Commission Regulation (EC) No 795/2004 (repealed)Show full title

Article 21 U.K. Investments

1. A farmer who made investments in production capacity or purchased land in accordance with the conditions laid down in paragraphs 2 to 6, by [F1 15 May 2004] at the latest, shall receive payment entitlements calculated by dividing a reference amount, established by the Member State, in accordance with objective criteria and in such a way as to ensure equal treatment between farmers and to avoid market and competition distortion, by a number of hectares not higher than the number of hectares he purchased.

[F2 However for the investments consisting of the planting of olive trees in the context of programs approved by the Commission, the date referred to in the first subparagraph shall be 31.12.2006 .]

[F3 For the investments in the sugar sector the date referred to in the first subparagraph shall be 3 March 2006 .]

[F4 For the investments in the banana sector the date referred to in the first subparagraph shall be 1 January 2007 .]

2. Investments shall be provided for in a plan or programme whose implementation has already started by [F1 15 May 2004] at the latest. The plan or programme shall be communicated by the farmer to the competent authority of the Member State.

Where no written plan or programs exists, Member Stats may take account of other objective proof of the investment.

[F2 However, for investments referred to in the second subparagraph of paragraph 1, the implementation of the plan or programme shall end by 31.12.2006 at the latest.]

[F3 For the investments in the sugar sector the date referred to in the first subparagraph shall be 3 March 2006 .]

[F4 For the investments in the banana sector the date referred to in the first subparagraph shall be 1 January 2007 .]

3. The increase in the production capacity shall concern only those sectors for which a direct payment listed in Annex VI to Regulation (EC) No 1782/2003 would have been granted in the reference period taking into account the application of the options provided for in Articles 66 to 70 of that Regulation.

The purchase of land shall only concern the purchase of eligible land within the meaning of Article 44 (2) of Regulation (EC) No 1782/2003.

In any case, the part of the increase in production capacity and/or the purchase of land for which the farmer is already entitled to be allocated payment entitlements and/or reference amounts for the reference period shall not be taken into account for the application of this Article.

[F5 4. Long term lease of six and more years started by 15 May 2004 at the latest shall be considered as a purchase of land or investment in production capacity for the application of paragraph 1.

[F3 For the investments in the sugar sector the date referred to in the first subparagraph shall be 3 March 2006 .]

[F4 For the long-term leases in the banana sector the date referred to in the first subparagraph shall be 1 January 2007 .] ]

5. Where a farmer already owns payment entitlements, in case of purchase or long term lease, the number of payment entitlements shall be calculated on the basis of the hectares purchased or rented and, in case of other investments, the total value of the existing payment entitlements may be increased within the limit of the reference amount referred to in paragraph 1.

6. Where a farmer has no hectares or does not own any payment entitlements, the number of payment entitlements shall be calculated by dividing the reference amount referred to in paragraph 1 by a unit value that shall not be higher than EUR5 000.

The value of each payment entitlement shall be that unit value.

The payment entitlements shall be subject to the conditions referred to in Article 49 of Regulation (EC) No 1782/2003. The 50 % of the agricultural activity referred to in paragraph 2 of that Article shall be established by the Member State in accordance with objective criteria.

Textual Amendments

F1 Substituted by Commission Regulation (EC) No 1974/2004 of 29 October 2004 amending Regulation (EC) No 795/2004 laying down detailed rules for the implementation of the single payment scheme provided for in Council Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers.

F2 Inserted by Commission Regulation (EC) No 2183/2005 of 22 December 2005 amending Council Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers and amending Regulation (EC) No 795/2004 laying down detailed rules for the implementation of the single payment scheme provided for in Council Regulation (EC) No 1782/2003.

F3 Inserted by Commission Regulation (EC) No 658/2006 of 27 April 2006 amending Regulation (EC) No 795/2004 laying down detailed rules for the implementation of the single payment scheme provided for in Council Regulation (EC) No 1782/2003.

F4 Inserted by Commission Regulation (EC) No 411/2007 of 17 April 2007 amending Regulation (EC) No 795/2004 laying down detailed rules for the implementation of the single payment scheme provided for in Council Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers.

F5 Substituted by Commission Regulation (EC) No 394/2005 of 8 March 2005 amending Regulation (EC) No 795/2004 laying down detailed rules for the implementation of the single payment scheme provided for in Council Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers, and derogating from Regulation (EC) No 1782/2003.