[Article 143b U.K. Single Area Payment scheme
1. The new Member States may decide not later than the date of accession to replace the direct payments during the period of application referred to in paragraph 9 with a single area payment which shall be calculated according to paragraph 2.
2. The single area payment shall be made once a year. It shall be calculated by dividing the annual financial envelope established according to paragraph 3 by the agricultural area of each new Member State established according to paragraph 4.
3. For any new Member State, the Commission shall establish an annual financial envelope:
as the sum of the funds that would be available in respect of the calendar year concerned for granting direct payments in the new Member State,
according to the relevant Community rules and on the basis of the quantitative parameters, such as base areas, premium ceilings and Maximum Guaranteed Quantities (MGQ), specified in the Act of Accession and subsequent Community legislation for each direct payment, and
adjusted using the relevant percentage specified in Article 143a for the gradual introduction of direct payments.
4. The agricultural area of a new Member State under the single area payment scheme shall be the part of its utilised agricultural area which has been maintained in good agricultural condition at 30 June 2003 , whether in production or not at that date, and, where appropriate, adjusted in accordance with the objective criteria to be set by that new Member State after approval by the Commission.
‘ Utilised agricultural area ’ shall mean the total area taken up by arable land, permanent grassland, permanent crops and kitchen gardens as established by the Commission (EUROSTAT) for its statistical purposes.
5. For the purpose of granting payments under the single area payment scheme, all agricultural parcels corresponding to the criteria provided for in paragraph 4 shall be eligible.
The minimum size of eligible area per holding for which payments may be requested shall be 0,3 ha. However, any new Member State may decide, on the basis of objective criteria and after approval by the Commission, to set the minimum size at a higher level not exceeding 1 ha.
6. There shall be no obligation to produce or to employ the factors of production. However, farmers may use the land referred to in paragraph 4 for any agricultural purpose. In the case of production of hemp falling within CN code 5302 10 00 , Article 5a(2) of Council Regulation (EC) No 1251/1999 () and Article 7b of Commission Regulation (EC) No 2316/1999 () as well as Article 52(1) of this Regulation shall apply.
Any land benefiting from payments under the single area payment scheme shall be maintained in good agricultural condition compatible with the protection of the environment.
As from 1 January 2005 the application of Articles 3, 4, 6, 7 and 9 shall be optional for the new Member States insofar as these provisions relate to statutory management requirements.
7. Where in a given year the single area payments in a new Member State would exceed its annual financial envelope, the national amount per hectare applicable in that new Member State shall be reduced proportionately by application of a reduction coefficient.
8. The Community rules on the integrated system laid down respectively in Council Regulation (EEC) No 3508/92 () , and in particular Article 2 thereof, and in Chapter 4 of Title II of this Regulation, and in particular Article 18, shall apply to the single area payment scheme to the extent necessary. Accordingly, any new Member State choosing this scheme shall:
prepare and process farmers' annual aid applications. Such applications shall contain data on applicants and on declared agricultural parcels (identification number and area);
put in place a land parcel identification system so as to ensure that the parcels for which aid applications have been made can be identified and their area established, that the parcels concern agricultural land and that they are not the subject of another application;
have in place a computerised database for agricultural holdings, parcels and aid applications;
check the aid applications pertaining to the year 2004 in accordance with Articles 7 and 8 of Regulation (EEC) No 3508/92 and those pertaining to any year as from 2005 in accordance with Article 23 of this Regulation.
The application of the single area payment scheme shall not in any way affect the obligation of any new Member State with regard to the implementation of Community rules on the identification and registration of animals as provided for by Council Directive 92/102/EEC () and Regulation (EC) No 1760/2000 of the European Parliament and of the Council () .
9. For any new Member State the single area payment scheme shall be available for a period of application until the end of 2006 with the possibility of renewal twice by one year at the new Member State's request. Subject to the provisions of paragraph 11, any new Member State may decide to terminate the application of the scheme at the end of the first or the second year of the period of application with a view to applying the single payment scheme. New Member States shall notify the Commission of their intention to terminate by 1 August of the last year of application.
10. Before the end of the period of application of the single area payment scheme, the Commission shall assess the state of preparedness of the new Member State concerned to apply fully the direct payments.
In particular, by the end of the period of application of the single area payment scheme, the new Member State shall have taken all necessary steps to set up the integrated system as referred to in Article 18 for running properly the direct payments in the form then applicable.
11. On the basis of its assessment, the Commission shall:
(a) note that the new Member State can enter the system of direct payments applied in the Member States of the Community as constituted on 30 April 2004 ,
or
(b) decide to extend the application of the single area payment scheme by the new Member State for the period estimated necessary to allow for the necessary management and control procedures to be fully in place and to function properly.
Before the end of the extended application period referred to in point (b), paragraph 10 shall apply.
Until the end of the 5 year period of application of the single area payment scheme (i.e. 2008), the percentage rate set out in Article 143a shall apply. If the application of the single area payment scheme is extended beyond that date pursuant to a decision taken under point (b), the percentage rate set out in Article 143a for the year 2008 shall apply until the end of the last year of application of the single area payment scheme.
12. After the end of the period of application of the single area payment scheme, the direct payments shall be applied according to the relevant Community rules and on the basis of the quantitative parameters, such as base area, premium ceilings and Maximum Guaranteed Quantities (MGQ), specified in the Act of Accession () for each direct payment and subsequent Community legislation. The percentage rates set out in Article 143a for the relevant years shall subsequently apply.
13. New Member States shall inform the Commission in detail of the measures taken to implement this Article and in particular the measures taken pursuant to paragraph 7.]