Council Regulation (EC) No 2012/2006 of 19 December 2006 amending and correcting Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers and amending Regulation (EC) No 1698/2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD)
Date: 2006-12-19
Institutions: Council of the European Union
Subjects: EU aid, aid system, aid to agriculture, common agricultural policy, farmers' income, fund (EU), rural development

L 384/8

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Official Journal of the European Union

29.12.2006

COUNCIL REGULATION (EC) No 2012/2006

of 19 December 2006

amending and correcting Regulation (EC) No 1782/2003 establishing common rules for direct
support schemes under the common agricultural policy and establishing certain support schemes
for farmers and amending Regulation (EC) No 1698/2005 on support for rural development by the
European Agricultural Fund for Rural Development (EAFRD)

THE COUNCIL OF THE EUROPEAN UNION,

(4)

Having regard to the Treaty
establishing the European
Community, and in particular Article 36 and the third subpar-
agraph of Article 37(2) thereof,

Having regard to the Treaty of Accession of the Republic of
Bulgaria and Romania, and in particular Article 4(3) thereof,

Having regard to the Act of Accession of
the Republic of
Bulgaria and Romania (hereinafter referred to as ‘the 2005
Act of Accession’), and in particular Article 56 thereof,

Having regard to the proposal from the Commission,

Having regard to the Opinion of the European Parliament,

Whereas:

(1)

(2)

(3)

Regulation (EC) No 1782/2003 (1) established common
rules for direct support schemes under the common
agricultural policy and certain support
for
farmers.

schemes

Articles 42(8)
and 71d(6) of Regulation (EC) No
1782/2003 prohibit the transfer of entitlements estab-
lished using the national
in cases of
inheritance. In cases of mergers and scissions it is also
appropriate to allow farmers to bring payment enti-
tlements allocated from the national reserve into the
resulting new holding or holdings.

reserve except

Experience shows that for a decoupled income support
the rules governing the eligibility of agricultural areas
is appropriate to
may be simple.
simplify the rules applicable to the single payment
scheme for agricultural areas planted with olive trees.

In particular,

it

(5)

(6)

(7)

the application of

In Malta, a majority of farmers in the beef and veal sector
their disposal. Under these
do not have any land at
specific circumstances,
the special
conditions laid down in Article 71m of Regulation (EC)
No 1782/2003 could create serious difficulties for the
the beef and veal sector
sustainable development of
and an excessive administrative workload. It is appro-
for
priate to provide for
the
single payment
farmers
concerned in Malta.

simplified conditions
to the

scheme payments

and

Poland,

Slovakia

Slovenia

those Member States

Currently,
among the Czech
Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary,
Malta,
(hereinafter
referred to as ‘the new Member States’) that apply the
scheme are excluded from the
single area payment
Community aid for energy crops. The review of
the
energy crops scheme pursuant to Article 92 of Regu-
lation (EC) No 1782/2003 has shown that it is appro-
priate to extend the aid for energy crops to all Member
States as from 2007 and under the same conditions.
Therefore the maximum guaranteed area should be
increments
increased proportionally,
provided for the introduction of support schemes in
the new Member States should not apply to the energy
crops scheme and the rules governing the single area
payment scheme should be amended.

the schedule of

In order to strengthen the role of permanent energy
crops and to provide an incentive to increase the
production of
these crops, Member States should be
entitled to grant national aid up to 50 % of the costs
associated with establishing permanent crops for the
areas which have been subject to an application for the
aid for energy crops.

Sugar beet and cane producers in the new Member States
have benefited since accession from price support under
Council Regulation (EC) No 1260/2001 of 19 June 2001
on the common organisation of the markets in the sugar
sector (2). Therefore, the Community aid for sugar beet
and cane producers established in Chapter 10f of Regu-
lation (EC) No 1782/2003 should not be subject to the
application of the schedule of increments provided for in
Article 143a of that Regulation, with effect from the day
of application of
sugar beet and cane
producers. It is also appropriate to clarify the conditions
for the application of this aid and the calculation of the
payment to be granted to the farmers concerned.

the aid for

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

(2) OJ L 178, 30.6.2001, p. 1. Regulation as repealed by Regulation

lation (EC) No 1405/2006 (OJ L 265, 26.9.2006, p. 1).

(EC) No 318/2006 (OJ L 58, 28.2.2006 p. 1).

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Official Journal of the European Union

L 384/9

(8)

(9)

Experience shows that the single area payment scheme is
an efficient and simple system of granting decoupled
income support to farmers. For the sake of simplification
it is appropriate to allow the new Member States to
continue applying it until the end of year 2010. Never-
theless, it is not deemed appropriate to extend beyond
2008 the exemption, granted to Member States applying
the single area payment scheme, from the obligation to
introduce into cross-compliance statutory management
requirements. To ensure coherence of certain rural devel-
opment measures with this non-extension, Article 51 of
Regulation (EC) No 1698/2005 (1) should take account
thereof.

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 1782/2003 as amended, including by the
2005 Act of Accession, is hereby amended as follows:

1. Article 20 shall be amended as follows:

(a) paragraph 2 shall be replaced by the following:

Under normal circumstances, farmers may agree between
themselves the conditions under which the holding (or
part of the holding) having beneficiated from the separate
in the case of
sugar payment is transferred. However,
inheritance,
the
that
inheritor be granted the separate sugar payment.

to provide

appropriate

is

it

(10)

The 2005 Act of Accession and this Regulation both
amend Regulation (EC) No 1782/2003 and those
amendments should come into force on the same day.
In the interest of legal certainty, the order in which those
amendments are to be applied should be specified.

(11)

Regulations (EC) No 1782/2003 and (EC) No 1698/2005
should be amended accordingly.

(12)

to

introduced

amendments

that Annex

Council Regulation (EC) No 247/2006 of 30 January
2006 laying down specific measures for agriculture in
the outermost regions of the Union (2) amended Annex
I to Regulation (EC) No 1782/2003. Due to an error, the
entries for olive oil and hops did not take into account
the
by
Commission Regulation (EC) No 2183/2005 of 22
December 2005 amending Council Regulation (EC) No
1782/2003 establishing common rules for direct support
schemes under
the common agricultural policy and
establishing certain support schemes for farmers and
amending Regulation (EC) No 795/2004 laying down
detailed rules
the single
payment scheme provided for in Council Regulation
(EC) No 1782/2003. Annex I to Regulation (EC) No
1782/2003 should therefore be corrected accordingly,
with effect from the date of application of Regulation
(EC) No 2183/2005,

the implementation of

for

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

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

(2) OJ L 42, 14.2.2006, p. 1.

‘2.
For the Member states applying the aid for olive
groves provided for in Chapter 10b of Title IV, the
identification system shall include a geographical infor-
mation system for olive cultivation, consisting of a
computerised alphanumerical database and a compu-
terised graphical reference database for olive trees and
areas concerned.’;

(b) the following paragraph shall be added:

‘3. Member States not applying the aid for olive
groves provided for in Chapter 10b of Title IV may
decide to include the geographical information system
for olive cultivation referred to in paragraph 2 in the
identification system for agricultural parcels.’;

2. the second indent of Article 22(1) shall be replaced by the

following:

‘— in the case of an application for the aid for olive groves
provided for in Chapter 10b of Title IV, or where the
Member State is applying the option referred to in
Article 20(3), the number of olive trees and their posi-
tioning in the parcel,’;

3. the first subparagraph of Article 42(8) shall be replaced by

the following:

‘Except in the case of a transfer by actual or anticipated
inheritance and of mergers and scissions, and by way of
derogation from Article 46, the entitlements established
using the national reserve shall not be transferred for a
period of five years starting from their allocation. In the
case of a merger or scission, the farmer(s) managing the
new holding(s) shall keep the entitlements which were
originally allocated from the national reserve until
the
remaining part of the five-year period.’;

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4. the second subparagraph of Article 44(2) shall be replaced

10. the following subparagraph shall be added to Article 71m:

by the following:

‘ “Eligible hectare” shall also mean areas planted with hops
or being under a temporary resting obligation, or areas
under olive trees.’;

5. point (a) of Article 51 shall be replaced by the following:

‘However,
for Malta, the second subparagraph shall not
apply and the derogation provided for in the first subpar-
agraph shall apply without the condition that the farmer
maintain at least 50 % of the agricultural activity exercised
before
scheme
expressed in livestock units.’;

transition to the

single payment

the

‘(a) permanent crops, apart from olive trees or hops;’;

11. the following subparagraph shall be added to Article 88:

6. Article 56(4) shall be replaced by the following:

‘4. Member States shall be authorised to pay national aid
the costs associated with establishing
up to 50 % of
permanent crops intended for bio-mass production on
set-aside land.’;

‘Articles 143a and 143c shall not apply to the aid for
energy crops
constituted on
in the Community as
1 January 2007.’;

12. Article 89(1) shall be replaced by the following:

7. Article 60(1) shall be replaced by the following:

A maximum guaranteed area of 2 000 000 ha for

‘1.
which the aid may be granted is hereby established.’;

‘1. Where a Member State makes use of
the option
provided for in Article 59, farmers may, by way of dero-
gation from Article 51(b) and (c) and in accordance with
this Article, also use the parcels declared in accordance with
Article 44(3) for the production of products referred to in
Article 1(2) of Regulation (EC) No 2200/96 or in Article
1(2) of Regulation (EC) No 2201/96 and of potatoes other
than those intended for the manufacture of potato starch
for which aid is granted under Article 93 of this Regu-
lation, except crops referred to in Article 51(a).’;

13. the following Article shall be inserted:

‘Article 90a

National aid

Member States shall be authorised to pay national aid up to
50 % of the costs associated with establishing permanent
crops for the areas which have been subject to an appli-
cation for the aid for energy crops.’;

8. the first subparagraph of Article 71d(6) shall be replaced by

the following:

14. Article 110q(1) shall be replaced by the following:

Except

‘6.
in the case of a transfer by actual or
anticipated inheritance, of mergers and scissions and of
the application of paragraph 3, and by way of derogation
from Article 46,
the entitlements established using the
national reserve shall not be transferred for a period of
five years starting from their allocation. In the case of a
merger or
the farmer(s) managing the new
holding(s) shall keep the entitlements which were originally
allocated from the national reserve for the remaining part
of the five-year period.’;

scission,

‘1.
In Member States which have granted the restruc-
turing aid provided for in Article 3 of Regulation (EC)
No 320/2006 for at least 50 % of the sugar quota fixed
on 20 February 2006 in Annex III to Regulation (EC) No
318/2006, Community aid shall be granted to sugar beet
and cane producers.’;

15. Article 110s shall be replaced by the following:

9. Article 71g(1), shall be replaced by the following:

‘Article 110s

‘1.
Farmers may, by way of derogation from Article
51(b) and (c) and in accordance with this Article, also
use the parcels declared in accordance with Article 44(3)
for the production of products referred to in Article 1(2) of
Regulation (EC) No 2200/96 or in Article 1(2) of Regu-
lation (EC) No 2201/96 and of potatoes other than those
intended for the manufacture of potato starch for which aid
is granted under Article 93 of this Regulation, except crops
referred to in Article 51(a).’;

Amount of the aid

The aid shall be expressed per tonne of white sugar of
standard quality. The amount of the aid shall be equal to
half of the amount obtained by dividing the amount of the
ceiling referred to in point 2 of point K of Annex VII for
the Member State concerned for the corresponding year by
the total of the sugar and inulin syrup quota fixed on
20 February 2006 in Annex III
to Regulation (EC)
No 318/2006.

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Official Journal of the European Union

L 384/11

Articles 143a and 143c shall not apply to the aid for sugar
beet and cane producers.’;

application until the end of 2011. New Member States
shall notify the Commission of
intention to
terminate the application of the scheme by 1 August
of the last year of application.’;

their

16. Article 143b shall be amended as follows:

(a) paragraph 1 shall be replaced by the following:

(e)

the third subparagraph of paragraph 11 shall be
replaced by the following:

‘1.
The new Member States may decide not later
than the date of accession to replace the direct
payments, with the exception of the aid for energy
crops established in Chapter 5 of Title IV, during the
period of application referred to in paragraph 9, with a
single area payment which shall be calculated in
accordance with paragraph 2.’;

‘Until the end of the period of application of the single
area payment scheme as referred to in paragraph 9, the
percentage rate set out in Article 143a shall apply. If
the application of the single area payment scheme is
extended beyond the end of 2010 pursuant
to a
decision taken under point (b) of the first subparagraph
of this paragraph, the percentage rate set out in Article
143a for 2010 shall apply until the end of the last year
of application of the single area payment scheme.’;

(b) the first subparagraph of paragraph 5 shall be replaced

by the following:

17. Article 143ba shall be amended as follows:

(CN code

‘For the purpose of granting payments under the single
area payment scheme, all agricultural parcels corre-
sponding to the criteria provided for in paragraph 4,
as well as agricultural parcels planted with short
rotation coppice
ex 0602 90 41) which
have been maintained in good agricultural condition
as at 30 June 2003 and which are subject to an appli-
cation for the aid for energy crops provided for in
Article 88, shall be eligible. However, for Bulgaria and
Romania, all agricultural parcels corresponding to the
criteria provided for in paragraph 4, as well as agri-
cultural parcels planted with short rotation coppice
(CN code ex 0602 90 41) which are subject to an appli-
cation for the aid for energy crops provided for in
Article 88, shall be eligible.’;

(c)

in paragraph 6, the third subparagraph shall be replaced
by the following:

‘As from 1 January 2005 and until 31 December 2008
the application of Articles 3, 4, 6, 7 and 9 shall be
optional for the new Member States insofar as those
management
provisions
requirements. However for Bulgaria and Romania, the
application of Articles 3, 4, 6, 7 and 9 shall be optional
until 31 December 2011.’;

statutory

relate

to

(a)

in the first subparagraph of paragraph 1,
sentence shall be replaced by the following:

the first

‘By way of derogation from Article 143b,
the new
single area payment
Member States applying the
scheme may decide by 30 April 2006 to grant
in
respect of the years 2006 to 2010 a separate sugar
payment
the single area
payment scheme.’;

to farmers eligible under

(b) paragraph 3 shall be replaced by the following:

‘3.
By way of derogation from paragraph 2, each
new Member State concerned may decide by 31
March of the year in respect of which the separate
is granted and on the basis of
sugar payment
objective criteria to apply for
the separate sugar
payment a ceiling lower than that listed in point K of
Annex VII. Where the sum of the amounts determined
in accordance with paragraph 1 exceeds the ceiling
decided by the new Member State concerned,
the
annual amount to be granted to the farmers shall be
reduced proportionally.’;

(d) paragraph 9 shall be replaced by the following:

(c)

the following paragraph shall be added:

single

‘9.
Subject to paragraph 11, for any new Member
State
shall be
the
area payment
available for a period of application until the end of
2010. However, for Bulgaria and Romania, the single
area payment scheme shall be available for a period of

scheme

‘6.
In the case of actual or anticipated inheritance,
the separate sugar payment shall be granted to the
farmer who
the
condition that this farmer is eligible under the single
area payment scheme.’;

inherited

holding,

under

the

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18. Annex I shall be amended as follows:

Article 2

(a) The entry for
following:

‘olive oil’ shall be replaced by the

The following subparagraph shall be is added to Article 51(3) of
Regulation (EC) No 1698/2005:

‘Olive oil

Title IV, Chapter 10b of
this Regulation

Area aid

Article 48a(11) of
Commission Regulation
(EC) No 795/2004 (OJ
L 141, 30.4.2004, p. 1)

For Malta and
Slovenia in
2006’;

(b) The entry for ‘hops’ shall be replaced by the following:

‘Hops

Title IV, Chapter 10d of
this Regulation (***) (*****)

Area aid

‘The derogation provided for in the first subparagraph shall
apply until 31 December 2008. However, for Bulgaria and
Romania it shall apply until 31 December 2011.’

Article 3

This Regulation shall enter into force on 1 of January 2007
subject to the entry into force of the 2005 Treaty of Accession
of Bulgaria and Romania insofar as the provisions of this Regu-
lation are based on that Treaty.

Article 48a(12) of Regu-
lation (EC) No 795/2004

For Slovenia in
2006’.

It shall apply as from 1 January 2007. However, Article 1(6)
shall apply with effect from 1 January 2005, Article 1(14), (15),
(17) and (18) shall apply with effect from 1 January 2006.

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

Done at Brussels, 19 December 2006.

For the Council
The President

J. KORKEAOJA