Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on support for rural development by the European Agricultural Fund for Rural Development (EAFRD)
Date: 2011-10-12
Institutions: European Commission
Subjects: agricultural production, aid to agriculture, climate change, fund (EU), reform of the CAP, rural development

EUROPEAN COMMISSION 

Brussels, 14.5.2012  
COM(2011) 627 final/3 

2011/0282 (COD) 

CORRIGENDUM: 
Annule et remplace le document COM(2011) 627 final du 12.10.2011 et le document 
COM(2011) 627 final/2 du 19.10.2011 
Concerne toutes les versions linguistiques 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

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

{SEC(2011) 1153 final} 
{SEC(2011) 1154 final} 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

The  Commission  proposal  for  the  Multiannual  Financial  Framework  (MFF)  for  2014-2020 
(the  MFF  proposal)1  sets  the  budgetary  framework  and  main  orientations  for  the  Common 
Agricultural Policy (CAP). On this basis, the Commission presents a set of regulations laying 
down the legislative framework for the CAP in the period 2014-2020, together with an impact 
assessment of alternative scenarios for the evolution of the policy.  

The current reform proposals are based on the Communication on the CAP towards 20202 that 
outlined broad policy options in order to respond to the future challenges for agriculture and 
rural areas and to meet the objectives set for the CAP, namely 1) viable food production; 2) 
sustainable  management  of  natural  resources  and  climate  action;  and  3)  balanced  territorial 
development.  The  reform  orientations  in  the  Communication  have  since  been  broadly 
supported both in the inter-institutional debate3 and in the stakeholder consultation that took 
place in the framework of the impact assessment.  

A common theme that has emerged throughout this process is the need to promote resource 
efficiency with a view to smart, sustainable and inclusive growth for EU agriculture and rural 
areas  in  line  with  the  Europe  2020  strategy,  keeping  the  structure  of  the  CAP  around  two 
pillars that use complementary instruments in pursuit of the same objectives. Pillar I covers 
direct payments and market measures providing a basic annual income support to EU farmers 
and support in case of specific market disturbances, while Pillar II covers rural development 
where  Member  States  draw  up  and  co-finance  multiannual  programmes  under  a  common 
framework.4 

Through  successive  reforms  the  CAP  has  increased  market  orientation  for  agriculture  while 
providing  income  support  to  producers,  improved  the  integration  of  environmental 
requirements  and  reinforced  support  for  rural  development  as  an  integrated  policy  for  the 
development  of  rural  areas  across  the  EU.  However,  the  same  reform  process  has  raised 
demands for a better distribution of support among and within Member States, as well as calls 
for  a  better  targeting  of  measures  aiming  at  addressing  environmental  challenges  and  better 
addressing increased market volatility.  

In the past, reforms mainly responded to endogenous challenges, from huge surpluses to food 
safety crises; they have served the EU well both on the domestic and the international front. 
However, most of today's challenges are driven by factors that are external to agriculture and 
would thus require a broader policy response. 

1 

2 

3 

4 

Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 
Economic  and  Social  Committee  and  the  Committee  of  the  Regions  A  budget  for  Europe  2020, 
COM(2011)500 final, 29.6.2011.  
Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 
Economic and Social Committee and the Committee of the Regions The CAP towards 2020: meeting 
the food, natural resources and territorial challenges of the future, COM(2010)672 final, 18.11.2010. 
See  in  particular  the  European  Parliament  resolution  of  23  June  2011,  2011/2015(INI),  and  the 
Presidency conclusions of 18.3.2011. 
The current legislative framework comprises Council Regulation (EC) No 73/2009 (direct payments), 
Council Regulation (EC) No 1234/2007 (market instruments), Council Regulation (EC) No 1698/2005 
(rural development) and Council Regulation (EC) No 1290/2005 (financing).  

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The pressure on agricultural income is expected to continue as farmers are facing more risks, 
a slowdown in productivity and a margin squeeze due to rising input prices; there is therefore 
a  need  to  maintain  income  support  and  to  reinforce  instruments  to  better  manage  risks  and 
respond to crisis situations. A strong agriculture is vital for the EU food industry and global 
food security. 

At the same time, agriculture and rural areas are being called upon to step up their efforts to 
meet  the  ambitious  climate  and  energy  targets  and  biodiversity  strategy  that  are  part  of  the 
Europe 2020 agenda. Farmers, who are together with foresters the main land managers, will 
need  to  be  supported  in  adopting  and  maintaining  farming  systems  and  practices  that  are 
particularly favourable to environmental and climate objectives because market prices do not 
reflect the provision of such public goods. It will also be essential to best harness the diverse 
potential of rural areas and thus contribute to inclusive growth and cohesion.  

The future CAP will not, therefore, be a policy that caters only for a small, albeit essential, 
part  of  the  EU  economy,  but  also  a  policy  of  strategic  importance  for  food  security,  the 
environment  and  territorial  balance.  Therein  lies  the  EU  added  value  of  a  truly  common 
policy  that  makes  the  most  efficient  use  of  limited  budgetary  resources  in  maintaining  a 
sustainable  agriculture  throughout  the  EU,  addressing  important  cross-border  issues  such  as 
climate  change  and  reinforcing  solidarity  among  Member  States,  while  also  allowing 
flexibility in implementation to cater for local needs.  

The framework set out in the MFF proposal foresees that the CAP should maintain its two-
pillar structure with the budget for each pillar maintained in nominal terms at its 2013 level 
and with a clear focus on delivering results on the key EU priorities. Direct payments should 
promote sustainable production by assigning 30 % of their budgetary envelope to mandatory 
measures  that  are  beneficial  to  climate  and  the  environment.  Payment  levels  should 
progressively converge and payments to large beneficiaries be subject to progressive capping. 
Rural  development  should  be  included  in  a  Common  Strategic  Framework  with  other  EU 
shared  management  funds  with  a  reinforced  outcome-orientated  approach  and  subject  to 
clearer,  improved  ex-ante  conditionalities.  Finally,  on  market  measures  the  financing  of  the 
CAP should be reinforced with two instruments outside the MFF: 1) an emergency reserve to 
react  to  crisis  situations;  and  2)  the  extension  of  the  scope  of  the  European  Globalization 
Adjustment Fund.  

On this basis, the main elements of the legislative framework for the CAP during the period 
2014-2020 are set out in the following regulations:  

– 

– 

– 

Proposal for a Regulation of the European Parliament and of the Council establishing 
rules for direct payments to farmers under support schemes within the framework of 
the common agricultural policy ('the direct payments regulation'); 

Proposal for a Regulation of the European Parliament and of the Council establishing 
a  common  organisation  of  the  markets  in  agricultural  products  (Single  CMO 
Regulation) ('the Single CMO regulation'); 

Proposal for a Regulation of the European Parliament and of the Council on support 
for  rural  development  by  the  European  Agricultural  Fund  for  Rural  Development 
(EAFRD) ('the rural development regulation'); 

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– 

– 

– 

– 

Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  on  the 
financing,  management  and  monitoring  of  the  common  agricultural  policy  ('the 
horizontal regulation'); 

Proposal  for  a  Council  regulation  determining  measures  on  fixing  certain  aids  and 
refunds related to the common organisation of the markets in agricultural products; 

Proposal for a Regulation of the European Parliament and of the Council amending 
Council Regulation (EC) No 73/2009 as regards the application of direct payments to 
farmers in respect of the year 2013; 

Proposal for a Regulation of the European Parliament and of the Council amending 
Council Regulation (EC) No 1234/2007 as regards the regime of the single payment 
scheme and support to vine-growers. 

The rural development regulation builds on the proposal presented by the Commission on 6 
October 2011 that sets out common rules for all funds operating under a Common Strategic 
Framework.5  A  regulation  will  follow  on  the  scheme  for  most  deprived  persons,  for  which 
funding is now placed under a different heading of the MFF.  

In addition, new rules on the publication of information on beneficiaries taking account of the 
objections expressed by the Court of Justice of the European Union are also under preparation 
with a view to finding the most appropriate way to reconcile beneficiaries' right to protection 
of personal data with the principle of transparency. 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENT 

On  the  basis  of  the  evaluation  of  the  current  policy  framework  and  an  analysis  of  future 
challenges  and  needs,  the  impact  assessment  assesses  and  compares  the  impact  of  three 
alternative scenarios. This is the result of a long process started in April 2010 and steered by 
an  inter-service  group  that  brought  together  extensive  quantitative  and  qualitative  analysis, 
including setting a baseline in the form of medium-term projections for agricultural markets 
and  income  up  to  2020  and  modelling  the  impact  of  the  different  policy  scenarios  on  the 
economics of the sector. 

The  three  scenarios  elaborated  in  the  impact  assessment  are:  1)  an  adjustment  scenario  that 
continues  with  the  current  policy  framework  while  addressing  its  most  important 
shortcomings,  such  as  the  distribution  of  direct  payments;  2)  an  integration  scenario  that 
entails  major  policy  changes  in  the  form  of  enhanced  targeting  and  greening  of  direct 
payments  and  reinforced  strategic  targeting  for  rural  development  policy  in  better 
coordination with other EU policies, as well as extending the legal base for a broader scope of 
producer cooperation; and 3) a refocus scenario that reorients the policy exclusively towards 
the environment with a progressive phasing out of direct payments, assuming that productive 

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Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  laying  down  common 
provisions  on  the  European  Regional  Development  Fund,  the  European  Social  Fund,  the  Cohesion 
Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries 
Fund  covered  by  the  Common  Strategic  Framework  and  laying  down  general  provisions  on  the 
European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing 
Regulation (EC) No 1083/2006, COM(2011)615 of 6.10.2011. 

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capacity can be maintained without support and that the socio-economic needs of rural areas 
can be served by other policies. 

Against the background of the economic crisis and the pressure on public finances, to which 
the  EU  has  responded  with  the  Europe  2020  strategy  and  the  MFF  proposal,  all  three 
scenarios  attach  different  weight  to  each  of  the  three  policy  objectives  of  the  future  CAP 
which  aims  at  a  more  competitive  and  sustainable  agriculture  in  vibrant  rural  areas.  With  a 
view  to  a  better  alignment  with  the  Europe  2020  strategy,  notably  in  terms  of  resource 
efficiency,  it  will  be  increasingly  essential  to  improve  agricultural  productivity  through 
research,  knowledge  transfer  and  promoting  cooperation  and  innovation  (including  through 
the European Innovation Partnership on agricultural productivity and sustainability). Whereas 
EU  agricultural  policy  does  not  any  more  operate  within  a  trade  distorting  policy 
environment, additional pressure on the sector is expected from further liberalization, notably 
in the framework of the DDA or the FTA with Mercosur.  

The three policy scenarios were drawn up taking into account the preferences expressed in the 
consultation which was conducted in the context of the impact assessment. Interested parties 
were  invited  to  submit  contributions  between  23.11.2010  and  25.1.2011  and  an  advisory 
committee was organised on 12.1.2011. The main points are summarized below:6  

–  There  is  broad  agreement  among  stakeholders  on  the  need  for  a  strong  CAP  based  on  a 
two-pillar-structure  in  order  to  address  the  challenges  of  food  security,  sustainable 
management of natural resources and territorial development. 

–  Most respondents find that the CAP should play a role in stabilizing markets and prices.  

–  Stakeholders  have  diverse  opinions  concerning  the  targeting  of  support  (especially 

redistribution of direct aid and capping payments).  

–  There  is  agreement  that  both  pillars  can  play  an  important  role  in  stepping  up  climate 
action  and  increasing  environmental  performance  for  the  benefit  of  EU  society.  Whereas 
many farmers believe that this already takes place today, the wider public argues that Pillar 
I payments can be more efficiently used.  

–  The respondents want all parts of the EU, including less favoured areas, to be part of future 

growth and development.  

–  The  integration  of  the  CAP  with  other  policies,  such  as  environmental,  health,  trade, 

development, was emphasised by many respondents. 

–  Innovation,  development  of  competitive  businesses  and  provision  of  public  goods  to  EU 

citizens are seen as ways to align the CAP with the Europe 2020 strategy. 

The impact assessment thus compared the three alternative policy scenarios: 

The refocus scenario would accelerate structural adjustment in the agricultural sector, shifting 
production  to  the  most  cost  efficient  areas  and  profitable  sectors.  While  significantly 
increasing funding for the environment, it would also expose the sector to greater risks due to 
limited scope for market intervention. Furthermore, it would come at a significant social and 

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See Annex 9 of the impact assessment for an overview of the 517 contributions received. 

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environmental cost as the less competitive areas would face a considerable income loss and 
environmental  degradation,  since  the  policy  would  lose  the  leverage  of  direct  payments 
coupled with the cross compliance requirements.  

At  the  other  end  of  the  spectrum,  the  adjustment  scenario  would  best  allow  for  policy 
continuity  with  limited  but  tangible  improvements  both  in  agricultural  competitiveness  and 
environmental  performance.  There  are  however  serious  doubts  as  to  whether  this  scenario 
could  adequately  address  the  important  climate  and  environmental  challenges  of  the  future, 
which also underpin the long-term sustainability of agriculture. 

The  integration  scenario  breaks  new  ground  with  enhanced  targeting  and  greening  of  direct 
payments.  The  analysis  shows  that  greening  is  possible  at  a  reasonable  cost  to  farmers 
although  some  administrative  burden  cannot  be  avoided.  Similarly,  a  new  impetus  in  rural 
development  is  possible  provided  that  the  new  possibilities  are  efficiently  used  by  Member 
States and regions and that the common strategic framework with the other EU funds does not 
remove synergies with Pillar I or weaken rural development's distinctive strengths. If the right 
balance is struck, this scenario would best address the long term sustainability of agriculture 
and rural areas.  

On  this  basis  the  impact  assessment  concludes  that  the  integration  scenario  is  the  most 
balanced in progressively aligning the CAP with the EU's strategic objectives and this balance 
is  also  found  in  the  implementation  of  the  different  elements  in  the  legislative  proposals.  It 
will also be essential to develop an evaluation framework to measure the performance of the 
CAP with a common set of indicators linked to policy objectives. 

Simplification  has  been  an  important  consideration  throughout  the  process  and  should  be 
enhanced  in  a  variety  of  ways,  for  instance  in  the  streamlining  of  cross  compliance  and 
market  instruments,  or  the  design  of  the  small  farmers  scheme.  In  addition,  the  greening  of 
direct  payments  should  be  designed  in  such  a  way  as  to  minimize  administrative  burden 
including the costs of controls.  

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

It  is  proposed  to  maintain  the  current  structure  of  the  CAP  in  two  pillars  with  annual 
mandatory  measures  of  general  application  in Pillar I complemented by voluntary measures 
better  tailored  to  national  and  regional  specificities  under  a  multi-annual  programming 
approach  in  Pillar  II.  However,  the  new  design  of  direct  payments  seeks  to  better  exploit 
synergies  with  Pillar  II,  which  is  in  turn  placed  under  a  Common  Strategic  Framework  to 
better coordinate with other EU shared management funds.  

On  this  basis,  the  current  structure  of  four  basic  legal  instruments  is  also  maintained,  albeit 
with the scope of the financing regulation enlarged to bring together common provisions into 
what is now called the horizontal regulation.  

The proposals comply with the principle of subsidiarity. The CAP is a truly common policy: it 
is an area of shared competence between the EU and the Member States that is being handled 
at EU level with a view  to  maintaining a sustainable and diverse agriculture throughout the 
EU,  addressing  important  cross-border  issues  such  as  climate  change  and  reinforcing 
solidarity among Member States. In the light of the importance of future challenges for food 
security,  the  environment  and  territorial  balance,  the  CAP  remains  a  policy  of  strategic 

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importance  to  ensure  the  most  effective  response  to  the  policy  challenges  and  the  most 
efficient  use  of  budgetary  resources.  In  addition,  it  is  proposed  to  maintain  the  current 
structure  of  instruments  in  two  pillars  where  Member  States  have  more  leeway  to  tailor 
solutions  to  their  local  specificities  and  also  co-finance  Pillar  II.  The  new  European 
Innovation  Partnership  and  risk  management  toolkit  are  also  placed  within  Pillar  II.  At  the 
same  time  the  policy  will  be  better  aligned  with  the  Europe  2020  strategy  (including  a 
common framework with other EU funds) and a number of improvements and simplification 
elements  introduced.  Finally,  the  analysis  carried  out  in  the  framework  of  the  impact 
assessment clearly shows the cost of no action in terms of negative economic, environmental 
and social consequences. 

The  rural  development  regulation  builds  on  the  strategic  approach  introduced  in  the  current 
period,  which  has  had  a  positive  impact  with  Member  States  developing  strategies  and 
programmes  on  the  basis  of  a  SWOT  analysis  to  best  tailor  intervention  to  national  and 
regional specificities. The new delivery mechanism aims at reinforcing the strategic approach 
–  among  other  things  by  setting  clearly  defined  common  priorities  for  rural  development  at 
EU  level  (with  associated  common  target  indicators)  as  well  as  by  making  the  necessary 
adjustments in light of experience gained to date. 

includes 

the  European  Innovation  Partnership  on  Agricultural 
The  regulation  also 
Productivity  and  Sustainability  which  is  aimed  at  promoting  resource  efficiency,  building 
bridges between research and practice and generally encouraging innovation. The partnership 
acts  through  operational  groups  responsible  for  innovative  projects  and  is  supported  by  a 
network.  

On  the  basis  of  the  proposal  presented  by  the  Commission  on  6  October  2011  that  sets  out 
common rules for all funds operating under a Common Strategic Framework, Pillar II of the 
CAP should work in a coordinated and complementary manner with Pillar I, as well as with 
other  EU  funds  (in  particular  the  European  Regional  Development  Fund  (ERDF),  the 
European  Social  Fund  (ESF),  the  Cohesion  Fund  and  the  European  Maritime  and  Fisheries 
Fund (EMFF). The funds are placed under a Common Strategic Framework (CSF) at EU level 
which  will  be  transposed  into  Partnership  Contracts  at  national  level  including  common 
objectives  and  rules  for  their  operation.  Establishing  common  rules  for  all  funds  operating 
under  a  Common  Strategic  Framework  will  make  projects  easier  to  handle  for  both 
beneficiaries and national authorities and will also facilitate the implementation of integrated 
projects. 

In  this  context,  rural  development  policy  retains  the  long-term  strategic  objectives  of 
contributing  to  the  competitiveness  of  agriculture,  the  sustainable  management  of  natural 
resources  and  climate  action  and  the  balanced  territorial  development  of  rural  areas.  In  line 
with the Europe 2020 strategy, these broad objectives of rural development support for 2014-
2020 are given more detailed expression through the following six EU-wide priorities: 

– 

– 

– 

– 

fostering knowledge transfer and innovation in agriculture, forestry and rural areas; 

enhancing competitiveness of all types of agriculture and enhancing farm viability; 

promoting food chain organization and risk management in agriculture; 

restoring,  preserving  and  enhancing  ecosystems  dependent  on  agriculture  and 
forestry; 

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– 

– 

promoting  resource  efficiency  and  supporting  the  shift  towards  a  low-carbon  and 
climate-resilient economy in the agriculture, food and forestry sectors;  

promoting  social  inclusion,  poverty  reduction  and  economic  development  in  rural 
areas. 

These  priorities  should  be  the  basis  of  programming,  including  the  definition  of  target 
indicators  in  relation  to  each  of  them.  The  regulation  includes  rules  on  the  preparation, 
approval  and  revision  of  programmes  that  largely  follow  current  rules,  and  opens  up  the 
possibility  for  sub-programmes  (e.g.  young  farmers,  small  farmers,  mountain  areas,  short 
supply chains) that benefit from higher aid intensities. 

The  list  of  individual  measures  has  been  streamlined  and  individual  measures  have  been 
reviewed,  with  a  number  of  adjustments 
issues  of  scope, 
implementation  and  uptake  raised  in  the  current  period.  With  most  measures  potentially 
serving more than one objective or priority, it is no longer deemed appropriate to group them 
into  axes;  programming  on  the  basis  of  priorities  should  ensure  balanced  programmes.  A 
specific  measure  for  organic  farming  is  created,  and  a  new  delimitation  for  areas  facing 
specific natural constraints is introduced. Provision for supporting joint environmental action 
is improved.  

to  address 

introduced 

The  current  cooperation  measure  is  significantly  reinforced  and  extended  to  support  a  wide 
range of types of cooperation (economic, environmental and social) between a wide range of 
potential beneficiaries. It now explicitly covers pilot projects as well as cooperation crossing 
regional and national borders. Leader and networking approaches will continue to play a key 
role, in particular for the development of rural areas and the spreading of innovation. Support 
through  Leader  will  be  consistent  and  coordinated  with  the  support  for  local  development 
from other EU shared management funds. A prize for local innovative co-operation projects 
will support transnational initiatives in favour of innovation. 

A risk management toolkit including support to mutual funds and a new income stabilization 
tool  offers  new  possibilities  to  deal  with  the  strong  volatility  in  agricultural  markets  that  is 
expected to continue in the medium term.  

The abolishment of the current axis system will also streamline programming by the Member 
States.  

Finally,  it  is  proposed  to  build  on  the  Common  Monitoring  and  Evaluation  Framework 
(CMEF)  introduced  in  the  current  period  which  will  be  simplified  and  improved  based  on 
experience gained to date. A common list of indicators will be linked to the policy priorities 
for the purpose of monitoring and evaluation.  

4. 

BUDGETARY IMPLICATION  

The  MFF  proposal  provides  that  a  significant  part  of  the  EU  budget  should  continue  to  be 
dedicated to agriculture, which is a common policy of strategic importance. Thus, in current 
prices, it is proposed that the CAP should focus on its core activities with EUR 317.2 billion 
allocated to Pillar I and EUR 101.2 billion to Pillar II over the 2014-2020 period.  

The Pillar I and Pillar II funding is complemented by additional funding of EUR 17.1 billion 
consisting of EUR 5.1 billion for research and innovation, EUR 2.5 billion for food safety and 

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EUR 2.8 billion for food support for the most deprived persons in other headings of the MFF, 
as well as of EUR 3.9 billion in a new reserve for crises in the agricultural sector and up to 
EUR  2.8  billion  in  the  European  Globalization  Adjustment  Fund  outside  the  MFF,  thus 
bringing the total budget to EUR 435.6 billion over the 2014-2020 period.  

As  regards  distribution  of  support  among  Member  States,  it  is  proposed  that  all  Member 
States  with  direct  payments  below  90%  of  the  EU  average  will  see  one  third  of  this  gap 
closed. The national ceilings in the direct payments regulation are calculated on this basis.  

The  distribution  of  rural  development  support  is  based  on  objective  criteria  linked  to  the 
policy  objectives  taking  into  account  the  current  distribution.  As  is  the  case  today,  less 
developed regions should continue to benefit from higher co-financing rates, which will also 
apply  to  certain  measures  such  as  knowledge  transfer,  producer  groups,  cooperation  and 
Leader.  

Some  flexibility  for  transfers  between  pillars  is  introduced  (up  to  5%  of  direct  payments): 
from Pillar I to Pillar II to allow Member States to reinforce their rural development policy, 
and  from  Pillar  II  to  Pillar  I  for  those  Member  States  where  the  level  of  direct  payments 
remains below 90% of the EU average.  

Details  on  the  financial  impact  of  the  CAP  reform  proposals  are  set  out  in  the  financial 
statement accompanying the proposals. 

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2011/0282 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

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

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 42 and 43 thereof, 

Having regard to the proposal from the European Commission7, 

After transmission of the draft legislative act to the national Parliaments, 

Having regard to the opinion of the European Economic and Social Committee8,  

Having regard to the opinion of the Committee of the Regions9,  

Having consulted the European Data Protection Supervisor 10 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

The  Communication  from  the  Commission  to  the  European  Parliament,  the  Council, 
the European Economic and Social Committee and the Committee of the Regions on 
"The CAP towards 2020: Meeting the food, natural resources and territorial challenges 
of the future"11 (hereinafter "the CAP towards 2020 Communication") set out potential 
challenges, objectives and orientations for the common agricultural policy (hereinafter 
"the  CAP")  after  2013.  In  the  light  of  the  debate  on  that  Communication,  the  CAP 
should be reformed with effect from 1 January 2014. That reform should cover all the 
main instruments of the CAP, including Council Regulation (EC) No 1698/2005 of 20 
September 2005 on support for rural development by the European Agricultural Fund 
for  Rural  Development  (EAFRD)12.  In  view  of  the  scope  of  the  reform,  it  is 
appropriate to repeal Regulation (EC) No 1698/2005 and to replace it with a new text.  

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11 
12 

OJ C […], […], p. […]. 
OJ C […], […], p. […]. 
OJ C […], […], p. […]. 
OJ C […], […], p. […]. 
COM(2010) 672 final, 18.11.2010. 
OJ L 277, 21.10.2005, p. 1. 

EN 

10 

   EN 

 
                                                 
(2) 

(3) 

(4) 

(5) 

A rural development policy should accompany and complement direct payments and 
market  measures  of  the  CAP  and  thus  contribute  to  that  policy's  objectives  as  laid 
down  in  the  Treaty  on  the  Functioning  of  the  European  Union  (hereinafter  "the 
Treaty"). A rural development policy should also integrate the major policy objectives 
spelled  out  in  the  Communication  from  the  Commission  of  3  March  2010  "Europe 
2020  A  strategy  for  smart,  sustainable  and  inclusive  growth"13  (hereinafter  "Europe 
2020  Strategy")  and  be  coherent  with  the  general  objectives  for  the  economic  and 
social cohesion policy set out in the Treaty. 

Since the objective of this Regulation, namely rural development, cannot be achieved 
sufficiently by Member States, given the links between it and the other instruments of 
the CAP, the extent of disparities between the various rural areas and the limits on the 
financial resources of the Member States in an enlarged Union, and can therefore be 
better  achieved  at  Union  level  through  the  multi-annual  guarantee  of  Union  finance 
and  by  concentrating  on  its  priorities,  the  Union  may  adopt  measures,  in  accordance 
with the principle of subsidiarity as set out in Article 5(3) of the Treaty on European 
Union. In accordance with the principle of proportionality as set out in Article 5(4) of 
that Treaty, this Regulation does not go beyond what is necessary in order to achieve 
that objective. 

In order to supplement or amend certain non-essential elements of this Regulation, the 
power to adopt delegated acts in accordance with Article 290 of the Treaty should be 
delegated to the Commission. It is of particular importance that the Commission carry 
out  appropriate  consultations  during  its  preparatory  work,  including  at  expert  level. 
The  Commission,  when  preparing  and  drawing  up  delegated  acts,  should  ensure  a 
simultaneous,  timely  and  appropriate  transmission  of  relevant  documents  to  the 
European Parliament and to the Council. 

To  ensure  the  sustainable  development  of  rural  areas,  it  is  necessary  to  focus  on  a 
limited  number  of  core  priorities  relating  to  knowledge  transfer  and  innovation  in 
agriculture, forestry and rural areas, the competitiveness of all types of agriculture and 
farm viability, food chain organisation and risk management in agriculture, restoring, 
preserving and enhancing ecosystems dependant on agriculture and forestry, resource 
efficiency  and  the  shift  towards  a  low  carbon  economy  in  the  agricultural,  food  and 
forestry sectors, and promoting social inclusion, poverty reduction and the economic 
development  of  rural  areas.  In  doing  so  account  must  be  taken  of  the  diversity  of 
situations that affect rural areas with different characteristics or different categories of 
potential beneficiaries and the cross-cutting objectives of innovation, environment and 
climate  change  mitigation  and  adaptation.  Mitigation  action  should  relate  to  both 
limiting  emissions  in  agriculture  and  forestry  from  key  activities  such  as  livestock 
production,  fertilizer  use  and  to  preserving  the  carbon  sinks  and  enhancing  carbon 
sequestration  with  regard  to  land  use,  land  use  change  and  the  forestry  sector.  The 
Union priority for rural development relating to knowledge transfer and innovation in 
agriculture, forestry and rural areas should apply horizontally in relation to the other 
Union priorities for rural development.  

(6) 

The  Union's  priorities  for  rural  development  should  be  pursued  in  the  framework  of 
sustainable  development  and  the  Union's  promotion  of  the  aim  of  protecting  and 

13 

COM(2010) 2020 final, 3.3.2010. 

EN 

11 

   EN 

 
                                                 
(7) 

(8) 

improving the environment as set out in Articles 11 and 19 of the Treaty, taking into 
account the polluter pays principle. The Member States should provide information on 
the support for climate change objectives in line with the ambition to devote at least 
20%  of  the  Union  budget  to  this  end,  using  a  methodology  adopted  by  the 
Commission. 

The activities of the European Agricultural Fund for Rural Development (hereinafter 
"the  EAFRD")  and  the  operations  to  which  it  contributes  should  be  consistent  and 
compatible with support from other instruments of the CAP. In order to ensure optimal 
allocation  and  efficient  utilisation  of  Union  resources  the  power  to  adopt  acts  in 
accordance with Article 290 of the Treaty should be delegated to the Commission in 
respect of defining exceptions to the rule that no support under this Regulation should 
be granted to operations supported under common market organisations.  

In  order  to  ensure  the  immediate  start  and  efficient  implementation  of  rural 
development programmes, support from the EAFRD should be based on the existence 
of sound administrative framework conditions. Member States should therefore assess 
compliance  with  certain  ex  ante  conditionalities.  Each  Member  State  should  prepare 
either  a  national  rural  development  programme  for  its  entire  territory  or  a  set  of 
regional programmes. Each programme should identify a strategy for meeting targets 
in relation to the Union priorities for rural development and a selection of measures. 
Programming should comply with Union priorities for rural development, while being 
adapted to national contexts and complement the other Union policies, in particular the 
agricultural market policy, cohesion policy and the common fisheries policy. Member 
States  which  opt  for  a  set  of  regional  programme  should  be  able  to  also  prepare  a 
national framework, without a separate budgetary allocation, in order to facilitate co-
ordination among the regions in addressing nation-wide challenges. 

(9)  Member  States  should  be  able  to  include  in  their  rural  development  programmes 
thematic sub-programmes to address specific needs in areas of particular importance to 
them. Thematic  sub-programmes should  concern among others young farmers, small 
farms,  mountain  areas  and  the  creation  of  short  supply  chains.  Thematic  sub-
programmes should also be used to provide for the possibility to address restructuring 
of agricultural sectors which have a strong impact on the development of rural areas. 
As  a  means  to  increase  the  efficient  intervention  of  such  thematic  sub-programmes 
Member  States  should  be  allowed  to  provide  for  higher  support  rates  for  certain 
operations covered by them.  

(10)  Rural  development  programmes  should  identify  the  needs  of  the  area  covered  and 
describe a coherent strategy to meet them in the light of the Union priorities for rural 
development.  This  strategy  should  be  based  on  the  setting  of  targets.  The  links 
between  the  needs  identified,  the  targets  set  and  the  choice  of  measures  selected  to 
meet them should be established. Rural development programmes should also contain 
all  the  information  required  to  assess  their  conformity  with  the  requirements  of  this 
Regulation.  

(11)  Targets are to be established in rural development programmes against a common set 
of target indicators for all Member States. In order to facilitate this exercise the areas 
covered  by  these  indicators  should  be  defined,  in  line  with  the  Union  priorities  for 
rural  development.  Given  the  horizontal  application  of  the  Union  priority  for  rural 
development  relating  to  knowledge  transfer  in  agriculture  and  forestry,  interventions 

EN 

12 

   EN 

 
(12) 

(13) 

under this priority are to be considered as instrumental to the target indicators defined 
for the remaining Union priorities. 

It  is  necessary  to  establish  certain  rules  for  programming  and  revising  rural 
development  programmes.  A  lighter  procedure  should  be  provided  for  revisions  not 
affecting  the  strategy  of  the  programmes  or  the  respective  Union  financial 
contributions.  

In order to ensure legal certainty and clarity concerning the procedure to be followed 
in  the  case  of  programme  amendments,  the  power  to  adopt  acts  in  accordance  with 
Article  290  of  the  Treaty  should  be  delegated  to  the  Commission  in  respect  of  the 
setting of the criteria on the basis of which proposed changes of the quantified targets 
of the programmes shall be considered as major, thus triggering the need to amend the 
programme by means of an implementing act adopted in accordance with Article 91 of 
this Regulation.  

(14)  The  evolution  and  specialisation  of  agriculture  and  forestry  and  the  particular 
challenges faced by micro-, small and medium-sized enterprises (hereinafter "SMEs") 
in rural areas require an appropriate level of technical and economic training as well as 
an increased capacity to access and exchange knowledge and information including in 
the form of diffusion of best agricultural and forestry production practices. Knowledge 
transfer and information actions should take not only the  form of  traditional  training 
courses  but  be  adapted  to  the  needs  of  rural  actors.  Workshops,  coaching, 
demonstration  activities,  information  actions  but  also  short-term  farm  exchange  or 
visit  schemes  should  therefore  also  be  supported.  Knowledge  and  information 
acquired should enable farmers, forest holders, persons engaged in the food sector and 
rural SMEs to enhance in particular their competitiveness and resource efficiency and 
improve  their  environmental  performance  while  at  the  same  time  contributing  to  the 
sustainability  of  the  rural  economy.  In  order  to  ensure  that  knowledge  transfer  and 
information actions are effective in delivering these results it should be required that 
the providers of knowledge transfer services have all the appropriate capabilities.  

(15) 

In  order  to  ensure  that  bodies  providing  knowledge  transfer  services  are  able  to 
provide  services of  a  quality  and  nature  that is in line with the  purposes  of the  rural 
development  policy,  to  ensure  a  better  targeting  of  funds  and  to  ensure  that  farm 
exchange schemes and farm visits are clearly demarcated in relation to similar actions 
under other Union schemes, the power to adopt acts in accordance with Article 290 of 
the  Treaty  should  be  delegated  to  the  Commission  in  respect  of  minimum 
qualifications of bodies providing knowledge transfer, eligible costs and the duration 
and content of farm exchange schemes and farm visits. 

(16)  Farm  advisory  services  help  farmers,  forest  holders  and  SMEs  in  rural  areas  to 
improve  the  sustainable  management  and  overall  performance  of  their  holding  or 
business.  Therefore  both  the  setting  up  of  such  services  and  the  use  of  advice  by 
farmers,  forest  holders  and  SMEs  should  be  encouraged.  In  order  to  enhance  the 
quality  and  effectiveness  of  the  advice  offered,  provision  should  be  made  for  the 
minimum  qualifications  and  regular  training  of  advisors.  Farm  advisory  services,  as 
provided  for  in  Regulation  of  the  European  Parliament  and  of  the  Council  (EU)  No 

EN 

13 

   EN 

 
HR/2012  of  […]14  should  help  farmers  assess  the  performance  of  their  agricultural 
holding and identify the necessary improvements as regards the statutory management 
requirements,  good  agricultural  and  environmental  conditions,  agricultural  practices 
beneficial  to  the  climate  and  the  environment  set  out  in  Regulation  of  the  European 
Parliament  and  of  the  Council  (EU)  No  DP/2012  of  […]15,  requirements  or  actions 
related to climate change mitigation and adaptation, biodiversity, protection of water, 
animal  disease  notification  and  innovation  at  least  as  laid  down  in  Annex  I  to 
Regulation (EU) No HR/2012. Where relevant, advice should also cover occupational 
safety  standards.  Advice  may  also  cover  issues  linked  to  the  economic,  agricultural 
and  environmental  performance  of  the  holding  or  enterprise.  Farm  management  and 
farm  relief  services  should  help  farmers  improve  and  facilitate  management  of  their 
holding. 

(17) 

In  order  to  ensure  that  bodies  and  authorities  offering  advisory  services  are  able  to 
provide  advice  of  a  quality  and  nature  that  is  in  line  with  the  purposes  of  rural 
development  policy,  the  power  to  adopt  acts  in  accordance  with  Article  290  of  the 
Treaty should be delegated to the Commission in respect of the further specification of 
the minimum qualifications of the authorities and bodies providing advice. 

(18)  Union  or  national  quality  schemes  for  agricultural  products  and  food  provide 
consumers  with  assurances  on  the  quality  and  characteristics  of  the  product  or  the 
production  process  used  as  a  result  of  the  participation  of  farmers  in  such  schemes, 
achieve  added  value  for  the  products  concerned  and  enhance  their  market 
opportunities. Farmers should therefore be encouraged to participate in these schemes. 
Given that it is at the moment of entering such schemes and in the early years of their 
participation  that  additional  costs  and  obligations  imposed  on  farmers  as  a  result  of 
their participation are not fully remunerated by the market, support should be limited 
to new participation and cover a period of no more than five years. Given the special 
characteristics of cotton as a farm product, quality schemes for cotton should also be 
covered.  In  order  to  ensure  the  efficient  and  effective  use  of  EAFRD  budgetary 
resources, the power to adopt acts in accordance with Article 290 of the Treaty should 
be delegated to the Commission in respect of the Union quality schemes that may be 
covered by this measure.  

(19) 

In  order  to  improve  the  economic  and  environmental  performance  of  agricultural 
holdings  and  rural  enterprises,  improve  the  efficiency  of  the  agricultural  products 
marketing and processing sector, provide infrastructure needed for the development of 
to  achieve 
agriculture  and  support  non-remunerative 
environmental aims, support should be provided to physical investments contributing 
to  these  aims.  During  the  2007-2013  programming  period  a  variety  of  measures 
covered  different  areas  of  intervention.  In  the  interest  of  simplification  but  also  of 
allowing  beneficiaries  to  design  and  realise  integrated  projects  with  increased  added 
value, a single measure should cover all types of physical investments. Member States 
should  define  a  threshold  for  agricultural  holdings  eligible  for  aid  for  investments 
related to supporting farm viability based on the results of the strengths, weaknesses, 
opportunities and threats ("SWOT") analysis as means to better target the aid.  

investments  necessary 

14 
15 

OJ L […], […], p. […]. 
OJ L […], […], p. […]. 

EN 

14 

   EN 

 
                                                 
(20)  The agricultural sector is subject more than other sectors to damage to its productive 
to  help  farm  viability  and 
potential  caused  by  natural  disasters.  In  order 
competitiveness  in  the  face  of  such  disasters  support  should  be  provided  for  helping 
farmers restore agricultural potential damaged. Member States should also ensure that 
no overcompensation of damages  occurs as a result  of the combination of Union  (in 
particular the risk management measure), national and private compensation schemes. 
In order to ensure the efficient and effective use of EAFRD budgetary resources, the 
power to adopt acts in accordance with Article 290 of the Treaty should be delegated 
to the Commission in respect of defining the eligible costs under this measure.  

(21)  The  creation  and  development  of  new  economic  activity  in  the  form  of  new  farms, 
new  businesses  or  new  investments  in  non-agricultural  activities  is  essential  for  the 
development  and  competitiveness  of  rural  areas.  A  farm  and  business  development 
measure should facilitate the initial establishment of young farmers and the structural 
adjustment of their holdings after initial setting up, diversification of farmers into non-
agricultural activities and the setting up and development of non-agricultural SMEs in 
rural areas. The development of small farms which are potentially economically viable 
should also be encouraged. In order to ensure the viability of new economic activities 
supported under this measure, support should be made conditional on the submission 
of a business plan. Support for business start up should cover only the initial period of 
the life of a business and not become operating aid. Therefore, where Member States 
opt to grant aid in instalments these should be for a period of no more than five years. 
In addition in order to encourage the restructuring of the agricultural sector, support in 
the form of annual payments should be provided for farmers participating in the small 
farmers scheme established by Title V of Regulation (EU) No DP/2012 who commit 
to transfer their entire holding and the corresponding payment entitlements to another 
farmer who does not participate in that scheme. 

(22)  SMEs  are  the  backbone  of  the  Union  rural  economy.  Farm  and  non-agricultural 
business development should be aimed at employment promotion and the setting up of 
quality  jobs  in  rural  areas,  maintenance  of  already  existing  jobs,  reduction  of 
seasonality  fluctuations  in  employment,  development  of  non-agricultural  sectors 
outside  agriculture  and  agricultural  and  food  processing  while  fostering  at  the  same 
time business integration and local inter-sectoral links. Projects integrating at the same 
time  agriculture,  rural  tourism  through  promotion  of  sustainable  and  responsible 
tourism  in  rural  areas,  natural  and  cultural  heritage  should  be  encouraged  as  well  as 
renewable energy investments. 

(23) 

In order to ensure the efficient and effective use of EAFRD budgetary resources and to 
guarantee the protection of the rights of beneficiaries and avoid discrimination among 
them, the power to adopt acts in accordance with Article 290 of the Treaty should be 
delegated to the Commission in respect of laying down conditions under which legal 
persons  may  be  considered  as  young  farmers,  the  setting  of  a  grace  period  for  the 
acquisition  of  occupational  skills,  the  minimum  content  of  business  plans  and  the 
criteria to be used by Member States for the definition of small farms and of upper and 
lower thresholds for determining the eligibility of an operation under the support for 
young farmers or development of small farms respectively.  

(24)  The  development  of  local  infrastructure  and  local  basic  services  in  rural  areas, 
including  leisure  and  culture,  the  renewal  of  villages  and  activities  aimed  at  the 
restoration  and  upgrading  of  the  cultural  and  natural  heritage  of  villages  and  rural 

EN 

15 

   EN 

 
landscapes  is  an  essential  element  of  any  effort  to  realise  the  growth  potential  and 
promote  the  sustainability  of  rural  areas.  Support  should  therefore  be  granted  to 
operations  with  this  aim,  including  the  access  to  Information  and  Communication 
Technologies and the development of fast and ultra-fast broadband. In line with these 
objectives, development of services and infrastructure leading to social inclusion and 
reversing trends of social and economic decline and depopulation of rural areas should 
be  encouraged.  In  order  to  achieve  the  maximum  effectiveness  for  such  support, 
covered  operations  should  be  implemented  in  accordance  with  plans  for  the 
development  of  municipalities  and  their  basic  services,  where  such  plans  exist, 
elaborated  by  one  or  more  rural  communes.  In  order  to  ensure  coherence  with  the 
Unions climate objectives the power to adopt acts in accordance with Article 290 of 
the Treaty should be delegated to the Commission in respect of defining the types of 
renewable energy infrastructure that shall be eligible for support 

(25)  Forestry  is  an  integral  part  of  rural  development  and  support  for  sustainable  and 
climate  friendly  land  use  should  encompass  forest  area  development  and  sustainable 
management  of  forests.  During  the  2007-2013  programming  period  a  variety  of 
measures covered different types of support for forestry investments and management. 
In the interest of simplification but also of allowing beneficiaries to design and realise 
integrated projects with increased added value, a single measure should cover all types 
of  support  for  forestry  investments  and  management.  This  measure  should  cover  the 
extension  and  improvement  of  forest  resources  through  afforestation  of  land  and 
creation  of  agro-forestry  systems  combining  extensive  agriculture  with  forestry 
systems, restoration of forests damaged by fire or other natural disasters and relevant 
prevention measures, investments in new forestry technologies and in the processing 
and marketing of forest products aimed at improving the economic and environmental 
performance  of  forest  holders  and  non  remunerative  investments  which  improve 
ecosystem  and  climate  resilience  and  environmental  value  of  forest  ecosystems. 
Support  should  avoid  distorting  competition  and  be  market  neutral.  As  a  result 
limitations  should  be  imposed  relating  to  the  size  and  legal  status  of  beneficiaries. 
Preventive  actions  against  fires  should  be  in  areas  classified  by  Member  States  as 
medium or high fire risk. All preventive actions should be part of a forest protection 
plan.  The  occurrence  of  a  natural  disaster  in  the  case  of  action  for  the  restoration  of 
damaged  forest  potential  should  be  subject  to  the  formal  recognition  by  a  scientific 
public  organisation.  The  forestry  measure  should  be  adopted  in  the  light  of 
undertakings given by the Union and the Member States at international level, and be 
based  on  Member  States’  national  or  sub-national  forest  plans  or  equivalent 
instruments which should take into account the commitments made in the Ministerial 
Conferences  on  the  Protection  of  Forests  in  Europe.  It  should  contribute  to  the 
implementation of the Union Forestry Strategy16. In order to ensure that afforestation 
of agricultural land is in line with the aims of environmental policy the power to adopt 
acts  in  accordance  with  Article  290  of  the  Treaty  should  be  delegated  to  the 
Commission  in  respect  of  the  definition  of  certain  minimum  environmental 
requirements. 

(26) 

In order to ensure the efficient and effective use of EAFRD budgetary resources, the 
power to adopt acts in accordance with Article 290 of the Treaty should be delegated 

16 

Council  Resolution  of  15  December  1998  on  a  forestry  strategy  for  the  European  Union,  OJ  C  56, 
26/2/1999, p. 1. [To be replaced by new strategyto be adopted by the end of 2013] 

EN 

16 

   EN 

 
                                                 
to the Commission in respect of laying down conditions under which Member States 
shall  establish  the  occurrence  of  a  natural  disaster  or  a  pest  or  disease  and  the 
definition of types of preventive actions that shall be eligible for EAFRD support.  

(27)  Producer  groups  help  farmers  to  face  jointly  the  challenges  posed  by  increased 
competition and consolidation of downstream markets in relation to the marketing of 
their  products  including  in  local  markets.  The  setting  up  of  producer  groups  should 
therefore be encouraged. In order to ensure the best use of limited financial resources 
only  producer  groups  that  qualify  as  SMEs  should  benefit  from  support.  In  order  to 
ensure  that  the  producer  group  becomes  a  viable  entity,  a  business  plan  should  be 
submitted as a condition for the recognition of a producer group by Member States. To 
avoid providing operating aid and maintain the incentive role of support, its maximum 
duration should be limited to five years.  

(28)  Agri-environment-climate  payments  should  continue  to  play  a  prominent  role  in 
supporting  the  sustainable  development  of  rural  areas  and  in  responding  to  society's 
increasing  demands  for  environmental  services.  They  should  further  encourage 
farmers  and  other  land  managers  to  serve  society  as  a  whole  by  introducing  or 
continuing  to  apply  agricultural  practices  contributing  to  climate  change  mitigation 
and  adaptation  and  compatible  with  the  protection  and  improvement  of  the 
environment,  the  landscape  and  its  features,  natural  resources,  the  soil  and  genetic 
diversity.  In  this  context  the  conservation  of  genetic  resources  in  agriculture  and  the 
additional  needs  of  farming  systems  that  are  of  high  nature  value  should  be  given 
specific attention. Payments should contribute to covering additional costs and income 
foregone  resulting  from  the  commitments  undertaken  and  should  only  cover 
commitments  going  beyond  relevant  mandatory  standards  and  requirements,  in 
accordance  with  the  "polluter  pays"  principle.  In  many  situations  the  synergies 
resulting  from  commitments  undertaken  jointly  by  a  group  of  farmers  multiply  the 
environmental and climate benefit. However, joint action brings additional transaction 
costs  which  should  be  compensated  adequately.  In  order  to  ensure  that  farmers  and 
other  land  managers  are  in  a  position  to  correctly  implement  the  commitments  they 
have undertaken, Member States should endeavour to provide them with the required 
skills and knowledge. Member States should maintain the level of efforts made during 
the 2007-2013 programming period and have to spend a minimum of 25% of the total 
contribution  from  the  EAFRD  to  each  rural  development  programme  for  climate 
change  mitigation  and  adaptation  and 
the  agri-
environment-climate,  organic  farming  and  payments  to  areas  facing  natural  or  other 
specific constraints measures.  

land  management, 

through 

(29) 

In order to ensure that agri-environment-climate commitments are defined in line with 
the  Union's  overall  environmental  objectives,  the  power  to  adopt  acts  in  accordance 
with  Article  290  of  the  Treaty  should  be  delegated  to  the  Commission  in  respect  of 
laying  down  the  conditions  applicable  to  the  annual  extension  of  commitments  after 
the initial period, commitments to extensify or manage differently livestock farming, 
to  limit  fertilisers,  plant  protection  products  or  other  inputs,  to  rear  local  breeds  in 
danger of being lost to farming or to preserve plant genetic resources and the eligible 
operations in relation to conservation of genetic resources in agriculture.  

(30)  Payments for the conversion to or maintenance of organic farming should encourage 
farmers to participate in such schemes thus answering society's increasing demand for 
the  use  of  environmentally  friendly  farm  practices  and  for  high  standards  of  animal 

EN 

17 

   EN 

 
welfare. In order to increase synergy in biodiversity benefits delivered by the measure, 
collective  contracts  or  collaboration  between  farmers  should  be  encouraged  to  cover 
larger adjacent areas. In order to avoid large-scale reversion of farmers to conventional 
farming,  both  conversion  and  maintenance  measures  should  be  supported.  Payments 
should contribute to covering additional costs incurred and income foregone as a result 
of  the  commitment  and  should  cover  only  commitments  going  beyond  relevant 
mandatory standards and requirements. 

(31)  Support  should  continue  to  be  granted  to  farmers  and  forest  holders  to  help  address 
specific  disadvantages  in  the  areas  concerned  resulting  from  the  implementation  of 
Directive  2009/147/EC  of  the  European  Parliament  and  of  the  Council  of  30 
November 2009 on the conservation of wild birds17 and Council Directive 92/43/EEC 
of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora18 in 
order  to  contribute  to  the  effective  management  of  Natura  2000  sites  while  support 
should also be made available to farmers to help address disadvantages in river basin 
areas  resulting  from  the  implementation  of  Directive  2000/60/EC  of  the  European 
Parliament  and  of  the  Council  of  23  October  2000  establishing  a  framework  for  the 
Community  action  in  the  field  of  the  water  policy19.  Support  should  be  linked  to 
specific  requirements  described  in  the  rural  development  programme  that  go  beyond 
relevant  mandatory  standards  and  requirements.  Furthermore,  the  specific  needs  of 
Natura  2000  areas  should  be  taken  into  account  by  Member  States  in  the  overall 
design of their rural development programmes. 

(32)  Payments to farmers in mountain areas or in other areas facing natural or other specific 
constraints  should  contribute,  by  encouraging  continued  use  of  agricultural  land  to 
maintaining  the  countryside  as  well  as  to  maintaining  and  promoting  sustainable 
farming  systems.  In  order  to  ensure  the  efficiency  of  such  support  payments  should 
compensate  farmers  for  income  foregone  and  additional  costs  linked  to  the 
disadvantage of the area concerned.  

(33) 

In order to ensure efficient use of Union funds and equal treatment for farmers across 
the Union mountain areas and areas facing natural or other specific constraints should 
be  defined  in  accordance  with  objective  criteria.  In  the  case  of  areas  facing  natural 
constraints  these  should  be  bio-physical  criteria  underpinned  by  robust  scientific 
evidence.  Transitional  arrangements  should  be  adopted  in  order  to  facilitate  the 
phasing  out  of  payments  in  areas  that  will  no  longer  be  considered  as  areas  facing 
natural constraints as a result of the application of these criteria. 

(34)  Farmers should continue to be encouraged to adopt high standards of animal welfare 
by  providing  for  support  for  farmers  that  undertake  to  adopt  standards  of  animal 
husbandry, which go beyond the relevant mandatory standards. In order to ensure that 
animal welfare commitments are in line with the overall Union policy in this field, the 
power to adopt acts in accordance with Article 290 of the Treaty should be delegated 
to the Commission in respect of the definition of the areas in which such commitments 
should provide upgraded standards of production methods.  

17 
18 
19 

OJ L 20, 26.1.2010, p. 7. 
OJ L 206, 22.7.1992, p. 7. 
OJ L 327, 22.12.2000, p. 1. 

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(35)  Payments should continue to be granted to forest holders who provide environmental 
or  climate  friendly  forest  conservation  services  by  undertaking  commitments  to 
enhance biodiversity, preserve high-value forest ecosystems, improve their mitigation 
and adaptation potential, and reinforce the protective value of forests with respect to 
soil erosion, to maintenance of water resources and to natural hazards. In this context 
the  conservation  and  promotion  of  forest  genetic  resources  should  be  given  specific 
attention.  Payments  shall  be  granted  for  forest  environmental  commitments  going 
beyond  relevant  mandatory  standards  established  by  national  legislation.  In  order  to 
ensure  the  efficient  and  effective  use  of  EAFRD  budgetary  resources,  the  power  to 
adopt  acts  in  accordance  with  Article  290  of  the  Treaty  should  be  delegated  to  the 
Commission  in  respect  of  the  types  of  operations  eligible  for  support  under  this 
measure.  

(36)  During  the  2007-2013  programming  period  only  one  type  of  co-operation  was 
explicitly supported under rural development policy: co-operation for the development 
of new products, processes and technologies in the agriculture and food sector and the 
forestry  sector.  Support  for  this  type  of  co-operation  is  still  necessary  but  should  be 
adapted  in  order  better  to  meet  the  requirements  of  the  knowledge  economy.  In  this 
context  the  possibility  should  be  provided  for  projects  by  a  single  operator  to  be 
financed under this measure, on condition that the results obtained are disseminated, 
thus  achieving  the  purpose  of  diffusion  of  new  practices,  processes  or  products.  In 
addition,  it  has  become  clear  that  supporting  a  much  broader  range  of  types  of  co-
operation, with a wider range of beneficiaries, from small operators to larger ones, can 
contribute  to  achieving  the  objectives  of  rural  development  policy  by  helping 
operators  in  rural  areas  to  overcome  the  economic,  environmental  and  other 
disadvantages  of  fragmentation.  Therefore,  the  measure  should  be  widened.  Support 
for small operators to organise joint work processes and share facilities and resources 
should  help  them  to  be  economically  viable  despite  their  small  scale.  Support  for 
horizontal and vertical co-operation among actors in the supply chain, as well as for 
promotion  activities  in  a  local  context,  should  catalyse  the  economically  rational 
development of short supply chains, local markets and local food chains. Support for 
collective  approaches  to  environmental  projects  and  practices  should  help  to  provide 
greater and more consistent environmental and climate benefits than can be delivered 
by  individual  operators  acting  without  reference  to  others  (for  example,  through 
practices  applied  on  larger  unbroken  areas  of  land).  Support  in  these  various  areas 
should be provided in various forms. Clusters and networks are particularly relevant to 
the sharing of expertise as well as the development of new and specialised expertise, 
services  and  products.  Pilot  projects  are  important  tools  for  testing  the  commercial 
applicability  of  technologies,  techniques  and  practices  in  different  contexts,  and 
adapting  them  where  necessary.  Operational  groups  are  a  pivotal  element  of  the 
European Innovation Partnership (hereinafter "EIP") for agricultural productivity and 
sustainability.  Another  important  tool  lies  in  local  development  strategies  operating 
outside  the  framework  of  LEADER  local  development  –  between  public  and  private 
actors  from  rural  and  urban  areas.  Unlike  within  the  LEADER  approach,  such 
partnerships and strategies could be limited to one sector and / or to relatively specific 
development aims, including those mentioned above. Inter-branch organisation should 
also  be  eligible  for  support  under  this  measure.  It  should  be  limited  to  seven  years 
except for collective environmental and climate action in duly justified cases. 

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(37)  Farmers  are  exposed  today  to  increasing  economic  and  environmental  risks  as  a 
consequence of climate change and increased price volatility. In this context, effective 
management  of  risks  has  an  increased  importance  for  farmers.  For  this  reason  a  risk 
management  measure  should  be  set  up  to  assist  farmers  in  addressing  the  most 
common risks faced by them. This measure should therefore support farmers to cover 
the premiums they pay for crop, animal and plant insurance as well as the setting up of 
mutual funds and the compensation paid by such funds to farmers for losses suffered 
as  a  result  of  the  outbreak  of  animal  or  plant  diseases  or  environmental  incidents.  It 
should also cover an income stabilisation tool in the form of a mutual fund to support 
farmers  facing  a  severe  drop  in  their  income.  In  order  to  ensure  that  there  is  equal 
treatment among farmers across the Union, that competition is not distorted and that 
the international obligations of the Union are respected, specific conditions should be 
provided  for  the  granting  of  support  under  these  measures.  In  order  to  ensure  the 
efficient  use  of  EAFRD  budgetary  resources  the  power  to  adopt  acts  in  accordance 
with  Article  290  of  the  Treaty  should  be  delegated  to  the  Commission  in  respect  of 
defining the minimum and maximum duration of commercial loans to mutual funds. 

(38)  The LEADER approach for local development has, over a number of years, proven its 
utility  in  promoting  the  development  of  rural  areas  by  fully  taking  into  account  the 
multi-sectoral  needs  for  endogenous  rural  development  through  its  bottom-up 
approach.  LEADER  should  therefore  be  continued  in  the  future  and  its  application 
should remain compulsory for all rural development programmes. 

(39) 

In order to ensure that local development strategies are applied at a territorial level that 
allows  them  to  deliver  results  that  effectively  contribute  to  the  Union  priorities  for 
rural development and innovation, the power to adopt acts in accordance with Article 
290  of  the  Treaty  should  be  delegated  to  the  Commission  in  respect  of  setting 
population  criteria  for  the  area  to  be  covered  by  each  such  strategy  and  the  detailed 
scope of preparatory and animation costs to be supported. 

(40)  Support to LEADER local development from the EAFRD should cover all aspects of 
the  preparation  and  implementation  of  local  development  strategies  and  operation  of 
local  action  groups  as  well  as  cooperation  among  territories  and  groups  which  carry 
out  bottom-up  and  community-led  local  development.  In  order  to  enable  partners  in 
rural areas not yet applying LEADER to test and prepare for the design and operation 
of a local development strategy a "LEADER start-up kit' should also be financed. In 
order  to  ensure  the  efficient  and  effective  use  of  EAFRD  budgetary  resources  the 
power to adopt acts in accordance with Article 290 of the Treaty should be delegated 
to the Commission in respect of the detailed definition of eligible animation costs for 
local action groups. 

(41) 

Investments  are  common  to  many  of  the  rural  development  measures  under  this 
Regulation  and  may  relate  to  operations  of  very  diverse  nature.  In  order  to  ensure 
clarity  in  the  implementation  of  these  operations  certain  common  rules  for  all 
investments  should  be  laid  down.  These  common  rules  should  define  the  types  of 
expenditure  that  may  be  considered  as  investment  expenditure  and  ensure  that  only 
such investments that create new value in agriculture receive support. In order to take 
account of specificities relating to particular types of investments such as the purchase 
of  second  hand  equipment  and  simple  replacement  investments  while  ensuring  the 
efficient use of EAFRD funds, the power to adopt acts in accordance with Article 290 
of  the  Treaty  should  be  delegated  to  the  Commission  in  respect  of  setting  the 

EN 

20 

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conditions  under  which  certain  types  of  investments  may  be  considered  as  eligible 
expenditure.  In  order  to  facilitate  realisation  of  investment  projects  it  should  be 
possible for Member States to pay advances. To ensure the effectiveness, fairness and 
sustainable  impact  of  EAFRD  assistance,  rules  should  be  laid  down  to  ensure  that 
investments related to operations are durable and that EAFRD support is not used to 
distort competition. 

(42)  Certain  area  related  measures  under  this  Regulation  involve  the  undertaking  on  the 
part  of  beneficiaries  of  commitments  extending  over  at  least  five  years.  During  this 
period changes may occur to the situation of either the holding or of the beneficiary. 
Rules should therefore be laid down in order to determine the course to be followed in 
these  cases.  In  order  to  ensure  the  efficient  implementation  of  area  related  measures 
and secure the financial interests of the Union the power to adopt acts in accordance 
with  Article  290  of  the  Treaty  should  be  delegated  to  the  Commission  in  respect  of 
setting the conditions applicable in case of partial transfer of a holding, defining other 
situations in which reimbursement of the aid shall not be required. 

(43)  Certain  measures  under  this  Regulation  provide  as  a  condition  for  granting  support 
that beneficiaries undertake commitments going beyond a relevant baseline defined in 
terms  of  mandatory  standards  or  requirements.  In  view  of  possible  changes  in 
legislation during the period of the commitments that have as a result the modification 
of the baseline, provision should be made for the revision of the contracts concerned in 
order to ensure continued respect of this condition. 

(44) 

In order to ensure that financial resources for rural development are used in the best 
possible  way  and  to  target  measures  under  rural  development  programmes  in 
accordance with the Union priorities for rural development but also to guarantee equal 
treatment  of  applicants,  Member  States  should  establish  selection  criteria  for  the 
selection  of  projects.  Exception  to  this  rule  should  be  made  only  for  those  measures 
for  which  support  consists  in  payments  for  the  provision  of  agri-environmental  or 
animal welfare services. In the application of selection criteria account should be taken 
of the principle of proportionality in what concerns small grants. 

(45)  The  EAFRD  should  support  through  technical  assistance  actions  relating  to  the 
implementation  of  rural  development  programmes,  including  costs  related  to  the 
protection  of  symbols  and  abbreviations  relating  to  Union  quality  schemes  for 
participation in which support may be granted under this Regulation and costs of the 
Member  States  for  the  delimitation  of  areas  facing  natural  constraints.  In  order  to 
ensure  the  efficient  use  of  EAFRD  budgetary  resources,  the  power  to  adopt  acts  in 
accordance with Article 290 of the Treaty should be delegated to the Commission in 
respect of the control activities that may be financed under technical assistance.  

(46)  The  networking  of  national  networks,  organisations  and  administrations  involved  in 
the  various  stages  of  programme  implementation,  organised  in  the  context  of  the 
European network for rural development, has proven that it can play a very important 
role  in  improving  the  quality  of  rural  development  programmes  by  increasing  the 
involvement  of  stakeholders  in  the  governance  of  rural  development  as  well  as  in 
informing the broader public of its benefits. It should therefore be financed as part of 
the technical assistance at Union level. 

EN 

21 

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(47) 

In  order  to  contribute  to  the  achievement  of  the  aims  of  the  EIP  for  agricultural 
productivity  and  sustainability  a  EIP  network  should  be  set  up  in  order  to  network 
operational groups, advisory services and researchers involved in the implementation 
of actions targeting innovation in agriculture. It should be financed as part of technical 
assistance at Union level. 

(48)  During the 2007 -2013 programming period an evaluation expert network operated in 
the  context  of  the  European  network  for  rural  development.  To  take  account  of  the 
specific  needs  of  evaluation,  a  European  evaluation  network  for  rural  development 
should be set up for the 2014-2020 programming period in order to bring together all 
actors  involved  in  evaluation  activities  to  facilitate  the  exchange  of  expertise  in  the 
field. It should be financed as part of technical assistance. 

(49)  Member States should reserve a portion of the total amount of each rural development 
programme devoted to technical assistance to finance the setting up and operation of a 
national rural network bringing together organisations and administrations involved in 
rural  development,  including  the  partnership,  with  the  aim  of  increasing  their 
involvement in the implementation of the programme and improve the quality of rural 
development programmes. National rural networks should prepare and implement an 
action plan. 

(50)  The  EAFRD  should  signal  the  Union's  recognition  of  how  local  development 
approaches and a trans-national dimension can reinforce each other, especially when 
an innovative spirit is applied. It should do this by awarding prizes to a limited number 
of projects which exemplify these characteristics. The prizes should complement other 
sources  of  funding  available  through  rural  development  policy  by  conferring 
recognition  on  any  leading  suitable  project,  whether  or  not  that  project  was  also 
financed through a rural development programme.  

(51)  Rural  development  programmes  should  provide  for  innovative  actions  promoting  a 
resource-efficient, productive and low-emission agricultural sector, with the support of 
the EIP foragricultural productivity and sustainability. The EIP should aim to promote 
a faster and wider transposition of innovative solutions into practice. The EIP should 
create  added  value  by  enhancing  the  uptake  and  effectiveness  of  innovation-related 
instruments and enhancing synergies between them. The EIP should fill gaps by better 
linking research and practical farming. 

(52) 

Implementation  of  innovative  projects  in  the  context  of  the  EIP  for  agricultural 
productivity  and  sustainability  should  be  undertaken  by  operational  groups  bringing 
together  farmers,  researchers,  advisors,  businesses  and  other  actors  concerned  by 
innovation  in  the  agricultural  sector.  In  order  to  ensure  that  results  of  such  projects 
profit to the sector as a whole, their results should be disseminated. 

(53)  Provision should be made for the determination of the total amount of Union support 
for rural development under this Regulation for the period from 1 January 2014 to 31 
December 2020, its annual breakdown and the minimum amount to be concentrated in 
less developed regions in accordance with the Multi-annual Financial Framework for 
the  period  2014  to  2020  and  the  Interinstitutional  Agreement  on  cooperation  in 

EN 

22 

   EN 

 
budgetary  matters  and  on  sound  financial  management20  for  the  same  period.  The 
appropriations available should be indexed on a flat-rate basis for programming. 

(54) 

In  order  to  facilitate  the  management  of  EAFRD  funds,  a  single  contribution  rate  of 
the  EAFRD  to  rural  development  programming  should  be  set  in  relation  to  public 
expenditure  in  the  Member  States.  In  order  to  take  account  of  the  particular 
importance or nature of certain types of operations, specific contribution rates should 
be set in relation to them. In order to mitigate the specific constraints resulting from 
level of development, remoteness and insularity an appropriate contribution rate of the 
EAFRD should be set for less-developed regions, outermost regions referred to in the 
Treaty and the smaller Aegean islands. 

(55)  Funds released in Members States as a result of the application of the upper ceiling to 
directs payments received by large individual farms under the first pillar of the CAP 
should  be  reserved  for  financing,  in  each  Member  State  of  projects  related  to 
innovation  in  order  to  help  farms,  including  large  farms,  to  increase  their 
competitiveness in the framework of the objectives of the CAP. These projects should 
be  initiated  by  farmers,  whatever  the  size  of  their  farms,  EIP  operational  groups  or 
local action groups, groups of partners involved in the agricultural sector. 

(56)  Member States should take all the necessary steps and put in place adequate provisions 
to ensure that their rural development measures are verifiable and controllable. To this 
end the Managing Authority and Paying Agency should provide an ex ante assessment 
and  undertake  to  assess  measures  throughout  the  implementation  of  the  programme. 
Measures not respecting this condition should be adjusted. 

(57)  The  Commission  and  Member  States  should  take  all  required  steps  to  ensure  sound 
management  of  rural  development  programmes.  In  this  context  the  Commission 
should  undertake  adequate  controls  and  the  Member  States  should  take  measures  to 
guarantee sound functioning of their management system. 

(58)  A  single  Managing  Authority  should  be  responsible  for  the  management  and 
implementation of each rural development programme. Its duties should be specified 
in  this  Regulation.  The  Managing  Authority  should  be  able  to  delegate  part  of  its 
duties  while  retaining  the  responsibility  for  the  efficiency  and  correctness  of 
management.  In  case  a  rural  development  programme  contained  thematic  sub-
programmes the Managing Authority should be able to designate another body to carry 
out  fully  management  and  implementation  of  that  sub-programme  in  relation  to  the 
financial allocations that have been identified for it in the programme while ensuring 
sound financial management of these sub-programmes. 

(59)  Each  rural  development  programme  should  be  subject  to  monitoring  in  order  to 
regularly  follow  the  implementation  of  the  programme  and  progress  towards  the 
established targets of the programme. Demonstrating and improving the effectiveness 
and impact of actions under the EAFRD also depends on appropriate evaluation during 
the preparation and implementation of a programme and its completion. A monitoring 
and evaluation system should therefore be set up in common by the Commission and 

20 

OJ L […], […], p. […]. 

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23 

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the Member States with the purpose of demonstrating the progress and assessing the 
impact and efficiency of rural development policy implementation.  

(60) 

In order to ensure that information can be aggregated at Union level a set of common 
indicators should form part of the system. Key information on the implementation of 
rural development programmes should be recorded and maintained electronically as a 
means  to  facilitate  data  aggregation.  Beneficiaries  should  therefore  be  required  to 
provide  the  minimum  necessary  information  that  is  needed  for  monitoring  and 
evaluation. 

(61)  Responsibility  for  monitoring  of  the  programme  should  be  shared  between  the 
Managing  Authority  and  a  Monitoring  Committee  set  up  for  this  purpose.  The 
Monitoring  Committee  should  have  as  its  task  to  monitor  the  effectiveness  of 
implementation of the programme. To this end its responsibilities should be specified.  

(62)  Monitoring  of  the  programme  should  involve  the  drawing  up  of  an  annual 

implementation report, to be sent to the Commission.  

(63)  Each  rural  development  programme  should  be  subject  to  evaluation  in  order  to 

improve its quality and demonstrate its achievements.  

(64)  Articles  107,  108  and  109  of  the  Treaty  should  apply  to  the  support  for  the  rural 
development  measures  under  this  Regulation.  Nevertheless,  it  should  be  established 
that,  given  the  specificity  of  the  agricultural  sector,  the  rural  development  measures 
concerning  operations  falling  within  the  scope  of  Article  42  of  the  Treaty,  that  are 
carried out under and in conformity with this Regulation, as well as payments made by 
the  Member  States,  intended  to  provide  additional  national  financing  for  rural 
development operations for which Union support is granted and which fall within the 
scope of Article 42 of the Treaty should be excluded from the application of Articles 
107, 108 and 109 of the Treaty.  

intended 

their  appropriate  monitoring,  when  assessing 

(65)  Moreover,  in  view  of  ensuring  consistency  with  the  rural  development  measures 
eligible for Union support and in order to simplify procedures, payments made by the 
Member  States, 
to  provide  additional  national  financing  for  rural 
development operations for which Union support is granted and which fall within the 
scope of Article 42 of the Treaty, should be authorised as a part of programming under 
a notification procedure in accordance with the provisions of this Regulation. In order 
to  ensure 
the 
Commission should apply the criteria established for the application of Article 107 of 
the  Treaty  by  way  of  analogy.  In  order  to  ensure  that  additional  national  financing 
which  is  not  authorised  by  the  Commission  is  not  implemented,  the  Member  State 
concerned should not put its proposed additional financing for rural development into 
effect  until  it  has  been  approved.  Payments  made  by  Member  States  intended  to 
provide  additional  national  financing  for  rural  development  operations  for  which 
Union support is granted and which fall outside the scope of Article 42 of the Treaty 
should be notified to the Commission pursuant to Article 108(3) of the Treaty, unless 
they  fall  under  a  regulation,  adopted  pursuant  to  Council  Regulation  994/9821,  and 

these  payments 

21 

Council Regulation (EC) No 994/98 of 7 May 1998 on the application of Articles 92 and 93 (now 107 
and  108  respectively)  of  the  Treaty  establishing  the  European  Community  to  certain  categories  of 
horizontal State aid, OJ L 142, 14.05.1998, p.1. 

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24 

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may not be put into effect until this procedure has resulted in a final approval by the 
Commission. 

(66)  An  electronic  information  system  should  be  established  to  provide  an  efficient  and 

secure exchange of data.  

(67)  Union  legislation  concerning  the  protection  of  individuals  with  regard  to  the 
processing  of  personal  data  and  on  the  free  movement  of  such  data,  in  particular 
Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 
on the protection of individuals with regard to the processing of personal data and on 
the  free  movement  of  such  data22  and  Regulation  (EC)  No  45/2001  of  the  European 
Parliament and of the Council of 18 December 2000 on the protection of individuals 
with  regard  to  the  processing  of  personal  data  by  the  Community  institutions  and 
bodies and on the free movement of such data23 are applicable. 

(68) 

In  order  to  ensure  uniform  conditions  for  the  implementation  of  this  Regulation  in 
relation  to  the  presentation  of  rural  development  programmes,  the  approval  of 
programmes and of amendments thereof, the procedures and timetables for approval of 
programmes, the procedures and timetables for the approval programme amendments, 
including their entry in to force and frequency of submission, specific conditions for 
the  implementation  of  rural  development  measures,  the  structure  and  operation  of 
networks  set-up  by  this  Regulation,  the  adoption  of  the  monitoring  and  evaluation 
system,  the  rules  for  the  operation  of  the  information  system,  implementing  powers 
should  be  conferred  on  the  Commission.  Those  powers  should  be  exercised  in 
accordance  with  Regulation  (EU)  No  182/2011  of  the  European  Parliament  and  the 
Council of 16 February 2011 laying down the rules and general principles concerning 
mechanisms  for  control  by  the  Member  States  of  the  Commission's  exercise  of 
implementing powers24. 

(69)  The new support scheme provided for by this Regulation replaces the support scheme 
set up by Regulation (EC) No 1698/2005. Therefore, Regulation (EC) No 1698/2005 
should be repealed from 1 January 2014.  

(70) 

In  order  to  facilitate  a  smooth  transition  from  the  system  established  by  Regulation 
(EC) No 1698/2005 to the system established by this Regulation, the power to adopt 
acts  in  accordance  with  Article  290  of  the  Treaty  should  be  delegated  to  the 
Commission in respect of establishing transitional provisions, 

HAVE ADOPTED THIS REGULATION: 

22 
23 
24 

OJ L 281, 23.11.1995, p.31 
OJ L 8, 12.1.2001, p. 1. 
OJ L 55, 28.2.2011, p. 13. 

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25 

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TABLE OF CONTENTS 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on support 
for rural development by the European Agricultural Fund for Rural Development (EAFRD) 10 

TITLE I Objectives and Strategy ............................................................................................. 28 

Chapter I Scope and Definitions .............................................................................................. 28 

Chapter II Mission, objectives, priorities and consistency....................................................... 31 

TITLE II Programming ............................................................................................................ 34 

Chapter I  Programming content .............................................................................................. 34 

Chapter II Preparation, approval and amendment of rural development programmes ............ 38 

TITLE III Rural development support ..................................................................................... 40 

Chapter I Measures................................................................................................................... 40 

Section 1 Individual Measures ................................................................................................. 40 

Section 2 Leader....................................................................................................................... 64 

Chapter II Common provisions for several measures .............................................................. 66 

Chapter III Technical assistance and networking .................................................................... 68 

Chapter IV Prize for innovative, local cooperation in rural areas............................................ 73 

TITLE IV  EIP for agricultural productivity and sustainability............................................... 75 

TITLE V Financial provisions ................................................................................................. 77 

TITLE VI Management, control and publicity ........................................................................ 83 

TITLE VII Monitoring and evaluation..................................................................................... 86 

Chapter I General provisions.................................................................................................... 86 

Section 1 Establishment and Objectives of a monitoring and evaluation system.................... 86 

Section 2 Technical provisions ................................................................................................ 87 

Chapter II Monitoring .............................................................................................................. 88 

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Chapter III Evaluation.............................................................................................................. 89 

TITLE VIII Competition provisions ........................................................................................ 91 

TITLE IX Commission powers, common provisions and transitional and final provisions.... 92 

Chapter I Commission powers ................................................................................................. 92 

Chapter II Common provisions ................................................................................................ 93 

Chapter III Transitional and final provisions ........................................................................... 93 

ANNEX I  Amounts and support rates..................................................................................... 95 

ANNEX II  Biophysical criteria for the delimitation of areas facing natural constraints ........ 99 

ANNEX III  Indicative list of measures and operations of particular relevance to thematic 
sub-programmes referred to in Article 8 ................................................................................ 101 

ANNEX IV  Ex ante conditionalities for rural development ................................................. 103 

ANNEX V  Indicative list of measures with relevance to one or more Union priorities for 
rural development................................................................................................................... 109 

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TITLE I 
Objectives and Strategy 

Chapter I 
Scope and Definitions 

Article 1 

Scope 

1. 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

2. 

1. 

(a) 

This Regulation: 

lays  down  the  general  rules  governing  Union  support  for  rural  development, 
financed  by  the  European  Agricultural  Fund  for  Rural  Development  (hereinafter 
"the EAFRD"), established by Regulation (EU) No HR/2012; 

defines  the  objectives  to  which  rural  development  policy  is  to  contribute  and  the 
relevant Union priorities for rural development; 

outlines the strategic context for rural development policy; 

defines the measures of rural development policy; 

lays  down  rules  on  programming,  networking,  management,  monitoring  and 
evaluation  on  the  basis  of  responsibilities  shared  between  the  Member  States  and 
the Commission.  

lays  down  the  rules  to  ensure  co-ordination  of  the  EAFRD  with  other  Union 
instruments. 

This  Regulation  complements  the  provisions  of  Part  Two  of  Regulation  (EU)  No 
[CSF/2012]. 

Article 2 

Definitions 

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

"programming":  the  process  of  organisation,  decision  taking  and  allocating  the 
financial resources in several stages intended to implement, on a multi-annual basis, 
the joint action by the Union and the Member States to achieve the Union priorities 
for rural development;  

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(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

(j) 

(k) 

(l) 

(m) 

"region":  territorial  unit  corresponding  to  level  1  or  2  of  the  Nomenclature  of 
territorial  units  for  statistics  (NUTS  level  1  and  2)  within  the  meaning  of 
Regulation (EC) No 1059/2003 of the European Parliament and of the Council25; 

"measure": a set of operations contributing to one or more of the Union priorities 
for rural development; 

"operation":  a  project,  group  of  projects,  contract,  or  arrangement  or  other  action 
selected according to criteria for the rural development programme concerned and 
implemented by one or more beneficiaries allowing achievement of one or more of 
the Union priorities for rural development;  

"beneficiary":  a  natural  or  legal  person  or  other  body,  whether  public  or  private, 
responsible for implementing operations or receiving support;  

"monitoring  and  evaluation  system":  a  general  approach  developed  by  the 
Commission  and  the  Member  States  defining  a  limited  number  of  common 
indicators  relating  to  the  baseline  situation  and  the  financial  execution,  outputs, 
results, and impacts of the programmes; 

"local development strategy": a coherent set of operations to meet local objectives 
and needs, which contributes to meeting the Union priorities for rural development, 
implemented in partnership at the appropriate level;  

"support rate": the rate of the total public contribution to an operation; 

"public expenditure": any public contribution to the financing of operations whose 
origin is the budget of the State, of regional and local authorities, of the Union and 
any  similar  expenditure.  Any  contribution  to  the  financing  of  operations  whose 
origin is the budget of public law bodies or associations of one or more regional or 
local  authorities  or  public 
the  meaning  of  Directive 
law  bodies,  within 
2004/18/EC26, shall be regarded as public contribution; 

"less developed regions": regions whose gross domestic product (GDP) per capita 
is less than 75% of the average GDP of the EU-27; 

“micro-, small and medium-sized enterprises” (hereinafter "SMEs") : micro-, small 
and  medium-sized  enterprises  as  defined  in  Commission  Recommendation 
2003/361/EC27; 

“transaction cost”: a cost linked to a commitment but not directly attributable to its 
implementation; 

utilised agricultural area (hereinafter “UAA”): utilised agricultural area within the 
meaning of Commission Regulation (EC) No 1200/2009 of 30 November 200928; 

25 
26 
27 
28 

OJ L 154, 21.6.2003, p. 1. 
OJ L 134, 30.4.2004, p. 114. 
OJ L 124, 20.5.2003, p. 36. 
OJ L 329, 15.12.2009, p. 1. 

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(n) 

(o) 

(p) 

(q) 

(r) 

(s) 

(t) 

(u) 

(v) 

(w) 

(x) 

2. 

“economic  losses”:  any  additional  cost  incurred  by  a  farmer  as  a  result  of 
exceptional measures taken by the farmer with the objective of reducing supply on 
the market concerned or any substantial loss of production; 

“adverse  climatic  event”:  weather  conditions,  such  as  frost,  storms  and  hail,  ice, 
heavy rain or severe drought, which can be assimilated to a natural disaster; 

“animal diseases”: diseases mentioned in the list of animal diseases established by 
the  World  Organisation  for  Animal  Health  or  in  the  Annex  to  Council  Decision 
90/424/EEC29; 

“environmental  incident”:  a  specific  occurrence  of  pollution,  contamination  or 
degradation  in  the  quality  of  the  environment  related  to  a  specific  event  and  of 
limited  geographical  scope.  It  does  not  cover  general  environmental  risks  not 
connected with a specific event, such as climate change or atmospheric pollution; 

"natural disaster": a naturally occurring event of biotic or abiotic nature that leads to 
important  disturbances  of  agricultural  production  systems  and  forest  structures, 
eventually causing important economic damage to the farming and forest sectors; 

"catastrophic  event":  an  unforeseen  event  of  biotic  or  abiotic  nature  caused  by 
human  action  that  leads  to  important  disturbances  of  agricultural  production 
systems and forest structures, eventually causing important economic damage to the 
farming and forest sectors; 

"short  supply  chain":  a  supply  chain  involving  a  limited  number  of  economic 
operators,  committed  to  co-operation,  local  economic  development,  and  close 
geographical and social relations between producers and consumers; 

"young  farmer":  farmer  who  is  less  than  40  years  of  age  at  the  moment  of 
submitting the application, possesses adequate occupational skills and competence 
and is setting up for the first time in an agricultural holding as head of the holding; 

"completed  operation"  means  an  operation  that  has  been  physically  completed  or 
fully implemented and in respect of which all related payments have been made by 
beneficiaries  and  the  corresponding  public  contribution  has  been  paid  to  the 
beneficiaries; 

"thematic  objectives":  the  thematic  objectives  defined  in  Article  9  of  Regulation 
(EU) No [CSF/2012] of the European Parliament and the Council30. 

"Common  Strategic  Framework  (hereinafter  "CSF")":  the  Common  Strategic 
Framework referred to in Article 10 of Regulation (EU) No [CSF/2010]. 

As  regards  the  definition  of  young  farmer  laid  down  in  paragraph  1(u),  the 
Commission shall be empowered to adopt delegated acts in accordance with Article 
90  concerning  the  conditions  under  which  a  legal  person  may  be  considered  a 

29 
30 

OJ L 224, 18.8.1990, p. 19. 
OJ L […], […], p. […]. 

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'young  farmer',  including  the  setting  of  a  grace  period  for  the  acquisition  of 
occupational skills. 

Chapter II 
Mission, objectives, priorities and consistency 

Article 3 

Mission 

The  EAFRD  shall  contribute  to  the  Europe  2020  Strategy  by  promoting  sustainable  rural 
development throughout the Union in a complementary manner to the other instruments of 
the common agricultural policy (hereinafter “CAP”), to cohesion policy and to the common 
fisheries  policy.  It  shall  contribute  to  a  more  territorially  and  environmentally  balanced, 
climate-friendly and resilient and innovative Union agricultural sector. 

Article 4 

Objectives 

Within the overall framework of the CAP, support for rural development shall contribute to 
achieving the following objectives: 

(1) 

(2) 

(3) 

the competitiveness of agriculture; 

the sustainable management of natural resources, and climate action; 

a balanced territorial development of rural areas. 

Article 5 

Union priorities for rural development 

The  achievement  of  the  objectives  of  rural  development,  which  contribute  to  the  Europe 
2020  strategy  for  smart,  sustainable  and  inclusive  growth,  shall  be  pursued  through  the 
following six Union priorities for rural development, which translate the relevant Thematic 
Objectives of the CSF: 

(1) 

fostering knowledge transfer and innovation in agriculture, forestry, and rural areas 
with a focus on the following areas: 

(a) 

fostering innovation and the knowledge base in rural areas; 

(b) 

strengthening  the  links  between  agriculture  and  forestry  and  research  and 
innovation;  

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(c) 

fostering  lifelong  learning  and  vocational  training  in  the  agricultural  and 
forestry sectors.  

(2) 

enhancing competitiveness of all types of agriculture and enhancing farm viability, 
with a focus on the following areas: 

(a) 

facilitating  restructuring  of  farms  facing  major  structural  problems,  notably 
farms  with  a  low  degree  of  market  participation,  market-oriented  farms  in 
particular sectors and farms in need of agricultural diversification; 

(b) 

facilitating generational renewal in the agricultural sector. 

(3) 

promoting food chain organisation and risk management in agriculture, with a focus 
on the following areas: 

(a)  better  integrating  primary  producers  into  the  food  chain  through  quality 
schemes,  promotion  in  local  markets  and  short  supply  circuits,  producer 
groups and inter-branch organisations; 

(b) 

supporting farm risk management: 

(4) 

restoring,  preserving  and  enhancing  ecosystems  dependent  on  agriculture  and 
forestry, with a focus on the following areas: 

(a) 

restoring and preserving biodiversity, including in Natura 2000 areas and high 
nature value farming, and the state of European landscapes;  

(b) 

improving water management;  

(c) 

improving soil management. 

(5) 

promoting  resource  efficiency  and  supporting  the  shift  towards  a  low  carbon  and 
climate resilient economy in agriculture, food and forestry sectors, with a focus on 
the following areas: 

(a) 

increasing efficiency in water use by agriculture; 

(b) 

increasing efficiency in energy use in agriculture and food processing; 

(c) 

facilitating  the  supply  and  use  of  renewable  sources  of  energy,  of  by-
products, wastes, residues and other non food raw material for purposes of the 
bio-economy; 

(d) 

reducing nitrous oxide and methane emissions from agriculture; 

(e) 

fostering carbon sequestration in agriculture and forestry; 

(6) 

promoting  social  inclusion  poverty  reduction  and  economic  development  in  rural 
areas, with a focus on the following areas: 

(a) 

facilitating diversification, creation of new small enterprises and job creation; 

(b) 

fostering local development in rural areas; 

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(c) 

enhancing accessibility to, use and quality of information and communication 
technologies (ICT) in rural areas. 

All  of  the  priorities  shall  contribute  to  the  cross-cutting  objectives  of  innovation, 
environment and climate change mitigation and adaptation. 

Article 6 

Consistency 

1. 

2. 

There  shall  be  consistency  between  support  from  the  EAFRD  and  the  measures 
financed by the European Agricultural Guarantee Fund.  

No  support  under  this  Regulation  shall  be  granted  to  operations  supported  under 
common  market  organizations.  The  Commission  shall  be  empowered  to  adopt 
delegated acts, in accordance with Article 90 to define exceptions from this rule. 

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TITLE II 
Programming 

Chapter I 
 Programming content 

Article 7 

Rural development programmes 

1. 

2. 

3. 

1. 

The  EAFRD  shall  act  in  the  Member  States  through  rural  development 
programmes.  These  programmes  shall  implement  a  strategy  to  meet  the  Union 
priorities for rural development through a set of measures defined in Title III, for 
the achievement of which aid from the EAFRD will be sought. 

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

Member States with regional programmes may also submit for approval a national 
framework containing common elements for these programmes without a separate 
budgetary allocation.  

Article 8 

Thematic sub-programmes 

Member  States  may  include  within  their  rural  development  programmes  thematic 
sub-programmes, contributing to the Union priorities for rural development, aimed 
to address specific needs identified, in particular in relation to: 

(a)  young farmers;  

(b) 

small farms as referred to in the third subparagraph of Article 20(2);  

(c)  mountain areas as referred to in Article 33(2);  

(d) 

short supply chains. 

An  indicative  list  of  measures  and  types  of  operations  of  particular  relevance  to 
each thematic sub-programme is set out in Annex III. 

2. 

Thematic  sub-programmes  may  also  address  specific  needs  relating  to  the 
restructuring of agricultural sectors with a significant impact on the development of 
a specific rural area. 

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3. 

The support rates laid down in Annex I may be increased by 10 percentage points 
for operations supported in the framework of thematic sub-programmes concerning 
small  farms  and  short  supply  chains.  In  the  case  of  young  farmers  and  mountain 
areas,  the  maximum  support  rates  may  be  increased  in  accordance  with  Annex  I. 
However, the maximum combined support rate shall not exceed 90%. 

Article 9 

Content of rural development programmes 

1. 

In  addition  to  the  elements  referred  to  in  Article  24  of  Regulation  (EU)  No 
[CSF/2012], each rural development programme shall include: 

(a) 

(b) 

(c) 

the  ex  ante  evaluation  referred  to  in  Article  48  of  Regulation  (EU)  No 
[CSF/2012]; 

an  analysis  of  the  situation  in  terms  of  strengths,  weaknesses,  opportunities 
and threats (hereinafter "SWOT") and identification of the needs that have to 
be addressed in the geographical area covered by the programme and, where 
relevant, by the thematic sub-programmes referred to in Article 8. 

The  analysis  shall  be  structured  around  the  Union  priorities  for  rural 
development.  Specific  needs  concerning  the  environment,  climate  change 
mitigation  and  adaptation  and  innovation  shall  be  assessed  across  Union 
priorities for rural development, in view of identifying relevant responses in 
these three areas at the level of each priority; 

a description of the strategy which includes the target setting for each of the 
focus  areas  of  the  Union  priorities  for  rural  development  included  in  the 
programme, on the basis of common indicators referred to in Article 76, to be 
defined as part of the monitoring and evaluation system referred to in Article 
74,  and  a  selection  of  measures,  based  on  a  sound  intervention  logic  of  the 
programme,  including  an  assessment  of  the  expected  contribution  of  the 
measures chosen to achieve the targets.  

The rural development programme shall demonstrate that: 

(i) 

relevant combinations of measures are included in relation to the Union 
priorities  for  rural  development  included  in  the  programme,  logically 
following  from  the  ex  ante  evaluation  referred  to  in  point  (a)  and  the 
analysis referred to in point (b); 

(ii) 

the allocation of financial resources to the measures of the programme 
is balanced and adequate to achieve the targets set; 

(iii)  specific  needs  linked  with  specific  conditions  at  regional  or  sub-
regional level are taken into account and concretely addressed through 
adequately  designed  combinations  of  measures  or  thematic  sub-
programmes; 

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(iv)  a pertinent approach towards innovation, the environment, including the 
specific needs of Natura 2000 areas, and climate change mitigation and 
adaptation is integrated into the programme; 

(v) 

appropriate  action  is  envisaged  to  simplify  the  implementation  of  the 
programme; 

(vi)  measures  have  been  taken  to  ensure  the  availability  of  sufficient 
advisory capacity on the regulatory requirements and all aspects linked 
to  sustainable  management  in  agriculture  and  forestry,  as  well  as 
climate action; 

(vii)  initiatives  are  planned  for  raising  awareness  and  animating  innovative 
actions  and  establishing  operational  groups  of  the  EIP  for  agricultural 
productivity and sustainability; 

(viii)  an appropriate approach has been defined laying down principles with 
regard  to  the  setting  of  selection  criteria  for  projects  and  local 
development  strategies,  which  takes  into  account  relevant  targets.  In 
this context Member States may provide for priority to be given or for a 
higher support rate for operations undertaken collectively by groups of 
farmers; 

(d) 

the assessment of the ex ante conditionalities and, where required, the actions 
referred  to  in  Article  17(4)  of  Regulation  (EU)  No  [CSF/2012]  and  the 
milestones  established  for  the  purpose  of  Article  19  of  Regulation  (EU)  No 
[CSF/2012]; 

(e) 

a description of each of the measures selected; 

(f) 

(g) 

(h) 

in  relation  to  local  development,  a  specific  description  of  the  coordination 
mechanisms  between  the  local  development  strategies,  the  measure  co-
operation  referred  to  in  Article  36,  the  measure  basic  services  and  village 
renewal  in  rural  areas  referred  to  in  Article  21  and  the  support  for  non-
agricultural  activities  in  rural  areas  under  the  measure  farm  and  business 
development in rural areas referred to in Article 20; 

a  description  of  the  approach  towards  innovation  in  view  of  enhancing 
productivity  and  sustainable  resource  management  and  the  contribution  to 
achieving  the  objectives  of  the  EIP  for  agricultural  productivity  and 
sustainability referred to in Article 61; 

an analysis of needs relating to monitoring and evaluation requirements and 
the  evaluation  plan  referred  to  in  Article  49  of  Regulation  (EU)  No 
[CSF/2012].  The  Member  States  shall  provide  sufficient  resources  and 
capacity building activities to address the identified needs; 

(i) 

a financing plan comprising: 

(i) 

a  table  setting out,  in accordance with Article 64(4), the total EAFRD 
contribution  planned  for  each  year.  When  applicable  this  table  shall 
the 
indicate  separately  within 

total  EAFRD  contribution 

the 

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appropriations  provided  for  the  less  developed  regions  and  the  funds 
transferred  to  the  EAFRD  in  application  of  Article  7(2)  of  Regulation 
(EU)  No  DP/2012.  The  planned  annual  EAFRD  contribution  shall  be 
compatible with the Multi-annual Financial Framework; 

(ii) 

a  table  setting  out,  for  each  measure,  the  type  of  operation  with  a 
specific  EAFRD  contribution  rate  and  technical  assistance,  the  total 
Union  contribution  planned  and  the  applicable  EAFRD  contribution 
rate.  Where  applicable,  this  table  shall  indicate  separately  the  EAFRD 
contribution rate for less developed regions and for other regions; 

(j) 

an  indicator  plan  comprising  for  each  of  the  Union  priorities  for  rural 
development  included  in  the  programme  the  indicators  and  the  selected 
measures  with  planned  outputs  and  planned  expenditure,  broken  down 
between public and private; 

(k)  where  applicable,  a  table  on  additional  national  financing  per  measure  in 

accordance with Article 89; 

(l) 

the elements needed for the appraisal under Article 89 and, where applicable, 
the  list  of  aid  schemes  falling  under  Article  88(1)  to  be  used  for  the 
implementation of the programmes; 

(m) 

information  on  the  complementarity  with  measures  financed  by  the  other 
common  agricultural  policy  instruments,  through  cohesion  policy  or  by  the 
EMFF; 

(n)  programme implementing arrangements including: 

(i) 

the  designation  by  the  Member  State  of  all  authorities  referred  to  in 
Article  72(2)  and,  for  information,  a  summary  description  of  the 
management and control structure; 

(ii) 

a  description  of  the  monitoring  and  evaluation  procedures,  as  well  as 
the composition of the Monitoring Committee; 

(iii) 

the  provisions  to  ensure  that  the  programme  is  publicised,  including 
through the national rural network referred to in Article 55; 

(o) 

the designation of the partners referred to in Article 5 of Regulation (EU) No 
[CSF/2012] and the results of the consultation of the partners; 

(p)  where applicable, the main elements of the national rural network action plan 
and structure referred to in Article 55(3), and provisions for its management, 
which would constitute the basis for its annual actions plans. 

2. 

Where thematic sub-programmes are included in a rural development programme, 
each sub-programme shall include: 

(a) 

a specific analysis of the situation in terms of SWOT and identification of the 
needs that have to be addressed by the sub-programme; 

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(b) 

specific targets at sub-programme level and a selection of measures, based on 
a  thorough  definition  of  the  intervention  logic  of  the  sub-programme, 
including an assessment of the expected contribution of the measures chosen 
to achieve the targets; 

(c) 

a  separate  specific  indicator  plan,  with  planned  outputs  and  planned 
expenditure, broken down between public and private. 

3. 

The  Commission  shall,  by  means  of  implementing  acts  lay  down  rules  for  the 
presentation of the elements described in paragraphs 1 and 2 in rural development 
programmes.  Those  implementing  acts  shall  be  adopted  in  accordance  with  the 
examination procedure referred to in Article 91. 

Chapter II 
Preparation, approval and amendment of rural development 
programmes 

Article 10 

Ex ante conditionalities 

In  addition  to  the  ex  ante  conditionalities  referred  to  in  Annex  IV,  the  general  ex  ante 
conditionalities established in Annex IV of Regulation (EU) No [CSF/2012] shall apply for 
the EAFRD. 

Article 11 

Approval of rural development programmes 

1. 

2. 

Member  States  shall  submit  to  the  Commission  a  proposal  for  each  rural 
development programme, containing the information mentioned in Article 9. 

Each  rural  development  programme  shall  be  approved  by  the  Commission  by 
means  of  an  implementing  act  adopted  in  accordance  with  the  examination 
procedure referred to in Article 91.  

Article 12 

Amendment of rural development programmes 

1. 

Requests  for  programme  amendments  by  Member  States  shall  be  approved  in 
accordance with the following procedures: 

(a)  The Commission shall, by means of implementing acts, decide on requests to 

amend programmes that concern: 

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(i) 

a change in the programme strategy through a major reset of quantified 
targets; 

(ii) 

a change in the EAFRD contribution rate of one or more measures; 

(iii)  a  change  of  the  entire  Union  contribution  or  its  annual  distribution  at 

programme level; 

(iv)  a  transfer  of  funds  between  measures  implemented  under  different 

EAFRD contribution rates. 

Those implementing acts shall be adopted in accordance with the examination 
procedure referred to in Article 91. 

(b)  The Commission shall, by means of implementing acts, decide on requests to 
amend the programme in all other cases. These shall include in particular: 

(i) 

introduction or withdrawal of measures or types of operations; 

(ii) 

changes in the description of measures, including changes of eligibility 
conditions. 

2. 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article  90  concerning  the  criteria  defining  a  major  reset  of  quantified  targets 
referred to in paragraph 1(a)(i). 

Article 13  

Rules on procedures and timetables 

The  Commission  shall,  by  means  of  implementing  acts,  adopt  rules  on  procedures  and 
timetables for: 

(a) 

(b) 

the approval of rural development programmes; 

the  submission  and  approval  of  proposals  for  amendments  to  rural  development 
programmes,  including  their  entry  into  force  and  frequency  of  submission  during 
the programming period. 

Those  implementing  acts  shall  be  adopted  in  accordance  with  the  examination  procedure 
referred to in Article 91. 

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TITLE III 
Rural development support 

Chapter I 
Measures 

Article 14 

Measures 

Each  rural  development  measure  shall  be  programmed  to  contribute  specifically  to  the 
achievement  of  one  or  more  Union  priorities  for  rural  development.  An  indicative  list  of 
measures of particular relevance to the Union priorities is set out in Annex V. 

SECTION 1 

INDIVIDUAL MEASURES 

Article 15 

1. 

2. 

3. 

Knowledge transfer and information actions 

Support  under  this  measure  shall  cover  vocational  training  and  skills  acquisition 
actions,  demonstration  activities  and  information  actions.  Vocational  training  and 
skills acquisition actions may include training courses, workshops and coaching. 

Support may also cover short-term farm management exchange and farm visit. 

Support  under  this  measure  shall  be  for  the  benefit  of  persons  engaged  in  the 
agricultural,  food  and  forestry  sector,  land  managers  and  other  economic  actors 
which are SMEs operating in rural areas.  

The  training or other knowledge transfer and information action  provider  shall be 
the beneficiary of the support. 

Support  under  this  measure  shall  not  include  courses  of  instruction  or  training, 
which form part of normal education programmes or systems at secondary or higher 
levels. 

Bodies  providing  knowledge  transfer  and  information  services  shall  have  the 
appropriate  capacities  in  the  form  of  staff  qualifications  and  regular  training  to 
carry out this task. 

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4. 

5. 

Eligible costs under this measure shall be the costs of organising and delivering the 
knowledge  transfer  or  information  action.  In  the  case  of  demonstration  projects, 
support may also cover relevant investment costs. Costs for travel, accommodation 
and per diem expenses of participants as well as the cost of replacement of farmers 
shall also be eligible.  

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article  90  concerning  the  further  specification  of  eligible  costs,  the  minimum 
qualifications of bodies providing knowledge transfer services and the duration and 
content of farm exchange schemes and farm visits. 

Article 16 

Advisory services, farm management and farm relief services 

1. 

Support under this measure shall be granted in order to: 

(a)  help farmers, forest holders and SMEs in rural areas benefit from the use of 
advisory  services  for  the  improvement  of  the  economic  and  environmental 
performance as well as the climate friendliness and resilience of their holding, 
enterprise and/or investment; 

(b)  promote  the  setting  up  of  farm  management,  farm  relief  and  farm  advisory 
services,  as  well  as  forestry  advisory  services,  including  the  Farm  Advisory 
System referred to in Articles 12, 13 and 14 of Regulation (EU) No HR/2012; 

(c)  promote the training of advisors. 

2. 

3. 

The beneficiary of support provided in paragraph 1(a) and (c) shall be the provider 
of advice or training. Support under paragraph 1(b) shall be granted to the authority 
or  body  selected  to  set  up  the  farm  management,  farm  relief,  farm  advisory  or 
forestry advisory service. 

The  authorities  or  bodies  selected  to  provide  advice  shall  have  the  appropriate 
resources  in  the  form  of  regularly  trained  and  qualified  staff  and  advisory 
experience and reliability with respect to the fields they advise in. The beneficiaries 
shall  be  chosen  through  calls  for  proposals.  The  selection  procedure  shall  be 
objective and be open to public as well as to private bodies. 

When  providing  advice,  advisory  services  shall  respect  the  non-disclosure 
obligations referred to in Article 13(2) of Regulation (EU) No HR/2012 

4. 

Advice  to  farmers  shall  be  linked  to  at  least  one  Union  priority  for  rural 
development and shall cover as a minimum one of the following elements: 

(a)  one  or  more  of  the  statutory  management  requirements  and/or  standards  for 
good agricultural and environmental conditions provided for in Chapter I of 
Title VI of Regulation (EU) No HR/2012; 

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(b)  where applicable, the agricultural practices beneficial for the climate and the 
environment  as  laid  down  in  Chapter  2  of  Title  III  of  Regulation  (EU)  No 
DP/2012 and the maintenance of the agricultural area as referred to in Article 
4(1)(c) of Regulation (EU) No DP/2012; 

(c) 

(d) 

the  requirements  or  actions  related  to  climate  change  mitigation  and 
adaptation,  biodiversity,  the  protection  of  water  and  soil,  animal  and  plant 
disease  notification  and  innovation  as  laid  down  in  Annex  I  to  Regulation 
(EU) No HR/2012;  

the sustainable development of the economical activity of the small farms as 
defined  by  the  Member  States  and  at  least  of  the  farms  participating  in  the 
Small farmers scheme referred to in Title V of Regulation (EU) No DP/2012; 
or 

(e)  where relevant, occupational safety standards based on Union legislation. 

Advice  may  also  cover  other  issues  linked  to  the  economic,  agricultural  and 
environmental performance of the agricultural holding. 

Advice  to  forest  holders  shall  cover  as  a  minimum  the  relevant  obligations  under 
Directives  92/43/EEC,  2009/147/ECand  2000/60/EC.  It  may  also  cover  issues 
linked to the economic and environmental performance of the forest holding. 

Advice  to  SMEs  may  cover  issues  linked  to  the  economic  and  environmental 
performance of the enterprise. 

Where  justified  and  appropriate,  advice  may  be  partly  provided  in  group,  while 
taking into account the situations of the individual user of advisory services. 

Support  under  paragraphs  1(a)  and  (c)  shall  be  limited  to  the  maximum  amounts 
laid  down  in  Annex  I.  Support  under  paragraph  1(b)  shall  be  degressive  over  a 
maximum period of five years from setting up.  

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article 90 concerning the further specification of the minimum qualifications of the 
authorities or bodies providing advice. 

Article 17 

5. 

6. 

7. 

8. 

9. 

Quality schemes for agricultural products and foodstuffs 

1. 

Support under this measure shall cover new participation by farmers in: 

(a)  quality schemes for agricultural products, cotton or foodstuffs established by 

Union legislation;  

(b)  quality schemes for agricultural products, cotton or foodstuffs recognised by 

the Member States as complying with the following criteria: 

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(i) 

the specificity of the final product under such schemes is derived from 
clear obligations to guarantee: 

- specific product characteristics, or 

- specific farming or production methods, or 

-  a  quality  of  the  final  product  that  goes  significantly  beyond  the 
commercial  commodity  standards  as  regards  public,  animal  or  plant 
health, animal welfare or environmental protection; 

(ii) 

the scheme is open to all producers; 

(iii) 

the  scheme  involves  binding  product  specifications  and  compliance 
with  those  specifications  is  verified  by  public  authorities  or  by  an 
independent inspection body; 

(iv) 

the scheme is transparent and assures complete traceability of products;  

or 

(c)  voluntary  agricultural  product  certification  schemes  recognised  by  the 
Member  States  as  meeting  the  Union  best  practice  guidelines31  for  the 
operation of voluntary certification schemes relating to agricultural products 
and foodstuffs.  

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

For  the  purposes  of  this  paragraph,  'fixed  costs'  means  the  costs  incurred  for 
entering a supported 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. 

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

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article  90  concerning  the  specific  Union  quality  schemes  to  be  covered  by 
paragraph 1(a). 

Article 18 

Investments in physical assets 

Support  under  this  measure  shall  cover  tangible  and/or  intangible  investments 
which: 

Commission  Communication  –  EU  best  practice  guidelines  for  voluntary  certification  schemes  for 
agricultural products and foodstuffs, OJ C 341, 16.12.2010, p. 5. 

2. 

3. 

4. 

1. 

31 

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(a) 

improve the overall performance of the agricultural holding; 

(b) 

(c) 

(d) 

concern  the  processing,  marketing  and/or  development  of  agricultural 
products  covered  by  Annex  I  to  the  Treaty  or  cotton.  The  output  of  the 
production process may be a product not covered by that Annex; 

concern  infrastructure  related  to  the  development  and  adaptation  of 
agriculture, including access to farm and forest land, land consolidation and 
improvement, energy supply and, water management; or 

are non productive investments linked to the achievement of agri- and forest- 
environment  commitments,  biodiversity  conservation  status  of  species  and 
habitat as well as enhancing the public amenity value of a Natura 2000 area 
or other high nature value area to be defined in the programme. 

Support under paragraph 1(a) shall be granted to agricultural holdings. In the case 
of  investments  to  support  farm  restructuring,  only  farms  not  exceeding  a  certain 
size,  to  be  defined  by  the  Member  States  in  the  programme  based  on  the  SWOT 
analysis  carried  out  in  relation  to  the  Union  priority  for  rural  development 
“enhancing  competitiveness  of  all  types  of  agriculture  and  enhancing  farm 
viability”, shall be eligible. 

Support  under  this  measure  shall  be  limited  to  the  maximum  support  rates  laid 
down  in  Annex  I.  These  maximum  rates  may  be  increased  for  young  farmers, 
collective  investments  and  integrated  projects  involving  support  under  more  than 
one measure, investments in areas facing significant natural constraints as referred 
to  in  Article  33(3)  and  operations  supported  in  the  framework  of  the  EIP  for 
agricultural productivity and sustainability in accordance with the support rates laid 
down in Annex I. However, the maximum combined support rate may not exceed 
90%. 

2. 

3. 

4. 

Paragraph 3 shall not apply to non-productive investments referred to in paragraph 
1(d). 

Article 19 

Restoring agricultural production potential damaged by natural disasters and catastrophic 
events and introduction of appropriate prevention actions 

1. 

Support under this measure shall cover: 

(a) 

(b) 

investments  in  preventive  actions  aimed  at  reducing  the  consequences  of 
probable natural disasters and catastrophic events; 

investments  for  the  restoration  of  agricultural  land  and  production  potential 
damaged by natural disasters and catastrophic events. 

2. 

Support  shall  be  granted  to  farmers  or  groups  of  farmers.  Support  may  also  be 
granted to public entities where a link between the investment undertaken by such 
entities and agricultural production potential is established. 

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3. 

4. 

5. 

6. 

Support  under  paragraph  1(b)  shall  be  subject  to  the  formal  recognition  by  the 
competent public authorities of Member States that a natural disaster has occurred 
and  that  this  disaster  or  measures  adopted  in  accordance  with  Council  Directive 
2000/29/EC32  to  eradicate  or  contain  a  plant  disease  or  pest  has  caused  the 
destruction of at least 30% of the relevant agricultural potential. 

No  support  under  this  measure  shall  be  granted  for  loss  of  income  resulting  from 
the natural disaster or catastrophic event. 

Member States shall ensure that overcompensation as a result of the combination of 
this measure and other national or Union support instruments or private insurance 
schemes is avoided. 

Support  under  paragraph  1(a)  shall  be  limited  to  the  maximum  support  rate  laid 
down in Annex I. This maximum rate shall not apply to collective projects by more 
than one beneficiary. 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article 90 concerning the definition of eligible costs under this measure. 

Article 20 

Farm and business development  

1. 

Support under this measure shall cover: 

(a)  business start-up aid for: 

(i) 

young farmers; 

(ii)  non-agricultural activities in rural areas; 

(iii) 

the development of small farms; 

(b) 

investments in non-agricultural activities;  

(c) 

annual  payments  for  farmers  participating  in  the  small  farmers  scheme 
established by Title V of Regulation (EU) No DP/2012 (hereafter "the small 
farmers scheme") who permanently transfer their holding to another farmer. 

2. 

Support under paragraph 1(a)(i) shall be granted to young farmers.  

Support under paragraph 1(a)(ii) shall be granted to farmers or members of the farm 
household  diversifying  into  non-agricultural  activities  and  to  non-agricultural 
micro- and small- enterprises in rural areas. 

Support  under  paragraph  1(a)(iii)  shall  be  granted  to  small  farms  as  defined  by 
Member States. 

32 

OJ L 169, 10.7.2000, p. 1. 

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Support  under  paragraph  1(b)  shall  be  granted  to  non-  agricultural  micro-  and 
small- enterprises in rural areas and to farmers or members of the farm household. 

Support under paragraph 1(c) shall be granted to farmers participating in the small 
farmers scheme, at the time of submitting their application for support, for at least 
one  year  and  who  commit  to  permanently  transfer  their  entire  holding  and  the 
corresponding payment entitlements to another farmer. Support shall be paid from 
the date of the transfer until 31 December 2020. 

Any 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, may be considered 
as  a  member  of  a  farm  household,  with  the  exception  of  farm  workers.  Where  a 
legal  person  or  a  group  of  legal  persons  is  considered  as  a  member  of  the  farm 
household,  that  member  must  exercise  an  agricultural  activity  on  the  farm  at  the 
time of the support application. 

Support under paragraph 1(a) shall be conditional on the submission of a business 
plan.  Implementation  of  the  business  plan has to start within six months from the 
date of the decision granting the aid. 

Member  States  shall  define  upper  and  lower  thresholds  for  allowing  agricultural 
holdings access to support under paragraphs 1(a)(i) and 1(a)(iii) respectively. The 
lower  threshold  for  support  under  paragraph  1(a)(i)  shall  be  significantly  higher 
than  the  upper  threshold  for  support  under  paragraph  1(a)(iii).  Support  shall, 
however, be limited to holdings coming under the definition of micro- and small- 
enterprises. 

Support under paragraph 1(a) shall be in the form of a flat rate payment, which may 
be  paid  in  at  least  two  instalments  over  a  period  of  maximum  five  years. 
Instalments may be degressive. The payment of the last instalment, under paragraph 
1(a)(i) and (ii) shall be conditional upon the correct implementation of the business 
plan.  

The  maximum  amount  of  support  for  paragraph  1(a)  is  laid  down  in  Annex  I. 
Member States shall define the amount of support under paragraph 1(a)(i) and (ii) 
also taking into account the socio-economic situation of the programme area. 

Support under paragraph 1(c) shall be equal to 120% of the annual payment that the 
beneficiary received under the small farmers scheme. 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article 90 concerning the minimum content of business plans and the criteria to be 
used by Member States for setting the thresholds referred to in paragraph 4. 

3. 

4. 

5. 

6. 

7. 

8. 

Article 21 

Basic services and village renewal in rural areas 

1. 

Support under this measure shall cover in particular: 

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46 

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(a) 

the drawing up and updating of plans for the development of municipalities in 
rural areas and their basic services and of protection and management plans 
relating to NATURA 2000 sites and other areas of high nature value; 

(b) 

investments  in  the  creation,  improvement  or  expansion  of  all  types  of  small 
scale infrastructure, including investments in renewable energy; 

(c)  broadband infrastructure, including its creation, improvement and expansion, 
passive  broadband  infrastructure  and  provision  of  access  to  broadband  and 
public e-government solutions; 

(d) 

(e) 

(f) 

(g) 

investments  in  the  setting-up,  improvement  or  expansion  of  local  basic 
services for the rural population, including leisure and culture, and the related 
infrastructure; 

investments by public bodies in recreational infrastructure, tourist information 
and sign-posting of touristic sites; 

studies  and  investments  associated  with  the  maintenance,  restoration  and 
upgrading of the cultural and natural heritage of villages and rural landscapes, 
including related socio-economic aspects; 

investments targeting the relocation of activities and conversion of buildings 
or other facilities located close to rural settlements, with a view to improving 
the  quality  of  life  or  increasing  the  environmental  performance  of  the 
settlement. 

Support under this measure shall only concern small-scale infrastructure, as defined 
by each Member State in the programme. However, rural development programmes 
may  provide  for  specific  derogations  from  this  rule  for  investments  in  broadband 
and  renewable  energy.  In  this  case,  clear  criteria  ensuring  complementarity  with 
support under other Union instruments shall be provided. 

Investments  under  paragraph  1  shall  be  eligible  for  support  where  the  relevant 
operations  are  implemented  in  accordance  with  plans  for  the  development  of 
municipalities  in  rural  areas  and  their  basic  services,  where  such  plans  exist  and 
shall be consistent with any local development strategy where one exists. 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article 90 concerning the definition of the types of renewable energy infrastructure 
that shall be eligible for support under this measure. 

Article 22 

2. 

3. 

4. 

Investments in forest area development and improvement of the viability of forests 

1. 

Support under this measure shall concern: 

(a) 

afforestation and creation of woodland;  

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(b) 

establishment of agro-forestry systems; 

(c)  prevention and restoration of damage to forests from forest fires and natural 
disasters,  including  pest  and  disease  outbreaks,  catastrophic  events  and 
climate related threats;  

(d) 

(e) 

investments improving the resilience and environmental value as well as the 
mitigation potential of forest ecosystems; 

investments in new forestry technologies and in processing and marketing of 
forest products. 

Limitations on ownership of forests provided for in Articles 36 to 40 shall not apply 
for the tropical or subtropical forests and for the wooded areas of the territories of 
the  Azores,  Madeira,  the  Canary  islands,  the  smaller  Aegean  islands  within  the 
meaning  of  Council  Regulation  (EEC)  No  2019/9333  and  the  French  overseas 
departments. 

For  holdings  above  a  certain  size,  to  be  determined  by  the  Member  States  in  the 
programme, support shall be conditional on the submission of a forest management 
plan or equivalent instrument in line with sustainable forest management as defined 
by  the  Ministerial  Conference  on  the  Protection  of  Forests  in  Europe  of  199334 
(hereinafter "sustainable forest management").  

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article  90  concerning  the  conditions  for  establishing  the  occurrence  of  a  natural 
disaster  or  of  pests  and  diseases  outbreaks,  and  the  definition  of  eligible  types  of 
preventive actions. 

Article 23 

Afforestation and creation of woodland 

Support under Article 22(1)(a) shall be granted to private land-owners and tenants, 
municipalities and their associations and shall cover the costs of establishment and 
an annual premium per hectare to cover the costs of maintenance, including early 
and late cleanings, for a maximum period of ten years. 

Both  agricultural  and  non-agricultural  land  shall  be  eligible.  Species  planted  shall 
be adapted to the environmental and climatic conditions of the area and answer to 
minimum environmental requirements. No support shall be granted for the planting 
of  short  rotation  coppice,  Christmas  trees  or  fast  growing  trees  for  energy 
production.  In  areas  where  afforestation  is  made  difficult  by  severe  pedo-climatic 
conditions  support  may  be  provided  for  planting  other  perennial  woody  species 
such as shrubs or bushes suitable to the local conditions. 

OJ L 184, 27.7.1993, p. 1. 
Second  Ministerial  Conference  on  the  Protection  of  Forests  in  Europe,  16-17  June  1993, 
Helsinki/Finland, "Resolution H1 - General Guidelines for the Sustainable Management of Forests in 
Europe". 

2. 

3. 

1. 

2. 

33 
34 

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3. 

1. 

2. 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with              
Article  90  concerning  the  definition  of  the  minimum  environmental  requirements 
referred to in paragraph 2. 

Article 24 

Establishment of agro-forestry systems 

Support  under  Article  22(1)(b)  shall  be  granted  to  private  landowners,  tenants, 
municipalities and their associations and shall cover the costs of establishment and 
an annual premium per hectare to cover the costs of maintenance for a maximum 
period of three years. 

"Agro-forestry  systems"  shall  mean  land  use  systems  in  which  trees  are  grown  in 
combination with extensive agriculture on the same land. The maximum number of 
trees  to  be  planted  per  hectare  shall  be  determined  by  the  Member  States  taking 
account  of  local  pedo-climatic  conditions,  forestry  species  and  the  need  to  ensure 
agricultural use of the land. 

3. 

Support shall be limited to the maximum support rate laid down in Annex I. 

Article 25 

Prevention and restoration of damage to forests from forest fires and natural disasters and 
catastrophic events 

1. 

Support  under Article 22(1)(c) shall be granted to private, semi public and public 
forest owners, municipalities, state forests and their associations and shall cover the 
costs for: 

(a) 

the establishment of protective infrastructure. In the case of firebreaks support 
may  also  cover  aid  contributing  to  maintenance  costs.  No  support  shall  be 
granted for agricultural related activities in areas covered by agri-environment 
commitments; 

(b) 

local, small scale prevention activities against fire or other natural hazards; 

(c) 

(d) 

establishing and improving forest fire, pest and diseases monitoring facilities 
and communication equipment; 

restoring  forest  potential  damaged  from  fires  and  other  natural  disasters 
including  pests,  diseases  as  well  as  catastrophic  events  and  climate  change 
related events.  

2. 

In  the  case  of  preventive  actions  concerning  pests  and  diseases,  the  risk  of  a 
relevant  disaster  occurrence  must  be  supported  by  scientific  evidence  and 
acknowledged by scientific public organisations. Where relevant, the list of species 

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of organisms harmful to plants which may cause a disaster must be provided in the 
programme.  

Eligible operations shall be consistent with the forest protection plan established by 
the  Member  States.  For  holdings  above  a  certain  size,  to  be  determined  by  the 
Member States in the programme, support shall be conditional on the submission of 
a forest management plan detailing the preventive objectives. 

Forest  areas  classified  as  medium  to  high  forest  fire  risk  according  to  the  forest 
protection  plan  established  by  the  Member  States  shall  be  eligible  for  support 
relating to forest fire prevention. 

3. 

Support  under  paragraph  1(d)  shall  be  subject  to  the  formal  recognition  by  the 
competent public authorities of Member States that a natural disaster has occurred 
and  that  this  disaster,  or  measures  adopted  in  accordance  with  Directive 
2000/29/EC  to  eradicate  or  contain  a  plant  disease  or  pest  has  caused  the 
destruction of at least 30% of the relevant forest potential. This percentage shall be 
determined on the basis of either the average existing forest potential in the three-
year  period  immediately  preceding  the  disaster  or  on  the  average  of  the  five-year 
period  immediately  preceding  the  disaster,  excluding  the  highest  and  the  lowest 
entry. 

4. 

No  support  under  this  measure  shall  be  granted  for  loss  of  income  resulting  from 
the natural disaster. 

Member States shall ensure that overcompensation as a result of the combination of 
this measure and other national or Union support instruments or private insurance 
schemes is avoided. 

Article 26 

Investments improving the resilience and environmental value of forest ecosystems 

1. 

2. 

Support  under  Article  22(1)(d)  shall  be  granted  to  natural  persons,  private  forest 
owners,  private  law  and  semi-public  bodies,  municipalities  and  their  associations. 
In  the  case  of  state  forests  support  may  also  be  granted  to  bodies  managing  such 
forests, which are independent from the state budget. 

Investments  shall  be  aimed  at  the  achievement  of  commitments  undertaken  for 
environmental  aims  or  providing  ecosystem  services  and/or  which  enhance  the 
public amenity value of forest and wooded land in the area concerned or improve 
the climate change mitigation potential of ecosystems, without excluding economic 
benefits in the long term. 

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Article 27 

Investments in new forestry technologies and in processing and marketing of forest products 

1. 

2. 

3. 

4. 

Support  under  Article  22(1)(e)  shall  be  granted  to  private  forest  owners, 
municipalities  and  their  associations  and  to  SMEs  for  investments  enhancing 
forestry  potential  or  relating  to  processing  and  marketing  adding  value  to  forest 
products. In the territories of the Azores, Madeira, the Canary islands, the smaller 
Aegean  islands  within  the  meaning  of  Regulation  (EEC)  No  2019/93  and  the 
French overseas departments support may also be granted to enterprises that are not 
SMEs.  

Investments related to the improvement of the economic value of forests shall be at 
the  level  of  the  forest  holding  and  may  include  investments  for  soil  and  resource 
friendly harvesting machinery and practices. 

Investments related to the use of wood as a raw material or energy source shall be 
limited to all working operations prior to industrial processing. 

Support shall be limited to the maximum support rates laid down in Annex I. 

Article 28 

Setting up of producer groups 

1. 

Support under this measure shall be granted in order to facilitate the setting up of 
producer groups in the agriculture and forestry sectors for the purpose of: 

(a) 

(b) 

(c) 

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

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

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

(d)  other  activities  that  may  be  carried  out  by  producer  groups,  such  as 
development  of  business  and  marketing  skills  and  organisation  and 
facilitation of innovation processes. 

2. 

Support shall be granted to producer groups which are officially recognised by the 
Member  States'  competent  authority  on  the  basis  of  a  business  plan.  It  shall  be 
limited to producer groups coming under the definition of SMEs. 

Member  States  shall  verify  that  the  objectives  of  the  business  plan  have  been 
reached within five years after recognition of the producer group. 

3. 

The  support  shall  be  paid  as  a  flat  rate  aid  in  annual  instalments  for  the  first  five 
years following the date on which the producer group was recognised on the basis 

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of  its  business  plan.  It  shall  be  calculated  on  the  basis  of  the  group's  annual 
marketed production. Member States shall pay the last instalment only after having 
verified the correct implementation of the business plan. 

In the first year Member States may pay support to the producer group calculated 
on the basis of the average annual value of the marketed production of its members 
over the three years before they entered the group. In the case of producer groups in 
the forestry sector, support shall be calculated on the basis of the average marketed 
production  of  the  members  of  the  group  over  the  last  five  years  before  the 
recognition, excluding the highest and the lowest value. 

4. 

Support shall be limited to the maximum rates and amounts laid down in Annex I. 

Article 29 

Agri-environment- climate 

1. 

2. 

3. 

4. 

5. 

6. 

Member  States  shall  make  support  under  this  measure  available  throughout  their 
territories,  in  accordance  with  their  national,  regional  or  local  specific  needs  and 
priorities.  Inclusion  of  this  measure  in  rural  development  programmes  shall  be 
compulsory. 

Agri-environment-climate payments shall be granted to farmers, groups of farmers 
or groups of farmers and other land-managers who undertake, on a voluntary basis, 
to  carry  out  operations  consisting  of  one  or  more  agri-environment-climate 
commitments  on  agricultural  land.  Where  duly  justified  to  achieve  environmental 
objectives,  agri-environment-climate  payments  may  be  granted  to  other  land-
managers or groups of other land-managers. 

Agri-environment-climate  payments  cover  only  those  commitments  going  beyond 
the  relevant  mandatory  standards  established  pursuant  to  Chapter  I  of  Title  VI  of 
Regulation  (EU)  No  HR/2012  and  other  relevant  obligations  established  under 
Chapter  2  of  Title  III  of  Regulation  (EU)  No  DP/2012,  relevant  minimum 
requirements  for  fertiliser  and  plant  protection  products  use  as  well  as  other 
relevant  mandatory  requirements  established  by  national  legislation.  All  such 
mandatory requirements shall be identified in the programme. 

Member  States  shall  endeavour  to  provide  persons  undertaking  to  carry  out 
operations  under  this  measure  with  the  knowledge  and  information  required  to 
implement them, including by commitment-related expert advice and/or by making 
support under this measure conditional to relevant training. 

Commitments under this measure shall be undertaken for a period of five to seven 
years. However, where necessary in order to achieve or maintain the environmental 
benefits  sought,  Member  States  may  determine  a  longer  period  in  their  rural 
development programmes for particular types of commitments, including by means 
of providing for their annual extension after the termination of the initial period. 

Payments  shall  be  granted  annually  and  shall  compensate  beneficiaries  for  all  or 
part  of  the  additional  costs  and  income  foregone  resulting  from  the  commitments 

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made.  Where  necessary  they  may  also  cover  transaction  costs  to  a  value  of  up  to 
20%  of  the  premium  paid  for  the  agri-environment-climate  commitments.  Where 
commitments  are  undertaken  by  groups  of  farmers,  the  maximum  level  shall  be 
30%. 

7. 

Where  required  for  ensuring  the  efficient  application  of  the  measure,  Member 
States  may  use  the  procedure  referred  to  in  Article  49(3)  for  the  selection  of 
beneficiaries. 

8. 

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

9. 

10. 

1. 

2. 

3. 

No  support  under  this  measure  may  be  granted  for  commitments  that  are  covered 
under the organic farming measure. 

Support may be provided for the conservation of genetic resources in agriculture for 
operations not covered by the provisions under paragraphs 1 to 8. 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article  90  concerning  the  annual  extension  of  the  commitments  after  the  initial 
period  of  the  operation,  conditions  applicable  to  commitments  to  extensify  or 
manage differently livestock farming, to limit fertilisers, plant protection products 
or other inputs, to rear local breeds in danger of being lost to farming or to preserve 
plant genetic resources as well as concerning definition of eligible operations under 
paragraph 9. 

Article 30 

Organic farming 

Support  under  this  measure  shall  be  granted,  per  hectare  of  UAA,  to  farmers  or 
groups  of  farmers  who  undertake,  on  a  voluntary  basis  to  convert  to  or  maintain 
organic farming practices and methods as defined in Council Regulation (EC) No 
834/200735. 

Support  shall  only  be  granted  for  commitments  going  beyond  the  relevant 
mandatory  standards  established  pursuant  to  Chapter  I  of  Title  VI  of  Regulation 
(EU)  No  HR/2012,  relevant  minimum  requirements  for  fertiliser  and  plant 
protection  products  use  as  well  as  other  relevant  mandatory  requirements 
established by national legislation. All such requirements shall be identified in the 
programme. 

Commitments under this measure shall be undertaken for a period of five to seven 
years.  Where  support  is  granted  for  the  maintenance  of  organic  farming,  Member 
States  may  provide  in  their  rural  development  programmes  for  annual  extension 
after the termination of the initial period. 

35 

OJ L 189, 20.7.2007, p. 1. 

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4. 

Payments  shall  be  granted  annually  and  shall  compensate  beneficiaries  for  all  or 
part  of  the  additional  costs  and  income  foregone  resulting  from  the  commitments 
made.  Where  necessary  they  may  also  cover  transaction  costs  to  a  value  of  up  to 
20%  of  the  premium  paid  for  the  commitments.  Where  commitments  are 
undertaken by groups of farmers, the maximum level shall be 30%. 

5. 

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

1. 

2. 

3. 

4. 

Article 31 

Natura 2000 and Water framework directive payments 

Support  under  this  measure  shall  be  granted  annually  and  per  hectare  of  UAA  or 
per  hectare  of  forest  in  order  to  compensate  beneficiaries  for  costs  incurred  and 
income foregone resulting from disadvantages in the areas concerned, related to the 
implementation of Directives , 92/43/EEC, 2009/147/EC and 2000/60/EC.  

Support shall be granted to farmers and to private forest owners and associations of 
forest  owners  respectively.  In  duly  justified  cases  it  may  also  be  granted  to  other 
land managers. 

Support to farmers, linked to Directives 92/43/EEC and 2009/147/EC shall only be 
granted in relation to disadvantages resulting from requirements that go beyond the 
good  agricultural  and  environmental  condition  provided  for  in  Article  94  and 
Annex II of Council Regulation (EU) No HR/2012. 

Support to farmers, linked to Directive 2000/60/EC shall only be granted in relation 
to specific requirements that:  

(a)  were  introduced  by  Directive  2000/60/EC,  are  in  accordance  with  the 
programmes of measures of the river basin management plans for the purpose 
of achieving the environmental objectives of that Directive and go beyond the 
measures required to implement other Union legislation for the protection of 
water; 

(b)  go beyond the statutory management requirements and the good agricultural 
and  environmental  condition  provided  for  in  Chapter  I  of  Title  VI  of 
Regulation (EU) No HR/2012 and the obligations established under Chapter 2 
of Title III of Regulation (EU) No DP/2012; 

(c)  go beyond the level of protection of the Union legislation existing at the time 
Directive 2000/60/EC was adopted as laid down in Article 4(9) of Directive 
2000/60/EC; and 

(d) 

impose  major  changes  in  type  of  land  use,  and/or  major  restrictions  in 
farming practice resulting in a significant loss of income.  

5. 

The  requirements  referred  to  in  paragraphs  3  and  4  shall  be  identified  in  the 
programme. 

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6. 

The following areas shall be eligible for payments: 

(a)  Natura  2000  agricultural  and  forest  areas  designated  pursuant  to  Directives 

92/43/EEC and 2009/147/EC ; 

(b)  other  delimited  nature  protection  areas  with  environmental  restrictions 
applicable  to  farming  or  forests  which  contribute  to  the  implementation  of 
Article 10 of Directive 92/43/EEC. These areas shall, per rural development 
programme, not exceed 5% of the designated Natura 2000 areas covered by 
its territorial scope; 

(c) 

agricultural  areas  included  in  river  basin  management  plans  according  to 
Directive 2000/60/EC. 

7. 

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

Article 32 

1. 

2. 

3. 

4. 

5. 

6. 

Payments to areas facing natural or other specific constraints 

Payments  to  farmers  in  mountain  areas  and  other  areas  facing  natural  or  other 
specific  constraints  shall  be  granted  annually  per  hectare  of  UAA  in  order  to 
compensate  farmers  for  additional  costs  and  income  foregone  related  to  the 
constraints for agricultural production in the area concerned.  

Additional  costs  and  income  foregone  shall  be  calculated  in  comparison  to  areas 
which are not affected by natural or other specific constraints, taking into account 
payments pursuant to Chapter 3 of Title III of Regulation (EU) No DP/2012. 

Payments shall be granted to farmers who undertake to pursue their farming activity 
in the areas designated pursuant to Article 33. 

Payments shall be fixed between the minimum and maximum amount laid down in 
Annex I.  

Member States shall provide for degressivity of payments above a threshold level 
of area per holding, to be defined in the programme. 

Member States may grant payments under this measure between 2014 and 2017 to 
farmers in areas which were eligible under Article 36(a)(ii) of Regulation (EC) No 
1698/2005  during  the  2007-2013  programming  period  but  are  no  longer  eligible 
following the new delimitation referred to in Article 33(3). These payments shall be 
degressive starting in 2014 at 80% of the payment received in 2013 and ending in 
2017 at 20%. 

In Member States which have not completed the delimitation referred to in Article 
33(3) before 1 January 2014, paragraph 5 shall apply to farmers receiving payments 
in  areas  which  were  eligible  for  such  payments  during  the  2007-2013  period. 
Following completion of the delimitation, farmers in areas that remain eligible shall 

EN 

55 

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receive  full  payments  under  this  measure.  Farmers  in  areas  that  are  no  longer 
eligible shall continue to receive payments in accordance with paragraph 5. 

Article 33 

Designation of areas facing natural and other specific constraints 

1. 

Member States shall, on the basis of paragraphs 2, 3 and 4, designate areas eligible 
for payments provided for in Article 32 under the following categories: 

(a)  mountain areas; 

(b) 

areas, other than mountain areas, facing significant natural constraints; and 

(c)  other areas affected by specific constraints. 

2. 

In  order  to  be  eligible  for  payments  under  Article  32,  mountain  areas  shall  be 
characterized by a considerable limitation of the possibilities for using the land and 
by an appreciable increase in production costs due to: 

(a) 

(b) 

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

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

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

In  order  to  be  eligible  for  payments  under  Article  32,  areas,  other  than  mountain 
areas, shall be considered as facing significant natural constraints if at least 66% of 
the UAA meets at least one of the criteria listed in Annex II at the threshold value 
indicated. Respect of this condition shall be ensured at the appropriate level of local 
administrative units ("LAU 2" level).  

When  delimiting  the  areas  concerned  by  this  paragraph,  Member  States  shall 
undertake  a  fine-tuning  exercise,  based  on  objective  criteria,  with  the  purpose  of 
excluding areas in which significant natural constraints in accordance with the first 
subparagraph have been documented but have been overcome by investments or by 
economic activity. 

Areas  other  than  those  referred  to  in  paragraphs  2  and  3  shall  be  eligible  for 
payments  under  Article  32  if  they  are  affected  by  specific  constraints  and  where 
land  management  should  be  continued  in  order  to  conserve  or  improve  the 
environment, maintain the countryside and preserve the tourist potential of the area 
or in order to protect the coastline. 

3. 

4. 

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Areas  affected  by  specific  constraints  shall  comprise  farming  areas  which  are 
homogeneous from the point of view of natural protection conditions and their total 
extent shall not exceed 10% of the area of the Member State concerned.  

5. 

Member States shall attach to their rural development programmes: 

(a) 

the existing or amended delimitation pursuant to paragraphs 2 and 4;  

(b) 

the new delimitation of the areas referred to in paragraph 3. 

Article 34 

Animal welfare 

1. 

2. 

3. 

4. 

1. 

Animal  welfare  payments  under  this  measure  shall  be  granted  to  farmers  who 
undertake, on a voluntary basis, to carry out operations consisting of one or more 
animal welfare commitments. 

Animal welfare payments cover only those commitments going beyond the relevant 
mandatory  standards  established  pursuant  to  Chapter  I  of  Title  VI  of  Regulation 
(EU)  No  HR/2012  and  other  relevant  mandatory  requirements  established  by 
national  legislation.  These  relevant  requirements  shall  be  identified  in  the 
programme. 

Those commitments shall be undertaken for a renewable period of one year. 

The area based or other unitary costs based payments shall be granted annually and 
shall compensate farmers for all or part of the additional costs and income foregone 
resulting  from  the  commitment  made.  Where  necessary,  they  may  also  cover 
transaction  costs  to  the  value  of  up  to  20%  of  the  premium  paid  for  the  animal 
welfare commitments. 

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

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article  90  concerning  the  definition  of  the  areas  in  which  animal  welfare 
commitments shall provide upgraded standards of production methods. 

Article 35 

Forest-environmental and climate services and forest conservation 

Support under this measure shall be granted per hectare of forest to forest holders, 
municipalities and their associations who undertake, on a voluntary basis, to carry 
out operations consisting of one or more forest-environment commitments. Bodies 
managing  state  owned  forests  may  also  benefit  from  support  provided  they  are 
independent from the state budget.  

EN 

57 

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For forest holdings above a certain threshold to be determined by Member States in 
their  rural  development  programmes,  support  under  paragraph  1  shall  be 
conditional on the submission of a forest management plan or equivalent instrument 
in line with sustainable forest management. 

Payments  shall  cover  only  those  commitments  going  beyond  the  relevant 
mandatory  requirements  established  by  the  national  forestry  act  or  other  relevant 
national legislation. All such requirements shall be identified in the programme. 

Commitments  shall  be  undertaken  for  a  period  of  between  five  and  seven  years. 
However,  where  necessary  and  duly  justified,  Member  States  may  determine  a 
longer  period  in  their  rural  development  programmes  for  particular  types  of 
commitments. 

Payments shall compensate beneficiaries for all or part of the additional costs and 
income foregone resulting from the commitments made. Where necessary they may 
also  cover  transaction  costs  to  a  value  of  up  to  20%  of  the  premium  paid  for  the 
forest-environment commitments. Support shall be limited to the maximum amount 
laid down in Annex I. 

Support  may  be  provided  to  private  entities,  municipalities  and  their  associations 
for  the  conservation  and  promotion  of  forest  genetic  resources  for  operations  not 
covered under paragraphs 1, 2 and 3. 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article 90 concerning the types of operations eligible for support under paragraph 
4. 

2. 

3. 

4. 

5. 

Article 36 

Co-operation 

1. 

Support under this measure shall promote forms of co-operation involving at least 
two entities and in particular: 

(a) 

co-operation approaches among different actors in the Union agriculture and 
food  chain,  forestry  sector  and  among  other  actors  that  contribute  to 
achieving the objectives and priorities of rural development policy, including 
inter-branch organisations; 

(b) 

the creation of clusters and networks; 

(c) 

the  establishment  and  operation  of  operational  groups  of  the  EIP  for 
agricultural productivity and sustainability as referred to in Article 62. 

2. 

Co-operation under paragraph 1 shall relate in particular to the following: 

(a)  pilot projects; 

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58 

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(b) 

(c) 

the development of new products, practices, processes and technologies in the 
agriculture, food and forestry sectors 

co-operation  among  small  operators  in  organising  joint  work  processes, 
sharing facilities and resources; 

(d)  horizontal  and  vertical  co-operation  among  supply  chain  actors  for  the 
establishment of  logistic platforms to promote short supply chains and local 
markets; 

(e)  promotion  activities  in  a  local  context  relating  to  the  development  of  short 

supply chains and local markets; 

(f) 

(g) 

joint  action  undertaken  with  a  view  to  mitigating  or  adapting  to  climate 
change;  

collective  approaches  to  environmental  projects  and  ongoing  environmental 
practices; 

(h)  horizontal  and  vertical  cooperation  among  supply  chain  actors  in  the 
sustainable  production  of  biomass  for  use  in  food,  energy  production  and 
industrial processes. 

(i) 

implementation,  in particular by public-private partnerships other than  those 
defined  in  Article  28(1)(b)  of  Regulation  (EU)  No  [CSF/2012],  of  local 
development  strategies  addressing  one  or  more  of  the  Union  priorities  for 
rural development; 

(j) 

drawing up of forest management plans or equivalent instruments. 

Support  under  paragraph  1(b)  shall  be  granted  only  to  newly  formed  clusters  and 
networks and those commencing an activity that is new to them. 

Support  for  operations  under  paragraph  2(b)  may  be  granted  also  to  individual 
actors where this possibility is provided for in the rural development programme.  

The  results  of  pilot  projects  and  operations  by  individual  actors  under  paragraph 
2(b) shall be disseminated.   

The following costs, linked to the forms of co-operation referred to in paragraph 1 
shall be eligible for support under this measure: 

(a) 

(b) 

studies of the area concerned, feasibility studies, and costs for the drawing up 
of  a  business  plan  or  a  forest  management  plan  or  equivalent,  or  local 
development  strategy  other  than  the  one  referred  to  in  Article  29  of 
Regulation EU (No) [CSF/2012]; 

animation  of  the  area  concerned  in  order  to  make  a  collective  territorial 
project  feasible.  In  the  case  of  clusters,  animation  may  also  concern  the 
organisation of training, networking between members and the recruitment of 
new members; 

3. 

4. 

5. 

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59 

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(c) 

running costs of the co-operation; 

(d)  direct  costs  of  specific  projects  linked  to  the  implementation  of  a  business 
plan, a local development strategy other than the one referred to in Article 29 
of Regulation (EU) No [CSF/2012] or an action targeted towards innovation; 

(e) 

costs of promotion activities. 

6. 

7. 

8. 

9. 

10. 

Where a business plan or a forest management plan or equivalent or a development 
strategy is implemented, Member States may grant the aid either as a global amount 
covering  the  costs  of  co-operation  and  the  costs  of  the  projects  implemented  or 
cover only the costs of the co-operation and use funds from other measures or other 
Union Funds for project implementation. 

Co-operation among actors located in different regions or Member States shall also 
be eligible for support. 

Support shall be limited to a maximum period of seven years except for collective 
environmental action in duly justified cases. 

Co-operation  under  this  measure  may  be  combined  with  projects  supported  by 
Union  funds  other  than  the  EAFRD  in  the  same  territory.  Member  States  shall 
ensure  that  overcompensation  as  a  result  of  the  combination  of  this  measure  with 
other national or Union support instruments is avoided.  

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article  90  concerning  the  further  specification  of  the  characteristics  of  pilot 
projects,  clusters,  networks,  short  supply  chains  and  local  markets  that  will  be 
eligible  for  support,  as  well  as  concerning  the  conditions  for  granting  aid  to  the 
types of operation listed in paragraph 2. 

Article 37 

Risk management  

1. 

Support under this measure shall cover: 

(a) 

(b) 

(c) 

financial contributions, paid directly to farmers, to premiums for crop, animal 
and  plant  insurance  against  economic  losses  caused  by  adverse  climatic 
events and animal or plant diseases or pest infestation; 

financial  contributions  to  mutual  funds  to  pay  financial  compensations  to 
farmers,  for  economic  losses  caused  by  the  outbreak  of  an  animal  or  plant 
disease or an environmental incident; 

an income stabilisation tool, in the form of financial contributions to mutual 
funds,  providing  compensation  to  farmers  who  experience  a  severe  drop  in 
their income. 

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2. 

3. 

4. 

1. 

2. 

3. 

For  the  purpose  of  paragraph  1  points  (b)  and  (c),  ‘mutual  fund’  shall  mean  a 
scheme  accredited  by  the  Member  State  in  accordance  with  its  national  law  for 
affiliated farmers to insure themselves, whereby compensation payments are made 
to  affiliated  farmers  affected  by  economic  losses  caused  by  the  outbreak  of  an 
animal or plant disease or an environmental incident or experiencing a severe drop 
in their income. 

Member States shall ensure that overcompensation as a result of the combination of 
this measure with other national or Union support instruments or private insurance 
schemes  is  avoided.  Direct  income  support  received  under  the  European 
Globalisation  Adjustment  Fund36  (hereinafter  "EGF")  shall  also  be  taken  into 
consideration when estimating the income levels of farmers. 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article  90  concerning  the  minimum  and  maximum  duration  of  the  commercial 
loans to mutual funds referred to in Articles 39(3)(b) and 40(4). 

Article 38 

Crop, animal, and plant insurance 

Support under Article 37(1)(a) shall only be granted for insurance contracts which 
cover for loss caused by an adverse climatic event or by an animal or plant disease 
or a pest infestation or a measure adopted in accordance with Directive 2000/29/EC 
to eradicate or contain a plant disease or pest which destroys more than 30 % of the 
average  annual  production  of  the  farmer  in  the  preceding  three-year  period  or  a 
three-year  average  based  on  the  preceding  five-year  period,  excluding  the  highest 
and lowest entry. 

The occurrence of an adverse climatic event or the outbreak of an animal or plant 
disease or pest infestation has to be formally recognised as such by the competent 
authority of the Member State concerned. 

Member States may, where appropriate, establish in advance criteria on the basis of 
which such formal recognition shall be deemed to be granted. 

Insurance  payments  shall  compensate  for  not  more  than  the  total  of  the  cost  of 
replacing the losses referred to in Article 37(1)(a) and shall not require or specify 
the type or quantity of future production. 

Member States may limit the amount of the premium that is eligible for support by 
applying appropriate ceilings. 

4. 

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

36 

Regulation  (EU)  No  […]  of  […]  of  the  European  Parliament  and  the  Council  on  the  European 
Globalisation Adjustment Fund (2014-2020), OJ L […], […], p. […]. 

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Article 39 

Mutual funds for animal and plant diseases and environmental 

1. 

In order to be eligible for support the mutual fund concerned shall: 

incidents 

(a)  be accredited by the competent authority in accordance with national law; 

(b)  have  a  transparent  policy  towards  payments  into  and  withdrawals  from  the 

fund; 

(c)  have clear rules attributing responsibilities for any debts incurred.  

2. 

Member  States  shall  define  the  rules  for  the  constitution  and  management  of  the 
mutual funds, in particular for the granting of compensation payments to farmers in 
the  event  of  crisis  and  for  the  administration  and  monitoring  of  compliance  with 
these rules. 

3. 

The financial contributions referred to in Article 37(1)(b) may only relate to: 

(a) 

(b) 

the  administrative  costs  of  setting  up  the  mutual  fund,  spread  over  a 
maximum of three years in a degressive manner; 

the amounts paid by the mutual fund as financial compensation to farmers. In 
addition, the financial contribution may relate to interest on commercial loans 
taken  out  by  the  mutual  fund  for  the  purpose  of  paying  the  financial 
compensation to farmers in case of crisis. 

No contribution by public funds shall be made to initial capital stock. 

4. 

As  regards  animal  diseases,  financial  compensation  under  Article  37(1)(b)  may 
only  be  granted  in  respect  of  diseases  mentioned  in  the  list  of  animal  diseases 
established  by  the  World  Organisation  for  Animal  Health  and/or  in  the  Annex  to 
Decision 90/424/EEC. 

5. 

Support shall be limited to the maximum support rate laid down in Annex I.  

Member States may limit the costs that are eligible for support by applying: 

(a) 

ceilings per fund; 

(b) 

appropriate per unit ceilings. 

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Article 40 

Income stabilisation tool 

1. 

Support  under  Article  37(1)(c)  may  only  be  granted  where  the  drop  of  income 
exceeds  30%  of  the  average  annual  income  of  the  individual  farmer  in  the 
preceding  three-year  period  or  a  three-year  average  based  on  the  preceding  five-
year  period  excluding  the  highest  and  lowest  entry.  Income  for  the  purposes  of 
Article  37(1)(c)  shall  refer  to  the  sum  of  revenues  the  farmer  receives  from  the 
market, including any form of public support, deducting input costs. Payments by 
the mutual fund to farmers shall compensate for not more than 70% of the income 
lost. 

2. 

In order to be eligible for support the mutual fund concerned shall: 

(a)  be accredited by the competent authority in accordance with national law; 

(b)  have  a  transparent  policy  towards  payments  into  and  withdrawals  from  the 

fund; 

(c)  have clear rules attributing responsibilities for any debts incurred.  

3. 

4. 

Member  States  shall  define  the  rules  for  the  constitution  and  management  of  the 
mutual funds, in particular for the granting of compensation payments to farmers in 
the  event  of  crisis  and  for  the  administration  and  monitoring  of  compliance  with 
these rules. 

The  financial  contributions  referred  to  in  Article  37(1)(c)  may  only  relate  to  the 
amounts paid by the mutual fund as financial compensation to farmers. In addition, 
the financial contribution may relate to interest on commercial loans taken out by 
the mutual fund for the purpose of paying the financial compensation to farmers in 
case of crisis. 

No contribution by public funds shall be made to initial capital stock. 

5. 

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

Article 41 

Rules on the implementation of the measures 

The Commission shall, by means of implementing acts, adopt rules on the implementation 
of the measures in this section concerning: 

(a) 

procedures for selection of authorities or bodies offering farm and forestry advisory 
services,  farm  management  or  farm  relief  services  and  the  degressivity  of  the  aid 
under the advisory services measure referred to in Article 16 ; 

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(b) 

(c) 

(d) 

(e) 

the assessment by the Member State of the progress of the business plan, payment 
options as well as modalities for access to other measures for young farmers under 
the farm and business development measure referred to in Article 20; 

demarcation  with  other  measures,  conversion  to  units  other  than  those  used  in 
Annex  I,  calculation  of  transaction  costs  and  conversion  or  adjustment  of 
commitments under the agri-environment-climate measure referred to in Article 29, 
the organic farming measure referred to in Article 30 and the forest-environmental 
and climate services and forest conservation measure referred to in Article 35;  

the  possibility  of  using  standard  assumptions  of  income  foregone  under  the 
measures of Articles 29, 30, 31, 32, 34 and 35 and criteria for its calculation;  

calculation  of  the  amount  of  support  where  an  operation  is  eligible  for  support 
under more than one measures. 

These  implementing  acts  shall  be  adopted  in  accordance  with  the  examination  procedure 
referred to in Article 91. 

SECTION 2 

LEADER 

Article 42 

LEADER local action groups 

1. 

2. 

In addition to the tasks referred to in Article 30 of Regulation (EU) No [CSF/2012] 
local  action  groups  may  also  perform  additional  tasks  delegated  to  them  by  the 
Managing Authority and/or the paying agency. 

Local  action  groups  may  request  the  payment  of  an  advance  from  the  competent 
paying  agency  if  such  possibility  is  provided  for  in  the  rural  development 
programme.  The  amount  of  the  advances  shall  not  exceed  50%  of  the  public 
support related to the running and animation costs.  

Article 43 

Preparatory support 

1. 

Support under Article 31(a) of Regulation (EU) No [CSF/2012] shall cover: 

(a) 

a  “LEADER  start-up  kit”  consisting  of  capacity  building  actions  for  groups 
who did not implement LEADER in the 2007-2013 programming period and 
support for small pilot projects;  

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(b) 

capacity  building,  training  and  networking  with  a  view  to  preparing  and 
implementing a local development strategy. 

2. 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article  90  concerning  the  definition  of  the  eligible  costs  of  the  actions  under 
paragraph 1.  

Article 44 

LEADER co-operation activities 

1. 

The support referred to in Article 31(c) of Regulation (EU) No [CSF/2012] shall be 
granted to: 

(a) 

inter-territorial or transnational co-operation projects;  

“Inter-territorial  co-operation”  means  co-operation  within  a  Member  State. 
“Transnational  co-operation”  means  co-operation  between  territories  in 
several Member States and with territories in third countries. 

(b)  preparatory  technical  support  for  inter-territorial  and  transnational  co-
operation projects, on condition that local action groups can demonstrate that 
they are envisaging the implementation of a concrete project. 

2. 

Apart from other local action groups, the partners of a local action group under the 
EAFRD may be: 

(a) 

(b) 

a  local  public-private  partnership  on  a  rural  territory  that  is  implementing  a 
local development strategy within or outside the Union;  

a local public-private partnership on a non rural territory that is implementing 
a local development strategy.  

3. 

In  cases  where  co-operation  projects  are  not  selected  by  the  local  action  groups, 
Member  States  shall  establish  a  system  of  ongoing  application  for  co-operation 
projects. 

They  shall  make  public  the  national  or  regional  administrative  procedures 
concerning the selection of transnational co-operation projects and a list of eligible 
costs  at  the  latest  two  years  after  the  date  of  approval  of  their  rural  development 
programmes. 

Approval  of  co-operation  projects  shall  take  place  no  later  than  four  months  after 
the date of submission of the project. 

4. 

Member  States  shall  communicate  to  the  Commission  the  approved  transnational 
co-operation projects. 

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Article 45 

Running costs and animation 

1. 

2. 

3. 

Running costs referred to in Article 31(d) of  Regulation (EU) No [CSF/2012] are 
costs  linked  to  the  management  of  the  implementation  of  the  local  development 
strategy through the local action group.  

Costs  for  the  animation  of  the  territory  referred  to  in  Article  31(d)  of  Regulation 
(EU)  No  [CSF/2012]  are  costs  to  cover  actions  to  inform  about  the  local 
development strategy as well as project development tasks.  

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article  90  concerning  the  definition  of  the  eligible  costs  of  the  actions  under 
paragraph 2. 

Chapter II 
Common provisions for several measures 

Article 46 

Investments 

1. 

In order to be eligible for EAFRD support investment operations shall be preceded 
by  an  assessment  of  the  expected  environmental  impact  in  accordance  with 
legislation specific to that kind of investment where the investment is likely to have 
negative effects on the environment. 

2. 

Eligible expenditure shall be limited to: 

(a) 

(b) 

the  construction,  acquisition, 
immovable property; 

including 

leasing,  or 

improvement  of 

the  purchase  or  lease  purchase  of  new  machinery  and  equipment  including 
computing software up to the market value of the asset; 

(c)  general costs linked to expenditure referred to in points (a) and (b), such as 
architect, engineer and consultation fees, feasibility studies, the acquisition of 
patents or licenses. 

3. 

In the case of irrigation, only investments that lead to a reduction of previous water 
use  by  at  least  25%  shall  be  considered  as  eligible  expenditure.  By  way  of 
derogation,  in  the  Member  States  that  adhered  to  the  Union  from  2004  onwards 
investments in new irrigation installations can be considered eligible expenditure in 
cases  where  an  environmental  analysis  provides  evidence  that  the  investment 
concerned is sustainable and has no negative environmental impact. 

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4. 

5. 

6. 

In  the  case  of  agricultural  investments,  the  purchase  of  agricultural  production 
rights, payment entitlements, animals, annual plants and their planting shall not be 
eligible  for  investment  support.  However,  in  case  of  restoration  of  agricultural 
production  potential  damaged  by  natural  disasters  in  accordance  with  Article 
19(1)(b), expenditure for the purchase of animals may be eligible expenditure. 

Beneficiaries of investment related support may request the payment of an advance 
of up to 50% of the public aid related to the investment from the competent paying 
agencies if that option is included in the rural development programme. 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article  90  concerning  the  conditions  under  which  other  costs  connected  with 
leasing contracts, second hand equipment and simple replacement investments may 
be considered as eligible expenditure. 

Article 47 

Rules for area related payments 

1. 

The number of hectares to which a commitment pursuant to Articles 29, 30 and 35 
applies may vary from year to year where: 

(a) 

this possibility is provided for in the rural development programme; 

(b) 

the commitment in question does not apply to fixed parcels; and 

(c) 

the achievement of the commitment's objective is not jeopardised. 

Where all or part of the land under commitment or the entire holding is transferred 
to another person during the period for which a commitment given as a condition 
for  the  grant  of  assistance  runs,  the  commitment  may  be  taken  over  for  the 
remainder of the period by that other person or expire. 

Where  a  beneficiary  is  unable  to  continue  to  comply  with  commitments  given 
because  the  holding  is  re-parcelled  or  is  the  subject  of  public  land  consolidation 
measures  or  land  consolidation  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. 

Reimbursement of the aid received shall not be required in cases of force majeure. 

Paragraph 2 as regards cases of transfer of the entire holding and paragraph 4 shall 
also apply to commitments under Article 34. 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article 90 concerning conditions applicable in case of partial transfer of a holding, 
the  definition  of  other  situations  in  which  reimbursement  of  the  aid  shall  not  be 
required. 

2. 

3. 

4. 

5. 

6. 

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Article 48 

Revision clause 

A revision clause shall be provided for operations undertaken pursuant to Articles 29, 30, 34 
and  35  in  order  to  ensure  their  adjustment  in  the  case  of  amendments  of  the  relevant 
mandatory standards, requirements or obligations referred to in those Articles beyond which 
the  commitments  have  to  go.  Operations  undertaken  pursuant  to  Articles  29,  30  and  35 
which  extend  beyond  the  current  programming  period  shall  contain  a  revision  clause  in 
order  to  allow  for  their  adjustment  to  the  legal  framework  of  the  following  programming 
period.  

If such adjustment is not accepted by the beneficiary, the commitment shall expire.  

Article 49 

Project selection 

1. 

2. 

The Managing Authority of the rural development programme shall define selection 
criteria  for  operations  under  all  measures  following  consultation  with  the 
Monitoring  Committee.  Selection  criteria  shall  aim  to  ensure  equal  treatment  of 
applicants, better use of financial resources and targeting of measures in accordance 
with  the  Union  priorities  for  rural  development.  In  defining  selection  criteria  the 
principle of proportionality shall be taken into account in relation to small grants. 

The  Member  State  authority  responsible  for  project  selection  shall  ensure  that 
projects  are  selected  in  accordance  with  the  selection  criteria  referred  to  in 
paragraph  1  and  according  to  a  transparent  and  well  documented  procedure. 
Application of selection criteria shall not be compulsory in the case of the measures 
referred  to  in  Articles  29  to  32,  34  and  35  except  where  available  funds  are  not 
sufficient to cover all eligible applicants. 

3. 

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

Article 50 

Rural area definition 

For  the  purposes  of  this  Regulation  the  Managing  Authority  shall  define  "rural  area"  at 
programme level. 

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Chapter III 
Technical assistance and networking 

Article 51 

Funding technical assistance 

1. 

2. 

3. 

In accordance with Article 6 of Regulation (EU) No HR/2012 the EAFRD may use 
up to 0,25% of its annual allocation to finance the tasks referred to in Article 51 of 
Regulation  (EU)  No  [CSF/2012],  including  the  costs  for  setting  up  and  operating 
the  European  network  for  rural  development  referred  to  in  Article  52,  the  EIP 
network  referred  to  in  Article  53  and  the  European  evaluation  network  for  rural 
development referred to in Article 54, at the Commission's initiative and/or on its 
behalf.  

The  EAFRD  may  also  finance  the  actions  provided  for  in  Article  41(2)  of 
Regulation  (EU)  No  XXXX/XXXX  [quality  regulation],  in  relation  to  Union 
quality scheme indications and symbols. 

Those  actions  shall  be  carried  out  in  accordance  with  Article  53(2)  of  Regulation 
(EC, Euratom) No 1605/2002 and any other provisions of that Regulation and of its 
implementing provisions applicable to this form of execution of the budget. 

A  sum  of  EUR  30  million  shall  be  withdrawn  from  the  allocation  referred  to  in 
paragraph 1 and used to finance the prize for innovative, local cooperation referred 
to in Article 56. 

At the initiative of the Member States up  to 4%  of the total amount of each rural 
development  programme  may  be  devoted  to  the  tasks  referred  to  in  Article  52  of 
Regulation  (EC)  No  [CSF/2012],  as  well  as  costs  related  to  preparatory  work  for 
the delimitation of areas facing natural constraints referred to in Article 33(3).  

Costs relating to the certification body referred to in Article 9 of Regulation (EU) 
No HR/2012 shall not be eligible under this paragraph. 

Within the 4% limit an amount shall be reserved for establishing and operating the 
national rural network referred to in Article 55. 

4. 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article 90 concerning the further definition of control actions that shall be eligible 
for support under paragraph 3. 

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Article 52 

European network for rural development 

1. 

A  European  network  for  rural  development  for  the  networking  of  national 
networks,  organisations,  and  administrations  active 
the  field  of  rural 
development at Union level shall be put in place in accordance with Article 51(1). 

in 

2. 

Networking through the European network for rural development shall aim to: 

(a) 

increase  the  involvement  of  stakeholders  in  the  implementation  of  rural 
development` 

(b) 

improve the quality of rural development programmes` 

(c)  play  a  role  in  informing  the  broader  public  on  the  benefits  of  rural 

development policy. 

3. 

The tasks of the network shall be to: 

(a) 

(b) 

(c) 

collect,  analyse  and  disseminate  information  on  action  in  the  field  of  rural 
development; 

collect,  consolidate  and  disseminate  at  Union  level  good  rural  development 
practices; 

set up and run thematic groups and/or workshops with a view to facilitating 
the  exchange  of  expertise  and  to  supporting  implementation  and  monitoring 
and further development of rural development policy; 

(d)  provide  information  on  developments  in the  rural  areas  of  the  Union  and  in 

third countries; 

(e)  organise meetings and seminars at Union level for those actively involved in 

rural development; 

(f) 

support the national networks and transnational co-operation initiatives; 

(g) 

specifically for local action groups: 

(i) 

(ii) 

create  synergies  with  the  activities  carried  out  on  national  and/or 
regional  level  by  the  respective  networks  with  regard  to  capacity 
building actions and exchange of experience; and  

cooperate  with  the  networking  and  technical  support  bodies  for  local 
development  set  up  by  the  ERDF,  the  ESF  and  the  EMFF  as  regards 
their local development activities and transnational co-operation. 

4. 

The  Commission  shall,  by  means  of  implementing  acts,  set  out  the  organisational 
structure  and  operation  of  the  European  network  for  rural  development  network. 
Those  implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 91. 

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Article 53 

EIP network 

1. 

A EIP network shall be put in place to support the EIP for agricultural productivity 
and sustainability referred to in Article 61, in accordance with Article 51(1). It shall 
enable the networking of operational groups, advisory services and researchers 

2. 

The tasks of the EIP network shall be to: 

(a)  provide  a  help  desk  function  and  provide  information  to  key  actors 

concerning the EIP; 

(b) 

animate discussions at the level of the programme in view of encouraging the 
setting up of operational groups; 

(c) 

screen and report on research results and knowledge relevant to the EIP; 

(d) 

collect, consolidate and disseminate good practice relevant to innovation; 

(e)  organise conferences and workshops and disseminate information in the field 

of the EIP. 

The  Commission  shall,  by  means  of  implementing  acts,  set  out  the  organisational 
structure  and  operation  of  the  EIP  network.  Those  implementing  acts  shall  be 
adopted in accordance with the examination procedure referred to in Article 91. 

Article 54 

European evaluation network for rural development 

A  European  evaluation  network  for  rural  development  shall  be  put  in  place  to 
support the evaluation of rural development programmes in accordance with Article 
51(1).  It  shall  enable  the  networking  of  those  involved  in  the  evaluation  of  rural 
development programmes. 

The  aim  of  the  European  evaluation  network  for  rural  development  shall  be  to 
facilitate 
the  exchange  of  expertise  and  good  practices  on  evaluation 
methodologies,  to  develop  evaluation  methods  and  tools,  to  provide  support  on 
evaluation processes, and on data collection and management. 

The  Commission  shall,  by  means  of  implementing  acts,  set  out  the  organisational 
structure and operation of the European evaluation network for rural development. 
Those  implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 91. 

3. 

1. 

2. 

3. 

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Article 55 

National rural network 

1. 

Each  Member  State  shall  establish  a  national  rural  network,  which  groups  the 
organisations  and  administrations  involved  in  rural  development.  The  partnership 
referred to in Article 5 of Regulation (EU) No [CSF/2012] shall also be part of the 
national rural network. 

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

2. 

Networking by the national rural network shall aim to: 

(a) 

increase  the  involvement  of  stakeholders  in  the  implementation  of  rural 
development;  

(b) 

improve the quality of rural development programmes; 

(c) 

inform  the  broader  public  and  potential  beneficiaries  on  rural  development 
policy; 

(d) 

foster innovation in agriculture 

3. 

EAFRD support under Article 51(3) shall be used: 

(a) 

for the structures needed to run the network; 

(b) 

for  the  preparation  and  implementation  of  an  action  plan  containing  at  least 
the following: 

(i) 

network management; 

(ii) 

involvement of stakeholders in support of programme design; 

(iii)  support  for  monitoring,  in  particular  through  collection  and  sharing  of 
relevant  feed-back,  recommendations  and  analysis  notably  from  the 
Monitoring Committees referred to in Article 41 of Regulation (EU) No 
[CSF/2012]. Local action groups shall also be supported by the national 
rural  network  for 
local 
development strategies; 

the  monitoring  and  evaluation  of 

the 

(iv)  provision of training activities for programme implementing bodies and 

local action groups in the process of formation;  

(v) 

collection  of  examples  of  projects  covering  all  priorities  of  the  rural 
development programmes; 

(vi)  ongoing studies and analysis; 

(vii)  networking activities for local action groups and in particular technical 
assistance for inter-territorial and transnational co-operation, facilitation 

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of co-operation among local action groups and the search of partners for 
the measure referred to in Article 36; 

(viii)  facilitation  of  exchanges  of  practice  and  experience  among  advisers 

and/or advisory services; 

(ix)  networking activities for innovation; 

(x) 

a  communication  plan  including  publicity  and  information  concerning 
the  rural  development  programme  in  agreement  with  the  Managing 
Authorities  and  information  and  communication  activities  aimed  at  a 
broader public. 

(xi)  provision  to  participate  in  and  contribute  to  the  activities  of  the 

European rural development network; 

(c) 

the setting up of a pre-selection board of independent experts and the process 
of pre-selection of applications for the prize for innovative local co-operation 
referred to in Article 58(2). 

4. 

The  Commission  shall,  by  means  of  implementing  acts,  adopt  rules  for  the 
establishment  and  operation  of  national  rural  networks.  Those  implementing  acts 
shall  be  adopted  in  accordance  with  the  examination  procedure  referred  to  in 
Article 91. 

Chapter IV 
Prize for innovative, local cooperation in rural areas 

Article 56 

Prize for innovative, local cooperation in rural areas 

The  funds  referred  to  in  Article  51(2)  shall  be  used  for  financing  the  award  of  a  prize  to 
cooperation projects involving at least two entities located in different Member States that 
realise an innovative, local concept.  

Article 57 

Call for proposals  

1. 

2. 

Starting at the latest in 2015 and every year thereafter the Commission shall launch 
a call for proposals in view of awarding the prize referred to in Article 56. The last 
call for proposals shall be launched no later than in 2019. 

The call for proposals shall indicate a theme for the proposals which shall be related 
to  one  of  the  Union  priorities  for  rural  development.  The  theme  shall  also  be 
appropriate for implementation through cooperation at transnational level. 

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3. 

The  call  for  proposals  shall  be  open  to  both  local  action  groups  and  individual 
entities cooperating for the purpose of the specific project. 

Article 58 

Selection procedure 

1. 

2. 

3. 

4. 

1. 

2. 

3. 

Applications for the prize shall be submitted by applicants in all Member States to 
the  respective  national  rural  network,  which  shall  be  responsible  for  pre-selecting 
applications. 

National  rural  networks  shall  set  up,  from  within  their  members,  a  pre-selection 
board  of  independent  experts  in  order  to  pre-select  applications.  Pre-selection  of 
applications shall be done on the basis of the exclusion, selection and award criteria 
defined in the call for proposals. Each National Rural Network shall pre-select no 
more than 10 applications and shall transmit them to the Commission.  

The  Commission  shall  be  responsible  for  the  selection  of  fifty  winning  projects 
among  the  applications  pre-selected  in  all  the  Member  States.  The  Commission 
shall  set  up  an  ad  hoc  steering  group  composed  of  independent  experts.  This 
steering group shall prepare the selection of the winning applications on the basis of 
the exclusion, selection and award criteria defined in the call for proposals. 

The  Commission  shall,  by  means  of  an  implementing  act,  decide  on  the  list  of 
projects to which the prize is awarded. 

Article 59 

Financial Prize – conditions and payment 

In  order  for  projects  to  be  eligible  for  the  prize,  the  time  required  for  their 
completion  shall  not  exceed  two  years  from  the  date  of  adoption  of  the 
implementing  act  awarding  the  prize.  The  time  frame  of  realisation  of  the  project 
shall be defined in the application. 

The prize shall be granted in the form of a lump sum payment. The amount of the 
payment shall be determined by the Commission, by means of implementing acts, 
in  line  with  criteria  defined  in  the  call  for  proposals  and  taking  into  account  the 
estimated  cost  of  realisation  of  the  project  indicated  in  the  application.  The 
maximum prize per project shall not exceed 100 000 euro.  

Member  States  shall  pay  the  award  to  winning  applicants  after  verifying  that  the 
project  has  been  completed.  The  relevant  expenditure  shall  be  reimbursed  by  the 
Union to Member States in accordance with the provisions of Section 4 of Chapter 
II of Title IV of Regulation (EU) No HR/2012. Member States may decide to pay 
fully or partly the sum of the prize to the winning applicants before having verified 
the completion of the project but they shall, in this case, bear the responsibility for 
the expenditure until the completion of the project is verified. 

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Article 60 

Rules on the procedure, timetables and setting up of the steering-group 

The Commission shall by means of implementing acts lay down detailed provisions on the 
procedure  and  timetables  for  the  selection  of  projects  and  rules  on  the  setting  up  of  the 
steering group of independent experts referred to in Article 58(3). Those implementing acts 
shall be adopted in accordance with the examination procedure referred to in Article 91. 

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TITLE IV  
EIP for agricultural productivity and sustainability 

Article 61 

Aims 

1. 

The EIP for agricultural productivity and sustainability shall: 

(a)  promote  a  resource  efficient,  productive,  low  emission,  climate  friendly  and 
resilient  agricultural  sector,  working  in  harmony  with  the  essential  natural 
resources on which farming depends; 

(b)  help deliver a steady supply of food, feed and biomaterials, both existing and 

new ones; 

(c) 

improve processes to preserve the environment, adapt to climate change and 
mitigate it; 

(d)  build  bridges  between  cutting-edge  research  knowledge  and  technology  and 

farmers, businesses and advisory services. 

2. 

The  EIP  for  agricultural  productivity  and  sustainability  shall  seek  to  achieve  its 
aims by: 

(a) 

creating  added  value  by  better  linking  research  and  farming  practice  and 
encouraging the wider use of available innovation measures; 

(b)  promoting  the  faster  and  wider  transposition  of  innovative  solutions  into 

practice; and 

(c) 

informing  the  scientific  community  about  the  research  needs  of  farming 
practice. 

The EAFRD shall contribute to the aims of the EIP for agricultural productivity and 
sustainability through support, in accordance with Article 36, of the EIP operational 
groups referred to in Article 62 and the EIP Network referred to in Article 53. 

Article 62 

Operational groups 

EIP operational groups shall form part of the EIP for agricultural productivity and 
sustainability. They shall be set up by interested actors such as farmers, researchers, 
advisors and businesses involved in the agriculture and food sector. 

3. 

1. 

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2. 

EIP operational groups shall establish internal procedures that ensure transparency 
in their operation and avoid situations of conflict of interest.  

Article 63 

Tasks of operational groups 

1. 

EIP operational groups shall draw up a plan that contains the following: 

(a) 

(b) 

a  description  of  the  innovative  project  to  be  developed,  tested,  adapted  or 
implemented; 

a description of the expected results and the contribution to the EIP objective 
of enhancing productivity and sustainable resource management. 

2. 

In implementing their innovative projects operational groups shall: 

(a)  make decisions on the elaboration and implementation of innovative actions; 

and 

(b) 

implement  innovative  actions  through  measures  financed  through  the  rural 
development programmes. 

3. 

Operational  groups  shall  disseminate  the  results  of  their  project,  in  particular 
through the EIP network. 

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TITLE V 
Financial provisions 

Article 64 

Resources and their distribution 

The total amount of Union support for rural development under this Regulation for 
the  period  from  1  January  2014  to  31  December  2020,  its  annual  breakdown  and 
the minimum amount to be concentrated in less developed regions shall be fixed by 
the  European  Parliament  and  the  Council,  on  a  proposal  from  the  Commission  in 
accordance  with  the  multiannual  financial  framework  for  the  years  2014  to  2020 
and  the  Interinstitutional  Agreement  on  cooperation  in  budgetary  matters  and  on 
sound financial management37 for the same period. 

0,25%  of  the  resources  referred  to  in  paragraph  1  shall  be  devoted  to  technical 
assistance for the Commission as referred to in Article 51(1). 

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

The  Commission  shall,  by  means  of  an  implementing  act,  make  an  annual 
breakdown  by  Member  State  of  the  amounts  referred  to  in  paragraph  1,  after 
deduction  of  the  amount  referred  to  in  paragraph  2  and  taking  into  account  the 
transfer  of  funds  referred  to  in  Article  14(2)  of  Regulation  (EU)  No  DP/2012.  In 
making the annual breakdown the Commission shall take into account: 

(a)  objective criteria linked to the objectives referred to in Article 4; and 

(b)  past performance. 

In addition to the amounts referred to in paragraph 4, the implementing act referred 
to in the same paragraph shall also include the funds transferred to the EAFRD in 
application of Articles 7(2) and 14(1) of Regulation (EU) No DP/2012. 

For the purposes of the allocation of the performance reserve referred to in Article 
20(2) of Regulation (EU) No [CSF/2012], available assigned revenue collected in 
accordance with Article 45 of Regulation (EU) No HR/2012 for the EAFRD shall 
be  added  to  the  amounts  referred  to  in  Article  18  of  Regulation  (EU)  No 
[CSF/2012]. It shall be allocated to Member States proportionally to their share of 
the total amount of support from the EAFRD.    

1. 

2. 

3. 

4. 

5. 

6. 

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Article 65 

Fund contribution 

1. 

2. 

3. 

The  decision  approving  a  rural  development  programme  shall  set  the  maximum 
contribution  from  the  EAFRD  to  the  programme.  The  decision  shall  clearly 
identify,  where  necessary,  the  appropriations  allocated  to  the  less  developed 
regions. 

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

The  rural  development  programmes  shall  establish  a  single  EAFRD  contribution 
rate applicable to all measures. Where applicable, a separate EAFRD contribution 
rate shall be established for less developed regions, and for outermost regions and 
the  smaller  Aegean  islands  within  the  meaning  of  Regulation  (EEC)  No  2019/93. 
The maximum EAFRD contribution rate shall be: 

(a)  85%  of  the  eligible  public  expenditure  in  the  less  developed  regions,  the 
outermost  regions  and  the  smaller  Aegean  islands  within  the  meaning  of 
Regulation (EEC) No 2019/93 ; 

(b)  50% of the eligible public expenditure in the other regions. 

The minimum EAFRD contribution rate shall be 20%. 

4. 

By way of derogation from paragraph 3, the maximum EAFRD contribution shall 
be: 

(a)  80% for the measures referred to in Articles 15, 28 and 36, for the LEADER 
local  development  referred  to  in  Article  28  of  Regulation  (EU)  No 
[CSF/2012] and for operations under Article 20(1)(a)(i). It may be increased 
to 90% for the programmes of less developed regions, the outermost regions 
and the smaller Aegean islands within the meaning of Regulation (EEC) No 
2019/93; 

(b)  100% for operations receiving funding under Article 66. 

5. 

6. 

7. 

At least 5% of the total EAFRD contribution to the rural development programme 
shall be reserved for Leader. 

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

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

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Article 66 

Funding for operations with a significant contribution to innovation 

The funds transferred to the EAFRD in  application  of  Article  7(2) of Regulation (EU) No 
DP/2012  shall  be  reserved  for  operations  which  provide  a  significant  contribution  to 
innovation  relevant  to  agricultural  productivity  and  sustainability,  including  climate 
mitigation or adaptation. 

Article 67 

Eligibility of expenditure 

1. 

2. 

3. 

4. 

By  way  of  derogation  from  Article  55(7)  of  Regulation  (EC)  No  [CSF/2012],  in 
cases  of  emergency  measures  due  to  natural  disasters,  the  rural  development 
programmes  may  provide  that  eligibility  of  expenditure  relating  to  programme 
changes may start from the date when the natural disaster occurred. 

Expenditure  shall  be  eligible  for  an  EAFRD  contribution  only  where  incurred  for 
operations decided upon by the Managing Authority of the programme in question 
or  under  its  responsibility,  in  accordance  with  selection  criteria  referred  to  in 
Article 49. 

With  the  exception  of  general  costs  as  defined  in  Article  46(2)(c),  in  respect 
of investment  operations  under  measures  falling  within  the  scope  of  Article  42  of 
the Treaty, only expenditure which has been incurred after an application has been 
submitted to the competent authority shall be considered eligible.  

Member States may provide in their programmes that only expenditure which has 
been incurred after the application for support has been approved by the competent 
authority shall be eligible. 

Paragraphs 1 and 2 shall not apply to Article 51(1) and (2). 

Payments  by  beneficiaries  shall  be  supported  by  invoices  and  documents  proving 
payment. Where this cannot be done, payments shall be supported by documents of 
equivalent probative value, except for forms of support under Article 57(1)(b), (c) 
and (d) of Regulation (EU) [CSF/2012]. 

Article 68  

Eligible expenditure 

1. 

Where  running  costs  are  covered  by  support  under  this  Regulation  the  following 
types of costs shall be eligible: 

(a)  operating costs; 

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(b)  personnel costs; 

(c) 

training costs; 

(d) 

costs linked to public relations; 

(e) 

financial costs; 

(f) 

networking costs. 

Studies  shall  only  be  eligible  expenditure  where  they  are  linked  to  a  specific 
operation  under  the  programme  or  the  specific  objectives  and  targets  of  the 
programme.  

Contributions in kind in the form of provision of works, goods, services, land and 
real  estate  for  which  no  cash  payment  supported  by  invoices  or  documents  of 
equivalent probative value has been made, may be eligible for support provided that 
the conditions of Article 59 of Regulation (EU) No [CSF/2012] are fulfilled. 

Indirect costs shall be eligible for support under the measures referred to in Articles 
15, 16, 19, 21, 25 and 36. 

Article 69 

Verifiability and controllability of measures 

Member States shall ensure that all the rural development measures they intend to 
implement are verifiable and controllable. To this end the Managing Authority and 
the paying agency of each rural development programme shall provide an ex ante 
assessment of the verifiability and controllability of the measures to be included in 
the  rural  development  programme.  The  Managing  Authority  and  paying  agency 
shall also undertake the assessment of verifiability and controllability of measures 
during  the  implementation  of  the  rural  development  programme.  Ex  ante 
assessment  and  assessment  during  the  implementation  period  shall  take  into 
account  the  results  of  controls  in  the  previous  and  current  programming  period. 
Where 
the  requirements  of  verifiability  and 
controllability are not met, the measures concerned shall be adjusted accordingly. 

the  assessment  reveals 

that 

Where aid is granted on the basis of standard costs or additional costs and income 
foregone,  Member  States  shall  ensure  that  the  relevant  calculations  are  adequate 
and  accurate  and  established  in  advance  on  the  basis  of  a  fair,  equitable  and 
verifiable calculation. To this end, a body that is independent from the authorities 
responsible  for  the  calculations  and  possesses  the  appropriate  expertise  shall 
provide a certificate confirming the adequacy and accuracy of the calculations. That 
certificate shall be included in the rural development programme. 

2. 

3. 

4. 

1. 

2. 

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Article 70 

Advances 

1. 

2. 

Payment of advances shall be subject to the establishment of a bank guarantee or an 
equivalent  guarantee  corresponding  to  100%  of  the  amount  of  the  advance.  As 
regards  public  beneficiaries,  advances  shall  be  paid  to  municipalities,  regional 
authorities and associations thereof, as well as to public law bodies.  

A  facility  provided  as  a  guarantee  by  a  public  authority  shall  be  considered 
equivalent to the guarantee referred to 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. 

The guarantee may be released when the competent paying agency establishes that 
the amount of actual expenditure corresponding to the public contribution related to 
the operation exceeds the amount of the advance. 

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TITLE VI 
Management, control and publicity 

Article 71 

Responsibilities of the Commission 

To ensure, in the context of shared management, sound financial management in accordance 
with  Article  317  of  the  Treaty,  the  Commission  shall  carry  out  the  measures  and  controls 
laid down in Regulation (EU) No HR/2012. 

Article 72 

Responsibilities of the Member States 

1. 

2. 

3. 

4. 

Member  States  shall  adopt  all  the  legislative,  statutory  and  administrative 
provisions  in  accordance  with  Article  60(1)  of  Regulation  (EU)  No  HR/2012  in 
order to ensure that the Union’s financial interests are effectively protected. 

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

(a) 

(b) 

(c) 

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

the accredited  paying  agency within the  meaning  of  Article  7  of  Regulation 
(EU) No HR/2012; 

the certification body within the meaning of Article 9 of Regulation (EU) No 
HR/2012. 

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

Member States shall clearly define the tasks of the managing authority, the Paying 
Agency and, the local action groups under LEADER as regards to the application of 
eligibility and selection criteria and the project selection procedure. 

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Article 73 

Managing Authority 

1. 

The Managing Authority shall be responsible for managing and implementing the 
programme in an efficient, effective and correct way and in particular for: 

(a) 

ensuring  that  there  is  an  appropriate  secure  electronic  system  to  record, 
maintain, manage and report statistical information on the programme and its 
implementation  required  for  the  purposes  of  monitoring  and  evaluation  and, 
in  particular,  information  required  to  monitor  progress  towards  the  defined 
objectives and priorities; 

(b)  providing the Commission, on a quarterly basis, with relevant indicator data 
on  operations  selected  for  funding,  including  key  characteristics  of  the 
beneficiary as well as the project; 

(c) 

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

(i) 

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

(ii) 

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

ensuring  that  the  ex  ante  evaluation  referred  to  in  Article  48  of  Regulation 
(EU) No [CSF/2012] conforms to the evaluation and monitoring system and 
accepting and submitting it to the Commission; 

ensuring that the evaluation plan referred to in Article 49 of Regulation (EU) 
No [CSF/2012] is in place, that the ex post programme evaluation referred to 
in Article 50 of Regulation (EU) No [CSF/2012] is conducted within the time 
limits laid down in that Regulation, ensuring that such evaluations conform to 
the monitoring and evaluation system and submitting them to the Monitoring 
Committee and the Commission; 

(d) 

(e) 

(f) 

providing  the  Monitoring  Committee  with  the  information  and  documents 
needed  to  monitor  implementation  of  the  programme  in  the  light  of  its 
specific objectives and priorities; 

(g)  drawing up the annual progress report, including aggregate monitoring tables, 
and,  after  approval  by  the  Monitoring  Committee,  submitting  it  to  the 
Commission;  

(h) 

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

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2. 

3. 

(i) 

ensuring  publicity  for  the  programme,  including  through  the  National  Rural 
Network, by informing potential beneficiaries, professional organisations, the 
economic and social partners, bodies involved in promoting equality between 
men  and  women,  and  the  non-governmental  organisations  concerned, 
including  environmental  organisations,  of  the  possibilities  offered  by  the 
programme and the rules for gaining access to programme funding as well as 
by  informing  beneficiaries  of  the  Union  contribution  and  the  general  public 
on the role played by the Union in the programme. 

The  Member  State  or  the  Managing  Authority  may  designate  one  or  more 
intermediate  bodies  including  local  authorities,  regional  development  bodies  or 
non-governmental organisations, to carry out the management and implementation 
of rural development operations.  

When a part of its tasks is delegated to another body, the Managing Authority shall 
retain  full  responsibility  for  the  efficiency  and  correctness  of  management  and 
implementation  of  those  tasks.  The  Managing  Authority  shall  ensure  that 
appropriate provisions are in place to allow the other body to obtain all necessary 
data and information for execution of these tasks. 

Where  a  thematic  sub-programme,  as  referred  to  in  Article  8,  is  included  in  the 
rural development programme, the Managing Authority may designate one or more 
intermediate  bodies,  including  local  authorities,  local  action  groups  or  non-
governmental  organisations,  to  carry  out  the  management  and  implementation  of 
that strategy. Paragraph 2 shall apply in this case. 

The  managing  authority  shall  ensure  that  operations  and  outputs  of  this  thematic 
sub-programme  are  identified  separately  for  the  purposes  of  the  monitoring  and 
evaluation system referred to in Article 74.  

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TITLE VII 
Monitoring and evaluation  

Chapter I 
General provisions 

SECTION 1 
ESTABLISHMENT AND OBJECTIVES OF A MONITORING AND EVALUATION 
SYSTEM 

Article 74 

Monitoring and evaluation system 

In accordance with this Title, a common monitoring and evaluation system shall be drawn 
up in co-operation between the Commission and the Member States and shall be adopted by 
the Commission by means of implementing acts adopted in accordance with the examination 
procedure referred to in Article 91. 

Article 75 

Objectives 

The monitoring and evaluation system shall aim: 

(a) 

(b) 

(c) 

to  demonstrate  the  progress  and  achievements  of  rural  development  policy  and 
assess  the  impact,  effectiveness,  efficiency  and  relevance  of  rural  development 
policy interventions; 

to contribute to better targeted support for rural development; 

to support a common learning process related to monitoring and evaluation. 

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SECTION 2 
TECHNICAL PROVISIONS 

Article 76 

Common indicators 

1. 

2. 

1. 

2. 

A  list  of  common  indicators  relating  to  the  initial  situation  as  well  as  to  the 
financial execution, outputs, results and impact of the programme and applicable to 
each  programme  shall  be  specified  in  the  monitoring  and  evaluation  system 
provided for in Article 74 to allow for aggregation of data at Union level.  

The common indicators shall be linked to the structure and objectives of the rural 
development  policy  framework  and  shall  allow  assessment  of  the  progress, 
efficiency and effectiveness of policy implementation against objectives and targets 
at Union, national and programme level. 

Article 77 

Electronic Information System 

Key  information  on  the  implementation  of  the  programme,  on  each  operation 
selected for funding, as well as on completed operations, needed for monitoring and 
evaluation, including the key characteristics of the beneficiary and the project, shall 
be recorded and maintained electronically. 

The Commission shall ensure that there is an appropriate secure electronic system 
to  record,  maintain  and  manage  key  information  and  report  on  monitoring  and 
evaluation.  

Article 78 

Provision of information 

Beneficiaries  of  support  under  rural  development  measures  and  local  action  groups  shall 
undertake  to  provide  to  the  Managing  Authority  and/or  to  appointed  evaluators  or  other 
bodies delegated to perform functions on its behalf, all the information necessary to permit 
monitoring and evaluation of the programme, in particular in relation to  meeting specified 
objectives and priorities. 

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Chapter II 
Monitoring 

Article 79 

Monitoring procedures 

1. 

2. 

The Managing Authority and the Monitoring Committee referred to in Article 41 of 
Regulation  (EU)  No  [CSF/2012]  shall  monitor  the  quality  of  programme 
implementation. 

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

Article 80 

Monitoring Committee 

Member  States  with  regional  programmes  may  establish  a  national  Monitoring  Committee 
to  coordinate  the  implementation  of  these  programmes  in  relation  to  the  National 
Framework and the uptake of financial resources. 

Article 81 

Responsibilities of the Monitoring Committee 

1. 

The  Monitoring  Committee  shall  satisfy  itself  as  to  the  performance  of  the  rural 
development programme and the effectiveness of its implementation. To that end, 
in addition to the functions referred to in Article 43 of Regulation (EU) No [CSF] 
the Monitoring Committee: 

(a) 

(b) 

(c) 

(d) 

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

shall examine the activities and outputs related to the evaluation plan of the 
programme; 

shall examine actions in the programme relating to the fulfilment of ex ante 
conditionalities; 

shall  participate  in  the  National  Rural  Network  to  exchange  information  on 
programme implementation; 

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(e) 

shall consider and approve the annual implementation reports before they are 
sent to the Commission. 

Article 82 

Annual implementation report 

1. 

2. 

3. 

4. 

5. 

By 31 May 2016 and by 31 May each subsequent year until and including 2023, the 
Member State shall submit to the Commission an annual implementation report on 
implementation of the rural development programme in the previous calendar year. 
The report submitted in 2016 shall cover the calendar years 2014 and 2015. 

In  addition  to  what  is  provided  in  Article  44  of  Regulation  (EU)  No  [CSF/2012] 
annual  implementation  reports  shall  include  information  inter  alia  on  financial 
commitments  and  expenditure  by  measure,  and  a  summary  of  the  activities 
undertaken in relation to the evaluation plan. 

In  addition  to  what  is  provided  in  Article  44  of  Regulation  (EU)  No  [CSF/2012], 
the annual implementation report submitted in 2017 shall also cover a description 
of the implementation of any sub-programmes included within the programme, an 
assessment  of  progress  made  in  ensuring  an  integrated  approach  to  use  of  the 
EAFRD and other EU financial instruments to support the territorial development 
of  rural  areas,  including  through  local  development  strategies,  and  the  findings 
relating  to  the  meeting  of  the  targets  for  each  priority  included  in  the  RD 
programme. 

In  addition  to  what  is  provided  in  Article  44  of  Regulation  (EU)  No  [CSF/2012], 
the annual implementation report submitted in 2019 shall also cover, a description 
of the implementation of any sub-programmes included within the programme and 
an  assessment  of  progress  made  in  ensuring  an  integrated  approach  to  use  of  the 
EAFRD and other EU financial instruments to support the territorial development 
of rural areas, including through local development strategies. 

The Commission shall, by means of implementing acts, adopt rules concerning the 
presentation  of  the  annual  implementation  reports.  Those  implementing  acts  shall 
be adopted in accordance with the examination procedure referred to in Article 91.  

Chapter III 
Evaluation 

Article 83 

General provisions 

1. 

The Commission shall, by means of implementing acts, provide for the elements to 
be contained in the ex ante and ex post evaluations referred to in Articles 48 and 50 
of Regulation (EU) No [CSF/2012] and establish the minimum requirements for the 

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evaluation plan referred to in Article 49 of Regulation (EU) No [CSF/2012]. Those 
implementing acts shall be adopted in accordance with the examination procedure 
referred to in Article 91. 

Member States shall ensure that the evaluations conform to the common evaluation 
approach  agreed  in  accordance  with  Article  74,  shall  organise  the  production  and 
gathering  of  the  requisite  data,  and  shall  supply  the  various  pieces  of  information 
provided by the monitoring system to the evaluators. 

The evaluation reports shall be made available by the Member States on the internet 
and by the Commission on the Union website. 

2. 

3. 

Article 84 

Ex ante evaluation 

Member States shall ensure that the ex ante evaluator is engaged from an early stage in the 
process of development of the rural development programme, including the development of 
the analysis referred to in Article 9(1)(b), the design of the programme’s intervention logic 
and the establishment of the programme’s targets. 

Article 85 

Ex post evaluation 

In  2023,  an  ex  post  evaluation  report  shall  be  prepared  by  the  Member  States  for  each  of 
their rural development programmes. This report shall be submitted to the Commission by 
31 December 2023 at the latest. 

Article 86 

Syntheses of evaluations 

Syntheses at Union level of the ex ante and ex post evaluation reports shall be undertaken 
under the responsibility of the Commission. 

The syntheses of the evaluation reports shall be completed at the latest by 31 December of 
the year following the submission of the relevant evaluations. 

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TITLE VIII 
Competition provisions 

Article 87 

Rules applying to undertakings 

Where  support  under  this  Regulation  is  granted  to  forms  of  co-operation  between 
undertakings,  it  may  be  granted  only  to  such  forms  of  co-operation  between  undertakings 
which comply with the competition rules as they apply by virtue of Articles 143, 144 and 
145 of the Regulation of the European Parliament and the Council (EU) No sCMO/2012. 

Article 88  

State aid 

1. 

2. 

Save as otherwise provided for in this Title, Articles 107, 108 and 109 of the Treaty 
shall apply to support for rural development by Member States. 

Articles  107,  108  and  109  of  the  Treaty  shall  not  apply  to  payments  made  by 
Member States pursuant to, and in conformity with, this Regulation, or to additional 
national  financing  referred  to  in  Article  89,  within  the  scope  of  Article  42  of  the 
Treaty. 

Article 89 

Additional national financing 

Payments made by the Member States in relation to operations falling within the scope of 
Article 42 of the Treaty and intended to provide additional financing for rural development 
for which Union support is granted, shall be notified by Member States and approved by the 
Commission  in  accordance  with  this  Regulation  as  part  of  the  programming  referred  to  in 
Article 7. When assessing these payments, the Commission shall apply, by way of analogy, 
the criteria established for the  application  of Article  107  of the Treaty. The Member State 
concerned shall not put its proposed additional financing for rural development  into  effect 
until it has been approved. 

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TITLE IX 
Commission powers, common provisions and transitional 
and final provisions 

Chapter I 
Commission powers 

Article 90 

Exercise of the delegation 

1. 

2. 

3. 

4. 

5. 

The  power  to  adopt  delegated  acts  is  conferred  on  the  Commission  subject  to  the 
conditions laid down in this Article. 

The power to adopt delegated acts referred to in this Regulation shall be conferred 
on the Commission for an indeterminate period of time from the date of entry into 
force of this Regulation. 

The delegation of power referred to in this Regulation may be revoked at any time 
by  the  European  Parliament  or  by  the  Council.  A  decision  to  revoke  shall  put  an 
end to the delegation of the powers specified in that decision. It shall take effect the 
day following the publication of the decision in the Official Journal of the European 
Union  or  at  a  later  date  specified  therein.  It  shall  not  affect  the  validity  of  any 
delegated acts already in force.  

As soon as it adopts a delegated act, the Commission shall notify it simultaneously 
to the European Parliament and to the Council. 

A delegated act adopted pursuant to this Regulation shall enter into force only if no 
objection  has  been  expressed  either  by  the  European  Parliament  or  the  Council 
within a period of two months of notification of that act to the European Parliament 
and the Council or if, before the expiry of that period, the European Parliament and 
the  Council  have  both  informed  the  Commission  that  they  will  not  object.  That 
period shall be extended by two months at the initiative of the European Parliament 
or of the Council. 

Article 91 

Committee procedure 

1. 

The  Commission  shall  be  assisted  by  a  committee  called  "Rural  Development 
Committee".  That  Committee  shall  be  a  committee  within  the  meaning  of 
Regulation (EU) No 182/2011. 

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2. 

Where  reference  is  made  to  this  paragraph,  Article  5  of  Regulation  (EU)  No 
182/2011 shall apply. 

Chapter II 

Common provisions  

Article 92 

Exchange of information and documents 

The  Commission,  in  collaboration  with  the  Member  States,  shall  establish  an  information 
system to permit the secure exchange of data of common interest between the Commission 
and each Member State. The Commission shall, by means of implementing acts, adopt rules 
for  the  operation  of  that  system.  Those  implementing  acts  shall  be  adopted  in  accordance 
with the examination procedure referred to in Article 91. 

Article 93 

General CAP provisions 

Regulation  (EU)  No HR/2012  and  the  provisions  adopted  pursuant  to  it  shall  apply  in 
relation to the measures set out in this Regulation. 

Chapter III 

Transitional and final provisions 

Article 94 

Repeal 

Regulation (EC) No 1698/2005 is repealed. 

Regulation (EC) No 1698/2005 shall continue to apply to operations implemented pursuant 
to programmes approved by the Commission under that Regulation before 1 January 2014. 

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Article 95 

Transitional provisions 

In  order  to  facilitate  the  transition  from  the  system  established  by  Regulation  (EC)  No 
1698/2005  to  the  system  established  by  this  Regulation,  the  Commission  shall  be 
empowered to adopt delegated acts in accordance with Article 90 concerning the conditions 
under  which  support  approved  by  the  Commission  under  Regulation  (EC)  No  1698/2005 
may  be  integrated  into  support  provided  for  under  this  Regulation,  including  for  technical 
assistance and for the ex-post evaluations. 

Article 96 

Entry into force and application 

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

It shall apply from 1 January 2014. 

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

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

EN 

94 

   EN 

 
ANNEX I 

Amounts and support rates 

Article 

Subject 

16(8) 

17(3) 

Advisory  services, 
management 
and 
relief services 

farm 
farm 

schemes 

Quality 
or 
agricultural  products  and 
foodstuffs 

Maximum 
amount 
EUR or rate 

in 

1.500  

Per advice 

200.000 

Per  three  years  for  the  training  of 
advisors 

3.000  

Per holding per year 

18(3) 

Investment 
assets 

in 

physical 

Agricultural sector 

50% 

75% 

65% 

40% 

Of the amount of eligible investment in 
less developed regions 

Of the amount of eligible investment in 
outermost regions 

Of the amount of eligible investment in 
the smaller Aegean islands 

Of the amount of eligible investment in 
other regions 

The  above  rates  may  be  increased  by 
20%, 
that  maximum 
combined  support  does  not  exceed 
90%, for: 

provided 

- Young farmers setting up 

-  Collective  investments  and  integrated 
projects 

-  Areas  facing  natural  constraints  as 
referred to in Article 33. 

-  Operations 
framework of the EIP 

supported 

in 

the 

Processing  and  marketing  of  Annex  I 

EN 

95 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50% 

75% 

65% 

40% 

19(5) 

80% 

agricultural 
Restoring 
potential 
production 
damaged 
natural 
by 
disasters  and  introduction 
of  appropriate  prevention 
actions 

products 

Of the amount of eligible investment in 
less developed regions 

Of the amount of eligible investment in 
outermost regions 

Of the amount of eligible investment in 
the smaller Aegean islands 

Of the amount of eligible investment in 
other regions 

provided 

The  above  rates  may  be  increased  by 
20%, 
that  maximum 
combined  support  does  not  exceed 
90%,  for  operations  supported  in  the 
framework of the EIP 

Of  the  amount  of  eligible  investment 
costs  for  prevention  operations  carried 
out by individual farmers. 

20(6) 

Farm 
and 
development 

business 

70.000 

Per young farmer under 20(1)(a)(i) 

70.000 

15.000 

Per enterprise under 20(1)(a)(ii) 

Per small farm under 20(1)(a)(iii) 

24(3) 

27(5) 

EN 

Establishment  of 
forestry systems 

agro-

80% 

in 

new 
Investments 
forestry  technologies  and 
in 
and 
processing 
marketing 
forestry 
products 

of 

50% 

75% 

65% 

96 

Of  the  amount  of  eligible  investment 
for  the  establishment  of  agro-forestry 
systems 

Of the amount of eligible investment in 
less developed regions 

Of the amount of eligible investment in 
outermost regions 

Of the amount of eligible investment in 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
40% 

10%, 

10%,  

8%, 

6%,  

4% 

5% 

5% 

4% 

3% 

2% 

100.000 

600(*) 

900(*) 

450(*) 

200(*) 

600(*) 

900(*) 

450(*) 

500(*) 

the smaller Aegean islands 

Of the amount of eligible investment in 
other regions 

For  marketed  production  up  to  EUR  1 
000 000  

As a percentage of marketed production 
during  the  first  five  years  following 
recognition,  for  the  1st,  2nd,  3rd,  4th  and 
5th year respectively. 

For  marketed  production  exceeding 
EUR  1  000  000As  a  percentage  of 
marketed  production  during  the  first 
five years following recognition, for the 
1st, 2nd, 3rd, 4th and 5th year respectively. 

Maximum amount per year in all cases. 

Per ha per year for annual crops 

Per ha per year for specialised perennial 
crops 

Per ha per year for other land uses 

Per Livestock Unit (“LU”) per year for 
local  breeds  in  danger  of  being  lost  to 
farmers 

Per ha per year for annual crops 

Per ha per year for specialised perennial 
crops 

Per ha per year for other land uses 

Per  ha  per year maximum  in the initial 
period not exceeding five years 

28(4) 

Setting  up  of  producer 
groups 

29(8) 

Agri-environment 

30(5) 

Organic farming 

31(7) 

Natura  2000  and  Water 
framework 
directive 
payments 

200(*) 

Per ha per year maximum 

EN 

97 

   EN 

 
 
 
 
 
 
 
 
 
32(3) 

34(3) 

35(3) 

38(5) 

39(5) 

Payments  to  areas  facing 
natural  or  other  specific 
constraints 

50 

25 

250(*) 

300(*) 

Per  ha  per  year  minimum  for  Water 
framework directive payments 

Minimum per ha per year 

Maximum per ha per year  

Maximum  per  ha  per  year  in  mountain 
areas as defined in Article 46(2) 

Animal welfare 

500 

Per LU 

Forest-Environmental 
services 
conservation 

and 

forest 

200(*) 

Per ha per year 

Crop,  animal  and  plant 
insurance 

65% 

Of the insurance premium due 

Mutual fund for animal and 
and 
diseases 
plant 
environmental incidents 

65% 

Of the eligible costs. 

40(5) 

Income stabilisation tool 

65% 

Of the eligible costs 

* These amounts may be increased in exceptional cases taking into account specific circumstances to 
be justified in the rural development programmes. 

EN 

98 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNEX II 

Biophysical criteria for the delimitation of areas facing natural constraints 

CRITERION 

DEFINITION 

THRESHOLD  

CLIMATE 

Low 
Temperature 

Length of Growing Period (number of days) 
defined  by  number  of  days  with  daily 
average temperature > 5°C (LGPt5) OR 

≤ 180 days 

sum 

Thermal-time 
for 
Growing  Period  defined  by  accumulated 
daily average temperature > 5°C. 

(degree-days) 

≤ 1500 degree-days 

Dryness 

Ratio  of  the  annual  precipitation  (P)  to  the 
annual potential evapotranspiration (PET) 

P/PET ≤ 0.5 

CLIMATE AND SOIL 

Excess 
Moisture  

Soil 

SOIL 

Limited 
Drainage 

Soil 

Number of days at or above Field capacity 

≥ 230 days 

Areas  which 
significant duration of the year 

are  water 

logged 

for 

Wet within 80cm from the surface for 
over  6  months,  or  wet  within  40cm 
for over 11 months OR 

Poorly or very poorly drained soil OR 

Gleyic  colour  pattern  within  40cm 
from the surface 

Unfavourable 
Texture 
Stoniness 

and 

Relative  abundance  of  clay,  silt,  sand, 
organic  matter  (weight  %)  and  coarse 
material (volumetric %) fractions  

≥  15%  of  topsoil  volume  is  coarse 
material, 
rock  outcrop, 
boulder OR 

including 

Topsoil  texture  class  of  sand,  loamy 
sand defined as: 

silt% + (2 x clay%) ≤ 30% OR 

Topsoil texture class is heavy clay 

(≥ 60% clay) OR 

Organic soil (organic matter ≥30%) of 
at least 40cm OR 

EN 

99 

   EN 

 
 
 
 
 
 
 
Topsoil  texture  class  of  clay,  silty 
clay, sandy clay and vertic properties 
within 100cm of the soil surface 

Shallow 
Rooting Depth 

Depth  (cm)  from  soil  surface  to  coherent 
hard rock or hard pan. 

≤ 30cm 

Presence  in  topsoil  of  salts,  exchangeable 
sodium, excessive acidity 

Salinity:  ≥  4  deci-Siemens  per  meter 
(dS/m) OR 

Poor  Chemical 
Properties  

TERRAIN  

Steep Slope 

Sodicity:  ≥  6  Exchangeable  Sodium 
Percentage (ESP) OR 

Soil Acidity: pH ≤ 5 (in water) 

Change  of  elevation  with 
planimetric distance (%). 

respect 

to 

≥ 15% 

EN 

100 

   EN 

 
 
ANNEX III 

Indicative list of measures and operations of particular relevance to thematic sub-programmes 
referred to in Article 8 

Young farmers: 

Business start-up aid for young farmers setting up for the first time in an agricultural holding 

Investments in physical assets 

Knowledge transfer and information actions 

Advisory services, farm management and farm relief services 

Co-operation 

Investments in non-agricultural activities 

Small farms: 

Business start-up aid for the development of small farms 

Investments in physical assets 

Quality schemes for agricultural products and foodstuffs 

Knowledge transfer and information actions 

Advisory services, farm management and farm relief services 

Co-operation 

Investments in non-agricultural activities 

Setting up of producer groups 

Leader  

Mountain areas: 

- Payments to areas facing natural or other specific constraints 

- Agri-environment operations 

- Co-operation 

- Investments in physical assets 

EN 

101 

   EN 

 
 
 
- Farm and business development in rural areas 

- Quality schemes for agricultural products and foodstuffs 

- Establishment of agro-forestry systems 

Basic services and village renewal in rural areas 

Knowledge transfer and information actions 

Advisory services, farm management and farm relief services 

Setting up of producer groups 

Leader  

Short supply chains: 

Co-operation 

Setting up of producer groups 

Leader  

Quality schemes for agricultural products and foodstuffs 

Basic services and village renewal in rural areas 

Investments in physical assets 

Knowledge transfer and information actions 

Advisory services, farm management and farm relief services 

EN 

102 

   EN 

 
ANNEX IV 

Ex ante conditionalities for rural development 

1. PRIORITIES-LINKED CONDITIONALITIES 

EU priority for RD / CSF 
Thematic Objective (TO) 

Ex ante conditionality 

Criteria for fulfilment 

priority 

RD 
knowledge 
innovation 
forestry, and rural areas  

1: 
transfer 
in 

fostering 
and 
agriculture, 

TO  1: 
research, 
strengthening 
technological  development  and 
innovation 

1.1.  Research  and  innovation:  The  existence  of  a  national 
and/or  regional  innovation  strategy  for  smart  specialisation  in 
line with the National Reform Program, to leverage private R&I 
the  features  of  well-
expenditure,  which  complies  with 
innovation 
performing  national  or  regional  research  and 
systems38. 

– A  national  and/or 

regional 

innovation  strategy 

for  smart 

specialisation is in place that: 

–  is based on a SWOT analysis to concentrate resources on a 

limited set of R&I priorities; 

–  outlines measures to stimulate private RTD investment; 
–  contains a monitoring and review system. 

– A  Member  State  has  adopted  a  framework  outlining  available 

budgetary resources for R&D; 

– A Member State has adopted a multi-annual plan for budgeting and 

prioritization of investments linked to EU priorities (ESFRI). 

1.2.  Advisory  capacity:  sufficient  advisory  capacity  to  ensure 
advice on the regulatory requirements and all aspects linked with 
sustainable  management  and  climate  action  in  agriculture  and 
forestry 

– A  description  of  the  structure  of  extension/advisory  systems  at  the 
relevant  geographical  scale  (national/regional)  -  including  their 
intended  role  under  the  scope  of  RD  priority  –  which  demonstrates 
the  fulfilment  of  ex-ante  conditionality  1.2  is  included  in  the 
programme,  

38 

EN 

Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European  Economic  and  Social  Committee  and  the Committee  of  the  Regions: 
Europe  2020  Flagship  Initiative  Innovation  Union  (COM(2010)  546  final  of  6.10.2010).  Conclusions  of  the  Competitiveness  Council:  Conclusions  on  Innovation 
Union for Europe (doc. 17165/10 of 26.11.2010). 

103 

EN

 
  
 
 
 
 
 
 
 
 
 
                                                 
2: 

priority 

RD 
enhancing 
competitiveness  of  all  types  of 
agriculture  and  enhancing  farm 
viability 

enhancing 

TO 
3: 
competitiveness  of 
medium-sized enterprises 

the 
small  and 

2-3.1.  Business  set-up:  Specific  actions  have  been  carried  out 
for  the  effective  implementation  of  the  Small  Business  Act 
(SBA)  and  its  Review  of  23  February  201139  including  the 
"Think Small First" principle 

– The specific actions include: 

–  measures to reduce the time to set-up business to 3 working 

days and the cost to €100;  

–  measures  to  reduce  the  time  needed  to  get  licenses  and 
permits  to  take  up  and  perform  the  specific  activity  of  an 
enterprise to 3 months; 

–  a  mechanism  for  systematic  assessment  of  the  impact  of 
legislation on SMEs using an "SME test" while taking into 
account differences in the size of enterprises, where relevant  

RD  priority  3:  promoting  food 
chain  organisation  and  risk 
management in agriculture 

enhancing 

TO 
3: 
competitiveness  of 
medium-sized enterprises 

the 
small  and 

39 

EN 

Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European  Economic  and  Social  Committee  and  the Committee  of  the  Regions: 
Think  Small  First  -  A  Small  Business  Act  for  Europe  (COM(2008)  394  of  23.6.2008);  Conclusions  of  the  Competitiveness  Council:  Think  Small  First  –  A  Small 
Business  Act  for  Europe  (doc.  16788/08,  1.12.2008);  Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  Economic  and  Social 
Committee and the Committee of the Regions: Review of the "Small Business Act" for Europe (COM(2008) 78 final, 23.2.2011); Conclusions of the Competitiveness 
Council: Conclusions on the Review of the "Small Business Act" for Europe (doc. 10975/11 of 30.5.2011). 

104 

EN

 
  
 
 
 
 
                                                 
4: 

priority 

RD 
preserving 
ecosystems 
agriculture and forestry 

and 
dependant 

restoring, 
enhancing 
on 

4.1  Good  Agricultural  and  Environmental  Conditions 
(GAEC):  standards  for  good  agricultural  and  environmental 
condition  of  land  referred  to  in  Chapter  I  of  Title  VI  of 
Regulation (EU) HR/xxxx are established at national level  

–  GAEC  standards  are  defined  in  national  law  and  specified  in  the 

programmes; 

TO  5:  promoting  climate  change 
adaptation,  risk  prevention  and 
management 

4.2  Minimum  requirements 
fertilisers  and  plant 
protection  products:  minimum  requirements  for  fertilisers  and 
plant  protection  products  referred  to  in  article  29  Chapter  I  of 
Title III of this Regulation are defined at national level 

for 

– minimum  requirements  for  fertilisers  and  plant  protection  products 
referred to in Chapter I of Title III of this Regulation are specified in 
the programmes; 

TO  6:  protecting  the  environment 
and 
resource 
efficiency 

promoting 

the 

4.3  other  relevant  national  standards:  relevant  mandatory 
national  standards  are  defined  for  the  purpose  of  article  29 
Chapter I of Title III of this Regulation 

– relevant  mandatory  national  standards  are  specified 

in 

the 

programmes; 

4.4. Risk prevention: the existence of national risk assessments 
for  disaster  management.  taking  into  account  climate  change 
adaptation40 

– A national risk assessment shall be in place that includes: 

–  A  description  of  the  process,  methodology,  methods  and 

non-sensitive data used for national risk assessment; 

–  Adoption  of  qualitative  and  quantitative  methods  for  risk 

assessment; 

–  Taking  into  account,  where  appropriate,  national  climate 

change adaptation strategies,  

40 

EN 

Conclusions of the Justice and Home Affairs Council; Conclusion on further developing risk assessments for disaster management in the European Union. 11-12 April 
2011. 

105 

EN

 
  
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
5.1  GHG  emissions:  compliance  with  Article  6(1)  of  Decision 
No 406/2009/EC of the European Parliament and of the Council 
of 23 April 2009 on the effort of Member States to reduce their 
greenhouse gas emissions to meet the Community’s greenhouse 
gas emission reduction commitments up to 202041 

– A  Member  State  has  submitted  to  the  Commission  a  report  on 
adopted  national  policies  and  measures  to  pursuant  to  Article  3  of 
Decision No 406/2009/EC in 2013-2020; 

5.2  Energy  efficiency:  transposition  into  national  law  of 
Directive  2006/32/EC  of  the  European  Parliament  and  of  the 
Council of 5 April 2006 on energy end-use efficiency and energy 
services42 

– A  Member  State  has  submitted  to  the  Commission  a  Energy 
Efficiency Action Plan which translate energy saving objectives into 
concrete  and  coherent  measures  in  accordance  with  article  14  of 
Directive 2006/32/EC; 

5.3 Water pricing: the existence of a water pricing policy which 
ensures  an  adequate  contribution  of  the  different  water  uses  to 
the  recovery  of  the  costs  of  water  services,  in  accordance  with 
Article  9  of  Directive  2000/60/EC  of  the  European  Parliament 
and of the Council of 23 October 2000 establishing a framework 
for Community action in the field of water policy43 . 

– A Member State has taken account of the principle of recovery of the 
costs  of  water  services,  including  environmental  and  resource  costs 
in accordance with Article 9(1) of Directive 2000/60/EC; 

– A Member State has carried out an economic analysis in accordance 
with  Article  5  and  Annex  III  to  Directive  2000/60/ECregarding 
volume,  price  and  cost  of  water  services,  and  estimates  of  relevant 
investments; 

– A Member State has ensured contribution of the different water uses 
by sector in accordance with Article 9(3) of Directive 2000/60/EC 

5.4.  Waste  management  plans:  transposition  into national  law 
of Directive 2008/98/EC of the European Parliament and of the 
Council  of  19  November  2008  on  waste  and  repealing  certain 
Directives44, in particular the development of waste management 
plans in accordance with the Directive. 

– A Member State has ensured that its competent authorities establish, 
in accordance with Articles 1, 4, 13 and 16 of Directive 2008/98/EC, 
one  or  more  waste  management  plans  as  required  by  Article  28  of 
the Directive; 

– A Member State has adopted a national renewable energy action plan 

priority 

5: 
efficiency 

promoting 
RD 
resource 
and 
supporting  the  shift  towards  a 
low  carbon  and  climate  resilient 
economy  in  the  agriculture  and 
food  sectors  and  the  forestry 
sector 

TO 4: supporting the shift towards 
a 
in  all 
sectors 

low-carbon  economy 

TO  5:  promoting  climate  change 
adaptation,  risk  prevention  and 
management 

41 
42 
43 
44 
45 

OJ L 140, 5.6.2009, p. 136. 
OJ L 48, 23.2.2011, p. 1 
OJ L 327, 22.12.2000, p. 1. 
OJ L 312, 22.11.2008, p. 3. 
OJ L 140, 5.6.2009, p. 16. 

EN 

106 

EN

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
5.5  Renewable  energy:  Transposition  into  national  law  of 
Directive  2009/28/EC  of  the  European  Parliament  and  of  the 
Council of 23 April 2009 on the promotion of the use of energy 
from  renewable  sources  and  amending  and  subsequently 
repealing Directives 2001/77/EC and 2003/30/EC45 

6.1  Access  to  EAFRD:  The  provision  of  support  for  relevant 
stakeholders in accessing the EAFRD 

6.2  Self-employment, 
entrepreneurship  and  business 
creation:  the  existence  of  a  comprehensive  and  inclusive 
strategy  for  inclusive  start-up  support  in  accordance  with  the 
Small  Business  Act46  and  in  coherence  with  employment 
guideline 7, regarding the enabling conditions for job creation 

RD  priority  6:  promoting  social 
inclusion  poverty  reduction  and 
economic  development  in  rural 
areas 

TO  8:  promoting  employment  and 
supporting labour mobility 

TO  9:  promoting  social  inclusion 
and combating poverty 

6.3 NGA Infrastructure (Next Generation Access Networks): 
The  existence  of  national  NGA  Plans  which  take  account  of 
regional  actions  in  order  to  reach  the  EU  high-speed  Internet 
access  targets47,  focusing  on  areas  where  the  market  fails  to 
provide  an  open  infrastructure  at  an  affordable  cost  and  to  an 
adequate quality 

in accordance with Article 4 of Directive 2009/28/EC 

–  Relevant  stakeholders  are  provided  support  for  submitting  project 
applications  and  for  implementing  and  managing  the  selected 
projects 

– Member States have a comprehensive and inclusive strategy in place 

which will include: 

–  measures to significantly reduce the time and cost to set-up 

business in accordance with the Small Business Act;  

–  measures  to  reduce  the  time  needed  to  get  licenses  and 
permits  to  take  up  and  perform  the  specific  activity  of  an 
enterprise  business  in  accordance  with  the  Small  Business 
Act; 

–  actions  linking  suitable  business  development  services  and 
financial services (access to capital), including the outreach 
to disadvantaged groups and areas 

– A national NGA Plan is in place that contains: 

–  a  plan  of 

infrastructure 

through  demand 
aggregation  and  a  mapping  of  infrastructure  and  services, 
regularly updated; 

investments 

–  sustainable investment models that enhance competition and 
provide access to open, affordable, quality and future proof 
infrastructure and services;  

–  measures to stimulate private investment.  

46 
47 

EN 

Reference to be included 
Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: A 
Digital  Agenda  for  Europe  (COM(2010)  245  final/2  of  26.8.2010);  Commission  Staff  Working  Paper:  Digital  Agenda  Scoreboard  (SEC(2011)  708  of  31.5.2011). 
Scoreboard: http://ec.europa.eu/information_society/digital-agenda/scoreboard/index_en.htm 

107 

EN

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
2. HORIZONTAL CONDITIONALITIES APPLYING TO SEVERAL PRIORITIES 

HC.1  Member  States  administrative  efficiency:  the  existence 
of  a  strategy  for  reinforcing  the  country's  administrative 
efficiency including public administration reform48  

– A strategy for reinforcing a Member States' administrative efficiency 
is  in  place  and  in  the  process  of  being  implemented49;  the  strategy 
includes: 

–  an  analysis  and  strategic  planning  of  legal,  organisational 

and/or procedural reform actions; 

–  the development of quality management systems;  
–  integrated  actions  for  simplification  and  rationalisation  of 

administrative procedures; 

–  the development of skills at all levels; 
–  the development of procedures and tools for monitoring and 

evaluation; 

HC.2  Human  resources  allocation:  sufficient  capacity  in 
human  resources  allocation,  training  management  and  IT 
systems  is  available  within  the  bodies  responsible  for  the 
management  and 
rural  development 
implementation  of 
programmes 

– A  description  of  human  resources  allocation,  training  management 
and IT systems within the Managing Authorities of the programme, 
which demonstrates the fulfilment of ex –ante conditionality HC.2 is 
included in the programme 

HC. 3 Selection  criteria:  an appropriate approach laying down 
principles  with  regard  to  the  setting  of  selection  criteria  for 
projects and local development is defined 

– A  description  of  the  chosen  approach  to  the  setting  of  selection 
criteria  for  projects  and  local  development,  which  demonstrates  the 
fulfilment  of  ex–ante  conditionality  HC.3  is  included  in  the 
programme  

48 

49 

EN 

If a Country Specific Council Recommendation is in place, directly linked to this conditionality provision, then the assessment of its fulfilment will take account of the 
assessment of progress made on the fulfilment of the Country Specific Council Recommendation. 
Deadlines for delivery on all elements here contained where it concerns the implementation of the strategy may be set during the programme implementation period. 

108 

EN

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Indicative list of measures with relevance to one or more Union priorities for rural development  

ANNEX V 

Measures of particular relevance to several Union priorities 

Article 16   Advisory services, farm management and farm relief services 

Article 18   Investments in physical assets   

Article 20   Farm and business development  

Article 36   Co-operation 

Article 42 – 45 LEADER 

Measures of particular relevance to fostering knowledge transfer and innovation in agriculture, 
forestry, and rural areas 

Article 15   Knowledge transfer and information actions 

Article 27   Investments in new forestry technologies and in processing and marketing of forestry 
products  

Measures of particular relevance for enhancing competitiveness of all types of agriculture and 
enhancing farm viability 

Article 17   Quality schemes for agricultural products and foodstuffs 

Article 32 -33   Payments to areas facing natural or other specific constraints 

Measures of particular relevance to promoting food chain organisation and risk management in 
agriculture 

Article 19   Restoring agricultural production potential damaged by natural disasters and catastrophic 
events and introduction of appropriate prevention actions 

EN 

109 

   EN 

 
 
 
 
 
 
 
 
Article 25   Prevention and restoration of damage to forests from forest fires and natural disasters and 
catastrophic events 

Article 28   Setting up of producer groups 

Article 34   Animal welfare  

Article 37   Risk management  

Article 38   Crop, animal, and plant insurance 

Article 39   Mutual funds for animal and plant diseases and environmental incidents 

Article 40   Income stabilisation tool 

Measure of particular relevance to restoring, preserving and enhancing ecosystems dependent on 
agriculture and forestry 

and 

Promoting resource efficiency and supporting the shift towards a low carbon and climate 
resilient economy in agriculture, food and forestry sectors 

Article 22   Investments in forest area development and improvement of the viability of forests 

Article 23   Afforestation and creation of woodland 

Article 24   Establishment of agro-forestry systems 

Article 26   Investments improving the resilience and environmental value of forest ecosystems 

Article 29   Agri-environment- climate 

Article 30   Organic farming 

Article 31   Natura 2000 and Water framework directive payments 

Article 35   Forest-environmental and climate services and forest conservation 

Measure of particular relevance to promoting social inclusion, poverty reduction and economic 
development in rural areas 

Article 21   Basic services and village renewal in rural areas 

Article 42 – 45 LEADER 

EN 

110 

   EN 

 
 
 
 
LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative  

- 
Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  establishing 
rules  for  direct  payments  to  farmers  under  support  schemes  within  the  framework  of  the 
common agricultural policy; 

Proposal for a Regulation of the European Parliament and of the Council establishing a 

- 
common organisation of the markets in agricultural products (Single CMO Regulation); 

Proposal for a Regulation of the European Parliament and of the Council on support for 

- 
rural development by the European Agricultural Fund for Rural Development (EAFRD); 

Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  on  the 

- 
financing, management and monitoring of the common agricultural policy;  

- 
Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  amending 
Council Regulation (EC) No 73/2009 as regards the application of direct payments to farmers 
in respect of the year 2013; 

Proposal  for  a  Council  Regulation  determining  measures  on  fixing  certain  aids  and 

- 
refunds related to the common organisation of the markets in agricultural products; 

- 
Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  amending 
Council Regulation (EC) No 1234/2007 as regards the regime of the single payment scheme 
and support to vine-growers. 

1.2. 

Policy area(s) concerned in the ABM/ABB structure50  

Policy Area Title 05 of Heading 2 

1.3. 

Nature of the proposal/initiative (Legislative framework for the CAP post 2013) 

x The proposal/initiative relates to a new action  

(cid:133) The proposal/initiative relates to a new action following a pilot project/preparatory action51  

x The proposal/initiative relates to the extension of an existing action  

x The proposal/initiative relates to an action redirected towards a new action  

50 
51 

ABM: Activity-Based Management – ABB: Activity-Based Budgeting. 
As referred to in Article 49(6)(a) or (b) of the Financial Regulation. 

EN 

111 

   EN 

 
                                                 
1.4. 

Objectives 

1.4.1.  The Commission's multiannual strategic objective(s) targeted by the proposal/initiative  

In order to promote resource efficiency with a view to smart, sustainable and inclusive growth 
for EU agriculture and rural development in line with the Europe 2020 Strategy, the objectives 
of the CAP are: 

- Viable food production; 

- Sustainable management of natural resources and climate action; 

- Balanced territorial development. 

1.4.2. 

Specific objective(s) and ABM/ABB activity(ies) concerned 

Specific objectives for Policy area 05: 

Specific objective No 1:  

To provide environmental public goods 

Specific objective No 2:  

To compensate for production difficulties in areas with specific natural constraints 

Specific objective No 3:  

To pursue climate change mitigation and adaptation actions 

Specific objective No 4:  

To manage the EU budget (CAP) in accordance with high standards of financial management 

Specific objective for ABB 05 02 - Interventions in agricultural markets:  

Specific objective No 5:  

To improve  the competitiveness of the  agricultural sector and enhance its value share in the 
food chain 

Specific objective for ABB 05 03 - Direct aids: 

Specific objective No 6: 

To contribute to farm incomes and limit farm income variability 

EN 

112 

   EN 

 
 
 
Specific objectives for ABB 05 04 – Rural development: 

Specific objective No 7  

To foster green growth through innovation 

Specific objective No 8:  

To support rural employment and maintain the social fabric of rural areas 

Specific objective No 9  

To improve the rural economy and promote diversification 

Specific objective No 10  

To allow for structural diversity in farming systems 

1.4.3.  Expected result(s) and impact 

It  is  not  possible  to  set  quantitative  targets  for  impact  indicators  at  this  stage.  Although  the 
policy can steer in a certain direction, the broad economic, environmental and social outcomes 
measured  by  such  indicators  would  ultimately  also  depend  on  the  impact  from  a  range  of 
external factors, which recent experience indicates have become significant and unpredictable. 
Further analysis is on-going, to be ready for the period post-2013. 

As regards the direct payments, Member States will have the possibility to decide, to a limited 
degree, on the implementation of certain components of the direct payment schemes. 

For rural development, the expected results and impact will depend on the rural development 
programmes that Member States will submit to the Commission. Member States will be asked 
to set targets in their programmes.  

1.4.4. 

Indicators of results and impact  

The  proposals  provide  for  the  establishment  of  a  common  monitoring  and  evaluation 
framework  with  a  view  to  measuring  the  performance  of  the  Common  Agricultural  Policy. 
That framework shall include all instruments related to the monitoring and evaluation of CAP 
measures  and  in  particular  of  the  direct  payments,  market  measures,  rural  development 
measures and of the application of cross compliance. 

The impact of these CAP measures shall be measured in relation to the following objectives: 

(a) 

(b) 

viable  food  production,  with  a  focus  on  agricultural  income,  agricultural  productivity 
and price stability; 

sustainable  management  of  natural  resources  and  climate  action,  with  a  focus  on 
greenhouse gas emissions, biodiversity, soil and water; 

EN 

113 

   EN 

 
 
(c) 

balanced territorial development, with a focus on rural employment, growth and poverty 
in rural areas. 

By means of implementing acts, the Commission shall define the set of indicators specific to 
these objectives and areas. 

Moreover,  as  regards  rural  development,  a  reinforced  common  monitoring  and  evaluation 
system  is  proposed.  That  system  aims  (a)  to  demonstrate  the  progress  and  achievements  of 
rural  development  policy  and  assess  the  impact,  effectiveness,  efficiency  and  relevance  of 
rural development policy interventions, (b) to  contribute  to  better  targeted  support  for  rural 
development,  and  (c)  to  support  a  common  learning  process  related  to  monitoring  and 
evaluation. The Commission will establish, by means of implementing act, a list of common 
indicators linked to the policy priorities. 

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term  

In order to meet the multi-annual strategic objectives of the CAP which are a direct translation 
of the Europe 2020 strategy for European rural areas and to fulfil the relevant requirements of 
the  Treaty,  the  proposals  aim  to  lay  down  the  legislative  framework  for  the  Common 
Agricultural Policy for the period after 2013. 

1.5.2.  Added value of EU involvement 

The future CAP will not only be a policy that caters for a small, albeit essential, part of the EU 
economy,  but  also  a  policy  of  strategic  importance  for  food  security,  the  environment  and 
territorial balance. Thus, the CAP, as a truly common policy, makes the most efficient use of 
limited  budgetary  resources  in  maintaining  a  sustainable  agriculture  throughout  the  EU, 
addressing  important  cross-border  issues  such  as  climate  change  and  reinforcing  solidarity 
among Member States. 

As mentioned in the Commission communication "A Budget for Europe 2020"52, the CAP is a 
genuinely European policy. Instead of operating 27 separate agricultural policies and budgets, 
Member  States  pool  resources  to  operate  a  single  European  policy  with  a  single  European 
budget.  This  naturally  means  that  the  CAP  accounts  for  a  significant  proportion  of  the  EU 
budget. However, this approach is both more efficient and economical than an uncoordinated 
national approach. 

1.5.3.  Lessons learned from similar experiences in the past 

On the basis of the evaluation of the current policy framework, an extensive consultation with 
stakeholders  as  well  as  an  analysis  of  future  challenges  and  needs,  a  comprehensive  impact 
assessment has been carried out. More details can be found in the impact assessment and the 
explanatory memorandum that are accompanying the legal proposals. 

52 

COM(2011)500 final of 29 June 2011. 

EN 

114 

   EN 

 
                                                 
1.5.4.  Coherence and possible synergy with other relevant instruments 

The legislative proposals concerned by this financial statement should be seen in the broader 
context of the proposal for a single framework regulation with common rules for the common 
strategic  framework  funds  (EAFRD,  ERDF,  ESF,  Cohesion  Fund  and  EMFF).  That 
framework regulation will make an important contribution to reducing administrative burden, 
to  spending  EU  funds  in  an  effective  way,  and  to  put  simplification  into  practice.  This  also 
underpins  the  new  concepts  of  the  common  strategic  framework  for  all  these  funds  and  the 
upcoming Partnership Contracts which will also cover these funds. 

The common strategic framework, which will be established, will translate the objectives and 
priorities of the Europe 2020 Strategy into priorities for the EAFRD together with the ERDF, 
ESF, Cohesion Fund and EMFF, which will ensure an integrated use of the funds to deliver 
common objectives.  

The  common  strategic  framework  will  also  set  out  coordination  mechanisms  with  other 
relevant Union policies and instruments. 

Moreover, as regards the CAP, significant synergies and simplification effects will be obtained 
by  harmonising  and  aligning  the  management  and  control  rules  for  the  first  (EAGF)  and 
second  (EAFRD)  pillar  of  the  CAP.  The  strong  link  between  the  EAGF  and  the  EAFRD 
should be maintained and the structures already in place in the Member States be sustained. 

1.6. 

Duration and financial impact  

x  Proposal/initiative  of  limited  duration  (for  the  draft  regulations  on  direct  payment 
schemes, rural development and transitional regulations) 

–  x  Proposal/initiative in effect from 01/01/2014 to 31/12/2020  

–  x  Financial impact for the period of the next multi-annual financial framework. For rural 

development, impact on payments to 2023. 

x  Proposal/initiative  of  unlimited  duration  (for  the  draft  regulation  on  the  single  CMO 
and the horizontal regulation) 

–  Implementation from 2014. 

1.7.  Management mode(s) envisaged53  

x Centralised direct management by the Commission  

(cid:133) Centralised indirect management with the delegation of implementation tasks to: 

–  (cid:133)  executive agencies  

–  (cid:133)  bodies set up by the Communities54  

53 

Details  of  management  modes  and  references  to  the  Financial  Regulation  may  be  found  on  the  BudgWeb  site: 
http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html 

EN 

115 

   EN 

 
                                                 
–  (cid:133)  national public-sector bodies/bodies with public-service mission  

–  (cid:133)  persons entrusted with the implementation of specific actions pursuant to Title V of the 
Treaty  on  European  Union  and  identified  in  the  relevant  basic  act  within  the  meaning  of 
Article 49 of the Financial Regulation  

x Shared management with the Member States  

(cid:133) Decentralised management with third countries  

(cid:133) Joint management with international organisations (to be specified) 

Comments  

No substantive change compared to the present situation, i.e. the bulk of expenditure concerned by the 
legislative  proposals  on  the  CAP  reform  will  be  managed  by  shared  management  with  the  Member 
States.  However,  a  very  minor  part  will  continue  to  fall  under  centralised  direct  management  by  the 
Commission. 

54 

As referred to in Article 185 of the Financial Regulation. 

EN 

116 

   EN 

 
                                                                                                                                                                        
2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

In terms of monitoring and evaluation of the CAP, the Commission will present a report to the 
European Parliament and the Council every 4 years, with the first report to be presented not 
later than end 2017. 

This  is  complemented  by  specific  provisions  in  all  areas  of  the  CAP,  with  various 
comprehensive  reporting  and  notifications  requirements  to  be  specified  in  the  implementing 
rules.  

As  regards  rural  development,  rules  are  also  provided  for  monitoring  at  programme  level, 
which will be aligned with the other funds, and which will be coupled with ex ante, on-going 
and ex post evaluations. 

2.2.  Management and control system  

2.2.1.  Risk(s) identified  

There are more than seven million beneficiaries of the CAP, receiving support under a large 
variety  of  different  aid  schemes,  each  of  which  having  detailed  and  sometimes  complex 
eligibility criteria. 

The reduction in the error rate in the domain of the common agricultural policy can already be 
considered  as  a  trend.  Thus,  most  recently  an  error  rate  close  to  2%  confirms  the  overall 
positive  assessment  of  previous  years.  It  is  the  intention  to  continue  the  efforts  in  order  to 
achieve an error rate below 2%. 

2.2.2.  Control method(s) envisaged  

The  legislative  package,  in  particular  the  proposal  for  the  regulation  on  the  financing, 
management  and  monitoring  of  the  common  agricultural  policy,  envisages  maintaining  and 
reinforcing the current system established by Regulation (EC) No 1290/2005. It provides for a 
compulsory administrative structure at Member State level, centred around accredited paying 
agencies,  which  are  responsible  for  carrying  out  controls  at  final  beneficiary  level  in 
accordance  with  the  principles  set  out  under  point  2.3.  Every  year,  the  head  of  each  paying 
agency  is  required  to  provide  a  statement  of  assurance  which  covers  the  completeness, 
accuracy and veracity of the accounts, the proper functioning of the internal control systems 
and  the  legality  and  regularity  of  the  underlying  transactions.  An  independent  audit  body  is 
required to provide an opinion on all these three elements. 

The Commission will continue to audit agricultural expenditure, using a risk-based approach 
in order to ensure that its audits are targeted to the areas of highest risk. Where these audits 
reveal that expenditure has been incurred in breach of Union rules, it will exclude the amounts 
concerned from Union financing under the conformity clearance system. 

EN 

117 

   EN 

 
As  regards  the  cost  of  controls,  a  detailed  analysis  is  provided  in  annex  8  to  the  impact 
assessment accompanying the legislative proposals. 

2.3.  Measures to prevent fraud and irregularities  

The  legislative  package,  in  particular  the  proposal  for  the  regulation  on  the  financing, 
management  and  monitoring  of  the  common  agricultural  policy,  envisages  maintaining  and 
reinforcing the current detailed systems for controls and penalties to be applied by the paying 
agencies, with common basis features and special rules tailored to the specificities of each aid 
regime. The systems generally provide for exhaustive administrative controls of 100% of the 
aid  applications,  cross-checks  with  other  databases  where  this  is  considered  appropriate  as 
well as pre-payment on-the-spot checks of a minimum number of transactions, depending on 
the  risk  associated  with  the  regime  in  question.  If  these  on-the-spot  checks  reveal  a  high 
number of irregularities, additional checks must be carried out. In this context, the by far most 
important  system  is  the  Integrated  Administration  and  Control  System  (IACS),  which  in 
financial  year  2010  covered  around  80%  of  total  expenditure  under  the  EAGF  and  the 
EAFRD. For Member States with properly functioning control systems and low error rates, the 
Commission will be empowered to allow for a reduction of the number of on-the-spot checks. 

The  package  further  envisages  that  Member  States  shall  prevent,  detect  and  correct 
irregularities and fraud, impose effective, dissuasive and proportionate penalties as laid down 
in  Union  legislation  or  national  law,  and  recover  any  irregular  payments  plus  interests.  It 
includes  an  automatic  clearance  mechanism  for  irregularity  cases,  which  provides  that  if 
recovery has not taken place within four years of the date of the recovery request, or within 
eight years in the case of legal proceedings, the amounts not recovered shall be borne by the 
Member  State  concerned.  This  mechanism  will  be  a  strong  incentive  for  Member  States  to 
recover irregular payments as quickly as possible.  

EN 

118 

   EN 

 
3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

The  amounts  indicated  in  this  financial  statement  are  expressed  in  current  prices  and  in 
commitments. 

In  addition  to  the  changes  resulting  from  the  legislative  proposals  as  listed  in  the 
accompanying  tables  below,  the  legislative  proposals  imply  further  changes  which  have  no 
financial impact. 

For any of the years in the period 2014-2020, the application of financial discipline cannot be 
excluded at this stage. However, this will not depend on the reform proposals as such, but on 
other  factors,  such  as  the  execution  of  direct  aids  or  future  developments  in  the  agricultural 
markets. 

As concerns direct aids, the extended  net ceilings for 2014 (calendar year 2013)  included in 
the proposal regarding transition are higher than the amounts allocated to direct aids indicated 
in the accompanying tables. The purpose of this extension is to ensure a continuation of the 
existing  legislation  in  a  scenario  in  which  all  the  other  elements  would  remain  unchanged, 
without prejudice to the possible need for applying the financial discipline mechanism.  

The  reform  proposals  contain  provisions  giving  Member  States  a  set  degree  of  flexibility  in 
relation  to  their  allocation  of  direct  aids  respectively  rural  development.  In  case  Member 
States  decide  to  use  that  flexibility,  this  will  have  financial  consequences  within  the  given 
financial amounts, which cannot be quantified at this stage.  

This  financial  statement  does  not  take  into  account  the  possible  use  of  the  crises  reserve.  It 
should  be  underlined  that  the  amounts  taken  into  account  for  market-related  expenditure  are 
based  on  no  public  intervention  buying-in  and  other  measures  related  to  a  crisis  situation  in 
any sectors. 

3.1. 

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget  line(s) 
affected  

EN 

119 

   EN 

 
Table 1: Amounts for the CAP including complementary amounts foreseen in the MFF proposals and the CAP reform proposals 

Budget year 

2013 

2013 
adjusted 
(1)

2014 

2015 

2016 

2017 

2018 

2019 

2020 

TOTAL 
2014-2020 

In million EUR (current prices) 

Inside MFF 

Heading 2 

Direct aids and market-related expenditure (2) (3) (4)
Estimated assigned revenue 
P1 Direct aids and market-related expenditure (with 
assigned revenue) 
P2 Rural development (4)
Total 

   Heading 1 

CSF Agricultural research and innovation 
Most deprived persons
Total 

44 939
672
45 611 

14 817
60 428

N.A.
N.A.
N.A.

45 304
672
45 976 

14 451
60 428

N.A.
N.A.
N.A.

44 830
672
45 502 

14 451
59 953

682
379
1 061

45 054
672
45 726 

14 451
60 177

696
387
1 082

45 299
672
45 971 

14 451
60 423

710
394
1 104

45 519
672
46 191 

14 451
60 642

724
402
1 126

45 508
672
46 180 

14 451
60 631

738
410
1 149

45 497
672
46 169 

14 451
60 620

753
418
1 172

45 485 
672 
46 157 

14 451 
60 608 

768 
427 
1 195 

317 193 
4 704 
321 897 

101 157 
423 054 

5 072 
2 818 
7 889 

   Heading 3 

Food safety 

Outside MFF 

N.A.

N.A.

350

350

350

350

350

350

350 

2 450 

   Reserve for agricultural crises

   European Globalisation Fund (EGF) 

N.A.

N.A.

Of which maximum available for agriculture: (5)

N.A.

N.A.

531

379

541

387

552

394

563

402

574

410

586

418

598 

427 

3 945 

2 818 

TOTAL 

TOTAL  Commission  proposals  (MFF  +  outside  MFF)  + 
assigned revenue 

TOTAL  MFF  proposals  (i.e.  excluding  Reserve  and  EGF)  + 
assigned revenue 

60 428 

60 428 

62 274 

62 537 

62  823 

63 084 

63 114 

63 146 

63 177 

440 156 

60 428 

60 428 

61 364 

61 609 

61 877 

62 119 

62 130 

62 141 

62 153 

433 393 

EN 

120 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
Notes: 

(1) 

(2) 

(3) 

(4) 

(5) 

Taking into account legislative changes already agreed, i.e. voluntary modulation for the UK and Article 136 "unspent amounts" will cease to apply by the end of 2013. 

The  amounts  relate  to  the  proposed  annual  ceiling  for  the  first  pillar.  However,  it  should  also  be  noted  that  it  is  proposed  to  move  negative  expenditure  from  accounting  clearance 
(currently under budget item 05 07 01 06) to assigned revenue (under item 67 03). For details, see estimated revenue table on the page below.  

The 2013 figures include the amounts for veterinary and phytosanitary measures as well as market measures for the fisheries sector. 

The amounts in the table above are in line with those in the Commission communication "A Budget for Europe 2020" (COM(2011)500 final of 29 June 2011). However, it remains to be 
decided if the MFF will reflect the transfer that is proposed for the envelope of one Member State of the cotton national restructuring programme to rural development as from 2014, 
implying  an  adjustment  (4  million  EUR  per  year)  of  the  amounts  for  respectively  the  EAGF  sub-ceiling  and  for  pillar  2.  In  the  tables  in  the  sections  below,  the  amounts  have  been 
transferred, irrespective of them being reflected in the MFF. 

In accordance with the Commission communication "A Budget for Europe 2020" (COM(2011)500 final), a total amount of up to 2.5 billion EUR in 2011 prices will be available under 
the European Globalisation Fund for providing additional support to farmers suffering from effects of globalisation. In the table above, the breakdown by year in current prices is only 
indicative.  The  proposal  for  the  inter-institutional  agreement  between  the  European  Parliament,  the  Council  and  the  Commission  on  cooperation  in  budgetary  matters  and  on  sound 
financial  management  (COM(2011)403  final  of  29  June  2011)  sets  out,  for  the  EGF,  an  overall  maximum  annual  amount  of  429  million  EUR  in  2011  prices. 

EN 

121 

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3.2. 

Estimated impact on expenditure  

3.2.1. 

Summary of estimated impact on expenditure  

Table 2: Estimated revenue as well as expenditure for Policy Area 05 within Heading 2 

In million EUR (current prices) 

Budget year 

2013 

2013 
adjusted 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

REVENUE 

123 – Sugar production charge (own resources) 

123 

123 

123 

123 

67 03 - Assigned revenue 

  of which: ex 05 07 01 06 - Accounting clearance 

Total 

EXPENDITURE 

05 02 - Markets (1) 

672 

0 

795 

672 

0 

795 

741 

69 

864 

741 

69 

864 

741 

69 

741 

741 

69 

741 

741 

69 

741 

741 

69 

741 

741 

69 

741 

3 311 

3 311 

2 622 

2 641 

2 670 

2 699 

2 722 

2 710 

2 699 

18 764 

05 03 - Direct aids (before capping) (2)  

42 170 

42 535 

42 876 

43 081 

43 297 

43 488 

43 454 

43 454 

43 454 

303 105 

05 03 – Direct aids (after capping) 

42 170 

42 535 

42 876 

42 917 

43 125 

43 303 

43 269 

43 269 

43 269 

302 027 

05 04 - Rural development (before capping) 

14 817 

14 451 

14 455 

14 455 

14 455 

14 455 

14 455 

14 455 

14 455 

101 185 

05 04 - Rural development (after capping) 

14 817 

14 451 

14 455 

14 619 

14 627 

14 640 

14 641 

14 641 

14 641 

102 263 

05 07 01 06 - Accounting clearance 

-69 

-69 

0 

0 

0 

0 

0 

0 

0 

0 

Total 

60 229 

60 229 

59 953 

60 177 

60 423 

60 642 

60 631 

60 620 

60 608 

423 054 

NET BUDGET after assigned revenue  

59 212 

59 436 

59 682 

59 901 

59 890 

59 879 

59 867 

417 867 

EN 

122 

EN 

TOTAL 
2014-2020 

246 

5 187 

483 

5 433 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes: 

(1) 

For 2013, preliminary estimate based on Draft Budget 2012 taking into account legal adjustments already agreed for 2013 (e.g. wine ceiling, abolition of potato starch premium, dried 
fodder) as well as some foreseen developments. For all years, the estimates assume that there will be no additional financing need for support measures due to market disturbances or 
crises. 

(2) 

The 2013 amount includes an estimate of wine grubbing-up 2012. 

EN 

123 

EN 

 
  
 
Table 3: Calculation of the financial impact by budget chapter of the CAP reform proposals as regards revenue and CAP expenditure 

Budget year 

2013 

2013 
adjusted 

REVENUE 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

In million EUR (current prices) 

TOTAL 
2014-2020 

123 – Sugar production charge (own resources) 

123 

123 

0 

0 

0 

0 

0 

0 

0 

0 

67 03 - Assigned revenue 

  of which: ex 05 07 01 06 - Accounting clearance 

Total 

EXPENDITURE 

05 02 - Markets (1) 

05 03 - Direct aids (before capping) (2) 

05  03  -  Direct  aids  –  Estimated  product  of  capping  to  be 

672 

0 

795 

672 

0 

795 

69 

69 

69 

3 311 

3 311 

42 170 

42 535 

-689 

-460 

05 04 - Rural development (before capping) 

14 817 

14 451 

05 04 - Rural development – Estimated product of capping to be 

05 07 01 06 - Accounting clearance 

-69 

-69 

69 

0 

4 

0 

69 

69 

69 

-670 

-492 

-164 

4 

164 

69 

69 

69 

69 

-641 

-534 

-172 

4 

172 

69 

69 

69 

69 

-612 

-577 

-185 

4 

185 

69 

69 

69 

69 

-589 

-617 

-186 

4 

186 

69 

69 

69 

69 

-601 

-617 

-186 

4 

186 

69 

69 

69 

69 

-612 

-617 

-186 

4 

186 

69 

483 

483 

483 

-4 413 

-3 913 

-1 078 

28 

1 078 

483 

Total 

60 229 

60 229 

-1 076 

-1 089 

-1 102 

-1 115 

-1 133 

-1 144 

-1 156 

-7 815 

NET BUDGET after assigned revenue  

-1 145 

-1 158 

-1 171 

-1 184 

-1 202 

-1 213 

-1 225 

-8 298 

EN 

124 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes: 

(1) 

For 2013, preliminary estimate based on Draft Budget 2012 taking into account legal adjustments already agreed for 2013 (e.g. wine ceiling, abolition of potato starch premium, dried 
fodder) as well as some foreseen developments. For all years, the estimates assume that there will be no additional financing need for support measures due to market disturbances or 
crises. 

(2) 

The 2013 amount includes an estimate of wine grubbing-up 2012. 

EN 

125 

EN 

 
  
Table 4: Calculation of the financial impact of the CAP reform proposals as regards CAP market-related expenditure 

BUDGET YEAR 

Legal base 

Exceptional  measures:  streamlined  and  extended 
scope of legal base 

Art. 154, 155, 156 

Removal  of 
sorghum 

intervention  for  durum  wheat  and 

ex Art.10 

Food programmes for most deprived 

(2) 

Ex-Art. 27 of Reg 
1234/2007 

Private storage (Flax fibre) 

Art. 16 

Aid for cotton - Restructuring 

(3) 

ex  Art.  5  of  Reg. 
637/2008 

Setting-up aid for F&V producer groups 

School fruit scheme 

Abolition hops PO 

ex Art. 117 

Art. 21 

ex Art. 111 

Optional private storage for skimmed-milk powder 

Art. 16 

Abolition  aid  for  use  of  skimmed  milk/SMP  as 
feedingstuff/casein and use of casein 

ex Art. 101, 102 

In million EUR (current prices) 

Changes to 2013 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

- 

- 

- 

- 

- 

- 

- 

TOTAL 
2014-2020 

pm 

- 

Estimated 
needs 

2013  
(1) 

pm 

pm 

500.0 

-500.0 

-500.0 

-500.0 

-500.0 

-500.0 

-500.0 

-500.0 

-3 500.0 

N.A. 

10.0 

30.0 

90.0 

2.3 

N.A. 

pm 

pm 

-4.0 

pm 

-4.0 

pm 

-4.0 

pm 

-4.0 

pm 

-4.0 

pm 

-4.0 

pm 

-4.0 

0.0 

0.0 

0.0 

-15.0 

-15.0 

-30.0 

-30.0 

60.0 

60.0 

60.0 

60.0 

60.0 

60.0 

60.0 

-2.3 

pm 

- 

-2.3 

pm 

- 

-2.3 

pm 

- 

-2.3 

pm 

- 

-2.3 

pm 

- 

-2.3 

pm 

- 

-2.3 

pm 

- 

Pm 

-28.0 

-90.0 

420.0 

-15.9 

pm 

- 

Optional private storage for butter 

(4) 

Art. 16 

14.0 

[-1.0] 

[-14.0] 

[-14.0] 

[-14.0] 

[-14.0] 

[-14.0] 

[-14.0] 

[-85.0] 

Abolition milk promotional levy 

ex Art. 309 

pm 

- 

- 

- 

- 

- 

- 

- 

- 

TOTAL 05 02 

Net effect of reform proposals (5) 

-446.3 

-446.3 

-446.3 

-461.3 

-461.3 

-476.3 

-476.3 

-3 213.9 

EN 

126 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes: 

(1) 

(2) 

(3) 

(4) 

(5) 

The 2013 needs are estimated based on the Commission's Draft Budget 2012, except for (a) the fruit & vegetables sectors where the needs are based on the financial statement of the 
respective reforms and (b) any legal changes already agreed. 

The 2013 amount corresponds to Commission proposal COM(2010)486. As from 2014, the measure will be financed within Heading 1. 

The  envelope  for  the  cotton  restructuring  programme  for  Greece  (4  million  EUR/year)  will  be  transferred  to  rural  development  as  from  2014.  The  envelope  for  Spain  (6.1  million 
EUR/year) will go to the Single Payment Scheme as from 2018 (already decided). 

Estimated effect in case of non-application of the measure. 

In addition to expenditure within chapters 05 02 and 05 03, it is anticipated that direct expenditure within chapters 05 01, 05 07 and 05 08 will be financed by revenue that will be assigned 
to the EAGF. 

EN 

127 

EN 

 
  
Table 5: Calculation of the financial impact of the CAP reform proposals as regards direct aids 

In million EUR (current prices) 

Legal base 

Estimated needs 

Changes to 2013 

BUDGET YEAR 

2013 (1) 

2013 
adjusted 
(2) 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

TOTAL 
2014-2020 

Direct aids 

42 169.9 

42 535.4 

341.0 

381.1 

589.6 

768.0 

733.2 

733.2 

733.2

4 279.3 

- Changes already 
decided: 

Phasing-in EU 12 

Cotton 
restructuring 

Health Check  

Previous reforms  

875.0 

1 133.9 

1 392.8 

1 651.6 

1 651.6 

1 651.6 

1 651.6

10 008.1 

0.0 

0.0 

0.0 

0.0 

6.1 

6.1 

6.1

18.4 

-64.3 

-64.3 

-64.3 

-90.0 

-90.0 

-90.0 

-90.0

-552.8 

-9.9 

-32.4 

-32.4 

-32.4 

-32.4 

-32.4 

-32.4

-204.2 

- Changes due to new CAP reform proposals 

-459.8 

-656.1 

-706.5 

-761.3 

-802.2 

-802.2 

-802.2

-4 990.3 

Of which: capping 

0.0 

-164.1 

-172.1 

-184.7 

-185.6 

-185.6 

-185.6

-1 077.7 

TOTAL 05 03 

Net effect of reform proposals 

-459.8 

-656.1 

-706.5 

-761.3 

-802.2 

-802.2 

-802.2

-4 990.3 

TOTAL EXPENDITURE 

42 169.9 

42 535.4 

42 876.4 

42 916.5 

43 125.0 

43 303.4 

43 268.7 

43 268.7 

43 268.7

302 027.3 

EN 

128 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes: 

(1) 

(2) 

The 2013 amount includes an estimate of wine grubbing-up 2012. 

Taking into account legislative changes already agreed, i.e. voluntary modulation for the UK and Article 136 "unspent amounts" will cease to apply by the end of 2013. 

EN 

129 

EN 

 
  
Table 6: Components of direct aids 

BUDGET YEAR 

2015 

2016 

2017 

2018 

2019 

2020 

TOTAL 
2014-2020 

Annex II 

42 407.2 

42 623.4 

42 814.2 

42 780.3 

42 780.3 

42 780.3

256 185.7 

In million EUR (current prices) 

Payment  for  agricultural  practices  beneficial  for  the  climate  and 
environment (30%) 
Maximum that can be allocated to the Payment for young farmers 
(2%) 

Basic  Payment  Scheme,  Payment  for  areas  with  Natural 
Constraints, Voluntary Coupled Support 
Maximum  that  can  be  taken  from  the  above  lines  to  finance  the 
Small Farmer Scheme (10%) 
Wine transfers included in Annex II55 

Capping 

Cotton 

12 866.5 

12 855.3 

12 844.3 

12 834.1 

12 834.1 

12 834.1

77 068.4 

857.8 

857.0 

856.3 

855.6 

855.6 

855.6

5 137.9 

28 682.9 

28 911.1 

29 113.6 

29 090.6 

29 090.6 

29 090.6

173 979.4 

4 288.8 

4 285.1 

4 281.4 

4 278.0 

4 278.0 

4 278.0

25 689.3 

159.9 

159.9 

159.9 

159.9 

159.9 

159.9

959.1 

-164.1 

-172.1 

-184.7 

-185.6 

-185.6 

-185.6

-1 077.7 

256.0 

256.3 

256.5 

256.6 

256.6 

256.6

1 538.6 

POSEI/Small Aegean Islands 

417.4 

417.4 

417.4 

417.4 

417.4 

417.4

2 504.4 

55 

Direct aids for the period 2014-2020 include an estimate of the wine transfers to SPS based on the decisions taken by the Member States for 2013. 

EN 

130 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
Table 7: Calculation of the financial impact of the CAP reform proposals as regards transitional measures for granting direct aids in 2014 

In million EUR (current prices) 

BUDGET YEAR 

Legal base 

Estimated needs 

Changes to 
2013 

2013  

(1) 

2013 
adjusted 

2014  

(2) 

Annex IV to Council Regulation (EC) No 73/2009 

40 165.0 

40 530.5 

Phasing-in EU 10 

Health Check  

Previous reforms  

TOTAL 05 03 

TOTAL EXPENDITURE 

541.9

616.1

-64.3

-9.9

40 165.0 

40 530.5 

41 072.4

Notes: 

(1) 

(2) 

EN 

The 2013 amount includes an estimate of wine grubbing-up 2012. 

The extended net ceilings include an estimate of the wine transfers to SPS based on the decisions taken by the Member States for 2013. 

131 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table 8: Calculation of the financial impact of the CAP reform proposals as regards rural development 

BUDGET YEAR 

Legal base 

Rural development 
allocation 

2013 

2013 
adjusted 
(1) 

Rural development programmes 

14 788.9 

14 423.4 

In million EUR (current prices) 

Changes to 2013 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

TOTAL 
2014-2020 

Aid for cotton - Restructuring 

(2) 

4.0 

4.0 

4.0 

4.0 

4.0 

4.0 

4.0 

28.0 

Product of capping of direct 
aids 

RD envelope excluding 
technical assistance 

Technical assistance 

Prize  for  local  innovative  co-operation 
projects 

(3) 

(3) 

(4) 

TOTAL 05 04 

Net effect of reform proposals 

TOTAL  EXPENDITURE 
capping) 

(before 

164.1 

172.1 

184.7 

185.6 

185.6 

185.6 

1 077.7 

-8.5 

-8.5 

-8.5 

-8.5 

-8.5 

-8.5 

-8.5 

-59.4 

27.6 

27.6 

N.A. 

N.A. 

8.5 

0.0 

3.5 

5.0 

3.5 

5.0 

3.5 

5.0 

3.5 

5.0 

3.5 

5.0 

3.5 

5.0 

29.4 

30.0 

4.0 

168.1 

176.1 

188.7 

189.6 

189.6 

189.6 

1 105.7 

14 816.6 

14 451.1 

14 455.1 

14 455.1 

14 455.1 

14 455.1 

14 455.1 

14 455.1 

14 455.1 

101 185.5 

TOTAL 
capping) 

EN 

EXPENDITURE 

(after 

14 816.6 

14 451.1 

14 455.1 

14 619.2 

14 627.2 

14 639.8 

14 640.7 

14 640.7 

14 640.7 

102 263.2 

132 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes: 

(1) 

(2) 

Adjustments in line with the existing legislation only applicable until the end of financial year 2013. 

The amounts in table 1 (section 3.1) are in line with those in the Commission communication "A Budget for Europe 2020" (COM(2011)500 final). However, it remains to 
be decided if the MFF will reflect the transfer that is proposed for the envelope of one Member State of the cotton national restructuring programme to rural development as 
from 2014, implying an adjustment (4 million EUR per year) of the amounts for respectively the EAGF sub-ceiling and for pillar 2. In table 8 above, the amounts have been 
transferred, irrespective of them being reflected in the MFF. 

(3) 

The 2013 amount for technical assistance was fixed based on the initial rural development envelope (transfers from pillar 1 not included).  

Technical assistance for 2014-2020 is fixed at 0.25% of the total rural development envelope. 

(4) 

Covered by the amount available for technical assistance. 

EN 

133 

EN 

 
  
 
Heading of multiannual financial 
framework:  

5 

" Administrative expenditure " 

EUR million (to 3 decimal places) 

Note: 

It is estimated that the legislative proposals will have no impact on appropriations of an administrative nature, i.e. it is the intention 
that the legislative framework can be implemented with the present level of human resources and administrative expenditure. 

DG: AGRI 

(cid:121) Human resources  
(cid:121) Other administrative expenditure  

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

TOTAL 

136.998  136.998  136.998  136.998  136.998  136.998  136.998 

9.704 

9.704 

9.704 

9.704 

9.704 

9.704 

9.704 

958.986 

67.928 

TOTAL DG AGRI 

Appropriations  

146.702  146.702  146.702  146.702  146.702  146.702  146.702 

1 026.914 

TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework  

(Total 
= Total payments) 

commitments 

146.702  146.702  146.702  146.702  146.702  146.702  146.702 

1 026.914 

Year 
N56 

Year 
N+1 

Year 
N+2 

Year 
N+3 

… enter as many years as 
necessary to show the duration 
of the impact (see point 1.6) 

TOTAL 

EUR million (to 3 decimal places) 

56 

Year N is the year in which implementation of the proposal/initiative starts. 

EN 

134 

EN 

 
  
 
 
 
 
 
 
 
 
 
                                                 
TOTAL appropriations  
under HEADINGS 1 to 5 
of the multiannual financial framework  

Commitments 

Payments 

EN 

135 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.2.  Estimated impact on operational appropriations  

–  (cid:133)  The proposal/initiative does not require the use of operational appropriations  

–  x  The proposal/initiative requires the use of operational appropriations, as explained below: 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

OUTPUTS 

Commitment appropriations in EUR million (to 3 decimal places) 

Year 
2018 

Year 
2019 

Year 
2020 

TOTAL 

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

Cost 

Total 
number 
of 
outputs 

Total  
cost 

830.0 

830.0 

830.0 

830.0 

830.0 

830.0 

830.0 

5 810.0 

Indicate 
objectives and 
outputs  

(cid:216) 

Type 
of 
output 

Average 
r
e
cost  
b
m
of the 
u
output  N

s
t
u
p
t
u
o

f
o

SPECIFIC OBJECTIVE No 5:  

To improve the competitiveness of the 
agricultural  sector  and  enhance  its 
value share in the food chain 

- Fruit & 
vegetables: 
Marketing 
through 
producer 
organisations 
(POs)57 

Propor-
tion of 
the 
value of 
produc-
tion 
marke-
ted 
through 
POs in 
value of 

57 

EN 

Based on past execution and estimates in the 2012 Draft Budget. For the producer organisations in the fruit & vegetables sector, the amounts are in line with the reform of that sector and, 
as already indicated in the activity statements of the 2012 Draft Budget, outputs will only be known in late 2011. 

136 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
the total 
produc-
tion 

- Wine: National 
envelope – 
Restructuring57  

Number 
of 
hectares

- Wine: National 
envelope – 
Investments57 

- Wine: National 
envelope – By-
product 
distillation57 

Hecto-
litres 

- Wine: National 
envelope – 
Potable 
alcohol57 

Number 
of 
hectares

Hecto-
litres 

- Wine: National 
envelope – Use 
of concentrated 
must57 

- Wine: National 
envelope – 
promotion57 

- Other  

Sub-total for specific objective N°5 

54 326 

475.1 

54 326 

475.1 

54 326 

475.1 

54 326 

475.1 

54 326 

475.1 

54 326 

475.1 

54 326 

475.1 

3 326.0 

1 147 

178.9 

1 147 

178.9 

1 147 

178.9 

1 147 

178.9 

1 147 

178.9 

1 147 

178.9 

1 147 

178.9 

1 252.6 

700 000 

98.1 

700 000 

98.1 

700 000 

98.1 

700 000 

98.1 

700 000 

98.1 

700 000 

98.1 

700 000 

98.1 

686.4 

32 754 

14.2 

32 754 

14.2 

32 754 

14.2 

32 754 

14.2 

32 754 

14.2 

32 754 

14.2 

32 754 

14.2 

14.2 

9 

37.4 

9 

37.4 

9 

37.4 

9 

37.4 

9 

37.4 

9 

37.4 

9 

37.4 

261.8 

267.9 

267.9 

267.9 

267.9 

267.9 

267.9 

267.9 

1 875.3 

720.2 

2 621.8 

739.6 

2 641.2 

768.7 

797.7 

820.3 

808.8 

2 670.3 

2 699.3 

2 721.9 

2 710.4 

797.1 

2 698.7 

5 452.3 

18 763.5 

EN 

137 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SPECIFIC OBJECTIVE No 6: 

To contribute to farm incomes and 
limit farm income variability 

- Direct income 
support58 

Number 
of 
hectares 
paid 

(in 
million) 

161.014 

42 876.4 

161.014 

43 080.6 

161.014 

43 297.1 

161.014 

43 488.1 

161.014 

43 454.3 

161.014 

43 454.3 

161.014 

43 454.3 

161.014 

303 105.0 

Sub-total for specific objective N°6 

42 876.4 

43 080.6 

43 297.1 

43 488.1 

43 454.3 

43 454.3 

43 454.3 

303 105.0 

TOTAL COST 

Note: For specific objectives 1 to 4 and 7 to 10, the outputs are still to be determined (see section 1.4.2 above). 

58 

Based on potentially eligible areas for 2009. 

EN 

138 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.3.  Estimated impact on appropriations of an administrative nature 

3.2.3.1.  Summary  

–  (cid:133)  The  proposal/initiative  does  not 

require 

the  use  of  administrative 

appropriations  

–  x  The  proposal/initiative  requires  the  use  of  administrative  appropriations,  as 

explained below:  

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

TOTAL 

EUR million (to 3 decimal places) 

HEADING 5 
of the multiannual 
financial framework 

Human resources 59 

136.998 

136.998 

136.998 

136.998 

136.998 

136.998 

136.998 

958.986 

9.704 

9.704 

9.704 

9.704 

9.704 

9.704 

9.704 

67.928 

Other  administrative 
expenditure  

Subtotal HEADING 5 
of the multiannual 
financial framework  

Outside HEADING 5 
of the multiannual 
financial framework  

Human resources  

Other 
expenditure  
of  an  administrative 
nature 

Subtotal  
outside HEADING 5 
of the multiannual 
financial framework  

TOTAL 

146.702 

146.702 

146.702 

146.702 

146.702 

146.702 

146.702 

1 026.914

59 

Based on an average cost of 127 000 EUR for establishment plan post of officials and temporary agents. 

EN 

139 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.3.2.   Estimated requirements of human resources  

–  (cid:133)  The proposal/initiative does not require the use of human resources  

–  x  The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below: 

Note:  It  is  estimated  that  the  legislative  proposals  will  have  no  impact  on 
appropriations of an administrative nature, i.e. it is the intention that the 
legislative framework can be implemented with the present level of human 
resources and administrative expenditure. The figures for the period 2014-
2020 are based on the situation for 2011. 

Estimate to be expressed in full amounts (or at most to one decimal place) 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

(cid:121) Establishment plan posts (officials and temporary agents) 

XX 01 01 01 (Headquarters and 
Commission’s Representation 
Offices) 

1 034 

1 034 

1 034 

1 034 

1 034 

1 034 

1 034 

XX 01 01 02 (Delegations) 

3 

3 

3 

3 

3 

3 

3 

XX 01 05 01 (Indirect research) 

10 01 05 01 (Direct research) 

(cid:121) External personnel (in Full Time Equivalent unit: FTE)60 

78 

78 

78 

78 

78 

78 

78 

XX 01 02 01 (CA, INT, SNE from 
the "global envelope") 

XX 01 02 02 (CA, INT, JED, LA and 
SNE in the delegations) 

XX 01 04 
yy  

- at 
Headquarte
rs 

- in 
delegations 

XX 01 05 02 (CA, INT, SNE - 
Indirect research) 

10 01 05 02 (CA, INT, SNE - Direct 
research) 

Other budget lines (specify) 

TOTAL61 

1 115 

1 115 

1 115 

1 115 

1 115 

1 115 

1 115 

XX is the policy area or budget title concerned. 

The human resources required will be met by staff from the DG who are already assigned to 
management of the action and/or have been redeployed within the DG, together if necessary 

60 

61 

CA= Contract Agent; INT= agency staff ("Intérimaire"); JED= "Jeune Expert en Délégation" (Young 
Experts in Delegations); LA= Local Agent; SNE= Seconded National Expert;  
This does not include the sub-ceiling on budget line 05.010404. 

EN 

140 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
with any additional allocation which may be granted to the managing DG under the annual 
allocation procedure and in the light of budgetary constraints. 

Description of tasks to be carried out: 

Officials and temporary agents 

External personnel 

EN 

141 

   EN 

 
 
 
3.2.4.  Compatibility with the current multiannual financial framework  

–  x  Proposal/initiative  is  compatible  with  the  PROPOSALS  FOR  THE  2014-

2020 multiannual financial framework. 

–  (cid:133)  Proposal/initiative  will  entail  reprogramming  of  the  relevant  heading  in  the 

multiannual financial framework. 

–  (cid:133)  Proposal/initiative requires application of the flexibility instrument or revision 

of the multiannual financial framework. 

3.2.5.  Third-party contributions  

–  The proposal/initiative does not provide for co-financing by third parties  

–  X  The  proposal  regarding  rural  development  (EAFRD)  provides  for  the  co-

financing estimated below: 

Appropriations in EUR million (to 3 decimal places) 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

Total 

Specify  the  co-financing 
body  

TOTAL 
cofinanced 62 

appropriations 

MS 

MS 

MS 

MS 

MS 

MS 

MS 

MS 

To be 
determin
ed 

To be 
determin
ed 

To be 
determin
ed 

To be 
determin
ed 

To be 
determin
ed 

To be 
determin
ed 

To be 
determin
ed 

To be 
determined 

62 

This will be set out in the rural development programmes to be submitted by the Member States. 

EN 

142 

   EN 

 
 
 
                                                 
3.3. 

Estimated impact on revenue  

–  x  Proposal/initiative has no financial impact on revenue. 

–  (cid:133)  Proposal/initiative has the following financial impact: 

– 

– 

x  on own resources  

x  on miscellaneous revenue  

Budget revenue line: 

Appropriations 
available for the 
ongoing budget 
year 

EUR million (to 3 decimal places) 

Impact of the proposal/initiative63 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

… insert as many columns as necessary 
in order to reflect the duration of the 
impact (see point 1.6) 

For miscellaneous assigned revenue, specify the budget expenditure line(s) affected. 

See tables 2 and 3 in section 3.2.1.  

63 

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net 
amounts, i.e. gross amounts after deduction of 25% for collection costs. 

EN 

143 

   EN 

 
 
 
 
 
 
 
 
 
 
                                                 
EN 

144 

EN