CELEX: 32004R0817
Language: en
Date: 2004-04-29 00:00:00
Title: Commission Regulation(EC) No 817/2004 of 29 April 2004 laying down detailed rules for the application of Council Regulation (EC) No 1257/1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF)

L 153/30                EN               Official Journal of the European Union             30.4.2004
                         COMMISSION REGULATION (EC) No 817/2004
                                           of 29 April 2004
  laying down detailed rules for the application of Council Regulation (EC) No 1257/1999
     on support for rural development from the European Agricultural Guidance and
                                    Guarantee Fund (EAGGF)
THE COMMISSION OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Community,
Having regard to Council Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural
development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and
amending and repealing certain Regulations1, and in particular Articles 34, 45 and 50 thereof,
Whereas:
(1)     Regulation (EC) No 1257/1999 established a single legal framework for EAGGF
support for rural development. In particular, Title II thereof specifies the measures eligible for
support, their objectives and the criteria for eligibility. This legal framework applies to
support for rural development throughout the Community.
(2)     To supplement this framework, Commission Regulation (EC) No 445/2002 of 26
February 2002 laying down detailed rules for the application of Council Regulation (EC) No
1257/1999 on support for rural development from the European Agricultural Guidance and
Guarantee Fund (EAGGF)2 has been adopted, taking account of experience gained using the
instruments applied under the various Council Regulations repealed by Article 55(1) of
Regulation (EC) No 1257/1999.
(3)     Commission Regulation (EC) No 445/2002 of 26 February 2002 has been
substantially amended. In addition, when Regulation (EC) No 1257/1999 was amended, four
new measures were introduced for which detailed rules are needed. Moreover, in view of the
experience gained since the beginning of the programming period, certain provisions should
be clarified, in particular those relating to the procedure for amending programming
documents, to the financial management of programmes and to the controls. In the interests of
clarity and rationality, therefore, a new Regulation laying down detailed rules should be
adopted and Regulation (EC) No 445/2002 should be repealed.
(4)     Those rules should follow the principles of subsidiarity and proportionality, and
should therefore be restricted to what is necessary for the attainment of the aims being
pursued.
1
        OJ L 160, 26.6.1999, p. 80. Regulation as amended by Regulation (EC) No 1783/2003 (OJ L 270,
        21.10.2003).
2
        OJ L 74, 15.3.2002, p. 1. Regulation as last amended by Regulation (EC) No 963/2003 (OJ L 138,
        5.6.2003, p. 2).
 ---pagebreak--- (5)     With respect to the eligibility criteria, Regulation (EC) No 1257/1999 lays down three
basic conditions for support for investments in agricultural holdings and processing plants and
support for young farmers. The time at which those conditions must be fulfilled should be
specified, including the duration of the period of grace that Member States may grant to
certain beneficiaries in which to comply with minimum standards in cases where an
investment is carried out with a view to meeting those standards.
(6)     Community support for investments in holdings and processing plants is subject to the
condition that normal market outlets can be found for the products concerned. Detailed rules
should be laid down for assessing such market outlets.
(7)     Support for vocational training should not cover normal agricultural and forestry
education.
(8)     As regards the conditions for early retirement support, specific problems arising where
a holding is transferred by several transferors or by a tenant farmer should be solved.
(9)     Compensatory allowances payable in less-favoured areas for land used jointly by
several farmers should be paid to each farmer concerned in proportion to the degree to which
the farmer is entitled to its use.
(10) The competences and resources required from the authorities and bodies selected for
providing the farm advisory services should be specified.
(11) As regards support for agri-environment and animal welfare, the minimum
requirements to be met by farmers in connection with the various agri-environment and
animal welfare commitments should ensure a balanced application of support that takes
account of the objectives and will thus contribute to sustainable rural development.
(12) As regards support for farmers participating in a food-quality scheme, the products
concerned by this support and the types of fixed costs which may be taken into account for
calculating the amount of assistance should be specified.
(13) In order to ensure complementarity between the promotion measures set in Article 24d
of Regulation (EC) N° 1257/1999 and the regime concerning information and promotion
actions established by Regulation (EC) N° 2826/2000 of 19 December 2000 on information
and promotion actions for agricultural products on the internal market3, detailed requirements
for support for the promotion of quality products should be laid down, in particular as regards
beneficiaries and eligible activities. In addition, in order to avoid the risk of double financing,
information and promotion measures supported under Council Regulation (EC) No 2826/2000
should not be eligible for rural development support.
(14) The selection criteria for investments to improve the processing and marketing of
agricultural products should be fixed. Experience shows that these selection criteria should be
based on broad principles rather than sectoral rules.
(15) The outermost regions of the Community should be exempt, subject to certain
conditions, from the second indent of Article 28(1) of Regulation (EC) No 1257/1999, under
which no assistance may be granted for investments intended for the processing or marketing
of products from third countries.
3
        OJ L 328, 23.12.2000, p.2.
                                                  2
 ---pagebreak--- (16) The forests not eligible for support under Article 29(3) of Regulation (EC) No
1257/1999 should be defined in greater detail.
(17) Detailed conditions should be laid down for support for the afforestation of
agricultural land and payments for activities to maintain and improve the ecological stability
of forests.
(18) Under Article 33 of Regulation (EC) No 1257/1999, support is granted for other
measures relating to farming activities and their conversion and to rural activities not covered
by any other rural development measure. Given the wide variety of measures which could be
covered by this Article, it should be left primarily to the Member States to lay down the
conditions for support as part of their programming.
(19) Rules common to several measures should be laid down to ensure, in particular, that
common standards of good farming practice are applied where measures refer to that criterion,
and to guarantee the flexibility needed for long-term commitments to take account of events
which might affect those commitments without jeopardising the effective implementation of
the various support measures.
(20) A clear dividing line should be drawn between financing rural development support
and financing support under the common market organisations. Any exceptions to the
principle that measures covered by support schemes under common market organisations
should not be eligible for rural development support should be proposed by Member States in
their rural development programming, according to their specific needs and following a
transparent procedure.
(21)     Rural development support payments should be made in full to the beneficiaries.
(22) Commission Regulation (EC) No 1685/20004 lays down detailed rules for
implementing Council Regulation (EC) 1260/1999 of 21 June 1999 laying down general
provisions on the Structural Funds5 as regards eligibility of expenditure under operations part-
financed by the Structural Funds, and hence by the EAGGF Guidance Section. In the interests
of consistency, Regulation (EC) No 1685/2000 should also apply to measures part-financed
by the EAGGF Guarantee Section, except where otherwise provided in Regulation (EC) No
1257/1999, in Council Regulation (EC) No 1258/1999 of 17 May 1999 on the financing of the
common agricultural policy6 or in this Regulation.
(23) Standard unit costs are frequently fixed for certain investments part-financed under the
first, second and sixth indents of Article 30(1) and under Article 31 of Regulation (EC) No
1257/1999. In the interests of clarity and in order to simplify the management of those
measures, beneficiaries should be exempt, from 2000, from the requirement to present
invoices under Commission Regulation (EC) No 1685/2000. The conditions on which
Member States may apply such standard costs should also be laid down in order to ensure
efficient management.
4
         OJ L 193, 29.7.2000, p.39. Regulation as amended by Regulation (EC) No 448/2004, (OJ L 72,
         11.3.2004, p. 66).
5
         OJ L 161, 26.6.1999, p.1. Regulation as last amended by Regulation (EC) No 1105/2003 (OJ L 158,
         27.6.2003, p.3).
6
         OJ L 160, 26.6.1999, p.103.
                                                      3
 ---pagebreak--- (24) Commission Decision 1999/659/EC of 8 September 1999 fixing an indicative
allocation by Member States of the allocations under the European Agricultural Guidance and
Guarantee Fund Guarantee Section for rural development measures for the period 2000 to
20067 specifies the type of expenditure covered by the allocations made to the Member States.
Moreover, under Commission Regulation (EC) No 2603/1999 of 9 December 1999 laying
down rules for the transition to the rural development support provided for by Council
Regulation (EC) No 1257/19998, payments arising from certain commitments made before 1
January 2000 may be included in rural development programming for 2000-06 subject to
certain conditions. It is therefore necessary to specify what is included in the overall amount
of Community support fixed for each rural development plan under the single programming
document approved by the Commission.
(25) In order to ensure more flexible financial management, Member States which have
opted for regionalised rural development programming should have the option of having the
total amount of Community support granted to each regional programme set out in a separate
decision containing a consolidated table for the entire Member State.
(26) Article 5 of Council Regulation (EC) No 1259/1999 of 17 May 1999 establishing
common rules for direct support schemes under the common agricultural policy9 stipulates
that the amounts accruing from penalties for infringement of environmental protection
requirements or from modulation remain available to the Member States as additional
Community support for certain rural development measures. Exactly what the Commission's
approval covers in the case of such measures should be specified.
(27) Detailed rules should be laid down for the presentation of rural development plans and
their revision.
(28) In order to facilitate the establishment of rural development plans and their
examination and approval by the Commission, common rules should be laid down for the
structure and content of these plans, based in particular on the requirements set out in Article
43 of Regulation (EC) No 1257/1999.
(29) Requirements should be set for amendments to rural development programming
documents so as to enable the Commission to examine them quickly and efficiently.
(30) Only amendments involving important changes to rural development programming
documents should be subject to the management committee procedure. Other amendments
should be decided by the Member States and communicated to the Commission.
(31) To ensure effective and regular monitoring, the Member States should make a
consolidated and updated electronic version of their programming documents available to the
Commission.
(32) Detailed rules should be laid down on financial planning and contributions to the
financing of measures financed by the EAGGF Guarantee Section under Article 35(1) and (2)
of Regulation (EC) No 1257/1999.
7
        OJ L 259, 6.10.1999, p. 27. Decision as amended by Decision 2000/426/EC (OJ L 165, 6.7.2000, p. 33).
8
        OJ L 316, 10.12.1999, p. 26. Regulation as last amended by Regulation (EC) No 2055/2001 (OJ L 277,
        20.10.2001, p. 12).
9
        OJ L 160, 26.6.1999, p. 113. Regulation as last amended by Commission Regulation (EC) No 41/2004
        (OJ L 6, 10.1.2004, p.19).
                                                      4
 ---pagebreak--- (33) In this connection, Member States should report regularly to the Commission on the
state of financing of rural development measures.
(34) Steps should be taken to ensure that appropriations earmarked for rural development
support are efficiently used, in particular by providing for the Commission to grant an initial
advance payment to paying agencies and for allocations to be adjusted according to needs and
in the light of past performance. It should also be possible to grant advances to certain
categories of beneficiaries, under certain conditions, in order to facilitate the implementation
of investment measures.
(35) The general rules on budgetary discipline, in particular those relating to incomplete or
incorrect declarations by Member States, should apply in addition to the specific rules laid
down in this Regulation.
(36) The detailed financial administration of rural development measures should be
governed by the regulations implementing Regulation (EC) No 1258/1999.
(37) The procedures and requirements for monitoring and evaluation should be based on
the principles applicable to other Community support measures, in particular those laid down
by Regulation (EC) No 1260/1999.
(38) The administrative rules should permit better administration, monitoring and control of
rural development support. In the interests of simplicity, the integrated administration and
control system foreseen in Title II, Chapter IV of Council Regulation (EC) 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 farmers10 for which the
detailed implementing rules are laid down by Commission Regulation (EC) No 2419/200111
should be applied wherever possible.
(39) Provision should be made for a system of penalties at both Community and Member
State level.
(40) Information on the situation regarding the implementation of former accompanying
measures under Council Regulations (EEC) Nos 2078/9212, 2079/9213and 2080/9214, should
be included in the annual report provided for in Article 48(2) of Regulation (EC) No
1257/1999 where such measures form part of the financial programming for 2000-06. The
expenditure arising under such measures should also be included in the information which
Member States are required to supply by 30 September each year.
(41) The measures provided for in this Regulation are in accordance with the opinion of the
Committee on Agricultural Structures and Rural Development,
10
        OJ L 270, 21.10.2003, p.1. Regulation as last amended by Commission Regulation (EC) No 583/2004
        (OJ L 91, 30.3.2004, p. 1).
11
        OJ L 327, 12.12.2001, p.11. Regulation as amended by Regulation (EC) No 2550/2001 (OJ L 341,
        22.12.2001, p. 105).
12
        OJ L 215, 30.7.1992, p. 85. Regulation as last amended by Commission Regulation (EC) No 2772/95
        (OJ L 288, 1.12.1995, p. 35) and repealed by Regulation (EC) No 1257/1999.
13
        OJ L 215, 30.7.1992, p. 91. Regulation as last amended by Commission Regulation (EC) No 2773/95
        (OJ L 288, 1.12.1995, p. 37) and repealed by Regulation (EC) No 1257/1999.
14
        OJ 215, 30.7.1992, p. 96. Regulation as last amended by Commission Regulation (EC) No 231/96 (OJ L
        30, 8.2.1996, p. 33) and repealed by Regulation (EC) No 1257/1999.
                                                       5
 ---pagebreak--- HAS ADOPTED THIS REGULATION:
                                         CHAPTER I
                    RURAL DEVELOPMENT MEASURES
                                            SECTION 1
                              Investments in agricultural holdings
                                              Article 1
The period of grace which the Member States may grant under Article 5(3) of Regulation
(EC) No 1257/1999 in which to comply with newly introduced standards may not exceed
thirty-six months from the date on which the standard becomes mandatory for the farmer.
The end of the investment period referred to in Article 5(3) of Regulation (EC) No 1257/1999
shall fall within the period of grace as fixed in the first paragraph.
The period of grace as fixed in the first paragraph shall not apply to applications for support
introduced before 7 May 2004.
                                              Article 2
1.        For the purposes of Article 6 of Regulation (EC) No 1257/1999, the existence of
          normal market outlets shall be assessed at the appropriate level in terms of:
          (a) the products concerned;
          (b) the types of investment;
          (c) existing and planned capacity.
2.      Any restrictions on production or limitations on Community support under common
        market organisations shall be taken into account.
3.      Where a common market organisation places restrictions on production or limitations
        on Community support at the level of individual farmers, holdings or processing
        plants, no investment shall be supported which would increase production beyond
        those restrictions or limitations.
                                              Article 3
Article 4(2) of this Regulation shall also apply to investments made by young farmers.
                                            SECTION 2
                                   Setting-up of young farmers
                                                  6
 ---pagebreak---                                              Article 4
1.        The conditions for start-up assistance for young farmers laid down in Article 8(1) of
          Regulation (EC) No 1257/1999 must be met at the time when the individual decision
          to grant support is taken.
2.        A period not exceeding five years may be allowed after starting up in order to meet
          the requirements relating to occupational skill and competence, economic viability
          and minimum standards regarding the environment, hygiene and animal welfare, if
          the young farmer needs a period of adaptation in which to start up or to restructure
          the holding.
                                             Article 5
The individual decision to grant the aid provided for in Article 8 of Regulation (EC) No
1257/1999 shall be taken no later than 12 months after start-up as defined by the provisions in
force in the Member States.
                                          SECTION 3
                                            Training
                                             Article 6
Support for vocational training shall not include courses of instruction or training which form
part of normal programmes or systems of agricultural and forestry education at secondary or
higher levels.
                                          SECTION 4
                                        Early retirement
                                             Article 7
Where a farm is transferred by several transferors, overall support shall be limited to the
amount provided for one transferor.
                                             Article 8
Non-commercial farming activity continued by the transferor in accordance with the first
indent of Article 11(1) of Regulation (EC) No 1257/1999 shall not be eligible for support
under the common agricultural policy.
                                             Article 9
A tenant farmer may transfer the released land to the owner provided that the lease is
terminated and the requirements relating to the transferee laid down in Article 11(2) of
Regulation (EC) No 1257/1999 are complied with.
                                                 7
 ---pagebreak---                                              Article 10
Released land may be included in a re-parcelling operation or in a simple exchange of parcels.
In such cases, the conditions applicable to released land shall be applied to areas
agronomically equivalent to the released land.
Member States may make provision for released land to be taken in charge by a body which
undertakes to reassign it at a later date to a transferee who satisfies the conditions laid down
for early retirement.
                                           SECTION 5
                Less-favoured areas and areas with environmental restrictions
                                             Article 11
Compensatory allowances for areas used jointly by several farmers for the purpose of grazing
animals may be granted to each farmer concerned in proportion to that farmer's use, or right of
use, of the land.
                                           SECTION 6
                                        Meeting standards
                                             Article 12
The authorities and bodies selected to provide the farm advisory services referred to in Article
21d (2) of Regulation (EC) No 1257/1999 shall ensure the availability of appropriate
resources in the form of qualified staff, administrative and technical facilities and advisory
experience and reliability with respect to the statutory requirements referred to Article 21d (1)
of Regulation (EC) No 1257/1999.
                                           SECTION 7
                             Agri-environment and animal welfare
                                             Article 13
Any commitment to extensify livestock farming or manage livestock farming differently shall
comply with at least the following conditions:
a)        grassland management shall continue;
b)        the livestock shall be distributed across the farm in such a way that the whole of the
          grazed area is maintained, thus avoiding both over-grazing and under-utilisation;
c)        livestock density shall be defined taking into account all grazing livestock kept on the
          farm or, in the case of a commitment to limit nutrient leaching, all animals kept on
          the farm which are relevant to the commitment in question.
                                                 8
 ---pagebreak---                                             Article 14
1.      Support may relate to the following commitments:
        (a)      to rear farm animals of local breeds indigenous to the area and in danger of
                 being lost to farming;
        (b)      to preserve plant genetic resources naturally adapted to the local and regional
                 conditions and under threat of genetic erosion.
2.      The local breeds and plant genetic resources must play a role in maintaining the
        environment on the area to which the measure provided for in paragraph 1 applies.
        The eligible species of farm animals and the criteria for determining the threshold of
        loss to farming of local breeds are defined in the table in Annex I to this Regulation.
                                            Article 15
For the purposes of the second subparagraph of Article 24(1) of Regulation (EC) No
1257/1999, capital works shall be considered to be non-remunerative provided that they do
not normally lead to any significant net increase in the value or profitability of the farm.
                                            Article 16
Agri-environment commitments beyond the minimum period of five years referred to in
Article 23(1) of Regulation (EC) No 1257/1999 shall not run for a longer period than is
reasonably necessary for the achievement of their environmental effects. They shall normally
be for no longer than 10 years, except in the case of specific commitments where a longer
period is found to be indispensable.
                                            Article 17
Various agri-environment and/or animal welfare commitments may be combined provided
that they are complementary and compatible.
Where agri-environment measures are thus combined, the level of support shall take account
of income forgone and specific additional costs arising from the combination.
                                            Article 18
1.      The reference level for calculating income forgone and additional costs resulting from
        the commitments given shall be the usual good farming practice in the area where the
        measure is applied.
          The economic consequences of abandoning land or ceasing certain farming practices
          may be taken into account where this is justified by the agronomic or environmental
          circumstances.
2.      Where commitments are normally expressed in units other than those used in Annex of
        Regulation (EC) No 1257/1999, Member States may calculate payments on the basis
                                                 9
 ---pagebreak---         of these other units. In such cases, the Member States shall ensure that the maximum
        amounts per year eligible for Community support as set out in the Annex to
        Regulation (EC) No 1257/1999 are complied with. To this end the Member State may:
         (a)   set a limit on the number of units per hectare of the farm to which the agri-
                environment commitments applies; or
         (b)    determine the overall maximum amount for each participating farm and ensure
                that the payments for each farm are compatible with this limit.
3.      Payments may be based on limitations on the use of fertilisers, plant protection
        products or other inputs only if such limitations are technically and economically
        measurable.
                                            Article 19
Member States shall determine the need to provide an incentive as provided for in the third
indent of the first subparagraph of Article 24(1) of Regulation (EC) No 1257/1999 on the
basis of objective criteria.
Incentives may not exceed 20% of the income forgone and additional costs due to the
commitment given, except in the case of specific commitments where a higher rate is deemed
to be indispensable for effective implementation of the measure.
                                            Article 20
A farmer who gives an agri-environment or animal welfare commitment relating to one part
of a farm shall adhere to at least the standard of usual good farming practice throughout the
farm.
                                            Article 21
1.      Member States may authorise one commitment to be converted into another during the
        period of its operation, on condition that:
         (a)   any such conversion is of unquestionable benefit to the environment or to
                animal welfare;
         (b)    the existing commitment is significantly reinforced; and
         (c)   the approved programme includes the commitments concerned.
         An agri-environment commitment may be converted into a commitment for
         afforestation of agricultural land under Article 31 of Regulation (EC) No 1257/1999
         subject to the conditions set out in points (a) and (b) of the first subparagraph of this
         paragraph. The agri-environment commitment shall cease without reimbursement
         being required.
2.      Member States may allow agri-environment or animal welfare commitments to be
        adjusted during the period for which they apply, provided that the approved
                                                10
 ---pagebreak---         programme includes scope for such adjustment and that the adjustment is duly
        justified having regard to the objectives of the commitment.
                                            SECTION 8
                                            Food quality
                                            Sub-section 1
                                Participation in food quality schemes
                                              Article 22
1.      Assistance foreseen in Article 24b of Regulation (EC) No 1257/1999 may be granted
        to farmers participating in a quality scheme only if the agricultural product or
        foodstuff has been officially recognised under the Regulations listed in paragraph 2 of
        that Article or a national quality scheme as provided for in paragraph 3 of that Article.
2.        Where a support under Article 24b of Regulation No 1257/1999 for participation in a
          food quality scheme under Council Regulation (EEC) No 2092/9115 for a specific
          product is included in the rural development programming document, the fixed cost
          resulting from the participation in this quality scheme shall no more be taken into
          account in calculating the amount of support in the framework of an agri-
          environment measure to support organic farming for the same product.
3.      For the purposes of Article 24c of Regulation (EC) No 1257/1999, “fixed costs”
        means the costs incurred for entering a quality scheme and the annual contribution for
        participating in such a scheme, including, where necessary, expenditure on checks
        required to verify compliance with the specifications of the scheme.
                                            Sub-section 2
                                   Promotion of quality products
                                              Article 23
For the purposes of Article 24d(1) of Regulation (EC) No 1257/1999, “producer group”
means any organisation, of whatever legal form, which brings together operators actively
participating in a quality scheme covered by Article 24b of Regulation (EC) No 1257/1999 for
a specific agricultural product or foodstuff.
Professional and/or interprofessional organisations representing one or more sectors cannot
qualify as “producer groups” in the sense of the first paragraph..
                                              Article 24
For the purposes of Article 24d(2) of Regulation (EC) No 1257/1999, the information,
promotion and advertising activities eligible for support shall be activities designed to induce
15
        OJ L 198, 22.7.1991, p.1.
                                                  11
 ---pagebreak--- consumers to buy the agricultural products or foodstuffs covered by quality schemes included
in the programming document under the measure “participation in food quality schemes”.
Such activities shall draw attention to the specific features or advantages of the products
concerned, notably the quality, specific production methods, high animal welfare standards
and respect for the environment linked to the quality scheme concerned, and may include the
dissemination of scientific and technical knowledge about these products.
Such activities shall include, in particular, the organisation of, and/or participation in, fairs
and exhibitions, similar public relations exercises and advertising via the different channels of
communication or at the points of sale.
                                            Article 25
1.      Only information, promotion and advertising activities on the internal market shall be
        eligible for support under Article 24d of Regulation (EC) No 1257/1999.
2.      Activities under Article 24 may not concern commercial brands. They may not incite
        consumers to buy a product due to its particular origin, except for products covered by
        the quality scheme introduced by Council Regulation (EC) No 2081/9216 and those
        covered by Council Regulation (EC) n°1493/1999 on the common organisation of the
        market in wine17.
          The origin of a product may nevertheless be indicated provided the mention of the
          origin is subordinate to the main message.
3.      Where activities covered by Article 24 of this Regulation concern a product included
        in a quality scheme provided for under Article 24b(2)(a), (b) or (c) of Regulation (EC)
        No 1257/1999, the Community logo provided for under those schemes shall appear on
        information, promotion and/or advertising material.
4.      Information and promotion activities supported under Council Regulation (EC) No
        2826/2000 shall not qualify for support under Article 24d of Regulation (EC) No
        1257/1999.
                                            Article 26
The Member States shall ensure that all draft information, promotion, and advertising
materials drawn up in the context of an activity benefiting from support under Article 24d of
Regulation (EC) No 1257/1999 comply with Community legislation. To that end,
beneficiaries shall transmit all such draft materials to the competent authority of the Member
State.
                                           SECTION 9
              Improving the processing and marketing of agricultural products
16
        OJ L 208, 24.7.1992, p.1.
17
        OJ L 179, 14.7.1999, p.1
                                                12
 ---pagebreak---                                             Article 27
Eligible expenditure may include:
(a)      the construction and acquisition of immovable property, with the exception of land
         purchase;
(b)      new machinery and equipment including computer software;
(c)      general costs, such as architects', engineers' and consultants' fees, feasibility studies,
         acquisition of patents and licences.
The costs referred to in point (c) of the first subparagraph shall be in addition to the costs
referred to in (a) and (b) and shall be considered eligible expenditure up to a ceiling of 12 %
of those costs. For the development of new technologies as referred to Article 25(2), fourth
indent, of Regulation (EC) No 1257/1999, the ceiling can be increased up to 25 %.
                                            Article 28
1.      For the purposes of the second subparagraph of Article 26(1) of Regulation (EC) No
        1257/1999, “small processing units” means undertakings with fewer than 10
        employees and an annual turnover or annual balance sheet total not exceeding EUR 2
        million.
2.      The period of grace which the Member States may grant under the second
        subparagraph of Article 26(1) of Regulation (EC) No 1257/1999 in which to comply
        with newly introduced minimum standards, may not exceed thirty-six months from the
        date on which the standard becomes mandatory for the small processing unit.
         The end of the investment period referred to in the second subparagraph of Article
         26(1), of Regulation (EC) No 1257/1999 shall fall within the period of grace as fixed
         in the second paragraph above.
                                            Article 29
1.      For the purposes of Article 26(3) of Regulation (EC) No 1257/1999, the existence of
        normal market outlets shall be assessed at the appropriate level in relation to:
         (a)    the products concerned;
         (b)    the types of investment;
         (c)    existing and planned capacity.
2.      Any restrictions on production or limitations on Community support under common
        market organisations shall be taken into account.
                                                13
 ---pagebreak---                                               Article 30
In the outermost regions, support may be granted for investment in the processing or
marketing of products from third countries, provided that the processed products are intended
for the market of the region in question.
For the purpose of compliance with the condition laid down in the first subparagraph, support
shall be limited to processing capacity corresponding to regional needs, provided that such
processing capacity does not exceed such needs.
                                            SECTION 10
                                               Forestry
                                              Article 31
The forests excluded from forestry support under Article 29(3) of Regulation (EC) No
1257/1999 shall be:
(a)       forest or other wooded land owned by central or regional governments, or by
          government-owned corporations;
(b)       forest and other wooded land owned by the crown;
(c)       forests owned by legal persons at least 50 % of whose capital is held by one of the
          institutions referred to in points (a) and (b).
                                              Article 32
Agricultural land eligible for support for afforestation under Article 31 of Regulation (EC) No
1257/1999 shall be specified by the Member State and shall include in particular arable land,
grassland, permanent pastures and land used for perennial crops, where farming takes place on
a regular basis
                                              Article 33
1.      For the purposes of the second indent of the second subparagraph of Article 31(1) of
        Regulation (EC) No 1257/1999, "farmer" means a person who devotes an essential
        part of his or her working time to agricultural activities and derives from them a
        significant part of his or her income according to detailed criteria to be determined by
        the Member State.
2.      For the purposes of the second subparagraph of Article 31(3) of Regulation (EC) No
        1257/1999, "fast-growing species cultivated in the short term" means species with a
        rotation time, namely the period between two harvest cuts on the same parcel, of less
        than 15 years.
                                              Article 34
1.        Support under Article 32 of Regulation (EC) No 1257/1999 may not be granted for
          areas for which support has been granted under Article 31 of that Regulation.
                                                  14
 ---pagebreak--- 2.        Payments for maintaining fire-breaks through agricultural measures under the second
          indent of Article 32(1) of Regulation (EC) No 1257/1999 may not be granted for
          areas benefiting from agri-environment support.
          Such payments shall be consistent with any restrictions on production or limitations
          on Community support under common market organisations and shall take account
          of payments made under those common market organisations.
                                            SECTION 11
                                Rules common to several measures
                                               Article 35
1.        For the purposes of the third indent of Article 14(2) and the first subparagraph of
          Article 23(2) of Regulation (EC) No 1257/1999, "usual good farming practice",
          means the standard of farming which a reasonable farmer would follow in the region
          concerned.
          The Member States shall define verifiable standards in their rural development plans.
          These standards shall at least entail compliance with general mandatory
          environmental requirements. Concerning the support for animal welfare according to
          article 22, second subparagraph, points (f) of Regulation (EC) No 1257/1999, these
          standards comprise at least the mandatory requirements in this area.
2.        Where a Member States grants a period for the compliance with a new standard as
          referred to article 1 of this Regulation or a period for the compliance of young
          farmers with the minimum standards referred to in article 4, second subparagraph, of
          this Regulation, the farmers remains eligible for the compensatory allowances
          referred to in Chapter V of Regulation (EC) No 1257/1999 and/or for agri-
          environment or animal welfare support referred to in Chapter VI of that Regulation
          during this period provided the other conditions for granting these supports are met
          and provided that the farmer complies with the standards concerned at the end of the
          period.
                                               Article 36
Where a beneficiary transfers all or part of a holding to another person during the period for
which a commitment given as a condition for the grant of assistance runs, the transferee may
take over the commitment for the remainder of the period. If the commitment is not taken
over, the beneficiary shall reimburse the assistance granted.
Member States may choose not to require such reimbursement if a beneficiary who has
already honoured a significant part of the commitment concerned definitively ceases
agricultural activities and it is not feasible for a successor to take over the commitment.
In the event of minor changes to the situation of a holding, Member States may take specific
measures to ensure that application of the first subparagraph does not lead to inappropriate
results in terms of the commitment entered into.
                                                   15
 ---pagebreak---                                              Article 37
1.     When a beneficiary increases the area of the holding during the period for which a
       commitment given as a condition for the grant of assistance runs, Member States may
       provide for the commitment to be extended to cover the additional area for the
       remainder of the period of the commitment in accordance with paragraph 2, or for the
       original commitment to be replaced by a new one in accordance with paragraph 3.
         Provision may also be made for such replacement in cases where the area covered by
         a commitment within a holding is extended.
2.     The extension referred to in paragraph 1 may be granted only under the following
       conditions:
         (a)   it is of unquestionable benefit to the measure concerned;
         (b)   it is justified in terms of the nature of the commitment, the length of the
               remaining period and the size of the additional area;
         (c)   it does not impede the effectiveness of checks to ensure compliance with the
               conditions for the grant of assistance.
         The size of the additional area referred to in (b) must be significantly less than the
         original area or not more than two hectares.
3.     The new commitment referred to in paragraph 1 shall cover the whole area concerned
       under terms at least as strict as those of the original commitment.
                                             Article 38
Where a beneficiary is unable to continue to comply with commitments given because the
holding is reparcelled or is the subject of other similar public land-consolidation measures,
Member States shall take the measures necessary to allow the commitments to be adapted to
the new situation of the holding. If such adaptation proves impossible, the commitment shall
expire and reimbursement shall not be required in respect of the period in which the
commitment was effective.
                                             Article 39
1.     Without prejudice to the actual circumstances to be taken into consideration in
       individual cases, Member States may recognise, in particular, the following categories
       of force majeure:
         (a)   death of the farmer;
         (b)   long-term professional incapacity of the farmer;
         (c)   expropriation of a large part of the holding if this could not have been
               anticipated on the day on which the commitment was given;
         (d)   a severe natural disaster seriously affecting the agricultural land on the holding;
                                                 16
 ---pagebreak---          (e)   the accidental destruction of livestock buildings on the holding;
         (f)   an epizootic disease affecting all or part of the farmer's livestock.
         Member States shall notify the Commission of categories which they recognise as
         force majeure.
2.     Cases of force majeure shall be notified in writing to the competent authority, together
       with relevant evidence to the satisfaction of that authority, within 10 working days of
       the date on which the farmer is in a position to do so. That deadline may be extended
       by 20 working days so long as that possibility is provided for in the programming
       document.
                                       CHAPTER II
          GENERAL RULES AND ADMINISTRATIVE AND
                              FINANCIAL PROVISIONS
                                          SECTION 1
                                         General rules
                                           Article 40
For the purposes of the second subparagraph of Article 37(3) of Regulation (EC) No
1257/1999, Articles 41, 42 and 43 of this Regulation shall apply.
                                           Article 41
1.     Environmental measures implemented under common market organisations,
       agricultural quality and health measures, and rural development measures other than
       agri-environment support shall not preclude agri-environment support for the same
       production, provided that such support is additional and consistent with the measures
       concerned and without prejudice to paragraph 3.
2.     Where support is combined in accordance with paragraph 1, the level of assistance
       shall take account of income forgone and specific additional costs arising from the
       combination.
3.     Agri-environment measures on land set aside under Article 6 of Council Regulation
       (EC) No 1251/199918 shall qualify for support only if the commitments go beyond the
       appropriate environmental measures referred to in Article 6(2) of that Regulation.
       From 1 January 2005, new agri-environment measures on land set aside under Article
       54 or Article 107 of Council Regulation (EC) No 1782/2003 shall qualify for support
       only if the commitments go beyond the basic requirements laid down in Article 3(1) of
       that Regulation.
18
       OJ L 160, 26.6.1999, p. 1.
                                                17
 ---pagebreak---          In the case of extensification of beef production, support shall take account of the
         extensification payment under Article 13 of Council Regulation (EC) No
         1254/199919.
         In the case of support for less-favoured areas and areas with environmental
         restrictions, agri-environment commitments shall take account of the conditions laid
         down for support in the areas concerned.
                                            Article 42
Under no circumstances may the same commitment be the subject of payments
simultaneously under agri-environment support and another Community aid scheme.
                                            Article 43
The Member States must propose any exceptions under the first indent of the second
subparagraph of Article 37(3) of Regulation (EC) No 1257/1999 in their rural development
plans or programming documents presented for Objectives 1 and 2 as provided for in Article
18(1) and (2) or Article 19(1), (2) and (3) of Regulation (EC) No 1260/1999.
                                            Article 44
Payments under rural development measures shall be made in full to the beneficiaries.
                                            Article 45
Regulation (EC) No 1685/2000 shall apply to measures included in the programming referred
to in Article 40(2) and (3) of Regulation (EC) No 1257/1999, except where otherwise
provided in Regulations (EC) No 1257/1999 and No 1258/1999 and this Regulation.
                                            Article 46
1.     Member States applying standard unit costs for establishing the cost of certain forestry
       investments under the first, second and sixth indents of Article 30(1) and under Article
       31 of Regulation (EC) No 1257/1999 may exempt beneficiaries from the requirement
       to present receipted invoices or accounting documents of equivalent probative value
       for the investments concerned as provided for in point 2 of Rule 1 of the Annex to
       Regulation (EC) No 1685/2000.
2.     The costs referred to in paragraph 1 may be applied provided the following conditions
       are fulfilled:
         (a)    the costs are calculated by the competent public authorities on the basis of
                objective criteria permitting determination of the cost of individual activities,
                taking account of specific local conditions and avoiding any overcompensation;
19
       OJ L 160, 26.6.1999, p. 21.
                                                18
 ---pagebreak---           (b)   the part-financed investments are made between the date the aid application is
                submitted and the date final payment of that aid is made.";
                                           SECTION 2
                                         Programming
                                            Article 47
The rural development plans under Chapter II of Title III of Regulation (EC) No 1257/1999
shall be submitted in accordance with Annex II to this Regulation.
                                            Article 48
1.      The approval of programming documents referred to in Article 44(2) of Regulation
        (EC) No 1257/1999 shall determine the overall amount of Community support. If
        Member States opt for regionalised rural development programming, that overall
        amount may be the subject of a separate decision containing a consolidated financial
        table for all the rural development programmes of the Member State concerned.
          That amount referred to in the first subparagraph shall include:
          (a)   expenditure on measures presented under the new rural development
                programming, including expenditure on evaluation under Article 49(2) of
                Regulation (EC) No 1257/1999;
          (b)   expenditure incurred under earlier accompanying measures covered by Council
                Regulations (EEC) Nos 2078/92, 2079/92 and 2080/92 and under the measures
                covered by the earlier Regulations repealed by the above Regulations;
          (c)   expenditure incurred on measures under Article 4 of Regulation (EC) No
                2603/1999.
2.      Approval shall also cover the allocation and use of amounts remaining available to the
        Member States as additional Community support under Article 5 of Regulation (EC)
        No 1259/1999. If a separate decision as referred to in the first subparagraph of
        paragraph 1 is adopted, these amounts shall appear in the financial table annexed to
        this decision.
          However, those amounts shall not be included in the overall amount of Community
          support referred to in paragraph 1.
3.      Approval may cover State aid intended to provide additional financing to rural
        development measures only if the State aid is identified in accordance with point 16 of
        Annex II.
                                            Article 49
Member States shall make rural development programming documents available to the public.
                                                 19
 ---pagebreak---                                                Article 50
Where rural development measures are submitted in the form of general framework
regulations, rural development plans shall make appropriate reference to such regulations.
Articles 47, 48 and 49 shall also apply in the case referred to in the first paragraph.
                                               Article 51
1.      Amendments to rural development programming documents and rural development
        measures included in single programming documents under Objective 2 financed by
        the EAGGF Guarantee Section shall be duly substantiated, in particular giving the
        following information:
          (a)   the reasons and any implementation problems justifying adjustment of the
                programming document;
          (b)   the expected effects of the amendment;
          (c)   the implications for financing and verification of commitments.
2.      Acting in accordance with the procedures referred to in Articles 50(2) and 48(3) of
        Regulation (EC) No 1260/1999, the Commission shall approve any amendments to
        rural development programming documents, financial table annexed to the decision
        referred to in the first subparagraph of Article 48(1) and rural development measures
        included in single programming documents under Objective 2 financed by the EAGGF
        Guarantee Section whenever they have a bearing on:
          (a)   priorities;
          (b)   the main features of the support measures as indicated in Annex II;
          (c)   the overall maximum amount of Community support and/or the overall
                minimum total eligible cost or eligible public expenditure fixed in the decision
                approving the programming document or in the decision referred to in the first
                subparagraph of Article 48(1);
          (d)   the distribution of the financial allocation made for the measures contained in
                the programming document, where it exceeds:
               –         15% of the total eligible cost of the programme concerned for the entire
                          programming period, if the Community contribution is based on the
                          total eligible cost,
               –         20% of the total eligible public expenditure for the programme
                         concerned for the entire programming period, if the Community
                         contribution is based on the eligible public expenditure,
               calculated on the basis of the last column (total) of the financial table annexed to
               the Commission Decision approving the programming document or annexed to
               the decision referred to in the first subparagraph of Article 48(1), as last
               amended.
                                                   20
 ---pagebreak--- 3.      The amendments referred to in paragraph 2 shall be submitted to the Commission in a
        single proposal per programme no more than once per calendar year.
          The first subparagraph shall not apply:
          (a)   where amendments are required as a result of a natural disaster or other
                exceptional occurrence with a major impact on the Member State's
                programming;
          (b)   where an amendment of the financial table annexed to the decision referred to
                in Article 48(1) is necessary as a result of an amendment of a regional rural
                development programming document.
4.      Amendments of a financial nature which are not covered by paragraph 2(d) and
        amendments to the Community contribution rate as referred to in the first indent of
        point 9(2) B of Annex II shall be communicated to the Commission together with the
        financial table amended in accordance with point 8 of Annex II. They shall enter into
        force on the date on which they are received by the Commission.
          Amendments of a financial nature as referred to in the first subparagraph may not
          exceed the ceilings provided for in paragraph 2(d) when totalled over a calendar year.
5.      Amendments other than those covered in paragraphs 2 and 4 shall be communicated to
        the Commission at least three months before their entry into force.
          Such amendments may enter into force earlier if the Commission confirms to the
          Member State before the end of the three-month period that the notified amendments
          comply with Community legislation.
          If the notified amendment does not comply with Community legislation, the
          Commission shall inform the Member State thereof and the three–month period
          provided for in the first subparagraph shall be suspended until the Commission
          receives a compliant amendment.
                                            Article 52
Where Community legislation is amended, rural development programming documents and
single programming documents under Objective 2 shall be revised in line with those
amendments if necessary.
Article 51(3) shall not apply to such revisions.
Such amendments to rural development programming documents or single programming
documents under Objective 2 which are limited to bringing the document into line with new
Community legislation shall be sent to the Commission for information.
                                            Article 53
Member States shall make available to the Commission a consolidated electronic version of
their programming documents, updated following each amendment. They shall provide the
Commission with the electronic address at which the consolidated versions of programming
documents can be consulted and shall inform it each time they are updated.
                                                21
 ---pagebreak--- Furthermore, Member States shall keep an electronic version of all the previous versions of
their programming documents.
                                          SECTION 3
                        Additional measures and Community initiatives
                                            Article 54
The scope of assistance from the EAGGF Guidance Section is extended to the whole
Community in the case of measures under the rural development Community initiative and its
financing extended to measures eligible under European Parliament and Council Regulations
(EC) Nos 1783/199920 and 1784/199921.
                                          SECTION 4
                                      Financial provisions
                                            Article 55
1.      No later than 30 September each year, the Member States shall forward the following
        information to the Commission, for each rural development programming document
        and each single programming document under Objective 2 as regards rural
        development measures financed by the EAGGF Guarantee Section:
          (a)   a statement of expenditure incurred in the current financial year and
                expenditure remaining to be disbursed by the end of that year and covered by
                Community support as defined in Article 48(1), and
          (b)   revised forecasts of such expenditure for subsequent financial years until the
                end of the programming period concerned, keeping within the allocation for
                each Member State.
          This information shall be transmitted in table format using a computerised model
          supplied by the Commission.
2.      Without prejudice to the general rules on budgetary discipline, where the information
        which Member States are required to transmit to the Commission under paragraph 1 is
        incomplete or the time limit has not been met, the Commission shall reduce advances
        on entry in the accounts of agricultural expenditure on a temporary and flat-rate basis.
                                            Article 56
1.        For the month during which the decision is adopted approving a rural development
          programming document or a single programming document under Objective 2 as
          regards rural development measures financed by the EAGGF Guarantee Section, the
          paying agencies may enter in the accounts as expenditure an advance not exceeding
          12.5% of the average annual EAGGF contribution provided for in the programming
          document, covering the expenditure referred to in Article 48(1).
20
        OJ L 213, 13.8.1999, p. 1.
21
        OJ L 213, 13.8.1999,p .5.
                                                22
 ---pagebreak---    This advance shall represent working capital which shall be recovered for each
   programming document:
   (a)    once the aggregate sum of the expenditure paid out by the EAGGF and the
          amount of the advance is equal to the total EAGGF contribution provided for in
          the programming document or,
   (b)    at the end of the programming period, if the total amount of the EAGGF
          contribution is not reached.
   However, Member States may decide to pay the advance back before the end of the
   programming period.
2. For countries whose currency is not the euro on the date of such entry, advances
   under paragraph 1 shall be entered in the accounts using the rate of exchange
   prevailing on the penultimate Commission working day of the month preceding that
   in which the paying agencies enter the advance in the accounts.
                                       Article 57
1. For each Member State, expenditure declared for any given financial year shall be
   financed up to the limit of the amounts notified to the Commission under point (b) of
   the first subparagraph of Article 55(1) which are covered by the appropriations
   entered in the budget for the financial year concerned.
2. Where the total amount of the forecasts notified under point (b) of the first
   subparagraph of Article 55(1) exceeds the total appropriations entered in the budget
   for the financial year concerned, the maximum amount of expenditure to be financed
   for each Member State shall be limited using the formula used to establish the
   corresponding annual allocation as defined in Decision 1999/659/EC.
   If, after this reduction, appropriations remain available because some Member States
   have made forecasts which are below their annual allocation, the surplus amount
   shall be distributed in proportion to the Member States' respective annual allocations
   while ensuring that the amount forecast for each Member State as referred to in the
   first subparagraph is not exceeded. The Commission shall adapt the initial allocations
   per Member State fixed by Decision 1999/659/EC within two months of the adoption
   of the budget for the financial year concerned. Within six weeks following that
   adaptation the Member States shall communicate to the Commission, for each rural
   development programme and single programming document for Objective 2 as
   regard rural development measures financed by the EAGGF-Guarantee Section, a
   new financial table complying with the adjusted forecasts for the financial year
   concerned and the allocations fixed by Decision 1999/659/EC as modified.
   For 2004, the communication of the new financial table referred to in the second
   subparagraph should be done within eight weeks following the entry into force of the
   present Regulation.
3. Where expenditure actually incurred by a Member State in any given financial year
   exceeds the amounts notified under point (b) of the first subparagraph of Article 55
   (1) or the amounts resulting from the application of paragraph 2 of this Article, the
   overruns on expenditure in the current financial year shall be taken into account on a
                                           23
 ---pagebreak---           pro rata basis, up to the limit of the appropriations remaining available after
          reimbursing to the other Member States the expenditure incurred.
4.        Where expenditure actually incurred by a Member State in a given financial year is
          less than 75% of the amounts referred to in paragraph 1, the expenditure to be
          recognised for the following financial year shall be reduced by a third of the
          difference between this threshold, or the amounts resulting from the application of
          paragraph 2 if they are below it, and the actual expenditure incurred during the
          financial year concerned.
          This reduction shall not be taken into account when establishing actual expenditure
          in the financial year following that in which the reduction was made.
                                             Article 58
Articles 55, 56, and 57 of this Regulation shall not apply to expenditure incurred under Article
5 of Regulation (EC) No 1259/1999.
                                             Article 59
The Community shall contribute to financing evaluations in the Member States under Article
49(2) of Regulation (EC) No 1257/1999 where such evaluations actually contribute to
evaluation at Community level by virtue of their scope, particularly through their replies to
common evaluation questions and their quality.
The Community contribution shall not exceed 50% of a ceiling which, except in duly justified
cases, shall be 1% of the total cost of the rural development programme.
                                             Article 60
1.      Beneficiaries of investment support measures under Chapters I, VII, VIII and IX of
        Title II of Regulation (EC) No 1257/1999 may request the payment of an advance
        from the competent paying agencies if this option is included in the programming
        document. As regards public beneficiaries, this advance may be granted only to
        municipalities and associations thereof and to public law bodies.
2.      The amount of the advance shall not exceed 20% of the total cost of the investment,
        and its payment shall be subject to the establishment of a bank guarantee or an
        equivalent guarantee corresponding to 110% of the amount of the advance.
        However, in the case of the public beneficiaries referred to in paragraph 1, the paying
        agency may accept a written guarantee from their authority, in accordance with
        provisions applied in the Member States, covering an amount equal to the percentage
        specified in the first subparagraph, provided that the authority undertakes to pay the
        amount covered by its guarantee should entitlement to the advance paid not be
        established.
3.      The guarantee shall be released once the competent agency notes that the amount of
        real expenditure resulting from the investment exceeds the amount of the advance.
                                                 24
 ---pagebreak--- 4. Paying agencies shall declare to the EAGGF Guarantee Section the amount
   corresponding to the Community part-financing:
     (a)   of the advance paid;
     (b)   of the actual expenditure subsequently paid to beneficiaries, minus the amount
           of the advance already paid.
                                      SECTION 5
                               Monitoring and evaluation
                                       Article 61
1. The annual progress reports provided for in Article 48(2) of Regulation (EC) No
   1257/1999 shall be submitted to the Commission by 30 June of each year and shall
   relate to the previous calendar year.
   Progress reports shall contain the following information:
     (a)   any change in the general conditions which is of relevance to the
           implementation of the measure, and in particular any major socio-economic
           trends or changes in national, regional or sectoral policies;
     (b)   the progress of measures and priorities in relation to their operational and
           specific objectives, expressed using quantitative indicators;
     (c)   action taken by the management authority and the Monitoring Committee, if
           provision has been made for such a committee, to ensure high quality and
           effective implementation, and in particular:
           (i)    monitoring measures, financial control and evaluation, including data
                  collection procedures;
           (ii)   a summary of the major problems encountered in managing the measure
                  and any steps taken;
     (d)   measures taken to ensure compatibility with Community policies.
2. The indicators referred to in point (b) of the second subparagraph of paragraph 1 shall
   follow, as far as possible, the common indicators defined in the guidelines drawn up
   by the Commission. Where additional indicators are needed to effectively monitor
   progress towards the objectives in the rural development programming documents,
   these shall be included.
                                       Article 62
1.   Evaluations shall be performed by independent evaluators in accordance with
     recognised practice.
2.   Evaluations shall provide answers, in particular, to common evaluation questions
     defined by the Commission in consultation with the Member States and shall, as a
     general rule, be accompanied by performance-related criteria and indicators.
                                           25
 ---pagebreak--- 3. The authority responsible for managing the rural development programming
   document shall assemble the appropriate resources for evaluations, making use of
   monitoring results and gathering additional information where necessary.
                                       Article 63
1. Ex ante evaluation shall analyse the disparities, gaps and potentials of the current
   situation, assess the consistency of the proposed strategy with the situation and
   targets and consider the issues raised in the common evaluation questions. It shall
   assess the expected impact of the selected priorities for action and quantify their
   targets where possible. It shall also verify the proposed implementing arrangements
   and consistency with the common agricultural policy and other policies.
2. Ex ante evaluation shall be the responsibility of the authorities preparing the rural
   development plan and shall form part of it.
                                       Article 64
1. Mid-term and ex post evaluation shall deal with the specific issues arising in the rural
   development programming document concerned and with common evaluation
   questions relevant at Community level. These shall relate to the living conditions and
   structure of the rural population, employment and income from farm and off-farm
   activities, agricultural structures, agricultural commodities, quality, competitiveness,
   forest resources and the environment.
   If a common evaluation question is not considered relevant to a particular rural
   development programming document, this shall be substantiated.
2. Mid-term evaluation shall deal with the evaluation questions and shall examine in
   particular the initial achievements, their relevance to and consistency with the rural
   development programming document and the extent to which the targets have been
   attained. It shall also assess the use made of financial resources and the operation of
   monitoring and implementation.
   Ex post evaluation shall answer the evaluation questions, paying particular attention
   to the use made of resources and the effectiveness and efficiency of assistance and its
   impact and shall draw conclusions concerning rural development policy, including its
   contribution to the common agricultural policy.
3. Mid-term and ex post evaluation shall be performed in consultation with the
   Commission under the responsibility of the authority in charge of managing rural
   development programming.
4. The quality of individual evaluations shall be assessed using recognised methods by
   the authority in charge of managing the rural development programming document,
   the Monitoring Committee, if any, and the Commission. The results of the
   evaluations shall be made available to the public.
                                           26
 ---pagebreak---                                       Article 65
1. A mid-term evaluation report shall be transmitted to the Commission not later than
   31 December 2003. The authority responsible for managing the rural development
   programming document shall inform the Commission on the follow-up to the
   recommendations in the evaluation report. The Commission shall prepare a
   Community-level summary upon receipt of the individual evaluation reports. Where
   necessary, an update of the mid-term evaluation shall be completed by 31 December
   2005.
2. An ex post evaluation report shall be transmitted to the Commission not later than
   two years after the end of the programming period. Within three years of the end of
   the programming period and upon receipt of the individual evaluation reports the
   Commission shall prepare a Community-level summary.
3. The evaluation reports shall explain the methods used, including their implications
   for the quality of the data and the findings. Reports shall include a description of the
   context and contents of the programme, financial information and the answers -
   including the indicators used - to the common evaluation questions and the
   evaluation questions defined at national or regional level, as well as conclusions and
   recommendations. Their structure shall follow, as far as possible, a common structure
   for evaluation reports defined in guidelines drawn up by the Commission.
                                    SECTION 6
                        Applications, checks and penalties
                                      Article 66
1. Applications for rural development support for areas or animals which are lodged
   separately from aid applications under Article 6 of Regulation (EC) No 2419/2001
   shall indicate all the areas and animals on the holding which are relevant for
   checking the applications under the measure in question, including those for which
   no support is requested.
2. Where a rural development support measure relates to areas, parcels shall be
   identified individually. During the period covered by a commitment, parcels
   receiving support may not be exchanged except in cases specifically provided for in
   the programming document.
3. Where an application for payment is included with an application for an area
   payment in the context of the integrated administration and control system, the
   Member State shall ensure that parcels covered by applications for rural development
   support are declared separately.
4. Animals and plots of land shall be identified in accordance with Articles 18 and 20 of
   Regulation (EEC) No 1782/2003.
5. Where support is multiannual, payments subsequent to that made in the year an
   application was submitted shall be made in response to an annual application for
   payment, except where the Member State has introduced an effective annual
   verification procedure as referred to in Article 66(1).
                                          27
 ---pagebreak---                                              Article 67
1.        Initial applications to join a scheme and subsequent applications for payment shall be
          checked in a manner which ensures effective verification of compliance with the
          conditions for granting support.
          The Member States shall define suitable methods and means for verifying each
          support measure as well as the persons who shall be subject to checks.
          Wherever appropriate, Member States shall make use of the integrated administration
          and control system introduced by Regulation (EC) N°1782/2003.
2.        Verification shall consist of administrative and on-the-spot checks.
                                             Article 68
Administrative checks shall be exhaustive and shall include cross-checks wherever
appropriate, inter alia with data from the integrated administration and control system. They
shall relate to parcels and livestock covered by a support measure in order to avoid all
unjustified payments of aid. Compliance with long-term commitments shall also be checked.
                                             Article 69
On-the-spot checks shall be made in accordance with Title III of Regulation (EC) No
2419/2001. They shall cover at least 5% of beneficiaries each year and all the different types
of rural development measures set out in the programming documents. As regards the
measure “early retirement” referred to in Chapter IV of Regulation (EC) No 1257/1999 and
the measure “afforestation of agricultural land” referred to in Article 31 of that Regulation,
this rate can be reduced down to 2.5 % from the sixth year of support for these measures
onwards, without increasing the control rate for the other measures.
On-the-spot checks shall be spread over the year on the basis of an analysis of the risks
presented by each rural development measure. For investment support measures under
Chapters I, VII, VIII and IX of Title II of Regulation (EC) No 1257/1999, Member States may
provide that on-the-spot checks concern only those projects in the process of completion.
Checks shall cover all the commitments and obligations of a beneficiary which can be
checked at the time of the visit.
                                             Article 70
Articles 30 and 31 and Article 32(1) of Regulation (EC) No 2419/2001 shall apply to area
payments. Those provisions shall not apply to support under forestry measures other than
afforestation of agricultural land.
Articles 36, 38 and 40 of that Regulation shall apply to support based on livestock.
                                                 28
 ---pagebreak---                                            Article 71
1.      Article 44 of Regulation (EC) No 2419/2001 shall apply to support granted to all rural
        development measures.
2.      In the event of undue payment, the beneficiary under a rural development measure
        shall be under an obligation to repay the amount concerned in accordance with Article
        49 of Regulation (EC) No 2419/2001.
                                           Article 72
1.      Any beneficiary found to have made a false declaration as a result of serious
        negligence shall be excluded from all rural development measures under the relevant
        chapter of Regulation (EC) No 1257/1999 for the calendar year in question.
          Where a false declaration was made intentionally, the beneficiary shall be excluded
          for the following year as well.
2.      The penalties provided for in paragraph 1 shall apply without prejudice to additional
        penalties provided for under national rules.
                                           Article 73
Member States shall lay down the rules on penalties applicable to infringements of the
provisions of this Regulation and shall take all measures necessary to ensure that they are
implemented. The penalties provided for must be effective, proportionate and dissuasive.
                                      CHAPTER III
                                 FINAL PROVISIONS
                                           Article 74
1.      Regulation (EC) No 445/2002 is hereby repealed.
          Article 65(2) of Regulation (EC) n°445/2002 shall continue to apply.
2.      References to the repealed Regulation shall be construed as references to this
        Regulation and shall be read in accordance with the correlation table in Annex III.
                                           Article 75
This Regulation shall enter into force on the seventh day following its publication in the
Official Journal of the European Union.
Article 46 shall apply from 1 January 2000.
                                               29
 ---pagebreak--- This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 29 April 2004.
                                              For the Commission
                                              Franz FISCHLER
                                              Member of the Commission
                                                30
 ---pagebreak---                                         ANNEX I
                                       (Article 14)
        Eligible farm animal species            Thresholds under which a local breed is
                                               considered as being in danger of being lost
                                                               to farming
                                                    (number of breeding females *)
                    Cattle                                        7 500
                    Sheep                                        10 000
                    Goat                                         10 000
                   Equidae                                        5 000
                     Pigs                                        15 000
                    Avian                                        25 000
* Number, calculated for all EU Member States, of breeding females of the same breed
available for a pure-bred reproduction, included in a register recognised by the Member
State (e.g. herd book or zoological book).
                                            31
 ---pagebreak---                                         ANNEX II
                           RURAL DEVELOPMENT PLANS
1.   Title of rural development plan
2.   Member State and administrative region (if relevant)
3.1. Geographical area covered by the plan
      Article 41 of Regulation (EC) No 1257/1999
3.2  Regions classified as Objectives 1 and 2
      Article 40 of Regulation (EC) No 1257/1999
      Identify:
         – Objective 1 regions and Objective 1 regions in transition. This applies only to
             the accompanying measures (early retirement, compensatory allowances, agri-
             environment and afforestation of agricultural land under Article 31 of
             Regulation (EC) No 1257/1999);
         – Objective 2 regions. This applies to:
             1)    Accompanying measures
             2)    Other measures which do not form part of the Objective 2 programming.
4.   Planning at the relevant geographical level
      Article 41(2) of Regulation (EC) No 1257/1999
      Where exceptionally more than one rural development plan will apply in the region,
      indicate:
         – all the relevant plans;
         – why it is not possible to integrate measures into a single plan;
         – the relationship between measures in the different plans and details as to how
             compatibility and consistency between plans will be ensured.
5.   Quantified description of the current situation
      First indent of Article 43(1) of Regulation (EC) No 1257/1995
      1.     Description of the current situation
             Describe the current situation of the geographical area using quantified data,
             highlighting strengths, disparities, gaps and potential for rural development.
             This description should concern both agriculture and forestry (including the
             type and extent of handicaps affecting farming in less-favoured areas), the rural
                                             32
 ---pagebreak---          economy, the demographic situation, human resources, employment and the
         state of the environment.
    2.   Impact from the previous programming period
         Describe the impact of EAGGF financial resources allocated to rural
         development during the previous programming period and under
         accompanying measures since 1992. Present the results of evaluations.
    3.   Other information
         Where relevant, also describe any supplementary measures in addition to
         Community rural development and accompanying measures which have had an
         impact on the programming area concerned.
6. Description of the strategy proposed, its quantified objectives, the rural
   development priorities selected and the geographical area covered
    Second indent of Article 43(1) of Regulation (EC) No 1257/1999
    1.   Proposed strategy, quantified objectives and priorities selected
         In the light of the strengths, disparities, gaps and development potential
         identified in the area concerned, describe in particular:
            – the priorities for action;
            – the appropriate strategy to attain the objectives;
            – the operational objectives and expected impact, quantified where
                possible, also in terms of both monitoring and estimates that can be used
                for evaluation purposes;
            – the extent to which the strategy takes account of the specific features of
                the areas concerned;
            – how the integrated approach has been applied;
            – the extent to which the strategy provides for the involvement of women
                and men;
            – the extent to which the strategy takes account of all relevant international
                Community and national obligations in the field of the environment,
                including those relating to sustainable development, in particular the
                quality and use of water, conservation of biodiversity including on-farm
                conservation of crop varieties, and global warming.
    2.   Description and effects of other measures
         Where relevant, the description must also include any measures taken outside
         the rural development plan (other Community measures or national measures,
         such as compulsory rules, codes of practice and State-aided measures) and the
         extent to which these measures meet the needs identified.
                                          33
 ---pagebreak---     3.    Areas covered by specific territorial measures
          Describe the geographical coverage of any measures as defined at point 8
          which do not apply throughout the region indicated at point 3.
          In particular, include:
             – the list of less-favoured areas adopted for the area concerned;
             – any amendments to the list of less-favoured areas, giving the reasons
                (Article 55(4) of Regulation (EC) No 1257/1999);
             – areas with environmental restrictions, giving reasons.
    4.    Timetable and uptake
          Proposed timetable for implementing the various measures, expected uptake
          and duration (see also point 8).
7. Appraisal showing the expected economic, environmental and social impact
    Third indent of Article 43(1) of Regulation (EC) No 1257/1999
    Detailed description in accordance with Article 43 of Regulation (EC) No
    1257/1999.
                                           34
 ---pagebreak--- 8.          Indicative overall financial table (EAGGF financial year)
              Article 43(1), fourth indent, of Regulation (EC) No 1257/1999
              Financial programming table: rural development programmes (EUR million)
                                         Year 1                               ......Year 7                          TOTAL
                            Public        EC       Private sector Public         EC        Private sector Public    EC       Private sector
                          expenditure contribution contribution expenditur contribution contribution expenditur contribution contribution
                                                                     e                                      e
                              (1)          (2)          (3)                      (2)            (3)                  (2)          (3)
                                                                    (1)                                    (1)
Priority A
Measure A1 (e.g. agri-
environment and animal
welfare)
Of which measures
approved under Regulation
(EEC) No 2078/1992)
Measure A2…
…Measure An
Total A
Priority B….
Measure B1 (e.g. early
retirement)
Of which measures
approved under Regulation
(EEC) No 2079/1992)
Measure B2…
…Measure Bn
Total B
... Priority N
Measure N1 (e.g.
afforestation)
Of which measures
approved under Regulation
(EEC) No 2080/1992)
Measure N2…
…Measure Nn
Total N
Other measures
Evaluation
Former measures from
before 1992
Transitional measures (4)
Total other measures
Total expenditure
incurred (D)
Total plan (P) (5)
Under-utilisation (P-D)
Over-utilisation (D-P)
(1)           Column for planned (public) expenditure, provided for guidance.
                                                             35
 ---pagebreak--- (2)          Column for the Community contribution planned for each measure. The Community
             contribution relating to expenditure to be paid is calculated using the rates and
             arrangements laid down in the programme for each measure. The Community
             contribution can be calculated in relation to eligible public expenditure (column
             2/column 1) or total eligible cost [column 2/(column 1 + column 3)].
(3)          Column for planned (private-sector) expenditure, provided for guidance when such a
             contribution is foreseen for the measure.
(4)          Article 4(2) of Regulation (EC) No 2603/1999. The Member States must define the
             criteria, identifying clearly the expenditure to be included in programming.
(5)          Calculated on the basis of the financial table annexed to the Commission Decision
             approving the programming document as last amended.
         APPLICATION OF APPROPRIATIONS RESULTING FROM MODULATION
                           Year 1                    Year 2                 ......Year 7                   Total
                   Public           EC        Public        EC         Public            EC        Public          EC
                expenditure    contribution expenditure contribution expenditure    contribution expenditure   contribution
Early
retirement
Agri-
environment
and animal
welfare
Afforestation
Less-
favoured
areas
Total
modulation
Note:
Where a measure is entered simultaneously under more than one priority, the Member State
shall provide, for the purposes of financial management, an additional table consolidating all
expenditure relating to the measure. This additional table should follow the structure of the
table above and the order of the list below. Idem for Member States with a consolidated
financial table.
The consolidated financial table referred to in Article 48(1) of this Regulation must follow the
structure of the table above and the order of the list below.
                                                          36
 ---pagebreak--- -----------------------------------------------------------------------------------------
–          The different measures are defined as follows:
           (a)    investment in farms;
           (b)    start-up assistance for young farmers;
           (c)    training;
           (d)    early retirement;
           (e)    less-favoured areas and areas with environmental restrictions;
           (f)    agri-environment and animal welfare;
           (g)    improving processing and marketing of agricultural products;
           (h)    afforestation of agricultural land;
           (i)    other forestry measures;
           (j)    land improvement;
           (k)    reparcelling;
           (l)    setting up farm advisory services, farm relief services and farm management
                  services;
           (m) marketing of quality agricultural products, including the setting-up of quality
                  schemes;
           (n)    basic services for the rural economy and population;
           (o)    renovation and development of villages and protection and conservation of the
                  rural heritage;
           (p)    diversifying agricultural activities and activities close to agriculture to provide
                  multiple activities or alternative sources of income;
           (q)    agricultural water resources management;
           (r)    development and improvement of infrastructure connected with the
                  development of agriculture;
           (s)    encouragement for tourist and craft activities;
           (t)    protecting the environment in connection with agriculture, forestry and
                  landscape management and improving animal welfare;
           (u)    restoring agricultural production potential damaged by natural disasters and
                  introducing appropriate prevention instruments;
           (v)    financial engineering.
                                                       37
 ---pagebreak---     (w) management of integrated rural development strategies by local partners;
    (x)    implementing demanding standards;
    (y)    use of farm advisory services;
    (z)    participation in food quality schemes;
    (aa) promotion of quality products.
–   Measures (j) to (w) may be defined as a single measure: (j) promoting the adaptation
    and development of rural areas.
–   EAGGF Guarantee Section resources for measures to promote the adaptation and
    development of rural areas (Article 33 of Regulation (EC) No 1257/1999) in
    Objective 2 (rural) areas: EUR …………..million (% of total for Article 33)."
9. Description of the measures designed to implement the plans
    Fifth indent of Article 43(1) of Regulation (EC) No 1257/1999
    For each point below, provide:
    A.     the main features of support measures,
    B.     other information.
    1.     General requirements
           A.    Main features of support measures:
                    – list of measures in the order presented in Regulation (EC) No
                       1257/1999;
                    – identify the specific article (and paragraph) which covers each rural
                       development payment measure. Where two or more articles are
                       cited, the payment measure must be divided into its constituent
                       parts.
                    – overall objective of each measure
    2      Requirements concerning all or several measures(1).
           A.    Main features:
                    – exceptions referred to in the first indent of the second subparagraph
                       of Article 37(3) of Regulation (EC) No 1257/1999.
           B.    Other information:
                    – Community contribution based on either the total cost or public
                       expenditure;
                                           38
 ---pagebreak---             – aid intensity and/or amount and differentiation applied (Chapters I
               to VIII);
            – details of eligibility conditions;
            – criteria to demonstrate economic viability (Chapters I, II, IV and
               VII);
            – usual good farming practice (Chapters V and VI);
            – minimum standards regarding environment, hygiene and animal
               welfare (Chapters I, II and VII);
            – level of occupational skill and competence required (Chapters I, II
               and IV);
            – sufficient assessment of the existence of normal market outlets for
               the products concerned (Chapters I and VII) in accordance with
               Articles 6 and 26 of Regulation (EC) No 1257/1999;
            – description of all ongoing contracts (from the previous period),
               including in financial terms, and the procedures/rules which apply
               to these.
3. Information required for specific measures
   In addition, the following specific information is required for measures under
   the individual chapters:
   I.    Investment in agricultural holdings
         A.    Main features:
                   – primary production sectors and types of investments.
         B.    Other information:
                   – maximum limits on total amount of investment eligible for
                     support;
                   – types of support.
                   – designation of the standards for which a period of grace can
                     be granted to the farmer in accordance with article 5(3) of
                     Regulation (EC) No 1257/1999, justification related to the
                     specific problems involved in complying with these standards
                     and maximum duration of the period per standard concerned.
   II.   Start-up assistance for young farmers
         A.    Main features:
               None.
                                    39
 ---pagebreak---      B.    Other information:
              – length of time allowed for young farmers to fulfil the
                 eligibility criteria within the five-year period authorised
                 under Article 4 (2) of this Regulation,
              – age limit,
              – conditions applying to young farmers not established as sole
                 head of the holding or who start up as members of
                 associations or cooperatives whose main purpose is to
                 manage an agricultural holding,
              – type of start-up support.
              – designation of farm advisory services linked to the setting-up
                 of young farmers in cases where the support granted is higher
                 than provided for in the second subparagraph of Article
                 8(2)(b) of Regulation (EC) No 1257/1999.
III. Training
     A.    Main features:
           None.
     B.    Other information:
              – eligible measures and beneficiaries;
              – assurance that no normal education system or programmes
                 are proposed for financing.
IV.  Early retirement
     A.    Main features:
           None.
     B.    Other information:
              – detailed description of conditions concerning transferor,
                 transferee, worker and land released, in particular the use of
                 land to be retained by the transferor for non-commercial
                 purposes and the length of time allowed to improve viability;
              – type of aid, including a description of the method used for
                 calculating the maximum amount to be part-financed per
                 holding and a justification for each type of beneficiary;
              – description of national retirement and early-retirement
                 schemes;
              – details on the duration of the aid.
                               40
 ---pagebreak--- V. Less-favoured areas and areas with environmental restrictions
   A.    Main features:
             – amount of aid:
         1)    for compensatory allowances under Article 13(a) of
               Regulation (EC) No 1257/1999: proposals to exceed the
               maximum amount which can be part-financed in accordance
               with the second subparagraph of Article 15(3) of Regulation
               (EC) No 1257/1999 must include the necessary justification.
               Specify how it will be assured that the upper limit for
               compensatory allowances is complied with in these cases and
               explain the administrative procedure by which compliance
               with the maximum amount that can be part-financed will be
               ensured; where the maximum payment as laid down in the
               Annex to Regulation (EC) No 1257/1999 is applied, indicate
               the objective circumstances justifying this application;
         2)    for compensatory allowances under Articles 13(b) and 16 of
               Regulation (EC) No 1257/1999: the initial detailed
               agronomic calculations showing: (a) income foregone and
               costs incurred as a result of the environmental restrictions, (b)
               agronomic assumptions used as reference point;
         3)    for compensatory allowances as referred to in Article 16 of
               Regulation (EC) No 1257/1999:
             – indicate, if necessary, the specific problems justifying a
               higher support than the maximum amount, as provided for in
               the first subparagraph of Article 16(3) of the above
               Regulation;
             – indicate, if necessary, the justification for initially higher
               support as provided for in the second subparagraph of Article
               16(3) of the above Regulation.
   B.    Other information:
             – details of eligibility conditions, in particular:
         1)    definition of the minimum area;
         2)    description of the appropriate conversion mechanism used in
               the case of common pastures;
         3)    amount of aid for payments referred to in point (a) of Article
               13 of Regulation (EC) No 1257/1999: justification of
               differentiation of the amount of aid using the criteria set out
               in Article 15(2) of that Regulation;
         4.)   for compensatory allowances referred to in point (b) of
               Article 13 and Article 16 of Regulation (EC) No 1257/1999:
                              41
 ---pagebreak---                  changes to the detailed agronomic calculations fixed in the
                 programming document as approved;
              – amendments to the lists of less-favoured areas adopted or
                 amended by Council and Commission Directives, and the list
                 of areas with environmental restrictions.
VI.   Meeting standards
VI.1. Implementing demanding standards
      A.   Main features:
              – list of standards based on Community legislation eligible for
                 support under Article 21b of Regulation (EC) No 1257/1999,
                 date from which the standard is mandatory in accordance
                 with Community legislation and justification of choice.
      B.   Other information:
              – description of the significant impact on farm operating costs
                 stemming from the obligations or restrictions imposed by the
                 new standard;
              – amount of support per eligible standard and detailed
                 calculations justifying this amount.
VI.2. Use of farm advisory services
      A.   Main features:
                 None.
      B.   Other information:
              – description of the farm advisory system put in place by the
                 Member State, including the procedure for the selection of
                 the bodies responsible for the advisory services.
              – frequency of support granted to a farmer for the use of
                 agricultural advisory services in the four areas referred to in
                 article 21d (1) of Regulation (EC) No 1257/1999
VII. Agri-environment and animal welfare
      A.   Main features:
              – justification for the commitments, based on their expected
                 impact;
              – the initial detailed agronomic calculations showing: (a)
                 income foregone and cost incurred in relation to usual good
                               42
 ---pagebreak---                    farming practice; (b) the agronomic assumptions used as
                   reference point; (c) the level of incentive and a justification
                   for this based on objective criteria;
      B.    Other information:
                – the list of local breeds in danger of being lost to farming and
                   the number of breeding females for the areas concerned. That
                   number must be certified by a duly recognised technical body
                   - or breeder's organisation/association - which must register
                   and keep up-to-date the herd or flock book for the breed. The
                   body concerned must possess the necessary skills and
                   knowledge to identify animals of the breeds in,
                – for plant genetic resources under threat of genetic erosion,
                   evidence of genetic erosion based upon scientific results and
                   indicators for the occurrence of landraces/primitive (local)
                   varieties, their population diversity and the prevailing
                   agricultural practices at local level;
                – details of obligations on farmers and any other terms of the
                   commitment, including scope and procedures for adjusting of
                   running contracts,
                – changes to the level of support up to 120 % of the costs and
                   income lost indicated in the agronomic calculations fixed in
                   the programming document as approved and the justification
                   for these changes
                – description of coverage of the measure, showing its scope in
                   relation to needs and its degree of targeting in terms of
                   geographical, sectoral or other coverage;
                – for all the agri-environment and animal welfare commitments
                   together, the possible ways of combining commitments
                   should be shown and the mutual consistency of commitments
                   should be ensured.
VIII. Food quality
VIII.1. Participation in food quality schemes
      A.    Main features
                – list of Community and national quality schemes eligible for
                   support. For national schemes, description of the scheme
                   regarding the criteria referred to in Article 24b(3) of
                   Regulation No 1257/1999.
      B.    Other information
                                 43
 ---pagebreak---                – amount of support per type of eligible scheme and
                   justification for fixed costs as provided for in Article 24c of
                   Regulation No 1257/99.
VIII.2. Promotion of quality products
      A.    Main features
               – None.
      B.    Other information
               – list of products qualifying for support under the quality
                   scheme chosen under the measure referred to in VIII.1;
               – procedure for ensuring that actions benefiting from rural
                   development support are not also supported under Council
                   Regulation (EC) No 2826/2000;
               – procedure for ex-ante checks on information, promotion, and
                   advertising materials (Article 26 of this Regulation);
               – description of eligible costs.
IX.   Improving the processing and marketing of agricultural products
      A.    Main features
               – sectors of basic agricultural production
      B.    Other information
               – criteria to prove economic benefits for primary producers,
               – designation of the standards for which a period of grace can
                   be granted to the small processing units in accordance with
                   article 26(1), second indent, of Regulation (EC) No
                   1257/1999, justification related to the specific problems
                   involved in complying with these standards and maximum
                   duration of the period per standard concerned..
X.    Forestry
      A.    Main features:
               – None
      B.    Other information:
               definition of:
               (i)       "agricultural land" in relation to Article 32 of this
               Regulation;
                                  44
 ---pagebreak---                           (ii)      “farmer" in relation to Article 33 of this Regulation;
                          (iii)     provisions ensuring that the planned measures are suited
                          to local conditions and compatible with the environment as well
                          as keeping balance between forestry and game populations
                          where applicable;
                          (iv)      contractual arrangements between regions and potential
                          beneficiaries concerning measures referred to in Article 32 of
                          Regulation (EC) No 1257/1999.
                – where the standard costs referred to in Article 46 are applied:
                   –       (i)      the standard unit costs;
                   –       (ii)     the method used to fix those costs;
                   –       (iii)    compliance     with     the  criterion  of  avoidance  of
                           overcompensation
                – description of eligible measures and beneficiaries;
                – linkage between proposed measures and national/sub-national forest
                   programmes or equivalent instruments;
                – reference to the forest protection plans for areas classified as high or
                   medium risk for forest fires and the conformity of proposed measures
                   with these protection plans.
           XI.   Promoting the adaptation and development of rural areas
                 A.    Main features:
                          – description and justification of the action proposed under
                               each measure.
                 B.    Other information:
                          – definition of financial engineering, which must comply with
                               the general eligibility criteria.
10. Need for any studies, demonstration projects, training or technical assistance
    operations (where applicable)
     Sixth indent of Article 43(1) of Regulation (EC) No 1257/1999
11. Designation of competent authorities and bodies responsible
     Seventh indent of Article 43(1) of Regulation (EC) No 1257/1999
12. Provisions to ensure the effective and correct implementation of the plans,
    including monitoring and evaluation, a definition of quantified indicators for
    evaluation, arrangements for controls and sanctions and adequate publicity.
                                             45
 ---pagebreak---      Eighth indent of Article 43(1) of Regulation (EC) No 1257/1999
     1.    Detailed information on the implementation of Articles 60 to 65 of this
           Regulation
           This should include in particular:
              – the possibility of granting advances to certain beneficiaries of investment
                 measures,
              – the description of the financial circuits for the payment of assistance to
                 final beneficiaries,
              – the arrangements for monitoring and evaluating the programme, notably
                 systems and procedures for collecting, organising and coordinating data
                 relating to financial, physical and impact indicators,
              – the role, composition and rules of procedure of any monitoring
                 committees,
              – codification. This codification shall be in accordance with the model
                 provided by the Commission.
           2.    Detailed information on the implementation of Articles 66 to 73 of this
                 Regulation.
                 This should include the specific control measures planned to verify the
                 substance of claims and compliance with the conditions for support as
                 well as the specific rules on penalties.
           3.    Detailed information on compliance with the general eligibility criteria
                 laid down in Regulation (EC) No 1685/2000.
                 Article 45 of this Regulation.
           4.    Other information:
                 Where appropriate, information that the time limit for notifying cases of
                 force majeure has been extended (Article 39(2) of this Regulation).
13. Results of consultations and designation of associated authorities and bodies as
    well as economic and social partners
     Ninth indent of Article 43(1) of Regulation (EC) No 1257/1995
     1.    Describe:
              – the economic and social partners and other relevant national bodies to be
                 consulted in accordance with national rules and practice,
              – the agricultural and environmental authorities and bodies to be involved,
                 in particular, in preparing, implementing, monitoring, evaluating and
                 reviewing agri-environment measures and other measures targeting the
                                            46
 ---pagebreak---                  environment, thus ensuring a balance between these measures and other
                 rural development measures.
     2.    Summarise the results of consultations and indicate the extent to which the
           views and advice received have been taken into account
14. Balance between the different support measures
     Second indent of Article 43(2) of Regulation (EC) No 1257/1999
     1.    Describe, with reference to strengths, needs and potential:
              – the balance between the different rural development measures;
              – the extent to which the agri-environment measures apply throughout the
                 territory.
     2.    This description shall refer (as the case may be) to:
              – measures taken outside the scope of Council Regulation (EC) No
                 1257/1999,
              – measures taken or planned under separate rural development plans.
15. Compatibility and consistency
     Article 37(2) of Regulation (EC) No 1257/1999
     A.    Main features
           1.    Appraisal of compatibility and consistency with:
                    – other Community policies and measures implemented under those
                        policies, in particular competition policy,
                    – other common agricultural policy instruments, in particular where
                        exceptions under Article 37(3) of Regulation (EC) No 1257/1999
                        are provided for,
                    – other support measures included in the rural development plans,
                    – the general eligibility criteria.
           2.    For measures under Article 33 of Regulation (EC) No 1257/1999, ensure
                 and, where necessary, demonstrate that:
                    – measures adopted under the sixth, seventh and ninth indents of that
                        Article are not receiving financial assistance from the ERDF for
                        rural areas covered by Objective 2 and in areas in transition,
                    – measures are not covered by any other measure referred to in Title
                        II of Council Regulation (EC) No 1257/1999.
     B.    Other information.
                                             47
 ---pagebreak---                In particular, appraisal shall cover arrangements to ensure proper
               coordination with the various authorities responsible for:
                  – development measures provided for under the market organisations,
                  – any rural development measures provided for under national legislation.
16.   Additional State aids
        Article 52 of Regulation (EC) No 1257/1999
        A.     Main features
               Identify the measures to which additional financing will be granted in the form
               of State aid [Article 52 of Council Regulation (EC) No 1257/1999]. The
               amount of additional support to be granted for each of the measures concerned
               during each year covered by the plan should be shown in an indicative table.
        B.     Other information
– abolition of a State aid;
– changes to the additional financing in the form of State aid granted for any of the
measures in the programming document as approved;
– rate of aid.
                                              48
 ---pagebreak---                                     ANNEX III
                              CORRELATION TABLE
        Regulation (EC) No 445/2002                 Present Regulation
Article 1                                -
                                         Article 1
Article 2                                Article 2
Article 3(1)                             -
Article 3(2)                             Article 3
Article 4                                Article 4
Article 5 (1)                            Article 5
Article 5(2) and (3)                     -
Article 6                                Article 6
Article 7                                Article 7
Article 8                                Article 8
Article 9                                Article 9
Article 10                               Article 10
Article 11                               Article 11
Article 12                               -
-                                        Article 12
Article 13                               Article 13
Article 14                               Article 14
Article 15                               Article 15
Article 16                               Article 16
Article 17                               Article 17
Article 18                               Article 18
Article 19                               Article 19
Article 20                               Article 20
                                       49
 ---pagebreak--- Article 21      Article 21
-               Article 22
-               Article 23
-               Article 24
-               Article 25
-               Article 26
Article 22      Article 27
-               Article 28
Article 23      Article 29
Article 24      Article 30
Article 25      Article 31
Article 26      Article 32
Article 27      Article 33
Article 28      Article 34
Article 29      Article 35
Article 30      Article 36
Article 31      Article 37
Article 32      Article 38
Article 33      Article 39
Article 34      Article 40
Article 35(1)   Article 41(1)
Article 35(2)   Article 41(3)
Article 35(3)   Article 41(2)
Article 36      Article 42
Article 37      Article 43
Article 38      Article 44
Article 39      Article 45
              50
 ---pagebreak--- Article 39a   Article 46
Article 40    Article 47
Article 41    Article 48
Article 42    Article 49
Article 43    Article 50
Article 44    Article 51
Article 45    Article 52
Article 45a   Article 53
Article 46    Article 54
Article 47    Article 55
Article 48    Article 56
Article 49    Article 57
Article 50    Article 58
Article 51    Article 59
Article 52    Article 60
Article 53    Article 61
Article 54    Article 62
Article 55    Article 63
Article 56    Article 64
Article 57    Article 65
Article 58    Article 66
Article 59    Article 67
Article 60    Article 68
Article 61    Article 69
Article 62    Article 70
Article 62a   Article 71
Article 63    Article 72
            51
 ---pagebreak--- Article 64      Article 73
Article 65(1)   Article 74(1), first subparagraph and 74(2)
Article 65(2)   Article 74(1), second subparagraph
Article 66      Article 75, first subparagraph
-               Article 75, second subparagraph
Annex I         Annex I
Annex II        Annex II
Annex III       Annex III
              52