchase of new machinery and
equipment, including computer software up to the market
value of the asset. Other costs connected with the leasing
contract, such as lessor’s margin, interest refinancing costs,
overheads and insurance charges,
shall not be eligible
expenditure;

(c) general costs linked to expenditure referred to in points (a)
and (b), such as fees of architects and engineers and consul-
tation fees, feasibility studies, the acquisition of patent rights
and licences.

By way of derogation from point (b) of the first subparagraph,
small and medium-sized enterprises
and only for micro,
of Commission Recommendation
within
the meaning
2003/361/EC (16), Member States may,
in duly substantiated
cases, establish the conditions under which the purchase of
second-hand equipment may be regarded as eligible expen-
diture.

In the case of agricultural

2.
investments the purchase of
agricultural production rights, animals, annual plants and their
planting shall not be eligible for investment support.

in cases of

However,
restoration of agricultural potential
damaged by natural disasters pursuant to Article 20(b)(vi) of
Regulation (EC) No 1698/2005, expenditure for the purchase
of animals may be eligible expenditure.

Simple replacement
diture.

investments shall not be eligible expen-

S u b - s e c t i o n 6

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

Article 56

By way of derogation from Article 26(5) of Commission
1.
Regulation (EC) No 1975/2006 (17), beneficiaries of investment
support may request
the payment of an advance from the
competent paying agencies if this option is included in the
rural development programme. As regards public beneficiaries,
such an advance may be paid only to municipalities and asso-
ciations thereof and to public law bodies.

(16) OJ L 124, 20.5.2003, p. 36.
(17) See page 74 of this Official Journal.

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

applicable notification requirements for individual aid within the
meaning of Article 1(e) of that Regulation are respected, and
that such operations are selected only after notification of the
underlying aid and approval by the Commission pursuant to
Article 88(3) of the Treaty.

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

S e c t i o n 3

I n f o r m a t i o n a n d p u b l i c i t y

Article 58

The

1.
communication plan which shall set out:

rural development programme

shall

include

a

3.
The guarantee shall be released when the competent
paying agency establishes that the amount of actual expenditure
corresponding to the public aid related to the investment
exceeds the amount of the advance.

(a)

the aims and target groups;

S e c t i o n 2

S t a t e a i d

Article 57

Rural development programmes may cover State aid
1.
intended to provide additional national funding in accordance
with Article 89 of Regulation (EC) No 1698/2005 in favour of
measures or operations falling within the scope of Article 36 of
the Treaty only if the State aid is identified in accordance with
point 9.A of Annex II to this Regulation.

Rural development programmes may cover State aid
2.
contributions provided by
financial
intended to provide
Member States as counterpart of Community support
in
accordance with Article 88 of Regulation (EC) No 1698/2005
in favour of measures pursuant to Articles 25 and 52 of that
to
Regulation and of operations under measures pursuant
Articles 28 and 29 of that Regulation or additional national
funding in accordance with Article 89 of that Regulation in
favour of the measures pursuant to Articles 25, 27 and 52 of
that Regulation and of operations under measures pursuant to
Articles 28 and 29 of that Regulation, falling outside the scope
of Article 36 of the Treaty, only if the State aid is identified in
accordance with point 9.B of Annex II to this Regulation.

3.
Expenditure incurred for the measures and operations
referred to in paragraph 2 of this Article shall be eligible only
if the underlying aid does not constitute unlawful aid within the
meaning of Article 1(f) of Council Regulation (EC) No
659/1999 (18) at the time the aid is granted.

The managing authority or any other competent authority in
the Member State shall ensure that where aid is to be granted to
operations under the measures referred to in paragraph 2 of this
Article on the basis of existing aid schemes within the meaning
of Article 1(b) and (d) of Regulation (EC) No 659/1999, any

(18) OJ L 83, 27.3.1999, p. 1.

(b) the content and strategy of the communication and infor-

mation measures, stating the measures to be taken;

(c)

its indicative budget;

(d) the administrative departments or bodies responsible for

implementation;

(e)

the criteria to be used to evaluate the impact of the infor-
mation and publicity measures in terms of transparency,
awareness of the rural development programmes and the
role played by the Community.

The amount allocated for information and publicity may
the rural

the technical assistance component of

2.
be part of
development programme.

Detailed rules on information and publicity are laid down

3.
in Annex VI.

Article 59

At
the meetings of
the Monitoring Committee set up in
(EC) No
77
accordance with Article
of Regulation
1698/2005, the Chairman shall report on progress in imple-
menting the information and publicity measures and provide
the Committee members with examples of such measures.

S e c t i o n 4

M o n i t o r i n g a n d e v a l u a t i o n

Article 60

The structure and the elements of the annual progress reports
provided for in Article 82 of Regulation (EC) No 1698/2005
are set out in Annex VII to this Regulation.

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Article 61

Mid-term and ex-post evaluations in accordance with Article
86(4) and (5) of Regulation (EC) No 1698/2005 shall be
submitted to the Commission respectively by 31 December
2010 and 31 December 2015 at the latest.

the mid-term and ex-post
If Member States fail
to submit
referred to in the first
evaluation reports by the dates
paragraph of
this Article the Commission may apply the
procedure of temporary suspension of intermediate payments
referred to in Article 27(3) of Regulation (EC) No 1290/2005
until it receives those evaluation reports.

Article 62

The common set of baseline, output, result, and impact
1.
indicators for the rural development programmes are listed in
Annex VIII to this Regulation. That list of indicators shall form
the Common Monitoring and Evaluation Framework (CMEF)
referred to in Article 80 of Regulation (EC) No 1698/2005.

Where relevant, those indicators shall be broken down by age
and gender of beneficiaries, as well as according to whether the
measures are implemented in less-favoured areas or in areas
covered by the Convergence Objective.

Progress on the output and result indicators shall be part
include both

2.
of the annual progress report. That report shall
common and additional indicators.

To measure progress in meeting the objectives of the rural
development programme,
indicative targets for output, result
and impact indicators shall be set for the period of implemen-
tation of
additional national
financing referred to in Article 89 of Regulation (EC) No
1698/2005.

the programme,

including

(e)

information sheets describing baseline, output, result and
impact indicators.

S e c t i o n 5

E l e c t r o n i c e x c h a n g e o f i n f o r m a t i o n a n d
d o c u m e n t s

Article 63

The Commission,

1.
in collaboration with the Member
States, shall establish an information system (hereinafter ‘the
System’) to permit the secure exchange of data of common
interest between the Commission and each Member State.
Those data shall cover both administrative/operational and
financial
covered by Article 18 of
Commission Regulation (EC) No 883/2006 (19).

aspects,

latter

the

The System shall be set up and updated by the Commission
through a common approach with the Member States.

2.
As regards the administrative/operational management,
the System shall contain the documentary aspects of common
interest enabling monitoring to be carried out, and in particular:
the summary
the national strategy plans and their updates,
the
reports,
Commission Decisions, the annual progress reports,
including
codification of measures in accordance with the table in Point 7
of Annex II, and the monitoring and evaluation indicators in
Annex VIII.

their modifications,

programmes

and

the

3.
The managing authority and the Commission shall input
into the System and update the documents for which they are
responsible in the format required.

4.
The System shall be accessible to the Member States and
the Commission either directly or via an interface for automatic
synchronisation and inputting of data with national and
regional computer management systems.

3.
Guidance on the CMEF shall be drawn up by the
Commission through a common approach with the Member
States. That guidance shall cover at least the following:

Member States shall submit requests for access rights to the
System to the Commission in a centralised manner.

(a) monitoring requirements;

(b) the organisation of

evaluation and common evaluation questions
rural development measure;

the ex-ante, mid-term and ex-post
for each

(c) guidance on the reporting system for assessing progress

with respect to indicators;

Exchanges of data shall be

signed electronically in
5.
the
accordance with Article 5 of Directive 1999/93/EC of
the Council (20). The Member
European Parliament and of
States and the Commission shall recognise the legal effectiveness
and admissibility as evidence in legal proceedings of the elec-
tronic signature used in the System.

The date to take into account

6.
for the forwarding of
documents to the Commission shall be the date on which the
Member State transmits the documents, after inputting them
into the System.

(d) information sheets for each measure containing the inter-

vention logic and the different indicators;

(19) OJ L 171, 23.6.2006, p. 1.
(20) OJ L 13, 19.1.2000, p. 12.

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A document shall be regarded as having been sent
Commission once it
State to amend it or remove it from the System.

to the
is no longer possible for the Member

The cost of developing and updating the common
7.
elements of the System shall be financed by the Community
budget in accordance with Article 66(1) of Regulation (EC) No
1698/2005.

Any costs of an interface between national and local systems,
on the one hand, and the System, on the other hand, and any
costs of adapting national and local systems may be eligible
under Article 66(2) of that Regulation.

8.
In cases of force majeure or exceptional circumstances, and
in particular of malfunctioning of the System or a lack of a
the
lasting
documents to the Commission in hard copy. Such submission
of hard copies shall require the t prior and formal agreement of
the Commission.

the Member State may

connection,

submit

Once the cause of
force majeure or exceptional circumstance
preventing use of the System ceases, the Member State shall
input
In this
the documents concerned into the System.
event, the date of sending shall be deemed to be the date of
submission of the documents in hard copy.

CHAPTER V

Final provisions

Article 64

Regulation (EC) No 817/2004 is repealed as from 1 January
2007.

shall continue to apply to measures approved before

It
1 January 2007 under Regulation (EC) No 1257/1999.

Article 11 of Regulation (EC) No 817/2004 and points
9.3.V.A(1) and 9.3.V.B(1), (2) and (3) and the second indent
of point 9.3.V.B. of Annex II thereto shall continue to apply
until 31 December 2009 pursuant to the third paragraph of
Article 94 of Regulation (EC) No 1698/2005.

Article 65

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

shall

It
programming period starting on 1 January 2007.

to Community

support

apply

concerning

the

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

Done at Brussels, 15 December 2006.

For the Commission

Mariann FISCHER BOEL
Member of the Commission

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ANNEX I

SUPPORT SCHEMES REFERRED TO IN ARTICLE 2(2)

— Fruits and Vegetables (Article 14(2) and Article 15 of Council Regulation (EC) No 2200/96 (1))

— Wine (Title II, Chapter III of Regulation (EC) No 1493/1999)

— Tobacco (Article 13(2)(b) of Council Regulation (EEC) No 2075/92 (2))

— Olive oil (Article 8(1) of Council Regulation (EC) No 865/2004) (3)

— Hops (Article 6 of Council Regulation (EC) No 1952/2005 (4))

— Beef and Veal (Article 132 of Regulation (EC) No 1782/2003)

— Sheep and Goats (Article 114(1) and Article 119 of Regulation (EC) No 1782/2003)

— Bee keeping (Article 2 of Council Regulation (EC) No 797/2004 (5))

— Sugar (Council Regulation (EC) No 320/2006 (6))

— Specific measures for agriculture in the outermost regions (Title III of Council Regulation (EC) No 247/2006 (7)) and

Smaller Aegean islands (Chapter III of Council Regulation (EC) No 1405/2006 (8))

— Direct payments (Article 42(5) and Article 69 of Regulation (EC) No 1782/2003)

(1) OJ L 297, 21.11.1996, p. 1.
(2) OL L 215, 30.7.1992, p. 70.
(3) OJ L 161, 30.4.2004, p. 97; corrected version (OJ L 206, 9.6.2004, p. 37).
(4) OJ L 314, 30.11.2005, p. 1.
(5) OJ L 125, 28.4.2004, p. 1.
(6) OJ L 58, 28.2.2006, p. 42.
(7) OJ L 42, 14.2.2006, p. 1.
(8) OJ L 265, 26.9.2006, p. 1.

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ANNEX II

A. CONTENT OF A RURAL DEVELOPMENT PROGRAMME (ARTICLE 5)

1.

2.

Title of rural development programme

Member State and administrative region (if relevant)

2.1.

Geographical area covered by the plan

(Article 15(2) of Regulation (EC) No 1698/2005)

2.2.

Regions classified as ‘Convergence’ Objective

(Article 16(d) and Article 69 of Regulation (EC) No 1698/2005)

Identify:

— Convergence regions.

3.

Analysis of the situation in terms of strengths and weaknesses, the strategy chosen to meet them and
the ex ante evaluation

(Article 16(a) and Article 85 of Regulation (EC) No 1698/2005)

3.1.

Analysis of the situation in terms of strengths and weaknesses

Describe the current situation of the geographical area using quantified data, highlighting strengths and
weaknesses, disparities, needs and gaps and potential for rural development on the basis of the baseline
indicators defined in Annex VIII and of other relevant additional indicators. This description shall concern:

— The general socio-economic context of the geographical area: the definition of the rural area taking
into account point 2.4 of the Annex to Council Decision 2006/144/EC (1); the demographic situation
including analysis of the age and gender population structure, in- and out-migration and problems arising
from peri-urban pressures and remoteness; economic drivers, productivity and growth; the labour market
including the structure of employment, unemployment and skills levels including analysis of the age and
gender employment situation; general and agricultural/forestry land use and ownership structure, average
size of holdings.

— Performance of the agricultural, forestry and food sectors: competitiveness of agricultural, forestry and
food sectors, analysis of structural disadvantages and identification, of restructuring and modernisation
needs; human capital and entrepreneurship; potential for innovation and knowledge transfer; quality and
compliance with Community standards.

— Environment and land management: the handicaps facing farms in areas at risk of abandonment and
marginalisation; overall description of biodiversity with focus on that linked to agriculture and forestry,
including high nature value farming and forestry systems, the situation with respect to the implementation
of the Natura 2000 directives in farm/forestland; water quality and quantity descriptions, the role of
agriculture in water use/pollution and implementation of Council Directive 91/676/EEC (2) and of
Directive 2000/60/EC (The Nitrates and the Water Framework Directive); air pollution and climate
change and their link to agriculture: Greenhouse gas (GHG) and ammonia emissions and link to
different action plans/initiatives taken by the Member State/region to contribute in achieving international
targets including the Code of Good Practice to reduce ammonia emissions (Convention on Long Range
Transboundary Pollution); bioenergy use; soil quality descriptions (water and wind erosion, organic matter,
contamination) and protection, pesticide use, organic farming and animal welfare; extent of protective and
protected forest areas, forest areas under high/medium fire risk, annual average change in forest coverage.
The above descriptions shall be supported by quantified data.

(1) OJ L 55, 25.2.2006, p. 20.
(2) OJ L 375, 31.12.1991, p. 1.

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— Rural economy and quality of life: structure of the rural economy, barriers to creation of alternative
employment opportunities, micro-business formation and tourism; description and gap analysis of the
including access to online services and broadband infrastructure;
provision of services in rural area,
infrastructural needs, cultural heritage and built environment
in villages; human potential and local
capacity for development including governance.

— Leader:

the population and territory of

the Member States covered by bottom-up integrated rural
development strategies (Leader+ and other national and Community co-financed programmes) during the
2000-06 programming period.

3.2.

The strategy chosen to meet strengths and weaknesses

Describe the choice and the hierarchy of rural development measures to address the situation in the rural
territory and the financial weight given to the different axes and measures justified by the analysis of the
strengths and weaknesses.

3.3.

The ex ante evaluation

Include this evaluation that will identify and appraise the elements contained in Article 85 of Regulation (EC)
No 1698/2005: 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.

The ex ante evaluation shall address also the requirements of the environmental assessment provided for by
(the ‘Strategic Environmental
Directive 2001/42/EC of
Assessment Directive’).

the European Parliament and of

the Council (1)

The complete ex ante evaluation will be presented as an annex to the rural development programme.

3.4.

Impact from the previous programming period and other information

Describe the impact of EAGGF financial resources allocated to rural development during the previous
programming period on the same programming area. Present a summary of the results of evaluations.

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

4.

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

(Article 16(b) of Regulation (EC) No 1698/2005)

4.1.

Justification of the priorities chosen having regard to the Community strategic guidelines and the national strategy plan

Describe how the measures selected in the rural development programme and the financial weight given to the
four Axes reflect the national strategy plan and the specific national situation.

4.2.

Expected impacts deriving from the ex ante evaluation with regard to the priorities chosen

The rural development programme will include a summary of the ex ante evaluation (driven from the full ex
ante evaluation annexed to the programme) and how the managing authorities took into account the results of
this evaluation. This part shall also comment on the expected impacts of synergies between axes and measures
and how integrated actions across them can contribute to positive externalities and win-win situations.

(1) OJ L 197, 21.7.2001, p. 30.

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5.

Information on the axes and measures proposed for each axis and their description

(Article 16(c) of Regulation (EC) No 1698/2005)

This information shall include the description of the axes and measures proposed, as well as specific verifiable
objectives and indicators referred in Article 81 of Regulation (EC) No 1698/2005 that allow the programme’s
progress, efficiency and effectiveness to be measured. These indicators will
include common indicators
included in the CMEF (Annex VIII to this Regulation) and additional indicators specific to the programme.

5.1.

General requirements

— identify the specific article (and paragraph where relevant) which covers each rural development measure.
Where two or more articles are quoted (for integrated operations), the payment shall be attributed to the
dominant measure and through this to the dominant axis (Article 70(7) of Regulation (EC) No
1698/2005), but each part shall be implemented in accordance with the rules governing the individual
measures.

— identify the rationale for intervention, the objectives, the scope and actions, indicators, quantified targets

and where appropriate beneficiaries.

5.2.

Requirements concerning all or several measures

— Reference of all ongoing operations/contracts from the previous period, including in financial terms, and
the procedures/rules (including the transitional ones) which apply to these in accordance with Commission
Regulation (EC) No 1320/2006 laying down rules for the transition to the rural development support
provided for by Council Regulation (EC) No 1698/2005 (1). Where deviations from the correlation table
set in Annex II to that Regulation are proposed in a programme such deviations must be explained under
this indent. For operations belonging to measures which will no longer be re-conducted in the 2007-13
programming period description may be limited only to the requirements under this indent.

— Confirmation that for the measures pursuant to Articles 25 and 52 of Regulation (EC) No 1698/2005 and
for operations under the measures pursuant to Articles 28 and 29 of that Regulation which fall outside the
scope of Article 36 of the Treaty, respect of the State aid procedures and material compatibility criteria, in
particular aid ceilings of total public support under Articles 87 to 89 of the Treaty, is ensured.

— Confirmation that the cross-compliance requirements, which affect the implementation of several rural

development measures, are identical to those provided for by Regulation (EC) No 1782/2003.

— Evidence that for investment measures support is targeted on clearly defined objectives reflecting identified

territorial needs and structural disadvantages.

— Criteria and administrative rules for ensuring that operations benefiting exceptionally from rural devel-
opment support in the support schemes listed in Annex I to this Regulation are not also supported by
other relevant instruments of the Common Agricultural Policy.

— Evidence as referred to in Article 48(2) of this Regulation allowing the Commission to check consistency

and plausibility of the calculations.

— In case of use of interest rate subsidies and capitalisation systems thereof, as well as of financial en-

gineering actions, the arrangements in accordance with Articles 49 to 52 of this Regulation.

(1) OJ L 243, 6.9.2006, p. 6.

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5.3.

Information required for Axes and measures

The following specific information is required for measures:

5.3.1.

Axis 1: Improving the competitiveness of the agricultural and forestry sector

Common to certain measures relating to forestry

— linkage of proposed measures with national/sub-national forest programmes or equivalent instruments and

with the Community Forestry Strategy.

5.3.1.1. 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

5.3.1.1.1. V o c a t i o n a l

t r a i n i n g a n d i n f o r m a t i o n a c t i o n s ,

including diffusion of scientific knowledge

and innovative practices, for persons engaged in the agricultural, food and forestry sectors

— description of the operations (including types of training) and the type of beneficiaries,

— details on coverage of support.

5.3.1.1.2. S e t t i n g u p o f y o u n g f a r m e r s

— the definition of ‘setting up’ used by the Member State/region,

— a summary of the requirements of the business plan, including in case of investments to comply with
existing Community standards within a 36-month grace period, and details on frequency and treatment of
reviews of the business plan,

— use of the possibility to benefit from the grace period in order to reach the occupational skills and

competence requirements,

— use of the possibility to combine different measures through the business plan giving access of the young

farmer to these measures,

— amount of support and choice of payment (single premium in up to five instalments, interest rate subsidy

or combination of both).

5.3.1.1.3. E a r l y r e t i r e m e n t o f

f a r m e r s a n d f a r m w o r k e r s

— description of the link with national retirement schemes,

— description of the link with the young farmers setting-up measure (where this options was chosen),

— duration of the aid,

— use of the possibility to transfer released land to a body which undertakes to reassign it at a later date,

— amount for payments.

5.3.1.1.4. U s e o f

f a r m a n d f o r e s t r y a d v i s o r y s e r v i c e s

— description of

the farm/forestry advisory systems put

including the
procedure for the selection of the bodies responsible for the provision of those services to farmers/forest
holders,

in place by the Member State,

— amount and rate of support.

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5.3.1.1.5. S e t t i n g u p o f m a n a g e m e n t , r e l i e f a n d a d v i s o r y s e r v i c e s

— description of the setting-up procedures, the status of the services providers, the type of services covered,

— description of the types of eligible expenditures, level of support, including its degressivity.

5.3.1.2. 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

5.3.1.2.1. M o d e r n i s a t i o n o f a g r i c u l t u r a l h o l d i n g s

— description of the requirements and targets with regard to the improvement of the overall performance of

the agricultural holdings,

— types of investments (tangible-intangible),

— types of beneficiaries,

— designation of the newly introduced Community standards (and of existing standards in the case of young
farmers receiving setting-up support) for which support may be granted, justification related to the specific
problems involved in complying with these standards and duration and justification of the grace period per
standard concerned,

— type of support and aid intensities.

5.3.1.2.2.

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

f o r e s t s

— types of investments and of the beneficiaries concerned,

— type of support and aid intensities.

5.3.1.2.3. A d d i n g v a l u e t o a g r i c u l t u r a l a n d f o r e s t r y p r o d u c t s

— description of the requirements and targets with regard to the overall performance of the enterprises,

— primary production sectors and types of investments (tangible-intangible),

— types and size of the beneficiary enterprises,

— designation of the standards for which a period of grace can be granted to micro-enterprises in order to

comply with a newly introduced Community standard,

— type of support and aid intensities.

5.3.1.2.4. C o o p e r a t i o n f o r d e v e l o p m e n t o f n e w p r o d u c t s , p r o c e s s e s a n d t e c h n o l o g i e s i n

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

— sectors covered and types of partners involved in the cooperation projects,

— description of any distinction between cooperation projects in the fields of new products/new proces-

ses/new technologies,

— types of eligible costs and levels of support.

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5.3.1.2.5.

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

— Description of the type of operations.

5.3.1.2.6. R e s t o r i n g a g r i c u l t u r a l p r o d u c t i o n p o t e n t i a l d a m a g e d b y n a t u r a l d i s a s t e r s a n d

i n t r o d u c i n g a p p r o p r i a t e p r e v e n t i o n a c t i o n s

— On occurrence of such events, assurance that only investment expenditure is covered.

5.3.1.3. M e a s u r e s a i m e d a t i m p r o v i n g 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

5.3.1.3.1. M e e t i n g s t a n d a r d s b a s e d o n C o m m u n i t y l e g i s l a t i o n

— list of standards based on Community legislation eligible for support under Article 31(1) of Regulation
(EC) No 1698/2005, date from which each standard is mandatory in accordance with Community
legislation and justification of choice,

— description of the significant impact on farm operating costs stemming from the obligations or restrictions

imposed by the new standard,

— amount of support per eligible standard and methodology used to determine this amount.

5.3.1.3.2. P a r t i c i p a t i o n o f

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

— list of Community and national quality schemes eligible for support,

qualifying for support under the quality schemes chosen. For national schemes, description of
scheme regarding the criteria referred to in Article 22(2),

including the list of products
the

— indication of the official authority or authorities responsible for the supervision of the functioning of the

quality scheme and description of the organisational arrangements for the supervision,

— amount of support per type of eligible scheme and justification of fixed costs.

5.3.1.3.3.

I n f o r m a t i o n a n d p r o m o t i o n a c t i v i t i e s

— list of products qualifying for support under the quality scheme chosen under measure ‘Participation of

farmers in food quality schemes’,

— procedure for ensuring that actions benefiting from rural development support are not also supported

under Regulation (EC) No 2826/2000,

— procedure for ex ante checks on information, promotion, and advertising materials (Article 23(6) of this

Regulation),

— summary description of the type of eligible costs and rates of support.

5.3.1.4.

T r a n s i t i o n a l m e a s u r e s f o r t h e C z e c h R e p u b l i c , E s t o n i a , C y p r u s , L a t v i a ,
L i t h u a n i a , H u n g a r y , M a l t a , P o l a n d , S l o v e n i a a n d S l o v a k i a

5.3.1.4.1. S u p p o r t i n g s e m i - s u b s i s t e n c e a g r i c u l t u r a l h o l d i n g s u n d e r g o i n g r e s t r u c t u r i n g

— definition of the semi-subsistence farm taking account of the minimum and/or maximum size of the farm,

the proportion of production marketed, and/or the level of income of the eligible farm;

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— definition of the future economic viability;

— summary of the requirements of the business plan;

— amount and duration of support.

5.3.1.4.2. S e t t i n g u p o f p r o d u c e r g r o u p s

— description of the official procedure for recognising the groups including selection criteria;

— sectors concerned;

— solely for Malta, indication of the sector or sectors benefiting from the derogation with the justification
related to the extremely small total output, and the conditions of eligibility for the derogation: minimum
percentage of the group’s production compared to total production in the sector, minimum number of
producers in the sector who are members of the group;

— solely for Malta, justification of annual amounts.

5.3.2.

Axis 2: Improving the environment and the countryside

5.3.2.1. 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

Common to certain measures

Detailed description of the national implementation:

— for the specific purposes of Article 39(3) of Regulation (EC) No 1698/2005 the minimum requirements for
fertilizer and plant protection products use and other relevant mandatory requirements; minimum
the Codes of Good Practice introduced under
requirements for fertilisers must
Directive 91/676/EEC for farms outside Nitrate Vulnerable Zones, and requirements concerning phos-
phorus pollution; minimum requirements
inter alia,
requirements to have a licence to use the products and meet training obligations, requirements on safe
storage, the checking of application machinery and rules on pesticide use close to water and other sensitive
sites, as established by national legislation;

for plant protection products must

inter alia,

include,

include,

— for the specific purposes of Article 40(2) of Regulation (EC) No 1698/2005 other relevant mandatory

requirements established by national legislation.

5.3.2.1.1. N a t u r a l h a n d i c a p p a y m e n t s t o f a r m e r s i n m o u n t a i n a r e a s

The provisions of points 9.3.V.A(1) and 9.3.V.B(1), (2) and (3) and of the second indent of point 9.3.V.B. of
Annex II to Regulation (EC) No 817/2004 apply until 31 December 2009. However, the distinction between
A and B, main features/other information respectively is invalidated.

5.3.2.1.2. P a y m e n t s t o f a r m e r s i n a r e a s w i t h h a n d i c a p s , o t h e r t h a n m o u n t a i n a r e a s

Point 5.3.2.1.1 applies.

5.3.2.1.3. N a t u r a 2 0 0 0 p a y m e n t s a n d p a y m e n t s l i n k e d t o D i r e c t i v e 2 0 0 0 / 6 0 / E C

— the areas designated to implement Directives 79/409/EEC and 92/43/EEC and the obligations for farmers

resulting from the corresponding national/regional management provisions;

— description of the methodology and the agronomic assumptions used as reference point for the calcu-
lations justifying additional costs and income foregone resulting from the disadvantages in the area
concerned related to the implementation of Directives 79/409/EEC and 92/43/EEC (1);

— amounts of support.

(1) Details for Directive 2000/60/EC will be issued at a later stage.

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5.3.2.1.4. A g r i - e n v i r o n m e n t p a y m e n t s

— description and justification of the different types of commitments, based on their expected environmental

impact in relation to environmental needs and priorities,

— the description of the methodology and of the agronomic assumptions and parameters (including the
description of the baseline requirements as stated in Article 39(3) of Regulation (EC) No 1698/2005 which
are relevant for each particular type of commitment) used as reference point for the calculations justifying:
(a) additional costs,
level of the
transaction costs; where relevant, this methodology shall take into account aid granted under Regulation
(EC) No 1782/2003; where appropriate, the conversion method used for other units in accordance with
Article 27(9) of this Regulation,

income foregone resulting from the commitment made and (c)

(b)

— amounts of support,

— the measures, objectives and criteria applied in case of the selection of beneficiaries by calls for tender in

accordance with the second subparagraph of Article 39(4) of Regulation (EC) No 1698/2005,

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

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

— for conservation of genetic resources in agriculture (Article 39(5) of Regulation (EC) No 1698/2005): types

of beneficiaries, of operations and details on eligible costs.

5.3.2.1.5. A n i m a l w e l f a r e p a y m e n t s

— description and justification of the different types of commitments, in at least one of the areas identified in

Article 27(7) of this Regulation, based on their expected impact,

— description of

the methodology and of

the agronomic/zoo-technical assumptions and parameters
(including the description of the baseline requirements as stated in Article 40(2) of Regulation (EC) No
1698/2005 which are relevant for each particular type of commitment) used as reference point for the
calculations justifying: (a) additional costs and income foregone resulting from the commitment made; (b)
level of the transaction costs,

— amounts of support.

5.3.2.1.6. S u p p o r t

f o r n o n - p r o d u c t i v e i n v e s t m e n t s

— definition of operations to be supported,

— description of the link to commitments provided for in Article 36(a)(iv) of Regulation (EC) No 1698/2005

or other agri-environmental objectives,

— description of the public amenity values of a Natura 2000 area or other high nature value area to be

enhanced.

5.3.2.2. 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

Common to all measures:

— linkage of proposed measures with national/sub-national forest programmes or equivalent instruments and

with the Community Forestry Strategy,

— reference to the forest protection plans for areas classified as high or medium risk for forest fires and the

elements ensuring conformity of proposed measures with these protection plans.

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5.3.2.2.1. F i r s t a f f o r e s t a t i o n o f a g r i c u l t u r a l

l a n d

— definition of ‘agricultural land’,

— definition of ‘farmer’,

— provisions and criteria for the selection of the areas to be afforested ensuring that the planned measures are
suited to local conditions and compatible with the environmental requirements, particularly biodiversity, in
accordance with Article 50(6) of Regulation (EC) No 1698/2005 and Article 34(2) of this Regulation,

— description of the methodology for the calculation of establishment and maintenance cost as well as
income foregone to be compensated. Where relevant for the latter, this methodology shall take into
account aid granted under Regulation (EC) No 1782/2003,

— aid intensity for establishment support, amounts and duration of annual premiums contributing to

covering maintenance costs and loss of income.

5.3.2.2.2. F i r s t e s t a b l i s h m e n t o f a g r o f o r e s t r y s y s t e m s o n a g r i c u l t u r a l

l a n d

— definition of agroforestry systems to be supported,

— forestry use,

— agricultural use,

— densities of planting,

— description of the methodology for the calculation of the establishment cost,

— aid intensities for establishment support.

5.3.2.2.3. F i r s t a f f o r e s t a t i o n o f n o n - a g r i c u l t u r a l

l a n d

— provisions and criteria for the designation of areas to be afforested,

— provisions ensuring that the planned measures are suited to local conditions and compatible with the

environmental requirements, particularly biodiversity,

— description of the methodology for the calculation of establishment and maintenance costs,

— aid intensities for establishment support.

5.3.2.2.4. N a t u r a 2 0 0 0 P a y m e n t s

— the areas designated to implement Directives 79/409/EEC and 92/43/EEC as well as the obligations for

forest owners resulting from the corresponding national/regional management provisions,

— description of the methodology for the calculations justifying costs incurred and income foregone resulting
from the restrictions on the use of forests and other wooded land due to implementation of Directives
79/409/EEC and 92/43/EEC in the area concerned,

— amount of support.

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5.3.2.2.5. F o r e s t - e n v i r o n m e n t p a y m e n t s

— justification for the commitments, based on their expected environmental impact in relation to environ-

mental needs and priorities,

— description of the methodology and of the assumptions and parameters used as reference point for the
calculations justifying additional costs and income foregone resulting from the commitment given,

— amount of support.

5.3.2.2.6. R e s t o r i n g f o r e s t r y p o t e n t i a l a n d i n t r o d u c i n g p r e v e n t i o n a c t i o n s

— nature of the actions to be implemented and prevention plans.

5.3.2.2.7. S u p p o r t

f o r n o n - p r o d u c t i v e i n v e s t m e n t s

— definition of operations to be supported,

— description of the link to commitments provided for in Article 36(b)(v) of Regulation (EC) No 1698/2005

or other environmental objective,

— description of the public amenity values to be enhanced.

5.3.3.

Axis 3: Quality of life in rural areas and diversification of the rural economy

5.3.3.1. 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

5.3.3.1.1. D i v e r s i f i c a t i o n i n t o n o n - a g r i c u l t u r a l a c t i v i t i e s

— domains of diversification covered,

— aid intensities.

5.3.3.1.2. S u p p o r t

f o r t h e c r e a t i o n a n d d e v e l o p m e n t o f m i c r o - e n t e r p r i s e s

— types of beneficiary enterprises,

— description of the type of operations,

— aid intensities.

5.3.3.1.3. E n c o u r a g e m e n t o f

t o u r i s m a c t i v i t i e s

— description of the type of operations covered, referred to in Article 55 of Regulation (EC) No 1698/2005,

— aid intensities.

5.3.3.2. 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

5.3.3.2.1. B a s i c s e r v i c e s f o r t h e e c o n o m y a n d r u r a l p o p u l a t i o n

— types of services supported,

— types of cost covered.

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5.3.3.2.2. V i l l a g e r e n e w a l a n d d e v e l o p m e n t

— types of actions supported,

— types of cost covered.

5.3.3.2.3. C o n s e r v a t i o n a n d u p g r a d i n g o f

t h e r u r a l h e r i t a g e

— description of the type of operations covered, referred to in Article 57 of Regulation (EC) No 1698/2005.

5.3.3.3.

T r a i n i n g a n d i n f o r m a t i o n

— field(s) covered by the training and information,

— type of economic actors beneficiary of actions envisaged.

5.3.3.4.

S k i l l a c q u i s i t i o n , a n i m a t i o n a n d i m p l e m e n t a t i o n

— skill acquisition and animation: description of the type of operation covered,

— public-private partnerships under Article 59(e) of Regulation (EC) No 1698/2005 other than those referred
to in Article 62(1)(b) of that Regulation that will implement local development strategies: description of
the type (partners represented, percentage of private partners represented, decision-making power),
in-
dicative estimate of the number of the public-private partnerships and area and population covered; in-
dication of Axis 3 measures implemented by these public-private partnerships; provision ensuring that the
running costs of these partnerships fit within the ceiling of 15 % of the public expenditure of their local
development strategy.

5.3.4.

Axis 4: Implementation of the Leader approach

5.3.4.1.

L o c a l d e v e l o p m e n t s t r a t e g i e s

— procedure and timetable for selecting the local action groups, including objective selection criteria and
planned indicative number of local action groups and planned percentage of rural territories covered by
local development strategies,

— justification for selection of areas whose population falls outside the limits set out in Article 37(3),

— procedure for the selection of operations by the local action groups,

— description of the financial circuits applicable for local action groups.

5.3.4.2.

I n t e r - t e r r i t o r i a l a n d t r a n s n a t i o n a l c o o p e r a t i o n

— Procedure, timetable and objective criteria to select inter-territorial and transnational cooperation projects.

5.3.4.3.

R u n n i n g
t e r r i t o r y

t h e

l o c a l

a c t i o n g r o u p ,

a c q u i r i n g

s k i l l s

a n d a n i m a t i n g

t h e

— limit to apply on the share of the local action group budget for running the local action groups,

— indicative estimate of expenditure under Article 59(a) to (d) of Regulation (EC) No 1698/2005 which will

be used for skills acquisition and animation for the Leader axis.

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6.

A financing plan, comprising two tables

(Article 16(d) of Regulation (EC) No 1698/2005)

6.1.

Annual Contribution from the EAFRD (in EUR)

Year

2007

2008

2009

2010

2011

2012

2013

Total EAFRD

Convergence regions (*)

(*) For Member States with convergence and non-convergence regions.

6.2.

Financial plan by axis (in EUR total period) (1)

Axis

Total public

EAFRD contribution rate
(%)

EAFRD amount

Public contribution

Axis 1

Axis 2

Axis 3

Axis 4

Technical Assistance

Total

NB: Transitional expenditure according to the first indent of point 5.2 of this Annex shall be integrated in the
tables in points 6.1, 6.2 and point 7. For the identification of such expenditure Member States shall use
the correlation table in Annex II to Regulation (EC) No 1320/2006.

7.

Indicative breakdown by Rural Development Measure (in EUR, total period)

Measure/Axis

Public expenditure

Private expenditure

Total Cost

Measure 111

Measure 112

Measure 121

Measure 1 …

Measure 211

Measure 212

Measure 221

Measure 2 …

Total Axis 1

Total Axis 2

(1) In so far the rural development programme covers different types of regions and the EAFRD co-financing rates are differentiated, table
6.2 needs to be repeated for each type of region: Convergence Objective regions, Outermost regions and smaller Aegean Islands, other
regions.

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Measure/Axis

Public expenditure

Private expenditure

Total Cost

Measure 311

Measure 312

Measure 321

Measure 3 …

Total Axis 3

41

Local development strategies:

— 411 Competitiveness
— 412 Environment/land

management
— 413 Quality of life/diversifi-

cation

421 Cooperation:

431 Running costs, skills acquisition,

animation

Total Axis 4 (1)

Total axes 1, 2, 3 and 4

511 Technical Assistance

of which amount for the
national rural network (where
relevant):

(a) running costs

(b) action plan

Grand total

(1) In order to verify compliance with Article 17 of Regulation (EC) No 1698/2005 the distribution key between axes resulting

from the local development strategies will be applied to the total allocation of axis 4.

The consolidated financial table and the indicative initial measure table must follow the structure of the tables
in points 6.1, 6.2 and point 7 and the order of the following list:

The different measures are codified as follows:

(111) vocational training,

information actions,

including diffusion of scientific knowledge and innovative

practices for persons engaged in the agricultural, food and forestry sectors;

(112) setting up of young farmers;

(113) early retirement of farmers and farm workers;

(114) use by farmers and forest holders of advisory services;

(115) setting up of farm management, farm relief and farm advisory services, as well as forestry advisory

services;

(121)

farm modernisation;

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(122)

improving the economic value of the forest;

(123) adding value to agricultural and forestry products;

(124) cooperation for development of new products, processes and technologies in the agricultural and food

sector;

(125)

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

(126)

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

(131) helping farmers to adapt to demanding standards based on Community legislation;

(132) supporting farmers who participate in food quality schemes;

(133) supporting producer groups for information and promotion activities for products under food quality

schemes;

(141) supporting semi-subsistence farms undergoing restructuring;

(142) setting up of producer groups;

(211) natural handicap payments to farmers in mountain areas;

(212) payments to farmers in areas with handicaps, other than mountain areas;

(213) Natura 2000 payments and payments linked to Directive 2000/60/EC;

(214) agri-environmental payments;

(215) animal welfare payments;

(216) support for non-productive investments;

(221)

first afforestation of agricultural land;

(222)

first establishment of agroforestry systems on agricultural land;

(223)

first afforestation of non-agricultural land;

(224) Natura 2000 payments;

(225)

forest environment payments;

(226)

restoring forestry potential and introducing prevention actions;

(227) support for non-productive investments;

(311) diversification into non-agricultural activities;

(312) support for the creation and development of micro-enterprises;

(313) encouragement of tourism activities;

(321) basic services for the economy and rural population;

(322) village renewal and development;

(323) conservation and upgrading of the rural heritage;

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(331)

training and information for economic actors operating in the fields covered by Axis 3;

(341) skills acquisition and animation with a view to preparing and implementing a local development

strategy;

(41)

local development strategies;

(411) competitiveness;

(412) environment/land management;

(413) quality of life/diversification;

(421)

transnational and inter-regional cooperation;

(431)

running the local action group, skills acquisition, animation;

(511)

technical assistance.

8.

Where applicable, a table on additional national financing per axis, distinguishing the measures
concerned as identified in Regulation (EC) No 1698/2005

Additional national financing (Article 16(f) of Regulation (EC) No 1698/2005)

Table

(In Euro, total period)

Axis 1

Measure 111
…

Total Axis 1

Axis 2

Measure 211
…

Total Axis 2

Axis 3

Measure 311
…

Total Axis 3

Axis 4

Measure 411
…

Total Axis 4

Total Axis 1, Axis 2, Axis 3, Axis 4

9.

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

(Article 16(g) of Regulation (EC) No 1698/2005)

Elements under points A and B for state aid rules and procedures must be valid over the entire life cycle of the
programme and cover both the initial submission and subsequent changes thereof.

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A. For measures and operations falling within the scope of Article 36 of the Treaty, either:

— indicate whether support will be granted in respect of Commission Regulation (EC) No 1860/2004 (1)

on de minimis support in the agriculture sector; or

— provide the registration number and the reference to the Commission exemption Regulation adopted
on the basis of Council Regulation (EC) No 994/98 (2) under which the measure was introduced; or

— provide the case number and reference number under which the measure has been declared compatible

with the Treaty by the Commission; or

— submit the relevant information sheet annexed to Commission Regulation (EC) No 794/2004 (3).

B. For the measures pursuant to Articles 25, 27 (for the latter only for additional national funding referred to
in Article 89 of Regulation (EC) No 1698/2005) and 52 of Regulation (EC) No 1698/2005 and operations
under the measures pursuant to Articles 28 and 29 of that Regulation which fall outside the scope of
Article 36 of the Treaty, either:

— indicate whether support will be granted in respect of Commission Regulation (EC) No 69/2001 (4) on

de minimis support; or

— list the registration number and the reference to the Commission exemption Regulation adopted on the

basis of Regulation (EC) No 994/98 under which the measure was introduced; or

— provide the case number and reference number under which the measure has been declared compatible

with the Treaty by the Commission; or

— indicate for what other reasons the aid scheme concerned shall constitute existing aid within the
meaning of Article 1(b) of Regulation (EC) No 659/1999 including existing aid measures within the
meaning of the Accession Treaties.

Those measures must be provided in the format of State aid table, as set out below:

C. Format of State aid table, to be attached to each rural development programme

Measure code

Name of the aid scheme

Indication of lawfulness
of the scheme (*)

Duration of aid scheme

(*) To indicate respectively:

— For the measures covered by a de minimis Regulation: ‘Any aid granted under this measure will be in conformity

with the de minimis Regulation (EC) No […]’,

— For approved aid schemes: reference to Commission State aid approval decision, including State aid number and

references of approval letter,

— For Block Exempted aid: reference to the individual Block Exemption Regulation and the registration number,
— For other existing aid measures:

(a) in the case of the Member States that acceded to the Community on 1 May 2004 and on 1 January 2007 ‘the
new Member States’]: (1) ‘none’ for pre-1995 aid; (2) reference to the measure's number on the Accession
Treaty list, (3) reference to the ‘interim procedure’ no objections letter,

(b) for other cases of existing aid: please indicate the applicable relevant justification.

The State aid table shall be accompanied by a commitment from the Member State that any cases of
application of the schemes enumerated in point B for which individual notifications are required under
State aid rules or under conditions and commitments laid down in the respective State aid approval
decision, will be notified individually pursuant to Article 88(3) of the Treaty.

(1) OJ L 325, 28.10.2004, p. 4.
(2) OJ L 142, 14.5.1998, p. 1.
(3) OJ L 140, 30.4.2004, p. 1.
(4) OJ L 10, 13.1.2001, p. 30.

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10.

Information on the complementarity with the measures financed by the other Common Agricultural
Policy instruments, through Cohesion policy as well as by the European Fisheries Fund

(Article 5, Article 16(h) and Article 60 of Regulation (EC) No 1698/2005)

10.1.

Appraisal of and means for the complementarity with:

— activities, policies and priorities of the Community,

in particular with the objectives of Economic and

Social cohesion and those of the European Fisheries Fund,

— measures financed by the EAGF or other instruments in the sectors listed in Annex I to this Regulation.

10.2.

In relation with Axes 1, 2 and 3 measures:

— Demarcation criteria for the measures which target operations also eligible under another Community

support instrument, in particular structural funds and the European Fisheries Fund.

10.3.

In relation with Axis 4 measures:

— Demarcation criteria for the local development strategies falling within Axis 4 in relation to local devel-
opment strategies implemented by ‘Groups’ under the European Fisheries Fund and for cooperation in
relation to the Cooperation Objective under the Structural Funds.

10.4.

Where relevant, information on the complementarity with other Community financial instruments shall be
supplied.

11.

Designation of competent authorities and bodies responsible

(Article 16(i)(i) of Regulation (EC) No 1698/2005)

— Designation by the Member State of all the authorities provided for in Article 74(2) of Regulation (EC)
No 1698/2005 and for information a summary description of their management and control structure.

12.

A description of the monitoring and evaluation systems, as well as the envisaged composition of the
Monitoring Committee

(Article 16 (i)(ii) and Article 77 of Regulation (EC) No 1698/2005)

12.1.

A description of the monitoring and evaluation systems

These will be constructed on the basis of the common list of output, result, baseline and impact indicators of
the rural development programme, included in the CMEF in Annex VIII and the other elements referred to in
Article 62(3). Each rural development programme shall specify additional indicators reflecting national and/or
regional needs, conditions and objectives specific to the programme area. The data gathered for the indicators
could be inspired from standards developed by the Global Earth Observation System of Systems (GEOSS) or
Community projects such as the Global Monitoring for Environment and Security (GMES).

12.2.

The envisaged composition of the Monitoring Committee

13.

Provisions to ensure that the programme is publicised

(Article 76 of Regulation (EC) No 1698/2005)

Describe the communication plan and the elements included in Article 58 of this Regulation and Annex VI
thereto:

13.1.

Actions foreseen to inform potential beneficiaries, professional organisations, the economic, social and en-
vironmental partners, bodies involved in promoting equality between men and women and the non-
governmental organisations, of the possibilities offered by the programme and the rules for gaining access
to programme funding.

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13.2.

Actions foreseen to inform the beneficiaries of the Community contribution.

13.3.

Actions to inform the general public about the role played by the Community in the programmes and the
results thereof.

14.

The designation of the partners consulted and the results of the consultation

(Article 6 and Article 16(j) of Regulation (EC) No 1698/2005)

14.1.

The designation of the partners consulted

List of the consulted competent regional, local authorities and other public authorities, the economic and
social partners and any other appropriate body representing civil society, non-governmental organisations,
including environmental organisations, and bodies responsible for promoting equality between men and
women.

14.2.

The results of the consultation

Supply a summary of the results of consultations including the dates of consultation and the time given to
comment and contribute to the programme preparation and indicate the extent to which the views and advice
received have been taken into account.

15.

Equality between men and women and non-discrimination

(Article 8 of Regulation (EC) No 1698/2005)

15.1.

Describe how equality between men and women will be promoted at the various stages of programme
implementation (design, implementation, monitoring and evaluation).

15.2.

Describe how any discrimination based on sex, racial or ethnic origin, religion or beliefs, disability, age or
sexual orientation is prevented during the various stages of programme implementation.

16.

Technical assistance operations

(Article 66(2) and Article 68 of Regulation (EC) No 1698/2005)

16.1.

Description of the preparation, management, monitoring, evaluation, information and control activities of programme
assistance financed by technical assistance.

16.2.

National rural network

— list of organisations and administrations involved in rural development which will form part of the

national rural network;

— procedure and timetable for establishing the national rural network;

— summary description of the main categories of activity to be undertaken by the national rural network.
These activities will form the basis of the action plan to be drawn up by the managing authority and
supported under Article 68(2)(b) of Regulation (EC) No 1698/2005;

— amount reserved for establishing and operating the national rural network and implementing the action
plan as referred to in Article 68(2)(a) and (b) of Regulation (EC) No 1698/2005. Within this amount a
distinction must be made between the part covering the structure needed to run the network and the one
covering the action plan. The programme must contain provisions ensuring that the part of the amount
under that point (a) shall not unduly increase over time.

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B. SPECIFIC PROGRAMMES FOR NATIONAL RURAL NETWORKS (REFERRED TO IN ARTICLE 41(3)
AND (5))

Where, in accordance with the second subparagraph of Article 66(3) of Regulation (EC) No 1698/2005, Member States
with regional programmes submit for approval a specific programme for the establishment and the operation of national
rural networks, those programmes must include the following elements:

(a)

list of organisations and administrations involved in rural development which will form part of the national rural
network;

(b) procedure and timetable for establishing the national rural network;

(c) summary description of the main categories of activity to be undertaken by the national rural network. These
activities will form the basis of the action plan to be drawn up by the managing authority and supported under
Article 68(2)(b) of Regulation (EC) No 1698/2005;

(d) amount reserved for establishing and operating the national rural network and implementing the action plan as
referred to in Article 68(2)(a) and (b) of Regulation (EC) No 1698/2005 and the annual breakdown of the EAFRD
contribution which must be compatible with Article 69(1) of Regulation (EC) No 1698/2005;

(e) a financial table for the whole programming period of the following format (EUR current prices):

Total public expenditure

EAFRD contribution

Type of expenditure for the
national rural network

(a) for

running the structure of

the

national rural network

(b) for implementing the action plan of
the national rural network, including
its evaluation

Total

(f) designation of competent authorities and bodies responsible;

(g) description of the monitoring and evaluation system, as well as the envisaged composition of the Monitoring

Committee.

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ANNEX III

AID TO PRODUCER GROUPS IN MALTA

Support for the setting up of a producer group (Minimum amount referred to in Article 25(2))

EUR

63 000

63 000

63 000

60 000

50 000

Year

1st year

2nd year

3rd year

4th year

5th year

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ANNEX IV

THRESHOLDS FOR ENDANGERED BREEDS (REFERRED TO IN ARTICLE 27(4))

Eligible farm animal species

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

Cattle

Sheep

Goat

Equidae

Pigs

Avian

7 500

10 000

10 000

5 000

15 000

25 000

(*) Number, calculated for all Member States, of breeding females of the same breed available for pure-bred reproduction registered in a
herd book kept by an approved breeding organisation recognised by the Member State in accordance with Community zootechnical
legislation.

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TABLE OF CONVERSION OF ANIMALS TO LIVESTOCK UNITS (REFERRED TO IN ARTICLE 27(13))

ANNEX V

Bulls, cows and other bovine animals over two years,
equine animals over six months

Bovine animals from six months to two years

Bovine animals below six months

Sheep

Goats

Breeding sows > 50 Kg

Other pigs

Laying hens

Other poultry

1,0 LU

0,6 LU

0,4 LU

0,15 LU

0,15 LU

0,5 LU

0,3 LU

0,014 LU

0,003 LU

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ANNEX VI

INFORMATION AND PUBLICITY ON ASSISTANCE FROM THE EAFRD (REFERRED TO IN ARTICLE 58(3))

1.

Information measures for potential beneficiaries and for beneficiaries

1.1. Information measures for potential beneficiaries

With a view to transparency, the managing authorities shall disseminate the most comprehensive information
possible on the financing opportunities offered by joint assistance from the Community and the Member States
in the rural development programme.

To that end, the managing authority shall ensure that the rural development programme is published widely, with
details of the financial contributions from the EAFRD, and that it is supplied to all interested applicants.

The managing authority shall provide the potential beneficiaries with clear, detailed and updated information on the
following:

(a) the administrative procedures to be followed in order to qualify for financing under an rural development

programme;

(b) a description of the procedures for examining applications for financing;

(c)

the eligibility conditions and/or criteria for selecting and evaluating the projects to be financed;

(d) the names of persons or contacts at national, regional or local level who can explain the way rural development

programmes work and the criteria for selecting and evaluating the operations.

The managing authority shall ensure that bodies that can act as relays are involved in the information measures for
potential beneficiaries, and in particular:

(a)

local and regional authorities;

(b) professional organisations;

(c) economic and social partners;

(d) non-governmental organisations, especially bodies promoting equality between men and women and bodies

working to protect the environment;

(e)

information centres on Europe;

(f) Commission representations in the Members States.

The managing authority shall inform potential beneficiaries of the publication provided for in point 2.1.

1.2. Information measures for beneficiaries

The managing authority shall ensure that the notification of award of the assistance informs beneficiaries that the
action is being financed from a programme part-financed by the EAFRD and the priority axis of the rural devel-
opment programme concerned.

2.

Information and publicity measures for the public

The managing authority for the rural development programme and the beneficiaries shall take all steps to provide
information and publicity for the public on measures financed under a rural development programme in accordance
with this Regulation.

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2.1. Responsibilities of the managing authorities

The managing authority shall inform the public of the rural development programme's adoption by the Commission
and its updates, the main achievements in the implementation of the programme and its closure.

Starting from 2008 the managing authority shall publish at least annually, electronically or otherwise the list of
beneficiaries receiving support from the rural development programmes, the names of the operations and the
amounts of public contributions allocated to these operations.

The information measures shall be implemented by the managing authority using all media at the appropriate
territorial level. They shall also involve communication campaigns, hard-copy and electronic publications and any
other medium regarded as suitable.

The measures for informing the public shall include the elements set out in point 3.1.

2.2. Responsibilities of beneficiaries

Where an operation under a rural development programme results in an investment (for example, on a farm or on
food enterprise) whose total cost exceeds EUR 50 000, the beneficiary shall place an explanatory plaque.

A billboard shall be erected at the sites of infrastructures whose total cost exceeds EUR 500 000.

An explanatory plaque shall also be installed in the locations of the local action groups financed by Axis 4.

The billboards and plaques shall carry a description of the project/operation and the elements mentioned in point
3.1. That information shall take up at least 25 % of the billboard or plaque.

3.

Technical characteristics of information and publicity actions

3.1. Slogan and logo

Each action of information and publicity shall contain the following elements:

— The European flag in accordance with the graphic standards set out in point 4, together with an explanation of

the Community's role, by means of the following statement:

‘The European Agricultural Fund for Rural Development: Europe investing in rural areas’.

— For the actions and measures financed by the Leader Axis, the Leader logo shall also be used.

3.2. Information and communication material

— Publications (such as booklets, leaflets and newsletters) and posters about measures and actions part-financed by
the EAFRD shall contain a clear indication on the title page of the Community’s participation, as well as the
Community emblem if the national or regional emblem is also used. Publications shall include references to the
body responsible for the information content and to the managing authority designated to implement the
assistance package in question.

— In the case of information made available by electronic means (websites, databases for potential beneficiaries) or
as audio-visual material, the first indent shall apply by analogy. In drawing the communication plan, due regard
must be had to new technologies which permit the rapid and efficient distribution of information and facilitate a
dialogue with the general public.

Websites concerning the EAFRD shall:

— mention the contribution of the EAFRD at least on the home page;

— include a hyperlink to the Commission website concerning EAFRD.

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4.

Instructions for creating the emblem and a definition of the standard colours

4.1. European flag

Symbolic description

Against a background of blue sky, 12 golden stars form a circle representing the union of the peoples of Europe.
The number of stars is fixed, 12 being the symbol of perfection and unity.

In projects financed by the EAFRD, the name of this Fund shall appear under the European flag.

Heraldic description

On an azure field a circle of 12 golden mullets, their points not touching.

Geometric description

The emblem has the form of a blue rectangular flag of which the fly is one and a half times the length of the hoist.
12 gold stars situated at equal intervals form an invisible circle whose centre is the point of intersection of the
diagonals of the rectangle. The radius of the circle is equal to one third of the height of the hoist. Each of the stars
has five points which are situated on the circumference of an invisible circle whose radius is equal to one eighteenth
of the height of the hoist. All the stars are upright, therefore with one point vertical and two points in a straight line
at right angles to the mast. The circle is arranged so that the stars appear in the position of the hours on the face of
a clock. Their number is invariable.

Regulation colours

The emblem is in the following colours:

PANTONE REFLEX BLUE for the surface of
the rectangle; PANTONE
YELLOW for the stars. The international PANTONE range is very widely
available and easily accessible even for non-professionals.

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Four-colour process:

If the four-colour process is used, the two standard colours cannot be used.
They must therefore be recreated using the four colours of the four-colour
process. PANTONE YELLOW is obtained by using 100 % ‘Process Yellow’.
Mixing 100 % ‘Process Cyan’ and 80 % ‘Process Magenta’ gives a colour that is
very similar to PANTONE REFLEX BLUE.

Internet:

In the web-palette PANTONE REFLEX BLUE corresponds to colour RGB:0/
0/153 (hexadecimal: 000099) and PANTONE YELLOW to colour RGB:255/
204/0 (hexadecimal: FFCC00).

Monochrome reproduction process:

If only black is available, outline the rectangle in black
and print the stars in black and white.

Where blue is the only colour available (it must be
Reflex Blue, of course), use 100 % with the stars
reproduced in negative white and the field 100 % blue.

Reproduction on a coloured background:

The emblem should preferably be reproduced on a white
background. Avoid a background of varied colours, and
in any case one that does not go with blue. If there is no
alternative to a coloured background, put a white border
around the rectangle,
the border being
the width of
1/25th of the height of the rectangle.

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4.2. Leader logo

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ANNEX VII

A. STRUCTURE AND CONTENT OF ANNUAL PROGRESS REPORTS OF RURAL DEVELOPMENT
PROGRAMMES (ARTICLE 60)

1. Changes to the general conditions (Article 82(2)(a) of Regulation (EC) No 1698/2005):

— Changes to the general conditions having a direct impact on the conditions for implementing the programme

(namely legislative changes or unexpected socio-economic developments)

— Change to Community and national policies affecting consistency between the EAFRD and other financial

instruments

2. The progress of the programme in relation to the objectives set, on the basis of output and result indicators

(Article 82(2)(b) of Regulation (EC) No 1698/2005):

An analysis of the achievements as measured by monitoring indicators including a qualitative analysis on the progress
achieved in relation to the targets set out initially shall be given. The list of indicators (output and result) as set out in
Annex VIII to this Regulation is to be used. Along with these indicators which make part of the CMEF, additional
indicators specific to the programme to effectively monitor progress towards its objectives shall also be included.

3. 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 (Article 82(2)(c) of Regulation (EC) No 1698/2005).

The table summarising the financial implementation of the programme shall have at least the following information:

Axes/measures

Annual payments-year N

(in Euro)

Cumulative payments from
year 2007 to year N

Axis 1

Measure 111
— of which transitional expenditure according

to Regulation (EC) No 1320/2006

Measure …
— of which transitional expenditure according

to Regulation (EC) No 1320/2006

Total Axis 1
— of which transitional expenditure according

to Regulation (EC) No 1320/2006

Axis 2

Measure 211
— of which transitional expenditure according

to Regulation (EC) No 1320/2006

Measure …
— of which transitional expenditure according

to Regulation (EC) No 1320/2006

Total Axis 2
— of which transitional expenditure according

to Regulation (EC) No 1320/2006

Axis 3

Measure 311
— of which transitional expenditure according

to Regulation (EC) No 1320/2006

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Axes/measures

Annual payments-year N

(in Euro)

Cumulative payments from
year 2007 to year N

Measure…
— of which transitional expenditure according

to Regulation (EC) No 1320/2006

Total Axis 3
— of which transitional expenditure according

to Regulation (EC) No 1320/2006

Axis 4

Measure 411
— of which transitional expenditure according

to Regulation (EC) No 1320/2006

Measure 4…
— of which transitional expenditure according

to Regulation (EC) No 1320/2006

Total Axis 4
— of which transitional expenditure according

to Regulation (EC) No 1320/2006

Technical Assistance
— of which transitional expenditure according

to Regulation (EC) No 1320/2006

Total programme
— of which transitional expenditure according

to Regulation (EC) No 1320/2006

A separate table with at least the same information shall be established for the regions covered by the Convergence
Objective, as well as a table consolidated at programme-level for programmes covering both Convergence and non-
Convergence regions.

4. A summary of the ongoing evaluation activities in accordance with Article 86(3) of Regulation (EC) No

1698/2005 (Article 82(2)(d) of Regulation (EC) No 1698/2005)

A summary of the ongoing evaluation activities, established on the basis of the reporting to the Monitoring Committee
in accordance with Article 86(3) of Regulation (EC) No 1698/2005, including the activities related notably to the
elements referred to in Articles 84(5) and 86(1) and (2) of that Regulation.

5. The steps taken by the Managing Authority and the Monitoring Committee to ensure the quality and
effectiveness of programme implementation (Article 82(2)(e) of Regulation (EC) No 1698/2005), in particular:

(i) monitoring and evaluation measures

(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 of Regulation (EC) No 1698/2005

(iii) use of technical assistance

In case of coverage under the programme technical assistance of the establishment and functioning of national
rural networks, the annual progress report shall describe the procedures for setting up and running the network
and the state-of-play of the implementation of the action plan. It shall also indicate how expenditure was carried
out
(distinction between the elements covered by points (a) and (b) of Article 68(2) of Regulation (EC)
No 1698/2005).

(iv) steps taken to ensure that the programme is publicised in accordance with Article 76 of Regulation (EC)

No 1698/2005

The report shall include summary descriptions for information and publicity taken to provide information on the rural
development programme in accordance with Article 58 of this Regulation and Annex VI thereto.

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6. 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 (Article 82(2)(f) of Regulation (EC)
No 1698/2005)

This compliance with the Community law shall
in particular cover the respect of rules on competition, public
procurement, environmental protection and improvement, and promotion of gender equality and non-discrimination.

7. Where applicable, re-utilisation of aid recovered under Article 33 of Regulation (EC) No 1290/2005 (Article

82(2)(g) of Regulation (EC) No 1698/2005)

B. FORMAT OF ANNUAL PROGRESS REPORTS FOR SPECIFIC PROGRAMMES COVERING NATIONAL
RURAL NETWORKS (‘NRN’) (ARTICLE 60)

Where Member States make use of the possibility provided for in the second subparagraph of Article 66(3) of Regulation
(EC) No 1698/2005 the annual progress reports of the specific programmes shall include:

(a) a description of the procedures for setting up and running the network,

(b) the state-of-play of the implementation of the action plan,

(c) a financial table showing the financial implementation of the programme and distinguishing between the elements

covered by points (a) and (b) of Article 68(2) of Regulation (EC) No 1698/2005:

Type of expenditure for NRN

Annual payments-year N

Cumulative payments from
year 2007 to year N

(a) for running the structure of the national rural

network

(b) for

implementing the action plan of

the

national rural network

Total

(d) information, as appropriate, covered by points 4 to 7 of part A of this Annex.

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ANNEX VIII

LIST OF COMMON BASELINE, OUTPUT, RESULT AND IMPACT INDICATORS

I. COMMON BASELINE INDICATORS

1. Baseline indicators related to objectives

AXIS

Horizontal

AXIS 1,
Improving the competitiveness of
the agricultural and forestry sector

AXIS 2,
Improving the
the
management

countryside

environment
through

and
land

Indicator

(*) 1

(*) 2

(*) 3

(*) 4

Economic development

Employment rate

Unemployment

Training and education in agriculture

5

Age structure in agriculture

(*) 6

Labour productivity in agriculture

7

8

9

Gross fixed capital formation in agriculture

Employment development of primary sector

Economic development of primary sector

(*) 10

Labour productivity in food industry

11

12

13

Gross fixed capital formation in food industry

Employment development in food industry

Economic development of food industry

(*) 14

Labour productivity in forestry

15

16

Gross fixed capital formation in forestry

Importance of semi-subsistence farming in New Member States

(*) 17

Biodiversity: Population of farmland birds

(*) 18

Biodiversity: High nature value farmland and forestry

19

Biodiversity: Tree species composition

(*) 20 Water quality: Gross Nutrient Balances

21 Water quality: Pollution by nitrates and pesticides

22

23

(*) 24

25

26

Soil: Areas at risk of soil erosion

Soil: Organic farming

Climate change: Production of renewable energy from agriculture
and forestry

Climate change: UAA devoted to renewable energy

Climate change/air quality: gas emissions from agriculture

AXIS 3,
Improving the quality of life in rural
areas
and encouraging diversifi-
cation of economic activity

(*) 27

Farmers with other gainful activity

(*) 28

Employment development of non-agricultural sector

(*) 29

Economic development of non-agricultural sector

(*) 30

Self-employment development

31

Tourism infrastructure in rural area

(*) 32

Internet take-up in rural areas

(*) 33

Development of services sector

34

Net migration

(*) 35

Lifelong learning in rural areas

Leader

(*) 36

Development of Local Action Groups

(*) Refers to LEAD indicators in the framework of the national strategy and strategic monitoring foreseen in Article 11(3)c and 13(2)A

of Regulation (EC) No 1698/2005.

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2. Baseline indicators related to context

AXIS

Indicator

Horizontal

AXIS 1,
Improving the competitiveness of the
agricultural and forestry sector

AXIS 2,
Improving the environment and the
countryside through land management

1

2

3

4

5

6

7

8

9

10

11

12

13

Designation of rural areas

Importance of rural areas

Agricultural land use

Farm structure

Forestry structure

Forest productivity

Land cover

Less favoured areas

Areas of extensive agriculture

Natura 2000 area

Biodiversity: Protected forest

Development of forest area

Forest ecosystem health

14 Water quality

15 Water use

AXIS 3,
Improving the quality of life in rural
areas and encouraging diversification
of economic activity

16

17

18

19

20

21

22

23

Protective forests concerning primarily soil and water

Population density

Age structure

Structure of the Economy

Structure of Employment

Long-term unemployment

Educational attainment

Internet Infrastructure

II. COMMON OUTPUT INDICATORS

AXIS 1 IMPROVING THE COMPETITIVENESS OF THE AGRICULTURAL AND FORESTRY SECTOR

Measure

Output Indicators (*)

Code

111

Vocational training and information
actions

112

Setting up of young farmers

113

Early retirement

114

Use of advisory services

— Number of participants in training
— Number of training days received

— Number of assisted young farmers
— Total volume of investments

— Number of farmers early retired
— Number of farm workers early retired
— Number of hectares released

— Number of farmers supported
— Number of forest holders supported

115

121

Setting up of management, relief and
advisory services

Modernisation of agricultural
holdings

— Number of newly set up management, relief or advisory

services

— Number of farm holdings that received investment support
— total volume of investments

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Code

122

123

124

125

126

131

132

133

141

142

Measure

Output Indicators (*)

Improvement of the economic value
of forests

— Number of forest holdings that received investment support
— Total volume of investments

Adding value
forestry products

to agricultural

and

— Number of enterprises supported
— Total volume of investments

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

— Number of cooperation initiatives supported

Infrastructure related to the devel-
opment and adaptation of agriculture
and forestry

— Number of operations supported
— Total volume of investments

agricultural
damaged

production
Restoring
potential
natural
disasters and introducing appropriate
prevention actions

by

— Supported area of damaged agricultural land
— Total volume of investments

Meeting
Community legislation

standards

based

on

— Number of beneficiaries

Participation of
quality schemes

farmers

in food

— Number of supported farm holdings participating in a quality

scheme

Information and promotion activities — Number of supported actions

Semi-subsistence farming

— Number of semi-subsistence farm holdings supported

Producer groups

— Number of supported producer groups
— Turnover of supported producer groups

(*) For each measure, number of applications received and number of applications approved will be provided.

AXIS 2 IMPROVING THE ENVIRONMENT AND THE COUNTRYSIDE THROUGH LAND MANAGEMENT

Code

211

212

Measure

Output Indicators (*)

Natural
farmers in mountain areas

handicap

payments

to

Payments to farmers in areas with
handicaps, other than mountain areas

— Number of supported holdings in mountain areas
— Supported agricultural land in mountain areas
— Number of supported holdings in areas with handicaps, other

than mountain areas

— Agricultural

land area supported in areas with handicaps,

other than mountain areas

213

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

— Number of supported holdings in Natura 2000 areas/under

Water Framework Directive

214

Agri-environment payments

— Number of

farm holdings and holdings of other

land

— Supported agricultural land under Natura 2000/under Water

Framework Directive

managers receiving support

— Total area under agri-environmental support
— Physical area under agri-environmental support under this

measure

— Total Number of contracts
— Number of actions related to genetic resources
— Number of farm holdings receiving support
— Number of animal welfare contracts

215

Animal welfare payments

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Code

Measure

Output Indicators (*)

216

Non-productive investments

— Number of

farm holdings and holdings of other

land

managers receiving support
— Total volume of investments

221

First afforestation of agricultural land — Number of beneficiaries receiving afforestation aid

222

223

First
establishment of
systems on agricultural land

agroforestry

First afforestation of non-agricultural
land

224

Natura 2000 payments

225

Forest-environment payments

226

Restoring forestry potential and intro-
ducing prevention actions

227

Non-productive investments

— Number of ha afforested land
— Number of beneficiaries
— Number of ha under new agroforestry systems
— Number of beneficiaries receiving afforestation aid
— Number of ha of afforested land
— Number of forest holdings receiving aid in Natura 2000 area
— Supported forest land (ha) in Natura 2000 area
— Number of forest holdings receiving support
— Total forest area under forest environment support
— Physical forest area under forest environment support
— Number of Contracts
— Number of prevention/restoration actions
— Supported area of damaged forests
— Total volume of investments
— Number of supported forest holders
— Total volume of investments

(*) For each measure, number of applications received and number of applications approved will be provided.

AXIS 3 IMPROVING THE QUALITY OF LIFE IN RURAL AREAS AND ENCOURAGING DIVERSIFICATION OF
ECONOMIC ACTIVITY

Code

311

312

313

321

Measure

Output indicators (*)

Diversification into non-agricultural
activities

— Number of beneficiaries
— Total volume of investments
— Number of micro-enterprises supported/created

Business creation and development
Encouragement of tourism activities — Number of new tourism actions supported

Basic services for the economy and
rural population

322

Village renewal and developmen

323

Conservation and upgrading of
rural heritage

the

331

Training and information

341

acquisition,

Skills
and
implementation of local development
strategies

animation

— Total volume of investments
— Number of supported actions
— Total volume of investments
— Number of villages where actions took place
— Total volume of investments
— Number of rural heritage actions supported
— Total volume of investments
— Number of participating economic actors

activities

to supported

— Number of days of training received by participants
— Number of skills acquisition and animation actions
— Number of participants in actions
— Number of public-private partnerships supported

(*) For each measure, number of applications received and number of applications approved will be provided.

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AXIS 4 LEADER

Code

41

Measure

Output indicators (*)

Implementing local development
strategies

411 — competitiveness

412 — environment/land

management

— Number of local action groups (‘LAG’)

— Total size of the LAG area (km2)

— Total population in LAG area

— Number of projects financed by LAGs

413 — quality of life/diversification

— Number of beneficiaries supported

421

Implementing cooperation projects

— Number of cooperation projects

431

the

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

— Number of cooperating LAGs

— Number of actions supported

(*) For each measure, number of applications received and number of applications approved will be provided.

III. COMMON RESULT INDICATORS

Axis/Objective

Indicator

Improving the competitiveness of the agri-
cultural and forestry sector

(1) Number of participants that successfully ended a training activity

related to agriculture and/or forestry

Improving
and
the countryside through land management

environment

the

Improving the quality of life in rural areas
and
of
economic activity

diversification

encouraging

(2)

Increase in gross value added in supported holdings/enterprises

(3) Number of holdings/enterprises introducing new products and/or

new techniques

(4) Value of agricultural production under recognized quality label/

standards

(5) Number of farms entering the market

(6) Area under successful land management contributing to:

(a) biodiversity and high nature value farming/forestry

(b) water quality

(c) climate change

(d) soil quality

(e) avoidance of marginalisation and land abandonment

(7)

Increase in non-agricultural gross value added in supported busi-
nesses

(8) Gross number of jobs created

(9) Additional number of tourists

(10) Population in rural areas benefiting from improved services

(11)

Increase in Internet penetration in rural areas

(12) Number of participants that successfully ended a training activity

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IV. COMMON IMPACT INDICATORS

Indicator

1

2

3

4

5

6

7

Economic growth

Employment creation

Labour productivity

Reversing biodiversity decline

Maintenance of high nature value farmland and forestry

Improvement in water quality

Contribution to combating climate change