CAP Reform:A long-term policy perspective for sustainable agriculture - Proposal for a Council Regulation establishing common rules for direct support schemes under the common agricultural policy and support schemes for producers of certain crops - Montesquieu Instituut

 

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COUNCIL OFBrussels, 4 June 2003

THE EUROPEAN UNION

10162/03

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AGRI 184 AGRIFIN 72

NOTE

from :

Presidency

on 4 June 2003

to High Level Group "CAP Reform"

No. Cion prop. : 5586/03 - COM (2003) 23 final Subject :

CAP Reform : A long-term policy perspective for sustainable agriculture

• - 

  Proposal for a Council Regulation establishing common rules for direct support

schemes under the common agricultural policy and support schemes for producers of certain crops

Delegations will find attached a Presidency discussion document concerning the above-mentioned

proposal.1

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Tuesday, 03 June 2003

Proposal for a

COUNCIL REGULATION

establishing common rules for direct support schemes

under the common agricultural policy and establishing

support schemes for producers of certain crops

(...) (3) In order to avoid the abandonment of -

agricultural land and ensure that it is maintained land in good agricultural condition, standards should be established for a number of areas in which standards do not currently exist. Those standards should be based on good farming practices which may or may not have a basis in provisions of the Member States. It is therefore appropriate to establish a Community framework within which Member States may adopt standards taking account of the specific characteristics of the areas concerned, including soil and climatic conditions and existing farming systems (land use, crop rotation, farming practices) and farm structures.

whereas:

(...)

(7) In order to facilitate the introduction of the -

farm advisory system, it should be

provided for a time-period for Member States to set-up the system. Farmers should be able to enter the system on a voluntary basis for producers with a priority for those who receive more than a

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certain amount per year in direct payments. Due to its nature of affording advice to farmers,

it is appropriate for the

information obtained in the course of the advisory

activity to be treated as

confidential, except in case of serious infringements of Community or national law.

(41a) The present regulation covers the -

Community as constituted at the time of its entry into force. Taking into account the fact that, according to the Treaty of Accession of [list of MS], the accession of the new Member States shall take place on 1

st May

2004, the present regulation should be adapted, by the date of accession, according to the procedures provided for by the Treaty of accession, in order to make it applicable to the new Member States.

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TITLE I

SCOPE AND DEFINITIONS -

Article 1

To be added: "under income support schemes"

To be replaced: ", breeding animals and keeping animals for farming purposes,"

Scope

This Regulation establishes:

• - 

  common rules on direct payments under support schemes in the framework of the common agricultural policy which are financed by the "Guarantee" Section of the European Agricultural Guidance and Guarantee Fund (EAGGF), except those provided for under Regulation (EC) No 1257/1999;
• - 

  an income support for farmers (hereinafter referred to as the "single payment scheme");
• - 

  support schemes for producers of durum wheat, protein crops, rice, nuts, energy crops and potato starch.

Article 2

Definitions

For the purposes of this Regulation, the following definitions shall

apply:

(a) "farmer " means a natural or legal person, or a group of natural or legal persons, whatever legal status is granted to the group and its members by national law, whose holding is situated within Community territory, as referred to in Article 299 of the Treaty, and who exercises an agricultural activity,

(b) "holding " means all the production units managed by a farmer situated within the territory of the same Member State,

(c) "agricultural activity " means the production, rearing or growing of agricultural products including harvesting,

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milking and breeding and keeping animals for farming purposes, or maintaining the land in good agricultural conditions as established under Article 5,

To be added: "under an income support scheme"

(d) "direct payment " means a payment granted directly to farmers under a support scheme listed in Annex I,

To be replaced: "payments in a given calendar

year" or "payments in the reference period" "

means the payments granted or to be granted in respect of the year/years concerned, including all payments in respect of other periods starting in that calendar year/years,

(e) "payments in a given calendar year " means the payments granted or to be granted in respect of the year concerned, including all payments in respect of other periods starting in that calendar year,

(f) "agricultural products " means the products listed in annex

I of the Treaty, including cotton, but with the exception of fishery products.

TITLE II

GENERAL PROVISIONS -

(see annex III)

Chapter 1

Cross compliance

Article 3

Main requirements

• 1. 

  A farmer receiving direct payments shall respect the statutory management requirements referred to in Annex III and the good agricultural conditions established under Article 5.
• 2. 

  The competent national authority shall provide the farmer with the list of statutory management requirements and good agricultural conditions to be respected.

Article 4

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Statutory management requirements

delete "occupational health and safety"

To replace paragraph 1: "1. Member States shall ensure that all agricultural land, especially land which is no longer used for production purposes, is maintained

• 1. 

  The statutory management requirements referred to in Annex III shall be established by Community legislation in the following areas:
• - 

  public, animal and plant health,
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  occupational health and safety,
• - 

  environment,
• - 

  animal welfare.
• 2. 

  The acts referred to in Annex III shall apply within the framework of this Regulation in the version as amended from

time to time.

Article 5

Good agricultural conditions

1. Member States shall define good agricultural conditions taking into

account the framework set up in Annex IV.

2. Member States shall ensure that land which was under permanent in good agricultural and

environmental conditions. Member States shall

define

pasture on 31 December 2002 is maintained under permanent minimum requirements for good

agricultural and environmental conditions taking into account on the basis of the framework set up in Annex IV, taking into account the specific characteristics of the areas concerned, including soil and climatic conditions, existing farming systems, land use, crop rotation, farming practices, and farm structures. This is without prejudice to the standards governing good agricultural practices as applied in the context of Council Regulation (EC) 1257/1999

pasture.

However a Member State may, in duly justified circumstances

and notably for specific environmental reasons, derogate from

the preceding subparagraph, provided that it takes action to

prevent any significant decrease in its total permanent pasture

1 and to agri-

1 Council Regulation (EC) 1257/1999 of 17 May 1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund

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area. environment measures applied above the reference level of good agricultural practices."

Article 6

Reduction or exclusion from payments

• 1. 

  Where the statutory management requirements or good agricultural conditions are not complied with, the total amount of direct payments to be granted in the calendar year in which the non-compliance occurs, and after application of Articles 10 and 11, shall be reduced or cancelled in accordance with the detailed rules laid down under Article 7.

"1. Where the statutory management requirements

or good agricultural conditions are not complied

with as a result of an action or omission

directly attributable to the individual farmer,

• 2. 

  The reductions or exclusions referred to in paragraph 1 shall only apply if the non-compliance relates to: the total amount of direct payments to be granted

in the calendar year in which the non-compliance

(a) an agricultural activity, occurs, and after application of Articles 10 and

(b) an agricultural land of the holding, including the parcels on long term set aside, 11, shall be reduced or cancelled in accordance

with the detailed rules laid down under Article 7.

(c) the labour force used, even on a temporary basis, on the holding for agricultural activities.

Article 7

Detailed rules for reduction or exclusion

• 1. 

  Detailed rules for the reductions and exclusions referred to in Article 6 shall be laid down in accordance with the procedure referred to in Article 82(2). In this context, account shall be taken of the severity, extent, permanence and repetition of the non-compliance found as well as of the criteria set out in paragraphs 2, 3 and 4.

(EAGGF) and amending and repealing certain Rgulations.

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• 2. 

  In case of negligence, the percentage of reduction shall not exceed 10% and, in case of repeated non-compliance, 20%.
• 3. 

  In case of intentional non-compliance, the percentage of reduction shall not in principle be less than 30% and may go as far as total exclusion from one or several aid schemes and apply for one or more calendar years.
• 4. 

  In any case, the total amount of reductions and exclusions for one calendar year shall not be more than the total amount referred to in Article 6(1).

Article 8

Supplementary statutory management requirements

Where a Member State considers that a supplementary statutory

management requirement should be added to the list set out in Annex

III, it shall submit a corresponding request to the Commission.

Such a supplementary statutory management requirement may be added

to the list set out in Annex III in accordance with the procedure referred

to in Article 82(2).

Article 9

Amounts resulting from cross compliance

The amount resulting from the application of this Chapter shall be

credited to the EAGGF "Guarantee" Section. Member State may retain

20% of those amounts.

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Chapter 2

Degression and modulation -

Article 10

Degression

• 1. 

  All the amounts of direct payments to be granted in a given calendar year to a farmer [....] shall be reduced for each year until 2012 by the following percentages:
• - 

  1% in 2006,
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  4% in 2007,
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  12% in 2008,
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  14% in 2009,
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  16% in 2010,
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  18% in 2011,
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  19% in 2012.
• 2. 

  The percentages referred to in paragraph 1 may be modified in accordance with the procedure referred to in Article 82(2).

Article 11

Additional amount of aid

• 1. 

  An additional amount of aid shall be granted to farmers receiving direct payments under this Regulation. This amount shall be calculated as follows:

(a) up to EUR 5 000 of direct payments, the additional

amount of aid shall be equal to the amount resulting from the application of the percentage of reduction for that calendar year under Article 10; [.....]

(b) for the amount exceeding 5 000 and up to EUR

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50 000, the additional amount of aid shall be equal to half of the amount resulting from the application of the percentage of reduction for that calendar year under Article 10 reduced by the percentages points referred to in Article 12. [....]

• 2. 

  The total additional amounts of aid which may be granted in a Member State in a calendar year shall not be higher than the ceilings set out in Annex II. Where necessary, Member States shall proceed to a linear percentage adjustment of additional amounts of aid in order to respect the ceilings set out in Annex II.
• 3. 

  The additional amount of aid shall not be subject to the reductions referred to in Article 10.

Article 12

Modulation

• 1. 

  The amounts resulting from application of the following percentage points of the reductions provided for in Article 10 shall be available as additional Community support for measures under rural development programming financed under the EAGGF "Guarantee" Section according to Regulation (EC) No 1257/1999:
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  2006: 1%,
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  2007: 2%,
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  2008: 3%,
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  2009: 4%,
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  2010: 5%,
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  2011: 6%,
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  2012: 6%.
• 2. 

  The amounts referred to in paragraph 1 shall be allocated to the Member States concerned in accordance with the

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procedure referred to in Article 82(2) on the basis of the following criteria:

• - 

  agricultural area,
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  agricultural employment,
• - 

  gross domestic product (GDP) per capita in purchasing power.

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Chapter 3

Farm advisory system -

Article 13

Farm advisory system

• 1. 

  By 1 January 2006, Member States shall set up a system of "By January 2007"

advising farmers on land and farm management (hereinafter referred to as the "farm advisory system") operated by one or more designated authorities or by private bodies approved in accordance with Article 16.

• 2. 

  The advisory activity shall cover at least the statutory management requirements and the good agricultural conditions referred to in Chapter I.

Article 14

Conditions

• 1. 

  Farmers may participate in the farm advisory system on a voluntary basis.

Paragraph 2, to be replaced by:

• 2. 

  Starting from 1 January 2007, Member States shall ensure that all farmers who receive more that EUR 15 000 of direct payments per year or have a turnover of more than EUR 100 000 per year shall participate in the farm advisory system within periods of 5 years, at a minimum of 15% rate per year. 2. Member States shall give priority to the farmers

who receive more that EUR 15 000 of direct

payments per year.

Article 15

Supervisory authority

Where the farm advisory system is operated by private bodies, Member

States shall designate an authority responsible for the approval and

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supervision of such bodies (hereinafter referred to as the "supervisory

authority").

Article 16

Approval of private bodies

• 1. 

  A private body may only be approved by the supervisory authority of the Member State where it has its principal place of business and, if any, its registered office. Once approved, it may operate throughout the entire Community.
• 2. 

  In order to be approved, a private body 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 management requirements and good agricultural conditions referred to in Chapter I on which it intends to advice.

Article 17

Supervison of private bodies

• 1. 

  After a private body has been approved, the supervisory authority

shall:

(a) ensure that the body carries out its activities in an objective manner;

(b) verify the effectiveness of the body's activities;

(c) withdraw the approval if the body fails to comply with the requirements and obligations referred to in Articles 16 and 18.

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• 2. 

  Approved private bodies shall:

(a) allow the supervisory authority access to their offices and facilities for inspection purposes and provide any information and assistance deemed necessary by that authority for the fulfilment of its obligations pursuant

to this Regulation;

(b) send to the supervisory authority by 31 January each year a list of farmers subject to their activity until 31 December of the previous year and present to the said authority a concise annual report on its advisory activities. The report shall not disclose any personal or individual information or individual holding data.

Article 18

Obligations of approved private bodies and designated authorities

The designated authorities and the approved private bodies referred to in

Article 13 shall:

(a) ensure that the advisory activity on the statutory management requirements and good agricultural conditions has been carried out on the holdings subject to their activity;

(b) not disclose personal or individual information and data they obtain in their advisory activity to persons other than the farmer managing the holding concerned, except any irregularity or infringement found during their activity which is covered by an obligation laid down in Community or national law to inform a public authority, in particular in case

of criminal offences.

Article 19

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Obligations for the farmers To be replaced by:

In case a farmer refuses to participate in the farm advisory system or Article 19

does not provide the information and assistance deemed necessary by Review

the private bodies or designated authorities for the fulfilment of their

By 31.12.2010 at the latest, the Commission shall submit a report on the application of this system, accompanied, if necessary, by appropriate proposals with a view of rendering it compulsory.

advisory activities or provides false information, he shall be subject to

the reductions and exclusions referred to in Article 6.

Chapter 4

Integrated administration and control system -

Article 20

Scope

Each Member State shall set up an integrated administration and control

system, hereinafter referred to as the "integrated system".

The integrated system shall apply to the support schemes established

under Titles III and IV of this Regulation and under Article 2a of

Regulation (EC) No 1259/1999.

To the extent necessary, it shall also apply to the administration and

control of the rules laid down in Chapters 1, 2 and 3 of this Title.

Article 21

Elements of the integrated system

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The integrated system shall comprise the following elements:

(a) a computerised data base,

(b) an identification system for agricultural parcels,

(c) a system for the identification and registration of payment entitlements as referred to in Article 24,

(d) aid applications,

(e) an integrated control system,

(f) a single system to record the identity of each farmer who submits an aid application.

Article 22

Computerised data base

• 1. 

  The computerised data base shall record, for each agricultural holding, the data obtained from aid applications.

This data base shall, in particular, allow direct and immediate consultation, through the competent authority of the Member State, of the data relating to at least the previous three consecutive calendar and/or marketing years.

• 2. 

  The Member States may set up decentralised data bases on condition that these, and the administrative procedures for recording and accessing data, are designed homogeneously throughout the territory of the Member State and are compatible with one another in order to allow cross-checks.

Article 23

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Identification system for agricultural parcels

The identification system for agricultural parcels shall be established on

the basis of maps or land registry documents or other cartographic

references. Use shall be made of computerised geographical information

system techniques including preferably aerial or spatial orthoimagery,

with an homogenous standard guaranteeing accuracy at least equivalent

to cartography at a scale of 1:10000.

Article 24

System for the identification and registration of payment entitlements

• 1. 

  The system for the identification and registration of payment entitlements shall be set up allowing verification of entitlements and cross-checks with the aid applications and the identification system for agricultural parcels.
• 2. 

  This system shall allow direct and immediate consultation, through the competent authority of the Member State, of the data relating to at least the previous three consecutive calendar and/or marketing years.

Article 25

Aid applications

• 1. 

  Each year, a farmer shall submit an application for direct payments subject to the integrated system, indicating, where

applicable:

• - 

  all agricultural parcels of the holding,
• - 

  the number and amount of payment entitlements,

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• - 

  any other information provided for by this Regulation or by the Member State concerned.
• 2. 

  A Member State may decide that the aid application needs to contain only changes with respect to the aid application submitted the previous year. A Member State may distribute pre-printed forms based on the areas determined in the previous year and supplying graphic material indicating the location of those areas.
• 3. 

  A Member State may decide that a single aid application shall cover several or all support schemes listed in Annex I or other

support schemes.

Article 26

Verification of eligibility conditions

• 1. 

  Member States shall carry out administrative checks on the aid applications including a verification of the eligible area and the corresponding payment entitlements.
• 2. 

  Administrative checks shall be supplemented by a system of on-the-spot checks to verify eligibility for the aid. For this purpose, Member States shall draw up a sampling plan of agricultural holdings.

Member States may use remote sensing techniques as a means to carry out on-the-spot checks on agricultural parcels.

• 3. 

  Each Member State shall designate an authority responsible for co-ordinating the checks provided for in this Chapter.

Where the Member State provides for the delegation of some aspects of the work to be carried out under this Chapter to specialised agencies or firms, the designated authority shall

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retain control over, and responsibility for, that work.

Article 27

Reductions and exclusions

• 1. 

  Without prejudice to reductions and exclusions provided for in Article 6 of this Regulation, where it is found that the farmer does not comply with the eligibility conditions relevant to the granting of the aid as provided for in this Regulation or by Article 2a of Regulation (EC) No 1259/1999, the payment or part of the payment granted or to be granted for which the conditions of eligibility have been meet shall be subject to reductions and exclusions to be laid down in accordance with the procedure referred to in Article 82(2).
• 2. 

  The percentage of reduction shall be graduated according to the severity, extent, permanence and repetition of the non- compliance found and may go as far as total exclusion from one or several aid schemes for one or more calendar years.

Article 28

Controls on cross compliance To be replaced by:

• 1. 

  Member States shall carry out administrative checks supplemented by on-the-spot-checks to verify whether the farmer complies with the obligations referred to in Chapter 1. "1. Member States shall carry out administrative checks supplemented by on-the-spot-checks to verify whether the farmer complies with the obligations referred to in Chapter 1."

[see background paper in the annex to this document]

• 2. 

  Member States may make use of their existing administration and control systems to ensure compliance with the statutory management requirements and good agricultural conditions referred to in Chapter 1.

These systems, and notably the system for identification and

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registration of animals set up in accordance with Directive 92/102/EEC and Regulation (EC) No 1760/2000, shall be compatible, within the meaning of Article 29, with the

integrated system.

Article 29

Compatibility

For the purpose of applying the support schemes listed in Annex V,

Member States shall ensure that the administration and control procedures applied to these schemes are compatible with the integrated system in the following respects:

(a) the computerised data base,

(b) the identification systems for agricultural parcels,

(c) administrative checks.

To this end, these systems shall be set up so as to allow, without any problems or conflicts, a common functioning of, or the exchange of data between, them.

Member States may, for the purposes of applying Community or

national support schemes other than those listed in Annex V, incorporate in their administration and control procedures one or more components of the integrated system.

Article 30

Information and checks

• 1. 

  The Commission shall be kept regularly informed of the application of the integrated system.

It shall organise exchanges of views on this subject with the

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Member States.

• 2. 

  After informing the competent authorities concerned in good time, authorised representatives appointed by the Commission may carry out:
• - 

  any examination or control relating to the measures taken in order to establish and to implement the integrated system;
• - 

  checks at the specialised agencies and firms referred to

in Article 26(3).

Officials of the Member State concerned may take part in such checks. The aforementioned powers to carry out checks shall not affect the application of national law provisions which reserve certain acts for officials specifically designated by national law. The authorised representatives appointed by the Commission shall in particular not participate in home visits to or the formal interrogation of suspects under the national law of the Member State. They shall, however, have access to the information obtained thereby.

• 3. 

  Without prejudice to the responsibilities of the Member States for the implementation and application of the integrated system, the Commission may seek the assistance of specialised bodies or persons in order to facilitate the establishment, monitoring and utilisation of the integrated system, in particular with a view to providing the competent authorities of the Member States with technical advice, should they request it. -

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Chapter 5

Other general provisions -

To be replaced by: "3. By way of derogation from paragraph 2 and in accordance with the procedure referred to in Article 82(2), the Commission may a) extend the date of payment for the payments provided for in Article 5(1) of Regulation 136/66/EEC [olive oil];

• b) 

  provide for advances and notably authorise the Member States, subject to the budgetary situation, to pay prior to 1 December advances of up to 50% of the payments in regions where, due to exceptional conditions, farmers face severe financial difficulties.

Article 31

Payment

• 1. 

  Save as otherwise provided for in this Regulation, payments under support schemes listed in Annex I shall be made in full

to the beneficiaries.

• 2. 

  Payments shall be made once a year within the period from 1 December to 30 April of the following calendar year.
• 3. 

  By way of derogation from paragraph 2 and in accordance with the procedure referred to in Article 82(2), authorisation may be granted to the Member States, subject to the budgetary situation, to pay prior to 1 December advances of up to 50% of the payments in regions where, due to exceptional [....] conditions, farmers face severe financial

difficulties.

Article 32

Restriction of payment

Without prejudice to any specific provisions in individual support

schemes, no payment shall be made in favour of beneficiaries for whom

it is established that they artificially created the conditions required for

obtaining such payments with a view to obtaining an advantage contrary

to the objectives of that support scheme.

Article 33

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Review

Support schemes listed in Annex I shall be applied without prejudice to

possible review at any moment in the light of market developments and

the budgetary situation.

Article 34

Evaluation

In order to gauge their effectiveness, payments under support schemes

listed in Annex I shall be subject to evaluation designed to appraise their

impact with respect to their objectives and to analyse their effects on the

relevant markets.

Article 35

Interventions under Regulation (EC) No 1258/1999

The support schemes listed in Annex I shall be considered as

intervention as referred to in Article 1(2)(b) and Article 2(2) of

Regulation (EC) No 1258/1999.

TITLE III

SINGLE PAYMENT SCHEME -

To be replaced by: "(a) they have been granted a

Chapter 1

General provisions

Article 36 Eligibility

Farmers shall have access to the single payment scheme if:

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(a) they have received a [...] payment entitlement based on direct direct payment in the reference period"

payment granted in the reference period referred to in Article 41

To be added as paragraphs 2 and 3:

2. In case the farmer who has been granted a direct payment in the reference period changes his legal status or denomination in that period or not later than [31 December 2003], he shall have access to the single payment scheme under the same conditions as the farmer originally managing the holding.

3. In case of mergers during the reference period or not later than [31 December 2003], the farmer managing the new holding, in case of merger, or part of the holding shall have access to the single payment scheme under the same conditions as the farmers managing the original holdings.

In case of scissions during the reference period or not later than [31 December 2003], the farmers managing the holdings shall have access, pro rata, to the single payment scheme under the same conditions as the farmer managing the original holding.

under at least one of the support schemes referred to in Annex VI

or

(b) they have received the holding or part of the holding, by way

of actual or anticipated inheritance, by a farmer who met the

conditions referred to in point (a) or

(c) they have received a payment entitlement from the national

reserve or by transfer.

Article 37

Application

1. In 2004, the competent authority of the Member State shall send

an application form to the farmers referred to in Article 36 (a)

indicating:

(a) the amount referred to in Chapter 2 (hereinafter referred to as the "reference amount"),

(b) the number of hectares referred to in Article 46,

(c) the number and value of payment entitlements as defined

in Chapter 3.

2. Farmers shall apply to the single payment scheme by a date,

to be fixed by Member States, but not later than 15 May. -

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3. Except in case of force majeure and exceptional circumstances

To be replaced by: "The amounts corresponding to those entitlements not attributed shall revert to the national reserve referred to in Article 45 and shall be available for reallocation by a date to be fixed by the Member State but not later than 15 June 2004.

within the meaning of Article 43 (4), no entitlements shall be

attributed to farmers referred to in Article 36 (a) and (b) and

to those who receive a payment entitlement from the national

reserve in 2004, if they do not apply to the single payment

scheme in 2004. -

The amounts corresponding to those entitlements not

attributed shall revert to the national reserve referred to in

Article 45 and shall be available for reallocation from

1 January 2005.

Article 38

Double claims

The area corresponding to the number of eligible hectares as defined in

Article 47(2) in respect of which a single payment application is

submitted may be the subject of an application for direct payments

provided for in Chapters 1, 2, 3 and 6 of Title IV of this Regulation,

Article 1 of Regulation (EEC) No 845/72, Article 3 of Regulation

(EEC) No 2075/92, for any aid provided for outermost regions

under Regulations (EC) No 1452/2001, 1453/2001 and 1455/2001 and

for Aegean Islands under regulation (EC) No 2019/93 as well as for

any other aid not covered by this regulation save otherwise

provided. -

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The area referred to in first subparagraph may also be the subject

of an application for direct payments for energy crops as provided

for in Chapter 5 of Title IV, except for the part of this area which is

set aside from production in accordance with Article 55.

Article 39

Payment

• 1. 

  Aid under the single payment scheme shall be paid in respect of payment entitlements as defined in Chapter 3, accompanied by an equal number of eligible hectares as defined in Article 47(2).
• 2. 

  Member States may decide to combine payments under the single payment scheme with payments under any other support scheme. -

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Chapter 2

Establishment of the amount

Article 40

Calculation of the amount To be replaced by: "The reference amount shall be the three-year average of the total amounts of payments, which a farmer was granted under the support schemes referred to in Annex VI, calculated and adjusted according to Annex VII, in each calendar year of the reference period referred to in Article 41. The be replaced by:

The reference amount shall be the three-year average of the total 1. The reference amount shall be the three-year

average of the total amounts of payments, which a farmer was granted under the support schemes referred to in Annex VI, calculated and adjusted according to Annex VII, in each calendar year of the reference period referred to

in Article 41.

amounts, which a farmer was granted under the support schemes

referred to in Annex VI, calculated and adjusted according to Annex

VII, for each calendar year of the reference period referred to in Article

41.

• 2. 

  By way of derogation from paragraph 1,

when a farmer commences any agricultural activity in the reference period, the average shall be based on the payments he was granted in the calendar year or years during which he exercised the agricultural activity.

Article 41

Reference period

The reference period shall comprise the calendar years 2000, 2001 and

2002.

Article 42

Application of modulation and cross-compliance laid down

under Regulation (EC) No 1259/1999

In case of application of Articles 3 and 4 of Regulation (EC) No

1259/1999 during the reference period, the amounts referred to in Annex

VII shall be those that would have been granted before application of the

said Articles.

Article 43

Hardship cases

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• 1. 

  By way of derogation from Article 40, a farmer whose production

was adversely affected during the reference period by a case of

force majeure or exceptional circumstances occurring before or during that reference period shall be entitled to request that the reference amount be calculated on the basis of the calendar year or years in the reference period not affected by the case of force majeure or exceptional circumstances.

• 2. 

  If the whole reference period was affected by the case of force

majeure or exceptional circumstances, the Member State shall calculate the reference amount on the basis of the 1997 to 1999 period. In this case, paragraph 1 shall apply mutatis mutandis .

• 3. 

  A case of force majeure or exceptional circumstances, with relevant

evidence to the satisfaction of the competent authority, shall be notified by the farmer concerned in writing to the authority within a deadline to be fixed by each Member State.

• 4. 

  Force majeure or exceptional circumstances shall be recognised by

the competent authority in cases such as, for example:

(a) the death of the farmer,

(b) long-term professional incapacity of the farmer,

(c) a severe natural disaster gravely affecting the holding's agricultural land,

(d) the accidental destruction of livestock buildings on the holding, The following paragraph is added in art 43:

5. Paragraph 2 and 3 shall apply, mutatis

(e) an epizootic affecting part or all of the farmer's

livestock. mutandis , to farmers who were under agri- environmental commitments according to Regulations (EEC) No 2078/92 and (EC) No 1257/1999 during the reference period. In case the commitments covered the whole

Article 44

PRESENT TEXT(*) Technical corrections Options for modifications

Ceiling reference period and the period referred to in paragraph 2, article 45 (7) shall apply.

• 1. 

  For each Member State, the sum of the reference amounts shall not be higher than the national ceiling referred to in Annex VIII.
• 2. 

  Where necessary, a Member State shall proceed to a linear percentage reduction of the reference amounts in order to ensure respect of its ceiling.

Article 45

National reserve

• 1. 

  Member States shall, after any possible reduction under Article 44(2), proceed to a linear percentage reduction of the reference amounts in order to constitute a national reserve. This reduction shall not be higher than 1%.

"3%"

The following paragraphs are replace/added:

3.

• 2. 

  The national reserve shall further include the difference between the ceiling referred to in Annex VIII and the sum of the reference amounts to be granted to farmers under the single payment scheme, after the reduction referred to in paragraph 1. Member States shall use the national reserve

for the purpose of establishing, according to objective criteria and in such a way as to ensure equal treatment between farmers and to avoid market and competition distortions, reference amounts for the farmers

meeting the following conditions:

• 3. 

  Member States shall use the national reserve for the purpose of establishing reference amounts for the farmers referred to

in Article 43.

a) farmers who received, by way of actual or anticipated inheritance, by a farmer who retired or died in the reference period, a holding or part of a holding, whose land was leased during the reference period;

b) farmers who bought, in the reference period or before or not later than [31 May 2003], a holding or part of it whose land was under a lease during the

• 4. 

  Member States may use the national reserve to grant reference amounts to new farmers who commence their agricultural activity after 31 December 2000, according to objective criteria and in such a way as to ensure equal treatment between farmers and to avoid market and competition distortions.

PRESENT TEXT(*) Technical corrections Options for modifications -

reference period;

c) farmers who made investments or purchased land, in the reference period or not later than [31 May 2003], in order to increase their production.

The Commission, according to the

procedure referred to in Article 82(2), may add further cases.

4. Member States shall proceed to linear

reductions of the entitlements in case their national reserve is not sufficient to cover the cases referred to in paragraph 3.

5. Member States shall use [X] % of the national

reserve to grant reference amounts to farmers who commence their agricultural activity after 31 December 2002, according to objective criteria and in such a way as to ensure equal treatment between farmers and to avoid market and competition distortions.

6. Member States may use the national reserve

to grant reference amounts to farmers who participated, in the reference period in national

program of reconversion of

production, or whose milk reference

quantity was increased after 31.3.2004 by an allocation in application of Article [ 13 (2) ]

of Regulation (EC) No [new milk quota regulation], according to objective criteria and in such a way as to ensure equal treatment between farmers and to avoid market and competition distortions.

7. For the purpose of establishing the value of

entitlements, Member States shall divide the reference amount by the number of hectares that the farmer disposes at the moment of his application or fix, according to objective criteria, the value of any entitlement

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established using the national reserve. -

In any case, the value per entitlement may not be higher than an average value of entitlements allocated in the region where the farmer disposes of the hectares.

• 8. 

  Except in case of transfer by actual or

anticipated inheritance and by way of derogation from Article 49, the entitlements established using the national reserve shall not be transferred for a period of five years starting from their allocation. -

By way of derogation from Article 48 first subparagraph, any entitlement which has not been used during each year of the five years period shall revert immediately to the national reserve.

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Chapter 3

Entitlements -

Section 1

Entitlements based on areas

Article 46

Determination of the entitlements

• 1. 

  Without prejudice to Article 51, a farmer shall receive an

entitlement per hectare which is calculated by dividing the reference amount by the three-year average number of all hectares which in the reference period gave right to direct payments listed in Annex VI.

The following subparagraph shall be added in §1:

"However, in the case referred to in Article 40

(2), the total number of entitlements shall be

The total number of entitlements shall be equal to the above mentioned average number of hectares.

equal to the average number of hectares of the

same period used for the establishment of the

• 2. 

  The number of hectares referred to in paragraph 1 shall further

include: reference amounts and Article 45 (8) shall apply

to these entitlements."

(a) in case of potato starch, dried fodder and seed aid listed in Annex VII, the number of hectares whose production has been granted the aid in the reference period as calculated in points B, D and G of Annex VII;

(b) all forage area in the reference period.

For the purpose of paragraph 2(b), "forage area" shall mean the area of the holding that was available throughout the calendar year, in accordance with Article 5 of Commission Regulation (EC) No 2419/2001, for rearing animals including areas in shared use and areas which were subject to mixed cultivation. The forage area shall not include:

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• - 

  buildings, woods, ponds, paths,
• - 

  areas used for other crops eligible for Community aid or for permanent crops or horticultural crops,
• - 

  areas qualifying for the support system laid down for the producers of certain arable crops, used for the aid scheme for dried fodder or subject to a national or Community set-aside scheme.
• 3. 

  The entitlements per hectare shall not be modified except when a

farmer has received durum wheat supplement or special aid in the reference period or, starting from 2004, he is entitled to dairy payments as provided for in point F of Annex VII.

Article 47

Use of entitlements

• 1. 

  Any entitlement accompanied by an eligible hectare shall give right to the payment of the amount fixed by the entitlement.

To be added in art 47: "3. The farmer shall declare the parcels corresponding to the eligible area accompanying any entitlement. These parcels shall be at the farmer's disposal for at least a [10-month] period starting from a date to be fixed by Member States but not earlier than [1

• 2. 

  "Eligible hectare" shall mean any agricultural area of the holding taken up by arable land and permanent pasture except areas under permanent crops, forests or used for non agricultural activities [.....].

st September] of the calendar year preceding

Article 48 the year of lodging the application to the single payment scheme.

Unused entitlements

Any entitlement which has not been used for a period of 3 years shall be 4. Member States may, in duly justified circumstances, authorise the farmer to modify his declaration on condition that he respects the number of hectares corresponding to the entitlements and the conditions for granting the single payment for the area concerned."

allocated to the national reserve.

However, unused entitlements shall not revert to the national reserve in

case of force majeure and exceptional circumstances within the meaning

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of Article 43(4).

Article 49

To be replaced by: "1. Entitlements may only be transferred to another farmer established within the same Member State except in case of transfer by actual or anticipated inheritance.

However, in this latter case, entitlements may only be used in the Member State where the entitlements were established."

Transfer of entitlements

• 1. 

  Without prejudice to transfers by actual or anticipated inheritance, entitlements may only be transferred to another farmer established within the same Member State.

A Member State may decide that entitlements may only be transferred between farmers within one and the same region.

• 2. 

  Entitlements may be transferred by sale with or without land.

In contrast, lease or similar type of transactions shall be allowed only if the entitlements transferred are accompanied by the transfer of an equivalent number of eligible hectares.

A farmer may transfer his entitlements only after he has used, within the meaning of Article 47, at least 80% of his entitlements for one calendar year.

• 3. 

  In case of transfers of entitlements referred to in Article 46(4), the calculation of the entitlements per hectare shall take into account the application of points A.2 and F of Annex VII.

Section 2

Special Payment Entitlements - Section 2

Payment Entitlements subject to special

Article 50 conditions

Nature of the special payment entitlements

Article 50

• 1. 

  By way of derogation from Articles 46 and 47, the following amounts resulting from payments granted in the reference period shall be included in the reference amount under the Payments giving right to payment entitlements

subject to special conditions

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conditions provided for in Article 51 and point C of Annex

VII: 1. By way of derogation from Articles 46 and 47,

the following amounts resulting from payments granted in the reference period shall be included in the reference amount under the conditions provided for in Article 51 and point C of Annex

VII:

(a) the deseasonalisation premium provided for in Article 5 of Regulation (EC) No 1254/1999;

(b) the slaughter premium provided for in Article 11 of Regulation (EC) No 1254/1999; (a) the deseasonalisation premium provided for in

Article 5 of Regulation (EC) No 1254/1999;

(b) the slaughter premium provided for in Article

(c) the special premium for male bovine animals and the suckler cow premium, where the farmer was exempted from the stocking rate requirement pursuant to Article 12(1) of Regulation (EC) No 1254/1999, provided that the farmer did not apply for the extensification payment provided for in Article 13 of that Regulation; 11 of Regulation (EC) No 1254/1999;

(c) the special premium for male bovine animals

and the suckler cow premium, where the farmer was

exempted from the stocking rate

requirement pursuant to Article 12(1) of Regulation (EC) No 1254/1999, provided that the farmer did not apply for the extensification payment provided for in Article 13 of that Regulation;

(d) additional payments provided for in Article 14 of Regulation (EC) No 1254/1999 where paid in addition to aid provided for under a), b) and c) of this Article;

(d) additional payments provided for in Article 14

of Regulation (EC) No 1254/1999 where paid in addition to aid provided for under a), b) and

• c) 

  of this Article;

(e) the aids provided for under the sheep and goats aid scheme:

• - 

  in the calendar years 2000 and 2001, in Article 5 of Regulation (EC) No 2467/98, (e) the aids provided for under the sheep and goats

aid scheme:

• - 

  in the calendar years 2000 and 2001, in Article 5 of Regulation (EC) No 2467/98,
• - 

  in the calendar year 2002, in Articles 4, 5 and 11(1) and in the 1

st, 2nd, 4th indent of Article 11(2) of - in the calendar year 2002, in Articles 4, 5 and 11(1) and in the 1

Regulation (EC) No 2529/2001. st, 2nd, 4th indent of

Article 11(2) of Regulation (EC) No 2529/2001.

• 2. 

  Starting from 2004 and by way of derogation from Articles 36, 46 and 47,, the amounts resulting from dairy premium and additional payments, provided for in point F of Annex VII shall be included in the reference amount under the conditions provided for in Article 51.
• 2. 

  Starting from 2004 and by way of derogation

from Articles 36, 46 and 47,, the amounts resulting from dairy premium and additional payments, provided for in point F of Annex VII shall be included in the reference amount under the conditions provided for in Article 51.

Article 51

PRESENT TEXT(*) Technical corrections Options for modifications

Determination of the special payment entitlements

Article 51

When farmer was granted payments referred to in Article 50, but had no Determination of the payment entitlements subject

hectares as referred to in Article 46 in the reference period, or the to special conditions

entitlement per hectare results in an amount higher than EUR 10 000, When farmer was granted payments referred to in Article 50, but had no hectares as referred to in Article 46 in the reference period, or the entitlement per hectare results in an amount higher than EUR 5 000, the farmer shall have right to a payment entitlement for each EUR 5000 or fraction of the reference amount corresponding to the direct payments he was granted in the three-years average period.

the farmer shall have right to a special payment entitlement

corresponding to the amounts referred to in Article 50.

Article 52

Conditions for the special payment entitlements

• 1. 

  The [.....] special payment entitlements shall not be modified except when a farmer is eligible for dairy payments. In this case, the calculation of the entitlements shall take into account the application of point F of Annex VII.

Article 52

Conditions

• 2. 

  Special payment entitlements may not be transferred other than by actual or anticipated inheritance.

1. Save as otherwise provided for in this section,

the other provisions of this Title shall apply to these entitlements.

However, in case of special payment entitlements resulting exclusively from the aids provided for under the sheep and goats aid scheme, the transfer on entitlements shall be allowed among farmers who had been granted sheep and goats aid in the reference period. 2. By way of derogation from Articles 39 (1)

and 47 (1), a farmer who disposes of payment entitlements for which he did not dispose of hectares in the reference period, shall be authorised by the Member State to derogate from the obligation to provide a number of eligible hectares equivalent to the number of entitlements on the condition he maintains at least 50% of the agricultural activity exercised in the reference period expressed in livestock units.

• 3. 

  Section 1 shall apply mutatis mutandis save as otherwise provided for in this Section.

3. The payment entitlements determined

according to Article 51 shall not be modified except when a farmer is eligible for dairy payments. In this case, the calculation of the

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entitlements shall take into account the application of point F of Annex VII.

4. In case of transfer of the payment

entitlements, the transferee may benefit from the derogation provided for in paragraph 2 only in case of transfer of all the payment entitlements subject to the derogation.

Chapter 4

Land use under the single payment scheme -

Section 1 "Farmers may use their land for any agricultural activity except for permanent crops and, if the Member State so decides, for the production of the products referred to in Article 1 (2) of Regulation (EC) No 2200/96 [Fresh fruit & vegetables], in Article 1 (2) of Regulation (EC)

No 2201/96 [Processed fruit & vegetables] and potatoes other than those intended for the manufacture of potato starch for which the aid referred to in Article 80 is granted.

Member States may apply the faculty provided for in the first subparagraph at regional level according to objective criteria and in such a way as to ensure equal treatment between farmers and to avoid market and competition distortions.

Use of the land

Article 53

Agricultural use of the land

Farmers may use their land for any agricultural activity except for

permanent crops.

Article 54

Production of hemp

• 1. 

  In case of production of hemp falling within CN Code 5302 10 00,

the varieties used shall have a

tetrahydrocannabinol content not exceeding 0,2% and the production shall be covered by a contract or commitment as referred to in Article 2(1) of Regulation (EC) No 1673/2000. Member States shall establish a system for verifying the tetrahydrocannabinol content of the crops grown on at least 30% of the areas on hemp grown for fibre for which the contract is concluded or the commitment made. However, if a Member State introduces a system of prior approval for such cultivation, the minimum shall be 20%.

• 2. 

  In accordance with the procedure referred to in Article 82(2),

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the granting of payments shall be made subject to the use of certified seeds of certain varieties and to a declaration of areas

on hemp grown for fibre.

Section 2

Set-aside

Section 2

Article 55 Set-aside entitlements

Obligation to set aside

Article 55

• 1. 

  Where a farmer was subject to the obligation to set aside part of the land of his holding for the marketing year 2003/2004 pursuant to Article 6(1) of Regulation (EC) No 1251/1999, he shall set aside from production part of the land of his holding for which an application for the single payment scheme is made equivalent, in number of hectares, to 10% of the area used for the calculation of the set aside obligation referred to

above. Determination of the set aside entitlements

• 1. 

  By way of derogation from Articles 40 and 46, where a farmer was subject to the obligation to set aside part of the land of his holding, in the reference period, pursuant to Article 6(1) of Regulation (EC) No 1251/1999, the three-years average amount corresponding to the set-aside payment and the three-years average number of set-aside hectares, of the reference period, shall not be included in the determination of the entitlements referred to in Article 46.
• 2. 

  Agricultural parcels which were under permanent pasture, permanent crops or trees or used for non-agricultural purposes on 31 December 2002 may not be used to comply with the set aside obligation under paragraph 1. [However, a declaration for set aside may be presented for land which benefited from aid granted under Council Regulation (EEC) No 1308/70 during at least one of the marketing years from 1998/1999 to 2000/2001.]

2. In the case referred to in paragraph 1, the farmer shall receive an entitlement per hectare (hereinafter

referred to as "set-aside

entitlement") which is calculated by dividing the three-year set-aside average amount by the three-year average set-aside number of hectares, referred to in paragraph 1.

Member States may, on terms to be determined in accordance with the procedure referred to in Article 82(2), derogate from these provisions, provided that they take action to prevent any significant increase in the total eligible agricultural area.

The total number of set-aside entitlements shall be equal to the set-aside average number of hectares.

• 3. 

  The set aside obligation referred to in paragraph 1 shall apply for a period of ten years starting on 1 January 2004.

Article 55a

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As a result of an application made after 28 June 1995, the following areas may be counted as being set aside for the purpose of the set aside obligation referred to in paragraph 1: Use of set-aside entitlements

1. Any set-aside entitlement accompanied by a

hectare eligible to set-aside entitlement shall give right to the payment of the amount fixed by the set-aside entitlement.

• - 

  Areas set aside pursuant to Articles 22 to 24 of Regulation (EC) No 1257/1999, which are neither put to any agricultural use nor used for any lucrative purposes other than those accepted for other land set aside under this Regulation, or

2. By way of derogation from Article 47 (2),

"hectare eligible to set-aside entitlement" shall mean any agricultural area of the holding taken up by arable land and permanent pasture except areas under permanent crops, forests or used for non agricultural activities, on 31 December 2002, which is set-aside from production.

• - 

  Areas afforested pursuant to Article 31 of Regulation

(EC) No 1257/1999.

Article 56

Exemption from set-aside

A farmer shall not be subject to the set aside obligation referred to in Article 55 if [....] his entire holding is managed for the totality of its production in compliance with the obligations laid down in Regulation (EEC) No 2092/91. However, the following areas may be counted as being set aside, as a result of an application made after 28 June 1995:

Areas set aside pursuant to Articles 22 to 24 of

Regulation (EC) No 1257/1999, which are neither put to any agricultural use nor used for any lucrative purposes other than those accepted for other land set aside under this Regulation, or

Article 57

Use of the set aside land

• 1. 

  The land set aside shall be maintained in good agricultural conditions as established under Article 5.

Areas afforested pursuant to Article 31 of

Regulation (EC) No 1257/1999.

It shall not be used for agricultural purposes and shall not produce any crop for commercial purposes.

• 3. 

  Member States may, on terms to be determined

in accordance with the procedure referred to in Article

• 2. 

  It shall not be subject to rotation. However, Member States may, in duly justified circumstances and notably for specific environmental reasons, authorise the farmer to exchange the parcels subject to the set aside obligation on condition that he respects the number of hectares and the conditions for 82(2), derogate from first

subparagraph of paragraph 2, provided that they take action to prevent any significant increase in the total eligible agricultural area.

• 4. 

  By way of derogation from Articles 39 (1)

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eligibility of the land concerned referred to in Article 55(1). and 47 (1), set-aside entitlements shall be claimed before any other entitlement.

• 3. 

  The set aside obligation shall continue to apply on the set- aside land if the land is transferred.
• 5. 

  The set aside obligation shall continue to apply -

on the set-aside entitlements if they are

transferred.

The set aside obligation referred to in paragraph 1 shall apply for a period of ten years starting on 1

January 2004.

Article 56

Exemption from set-aside

A farmer shall not be subject to the obligation

referred to in Article 55a (1) if

a) his entire holding is managed for the totality of

its production in compliance with the obligations laid down in Regulation (EEC) No 2092/91

b) the land set-aside is used for the provision of

materials for the manufacture within the Community of products not primarily intended for human or animal consumption, provided that effective control systems are applied.

Article 57

Use of the set aside land

• 1. 

  The land set aside shall be maintained in good

agricultural conditions as established under Article 5.

Without prejudice to Article 56, it shall not be used for agricultural purposes and shall not produce any crop for commercial purposes.

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• 2. 

  It may be subject to rotation.

Article 57a

Application of other provisions

Save as otherwise provided for in this section, the other provisions of this Title shall apply to the set-aside entitlements.

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Chapter 5

Regional implementation -

Article 58

"1.

Regional implementation

• 1. 

  A Member State may decide, by 1 March 2004 at the latest, to apply the single payment scheme provided for in Chapters 1 to 4 at regional level under the conditions laid down in this Chapter. A Member State may decide, by 1 March

2004 at the latest, to apply the single payment scheme provided for in Chapters 1 to 4 at regional level under the conditions laid down in this Chapter.

2.

• 2. 

  In this case, the Member State shall subdivide the ceiling referred to in Article 44 between the regions in accordance with objective criteria. In this case, the Member State shall

subdivide the ceiling referred to in Article 44 between the regions on the basis of the reference amounts that the farmers of the regions concerned referred to in Article 36, would receive in application of Article 40.

• 3. 

  In duly justified cases and according to objective criteria the Member State may also, by way of derogation from paragraph 2, subdivide the total amount of the regional ceiling or part of it between all the farmers whose holdings are located in the region concerned, including those who do not meet the eligibility criterion referred to in Article 36. In this case, the entitlement per hectare shall be calculated by dividing the regional ceiling established under paragraph 2 or part of it by the number of eligible hectares, within the meaning of Article 47, established at regional level.

4 Entitlements established under this Article may only be transferred within the same region or between regions where the entitlements per hectare are the same."

• 3. 

  The Member State shall apply the single payment scheme in the regions within the limit of the regional ceilings established under paragraph 2.
• 4. 

  Moreover, in duly justified cases such as, for example, to avoid distortions of competition, the Member State may, by way of derogation from Article 46, calculate the number of hectares referred to in Article 46 at regional level including all eligible hectares, within the meaning of Article 47(2), of all the holdings located in the region concerned. In this case and by way of derogation from Article 36, a farmer whose holding is located in the region concerned shall receive an entitlement per hectare which is calculated by dividing the regional ceiling established under paragraph 2 by the number of hectares established at regional level.
• 5. 

  Entitlements established under this Article may only be transferred within the same region or between regions where the entitlements per hectare are the same.

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(...) -

PRESENT TEXT(*) Technical corrections Options for modifications

TITLE V

TRANSITIONAL AND FINAL RULES -

Article 82

Management Committee for Direct Payments

• 1. 

  The Commission shall be assisted by the Management Committee for Direct Payments, consisting of representatives of the Member States and chaired by a representative of the Commission.
• 2. 

  Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC shall apply.

3. The period provided for in Article 4(3) of Decision

1999/468/EC shall be set at one month.

Article 83

Implementing Rules

In accordance with the procedure referred to in Article 82(2), detailed

rules shall be adopted for the implementation of this Regulation. They

shall include in particular:

(a) detailed rules related to the establishment of a farm advisory system;

(a) bis detailed rules related to the definition of the criteria for the allocation of amounts made available by the application of modulation;

(b) detailed rules related to the granting of aids provided for in this Regulation, including eligibility conditions, dates of

PRESENT TEXT(*) Technical corrections Options for modifications

application and payment and control provisions as well as checking and establishing entitlement to the aids including any necessary exchange of data with the Member States, and the establishment of the overrun of the base areas or maximum guaranteed areas;

(c) with regard to the single [...] payment scheme, detailed rules relating in particular to the establishment of national reserve, the transfer of entitlements, the definition of permanent crops and permanent pastures [....];

To be added:

"and the list of crops allowed on the set-aside

land."

(d) with regard to durum wheat, detailed rules relating to the quantities of certified seeds and to the recognised varieties;

(e) with regard to energy crops, detailed rules relating to the definition of crops covered by the scheme, minimal requirements for the contract, control measures on the quantity processed and processing on the holding;

(f) with regard to hemp grown for fibre, detailed rules relating to the specific control measures and methods for determining tetrahydrocannabinol levels including the arrangements for contracts and to the commitment referred to in Article 54;

(g) such amendments to Annex I as may become necessary taking into account the criteria set out in Article 1;

(h) such amendments to Annexes II, III, IV, VI and VII as may become necessary taking into account, in particular new Community legislation;

(i) the basic features of the identification system for agricultural parcels and their definition;

(j) any amendments which may be made to the aid application

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and exemption from the requirement to submit an aid application;

(k) rules on the minimum amount of information to be included

in the aid applications;

(l) rules on the administrative and on-the-spot checks and the checks by remote sensing;

(m) rules on the application of reductions and exclusions from payments in case of non compliance with the obligations referred to in Articles 3, 14(1) and 27, including cases of non application of reductions and exclusions;

(n) such amendments to Annex V as may become necessary taking into account the criteria set out in Article 29;

(o) communications between the Member States and the Commission;

(p) measures which are both necessary and duly justified to resolve, in an emergency, practical and specific problems, in particular those related to the implementation of Chapter 4 of Title II. Such measures may [....] derogate from certain parts of this Regulation, but only to the extent that, and for such a period, as is strictly necessary.

Article 84

Transmission of information to the Commission

Member States shall inform the Commission in detail of the measures

taken to implement this Regulation and, in particular, those relating to To be deleted: art 8 and art 30

Articles 5, 8, 13, 30, 45 and 58.

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Article 85

Amendments to Regulation (EC) No 1868/94

Regulation (EC) No 1868/94 is amended as follows:

(1) Article 5 is replaced by the following:

"Article 5

A premium of EUR 22.25 per tonne of starch produced shall be paid to

undertakings producing potato starch for the quantity of potato starch up

the quota limit referred to in Article 2(2)."

(2) Article 7 is replaced by the following:

"Article 7

The provisions of this Regulation shall not cover production of potato

starch which does not benefit from the payment provided for in Article

80 of Regulation (EC) No .....*[this Regulation].

*JO L ....."

Article 86

Amendments to Regulation (EC) No 1673/2000

Regulation (EC) No 1673/2000 is amended as follows:

(1) Article 1 is amended as follows:

(a) In paragraph 2, point (a) is replaced by the following:

"(a) "farmer" shall mean a farmer as defined in Article

2(a) of Regulation (EC) No ......*

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*JO L ......."

(b) In paragraph 3, "Regulation (EC) No 1251/1999" is replaced by "Article 54 of Regulation (EC) No ......"

(2) In the first and second indent of Article 5 (2), "Article 5a of Regulation (EC) No 1251/1999" is replaced by "Article 54 of Regulation (EC) No ......".

Article 87

Amendments to other Regulations

The following provisions are deleted:

• - 

  Article 6 of Regulation (EEC) No 2019/93,

[...]

To be added: "- Article 3 of Regulation (EC) No

• - 

  Articles 3 to 25 of Regulation (EC) No 1254/1999,

2358/71" [seeds]

• - 

  Article 9 of Regulation (EC) No 1452/2001,
• - 

  Articles 13 and 22(2) to (6) of Regulation (EC) No 1453/2001,
• - 

  Articles 5 and 6 of Regulation (EC) No 1454/2001,
• - 

  Articles 3 to 11 of Regulation (EC) No 2529/2001.

Article 88

Repeals

Regulations (EEC) No 3508/92, (EC) No 1577/96, (EC) No 1251/1999

and (EC) No 1259/1999 are repealed.

However, Article 2a of Regulation (EC) No 1259/1999 shall continue to

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apply until 31 December 2005 and Articles 4, 5 and 11 of the said To be replaced: "However, Article 2a, 4, 5, 11

Regulation shall continue to apply until 31 December 2005. and the Annex of Regulation (EC) No 1259/1999

shall continue to apply until 31 December 2005."

Article 89

Transitional rules for the simplified scheme

Where a Member State applies the simplified scheme referred to in

Article 2a of Regulation (EC) No 1259/1999, the following provisions

shall apply:

(a) 2003 shall be the last year in which participants may introduce new applications;

(b) Participants shall continue to receive the amount established under the simplified scheme until 2005;

(c) Chapters 1 and 2 of Title II of this Regulation shall not apply to the amounts granted under the simplified scheme during the participation in the scheme;

(d) Farmers participating in the simplified scheme shall not be entitled to apply for the single payment as long they participate in the simplified scheme. In case of application for the single payment scheme, the amount granted under the simplified scheme shall be included in the reference amount referred to in Article 40 of this Regulation and calculated and adjusted according to Chapter 2 of Title III of this Regulation.

Article 90

Other transitional rules

Further measures required to facilitate the transition from the

arrangements provided for in the Regulations referred to in Articles 87

PRESENT TEXT(*) Technical corrections Options for modifications

and 88 to those established by this Regulation, notably those related to

the application of Articles 4 and 5 of Regulation (EC) No 1259/1999,

Article 6 of Regulation (EC) No 1251/1999 and those related to the

improvement plans referred to in Article 73, may be adopted in

accordance with the procedure referred to in Article 82(2). [To be added: "Regulations and Articles referred to in Articles 87 and 88 shall continue to apply for the purpose of the establishment of the reference amounts referred to in Annex

VII."]

Article 91

Entry into force

This Regulation shall enter into force on the seventh day following that

of its publication in the Official Journal of the European Communities .

It shall apply from 1 January 2004.

The integrated system shall apply at the latest from 1 January 2005 as

regards the geographical part of the parcel identification system

provided for in Article 23. If, however, any parts of the integrated

system are operational before this date, Member States shall use them

for their management and checking activities.

This Regulation shall be binding in its entirety and directly applicable in

all Member States.

Done at Brussels, -

For the Council

PRESENT TEXT(*) Technical corrections Options for modifications -

The President

ANNEX I

List of support schemes fulfilling the criteria set out in Article 1 -

(...)

ANNEX II

National ceilings referred to in Article 11(2) -

(...)

ANNEX III

Statutory management requirements referred to in Articles 3 and 4 - Presidency selection of 18 standards to be applied according to a 2005-2007 timetable (doc DS 174/03 of 8 May 2003

Public, animal and plant health Articles - -

(a) Public health - -

PRESENT TEXT(*) Technical corrections Options for modifications

• 1. 

  Council Directive 70/524/EEC concerning additives Article 9k

in feedingstuffs -

• 2. 

  Council Directive 91/414/EEC concerning the Article 3

placing of plant protection products on the market - Selected by Pres.

• 3. 

  Council Directive 92/46/EEC laying down the Articles 3,

health rules for the production and placing on the 4 and 5 -

market of raw milk, heat-treated milk and milk-

based products

• 4. 

  Council Regulation (EEC) No 315/93 of 8 February Article 2

1993 laying down Community procedures for -

contaminants in food

• 5. 

  Council Directive 94/371/EC laying down specific Article2

public health conditions for the putting on the -

market of certain types of eggs

• 6. 

  Council Directive 95/69/EC laying down the Article2

conditions and arrangements for approving and -

registering certain establishments and

intermediaries operating in the animal feed sector

• 7. 

  Council Directive 96/22/EC concerning the Articles 3,

prohibition on the use in stockfarming of certain 4, 5 and 7 - Selected by Pres.

substances having a hormonal or thyrostaic action

and of beta-agonists

PRESENT TEXT(*) Technical corrections Options for modifications

• 8. 

  Council Directive 96/23/EC on measures to monitor Articles 9

certain substances and residues thereof in live and 10 -

animals and animal products

• 9. 

  Council Directive 96/25/EC of 29 April 1996 on the Article 3

circulation of feed materials, amending Directives -

70/524/EEC, 74/63/EEC, 82/471/EEC and

93/74/EEC and repealing Directive 77/101/EEC

• 10. 

  Directive 2002/32/EC of the European Parliament Articles 3

and of the Council on undesirable substances in and 5 -

animal feed

• 11. 

  Regulation (EC) No 178/2002 of the European Articles

Parliament and of the Council laying down the 14, 15, 18, - Selected by Pres.

general principles and requirements of food law 19 and 20

• 12. 

  Regulation (EC) No 1774/2002 of the European Articles 9

Parliament and of the Council laying down health and 22 -

rules concerning animal by-products not intended

for human consumption -

(b) animal health -

• 13. 

  Council Directive 82/894 /EEC of 21 December

1982 on the notification of animal diseases within -

the Community

PRESENT TEXT(*) Technical corrections Options for modifications

• 14. 

  Council Directive 85/511/EEC introducing Article 3

Community measures for the control of foot-and- - Selected by Pres.

mouth disease

• 15. 

  Council Directive 92/119/EEC introducing general Article 3

Community measures for the Control of certain - Selected by Pres.

animal diseases and specific measures relating to

swine vesicular disease

• 16. 

  Council Directive 2000/75/EC laying down specific Article3

provisions for the control and eradication of - Selected by Pres.

bluetongue

• 17. 

  Regulation (EC) No 999/2001 of the European Articles 7,

Parliament and of the Council laying down rules for 11, 12, 13 - Selected by Pres.

the prevention, control and eradication of and 15

transmissible spongiform encephalopathies

PRESENT TEXT(*) Technical corrections Options for modifications -

(c) identification and registration of animals -

• 18. 

  Council Directive 92/102/EEC on identification and Articles 3,

registration of animals 4 and 5 - Selected by Pres.

• 19. 

  Commission Regulation (EC) No 2629/97 of laying Articles 2,

down detailed rules for the implementation of 6 and 8 - Selected by Pres.

Council Regulation (EC) No 820/97 as regards

eartags, holding registers and passports in the

framework of the system for the identification and

registration of bovine animals

• 20. 

  Regulation (EC) No 1760/2000 of the European Article 4

Parliament and of the Council establishing a system and 7 - Selected by Pres.

for the identification and registration of bovine

animals and regarding the labelling of beef and beef

products

PRESENT TEXT(*) Technical corrections Options for modifications -

(d) plant health -

• 21. 

  Council Directive 2000/29/EC on protective Article 10

measures against the introduction into the -

Community of organisms harmful to plants or plant

products and against their spread within the

Community

Occupational health and safety -

• 22. 

  Council Directive 89/391/EEC of 12 June 1989 on Article 6

the introduction of measures to encourage -

improvements in the safety and health of workers at

work (OJ L 183, 29.6.1989, p. 1 )

• 23. 

  Council Directive 90/394/EEC of 28 June 1990 on Article 3

the protection of workers from the risks related to Articles 4 -

exposure to carcinogens at work (sixth individual to 12

Directive within the meaning of Article 16(1) of

Directive 89/391/EEC) (OJ L 196, 26.7.1990, p. 1)

• 24. 

  Council Directive 94/33/EC of 22 June 1994 on the

protection of young people at work -

(OJ L 216, 20.8.1994, p. 12)

PRESENT TEXT(*) Technical corrections Options for modifications

• 25. 

  Directive 2000/54/EC of the European Parliament Articles 3,

and of the Council of 18 September 2000 on the 6, 8 and 9 -

protection of workers from risks related to exposure

to biological agents at work (seventh individual

directive within the meaning of Article 16(1) of

Directive 89/391/EEC)

(OJ L 262 17.10.2000, p. 21)

Environment -

• 26. 

  Directive 75/442/EEC on waste (OJ L 194, Articles 8,

25.7.1975, p. 39) 9 and 14 -

• 27. 

  Directive 76/464/EEC on pollution caused by Article 3

certain dangerous substances discharged into the -

aquatic environment of the Community (OJ L 129,

18.5.76, p. 23)

• 28. 

  Directive 79/409/EEC on the conservation of wild Articles 3,

birds (OJ L 103, 25.4.1979, p. 1) 4, 5 and 9 - Selected by Pres. [Articles 3,

4 (1,2,4), 7, 8 and 9 (1) (2)]

• 29. 

  Directive 80/68/EEC on the protection of

groundwater against pollution caused by certain - Selected by Pres.

dangerous substances (OJ L 20, 26.1.1980, p. 43)

PRESENT TEXT(*) Technical corrections Options for modifications

• 30. 

  Directive 86/278/EEC on the protection of the Article 3

environment, an in particular of the soil, when - Selected by Pres.

sewage sludge is used in agriculture (OJ L 181,

4.7.1986, p. 6)

• 31. 

  Directive 91/676/EEC concerning the protection of Articles 4

waters against pollution caused by nitrates from and 5 - Selected by Pres.

agricultural sources (OJ L 375, 31.12.1991, p. 1)

• 32. 

  Directive 92/43/EEC on the conservation of natural Articles 6,

habitats and of wild flora and fauna 12 and 16 - Selected by Pres. [Articles 13, 15, 16 (1) and 22

(OJ L 206, 22.7.1992, p. 7) ((b)]

Animal welfare -

• 33. 

  Council Directive 91/628/EEC on the protection of Article 5

animals during transport -

• 34. 

  Council Directive 91/629/laying down minimum Article 3

standards for the protection of calves Article4 - Selected by Pres.

• 35. 

  Council Directive 93/119/EC on the protection of Article7

animals at the time of slaughter or killing -

• 36. 

  Council Directive 91/630/EEC laying down Article 3

minimum standards for the protection of pigs - Selected by Pres.

• 37. 

  Council Directive 98/58/EC concerning the Article 4

protection of animals kept for farming purposes - Selected by Pres.

PRESENT TEXT(*) Technical corrections Options for modifications

• 38. 

  Council Directive 1999/74/EC laying down Article 7

minimum standards for the protection of laying -

hens

New version of Annex III -

Statutory management requirements referred to in

Articles 3 and 4

A. Applicable from 1.1.2005:

Environment

1.

Directive 79/409/EEC on the conservation of

wild birds (OJ L 103, 25.4.1979, p. 1) Articles

3,

4 (1, 2, 4), 7, 8 and 9 (1) (2)

• 2. 

  Directive 80/68/EEC on the protection of

groundwater against pollution caused by certain dangerous substances (OJ L 20, 26.1.1980, p. 43)

Articles 4 and 5

• 3. 

  Directive 86/278/EEC on the protection of the

environment, an in particular of the soil, when sewage sludge is used in agriculture (OJ L 181, 4.7.1986, p. 6) Article 3

• 4. 

  Directive 91/676/EEC concerning the

protection of waters against pollution caused by nitrates from agricultural sources (OJ L 375, 31.12.1991, p. 1)

Articles 4 and 5

• 5. 

  Directive 92/43/EEC on the conservation of

natural habitats and of wild flora and fauna (OJ L 206, 22.7.1992, p. 7)

Articles

13, 15, 16 (1) and 22 (b)

PRESENT TEXT(*) Technical corrections Options for modifications

Public and animal health

Identification and registration of animals

6. -

Council Directive 92/102/EEC on

identification and registration of animals Articles

3,

4 and 5

• 7. 

  Commission Regulation (EC) No 2629/97 of

laying down detailed rules for the

implementation of Council Regulation (EC) No 820/97 as regards eartags, holding registers and passports in the framework of the system for the identification and registration of bovine animals Articles

2,

Regulation (EC) No 1760/2000 of the 6 and 8

8.

European Parliament and of the Council establishing a system for the identification and registration of bovine animals and regarding the labelling of beef and beef products

Article 4 and 7

PRESENT TEXT(*) Technical corrections Options for modifications

B. Applicable from 1.1.2006: -

Public, animal and plant health

(a)

Public, animal and plant health

• 9. 

  Council Directive 91/414/EEC concerning the

placing of plant protection products on the market Article 3

• 10. 

  Council Directive 96/22/EC concerning the

prohibition on the use in stockfarming of certain substances having a hormonal or thyrostaic action and of beta-agonists Articles 3, 4, 5 and 7

• 11. 

  Regulation (EC) No 178/2002 of the European

Parliament and of the Council laying down the general principles and requirements of food law

Articles 14, 15, 17 (1), 18, 19 and 20

• 12. 

  Regulation (EC) No 999/2001 of the European

Parliament and of the Council laying down rules for the prevention, control and eradication of transmissible spongiform encephalopathies Articles 7, 11, 12, 13 and 15

(b) Notification of diseases

13.

Council Directive 85/511/EEC introducing

Community measures for the control of foot- and-mouth disease

Article 3

• 14. 

  Council Directive 92/119/EEC introducing

general Community measures for the Control of certain animal diseases and specific measures relating to swine vesicular disease Article 3

• 15. 

  Council Directive 2000/75/EC laying down

specific provisions for the control and eradication of bluetongue

Article 3

PRESENT TEXT(*) Technical corrections Options for modifications

C. Applicable from 1.1.2007:

Occupational health and safety

Animal welfare

16. -

Council Directive 91/629/laying down

minimum standards for the protection of calves Articles 3 and 4

• 17. 

  Council Directive 91/630/EEC laying down

minimum standards for the protection of pigs Articles 3 and 4 (1)

• 18. 

  Council Directive 98/58/EC concerning the

protection of animals kept for farming purposes Article 4 -

ANNEX IV

Good agricultural conditions referred to in Article 5 - New

Annex IV

Good agricultural and environmental

condition

Issue Requirement Standards -

Issue Standards

PRESENT TEXT(*) Technical corrections Options for modifications

Soil Protect soil through Minimum winter soil cover at Soil erosion: Minimum soil

erosion appropriate measures farm level and for sloping areas and all year round minimum soil cover - - cover

Minimum land

Tillage practices (angle of Protect soil through appropriate measures management reflecting

inclination and length of site-

slopes, nearness to specific conditions

watercourses, direction and timing of ploughing etc.)

Cropping restrictions in Retain terraces

relation to land use where applicable

Management techniques

related to specific crops (vines, olive trees, maize etc.)

Retain terraces

Soil tare levels for specific

crop (potatoes, sugar beet, etc.)

Soil Maintain soil organic Principles and standards for Soil organic matter: Standards for

organic matter levels through crop rotations including where appropriate

for the -

Maintain soil crop rotations

matter appropriate crop incorporation of crop residues organic matter where applicable

rotation practices and Arable stubble management in Arable stubble

particular regarding burning levels through

tillage techniques management

Rules where renewal of appropriate practices

permanent pasture is

undertaken

Soil Maintain soil Appropriate machinery use Soil structure: - Appropriate

structure structure through (tyre pressure, use of tramlines, type and timing of agricultural operations etc.) -

Maintain soil machinery use

appropriate

machinery use and Maximum for stocking rate structure through

levels to avoid damage to soil structure appropriate machinery use

stocking rates

PRESENT TEXT(*) Technical corrections Options for modifications

Soil Follow irrigation and Ensure balance of irrigation,

salinisatiosoil nutrient drainage and water table

replenishment

n management In coastal areas, irrigation

practices which avoid which avoids the intrusion of sea water into groundwater

a build up of salts in

soils

Minimum Ensure a minimum Minimum livestock stocking Minimum level of Minimum

level of level of maintenance rates or/and appropriate

regimes -

maintenance: livestock stocking

maintenanand avoid the Protect permanent pasture rates

ce deterioration of through principles and Ensure a minimum level or/and appropriate regimes

standards restricting use of

habitats changes maintenance and

Retention of field boundaries avoid the Protection of

and landscape features deterioration of permanent pasture

Avoiding the encroachment of

shrubs on agricultural land habitats

• - 

  Retention of

landscape features

• - 

  Avoiding the

encroachment of

unwanted shrubs

on

agricultural land

PRESENT TEXT(*) Technical corrections Options for modifications

ANNEX V

Compatible support schemes referred to in Article 29 -

(...)

ANNEX VI -

List of direct payments in relation to the single payment referred to in

Article 36

Sector Legal base Notes -

Arable Articles 2, 4 and 5 Area aid, including set-aside

crops Regulation (EC) No payments, grass silage payments, -

1251/1999 supplementary amounts, durum

wheat supplement and special aid

Potato Article 8(2) Payment for producers of potatoes

starch Regulation (EEC) intended for the manufacture of

No 1766/92 potato starch

Grain Article 1

legumes Regulation (EC) No

Area aid

1577/96

PRESENT TEXT(*) Technical corrections Options for modifications

Rice Article 6 Area aid

Regulation (EC) No -

3072/95

Production aid

Seeds Article 3

Regulation (EEC)

No 2358/71

Beef and Articles 4, 5, 6, 10, Special premium, deseasonalisation premium, suckler cow premium (including when paid for heifers and including the additional national suckler cow premium when co- financed),

veal 11, 13 and 14 -

Regulation (EC) No

1254/1999

slaughter premium,

extensification payment, additional payments

Milk and Annex VII point F Dairy premium and additional

dairy of this Regulation payments -

products

Sheep Article 5

Ewe and she-goat premium,

and Reg. (EC) No2467/98, supplementary premium and certain

additional payments -

goats Articles 4, 5 and 11(1)

and (2) 1st, 2nd and 4th

indent

Reg.(ECNo2529/2001

Article 9(1)(a) and (b)

PRESENT TEXT(*) Technical corrections Options for modifications

POSEIDORegulation (EC) No

Sectors: beef and veal -

M 1452/2001

Articles 13(2) and

(3), 22(2) and (3)

Regulation (EC) No

POSEIMA 1453/2001 Sectors: beef and veal

Article 5(2) and (3),

6(1) and (2)

Regulation (EC) No

POSEICAN Sectors: beef and veal; sheep and

1454/2001 goats

Article 6(2) and (3)

Regulation (EEC)

Aegean No 2019/93 Sectors: beef and veal

Islands Article 3

Dried

Regulation (EEC) Payment for processed products (as

fodder No 603/95 applied according to Annex VII point

D of this Regulation)

ANNEX VII

Calculation of the reference amount referred to in Article 40

PRESENT TEXT(*) Technical corrections Options for modifications

A. Area aids

• 1. 

  Where a farmer has received area aids, the number of hectares, to two decimal places, for which a payment has been granted, respectively, in each year of the reference period, shall be multiplied by the following amounts:

1.1. For cereals, including durum wheat, oilseeds, protein crops, linseed, flax and hemp grown for fibre, grass silage and set-

aside:

• - 

  EUR 66/t multiplied by the yield as provided for in Article 4(2) of Regulation (EC) No 1251/1999 determined in the regionalisation plan for the region concerned applicable in the calendar year 2002.

[However, in case the condition for the application of Article 3(7) of Regulation (EC) No 1251/1999 are met in the reference period, by derogation to Article 3(7) of that regulation, the yields for the year in question shall be the yields that would have been applied in case of application of the said Article 3(7) for the following marketing year.]

To be deleted

1

This point shall apply without prejudice to the provisions laid down by Member States in application of Article 6(6) of Regulation (EC) No 1251/1999.

By way of derogation from Article 41, for flax and hemp, the average shall be calculated on the basis of the number hectares for which a payment was granted in the calendar year 2001 and 2002.

1 Deletion to be confirmed after further technical reflections.

PRESENT TEXT(*) Technical corrections Options for modifications

1.2. For rice:

• - 

  EUR 102/t multiplied by the following average yields: (...)

1.3. For grain legumes:

• - 

  for lentils and chick peas, EUR 181/ha
• - 

  for vetches, respectively, EUR 175.02/ha in 2000, EUR 176.60/ha in 2001 and EUR 150.52/ha in 2002.
• 2. 

  Where a farmer has received durum wheat supplement or special aid, the number of hectares, to two decimal places, for which such a payment has been granted, respectively, in each year of the reference period, shall be multiplied by the following amounts:

In the zones listed in Annex II of Regulation (EC) No 1251/1999 and in Annex IV of Regulation (EC) No

2316/1999:

EUR 313/ha for the single payment to be granted for the calendar year 2004,

• - 

  EUR 281/ha for the single payment to be granted for the calendar year 2005,
• - 

  EUR 250/ha for the single payment to be granted for the calendar year 2006 and subsequent calendar years.

In the zones listed in Annex V of Regulation (EC) No

2316/1999:

EUR 93/ha for the single payment to be granted for the calendar year 2004,

• - 

  EUR 46/ha for the single payment to be granted for the calendar year 2005

.

PRESENT TEXT(*) Technical corrections Options for modifications

• 3. 

  For the purpose of the preceding points, "number of hectares"

shall mean the number of hectares corresponding to each different type of area aid listed in Annex VI of this Regulation, for which all the conditions laid down in the rules for the granting of the aid have been met, taking into account the application of Articles 2(4) and 5 of Regulation (EC) No 1251/1999 [...]. In case of rice, by way of derogation to Article 6(5) of Council Regulation (EC) No 3072/95, where the areas given over to rice in one Member State in the reference period exceeded its Maximum Guaranteed Area for this period, the amount per hectare shall be reduced proportionally.

B. Potato starch payment

Where a farmer has received potato starch payment, the amount shall be calculated by multiplying the number of tons for which such a payment has been granted, respectively, in each year of the reference period, by EUR 55. 27 per tonne of potato starch. Member states shall calculate the number of hectares to be included in calculation of the single payment proportionately to the number of tons of potato starch produced for which the aid provided for in Article 8(2) Regulation (EEC) No 1766/92 has been granted, respectively, in each year of the reference period, and within the limits of a base area to be fixed by the Commission on the basis of the number of hectares, covered by a cultivation contract in the reference period, communicated by Member States.

PRESENT TEXT(*) Technical corrections Options for modifications

C. Livestock premiums and supplements

Where a farmer has received livestock premiums and/or supplements,

the amount shall be calculated by multiplying the number of animals for

which such a payment has been granted, respectively, in each year of the To be replaced: "However the payments in

reference period, by the amounts per head established for the calendar application of Article 4(2) second subparagraph of Regulation (EC) No 1254/1999, as modified by Regulation (EC) No 1512/2001, shall not be taken into account.

year 2002 by the corresponding Articles referred to in Annex VI, taking

into account the application of Article 4(4), Article 7(2) and Article

10(1) of Regulation (EC) No 1254/1999 or Article 8(3) of Regulation Moreover, by way of derogation from Article 41, in case of application of Article 32 (11) and (12)

of Commission Regulation (EC) No 2342/1999 and Article 4 of Commission Regulation (EC) No 1458/2001, the number of animals, for which a payment was granted in the year during which such measures were applied, to be taken into account for the calculation of the reference amount, shall not be higher than the average of the number of animals for which a payment was granted in the year/years during which such measures were not applied."

(EC) No 2529/2001. However the payments in application of the

following provisions shall not be taken into account:

• - 

  Article 4(2) second subparagraph of Regulation (EC) No 1254/1999;
• - 

  Article 32(11) and (12) of Commission Regulation (EC) No 2342/1999;
• - 

  Article 4 of Commission Regulation (EC) No 1458/2001.

PRESENT TEXT(*) Technical corrections Options for modifications

D. Dried fodder

When a farmer has delivered fodder under a contract as provided for in

Article 9(c) of Regulation (EC) No 603/95, Member States shall

calculate the amount to be included in the reference amount

proportionately to the number of tons of dried fodder produced for

which the aid provided for in Article 3 of that Regulation has been

granted, respectively, in each year of the reference period, and within the

limits of the following ceilings expressed in EUR millions:

(...)

Member States shall calculate the number of hectares to be included in

calculation of the reference amounts proportionately to the number of

tons of dried fodder produced for which the aid provided for in Article 3

Regulation (EC) No 603/95 has been granted, respectively, in each year

of the reference period, and within the limits of a base area to be fixed

by the Commission on the basis of the number of hectares, covered by a

cultivation contract in the reference period, communicated by Member

States.

PRESENT TEXT(*) Technical corrections Options for modifications

E. Regional aids

In the regions concerned, the following amounts shall be included in the

calculation of the reference amount:

• - 

  EUR 19/t multiplied by the yields utilised for the area payments for cereals, oilseeds, linseed and flax and hemp grown for fibre in the regions indicated in Article 4(4) of Regulation (EC) No 1251/1999;
• - 

  the amount per head as provided for in Article 9(1)(a) and (b)

of Regulation (EC) No 1452/2001, Articles 13(2) and (3), 22(2) and (3) of Regulation (EC) No 1453/2001, Article 5(2) and (3), 6(1) and (2) of Regulation (EC) No 1454/2001, multiplied by the number of animals for which such a payment has been granted in 2002;

• - 

  the amount per head as provided for in Article 6(2) and (3) of Regulation (EEC) No 2019/93 multiplied by the number of animals for which such a payment has been granted in 2002.

PRESENT TEXT(*) Technical corrections Options for modifications

F. Dairy premiums and supplements

• 1. 

  Starting from 2004, where a farmer has an individual reference quantity for milk as provided for by Article 5 of Regulation (EC) No...*[New Regulation establishing a levy in the milk sector], the amounts referred to in points F. 2 and

F. 5 shall be included in the calculation of the reference amount.

• 2. 

  Without prejudice to point F.3 and to reductions resulting from the application of point F.4, the individual reference quantity for milk available on the holding on 31 March 2004, expressed in tons, shall be multiplied by:
• - 

  EUR 5,75/t for the single payment to be granted for the calendar year 2004,
• - 

  EUR 11,49/t for the single payment to be granted for the calendar year 2005,
• - 

  EUR 17,24/t for the single payment to be granted for the calendar year 2006
• - 

  EUR 22,99/t for the single payment to be granted for the calendar year 2007,
• - 

  EUR 28,74/t for the single payment to be granted for the calendar year 2008 and the subsequent calendar years.
• 3. 

  Individual reference quantities which have been the subject of temporary transfers in accordance with Article 6 of Regulation (EEC) No 3950/92 during the period from 1 April 2003 to 31 March 2004 shall be deemed to be available on the holding of the transferee on 31 March 2004.

PRESENT TEXT(*) Technical corrections Options for modifications

• 4. 

  For the purpose of applying paragraph 2, where, on 31 March 2004, the sum of all individual reference quantities in a Member State exceeds the sum of th e corresponding total quantities of that Member State set out in Annexe I of Regulation (EEC) No 3950/92, as amended by Regulation (EC) No 1256/1999 [**], for the 12-month period 1999/2000, the Member State concerned shall, on the basis of objective criteria, take the necessary steps to reduce accordingly the total amount of individual reference quantities on its territory.

as amended by Commission Regulation (EC) No 749/2000 [**]

[** OJ L90, 12.4.2000, p.4]

• 5. 

  Member States shall, on a yearly basis, make additional payments to producers in their territory totalling the global amounts per year set out in point F.6. Such payments shall be made according to objective criteria and in such a way as to ensure equal treatment between producers and to avoid market and competition distortions. Moreover, such payments shall not be linked to fluctuations of market prices.

Premium supplements shall only be granted as a supplementary amount per premium amount as set out in point F.2.

6. Additional payments: global amounts expressed in EUR

million: (...)

7. For the purpose of point F, the definitions of "producer" and "holding" laid down in Article 4 of Regulation (EC) No ...[New Regulation establishing a levy in the milk sector] shall apply.

PRESENT TEXT(*) Technical corrections Options for modifications

G. Seed aids

Where a farmer has received seed production aid, the amount shall be

calculated by multiplying the number of tonnes for which such a

payment has been granted, respectively, in each year of the reference

period, by the amount established in application of Article 3 of

Regulation (EEC) No 2358/71. Member States shall calculate the

number of hectares to be included in calculation of the single payment

proportionately to area accepted for certification for which the aid

provided for in Article 3 of Regulation (EEC) No 2358/71 has been

granted, respectively, in each year of the reference period, and within the

limits of a base area to be fixed by the Commission on the basis of the

total area accepted for certification as communicated to the

Commission according to Regulation (EEC) No 3083/73. This total

area shall not include the area accepted for certification for rice

(Oryza sativa L.), spelt (Triticum spelta L.) and fibre and oil flax

(Linum usitatissimum L.) that already has been declared for arable

crops].

• * 

  JO L......

** JO L 160, 26.6.1999, p. 73.

ANNEX VIII

National ceilings referred to in Article 44

(...)

PRESENT TEXT(*) Technical corrections Options for modifications

ANNEX IX

Traditional production zones for durum wheat as referred to in Article

61

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