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
Date: 2011-10-12
Institutions: European Commission
Subjects: aid to agriculture, biodiversity, climate change, economic instrument for the environment, redevelopment aid, reform of the CAP, rural development, single payment scheme

EUROPEAN COMMISSION 

Brussels, 12.10.2011 
COM(2011) 625 final 

2011/0280 (COD) 

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 

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

 
 
  
 
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. 

This  reform  accelerates  the  process  of  integration  of  environmental  requirements.  It 
introduces a strong greening component into the first pillar of the CAP for the first time thus 
ensuring  that  all  EU  farmers  in  receipt  of  support  go  beyond  the  requirements  of  cross 
compliance and deliver environmental and climate benefits as part of their everyday activities. 
Thirty  percent  of  direct  payments  will  now  be  tied  to  greening,  and  these  payments  will 
ensure that all farms deliver environmental and climate benefits through the retention of soil 
carbon  and  grassland  habitats  associated  with  permanent  pasture,  the  delivery  of  water  and 
habitat  protection  by  the  establishment  of  ecological  focus  areas  and  improvement  of  the 
resilience of soil and ecosystems through crop diversification. They will reinforce the ability 
of  land  and  natural  ecosystems  to  contribute  to  address  major  EU  biodiversity  and  climate 
change adaptation objectives. Cross compliance will still underpin direct payments and it will 
be further focused to provide protection for wetlands and carbon rich soils while at the same 
time being streamlined to reduce administrative burdens. The Commission is committed to the 
introduction of the Water Framework Directives within the remit of cross compliance when 
all Member States will have fully implemented them in particular with clear obligations for 
farmers.  Within  rural  development  also,  the  objectives  of  the  sustainable  management  of 
natural resources and climate  action  are  prioritised  through the restoration,  preservation  and 
enhancement of ecosystems as well as the promotion of resource efficiency, low carbon and 
climate resilient agriculture. Rural development will allow to significantly contribute towards 
the  completion  of  the  implementation  of  both  the  Natura  2000  and  Water  Framework 
Directives and to the achievement of the EU's 2020 biodiversity strategy. 

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 

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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'); 

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 
Framework5.  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. 

5 

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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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 
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).  

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

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–  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 
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.  

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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 
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 direct payments regulation lays down common rules for the basic payment scheme and 
related  payments.  Building  on  the  reform  of  2003  and  the  Health  Check  of  2008  that 
decoupled  direct  payments  from  production  while  subjecting  them  to  cross  compliance 
requirements,  the  regulation  now  seeks  to  better  target  support  to  certain  actions,  areas  or 
beneficiaries  as  well  as  to  pave  the  way  for  convergence  of  the  level  of  support  within  and 
across Member States. The regulation also includes a section on coupled support. 

A  single  scheme  across  the  EU,  the  basic  payment  scheme,  replaces  the  Single  Payment 
Scheme and the Single Area Payment Scheme as from 2014. The scheme will operate on the 
basis of payment entitlements allocated at national or regional level to all farmers according 
to  their  eligible  hectares  in  the  first  year  of  application.  Thus  the  use  of  the  regional  model 
that was optional in the current period is generalized, also effectively bringing all agricultural 
land  into  the  system.  The  rules  on  the  management  of  entitlements  and  the  national  reserve 
largely follow current rules.  

With  a  view  to  a  more  equitable  distribution  of  support,  the  value  of  entitlements  should 
converge at national or regional level towards a uniform value. This is done progressively to 
avoid major disruptions.  

An  important  element  is  to  enhance  the  overall  environmental  performance  of  the  CAP 
through the greening of direct payments by means of certain agricultural practices beneficial 

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for  the  climate  and  the  environment  that  all  farmers  will  have  to  follow,  which  go  beyond 
cross compliance and are in turn the basis for pillar II measures.    

The  definition  of  active  farmer  further  enhances  targeting  on  farmers  genuinely  engaged  in 
agricultural activities, and thus legitimizes support. In addition, the progressive reduction and 
capping  of  support  for  large  beneficiaries  is  foreseen  while  taking  due  account  of 
employment.  

The following payments are also provided: 

– 

– 

– 

an  payment  (30%  of  annual  national  ceiling)  for  farmers  following  agricultural 
practices  beneficial  for  the  climate  and  the  environment:  crop  diversification, 
maintenance  of  permanent  pastures  and  ecological  focus  areas.  Organic  farming 
automatically  benefits  from  this  payment,  while  farmers  in  Natura  2000  areas  will 
have to comply with the relevant requirements to the extent that they are consistent 
with the Natura 2000 legislation;  

a voluntary payment (up to 5% of annual national ceiling) for farmers in areas facing 
specific  natural  constraints  (areas  delimited  in  the  same  manner  as  for  rural 
development  purposes);  this  payment  recognizes  the  need  for  income  support  to 
maintain  presence  in  areas  facing  specific  natural  constraints  and  complements 
existing support under rural development; 

a  payment  (up  to  2%  of  annual  national  ceiling)  for  young  farmers  in  their 
installation, which may be complemented by setting up aid under rural development; 
and 

At the same time, the regulation lays down a simplified scheme for small farmers (up to 10% 
of  annual  national  ceiling),  who  may  thus  receive  a  lump  sum  payment  replacing  all  direct 
payments  and  producing  administrative  simplification  with  an  easing  of  such  farmers' 
obligations related to greening, cross compliance and controls. 

A  voluntary  coupled  support  scheme  is  provided  for  specific  types  of  farming  or  specific 
agricultural  systems  which  are  experiencing  certain  difficulties  and  which  are  particularly 
important for economic and/or social reasons; support is provided to the extent necessary to 
maintain current levels of production (up to 5% of annual national ceiling with the possibility 
to go beyond this in particular cases). 

In  addition,  the  regulation  maintains  the  possibility  for  Complementary  National  Direct 
Payments for Bulgaria and Romania and includes a specific payment for cotton. 

In terms of simplification, the new direct payments system will be based on a single type of 
payment  entitlements  and  streamline  transfer  rules,  thereby  simplifying  its  management;  a 
harmonisation  of  provisions  for  coupled  payments  under  one  heading  renders  the  legal 
framework  more  user-friendly  and  the  scheme  for  small  farmers  with  its  simplified 
requirements  and  procedures  will  reduce  the  red  tape  on  small  farmers  and  enhance  their 
competitiveness. 

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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 
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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2011/0280 (COD) 

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 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 Article 43(2) thereof, 

Having regard to the 1979 Act of Accession, and in particular paragraph 6 of Protocol No 4 
on cotton attached thereto, 

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 Supervisor10, 

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  sets  out  potential  challenges,  objectives  and  orientations  for  the 
Common  Agricultural  Policy  (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 73/2009 of 19 January 2009 establishing common rules for direct 
support  schemes  for  farmers  under  the  common  agricultural  policy  and  establishing 
certain support schemes for farmers, amending Regulations (EC) No 1290/2005, (EC) 

7 
8 
9 
10 
11 

OJ C […], […], p. […]. 
OJ C […], […], p. […]. 
OJ C […], […], p. […]. 
OJ C […], […], p. […]. 
COM(2010) 672 final, 18.11.2010. 

EN 

10 

   EN 

 
                                                 
(2) 

(3) 

(4) 

(5) 

No 247/2006,  (EC)  No  378/2007  and  repealing  Regulation  (EC)  No  1782/200312.  In 
view  of  the  scope  of  the  reform,  it  is  appropriate  to  repeal  Regulation  (EC)  No 
73/2009 and to replace it with a new text. The reform should also, as far as possible, 
streamline and simplify provisions. 

This  Regulation  should  contain  all  the  basic  elements  pertaining  to  the  payment  of 
Union support to farmers and fix criteria and conditions of access to those payments 
which are inextricably linked to those basic elements. 

It should be clarified that Regulation (EU) No […] of the European Parliament and of 
Council  of…  on  the  financing,  management  and  monitoring  of  the  common 
agricultural  policy13  [horizontal  CAP  Regulation:  HZR]  and  the  provisions  adopted 
pursuant to it should apply in relation to the measures set out in this Regulation. For 
the  sake  of  consistency  with  other  legal  instruments  relating  to  the  CAP,  some  rules 
currently  provided  for  in  Regulation  (EC)  No  73/2009,  are  now  laid  down  in 
Regulation  (EU)  No […][HZR],  in  particular  rules  to  guarantee  compliance  with  the 
obligations  laid  down  by  direct  payment  provisions,  including  checks  and  the 
application  of  administrative  measures  and  administrative  penalties  in  case  of  non-
compliance,  rules  related  to  cross-compliance  such  as  the  statutory  management 
requirements,  the  good  agricultural  and  environmental  condition,  the  monitoring  and 
evaluation of relevant measures and rules related to the recovery of undue payments. 

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 Council. 

In order to ensure uniform conditions for the implementation of this Regulation and to 
avoid  unfair  competition  or  discrimination  between  farmers,  implementing  powers 
should  be  conferred  on  the  Commission  in  respect  of:  the  fixation  of  the  annual 
national  ceiling  for  the  basic  payment  scheme;  the  adoption  of  rules  on  applications 
for  allocation  of  payment  entitlements;  the  adoption  of  measures  regarding  the 
reversion of non-activated payment entitlements to the national reserve; the adoption 
of  requirements  related  to  the  notification  of  transfer  of  payment  entitlements  to  the 
national authorities and the deadlines within which such notification are to take place;  
the  setting  out  of  the  annual  ceiling  for  the  payment  for  agricultural  practises 
beneficial for the climate and the environment; the setting out of the annual ceiling for 
the payment for areas with natural constraints; the setting out of the annual ceiling for 
the payment for young farmers; the setting out of the annual ceilings for the voluntary 
coupled  support;  the  adoption  of  rules  on  the  procedure  for  the  assessment  and 
approval of decisions in the framework of the voluntary coupled support; the adoption 
of  rules  on  the  procedure  of  the  authorisation  and  the  notifications  to  the  producers 
related to the authorisation of land and varieties for the purposes of the crop specific 
payment for cotton; the provision for rules on the calculation of the reduction of the 

12 
13 

OJ L 30, 31.1.2009, p. 16. 
OJ L ….. 

EN 

11 

   EN 

 
                                                 
(6) 

(7) 

(8) 

(9) 

amount  of  the  crop  specific  payment  for  cotton;  the  adoption  of  rules  concerning 
general  notification  requirements.  Those  powers  should  be  exercised  in  accordance 
with Regulation (EU) No 182/2011 of the European Parliament and of the Council of 
16  February  2011  laying  down  the  rules  and  general  principles  concerning 
mechanisms  for  control  by  Member  States  of  the  Commission's  exercise  of 
implementing powers14. 

The  Commission  should  adopt  immediately  applicable  implementing  acts  where,  in 
duly  justified  cases  relating  to  exceptional  management  measures,  intended  to  solve 
urgent and unforeseen problems occurring in one or more Member States, imperative 
grounds of urgency so require. 

The  objectives  of  this  Regulation  can  be  achieved  more  efficiently  at  Union  level 
through the multiannual guarantee of Union financing and by concentrating on clearly 
identified priorities, given the links between this Regulation and the other instruments 
of  the  CAP,  the  disparities  between  the  various  rural  areas  and  the  limited  financial 
resources  of  the  Member  States  in  an  enlarged  Union.  The  present  Regulation  is 
therefore  in  line  with  the  principle  of  subsidiarity  as  set  out  in  Article  5(3)  of  the 
Treaty  on  European  Union.  Since  the  scope  of  this  Regulation  is  limited  to  what  is 
necessary  in  order  to  achieve  its  objectives,  it  also  respects  the  principle  of 
proportionality as set out in Article 5(4) of that Treaty. 

In order to take into account new legislation on support schemes that may be adopted 
after the entry into force of this Regulation, the power to adopt acts in accordance with 
Article  290  of  the  Treaty  should  be  delegated  to  the  Commission  for  the  purpose  of 
amending the list of support schemes covered by this Regulation. 

In order to take into account specific new elements and to guarantee the protection of 
the rights of beneficiaries, the power to adopt acts in accordance with Article 290 of 
the  Treaty  should  be  delegated  to  the  Commission  for  the  purpose  of  laying  down 
further definitions regarding the access to support under this Regulation, establishing 
the framework within which Member States shall define the minimum activities to be 
carried out on areas naturally kept in a state suitable for grazing or cultivation as well 
as  the  criteria  to  be  met  by  farmers  in  order  to  be  deemed  to  have  respected  the 
obligation of maintaining the agricultural area in the state suitable for production and 
the criteria to determine the predominance of grasses and other herbaceous forage as 
regards permanent grassland. 

(10) 

In  order  to  guarantee  the  protection  of  the  rights  of  beneficiaries  the  power  to  adopt 
acts  in  accordance  with  Article  290  of  the  Treaty  should  be  delegated  to  the 
Commission  for  the  purpose  of  adopting  of  rules  on  the  basis  for  calculation  of 
reductions  to  be  applied  by  Member  States  to  farmers  pursuant  to  the  application  of 
the financial discipline. 

(11)  With a view to ensuring that the amounts for the financing of the CAP comply with 
the annual ceilings referred to in Article 16(1) of Regulation (EU) No […] [HZR], an 
adjustment  of  the  level  of  direct  support  in  any  calendar  year  should  be  maintained. 
The  adjustment  of  the  direct  payments  should  only  be  applied  to  payments  to  be 

14 

OJ L 55, 28.2.2011, p. 13. 

EN 

12 

   EN 

 
                                                 
granted to farmers in excess of EUR 5 000 in the corresponding calendar year. Taking 
into account the levels of direct payments for farmers in Bulgaria and Romania in the 
framework  of  the  application  of  the  phasing-in  mechanism  to  all  direct  payments 
granted  in  those  Member  States,  this  instrument  of  financial  discipline  should  only 
apply in those Member States as from 1 January 2016.  

(12) 

In order to take account of the developments relating to the total maximum amounts of 
direct payments that may be granted, including those resulting from the decisions to be 
taken  by  the  Member  States  regarding  transfers  between  the  first  and  second  pillars, 
the  power  to  adopt  acts  in  accordance  with  Article  290  of  the  Treaty  should  be 
delegated to the Commission for the purpose of reviewing the national and net ceilings 
set out in this Regulation. 

(13)  Experience from the application of the various support schemes for farmers has shown 
that support was in a number of cases granted to beneficiaries whose business purpose 
was not or only marginally targeted at an agricultural activity, such as airports, railway 
companies, real estate companies and companies managing sport grounds. To ensure 
the  better  targeting  of  support,  Member  States  should  refrain  from  granting  direct 
payments  to  such  natural  and  legal  persons.  Smaller  part-time  farmers  contribute 
directly to the vitality of rural areas, for that reason they should not be prevented from 
being granted direct payments. 

(14)  To avoid an excessive administrative burden caused by the managing of payments of 
small amounts, Member States should in general refrain from granting direct payments 
where the payment would be lower than EUR 100 or the eligible area of the holding 
for  which  support  is  claimed  would  be  less  than  one  hectare.  However,  as  the 
structures  of  the  Member  States'  agricultural  economies  vary  considerably  and  may 
differ  significantly  from  the  average  farm  structure  in  the  Union,  Member  States 
should be allowed to apply minimum thresholds that reflect their particular situation. 
Due  to  the  very  specific  farming  structure  in  the  outermost  regions  and  the  smaller 
Aegean  Islands,  Member  States  should  be  able  to  decide  whether  any  minimum 
threshold  should  apply  in  those  regions.  Moreover,  Member  States  should  have  the 
possibility to opt for the implementation of one of the two types of minimum threshold 
taking  account  of  the  particularities  of  the  structures  of  their  farming  sectors.  As 
payment could be granted to farmers with so-called ‘landless’ holdings, the application 
of  the  hectare-based  threshold  would  be  ineffective.  The  support-related  minimum 
amount should therefore apply to such farmers. To ensure equal treatment of farmers 
whose  direct  payments  are  subject  to  phasing-in  in  Bulgaria  and  Romania,  the 
minimum threshold should be based on the final amounts to be granted at the end of 
the phasing-in process. 

(15)  The  distribution  of  direct  income  support  among  farmers  is  characterised  by  the 
allocation of disproportionate amounts of payments to a rather small number of large 
beneficiaries.  Due  to  economies  of  size,  larger  beneficiaries  do  not  require  the  same 
level of unitary support for the objective of income support to be efficiently achieved. 
Moreover, the potential to adapt makes it easier for larger beneficiaries to operate with 
lower  levels  of  unitary  support.  It  is  therefore  fair  to  introduce  a  system  for  large 
beneficiaries  where  the  support  level  is  gradually  reduced  and  ultimately  capped  to 
improve the distribution of  payments between  farmers.  Such  system should  however 
take  into  account  salaried  labour  intensity  to  avoid  disproportionate  effects  on  large 
farms  with  high  employment  numbers.  Those  maximum  levels  should  not  apply  to 

EN 

13 

   EN 

 
payments  granted  to  agricultural  practices  beneficial  for  the  climate  and  the 
environment  since  the  beneficial  objectives  they  pursue  could  be  diminished  as  a 
result.  In  order  to  make  capping  effective,  Member  States  should  establish  some 
criteria  in  order  to  avoid  abusive  operations  by  farmers  seeking  to  evade  its  effects. 
The proceeds of the reduction and capping of payments to large beneficiaries should 
remain  in  the  Member  States  where  they  were  generated  and  should  be  used  for 
financing projects with a significant contribution to innovation under Regulation (EU) 
No […]  of  the  European  Parliament  and  of  the  Council  of….on  support  for  rural 
development  by  the  European  Agricultural  Fund  for  Rural  Development  (EAFRD)15 
[RDR]. 

(16) 

(17) 

(18) 

In  order  to  facilitate  the  implementation  of  capping,  notably  with  regard  to  the 
procedures for granting direct payments to farmers and the corresponding transfers to 
rural development, net ceilings should be determined for each Member State to limit 
the payments to be made to farmers following the application of capping. To take into 
account  the  specificities  of  CAP  support  granted  in  accordance  with  Council 
Regulation (EC) No 247/2006 of 30 January 2006 laying down specific measures for 
agriculture in the outermost regions of the Union16 and  Council Regulation (EC) No 
1405/2006  of  18  September  2006  laying  down  specific  measures  for  agriculture  in 
favour of the smaller Aegean islands and amending Regulation (EC) No 1782/200317, 
and the fact that these direct payments are not subject to capping, the net ceiling for 
the Member States concerned should not include those direct payments. 

It should be specified that the provisions of this Regulation which could give rise to 
behaviour of a Member State possibly constitutive of State aid are excluded from the 
application  of  the  State  aid  rules  given  that  the  provisions  concerned  include 
appropriate  conditions  for  the  granting  of  support,  or  envisage  the  adoption  of  such 
conditions by the Commission, in order to prevent undue distortion of competition. 

In  order  to  achieve  the  objectives  of  the  CAP,  the  support  schemes  may  need  to  be 
adapted to changing developments, if necessary within short time-limits. Therefore, it 
is necessary to provide for a possible review of the schemes, in particular in the light 
of  economic  developments  or  the  budgetary  situation,  implying  that  beneficiaries 
cannot rely on support conditions remaining unchanged. 

(19)  Farmers  in  Member  States  which  acceded  to  the  European  Union  on  or  after  1  May 
2004 received direct payments following a phasing-in mechanism provided for in the 
respective Acts of Accession. For Bulgaria and Romania, such mechanism will be still 
in force in 2014 and 2015. Furthermore, those Member States were allowed to grant 
complementary national direct payments. The  possibility  for  granting  such  payments 
should be maintained for Bulgaria and Romania until they are fully phased-in. 

(20) 

In  order  to  ensure  a  better  distribution  of  support  amongst  agricultural  land  in  the 
Union,  including  in  those  Member  States  which  applied  the  single  area  payment 
scheme established under Regulation (EC) No 73/2009, a new basic payment scheme 
should replace the single payment scheme established under Council Regulation (EC) 

15 
16 
17 

OJ L […], […], p. […]. 
OJ L 42, 14.2.2006, p. 1. 
OJ L 265, 26.9.2006, p. 1. 

EN 

14 

   EN 

 
                                                 
No  1782/2003  of  29  September  2003  establishing  common  rules  for  direct  support 
schemes  under  the  common  agricultural  policy  and  establishing  certain  support 
schemes  for  farmers18,  and  continued  under  Regulation  (EC)  No  73/2009,  which 
combined previously existing support mechanisms into a single scheme of decoupled 
direct  payments.  Such  a  move  should  entail  the  expiry  of  payment  entitlements 
obtained under those Regulations and the allocation of new ones, although still based 
on  the  number  of  eligible  hectares  at  the  disposal  of  farmers  in  the  first  year  of 
implementation of the scheme.  

(21)  Due  to  the  successive  integration  of  various  sectors  into  the  single  payment  scheme 
and  the  ensuing  period  of  adjustment  granted  to  farmers,  it  has  become  increasingly 
difficult  to  justify  the  presence  of  significant  individual  differences  in  the  level  of 
support per hectare resulting from use of historical references. Therefore direct income 
support should be more equitably distributed between Member States, by reducing the 
link  to  historical  references  and  having  regard  to  the  overall  context  of  the  Union 
budget. To ensure a more equal distribution of direct support, while taking account of 
the  differences  that  still  exist  in  wage  levels  and  input  costs,  the  levels  of  direct 
support  per  hectare  should  be  progressively  adjusted.  Member  States  with  direct 
payments  below  the  level  of  90  %  of  the  average  should  close  one  third  of  the  gap 
between  their  current  level  and  this  level.  This  convergence  should  be  financed 
proportionally by all Member States with direct payments above the Union average. In 
addition, all payment entitlements activated in 2019 in a Member State or in a region 
should  have  a  uniform  unit  value  following  a  convergence  towards  this  value  that 
should  take  place  during  the  transition  period  in  linear  steps.  However,  in  order  to 
avoid  disruptive  financial  consequences  for  farmers,  Member  States  having  used  the 
single  payment  scheme,  and  in  particular  the  historical  model,  should  be  allowed  to 
partially  take  historical  factors  into  account  when  calculating  the  value  of  payment 
entitlements in the first year of application of the new scheme. The debate on the next 
Multiannual Financial Framework for the period starting in 2021 should also focus on 
the objective of complete convergence through the equal distribution of direct support 
across the European Union during that period. 

(22)  The experience gained with the application of the single payment scheme shows that 
some  of  its  main  elements  should  be  kept,  including  the  determination  of  national 
ceilings  to  ensure  that  the  total  level  of  support  does  not  exceed  current  budgetary 
constraints.  Member  States  should  also  continue  to  operate  a  national  reserve  that 
should  be  used  to  facilitate  the  participation  of  young  new  farmers  in  the  scheme  or 
may be used to take account of specific needs in certain regions. Rules on the transfer 
and use of payment entitlements should be kept but, where possible, simplified. 

(23) 

In order to guarantee the protection of the rights of beneficiaries and in order to clarify 
the specific situations that may arise in the application of the basic payment scheme, 
the  power  to  adopt  acts  in  accordance  with  Article  290  of  the  Treaty  should  be 
delegated to the Commission  for  the  purpose of adopting rules on eligibility and the 
access  in  respect  of  the  basic  payment  scheme  of  farmers  in  case  of  inheritance  and 
anticipated  inheritance,  inheritance  under  a  lease,  change  of  legal  status  or 
denomination and in the case of merger or scission of the holding; adopting rules on 
the  calculation  of  the  value  and  number  or  on  the  increase  in  the  value  of  payment 

18 

OJ L 270, 21.10.2003, p. 1. Regulation repealed and replaced by Regulation (EC) No 73/2009. 

EN 

15 

   EN 

 
                                                 
entitlements  in  relation  to  the  allocation  of  payment  entitlements,  including  rules  on 
the  possibility  of  a  provisional  value  and  number  or  of  a  provisional  increase  of 
payment entitlements allocated on the basis of the application from the farmer, on the 
conditions  for  establishing  the  provisional  and  definitive  value  and  number  of  the 
payment entitlements and on the cases where a sale or lease contract could affect the 
allocation  of  payment  entitlements;  adopting  rules  on  the  establishment  and 
calculation  of  the  value  and  number  of  payment  entitlements  received  from  the 
national  reserve;  adopting  rules  on  the  modification  of  the  unit  value  of  payment 
entitlements  in  the  case  of  fractions  of  payment  entitlements  and  criteria  for  the 
allocation of payment entitlements pursuant to the use of the national reserve and to 
farmers who did not apply for support in 2011. 

(24) 

 In order to ensure the proper management of payment entitlements, the power to adopt 
acts  in  accordance  with  Article  290  of  the  Treaty  should  be  delegated  to  the 
Commission  for  the  purpose  of  adopting  rules  on  the  declaration  and  activation  of 
payment entitlements. 

(25)  As regards hemp, specific measures should be kept to ensure that illegal crops cannot 
be hidden among the crops eligible for the basic payment, thereby adversely affecting 
the  common  market  organisation  for  hemp.  Hence,  payments  should  continue  to  be 
granted  only  for  areas  sown  to  varieties  of  hemp  offering  certain  guarantees  with 
regard  to  the  psychotropic  substance  content.  In  order  to  preserve  public  health,  the 
power to adopt acts in accordance with Article 290 of the Treaty should be delegated 
to the Commission for the purpose of adopting rules making the granting of payments 
conditional upon the use of certified seeds of certain hemp varieties and defining the 
procedure  for  the  determination  of  hemp  varieties  and  the  verification  of  their 
tetrahydrocannabinol content. 

(26)  One  of  the  objectives  of  the  new  CAP  is  the  enhancement  of  environmental 
performance  through  a  mandatory  "greening"  component  of  direct  payments  which 
will  support  agricultural  practices  beneficial  for  the  climate  and  the  environment 
applicable throughout the Union. For that purpose, Member States should use part of 
their  national  ceilings  for  direct  payments to  grant  an  annual  payment,  on  top  of  the 
basic  payment,  for  compulsory  practices  to  be  followed  by  farmers  addressing,  as  a 
priority,  both  climate  and  environment  policy  goals.  Those  practises  should  take  the 
form of simple, generalised, non-contractual and annual actions that go beyond cross-
compliance and are linked to agriculture such as crop diversification, maintenance of 
permanent  grassland  and  ecological  focus  areas.  The  compulsory  nature  of  those 
practises  should  also  concern  farmers  whose  holdings  are  fully  or  partly  situated  in 
"Natura 2000" areas covered by Council Directive 92/43/EEC of 21 May 1992 on the 
conservation  of  natural  habitats  and  of  wild  fauna  and  flora19  and  by  Directive 
2009/147/EC of the European Parliament and of the Council of 30 November 2009 on 
the  conservation  of  wild  birds20,  as  long  as  these  practises  are  compatible  with  the 
objectives of those Directives. Farmers who fulfil the conditions laid down in Council 
Regulation (EC) No 834/2007 of 28 June 2007 on organic production and labelling of 
organic  products  and  repealing  Regulation  (EEC)  No 2092/9121  should  benefit  from 

19 
20 
21 

OJ L 206, 22.7.1992, p. 7. 
OJ L 20, 26.1.2010, p. 7. 
OJ L 189, 20.7.2007, p. 1. 

EN 

16 

   EN 

 
                                                 
(27) 

(28) 

(29) 

(30) 

the  "greening"  component  without  fulfilling  any  further  obligation,  given  the 
recognised environmental benefits of the organic farming systems. Non-respect of the 
"greening" component should lead to penalties on the basis of Article 65 of Regulation 
(EU) No […] [HZR]. 

In order to ensure that the obligations referred to the crop diversification measure are 
applied  in  a  proportionate  and  non-discriminatory  way  and  lead  to  an  enhanced 
environmental  protection,  the  power  to  adopt  acts  in  accordance  with  Article  290  of 
the Treaty should be delegated to the Commission for the purpose of the adoption of 
the definition of 'crop' and of rules concerning the application of the measure. 

In order to ensure that the land under permanent grassland is maintained as such by the 
farmers, the power to adopt acts in accordance with Article 290 of the Treaty should 
be  delegated  to  the  Commission  for  the  purpose  of  the  adoption  of  rules  concerning 
the application of the measure. 

In  order  to  ensure  the  implementation  of  the  ecological  focus  area  measure  in  an 
efficient and coherent way, while taking into account Member States' specificities, the 
power to adopt acts in accordance with Article 290 of the Treaty should be delegated 
to the Commission for the purpose of the further definition of the types of ecological 
focus  areas  mentioned  under  that  measure  and  the  addition  and  definition  of  other 
types  of  ecological  focus  areas  that  can  be  taken  into  account  for  the  respect  of  the 
percentage referred to in that measure. 

In order to promote the sustainable development of agriculture in areas with specific 
natural constraints, Member States should be able to use part of their national ceilings 
for  direct  payments  to  grant  an  annual  area-based  payment,  on  top  of  the  basic 
payment, to all farmers operating in such areas. That payment should not replace the 
support given under rural development programs and should not be granted to farmers 
in  areas  which  were  designated  in  accordance  with  Council  Regulation  (EC)  No 
1698/2005 of 20 September 2005 on support for rural development by the  European 
Agricultural Fund for Rural Development (EAFRD)22 but have not been designated in 
accordance with Article 46(1) of Regulation (EU) No […] of the European Parliament 
and  of  the  Council  of  ….  on  support  for  rural  development  by  the  European 
Agricultural Fund for Rural Development  (EAFRD)23 [RDR]. 

(31)  The creation and development of new economic activity in the agricultural sector by 
young  farmers  is  financially  challenging  and  constitutes  an  element  that  should  be 
considered  in  the  allocation  and  targeting  of  direct  payments.  This  development  is 
essential  for  the  competitiveness  of  the  agricultural  sector  in  the  Union  and,  for  that 
reason,  an  income  support  to  young  farmers  commencing  their  agricultural  activities 
should be established in order to facilitate the initial establishment  of  young  farmers 
and  the  structural  adjustment  of  their  holdings  after  the  initial  setting  up.  Member 
States should be able to use part of their national ceilings for direct payments to grant 
an  annual  area-based  payment,  on  top  of  the  basic  payment,  to  young  farmers.  That 
payment  should  only  be  granted  during  a  period  of  maximum  five  years,  since  it 

22 
23 

OJ L 277, 21.10.2005, p.1. Regulation repealed and replaced by Regulation (EU) No…[RDR]  
OJ L…… 

EN 

17 

   EN 

 
                                                 
should only cover the initial period of the life of the business and should not become 
an operating aid. 

(32) 

In  order  to  guarantee  the  protection  of  the  rights  of  beneficiaries  and  to  avoid 
discrimination among them, the power to adopt acts in accordance with Article 290 of 
the  Treaty  should  be  delegated  to  the  Commission  for  the  purpose  of  defining  the 
conditions  under  which  a  legal  person  may  be  considered  eligible  for  receiving  the 
payment  for  young  farmers,  in  particular  the  application  of  the  age-limit  to  one  ore 
more natural persons participating in the legal person. 

(33)  Member  States  should  be  allowed  to  use  part  of  their  national  ceilings  for  direct 
payments for coupled support in certain sectors in clearly defined cases. The resources 
that  may  be  used  for  any  coupled  support  should  be  limited  to  an  appropriate  level, 
while allowing such support to be granted in Member States or in their specific regions 
facing  particular  situations  where  specific  types  of  farming  or  specific  agricultural 
sectors are particularly important for economic, environmental and/or social reasons. 
Member States should be allowed to use up to 5 % of their national ceilings for this 
support, or 10 % in case their level of coupled support in at least one of the years of 
the  period  2010-2013  exceeded  5  %.  However,  in  duly  justified  cases  where  certain 
sensitive needs in a region are demonstrated, and upon approval by the Commission, 
Member  States  should  be  allowed  to  use  more  than  10  %  of  their  national  ceiling. 
Coupled support should only be granted to the extent necessary to create an incentive 
to maintain current levels of production in those regions. This support should also be 
available  to  farmers  holding,  on  31  December  2013,  special  payment  entitlements 
allocated under Regulation (EC) No 1782/2003 and Regulation (EC) No 73/2009 and 
who  do  not  have  eligible  hectares  for  the  activation  of  payment  entitlements.  As 
regards  the  approval  of  voluntary  coupled  support  exceeding  10  %  of  the  annual 
national  ceiling  fixed  per  Member  State,  the  Commission  should  further  be 
empowered  to  adopt  implementing  acts  without  applying  Regulation  (EU)  No 
182/2011. 

(34) 

In  order  to  ensure  efficient  and  targeted  use  of  Union  funds  and  to  avoid  double 
funding under other similar support instruments, the power to adopt acts in accordance 
with Article 290 of the Treaty should be delegated to the Commission for the purpose 
of  defining  the  adoption  of  rules  concerning  the  conditions  for  granting  voluntary 
coupled support and of rules on its consistency with other Union measures and on the 
cumulation of support. 

(35)  As  regards  support  to  the  cotton  sector,  Regulation  (EC)  No  73/2009  considered 
necessary that part of it continued to be linked to the cultivation of cotton through a 
crop specific payment per eligible hectare to ensure against any risk  of  disruption to 
production  in  the  cotton  producing  regions,  taking  into  account  all  factors  that 
influence  this  choice.  This  choice  should  be  maintained  in  accordance  with  the 
objectives set out in Protocol No 4 on cotton attached to the 1979 Act of Accession. 

(36) 

In order to enable the efficient application of the crop-specific payment for cotton, the 
power to adopt acts in accordance with Article 290 of the Treaty should be delegated 
to  the  Commission  for  the  purpose  of  the  adoption  of  rules  and  conditions  for  the 
authorisation of land and varieties as regards the crop specific payment for cotton and 
of rules on the conditions for the granting of that specific payment, on the eligibility 
requirements and the agronomic practices, on criteria for the approval of inter-branch 

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organisations,  on  obligations  for  producers  and  on  the  situation  where  the  approved 
inter-branch organisation does not respect those criteria. 

(37)  Chapter  2  of  Council  Regulation  (EC)  No  637/2008  of  23  June  2008  amending 
Regulation (EC) No 1782/2003 and establishing national restructuring programmes for 
the cotton sector24 provided that each cotton producing Member State has, either every 
four  years  and  for  the  first  time  by  1  January  2009,  to  submit  to  the  Commission  a 
draft  four-year  restructuring  programme  or  submit  to  the  Commission,  by  31 
December  2009,  a  single  draft  modified  restructuring  programme  for  a  duration  of 
eight years. Experience has shown that the restructuring of the cotton sector would be 
better  served  through  other  measures,  including  those  under  rural  development 
programming  financed  under  Regulation  (EU)  No  […]  [RDR],  which  would  also 
allow  for  a  greater  co-ordination  with  measures  in  other  sectors.  However,  the 
acquired  rights  and  legitimate  expectations  of  undertakings  already  involved  in 
restructuring programmes should be respected. Therefore the ongoing programmes of 
four  or  eight  years  should  be  allowed  to  continue  to  their  end.  At  the  end  of  that 
period, however, the programmes should end. The funds available from the four-year 
programmes  could  then  be  integrated  into  the  available  Union  funds  for  measures 
under rural development from 2014. The funds available after the end of the eight year 
programmes would not be useful in rural development programmes in 2018 given the 
programming  period  and  could  therefore  be  more  usefully  transferred  to  support 
schemes under this Regulation, as already provided for in the second sub-paragraph of 
Article  5(2)  of  Regulation  (EC)  No  637/2008.  Regulation  (EC)  No  637/2008  will 
therefore become obsolete from 1 January 2014 or 1 January 2018 as regards Member 
States which have, respectively, four or eight-year programmes. Regulation (EC) No 
637/2008 should therefore be repealed. 

(38)  A  simple  and  specific  scheme  for  small  farmers  should  be  put  in  place  in  order  to 
reduce  the  administrative  costs  linked  to  the  management  and  control  of  direct 
support.  For that purpose,  a  lump-sum payment replacing all  direct  payments should 
be  established.  Rules  seeking  simplification  of  formalities  should  be  introduced  by 
reducing,  amongst  others,  the  obligations  imposed  on  small  farmers  such  as  those 
related to the application for support, to agricultural practices beneficial for the climate 
and the environment, to cross-compliance and to controls as laid down in Regulation 
(EU) No […] [HZR] without endangering the achievement of the overall objectives of 
the  reform,  it  being  understood  that  Union  legislation  as  referred  to  in  Annex  II  to 
Regulation (EU) No […] [HZR] applies to small farmers. The objective of that scheme 
should  be  to  support  the  existing  agricultural  structure  of  small  farms  in  the  Union 
without  countering  the  development  towards  more  competitive  structures.  For  that 
reason, access to the scheme should be limited to existing holdings.  

(39) 

In order to protect the rights of the farmers, the power to adopt acts in accordance with 
Article 290 of the Treaty should be delegated to the Commission for the purpose of the 
adoption  of  rules  concerning  participation  in  the  small  farmers  scheme  where  the 
situation of the participating farmer changes. 

(40) 

In  the  interest  of  simplification  and  to  take  into account  the  specific  situation  of  the 
outermost  regions,  direct  payments  in  those  regions  should  be  managed  within  the 

24 

OJ L 178, 5.7.2008, p. 1. 

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support programmes established by Regulation (EC) No 247/2006. As a consequence, 
provisions  in  this  Regulation  relating  to  the  basic  payment  scheme  and  related 
payments and to coupled support should not apply to those regions. 

(41)  Notifications  are  needed  from  Member  States  for  the  purpose  of  applying  this 
Regulation,  and  for  the  purpose  of  monitoring,  analysing  and  managing  direct 
payments.    In  order  to  ensure  the  good  application  of  the  rules  contained  in  this 
Regulation,  the  power  to  adopt  acts  in  accordance  with  Article  290  of  the  Treaty 
should  be  delegated  to  the  Commission  for  the  purpose  of  the  adoption  of  the 
necessary  measures  regarding  notifications  to  be  made  by  Member  States  or  for  the 
purpose of checking, controlling, monitoring, evaluating and auditing direct payments, 
implementing  international  agreements,  including  notification  requirements  under 
those agreements and of rules laying down the nature and type of the information to be 
notified, on the methods of notification and on the access rights to the information or 
information systems and the conditions and means of publication of the information 

(42)  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  data25  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 data26 are applicable. 

(43)  With a view to strengthening their rural development policy, Member States should be 
given  the  possibility  to  transfer  funds  from  their  direct  payments  ceiling  to  their 
support  assigned  for  rural development. At the same time, Member States  where the 
level of direct support remains lower than 90 % of the Union average level of support 
should be given the possibility to transfer funds from their support assigned for rural 
development  to  their  direct  payments  ceiling.  Such  choices  should  be  made,  within 
certain limits, once and for the whole period of application of this Regulation. 

(44) 

In  order  to  ensure  a  smooth  transition  from  the  arrangements  provided  for  in 
Regulation (EC) No 73/2009 to those laid down in this Regulation, the power to adopt 
acts  in  accordance  with  Article  290  of  the  Treaty  should  be  delegated  to  the 
Commission  for  the  purpose  of  adopting  the  necessary  measures  to  protect  the 
acquired rights and legitimate expectations of farmers, 

HAVE ADOPTED THIS REGULATION: 

25 
26 

OJ L 281, 23.11.1995, p.31. 
OJ L 8, 12.1.2001, p. 1. 

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TABLE OF CONTENTS 

EXPLANATORY MEMORANDUM ....................................................................................... 2 

1. 

2. 

3. 

4. 

CONTEXT OF THE PROPOSAL............................................................................... 2 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENT ............................................................................................ 5 

LEGAL ELEMENTS OF THE PROPOSAL .............................................................. 7 

BUDGETARY IMPLICATION .................................................................................. 9 

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 ........................................................................................... 10 

TITLE I  SCOPE AND DEFINITIONS .................................................................................. 23 

TITLE II  GENERAL PROVISIONS ON DIRECT PAYMENTS ......................................... 26 

CHAPTER 1  Common rules on direct payments.................................................................... 26 

CHAPTER 2  Provisions applying to Bulgaria and Romania.................................................. 30 

TITLE III  BASIC PAYMENT SCHEME AND RELATED PAYMENTS ........................... 31 

CHAPTER 1  Basic payment scheme ...................................................................................... 31 

Section 1  Setting up of the basic payment scheme ................................................................. 31 

Section 2  National reserve....................................................................................................... 34 

Section 3  Implementation of the basic payment scheme ........................................................ 36 

CHAPTER 2  Payment for agricultural practises beneficial for the climate and the 
environment.............................................................................................................................. 39 

CHAPTER 3  Payment for areas with natural constraints ....................................................... 42 

CHAPTER 4  Payment for young farmers............................................................................... 43 

TITLE IV  COUPLED SUPPORT........................................................................................... 45 

CHAPTER 1  Voluntary coupled support................................................................................ 45 

CHAPTER 2  Crop specific payment for cotton...................................................................... 48 

TITLE V  Small farmers scheme ............................................................................................. 51 

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TITLE VI  national restructuring programmes for the cotton sector ....................................... 53 

TITLE VII  FINAL PROVISIONS .......................................................................................... 54 

CHAPTER 1  Notifications and emergency ............................................................................ 54 

CHAPTER 2  Delegations of powers and implementing provisions ....................................... 55 

CHAPTER 3  Transitional and final provisions....................................................................... 56 

ANNEX I  List of support schemes ......................................................................................... 58 

ANNEX II  National ceilings referred to in Article 6 .............................................................. 59 

ANNEX III  Net ceilings referred to in Article 7..................................................................... 60 

ANNEX IV  Coefficients to be applied under Article 10(1).................................................... 61 

ANNEX V  Financial provisions applying to Bulgaria and Romania referred to in Articles 16 
and 17 ....................................................................................................................................... 62 

ANNEX VI  Average size of agricultural holding to be applied under Article 36(5) ............. 63 

ANNEX VII  CORRELATION TABLE ................................................................................. 64 

LEGISLATIVE FINANCIAL STATEMENT......................................................................... 72 

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TITLE I 

SCOPE AND DEFINITIONS 

Article 1 

Scope 

This Regulation establishes: 

(a) 

common  rules  on  payments  granted  directly  to  farmers  under  the  support  schemes 
listed in Annex I (hereinafter referred to as "direct payments"); 

(b) 

specific rules concerning: 

(i) 

a  basic  payment  for  farmers  (hereinafter  referred  to  as  the  ‘basic  payment 
scheme’); 

(ii) 

a  payment  for  farmers  observing  agricultural  practises  beneficial  for  the 
climate and the environment; 

(iii)  a voluntary payment for farmers in areas under natural constraints; 

(iv)  a payment for young farmers who commence their agricultural activity; 

(v) 

a voluntary coupled support scheme; 

(vi)  a crop specific payment for cotton; 

(vii)  a simplified scheme for small farmers;  

(viii)  a framework to enable Bulgaria and Romania to complement direct payments. 

Article 2 

Amendment of Annex I 

The Commission shall be empowered to adopt delegated acts in accordance with Article 55 
for the purpose of amending the list of support schemes set out in Annex I. 

Article 3 

Application to the outermost regions and the smaller Aegean islands 

Article 11 shall not apply to the regions of the Union referred to in Article 349 of the Treaty, 
hereinafter  referred  to  as  "outermost  regions"  and  to  the  direct  payments  granted  in  the 
smaller Aegean islands in accordance with Regulation (EC) No 1405/2006.  

Titles III, IV and V shall not apply to the outermost regions. 

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Article 4 

Definitions 

1. 

(a) 

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

"farmer"  means  a  natural  or  legal  person,  or  a  group  of  natural  or  legal  persons, 
whatever legal status is granted to the group and its members by national law, whose 
holding is situated within the Union territory, as defined in Article 52 of the Treaty 
on  European  Union  in  conjunction  with  Articles  349  and  355  of  the  Treaty  on  the 
Functioning of the European Union, and who exercises an agricultural activity;  

(b) 

"holding" means all the units used for agricultural activities and managed by a farmer 
situated within the territory of the same Member State; 

(c) 

"agricultural activity" means: 

– 

– 

– 

rearing  or  growing  of  agricultural  products  including  harvesting,  milking, 
breeding animals and keeping animals for farming purposes,  

maintaining the agricultural area in a state which makes it suitable for grazing 
or  cultivation  without  any  particular  preparatory  action  going  beyond 
traditional agricultural methods and machineries, or 

carrying  out  a  minimum  activity  to  be  established  by  Member  States  on 
agricultural areas naturally kept in a state suitable for grazing or cultivation; 

"agricultural products" means the products listed in Annex I to the Treaty, with the 
exception of fishery products, as well as cotton; 

"agricultural area" means any area taken up by arable land, permanent grassland or 
permanent crops; 

"arable  land"  means  land  cultivated  for  crop  production  or  areas  available  for  crop 
production  but  laying  fallow,  including  areas  set  aside  in  accordance  with  Articles 
22, 23 and 24 of Regulation (EC) No 1257/1999, with Article 39 of Regulation (EC) 
No 1698/2005 and with Article 29 of Regulation (EU) No […] [RDR], irrespective 
of whether or not that land is under greenhouses or under fixed or mobile cover; 

"permanent  crops"  means  non-rotational  crops  other  than  permanent  grassland  that 
occupy  the  land  for  five  years  or  longer  and  yield  repeated  harvests,  including 
nurseries, and short rotation coppice; 

"permanent grassland" means land used to grow grasses or other herbaceous forage 
naturally (self-seeded) or through cultivation (sown) and that has not been included 
in  the  crop  rotation  of  the  holding  for  five  years  or  longer;  it  may  include  other 
species  suitable  for  grazing  provided  that  the  grasses  and  other  herbaceous  forage 
remain predominant; 

"grasses or other herbaceous forage" means all herbaceous plants traditionally found 
in  natural  pastures  or  normally  included  in  mixtures  of  seeds  for  pastures  or 
meadows in the Member State (whether or not used for grazing animals); 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

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(j) 

"nurseries" means the following areas of young ligneous (woody) plants grown in the 
open air for subsequent transplantation: 

– 

– 

– 

– 

– 

vine and root-stock nurseries; 

fruit tree and berries nurseries;  

ornamental nurseries; 

commercial  nurseries  of  forest  trees  (excluding  those  for  the  holding's  own 
requirements grown within woodland); 

trees  and  bushes  for  planting  in  gardens,  parks,  at  the  roadside  and  on 
embankments  (e.g.  hedgerow  plants,  rose  trees  and  other  ornamental  bushes, 
ornamental conifers), including in all cases their stocks and young seedlings. 

(k) 

"short rotation coppice" means areas planted with tree species of CN code 06029041 
to be defined by Member States, that consist of woody, perennial crops, the rootstock 
or stools remaining in the ground after harvesting, with new shoots emerging in the 
following  season  and  with  a  maximum  harvest  cycle  to  be  determined  by  the 
Member States. 

2. 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article 55 for the purposes of: 

(a) 

(b) 

(c) 

laying  down  further  definitions  regarding  the  access  to  support  under  this 
Regulation; 

establishing  the  framework  within  which  Member  States  shall  define  the 
minimum activities to be carried out on areas naturally kept in a state suitable 
for grazing or cultivation; 

establishing  the  criteria  to  be  met  by  farmers  in  order  to  be  deemed  to  have 
respected the obligation of maintaining the agricultural area in a state suitable 
for grazing or cultivation as referred to in point (c) of paragraph 1; 

(d) 

establishing  the  criteria  to  determine  the  predominance  of  grasses  and  other 
herbaceous forage for the purpose of point (h) of paragraph 1.  

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TITLE II 

GENERAL PROVISIONS ON DIRECT PAYMENTS 

CHAPTER 1 

Common rules on direct payments 

Article 5 

Financing of direct payments 

The support schemes listed in Annex I to this Regulation shall be financed in accordance with 
Article 4(1)(b) of Regulation (EU) No […] [HZR]. 

1. 

2. 

1. 

Article 6 

National ceilings 

For each Member State and each year, the national ceiling comprising the total value 
of  all  allocated  entitlements,  of  the  national  reserve  and  of  the  ceilings  fixed  in 
accordance with Articles 33, 35, 37 and 39 shall be as set out in Annex II. 

In order to take account of the developments relating to the total maximum amounts 
of direct payments that may be granted, including those resulting from the decisions 
to  be  taken  by  the  Member  States  in  accordance  with  Article  14,  the  Commission 
shall  be  empowered  to  adopt  delegated  acts  in  accordance  with  Article  55  for  the 
purpose of reviewing the national ceilings set out in Annex II. 

Article 7 

Net ceilings 

Without  prejudice  to  Article  8,  the  total  amount  of  direct  payments  which  may  be 
granted in a Member State pursuant to Titles III, IV and V in respect of a calendar 
year, after application of Article  11, shall not be  higher than the ceilings  set  out in 
Annex III to this Regulation.  

In order to avoid that the total amount of direct payments is higher than the ceilings 
set out in Annex III, Member States shall make a linear reduction in the amounts of 
all direct payments with the exception of direct payments granted under Regulations 
(EC) No 247/2006 and (EC) No 1405/2006. 

2. 

For each Member State and each year, the estimated product of capping as referred to 
in  Article  11,  which  is  reflected  by  the  difference  between  the  national  ceilings  set 

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out in Annex II, to which is added the amount available in accordance with Article 
44, and the net ceilings set out in Annex III, is made available as Union support for 
measures  under  rural  development  programming  financed  under  the  EAFRD  as 
specified in Regulation (EU) No […] [RDR].  

3. 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article 55 for the purpose of reviewing the ceilings set out in Annex III. 

Article 8 

Financial discipline 

1. 

2. 

3. 

The  adjustment  rate  determined  in  accordance  with  Article  25  of  Regulation  (EU) 
No […]  [HZR]  shall  only  apply  to direct  payments  in  excess  of  EUR  5  000  to  be 
granted to farmers in the corresponding calendar year. 

In  the  framework  of  the  gradual  introduction  of  direct  payments  as  provided  for  in 
Article 16, paragraph 1 of this Article shall apply to Bulgaria and Romania as from 
1 January 2016.  

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article 55 concerning rules on the basis for calculation of reductions to be applied by 
Member States to farmers pursuant to paragraphs 1 and 2 of this Article. 

Article 9 

Active farmer 

1. 

No direct payments shall be granted to natural or legal persons, or to groups of natural 
or legal persons, where one of the following applies: 

the annual amount of direct payments is less than 5 % of the total receipts they 

(a) 
obtained from non-agricultural activities in the most recent fiscal year; or 

(b) 
their  agricultural  areas  are  mainly  areas  naturally  kept  in  a  state  suitable  for 
grazing or cultivation and they do not carry out on those areas the minimum activity 
established by Member States in accordance with Article 4(1)(c). 

2. 

3. 

Paragraph  1  shall  not  apply  to  farmers  who  received  less  than  EUR  5  000  of  direct 
payments for the previous year. 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article 55 for the purposes of laying down: 

(a) 
criteria to establish the amount of direct payments relevant for the purpose of 
paragraphs 1 and 2, in particular in the first year of allocation of payment entitlements 
where the value of the payment entitlements is not yet definitively established as well 
as for new farmers; 

 exceptions from the rule that the receipts during the most recent fiscal year are 

(b) 
to be taken into account where those figures are not available; and 

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criteria  to  establish  when  a  farmer's  agricultural  area  is  to  be  considered  as 

(c) 
mainly areas naturally kept in a state suitable for grazing or cultivation. 

Article 10 

Minimum requirements for receiving direct payments 

1. 

Member  States  shall  decide  not  to  grant  direct  payments  to  a  farmer  in  one  of  the 
following cases: 

(a)  where the total amount of direct payments claimed or due to be granted before 
the  reductions  and  exclusions  provided  for  in  Article  65  of  Regulation  (EU) 
No […] [HZR] in a given calendar year is less than EUR 100;  

(b)  where the eligible area of the holding for which direct payments are claimed or 
due  to  be  granted  before  the  reductions  and  exclusions  provided  for  in 
Article 65 of Regulation (EU) No […] [HZR] is less than one hectare. 

In  order  to  take  account  of  the  structure  of  their  agricultural  economies,  Member 
States may adjust the thresholds referred to in points (a) and (b) within the limits set 
out in Annex IV. 

Where  farmers  receiving  the  animal-related  coupled  support  referred  to  in  Title  IV 
hold fewer hectares than the threshold selected by a Member State for the purposes 
of point (b) of paragraph 1, that Member State shall apply point (a) of paragraph 1. 

The Member States concerned may decide not to apply paragraph 1 in the outermost 
regions and in the smaller Aegean Islands. 

In Bulgaria and Romania, for the years 2014 and 2015, the amount claimed or due to 
be granted as referred to in paragraph 1 shall be calculated on the basis of the amount 
set out in Annex V.A for the corresponding year. 

2. 

3. 

4. 

Article 11 

Progressive reduction and capping of the payment 

1. 

The amount of direct payments to be granted to a farmer under this Regulation in a 
given calendar year shall be reduced as follows: 

– 

– 

– 

– 

by 20 % for the tranche of more than EUR 150 000 and up to EUR 200 000;  

by 40 % for the tranche of more than EUR 200 000 and up to EUR 250 000;  

by 70 % for the tranche of more than EUR 250 000 and up to EUR 300 000; 

by 100 % for the tranche of more than EUR 300 000. 

2. 

The amount referred to in paragraph 1 shall be calculated by subtracting the salaries 
effectively paid and declared by the farmer in the previous year, including taxes and 
social contributions related to employment, from the total amount of direct payments 

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initially  due  to  the  farmer  without  taking  into  account  the  payments  to  be  granted 
pursuant to Chapter 2 of Title III of this Regulation. 

3. 

Member  States  shall  ensure  that  no  payment  is  made  to  farmers  for  whom  it  is 
established that, as from the date of publication of the Commission proposal for this 
Regulation, they artificially created the conditions to avoid the effects of this Article. 

Article 12 

Multiple claims 

The area corresponding to the number of eligible hectares in respect of which an application 
for a basic payment has been submitted by a farmer pursuant to Chapter 1 of Title III may be 
the  subject  of  an  application  for  any  other  direct  payment  as  well  as  for  any  other  aid  not 
covered by this Regulation, save as explicitly provided otherwise in this Regulation. 

Article 13 

State aid 

By way of derogation from Article 146(1) of Regulation [sCMO], 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. 

Article 14  

Flexibility between pillars 

1. 

2. 

Before  1  August  2013,  Member  States  may  decide  to  make  available  as  additional 
support  for  measures  under  rural  development  programming  financed  under  the 
EAFRD  as  specified  under  Regulation  (EU)  No  […]  [RDR],  up  to  10  %  of  their 
annual national ceilings for calendar years 2014 to 2019 as set out in Annex II to this 
Regulation.  As  a  result,  the  corresponding  amount  shall  no  longer  be  available  for 
granting direct payments. 

The decision referred to in the first subparagraph shall be notified to the Commission 
by the date referred to in that subparagraph. 

The percentage notified in accordance with the second subparagraph shall be the same 
for the years referred to in the first subparagraph. 

Before 1 August 2013, Bulgaria, Estonia, Finland, Latvia, Lithuania, Poland, Portugal, 
Romania,  Slovakia,  Spain,  Sweden  and  the  United-Kingdom  may  decide  to  make 
available as direct payments under this Regulation up to 5 % of the amount allocated 
to  support  for  measures  under  rural  development  programming  financed  under  the 
EAFRD in the period 2015-2020 as specified under Regulation (EU) No […] [RDR]. 
As  a  result,  the  corresponding  amount  shall  no  longer  be  available  for  support 
measures under rural development programming. 

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The decision referred to in the first subparagraph shall be notified to the Commission 
by the date referred to in that subparagraph. 

The percentage notified in accordance with the second subparagraph shall be the same 
for the years referred to in the first subparagraph of paragraph 1. 

Article 15 

Review 

Support schemes listed in Annex I shall apply without prejudice to a possible review at any 
time in the light of economic developments and the budgetary situation. 

CHAPTER 2 

Provisions applying to Bulgaria and Romania 

Article 16 

Gradual introduction of direct payments 

In Bulgaria and Romania, the national ceilings for payments referred to in Articles 33, 35, 37, 
39 and 51 shall in 2014 and 2015 be established on the basis of the amounts set out in Annex 
V.A. 

Article 17 

1. 

2. 

3. 

4. 

Complementary national direct payments and direct payments 

In 2014 and 2015, Bulgaria and Romania may use national direct payments in order 
to  complement  payments  granted  under  the  basic  payment  scheme  referred  to  in 
Chapter  1  of  Title  III  and,  in  the  case  of  Bulgaria,  also  to  complement  payments 
granted  under  the  crop  specific  payment  for  cotton  referred  to  in  Chapter  2  of 
Title IV. 

The  total  amount  of  complementary  national  direct  payments  to  the  basic  payment 
scheme  which  may  be  granted  in  respect  of  2014  and  2015  shall  not  exceed  the 
amounts set out in Annex V.B for each of those years. 

For Bulgaria, the total amount of complementary national direct payments to the crop 
specific payment for cotton shall not exceed the amounts set out in Annex V.C for 
each of the years referred to in that Annex. 

Complementary  national  direct  payments  shall  be  granted  in  accordance  with 
objective criteria and in such a way as to ensure equal treatment between farmers and 
to avoid market and competition distortions. 

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TITLE III 

BASIC PAYMENT SCHEME AND 
RELATEDPAYMENTS 

CHAPTER 1 

Basic payment scheme 

SECTION 1 

SETTING UP OF THE BASIC PAYMENT SCHEME 

Article 18 

Payment entitlements 

1. 

2. 

1. 

2. 

3. 

Support under the basic payment scheme shall be available to farmers if they obtain 
payment  entitlements  under  this  Regulation  through  first  allocation  pursuant  to 
Article 21, from the national reserve pursuant to Article 23 or by transfer pursuant to 
Article 27. 

Payment entitlements obtained under the single payment scheme in accordance with 
Regulation  (EC)  No  1782/2003  and  with  Regulation  (EC)  No  73/2009  shall  expire 
on 31 December 2013. 

Article 19 

Basic payment scheme ceiling 

The  Commission  shall,  by  means  of  implementing  acts,  set  the  annual  national 
ceiling for the basic payment scheme by deducting from the annual national ceiling 
established in Annex II the annual amounts to be set in accordance with Articles 33, 
35,  37  and  39.  Those  implementing  acts  shall  be  adopted  in  accordance  with  the 
examination procedure referred to in Article 56(2). 

For  each  Member  State  and  each  year,  the  total  value  of  all  allocated  payment 
entitlements  and  the  national  reserve  shall  equal  the  respective  national  ceiling 
adopted by the Commission pursuant to paragraph 1. 

In  case  of  modification  of  the  ceiling  adopted  by  the  Commission  pursuant  to 
paragraph 1 as compared to the previous year, a Member State shall linearly reduce 
or increase the value of all payment entitlements in order to ensure compliance with 
paragraph 2. 

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1. 

2. 

3. 

4. 

5. 

1. 

2. 

Article 20 

Regional allocation of the national ceilings 

Member  States  may  decide,  before  1  August  2013,  to  apply  the  basic  payment 
scheme at regional level. In that case they shall define the regions in accordance with 
objective  and  non-discriminatory  criteria  such  as  their  agronomic  and  economic 
characteristics  and  their  regional  agricultural  potential,  or  their  institutional  or 
administrative structure. 

Member States shall divide the national ceiling referred to in Article 19(1) between 
the regions in accordance with objective and non-discriminatory criteria. 

Member  States  may  decide  that  the  regional  ceilings  shall  be  subject  to  annual 
progressive  modifications  in  accordance  with  pre-established  annual  steps  and 
objective  and  non-discriminatory  criteria  such  as  the  agricultural  potential  or 
environmental criteria. 

To  the  extent  necessary  to  respect  the  applicable  regional  ceilings  determined  in 
accordance  with  paragraph  2  or  3,  Member  States  shall  make  a  linear  reduction  or 
increase in the value of the payment entitlements in each of their regions. 

The  Member  States  shall  notify  the  Commission  by  1  August  2013  of  the  decision 
referred  to  in  paragraph  1,  together  with  the  measures  taken  for  the  application  of 
paragraphs 2 and 3. 

Article 21 

First allocation of payment entitlements 

Subject  to  paragraph  2,  payment  entitlements  shall  be  allocated  to  farmers  if  they 
apply for allocation of payment entitlements under the basic payment scheme by 15 
May 2014 except in case of force majeure and exceptional circumstances. 

Farmers  who,  in  2011,  activated  at  least  one  payment  entitlement  under  the  single 
payment scheme or claimed support under the single area payment scheme, both in 
accordance with Regulation (EC) No 73/2009, shall receive payment entitlements the 
first year of application of the basic payment scheme provided they are entitled to be 
granted direct payments in accordance with Article 9. 

By  way  of  derogation  from  the  first  subparagraph,  farmers  shall  receive  payment 
entitlements the first year of application of the basic payment scheme, provided they 
are  entitled  to  be  granted  direct  payments  in  accordance  with  Article  9  and  that  in 
2011: 

under  the  single  payment  scheme,  they  did  not  activate  any  entitlement    but 

(a) 
produced exclusively fruits, vegetables and/or cultivate exclusively vineyard; 

(b) 
under the single area payment scheme, they did not claim any support and had 
only agricultural land that was not in good agricultural conditions on 30 June 2003 as 
provided for in Article 124(1) of Regulation (EC) No 73/2009, 

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3. 

4. 

1. 

2. 

3. 

Except  in  the  case  of  force  majeure  or  exceptional  circumstances,  the  number  of 
payment  entitlements  allocated  per  farmer  shall  be  equal  to  the  number  of  eligible 
hectares, within the meaning of Article 25(2), the farmer declares in accordance with 
Article 26(1) for 2014.  

In  case  of  sale  or  lease  of  their  holding  or  part  of  it,  natural  or  legal  persons 
complying  with  paragraph  2  may,  by  contract signed  before 15  May 2014, transfer 
the  right  to  receive  payment  entitlements  as  referred  to  in  paragraph  1  to  only  one 
farmer provided that the latter complies with the conditions laid down in Article 9.  

The Commission shall, by means of implementing acts, adopt rules on applications 
for allocation of payment entitlements submitted in the year of allocation of payment 
entitlements  where  those  payment  entitlements  may  not  be  definitively  established 
yet  and  where  that  allocation  is  affected  by  specific  circumstances.  Those 
implementing  acts  shall  be  adopted  in  accordance  with  the  examination  procedure 
referred to in Article 56(2). 

Article 22 

Value of payment entitlements and convergence 

For each relevant year, the unit value of payment entitlements shall be calculated by 
dividing  the  national  or  regional  ceiling  established  under  Articles  19  or  20,  after 
application  of  the  linear  reduction  provided  for  in  Article  23(1),  by  the  number  of 
payment  entitlements  allocated  at  national  or  regional  level  according  to  Article 
21(2) for 2014. 

Member  States  which  applied  the  single  payment  scheme  as  provided  for  in 
Regulation (EC) No 73/2009, may limit the calculation of the unit value of payment 
entitlements provided for in paragraph 1 to an amount corresponding to no less than 
40 %  of  the  national  or  regional  ceiling  established  under  Articles  19  or  20,  after 
application of the linear reduction provided for in Article 23(1). 

Member  States  making  use  of  the  possibility  provided  for  in  paragraph  2  shall  use 
the  part  of  the  ceiling  which  remains  after  the  application  of  that  paragraph  to 
increase the value of payment entitlements in cases where the total value of payment 
entitlements held by a farmers under the basic payment scheme calculated according 
to  paragraph  2  is  lower  than  the  total  value  of  payment  entitlements,  including 
special entitlements, he held on 31 December 2013 under the single payment scheme 
in accordance with Regulation (EC) No 73/2009. To this end, the national or regional 
unit  value  of  each  of  the  payment  entitlement  of  the  farmer  concerned  shall  be 
increased  by  a  share  of  the  difference  between  the  total  value  of  the  payment 
entitlements  under  the  basic  payment  scheme  calculated  according  to  paragraph  2 
and the total value of payment entitlements, including special entitlements, which the 
farmer held on 31 December 2013 under the single payment scheme in accordance 
with Regulation (EC) No 73/2009. 

For  the  calculation  of  the  increase,  a  Member  State  may  also  take  into  account  the 
support granted in calendar year 2013 pursuant to Articles 52, 53(1), and 68(1)(b), of 
Regulation  (EC)  No  73/2009  provided  that  the  Member  State  has  decided  not  to 

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4. 

5. 

6. 

apply  the  voluntary  coupled  support  pursuant  to  Title  IV  of  this  Regulation  to  the 
relevant sectors. 

For  the  purpose  of  the  first  subparagraph,  a  farmer  is  considered  to  hold  payment 
entitlements  on  31  December  2013  where  payment  entitlements  were  allocated  or 
definitively transferred to him by that date.  

For  the  purposes  of  paragraph  3,  a  Member  State  may,  on  the  basis  of  objective 
criteria,  provide  that,  in  cases  of  sale  or  grant  or  expiry  of  all  or  part  of  a  lease  of 
agricultural areas after the date fixed pursuant to Article 35 of Regulation (EC) No 
73/2009  and  before  the  date  fixed  pursuant  to  Article  26  of  this  Regulation,  the 
increase, or part of the increase, in the value of payment entitlements that would be 
allocated  to  the  farmer  concerned  shall  revert  to  the  national  reserve  where  the 
increase would lead to a windfall profit for the farmer concerned. 

Those  objective  criteria  shall  be  established  in  such  a  way  as  to  ensure  equal 
treatment between farmers and to avoid market and competition distortions and shall 
include, at least, the following: 

(a) 

a minimum duration for the lease; 

(b) 

the  proportion  of  the  payment  received  which  shall  revert  to  the  national 
reserve. 

As of claim year 2019 at the latest, all payment entitlements in a Member State or, in 
case of application of Article 20, in a region, shall have a uniform unit value. 

When  applying  paragraphs  2  and  3,  Member  States,  acting  in  compliance  with  the 
general principles of Union law, shall move towards approximating the value of the 
payment entitlements at national or regional level. To this end, Member States shall 
fix  the  steps  to  be  taken  by  1  August  2013.  Those  steps  shall  include  annual 
progressive modifications of the payment entitlements in accordance with objective 
and non-discriminatory criteria. 

The steps referred to in the first subparagraph shall be notified to the Commission by 
the date referred to in that subparagraph. 

SECTION 2 

NATIONAL RESERVE 

Article 23 

Establishment and use of the national reserve 

1. 

Each  Member  State  shall  establish  a  national  reserve.  For  that  purpose,  in  the  first 
year of application of the basic payment scheme, Member States shall proceed to a 
linear percentage reduction of the basic payment scheme ceiling at national level in 
order to constitute the national reserve. This reduction shall not be higher than 3 % 

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2. 

3. 

4. 

except,  if  required,  to  cover  the  allocation  needs  laid  down  in  paragraph  4  for  the 
year 2014. 

Member States may administer the national reserve at regional level. 

Member  States  shall  establish  payment  entitlements  from  the  national  reserve  in 
accordance  with  objective  criteria  and  in  such  a  way  as  to  ensure  equal  treatment 
between farmers and to avoid market and competition distortions.  

Member States shall use the national reserve to allocate payment entitlements, as a 
matter of priority, to young farmers who commence their agricultural activity. 

For  the  purposes  of  the  first  subparagraph,  ‘young  farmers  who  commence  their 
agricultural  activity’  means  farmers  fulfilling  the  conditions  laid  down  in  Article 
36(2) that did not have any agricultural activity in their own name and at their own 
risk or did not have the control of a legal person exercising an agricultural activity in 
the  5  years  preceding  the  start  of  the  new  agricultural  activity.  In  case  of  a  legal 
person, the natural person(s) who has the control of the legal person must not have 
had any agricultural activity in his own name and at his own risk or must not have 
had  the  control  of  a  legal  person  exercising  an  agricultural  activity  in  the  5  years 
preceding the start of the agricultural activity by the legal person. 

5. 

Member States may use the national reserve to:  

(a) 

(b) 

allocate payment entitlements to farmers in areas subject to restructuring and/or 
development programmes relating to a form of public intervention in order to 
prevent land from being abandoned and/or to compensate farmers for specific 
disadvantages in those areas; 

linearly  increase  the  value  of  payment  entitlements  under  the  basic  payment 
scheme at national or regional level if the national reserve exceeds 3 % in any 
given  year,  provided  that  sufficient  amounts  remain  available  for  allocations 
under paragraph 4, under point (a) of this paragraph and under paragraph 7. 

When  applying  paragraphs  4  and  5(a),  Member  States  shall  establish  the  value  of 
payment  entitlements  allocated  to  farmers  on  the  basis  of  the  national  or  regional 
average value of payment entitlements in the year of allocation.  

Where a farmer is entitled to receive payment entitlements or increase the value of 
the existing ones by virtue of a definitive court’s ruling or by virtue of a definitive 
administrative  act  of  the  competent  authority  of  a  Member  State,  the  farmer  shall 
receive  the  number  and  value  of  payment  entitlements  established  in  that  ruling  or 
act at a date to be fixed by the Member State. However, this date shall not be later 
than  the  latest  date  for  lodging  an  application  under  the  basic  payment  scheme 
following the date of the court’s ruling or the administrative act, taking into account 
the application of Articles 25 and 26. 

6. 

7. 

Article 24 

Replenishment of the national reserve 

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1. 

The national reserve is replenished by amounts resulting from:  

(a) 

payment  entitlements  not  giving  right  to  payments  during  two  consecutive 
years due to the application of: 

(i)  Article 9; 

(ii)  Article 10(1).  

(b) 

any  payment  entitlement  which  has  not  been  activated  in  accordance  with 
Article 25  for  a  period  of  two  years,  except  in  the  case  of  force  majeure  or 
exceptional circumstances; 

(c) 

payment entitlements voluntarily reverted by farmers; 

(d) 

the application of Article 22(4). 

2. 

The  Commission  shall,  by  means  of  implementing  acts,  adopt  necessary  measures 
regarding the reversion of non-activated payment entitlements to the national reserve. 
Those  implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 56(2).  

SECTION 3 

IMPLEMENTATION OF THE BASIC PAYMENT SCHEME 

Article 25 

Activation of payment entitlements 

1. 

Support under the basic payment scheme shall be granted to farmers upon activation, 
by means of declaration in accordance with Article 26(1), of a payment entitlement 
per  eligible  hectare  in  the  Member  State  where  it  has  been  allocated.  Activated 
payment entitlements shall give a right to the annual payment of the amounts fixed 
therein,  without  prejudice  to  the  application  of  financial  discipline,  progressive 
reduction  and  capping,  linear  reductions  in  accordance  with  Article  7,  37(2)  and 
51(1),  and  any  reductions  and  exclusions  imposed  pursuant  to  Regulation  (EU)  No 
[…] [HZR]. 

2. 

For the purposes of this Title, ‘eligible hectare’ shall mean: 

(a) 

(b) 

any agricultural area of the holding that is used for an agricultural activity or, 
where  the  area  is  used  as  well  for  non-agricultural  activities,  predominantly 
used for agricultural activities; or 

any  area  which  gave  a  right  to  payments  in 2008  under  the  single  payment 
scheme or the single area payment scheme laid down, respectively, in Titles III 
and in Chapter 2 of Title V of Regulation No (EC) 73/2009, and which: 

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(i) 

(ii) 

the 

no  longer  complies  with  the  definition  of  'eligible'  under  point  (a)  as  a 
implementation  of  Directive  92/43/EEC,  Directive 
result  of 
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 policy27 and Directive 2009/147/EC; or  

for the duration of the relevant commitment by the individual farmer, is 
afforested pursuant to Article 31 of Regulation (EC) No 1257/1999 or to 
Article 43 of Regulation (EC) No 1698/2005 or under a national scheme 
the  conditions  of  which  comply  with  Article  43(1),  (2)  and  (3)  of 
Regulation  (EC)  No  1698/2005  and  Article  23  of  Regulation  (EU)  No 
[…] [RDR]; or 

(iii)  for the duration of the relevant commitment of the individual farmer, is 
set  aside  pursuant  to  Articles  22,  23  and  24  of  Regulation  (EC) 
No 1257/1999  or  to  Article 39  of  Regulation  (EC)  No  1698/2005  and 
Article 29 of Regulation (EU) No […] [RDR]. 

For the purposes of point (a) of the first subparagraph, where an agricultural area of a 
holding is also used for non-agricultural activities, that area shall be considered to be 
used  predominantly  for  agricultural  activities  provided  that  those  agricultural 
activities  can  be  exercised  without  being  significantly  hampered  by  the  intensity, 
nature,  duration  and  timing  of  the  non-agricultural  activities.  Member  States  shall 
establish criteria for the implementation of this subparagraph on their territory. 

In  order  to  be  eligible,  areas  must  comply  with  the  definition  of  eligible  hectare 
throughout  the  calendar  year,  except  in  the  case  of  force  majeure  or  exceptional 
circumstances. 

3. 

Areas used for the production of hemp shall only be eligible hectares if the varieties 
used have a tetrahydrocannabinol content not exceeding 0.2 %. 

Article 26 

Declaration of eligible hectares 

1. 

2. 

For the purposes of Article 25(1), the farmer shall declare the parcels corresponding 
to the eligible hectares accompanying any payment entitlement. Except in the case of 
force  majeure  or  exceptional  circumstances,  those  parcels  shall  be  at  the  farmer's 
disposal on a date fixed by the Member State which shall be no later than the date 
fixed in that Member State for amending the aid application as referred to in Article 
73(1) of Regulation (EU) No […] [HZR]. 

Member States may, in duly justified circumstances, authorise the farmer to modify 
his  declaration  provided  that  he  maintains  at  least  the  number  of  hectares 
corresponding  to  his  payment  entitlements  and  respects  the  conditions  for  granting 
the basic payment for the area concerned. 

27 

OJ L 327, 22.12.2000, p. 1. 

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Article 27 

Transfer of payment entitlements 

1. 

2. 

3. 

Payment  entitlements  may  be  transferred  only  to  a  farmer  established  within  the 
same  Member  State,  except  in  the  case  of  transfer  by  actual  or  anticipated 
inheritance. 

However, even in the case of actual or anticipated inheritance, payment entitlements 
may  be  used  only  in  the  Member  State  where  the  payment  entitlements  were 
established.  

Payment  entitlements  may  be  transferred  only  within  the  same  region  or  between 
regions  of  a  Member  State  where  the  value  of  payment  entitlements  per  hectare 
resulting from the application of either Article 22(1) or Article 22(2) are the same. 

implementing  acts,  adopt  necessary 
The  Commission  shall,  by  means  of 
requirements  related  to  the  notification  of  transfer  of  payment  entitlements  to  the 
national authorities and the deadlines within which such notification is to take place. 
Those  implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 56(2).  

Article 28 

Delegated powers 

The Commission shall be empowered to adopt delegated acts in accordance with Article 55 
concerning:  

(a) 

rules  on  eligibility  and  the  access  in  respect  of  the  basic  payment  scheme  of 
farmers, in case of inheritance and anticipated inheritance, inheritance under a 
lease,  change  of  legal  status  or  denomination  and  in  the  case  of  merger  or 
scission of the holding; 

(b) 

rules on the calculation of the value and number or on the increase or reduction 
in  the  value  of  payment  entitlements  in  relation  to  the  allocation  of  payment 
entitlements under any provision of this Title, including rules: 

(i) 

on the possibility of a provisional value and number or of a provisional 
increase of payment entitlements allocated on the basis of the application 
from the farmer,  

(ii)  on the conditions for establishing the provisional and definitive value and 

number of the payment entitlements,  

(iii)  on the cases where a sale or lease contract could affect the allocation of 

payment entitlements. 

(c) 

rules on the establishment and calculation of the value and number of payment 
entitlements received from the national reserve; 

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(d) 

(e) 

rules on the modification of the unit value of payment entitlements in the case 
of fractions of payment entitlements; 

criteria  to  be  applied  by  Member  States  to  allocate  payment  entitlements  to 
farmers who did not activate any entitlement in 2011 or did not claim support 
under the single area payment scheme in 2011 as provided for in Article 21(2) 
and  to  allocate  payment  entitlements  in  case  of  application  of  the  contract 
clause referred to in Article 21(3); 

(f) 

criteria for the allocation of payment entitlements pursuant to in Article 23(4) 
and (5); 

(g) 

rules on the declaration and activation of payment entitlements;  

(h) 

rules  making  the  granting  of  payments  conditional  upon  the  use  of  certified 
seeds  of  certain  hemp  varieties  and  laying  down  the  procedure  for  the 
their 
determination  of  hemp  varieties 
tetrahydrocannabinol content referred to in Article 25(3). 

the  verification  of 

and 

CHAPTER 2 

Payment for agricultural practises beneficial for the climate and 
the environment  

Article 29 

General rules 

1. 

Farmers entitled to a payment under the basic payment scheme referred to in Chapter 
1  shall  observe  on  their  eligible  hectares  as  defined  in  Article  25(2)  the  following 
agricultural practises beneficial for the climate and the environment: 

(a) 
to have three different crops on their arable land where the arable land of the 
farmer  covers  more  than  3  hectares  and  is  not  entirely  used  for  grass  production 
(sown  or  natural),  entirely  left  fallow  or  entirely  cultivated  with  crops  under  water 
for a significant part of the year; 

(b) 

to maintain existing permanent grassland on their holding; and 

(c)  

to have ecological focus area on their agricultural area. 

2. 

Without prejudice to paragraphs 3 and 4 and to the application of financial discipline, 
linear  reductions  in  accordance  with  Article  7,  and  any  reductions  and  penalties 
imposed pursuant to Regulation (EU) No […] [HZR], Member States shall grant the 
payment referred to in this Chapter to farmers observing those of the three practises 
referred  to  in  paragraph  1  that  are  relevant  for  them,  and  in  function  of  their 
compliance with Articles 30, 31 and 32..  

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3. 

4. 

5. 

1. 

2. 

1. 

2. 

Farmers  whose  holdings  are  fully  or  partly  situated  in  areas  covered  by  Directives 
92/43/EEC  or  2009/147/EC  shall  be  entitled  to  the  payment  referred  to  in  this 
Chapter  provided  that  they  observe  the  practises  referred  to  in  this  Chapter  to  the 
extent  that  those  practises  are  compatible  in  the  holding  concerned  with  the 
objectives of those Directives.  

Farmers complying with the requirements laid down in Article 29(1) of  Regulation 
(EC)  No 834/2007  as  regards  organic  farming  shall  be  entitled  ipso  facto  to  the 
payment referred to in this Chapter.  

The  first  subparagraph  shall  apply  only  to  the  units  of  a  holding  that  are  used  for 
organic production in accordance with Article 11 of Regulation (EC) No 834/2007. 

The payment referred to in paragraph 1 shall take the form of an annual payment per 
eligible  hectare  declared  according  to  Article  26(1),  the  amount  of  which  shall  be 
calculated  annually  by  dividing  the  amount  resulting  from  the  application  of 
Article 33(1) by the total number of eligible hectares declared in the Member State 
concerned according to Article 26. 

Article 30 

Crop diversification 

Where the arable land of the farmer covers more than 3 hectares and is not entirely 
used for grass production (sown or natural), entirely left fallow or entirely cultivated 
with  crops  under  water  for  a  significant  part  of  the  year,  cultivation  on  the  arable 
land  shall  consist  of  at  least  three  different  crops.  None  of  those  three  crops  shall 
cover less than 5 % of the arable land and the main one shall not exceed 70 % of the 
arable land. 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article  55  laying  down  the  definition  of  'crop'  and  the  rules  concerning  the 
application of the precise calculation of shares of different crops. 

Article 31 

Permanent grassland 

Farmers shall maintain as permanent grassland the areas of their holdings declared as 
such in the application made pursuant to Article 74(1) of Regulation (EU) No XXX 
(HZ) for claim year 2014, hereinafter referred to as “reference areas under permanent 
grassland”.  

The reference areas under permanent grassland shall be increased in cases where the 
farmer has an obligation to reconvert areas into permanent grassland in 2014 and/or 
in 2015 as referred to in Article 93 of Regulation (EU) No […] HZR. 

Farmers shall be allowed to convert a maximum of 5 % of their reference areas under 
permanent  grassland.  That  limit  shall  not  apply  in  the  case  of  force  majeure  or 
exceptional circumstances. 

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3. 

1. 

2. 

1. 

2. 

3. 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article  55  laying  down  rules  concerning  the  increase  of  reference  areas  under 
permanent  grassland  as  laid  down  in  the  second  subparagraph  of  paragraph  1,  the 
renewal of permanent grassland, the reconversion of agricultural area into permanent 
grassland in case the authorised decrease referred to in paragraph 2 is exceeded, as 
well as the modification of the reference areas under permanent grassland in case of 
transfer of land. 

Article 32 

Ecological focus area 

Farmers shall ensure that at least 7 % of their eligible hectares as defined in Article 
25(2),  excluding  areas  under  permanent  grassland,  is  ecological  focus  area  such  as 
land  left  fallow,  terraces,  landscape  features,  buffer  strips  and  afforested  areas  as 
referred to in article 25(2)(b)(ii).  

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article  55  to  further  define  the  types  of  ecological  focus  areas  referred  to  in 
paragraph 1 of this Article and to add and define other types of ecological focus areas 
that  can  be  taken  into  account  for  the  respect  of  the  percentage  referred  to  in  that 
paragraph.  

Article 33 

Financial provisions 

In order to finance the payment referred to in this Chapter, Member States shall use 
30 % of the annual national ceiling set out in Annex II. 

Member  States  shall  apply  the  payment  referred  to  in  this  Chapter  at  national  or, 
when applying Article 20, at regional level. In case of application at regional level, 
Member  States  shall  use  in  each  region  a  share  of  the  ceiling  set  pursuant  to 
paragraph 3. For each region, this share shall be calculated by dividing the respective 
regional  ceiling  as  established  in  accordance  with  Article  20(2)  by  the  ceiling 
determined according to Article 19(1).  

The  Commission  shall,  by  means  of  implementing  acts,  set  out  the  corresponding 
ceiling  for  the  payment  referred  to  in  this  Chapter  on  a  yearly  basis.  Those 
implementing  acts  shall  be  adopted  in  accordance  with  the  examination  procedure 
referred to in Article 56(2).  

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CHAPTER 3 

Payment for areas with natural constraints 

Article 34 

General rules 

1. 

2. 

3. 

4. 

5. 

Member States may grant a payment to farmers entitled to a payment under the basic 
payment  scheme  referred  to  in  Chapter  1  and  whose  holdings  are  fully  or  partly 
situated in areas with natural constraints designated by Member States in accordance 
with Article 33(1) of Regulation (EU) No […] [RDR]. 

Member  States  may  decide  to  grant  the  payment  referred  to  in  paragraph  1  to  all 
areas falling within the scope of that paragraph or, alternatively, and on the basis of 
objective and non-discriminatory criteria, to restrict the payment to some of the areas 
referred to in Article 33(1) of Regulation (EU) No […] [RDR].  

Without  prejudice  to  paragraph  2  and  to  the  application  of  financial  discipline, 
progressive reduction and capping, linear reduction as referred in Article 7, and any 
reductions  and  exclusions  imposed  pursuant  to  Article  65  of  Regulation  (EU)  No 
[…]  [HZR],  the  payment  referred  to  in  paragraph  1  shall  be  granted  annually  per 
eligible  hectare  situated  in  the  areas  to  which  Member  States  decided  to  grant  a 
payment  in  accordance  with  paragraph  2  of  this  Article  and  shall  be  paid  upon 
activation of payment entitlements on those hectares held by the farmer concerned. 

The  payment  per  hectare  referred  to  in  paragraph  1  shall  be  calculated  by  dividing 
the  amount  resulting  from  the  application  of  Article 35  by  the  number  of  eligible 
hectares declared according to Article 26(1) which are situated in the areas to which 
Member  States  decided  to  grant  a  payment  in  accordance  with  paragraph  2  of  this 
Article. 

Member  States  may  apply  the  payment  referred  to  in  this  Chapter  at  regional  level 
under the conditions laid down in this paragraph. 

In that case, Member States shall define the regions in accordance with objective and 
non-discriminatory  criteria  such  as  their  natural  constraint  characteristics  and 
agronomic conditions. 

Member  State  shall  divide  the  national  ceiling  referred  to  in  Article 35(1)  between 
the regions in accordance with objective and non-discriminatory criteria. 

The  payment  at  regional  level  shall  be  calculated  by  dividing  the  regional  ceiling 
calculated  in  accordance  with  the  third  subparagraph  by  the  number  of  eligible 
hectares declared according to Article 26(1) which are situated in the areas to which 
Member  States  decided  to  grant  a  payment  in  accordance  with  paragraph  2  of  this 
Article. 

EN 

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Article 35 

Financial provisions 

In order to finance the payment referred to in Article 34, Member States may decide, 
by  1  August  2013,  to  use  up  to  5  %  of  their  annual  national  ceiling  set  out  in 
Annex II. 

The decision referred to in the first subparagraph shall be notified to the Commission 
by the date referred to in that subparagraph. 

Member  States  may,  by  1  August  2016,  review  their  decision  with  effect  from 
1 January 2017. 

According  to  the  percentage  of  the  national  ceiling  to  be  used  by  Member  States 
pursuant to paragraph 1, the Commission shall, by means of implementing acts, fix 
the  corresponding  ceiling  for  that  payment  on  a  yearly  basis.  Those  implementing 
acts  shall  be  adopted  in  accordance  with  the  examination  procedure  referred  to  in 
Article 56(2).  

CHAPTER 4 

Payment for young farmers 

Article 36 

General rules 

Member States shall grant an annual payment to young farmers who are entitled to a 
payment under the basic payment scheme referred to in Chapter 1. 

For the purposes of this Chapter, 'young farmers', shall mean: 

(a) 

natural persons who are setting up for the first time an agricultural holding as 
head of the holding, or who have already set up such a holding during the five 
years  preceding  the  first  submission  of  an  application  to  the  basic  payment 
scheme as referred in Article 73(1) of Regulation (EU) No […] [HZR], and 

(b)  who are less than 40 years of age at the moment of submitting the application 

referred to in point (a). 

Without prejudice to the application of financial discipline, progressive reduction and 
capping, linear reductions as referred in Article 7, and any reductions and exclusions 
imposed  pursuant  to  Article  65  of  Regulation  (EU)  No  […]  [HZR],  the  payment 
referred to in paragraph 1 of this Article shall be granted annually upon activation of 
payment entitlements by the farmer. 

The  payment referred to in paragraph 1 shall  be  granted  per  farmer  for  a  period  of 
maximum  five  years.  That  period  shall  be  reduced  by  the  number  of  years  elapsed 

1. 

2. 

1. 

2. 

3. 

4. 

EN 

43 

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between the setting up and the first submission of the application referred to in point 
(a) of paragraph 2. 

5. 

Member  States  shall  calculate  each  year  the  amount  of  the  payment  referred  to  in 
paragraph 1 by multiplying a figure corresponding to  25 % of the average value of 
the  payment  entitlements  held  by  the  farmer  by  the  number  of  entitlements  he  has 
activated in accordance with Article 26(1). 

When  applying  the  first  subparagraph,  Member  States  shall  respect  the  following 
maximum limits in the number of activated payment entitlements that are to be taken 
into account: 

(a) 

(b) 

in Member States where the average size of agricultural holdings as set out in 
Annex VI is lower than, or equal to, 25 hectares, a maximum of 25; 

in Member States where the average size of agricultural holdings as set out in 
Annex VI is higher than 25 hectares, a maximum that shall be no less that 25 
and no greater than that average size. 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article 55 concerning the conditions under which a legal person may be considered 
eligible  for  receiving  the  payment  referred  to  in  paragraph  1,  in  particular  the 
application of the age-limit set out in paragraph 2(b) to one ore more natural persons 
participating in the legal person. 

Article 37 

Financial provisions 

In order to finance the payment referred to in Article 36, Member States shall use a 
percentage  of  the  annual  national  ceiling  set  out  in  Annex  II  which  shall  not  be 
higher  than  2  %.  They  shall  notify  the  Commission,  by  1  August  2013,  of  the 
estimated percentage necessary to finance that payment. 

Member States may, by 1 August 2016, review their estimated percentage with effect 
from 1 January 2017. They shall notify the Commission of the reviewed percentage 
by 1 August 2016. 

Without  prejudice  to  the  maximum  of  2  %  set  under  paragraph  1,  where  the  total 
amount of the payment applied for in a Member State in a particular year exceeds the 
ceiling set pursuant to paragraph 4, and where that ceiling is lower than 2 % of the 
annual  national  ceiling  set  out  in  Annex  II,  Member  States  shall  apply  a  linear 
reduction to all payments to be granted to all farmers in accordance with Article 25.  

Where the total amount of the payment applied for in a Member State in a particular 
year exceeds the ceiling set pursuant to paragraph 4, and where that ceiling amounts 
to 2 % of the annual national ceiling set out in Annex II, Member States shall apply a 
linear reduction to the amounts to be paid in accordance with Article 36 in order to 
comply with that ceiling. 

6. 

1. 

2. 

3. 

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4. 

On  the  basis  of  the  estimated  percentage  notified  by  Member  States  pursuant  to 
paragraph  1,  the  Commission  shall,  by  means  of  implementing  acts,  set  the 
corresponding  ceiling  for  the  payment  referred  to  in  Article  36  on  a  yearly  basis. 
Those  implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 56(2).  

TITLE IV 

COUPLED SUPPORT 

CHAPTER 1 

Voluntary coupled support 

Article 38 

General rules 

1. 

Member States may grant coupled support to farmers under the conditions laid down 
in this Chapter.  

2. 

3. 

Coupled  support  may  be  granted  to  the  following  sectors  and  productions:  cereals, 
oilseeds, protein crops, grain legumes, flax, hemp,  rice, nuts, starch potato, milk and 
milk products, seeds, sheepmeat and goatmeat, beef and veal, olive oil, silk worms, 
dried  fodder,  hops,  sugar  beet,  cane  and  chicory,  fruit  and  vegetables  and  short 
rotation coppice. 

Coupled  support  may  only  be  granted  to  sectors  or  to  regions  of  a  Member  State 
where  specific  types  of  farming  or  specific  agricultural  sectors  undergo  certain 
difficulties  and  are  particularly  important  for  economic  and/or  social  and/or 
environmental reasons. 

By  way  of  derogation  from  paragraph  2,  coupled  support  may  also  be  granted  to 
farmers  who  held,  on  31  December  2013,  payment  entitlements  granted  in 
accordance  with  Section  2  of  Chapter  3  of  Title  III  and  Article  71m  of  Regulation 
(EC) No 1782/2003 and in accordance with Article 60 and the fourth subparagraph 
of Article 65 of Regulation (EC) No 73/2009; and who are without eligible hectares 
for  the  activation  of  payment  entitlements  under  the  basic  payment  scheme  as 
referred to in Chapter 1 of Title III of this Regulation. 

4. 

Coupled support may only be granted to the extent necessary to create an incentive to 
maintain current levels of production in the regions concerned. 

EN 

45 

   EN 

 
 
 
 
5. 

6. 

7. 

1. 

2. 

3. 

Coupled  support  shall  take  the  form  of  an  annual  payment  and  shall  be  granted 
within defined quantitative limits and based on fixed areas and yields or on a fixed 
number of animals. 

Any coupled support granted under this Article shall be consistent with other Union 
measures and policies. 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article 55 concerning: 

(a) 

the conditions for granting the support referred to in this Chapter,  

(b) 

rules  on  consistency  with  other  Union  measures  and  on  the  cumulation  of 
support. 

Article 39 

Financial provisions 

In order to finance the voluntary coupled support, Member States may decide, by 1 
August of the year preceding the first year of implementation of such support, to use 
up to 5 % of their annual national ceiling set out in Annex II. 

By  way  of  derogation  from  paragraph  1,  Member  States  may  decide  to  use  up  to 
10 % of the annual national ceiling set out in Annex II provided that:  

(a) 

(b) 

they applied, until 31 December 2013, the single area payment scheme as laid 
down in Title V of Regulation (EC) No 73/2009, or financed measures under 
Article 111 of that Regulation, or are concerned by the derogation provided for 
in  Article 69(5), or,  in the case  of Malta, in Article 69(1) of that Regulation; 
and/or 

they allocated, during at least one year in the period 2010-2013, more than 5 % 
of  their  amount  available  for  granting  the  direct  payments  provided  for  in 
Titles  III,  IV  and  V  of  Regulation  (EC)  No  73/2009,  with  the  exception  of 
Section  6  of  Chapter  1  of  Title  IV,  for  financing  the  measures  laid  down  in 
Section 2 of Chapter 2 of Title III of Regulation (EC) No 73/2009, the support 
provided for in points (i) to (iv) of paragraph 1(a) and paragraphs 1(b) and (e) 
of  Article  68  of  that  Regulation,  or  the  measures  under  Chapter  1,  with  the 
exception of Section 6, of Title IV of that Regulation. 

By  way  of  derogation  from  paragraph  2, Member States  having allocated during at 
least one year in the period 2010-2013 more than 10 % of their amount available for 
granting the direct payments provided for in Titles III, IV and V of Regulation (EC) 
No 73/2009, with the exception of Section 6 of Chapter 1 of Title IV, for financing 
the measures laid down in Section 2 of Chapter 2 of Title III of Regulation (EC) No 
73/2009,  the  support  provided  for  in  points  (i)  to  (iv)  of  paragraph  1(a)  and 
paragraphs  1(b)  and  (e)  of  Article  68  of  that  Regulation,  or  the  measures  under 
Chapter 1, with the exception of Section 6, of Title IV of that Regulation may decide 
to  use  more  than  10  %  of  the  annual  national  ceiling  set  out  in  Annex  II  upon 
approval by the Commission in accordance with Article 41. 

EN 

46 

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4. 

Member States may, by 1 August 2016, review their decision pursuant to paragraphs 
1, 2 and 3 and decide, with effect from 2017: 

(a) 

to  increase  the  percentage  fixed  pursuant  to  paragraphs  1  and  2,  within  the 
limits laid down therein where applicable, and, where appropriate, modify the 
conditions for granting the support; 

(b) 

to  reduce  the  percentage  used  for  the  funding  of  coupled  support  and,  where 
appropriate, modify the conditions for granting that support; 

(c) 

to cease granting the support under this Chapter. 

On the basis of the decision taken by each Member State pursuant to paragraphs 1 to 
4  on  the  proportion  of  the  national  ceiling  to  be  used,  the  Commission  shall,  by 
means of implementing acts, fix the corresponding ceiling for the support on a yearly 
basis. Those implementing acts shall be adopted in accordance with the examination 
procedure referred to in Article 56(2). 

Article 40 

Notification 

The  decisions  referred  to  in  Article  39  shall  be  notified  to  the  Commission  by  the 
date  referred  to  in  that  Article  and,  except  for  the  decision  referred  to  in  Article 
39(4)(c),  the  notification  shall  include  information  on  the  regions  targeted,  the 
selected types of farming or sectors and the level of support to be granted. 

The  decisions  referred  to  in  Article  39(2)  and  (3),  or,  where  appropriate,  in 
Article 39(4)(a), shall also include a detailed description of the particular situation in 
the  region  targeted  and  of  the  particular  characteristics  of  the  types  of  farming,  or 
specific agricultural sectors, which make the percentage referred to in Article 39(1) 
insufficient to address the difficulties referred to in Article 38(2) and which justify an 
increased level of support. 

5. 

1. 

2. 

Article 41 

Approval by the Commission 

1. 

The  Commission  shall,  by  means  of  an  implementing  act,  approve  the  decision 
referred to in Article 39(3), or, where appropriate, in Article 39(4)(a), where one of 
the following needs in the region or sector concerned is demonstrated:  

(a) 

(b) 

the necessity to sustain a certain level of specific production due to the lack of 
alternatives and to reduce the risk of production abandonment and the resulting 
social and/or environmental problems, 

the  necessity  to  provide  stable  supply  to  the  local  processing  industry,  thus 
avoiding  the  negative  social  and  economic  consequence  of  any  ensuing 
restructuring, 

EN 

47 

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(c) 

(d) 

the  necessity  to  compensate  disadvantages  affecting  farmers  in  a  particular 
sector  which  are  the  consequence  of  continuing  disturbances  on  the  related 
market; 

the  necessity  to  intervene  where  the  existence  of  any  other  support  available 
under this Regulation, Regulation (EU) No […] [RDR] or any approved State 
aid  scheme  is  deemed  insufficient  to  meet  the  needs  referred  to  in  points  (a), 
(b) and (c). 

2. 

The Commission shall, by means of implementing acts, adopt rules on the procedure 
for  the  assessment  and  approval  of  decisions  referred  to  in  paragraph  1.  Those 
implementing  acts  shall  be  adopted  in  accordance  with  the  examination  procedure 
referred to in Article 56(2). 

CHAPTER 2 

Crop specific payment for cotton 

Article 42 

Scope 

Aid shall be granted to farmers producing cotton falling within CN code 5201 00 under the 
conditions laid down in this Chapter ("crop specific payment for cotton"). 

Article 43 

Eligibility 

1. 

2. 

3. 

4. 

The crop specific payment for cotton shall be granted per hectare of eligible area of 
cotton.  In  order  to  be  eligible,  the  area  shall  be  located  on  agricultural  land 
authorised  by  the  Member  State  for  cotton  production,  sown  under  authorised 
varieties and actually harvested under normal growing conditions. 

The  crop  specific  payment  for  cotton  shall  be  paid  for  cotton  of  sound,  fair  and 
marketable quality. 

Member States shall authorise the land and the varieties referred to in paragraph 1 in 
accordance with the rules and conditions to be adopted pursuant to paragraph 3. 

To  ensure  an  efficient  management  of  the  crop-specific  payment  for  cotton,  the 
Commission shall be empowered to adopt delegated acts in accordance with Article 
55 concerning rules and conditions for the authorisation of land and varieties for the 
purposes of the crop specific payment for cotton. 

The Commission shall, by means of implementing acts, adopt rules on the procedure 
of  the  authorisation  and  the  notifications  to  the  producers  related  to  this 
authorisation.  Those  implementing  acts  shall  be  adopted  in  accordance  with  the 
examination procedure referred to in Article 56(2). 

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Article 44 

Base areas, fixed yields and reference amounts 

1. 

The following national base areas are established: 

– 

– 

– 

– 

Bulgaria: 3 342 ha, 

Greece: 250 000 ha, 

Spain: 48 000 ha, 

Portugal: 360 ha. 

2. 

The following fixed yields in the reference period are established: 

– 

– 

– 

– 

Bulgaria: 1,2 tonne/ha, 

Greece: 3,2 tonne/ha, 

Spain: 3,5 tonne/ha, 

Portugal: 2,2 tonne/ha. 

3. 

The  amount  of  the  crop  specific  payment  per  hectare  of  eligible  area  shall  be 
established  by  multiplying  the  yields  established  in  paragraph  2  with  the  following 
reference amounts:  

– 

– 

– 

– 

Bulgaria:  EUR  523,02  in  2014;  EUR  588,06  in  2015;  and  EUR  661,79  for 
2016 and onwards 

Greece: EUR 238,86 

Spain: EUR 369,33 

Portugal: EUR 232,57 

4. 

5. 

6. 

If the eligible area of cotton in a given Member State and in a given year exceeds the 
base area established in paragraph 1, the amount referred to in paragraph 3 for that 
Member State shall be reduced proportionately to the overrun of the base area. 

In  order  to  enable  the  application  of  the  crop-specific  payment  for  cotton,  the 
Commission shall be empowered to adopt delegated acts in accordance with Article 
55 concerning rules on the conditions for the granting of the crop specific payment 
for cotton, on the eligibility requirements and the agronomic practices.  

The  Commission  may,  by  means  of  implementing  acts,  provide  for  rules  on  the 
calculation  of  the  reduction  provided  for  in  paragraph  4.  Those  implementing  acts 
shall  be  adopted  in  accordance  with  the  examination  procedure  referred  to  in 
Article 56(2). 

EN 

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Article 45 

Approved inter-branch organisations 

1. 

For the purpose of this Chapter, an ‘approved inter-branch organisation’ shall mean a 
legal entity made up of farmers producing cotton and at least one ginner, carrying out 
activities such as: 

(a) 

helping to coordinate better the way cotton is placed on the market, particularly 
through research studies and market surveys; 

(b)  drawing up standard forms of contract compatible with Union rules; 

(c) 

orienting production towards products that are better adapted to market needs 
and  consumer  demand,  particularly  in  terms  of  quality  and  consumer 
protection; 

(d)  updating methods and means to improve product quality; 

(e) 

developing  marketing  strategies  to  promote  cotton  via  quality  certification 
schemes. 

The  Member  State  where  the  ginners  are  established  shall  approve  interbranch 
organisations that satisfy the criteria to be laid down pursuant to paragraph 3. 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article 55 concerning: 

(a) 

criteria for the approval of inter-branch organisations; 

(b)  obligations for producers; 

(c) 

rules  for  the  situation  where  the  approved  inter-branch  organisation  does  not 
respect those criteria. 

Article 46 

Granting of the payment 

Farmers shall be granted the crop specific payment for cotton per eligible hectare as 
established in Article 44. 

Farmers who are members of an approved inter-branch organisation shall be granted 
the  crop  specific  payment  for  cotton  per  eligible  hectare  within  the  base  area  laid 
down in Article 44(1), increased by an amount of EUR 2. 

2. 

3. 

1. 

2. 

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TITLE V 

Small farmers scheme 

Article 47 

General rules 

1. 

2. 

3. 

4. 

Farmers holding payment entitlements allocated in 2014 pursuant to Article 21 and 
fulfilling  the  minimum  requirements  provided  for  in  Article  10(1)  may  opt  for 
participation  in  a  simplified  scheme  under  the  conditions  laid  down  in  this  Title, 
hereinafter referred to as 'small farmers scheme' 

Payments under the small farmers scheme shall replace the payments to be granted 
pursuant to Titles III and IV.  

Farmers  participating  in  the  small  farmers  scheme  shall  be  exempted  from  the 
agricultural practises provided for in Chapter 2 of Title III. 

Member  States  shall  ensure  that  no  payment  is  made  to  farmers  for  whom  it  is 
established that, as from the date of publication of the Commission proposal for this 
Regulation,  they  divide  their  holding  with  the  sole  purpose  of  benefiting  from  the 
small  farmers  scheme.  This  shall  also  apply  to  farmers  whose  holdings  result  from 
that division. 

Article 48 

Participation 

Farmers wishing to participate in the small farmers scheme shall submit an application by 15 
October 2014. 

Farmers not having applied for participation in the small farmers scheme by 15 October 2014 
or deciding to withdraw from it after that date or selected for support under Article 20(1)(c) of 
Regulation (EU) No […] [RDR] shall no longer have the right to participate in that scheme. 

Article 49 

Amount of the payment 

1. 

Member  States  shall  set  the  amount  of  the  annual  payment  for  the  small  farmers 
scheme at one of the following levels, subject to paragraphs 2 and 3: 

(a) 

(b) 

an  amount  not  exceeding  15  %  of  the  national  average  payment  per 
beneficiary;  

an  amount  corresponding  to  the  national  average  payment  per  hectare 
multiplied  by  a  figure  corresponding  to  the  number  of  hectares  with  a 
maximum of three. 

EN 

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The  national  average  referred  to  in  point  (a)  of  the  first  subparagraph  shall  be 
established by the Member States on the basis of the national ceiling set in Annex II 
for  calendar  year  2019  and  the  number  of  farmers  having  obtained  payment 
entitlements pursuant to Article 21(1). 

The  national  average  referred  to  in  point  (b)  of  the  first  subparagraph  shall  be 
established by the Member States on the basis of the national ceiling set in Annex II 
for  calendar  year  2019  and  the  number  of  eligible  hectares  declared  in  accordance 
with Article 26 in 2014.  

The amount referred to in paragraph 1 shall not be lower than EUR 500 and not be 
higher than EUR 1 000. Without prejudice to Article 51(1), where the application of 
paragraph 1 results in an amount lower than EUR 500 or higher than EUR 1 000, the 
amount  shall  be  rounded  up  or  down,  respectively,  to  the  minimum  or  maximum 
amount. 

By way of derogation from paragraph 2, in Cyprus and Malta the amount referred to 
in paragraph 1 may be set at a value lower than EUR 500, but not less than EUR 200.  

2. 

3. 

Article 50 

Special conditions 

1. 

During the participation in the small farmers scheme, farmers shall: 

(a) 

keep at least a number of hectares corresponding to the number of entitlements 
held; 

(b) 

fulfil the minimum requirement provided for in Article 10(1)(b). 

Payment entitlements activated in 2014 pursuant to Articles 25 and  26  by  a farmer 
participating  in  the  small  farmers  scheme  shall  be  considered  as  activated 
entitlements for the duration of the participation of the farmer in that scheme.  

The payment entitlements held by the farmer during the participation in that scheme 
shall  not  be  considered  as  unused  payment  entitlements  reversible  to  the  national 
reserve within the meaning of Article 24(1)(b). 

By  way  of  derogation  from  Article  27,  payment  entitlements  held  by  farmers 
participating in the small farmers scheme shall not be transferable, except in case of 
inheritance or anticipated inheritance 

Farmers  who  by  way  of  inheritance  or  anticipated  inheritance  receive  payment 
entitlements from a farmer participating in the small farmers scheme shall be eligible 
for participation in that scheme provided they meet the requirements to benefit from 
the basic payment scheme and that they inherit all the payment entitlements held by 
the farmer from whom they receive the payment entitlements. 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article  55  concerning  the  conditions  for  participation  in  the  scheme  where  the 
situation of the participating farmer changes. 

2. 

3. 

4. 

EN 

52 

   EN 

 
Article 51 

Financial provisions 

1. 

In order to finance the payment referred to in this Title, Member States shall deduct 
the  amounts  corresponding  to  the  amounts  to  which  the  small  farmers  would  be 
entitled  as  a  basic  payment  referred  to  in  Chapter  1  of  Title  III,  as  a  payment  for 
agricultural  practises  beneficial  for  the  climate  and  the  environment  referred  to  in 
Chapter  2  of  Title  III  and,  where  applicable,  as  a  payment  for  areas  with  natural 
constraints  referred  to  in  Chapter  3  of  Title  III,  as  a  payment  for  young  farmers 
referred  to  in  Chapter  4  of  Title  III  and  as  coupled  support  referred  to  in  Title  IV 
from the total amounts available for the respective payments. 

The difference between the sum of all payments due under the small farmers scheme 
and  the  total  amount  financed  in  accordance  with  the  first  sub-paragraph  shall  be 
financed by applying a linear reduction to all payments to be granted in accordance 
with Article 25. 

The elements on the basis of which the amounts referred to in the first subparagraph 
are  established  shall  remain  the  same  for  the  entire  duration  of  the  participation  of 
the farmer in the scheme. 

2. 

If the total amount of payments due under the small farmers scheme exceeds 10 % of 
the  annual  national  ceiling  set  out  in  Annex  II,  Member  States  shall  apply  a  linear 
reduction to the amounts to be paid in accordance with this Title in order to respect 
that percentage. 

TITLE VI 

NATIONAL RESTRUCTURING PROGRAMMES FOR THE 
COTTON SECTOR 

Article 52 

Use of the annual budget for the restructuring programmes 

1. 

2. 

For  Member  States  which  have  applied  the  first  subparagraph  of  Article  4(1)  of 
Regulation  (EC)  No  637/2008,  the  relevant  annual  budget  available  pursuant  to 
Article 5(1) of that Regulation shall be transferred with effect from 1 January 2014 
as  additional  Union  funds  for  measures  under  rural  development  programming 
financed under Regulation (EU) No […] [RDR]. 

For  Member  States  which  have  applied  the  second  subparagraph  of  Article  4(1)  of 
Regulation  (EC)  No  637/2008,  their  annual  budget  as  referred  to  in  Article  5(1)  of 
that Regulation is included with effect from 1 January 2017 in their national ceiling 
as set out in Annex II to this Regulation.  

EN 

53 

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TITLE VII 

FINAL PROVISIONS 

CHAPTER 1 

Notifications and emergency 

Article 53 

Notification requirements 

1. 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article 55, on the necessary measures regarding notifications to be made by Member 
States for the purposes of this Regulation or for the purpose of checking, controlling, 
monitoring,  evaluating  and  auditing  direct  payments,  implementing  international 
agreements, including notification requirements under those agreements. In so doing 
it shall take into account the data needs and synergies between potential data sources. 

The information obtained may, where appropriate, be transmitted or made available 
to  international  organisations,  the  competent  authorities  of  third  countries  and  may 
be made public, subject to the protection of personal data and the legitimate interest 
of undertakings in the protection of their business secrets. 

2. 

Taking  into  account  the  need  to  make  notifications  referred  to  in  paragraph  1  fast, 
efficient, accurate, and cost effective, the Commission shall be empowered to adopt 
delegated acts in accordance with Article 55 for the purpose of laying down: 

(a) 

the nature and type of the information to be notified; 

(b) 

the methods of notification; 

(c) 

the rules related to the access rights to the information or information systems 
made available; 

(d) 

the conditions and means of publication of the information. 

3. 

The Commission shall, by means of implementing acts, adopt: 

(a) 

(b) 

(c) 

rules  on  providing  the  information  as  necessary  for  the  application  of  this 
Article;  

arrangements for the management of the information to be notified, as well as 
rules on content, form, timing, frequency and deadlines of the notifications; 

arrangements for transmitting or making information and documents available 
to the Member States, international organisations, the competent authorities in 

EN 

54 

   EN 

 
 
 
third countries, or the public, subject to the protection of personal data and the 
legitimate  interest  of  farmers  and  undertakings  in  the  protection  of  their 
business secrets. 

Those  implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 56(2). 

Article 54 

Measures to resolve specific problems 

The  Commission  shall,  by  means  of  implementing  acts,  adopt  the  measures  which 
are  both  necessary  and  justifiable  in  an  emergency,  in  order  to  resolve  specific 
problems. Such measures may derogate from provisions of this Regulation, but only 
to the extent that, and for such a period, as is strictly necessary. Those implementing 
acts  shall  be  adopted  in  accordance  with  the  examination  procedure  referred  to  in 
Article 56(2). 

On duly justified imperative grounds of urgency relating to the measures referred to 
in  paragraph  1,  the  Commission  shall  adopt  immediately  applicable  implementing 
acts in accordance with the procedure referred to in Article 56(3). 

CHAPTER 2 

Delegations of powers and implementing provisions 

Article 55 

Exercise of the delegation 

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

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

The delegation of powers referred to in this Regulation may be revoked at any time 
by the European Parliament or by the Council. A decision of revocation shall put an 
end to the delegation of the power 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.  

1. 

2. 

1. 

2. 

3. 

4. 

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

EN 

55 

   EN 

 
 
5. 

1. 

2. 

3. 

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 2 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  2  months  at  the  initiative  of  the  European Parliament  or  the 
Council. 

Article 56 

Committee procedure 

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

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

Where  reference  is  made  to  this  paragraph,  Article  8  of  Regulation  (EU) 
No 182/2011, in conjunction with Article 5 thereof, shall apply.  

CHAPTER 3 

Transitional and final provisions 

Article 57 

Repeals 

1. 

Regulation (EC) No 637/2008 is repealed.  

However, it continues to apply until 31 December 2017 in respect of Member States 
which  have  exercised  the  option  laid  down  in  the  second  sub-paragraph  of 
Article 4(1) of that Regulation. 

2. 

Regulation (EC) No 73/2009 is repealed. 

Without  prejudice  to  paragraph  3,  references  to  the  repealed  Regulation  shall  be 
construed as references to this Regulation and shall be read in accordance with the 
correlation table set out in Annex VII. 

3. 

The  references  made  in  this  Regulation  to  Regulations  (EC)  No  73/2009  and  (EC) 
No 1782/2003  shall  be  understood  as  referring  to  those  Regulations  such  as  they 
were in force before their repeal. 

EN 

56 

   EN 

 
 
Article 58 

Transitional rules 

In order to ensure a smooth transition from the arrangements provided for in Regulation (EC) 
No 73/2009  to  those  laid  down  in  this  Regulation,  the  Commission  shall  be  empowered  to 
adopt  delegated  acts  in  accordance  with  Article  55  concerning  the  necessary  measures  to 
protect the acquired rights and legitimate expectations of farmers. 

Article 59 

Entry into force and application 

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

It shall apply from 1 January 2014. 

However, Articles 14, 20(5), 22(6), 35(1), 37(1) and 39 shall apply from the date of entry into 
force of this Regulation. 

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 

57 

   EN 

 
ANNEX I 

List of support schemes 

Sector 

Legal base 

Notes 

Basic payment 

Payment  for  farmers  following 
agricultural  practices  beneficial 
for 
the 
climate 
environment 

and 

the 

III,  Chapter  1  of 

Title 
Regulation 

III,  Chapter  2  of 

Title 
Regulation 

this 

Decoupled payment 

this 

Decoupled payment 

Payment for farmers in areas with 
specific natural constraints 

III,  Chapter  3  of 

Title 
Regulation 

this 

Decoupled payment 

Payment for young farmers 

Voluntary coupled support 

III,  Chapter  4  of 

Title 
Regulation 

this 

Decoupled payment 

IV,  Chapter  1  of 

Title 
Regulation 

this 

Cotton 

IV,  Chapter  2  of 

Title 
Regulation 

this 

Area payment 

Payment for small farmers  

Title V of this Regulation 

Decoupled payment 

Posei 

Aegean islands 

III  of  Regulation 

Title 
No 247/2006 

(EC) 

Direct  payments  under  measures 
established in the programmes 

Chapter  III  of  Regulation  (EC) 
No 1405/2006 

Direct  payments  under  measures 
established in the programmes 

EN 

58 

   EN 

 
 
 
ANNEX II 

National ceilings referred to in Article 6 

Calendar year 

Belgium 
Bulgaria 
Czech Republic 
Denmark 
Germany 
Estonia 
Ireland 
Greece 
Spain 
France 
Italy 
Cyprus 
Latvia 
Lithuania 
Luxembourg 
Hungary 
Malta 
Netherlands 
Austria 
Poland 
Portugal 
Romania 
Slovenia 
Slovakia 
Finland 
Sweden 
United-Kingdom 

2014 
553 521 
655 661 
892 698 
942 931 
5 275 876 
108 781 
1 240 652 
2 099 920 
4 934 910 
7 732 611 
4 023 865 
52 273 
163 261 
396 499 
34 313 
1 298 104 
5 316 
806 975 
707 503 
3 038 969 
573 046 
1 472 005 
141 585 
386 744 
533 932 
710 853 
3 624 384 

2015 
544 065 
737 164 
891 875 
931 719 
5 236 176 
117 453 
1 239 027 
2 071 481 
4 950 726 
7 694 854 
3 963 007 
51 611 
181 594 
417 127 
34 250 
1 296 907 
5 183 
792 131 
706 850 
3 066 519 
585 655 
1 692 450 
140 420 
391 862 
534 315 
711 798 
3 637 210 

2016 
534 632 
810 525 
891 059 
920 534 
5 196 585 
126 110 
1 237 413 
2 043 111 
4 966 546 
7 657 219 
3 902 289 
50 950 
199 895 
437 720 
34 187 
1 295 721 
5 050 
777 320 
706 204 
3 094 039 
598 245 
1 895 075 
139 258 
396 973 
534 700 
712 747 
3 650 038 

2017 
525 205 
812 106 
890 229 
909 353 
5 156 970 
134 749 
1 235 779 
2 014 751 
4 988 380 
7 619 511 
3 841 609 
50 290 
218 159 
458 267 
34 123 
1 294 513 
4 917 
762 521 
705 546 
3 121 451 
610 800 
1 939 357 
138 096 
402 067 
535 075 
713 681 
3 662 774 

(In thousands EUR) 

2018 
525 205 
812 106 
890 229 
909 353 
5 156 970 
134 749 
1 235 779 
2 014 751 
4 988 380 
7 619 511 
3 841 609 
50 290 
218 159 
458 267 
34 123 
1 294 513 
4 917 
762 521 
705 546 
3 121 451 
610 800 
1 939 357 
138 096 
402 067 
535 075 
713 681 
3 662 774 

2019 and subsequent years 
525 205 
812 106 
890 229 
909 353 
5 156 970 
134 749 
1 235 779 
2 014 751 
4 988 380 
7 619 511 
3 841 609 
50 290 
218 159 
458 267 
34 123 
1 294 513 
4 917 
762 521 
705 546 
3 121 451 
610 800 
1 939 357 
138 096 
402 067 
535 075 
713 681 
3 662 774 

EN 

59 

   EN 

 
 
 
 
 
 
 
 
 
ANNEX III 

Net ceilings referred to in Article 7 

(In million EUR) 

Calendar year 

2014 

2015 

2016 

2017 

2018 

2019 and subsequent years 

Belgium 
Bulgaria 
Czech Republic 
Denmark 
Germany 
Estonia 
Ireland 
Greece 
Spain 
France 
Italy 
Cyprus 
Latvia 
Lithuania 
Luxembourg 
Hungary 
Malta 
Netherlands 
Austria 
Poland 
Portugal 
Romania 
Slovenia 
Slovakia 
Finland 
Sweden 
United-Kingdom 

553.5 
656.2 
892.5 
942.8 
5 275.3 
108.8 
1 240.7 
2 253.2 
4 978.9 
7 732.6 
4 023.6 
52.3 
163.3 
396.5 
34.3 
1 289.2 
5.3 
807.0 
707.5 
3 038.9 
573.2 
1 468.0 
141.6 
384.4 
533.9 
710.9 
3 534.9 

544.1 
733.6 
891.7 
931.6 
5 235.6 
117.5 
1 239.0 
2 226.5 
4 994.4 
7 694.9 
3 962.8 
51.6 
181.6 
417.0 
34.2 
1 288.0 
5.2 
792.1 
706.9 
3 066.4 
585.8 
1 684.0 
140.4 
389.5 
534.3 
711.8 
3 547.1 

534.6 
799.7 
890.9 
920.4 
5 196.1 
126.1 
1 237.4 
2 199.8 
5 010.0 
7 657.2 
3 902.1 
51.0 
199.9 
437.6 
34.2 
1 286.8 
5.0 
777.3 
706.2 
3 093.9 
598.4 
1 880.9 
139.3 
394.5 
534.7 
712.7 
3 559.2 

525.2 
801.2 
890.0 
909.3 
5 156.5 
134.7 
1 235.8 
2 173.1 
5 031.4 
7 619.5 
3 841.4 
50.3 
218.2 
458.1 
34.1 
1 285.7 
4.9 
762.5 
705.5 
3 121.4 
611.0 
1 924.0 
138.1 
399.4 
535.1 
713.7 
3 571.3 

525.2 
801.2 
890.0 
909.3 
5 156.5 
134.7 
1 235.8 
2 173.1 
5 031.4 
7 619.5 
3 841.4 
50.3 
218.2 
458.1 
34.1 
1 285.7 
4.9 
762.5 
705.5 
3 121.4 
611.0 
1 924.0 
138.1 
399.4 
535.1 
713.7 
3 571.3 

525.2 
801.2 
890.0 
909.3 
5 156.5 
134.7 
1 235.8 
2 173.1 
5 031.4 
7 619.5 
3 841.4 
50.3 
218.2 
458.1 
34.1 
1 285.7 
4.9 
762.5 
705.5 
3 121.4 
611.0 
1 924.0 
138.1 
399.4 
535.1 
713.7 
3 571.3 

EN 

60 

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ANNEX IV 

Coefficients to be applied under Article 10(1) 

Member State 

Limit for the EUR threshold 
(Article 10(1)(a)) 

Limit for the hectare threshold 
(Article 10(1)(b)) 

Belgium 

Bulgaria 

Czech Republic 

Denmark 

Germany 

Estonia 

Ireland 

Greece 

Spain 

France 

Italy 

Cyprus 

Latvia 

Lithuania 

Luxemburg 

Hungary 

Malta 

Netherlands 

Austria 

Poland 

Portugal 

Romania 

Slovenia 

Slovakia 

Finland 

Sweden 

United Kingdom 

400 

200 

200 

300 

300 

100 

200 

400 

300 

300 

400 

300 

100 

100 

300 

200 

500 

500 

200 

200 

200 

200 

300 

200 

200 

200 

200 

2 

0,5 

5 

5 

4 

3 

3 

0,4 

2 

4 

0,5 

0,3 

1 

1 

4 

0,3 

0,1 

2 

2 

0,5 

0,3 

0,3 

0,3 

2 

3 

4 

5 

EN 

61 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNEX V 

Financial provisions applying to Bulgaria and Romania referred to in Articles 16 and 17 

A. 

Amounts for calculating the national ceilings for payments referred to in Article 16: 

(in thousands EUR) 

2014 

2015 

Bulgaria 

Romania 

805 847 

1 802 977 

808 188 

1 849 068 

Total amount of complementary national direct payments to the basic payment scheme 

B. 
referred to in Article 17(2): 

(in thousands EUR) 

2014 

2015 

150 186 

330 971 

71 024 

156 618 

Bulgaria 

Romania 

Total amount of complementary national direct payments to the crop specific payment 

C. 
for cotton referred to in Article 17(3): 

Bulgaria 

556 523 

295 687 

2014 

2015 

(in EUR) 

EN 

62 

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ANNEX VI 

Average size of agricultural holding to be applied under Article 36(5) 

Member State 

Average size of agricultural holding 
(in hectares) 

Belgium 

Bulgaria 

Czech Republic 

Denmark 

Germany 

Estonia 

Ireland 

Greece 

Spain 

France 

Italy 

Cyprus 

Latvia 

Lithuania 

Luxemburg 

Hungary 

Malta 

Netherlands 

Austria 

Poland 

Portugal 

Romania 

Slovenia 

Slovakia 

Finland 

Sweden 

United Kingdom 

29 

6 

89 

60 

46 

39 

32 

5 

24 

52 

8 

4 

16 

12 

57 

7 

1 

25 

19 

6 

13 

3 

6 

28 

34 

43 

54 

EN 

63 

   EN 

 
 
ANNEX VII 

CORRELATION TABLE 

Regulation (EC) No 73/2009 

This Regulation 

Regulation (EU) No […] [HZR] 

Article 1 

- 

Article 2 

- 

Article 3 

Article 4(1) 

Article 4(2) 

Article 5 

Article 6(1) 

Article 6(2) 

Article 7 

Article 1 

Article 2 

Article 4 

Article 5(2) 

Article 5 

- 

- 

- 

- 

- 

- 

Article 8(1) and (2) 

Article 7(1) and (3) 

- 

Article 9 

Article 10 

Article 11(1) and (2) 

Article 7(2) 

- 

- 

- 

- 

Article 8 

Article 12(1) and (2) 

Article 12(3) 

Article 12(4) 

Article 13 

Article 14 

Article 15 

Article 16 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Article 91 

Article 95 

Article 93 

Article 94 

- 

- 

- 

- 

- 

- 

Article 25(1) and (2) 

- 

Article 12 

Article 14 

- 

Article 13(2) 

Article 68 

Article 69 

Article 70 

EN 

64 

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Regulation (EC) No 73/2009 

This Regulation 

Regulation (EU) No […] [HZR] 

Article 17 

Article 18 

Article 19 

Article 20 

Article 21 

Article 22 

Article 23 

Article 24 

Article 25 

Article 26 

Article 27(1) 

Article 27(2) 

Article 27(3) 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Article 9 

Article 28(1) and (2) 

Article 10(1), (3) and (4) 

- 

Article 10(2) 

Article 28(3) 

Article 23(1)(a)(ii) 

- 

- 

Article 29 

Article 30 

Article 31 

Article 32 

Article 33(1) 

- 

Article 23(1)(a)(i), (c) and (d) 

Article 11 

- 

- 

- 

Article 15 

Article 18(1) 

Article 18(2) 

Article 34(1) and (2) 

Article 25(1) and (2) 

Article 71 

Article 72 

Article 73 

Article 75 

Article 75(4) 

Article 96 

Article 97 

Article 99 

Article 100 

Article 63 

Article 102(3) 

Article 49 

Article 69(3) 

- 

- 

- 

- 

- 

- 

Article 76 

Article 62 

Article 2(2) 

- 

- 

- 

- 

EN 

65 

   EN 

 
Regulation (EC) No 73/2009 

This Regulation 

Regulation (EU) No […] [HZR] 

Article 35 

Article 36 

Article 37 

- 

Article 38 

Article 39(1) 

Article 40(1) 

Article 40(2) 

Article 41(1) 

Article 41(2) 

Article 41(3) 

Article 41(5) 

- 

Article 41(6) 

Article 42 

Article 26 

- 

Article 12 

Article 14 

- 

Article 25(3) 

Article 6(1) 

Article 19(3) 

Article 23(1) 

Article 23(3) and (4) 

Article 23(5)(a) 

Article 23(5)(b) 

Article 23(2), (6) and (7) 

Article 22(4) 

Article 24(1)(b) 

Article 43(1) and (2) 

Article 25(1) and (2) 

Article 43(3) 

Article 44 

Article 45 

- 

- 

- 

- 

- 

- 

Article 19(1) and (2) 

Article 46(1) to (4) 

Article 20(1) to (4) 

Article 46(5) 

- 

- 

Article 47(1) 

Article 47(2) 

Article 21 

- 

Article 22(1) regional application 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

EN 

66 

   EN 

 
 
Regulation (EC) No 73/2009 

This Regulation 

Regulation (EU) No […] [HZR] 

- 

- 

Article 48 

Article 49 

Article 50 

Article 51 

Article 52 

Article 53 

Article 54 

Article 55 

Article 56 

Article 57 

Article 58 

Article 59 

Article 60 

Article 61 

Article 62 

Article 63 

Article 64 

Article 65 

Article 66 

Article 67 

Article 68 

Article 69 

Article 70 

Article 71 

Article 22(1) national application 

Article 22(2),(3), (5), (6) and (7) 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

EN 

67 

   EN 

 
Regulation (EC) No 73/2009 

This Regulation 

Regulation (EU) No […] [HZR] 

Article 72 

Article 73 

Article 74 

Article 75 

Article 76 

Article 77 

Article 78 

Article 79 

Article 80 

Article 81 

Article 82 

Article 83 

Article 84 

Article 85 

Article 86 

Article 87 

Article 88 

Article 89 

Article 90 

Article 91 

Article 92 

Article 93 

Article 94 

Article 95 

Article 96 

Article 97 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Article 42 

Article 43 

Article 44 

Article 45 

Article 46 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

EN 

68 

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Regulation (EC) No 73/2009 

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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 structure28  

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 action29  

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  

28 
29 

ABM: Activity-Based Management – ABB: Activity-Based Budgeting. 
As referred to in Article 49(6)(a) or (b) of the Financial Regulation. 

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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 

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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; 

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(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"30, 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. 

30 

COM(2011)500 final of 29 June 2011. 

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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) envisaged31  

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 Communities32  

31 

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 

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–  (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. 

32 

As referred to in Article 185 of the Financial Regulation. 

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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. 

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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.  

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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  

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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 

45 497
672
46 169 

14 451
60 631

14 451
60 620

738
410
1 149

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 

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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. 

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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 

83 

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 

84 

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 

85 

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 

86 

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 

87 

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 

88 

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 

89 

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 

90 

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 II33 

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 

33 

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 

91 

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. 

92 

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 

93 

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 

94 

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 
N34 

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) 

34 

Year N is the year in which implementation of the proposal/initiative starts. 

EN 

95 

EN 

 
  
 
 
 
 
 
 
 
 
 
                                                 
TOTAL appropriations  
under HEADINGS 1 to 5 
of the multiannual financial framework  

Commitments 

Payments 

EN 

96 

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)35 

Propor-
tion of 
the 
value of 
produc-
tion 
marke-
ted 
through 
POs in 
value of 

35 

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. 

97 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
the total 
produc-
tion 

- Wine: National 
envelope – 
Restructuring35  

Number 
of 
hectares

- Wine: National 
envelope – 
Investments35 

- Wine: National 
envelope – By-
product 
distillation35 

Hecto-
litres 

- Wine: National 
envelope – 
Potable 
alcohol35 

Number 
of 
hectares

Hecto-
litres 

- Wine: National 
envelope – Use 
of concentrated 
must35 

- Wine: National 
envelope – 
promotion35 

- 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 

98 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SPECIFIC OBJECTIVE No 6: 

To contribute to farm incomes and 
limit farm income variability 

- Direct income 
support36 

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). 

36 

Based on potentially eligible areas for 2009. 

EN 

99 

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 37 

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

37 

Based on an average cost of 127 000 EUR for establishment plan post of officials and temporary agents. 

EN 

100 

   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)38 

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) 

TOTAL39 

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 

38 

39 

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. 

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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 

102 

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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 40 

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 

40 

This will be set out in the rural development programmes to be submitted by the Member States. 

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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/initiative41 

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.  

41 

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. 

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104 

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EN 

105 

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