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CHAPTER 1U.K. SCOPE AND GENERAL PROVISIONS

SECTION 1 U.K. Scope and general principles

Article 1U.K.Scope

This Regulation lays down provisions supplementing certain non-essential elements of Regulation (EU) No 1307/2013 in relation to:

(a)

general provisions on direct payments;

(b)

the basic payment scheme;

(c)

F1...

(d)

[F2the payment for farmers observing agricultural practices beneficial for the climate and the environment;]

(e)

the payment for young farmers commencing their agricultural activity;

(f)

voluntary coupled support;

(g)

F3...

(h)

F4...

Textual Amendments

Article 2U.K.General principles

1.[F5The relevant authority] shall implement this Regulation in accordance with objective criteria and in such a way as to ensure the equal treatment of farmers and to avoid distortions of the market and of competition, while promoting a sustainable management of natural resources and climate action.

2.[F5The relevant authority] shall ensure that all conditions for support implemented under this Regulation are verifiable and controllable.

3.[F5The relevant authority] shall implement this Regulation:

(a)

in respect of support other than coupled support, respecting the requirements set out in paragraphs 1, 5 and 6 of Annex 2 to the Agreement on Agriculture; and

(b)

in respect of coupled support, respecting the requirements of Article 6(5) of the Agreement on Agriculture.

Textual Amendments

F6Article 3U.K.Reductions due to financial discipline

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Textual Amendments

SECTION 2 U.K. Provisions related to definitions in Regulation (EU) No 1307/2013

Article 4U.K.Framework for criteria on maintaining the agricultural area in a state suitable for grazing or cultivation

1.For the purposes of the point (ii) of Article 4(1)(c) of Regulation (EU) No 1307/2013, the criteria that farmers are to meet in order to fulfil the obligation to maintain the agricultural area in a state suitable for grazing or cultivation without preparatory action going beyond usual agricultural methods and machineries shall be established by [F7the relevant authority] in either or both of the following ways:

(a)

[F8the relevant authority requires] at least one annual activity to be carried out by a farmer. Where justified for environmental reasons, [F9the relevant authority] may decide to recognise also activities that are carried out only every second year;

(b)

[F10the relevant authority sets] out the characteristics to be met by an agricultural area in order to be deemed maintained in a state suitable for grazing or cultivation.

2.When establishing criteria referred to in paragraph 1, [F11the relevant authority] may distinguish between different types of agricultural areas.

Textual Amendments

Article 5U.K.Framework for minimum activities on agricultural areas naturally kept in a state suitable for grazing or cultivation

For the purposes of the point (iii) of Article 4(1)(c) of Regulation (EU) No 1307/2013, the minimum activity to be established by the [F12relevant authority] that is to be carried out on agricultural areas naturally kept in a state suitable for grazing or cultivation shall be at least one annual activity to be carried out by a farmer. Where justified for environmental reasons, [F13the relevant authority] may decide to recognise also activities that are carried out only every second year.

Textual Amendments

Article 6U.K.Predominance of grasses and other herbaceous forage in case of permanent grassland

For the purposes of Article 4(1)(h) of Regulation (EU) No 1307/2013, grasses and other herbaceous forage shall be deemed to remain predominant where they cover more than 50 % of the eligible area at the level of the agricultural parcel within the meaning of Article 67(4)(a) of Regulation (EU) No 1306/2013.

[F14Article 7U.K.Established local practices in case of permanent grassland

For the purposes of Article 4(1)(h) of Regulation (EU) No 1307/2013, established local practices shall be practices for areas for livestock grazing which are traditional in character and are commonly applied on the areas concerned.]

Textual Amendments

[F15Article 8U.K.Reduction coefficient according to Article 32(5) of Regulation (EU) No 1307/2013

When applying Article 32(5) of Regulation (EU) No 1307/2013 for permanent grassland which can be grazed and which forms part of established local practices where grasses and other herbaceous forage are traditionally not predominant in grazing areas, [F16the relevant authority] may distinguish between different categories of areas in order to apply different reduction coefficients to such categories [F17, provided that such a decision was made and notified to the Commission no later than 31 January 2015].]

Textual Amendments

[F18Article 9U.K. Hemp

[F191.For the purposes of Article 32(6) of Regulation (EU) No 1307/2013, the eligibility of areas used for the production of hemp shall be subject to the use of seed of the varieties listed in [F20Annex IV].]

2.[F21The relevant authority] shall establish the system for determining the Δ9-tetrahydrocannabinol content (hereinafter referred to as ‘THC content’) in hemp varieties, which allows them to apply the method set out in Annex III.

3.The [F22relevant authority] shall keep the records related to findings on the THC content. Such records shall comprise for each variety at least the results in terms of THC content from each sample expressed in percentage to two decimal places, the procedure used, the number of tests carried out, an indication of the point at which the sample was taken and measures taken at national level.

4.If an average of all the samples of a given variety exceeds the THC content as laid down in Article 32(6) of Regulation (EU) No 1307/2013, [F23the relevant authority] shall use procedure B as described in Annex III to this Regulation for the variety concerned in the course of the following claim year. That procedure shall be used in the course of the next claim years unless all the analytical results for the given variety are below the THC content as laid down in Article 32(6) of Regulation (EU) No 1307/2013.

F245.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.For the purposes of this Regulation, ‘hemp cultivated as catch crop’ means crop of hemp sown after 30 June of a given year.

7.Crops of hemp shall continue to be cultivated under normal growing conditions in accordance with local practice for at least 10 days from the date of the end of flowering so that the checks necessary for the application of this Article can be made. Hemp cultivated as catch crop shall continue to be cultivated under normal growing conditions in accordance with local practice at least until the end of the vegetation period.

However, [F25the relevant authority] may authorise hemp to be harvested after flowering has begun but before the end of the 10-day period after the end of flowering, provided that the inspectors indicate which representative parts of each plot concerned must continue to be cultivated for at least 10 days following the end of flowering for inspection purposes, in accordance with the method set out in Annex III.]

Textual Amendments

SECTION 3U.K.Active farmer

Article 10U.K.Cases where agricultural areas are mainly areas naturally kept in a state suitable for grazing or cultivation

1.For the purposes of Article 9(1) of Regulation (EU) No 1307/2013, a natural or legal person, or a group of natural or legal persons, shall be considered as having agricultural areas which are mainly areas naturally kept in a state suitable for grazing or cultivation, where such areas represent more than 50 % of all agricultural area declared in accordance with Article 72(1)(a) of Regulation (EU) No 1306/2013.

2.Article 9(1) of Regulation (EU) No 1307/2013 shall not apply to a natural or legal person, or a group of natural or legal persons who carry out, on areas naturally kept in a state suitable for grazing or cultivation, an agricultural activity within the meaning of the point (i) of Article 4(1)(c) of Regulation (EU) No 1307/2013.

[F26Article 11U.K.Receipts obtained from non-agricultural activities

1.For the purposes of point (a) of the third subparagraph of Article 9(2) of Regulation (EU) No 1307/2013 and, where appropriate, Article 13 of this Regulation, receipts obtained from agricultural activities shall be those receipts that have been received by a farmer from his agricultural activity within the meaning of Article 4(1)(c) of that Regulation on his holding, including the Union support under the European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural Development (EAFRD), as well as any national aid granted for agricultural activities F27....

Receipts from processing of agricultural products within the meaning of Article 4(1)(d) of Regulation (EU) No 1307/2013 of the holding shall be deemed as receipts from agricultural activities provided that the products processed remain the ownership of the farmer and that such processing results in another agricultural product within the meaning of Article 4(1)(d) of Regulation (EU) No 1307/2013.

Any other receipts shall be considered to be receipts from non-agricultural activities.

2.For the purposes of paragraph 1, ‘receipts’ means gross receipts before deduction of related costs and taxes.

F283.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

[F26Article 12U.K.Amount of direct payments referred to in Article 9(2) and (4) of Regulation (EU) No 1307/2013 and in Article 13(2) of this Regulation

1.The annual amount of direct payments of a farmer referred to in point (a) of the third subparagraph of Article 9(2) of Regulation (EU) No 1307/2013 and, where appropriate, in Article 13(2) of this Regulation, shall be the total amount of direct payments to which the farmer was entitled in accordance with Regulation (EU) No 1307/2013 for the most recent fiscal year for which evidence on receipts from non-agricultural activities is available. That amount shall be calculated without taking into account the application of Articles 63 and 91(1) of Regulation (EU) No 1306/2013.

Where the most recent fiscal year referred to in the first subparagraph is 2014 or earlier, the annual amount of direct payments shall be the total amount of direct payments to which the farmer was entitled in accordance with Regulation (EC) No 73/2009 before the reductions and exclusions provided for in Articles 21 and 23 of that Regulation.

2.Where a farmer did not submit an aid application for direct payments in accordance with Regulation (EU) No 1307/2013 in the most recent fiscal year referred to in the first subparagraph of paragraph 1, [F29the relevant authority] shall establish the total amount of direct payments referred to in the first subparagraph of paragraph 1 by multiplying the number of eligible hectares declared by that farmer in the year of submitting the aid application in accordance with Article 72(1)(a) of Regulation (EU) No 1306/2013 by the national average direct support payment per hectare for the year referred to in the first subparagraph of paragraph 1.

The national average direct support payment per hectare referred to in the first subparagraph shall be established by dividing the [F30relevant authority’s share of the national ceiling] for that year by the total number of eligible hectares declared in [F31the constituent nation] for that year in accordance with Article 72(1)(a) of Regulation (EU) No 1306/2013.

Where the year referred to in the first subparagraph of paragraph 1 is 2014 or earlier, the national average direct support payment per hectare referred to in the first subparagraph of this paragraph shall be established by dividing the national ceiling set out in Annex VIII to Regulation (EC) No 73/2009 of that year by the total number of eligible hectares declared in that Member State for that year in accordance with Article 19(1)(a) of Regulation (EC) No 73/2009.

3.The amount of direct payments of a farmer referred to in Article 9(4) of Regulation (EU) No 1307/2013 shall be the total amount of direct payments to which the farmer was entitled in accordance with Regulation (EU) No 1307/2013 before the application of Articles 63 and 91(1) of Regulation (EU) No 1306/2013 for the previous year.

Where the year referred to in the first subparagraph is 2014, the amount of direct payments shall be the total amount of direct payments for the year 2014 to which the farmer was entitled pursuant to Regulation (EC) No 73/2009 before the reductions and exclusions provided for in Articles 21 and 23 of that Regulation.

4.Where a farmer did not submit an aid application for direct payments in accordance with Regulation (EU) No 1307/2013 for the previous year as referred to in the first subparagraph of paragraph 3, [F32the relevant authority] shall establish the total amount of direct payments referred to in the first subparagraph of paragraph 3 by multiplying the number of eligible hectares declared by that farmer in the year of submitting the aid application in accordance with Article 72(1)(a) of Regulation (EU) No 1306/2013 by the national average direct support payment per hectare for the previous year.

The national average direct support payment per hectare referred to in the first subparagraph shall be established by dividing the [F33relevant authority’s share of the national ceiling] for that year by the total number of eligible hectares declared in [F34the constituent nation] for that year in accordance with Article 72(1)(a) of Regulation (EU) No 1306/2013.

Where the previous year referred to in first subparagraph of paragraph 3 is 2014, Member States shall establish the annual amount of direct payments of that farmer by multiplying the number of eligible hectares declared by that farmer for the year 2015 in accordance with Article 72(1)(a) of Regulation (EU) No 1306/2013 by the national average direct support payment per hectare for the year 2014.

The national average direct support payment per hectare for the year 2014 shall be established by dividing the national ceiling for the year 2014 set out in Annex VIII to Regulation (EC) No 73/2009 by the total number of eligible hectares declared in that Member State for the year 2014 in accordance with Article 19(1)(a) of that Regulation.

F355.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

[F26Article 13U.K.Criteria for proving that agricultural activities are not insignificant and that the principal business or company objects consist of exercising an agricultural activity

1.For the purposes of point (b) of the third subparagraph of Article 9(2) of Regulation (EU) No 1307/2013, agricultural activities are not insignificant if the total receipts obtained from agricultural activities within the meaning of Article 11 of this Regulation in the most recent fiscal year for which such evidence is available represent at least one third of the total receipts obtained in the most recent fiscal year for which such evidence is available.

F36...

By way of derogation from the first [F37subparagraph], [F38the relevant authority may use] alternative criteria allowing an entity to demonstrate that its agricultural activities are not insignificant pursuant to point (b) of the third subparagraph of Article 9(2) of Regulation (EU) No 1307/2013 [F39, provided those criteria were established by the relevant authority prior to exit day].

2.For the purposes of point (a) of Article 9(3) of Regulation (EU) No 1307/2013, [F40the relevant authority] may decide that agricultural activities form only an insignificant part of the overall economic activities of a natural or legal person, or a group of natural or legal persons, by using the following [F41method]:

(a)

the annual amount of direct payments is less than 5 % of the total receipts obtained from non-agricultural activities within the meaning of Article 11 of this Regulation in the most recent fiscal year for which such evidence is available;

(b)

F42...

F43...

3.For the purposes of point (c) of the third subparagraph of Article 9(2) of Regulation (EU) No 1307/2013 and, where appropriate, point (b) of Article 9(3) of that Regulation, an agricultural activity shall be considered to be the principal business or company object of a legal person if recorded as a principal business or company object in the official business register or any equivalent official evidence of [F44the relevant authority]. In the case of a natural person, equivalent evidence shall be required.

Where no such registers exist, [F45the relevant authority] shall use equivalent evidence.

By way of derogation from the first and second subparagraphs, [F46the relevant authority may, applying such criteria as the authority established prior to exit day, determine whether] an agricultural activity is to be considered to be a principal business or company object of a natural or legal person pursuant point (c) of the third subparagraph of Article 9(2) and, where appropriate, to point (b) of Article 9(3) of that Regulation.]

Textual Amendments