Council Regulation (EC) No 146/2008 of 14 February 2008 amending 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 Regulation (EC) No 1698/2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD)
Date: 2008-02-14
Institutions: Council of the European Union
Subjects: EU aid, aid system, aid to agriculture, common agricultural policy, farmers' income, fund (EU), rural development

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(Acts adopted under the EC Treaty/Euratom Treaty whose publication is obligatory)

I

REGULATIONS

COUNCIL REGULATION (EC) No 146/2008

of 14 February 2008

amending 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
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,

that the farmer remedies the findings of non-compliance
concerned are taken by the competent national authority.

Having regard to the Treaty
Community, and in particular
Article 37(2) thereof,

establishing the European
the third subparagraph of

(2)

Having regard to the proposal from the Commission,

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

Whereas:

(3)

(1)

Experience has shown the need to provide for a measure
of tolerance for minor cases of non-compliance with the
cross compliance requirements where the severity, extent
and permanence of such non-compliance would not
justify an immediate reduction of the direct payments
to be granted. Such a measure of tolerance should none-
theless
the
competent national authority until the non-compliance
has been remedied. Moreover, applying reductions to
very low initial amounts of direct payments may prove
burdensome in comparison to any deterrent effect to be
gained. As a consequence, a suitable threshold should be
defined, below which Member States may decide not to
apply any reduction, provided that the actions to ensure

an appropriate

follow-up by

include

of

Regulation

Council
that

(EC) No
44(3)
Article
1782/2003 (2) provides
farmers must keep the
parcels corresponding to the eligible hectare at
their
disposal for a period of at least 10 months. Experience
has shown that
this condition risks constraining the
functioning of the land market and creates significant
administrative work for the farmers and administrative
services involved. Nonetheless,
in order to ensure that
double claims are not made for the same land, a date
should be fixed on which the parcels should be at the
farmer’s disposal. It would be appropriate for Member
States to determine that date which should be no later
than the date fixed for amendment of the aid application.
The same rule should also be applied for the Member
States applying the single area payment scheme.

scheme,

As a consequence of the reduction of the period during
which the farmer shall keep at his disposal the parcels
corresponding to the eligible hectare to a single day for
both the single payment scheme and the single area
the rules on liability under cross
payment
compliance, in particular in the case of transfer of land
during the calendar year concerned, should be clarified. It
should therefore be made clear that
the farmer who
submits
an aid application should be held liable
towards the competent authority with regard to any
the cross compliance requirements in
failure to fulfil
land
the calendar year concerned for all agricultural
declared in the
should not
preclude private law arrangements between the farmer
concerned and the person to whom or from whom the
agricultural land was transferred.

aid application. This

(1) Opinion of 11 December 2007 (not yet published in the Official

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

Journal).

lation (EC) No 1276/2007 (OJ L 284, 30.10.2007, p. 11).

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(4)

(5)

(6)

Article 71h of Regulation (EC) No 1782/2003 provides
that, in the framework of the single payment scheme, the
new Member States within the meaning of Article 2(g) of
that Regulation may fix different per unit values of enti-
tlements to be allocated for hectares of grassland or
permanent pasture and for any other eligible hectares
as identified on 30 June 2003 or on 30 June 2005 in
the case of Bulgaria and Romania. The new Member
States have established an identification system for agri-
cultural parcels in compliance with Article 20 of that
Regulation. However, due to technical difficulties when
switching over to that identification system, the features
of certain parcels as existing in 2003 may not have been
accurately reflected. In order to allow for the smooth
the possibility to fix different per
implementation of
unit values, the date for identifying the parcels should
be adjusted to 30 June 2006. However for Bulgaria and
Romania the date for identifying the parcels should be
1 January 2008. Article 71h of Regulation (EC) No
1782/2003 should be amended accordingly.

applied

in the Community

Experience has also shown that the setting-up of the
administrative infrastructure needed for the management
of the statutory management requirements covered by
the cross compliance rules implies considerable adminis-
trative work. A three-year phasing-in of the statutory
management requirements in the new Member States
using the single area payment scheme, similar to the
as
phasing-in period
constituted on 30 April 2004 in accordance with the
time schedule set out in Annex III to Regulation (EC)
No 1782/2003, would ease the process of introduction
of
the statutory management requirements and their
smooth implementation. This phasing-in period should
be possible even if the new Member State decides to
fully apply the direct payments before the last possible
date for applying the single area payment scheme. Article
143b(6) of Regulation (EC) No 1782/2003 and Article
51(3) of Council Regulation (EC) No 1698/2005 (1)
should be amended accordingly.

(7)

(8)

(9)

the

to the

application of

Article 143b(10) and (11) of Regulation (EC) No
1782/2003 lay down the rules governing the passage
of new Member States using the single area payment
scheme
single payment
system. According to these rules the decision of a new
Member State to implement the single payment scheme
is subject to the prior authorisation of the Commission
on the basis of an assessment of the state of prepa-
redness of the new Member State concerned. This prior
authorisation is no longer necessary since almost all
direct payments are decoupled and since both the
single area payment scheme and the single payment
scheme are decoupled and are area-based payments

sharing most of the elements of the integrated system, in
particular the land parcel
identification system. Those
provisions should therefore be deleted. Deletion of para-
graphs 10 and 11 of Article 143b implies a conse-
quential amendment to Article 143b(9). That provision
should therefore also be amended.

Table 2 of Annex XII to Regulation (EC) No 1782/2003
sets out the total amounts of complementary national
direct payments to be paid in Cyprus where the single
area payment scheme applies up to 2008. Further to the
extension of the application of the single area payment
scheme by Council Regulation (EC) No 2012/2006 (2), it
is necessary to set out the total amounts to be paid in
Cyprus where the single area payment scheme applies for
2009 and 2010.

The new Member States having decided to apply the
single payment scheme have opted to introduce it from
2007. It is therefore appropriate for the amendment to
Article 71h of Regulation (EC) No 1782/2003 to apply
to those new Member States from that date.

scheme

in order

to fully implement

scheme, as well as

A number of the provisions amended by this Regulation,
in particular the measure of tolerance for minor cases of
non-compliance, the application of reductions below a
certain threshold, the fixation of the date at which the
farmer shall have the land at his disposal for eligibility
under the single payment scheme and the single area
payment
the phasing-in period
granted to new Member States applying the single area
payment
the
requirements linked to cross compliance within their
territory, would result in rules more favourable for the
farmers concerned than the rules currently in force. The
retroactive application of such provisions should not
infringe the principle of legal certainty of the economic
operators concerned. The same applies to the amended
provision of Article 71h of Regulation (EC) No
the provisions concerning the
1782/2003. However,
farmers
liability of
for non-compliance in case of
land should apply from 1 April 2008 in
transfer of
order
the
legal
farmers concerned while ensuring an effective application
of these provisions in the year 2008.

certainty for

to provide

sufficient

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

lation (EC) No 2012/2006 (OJ L 384, 29.12.2006, p. 8).

(2) OJ L 384, 29.12.2006, p. 8.

(10)

Regulation (EC) No 1782/2003 and Regulation (EC) No
1698/2005 should therefore be amended accordingly,

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HAS ADOPTED THIS REGULATION:

2.

in Article 7, paragraph 2, the following subparagraphs shall
be added:

Regulation (EC) No 1782/2003 is hereby amended as follows:

Article 1

1. Article 6 is amended as follows:

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

‘In duly justified cases Member States may decide that no
reduction shall be applied where, given its severity, extent
and permanence, a case of non-compliance is
to be
considered as minor. Cases of non-compliance which
constitute a direct risk to public or animal health shall
however not be considered as minor.

‘1. Where the statutory management requirements or
good agricultural and environmental conditions are not
complied with at any time in a given calendar year (here-
inafter “the calendar year concerned”), and the non-
the result of an act or
compliance in question is
omission directly
farmer who
submitted the aid application in the calendar year
concerned, the total amount of direct payments to be
granted, after application of Articles 10 and 11 to that
farmer, shall be reduced or cancelled in accordance with
the detailed rules laid down under Article 7.

attributable

to the

to the non-compliance

Unless the farmer has taken immediate remedial action
putting
the
an end
competent authority shall
take the actions required that
may, where appropriate, be limited to an administrative
check, to ensure that the farmer remedies the findings of
non-compliance concerned. The finding of minor non-
compliance and the remedial action to be taken shall be
notified to the farmer.’;

found,

3.

in Article 44, paragraph 3, the second sentence shall be
replaced by the following:

The first subparagraph shall also apply where, the non-
compliance in question is
the result of an act or
omission directly attributable to the person to whom
or from whom the agricultural land was transferred.

‘Except in case of force majeure or exceptional circumstances,
these parcels shall be at the farmer’s disposal on the date
fixed by the Member State which shall be no later than the
date fixed in that Member State for amendment of the aid
application.’;

For the purposes of application of the first and second
subparagraphs for the year 2008, the calendar year shall
correspond to the period of 1 April to 31 December
2008.

For the purpose of this paragraph “transfer” means any
type of transaction whereby the agricultural land ceases
to be at the disposal of the transferor.’;

(b) the following paragraph shall be added:

‘3.
Notwithstanding paragraph 1 and in accordance
with the conditions laid down in the detailed rules
referred to in Article 7(1), Member States may decide
not
to apply a reduction or exclusion amounting to
EUR 100 or less per farmer and per calendar year.

the
Where a Member State decides to make use of
in the
option provided for in the first subparagraph,
following year the competent authority shall take the
actions required to ensure that the farmer remedies the
findings of non-compliance concerned. The finding and
the remedial action to be taken shall be notified to the
farmer.’;

4. Article 71h shall be replaced by the following:

‘Article 71h

Grassland

fix, within the regional ceiling or part of

The new Member States may also, according to objective
criteria,
it,
different per unit values of entitlements to be allocated to
farmers referred to in Article 71f(1), for hectares of grassland
as identified on 30 June 2006 and for any other eligible
hectare or alternatively for hectares of permanent pasture
as identified on 30 June 2006 and for any other eligible
hectare.

However for Bulgaria and Romania the date for identification
shall be 1 January 2008.’;

5. Article 143b shall be amended as follows:

(a)

in paragraph 5,
added:

the following subparagraph shall be

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‘Except in case of force majeure or exceptional circum-
stances, the parcels referred to in the first subparagraph
shall be at the farmer’s disposal on the date fixed by the
Member State which shall be no later than the date fixed
in that Member State for amendment of the aid appli-
cation.’;

(b) 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
provisions relate to statutory management requirements.
As from 1 January 2009 a farmer receiving payments
under the single area payment scheme in those Member
statutory management
the
States
requirements referred to in Annex III according to the
following timetable:

respect

shall

(a) requirements referred to in point A of Annex III shall

apply from 1 January 2009;

(b) requirements referred to in point B of Annex III shall

apply from 1 January 2011;

(c) requirements referred to in point C of Annex III shall

apply from 1 January 2011.

statutory management

However, for Bulgaria and Romania, the application of
Articles 3, 4, 6, 7 and 9 shall be optional until
31 December 2011 insofar as those provisions relate
to
from
1 January 2012 a farmer receiving payments under the
single area payment scheme in those Member States shall
respect the statutory management requirements referred
to in Annex III according to the following timetable:

requirements. As

(b) requirements referred to in point B of Annex III shall

apply from 1 January 2014;

(c) requirements referred to in point C of Annex III shall

apply from 1 January 2014.

The new Member States may also apply the option
in the third subparagraph where they
provided for
decide to terminate the application of the single area
payment scheme before the end of the period of appli-
cation provided for in paragraph 9.’;

(c)

in paragraph 9, the first sentence shall be replaced by the
following:

‘For any new Member State the single area payment
scheme shall be available for a period of application
until the end of 2010.’;

(d) paragraphs 10 and 11 shall be deleted;

6. Annex XII shall be amended in accordance with the Annex

to this Regulation.

Article 2

In Article 51, paragraph 3, of Regulation (EC) No 1698/2005,
the second subparagraph shall be replaced by the following:

‘The derogation provided for in the first subparagraph shall
apply until 31 December 2008. As from 1 January 2009 a
the single area payment
farmer
scheme shall respect the statutory management requirements
referred to in Annex III to Regulation (EC) No 1782/2003
according to the following timetable:

receiving payments under

(a) requirements referred to in point A of Annex III shall

(a) requirements referred to in point A of Annex III shall apply

apply from 1 January 2012;

from 1 January 2009;

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(b) requirements referred to in point B of Annex III shall apply

(c) requirements referred to in point C of Annex III shall apply

from 1 January 2011;

from 1 January 2014.

(c) requirements referred to in point C of Annex III shall apply

from 1 January 2011.

to statutory management

However, for Bulgaria and Romania, the application of Articles
3, 4, 6, 7 and 9 of Regulation (EC) No 1782/2003 shall be
optional until 31 December 2011 insofar as those provisions
relate
from
1 January 2012 a farmer receiving payments under the single
area payment scheme shall respect the statutory management
requirements referred to in Annex III to Regulation (EC) No
1782/2003 according to the following timetable:

requirements. As

(a) requirements referred to in point A of Annex III shall apply

from 1 January 2012;

The new Member States may also apply the option provided for
in the second subparagraph where they decide to terminate the
application of the single area payment scheme before the end of
the period of application provided for in Article 143b(9) of
Regulation (EC) No 1782/2003.’

Article 3

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

It shall apply as from 1 January 2008 with the following
exceptions:

(a) Article 1(1)(a) shall apply as of 1 April 2008;

(b) requirements referred to in point B of Annex III shall apply

from 1 January 2014;

(b) Article 1(4) shall apply as from 1 January 2007.

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

Done at Brussels, 14 February 2008.

For the Council
The President

M. ZVER

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In Table 2 of Annex XII to Regulation (EC) No 1782/2003 the two following columns are added:

ANNEX

‘2009

0

1 795 543

0

3 456 448

4 608 945

10 724 282

5 547 000

156 332

4 323 820

1 038 575

31 650 945

2010

0

1 572 955

0

3 438 488

4 608 945

10 670 282

5 115 000

149 600

4 312 300

1 035 875

30 903 405’