Where a Member State has made use of the option provided for in Article 71 of Regulation (EC) No 1782/2003 and decided to apply the single payment scheme in 2006, the rules laid down in Title III of Regulation (EC) No 1782/2003 and in Chapters 1 to 6 of this Regulation shall apply.

F3However, the reduction referred to in Article 41(2) of Regulation (EC) No 1782/2003 shall not apply to the reference amount calculated for sugar beet, cane and chicory support in accordance with point K of Annex VII to Regulation (EC) No 1782/2003.

Where a Member State has applied the single payment scheme in 2005 and without prejudice to the third subparagraph of Article 71(1) of Regulation (EC) No 1782/2003, for the purposes of the establishment of the amount and the determination of payment entitlements in the framework of the integration of tobacco, olive oil and cotton payments as well as sugar beet, cane and chicory support in the single payment scheme, Articles 37 and 43 of that Regulation shall apply subject to the rules established in Article 48d of this Regulation and, in case the Member State has made use of the option provided for in Article 59 of Regulation (EC) No 1782/2003, in Article 48e of this Regulation.

Where a Member State has applied the single payment scheme in 2005, the Member State shall ensure the respect of the national ceiling fixed in Annex VIII to Regulation (EC) No 1782/2003.

As the case may be, Article 41(2) of Regulation (EC) No 1782/2003 shall apply to the value of all the payment entitlements existing before the integration of tobacco, olive oil, cotton and/or dairy payments as well as sugar beet, cane and chicory support, and to the reference amounts calculated for tobacco, olive oil, cotton and/or dairy payments.

Where a Member State has applied the single payment scheme in 2005, the percentage of reduction fixed by the Member State in accordance with Article 42(1) of Regulation (EC) No 1782/2003 shall apply in 2006 to the tobacco, olive oil, cotton, sugar beet, cane and chicory reference amounts to be integrated in the single payment scheme.

The five-year period provided for in Article 42(8) of Regulation (EC) No 1782/2003 shall not restart for the payment entitlements coming from the national reserve whose amount has been recalculated or increased in accordance with Articles 48d and 48e of this Regulation.

Where a Member State has applied the single payment scheme in 2005, for the purpose of the establishment of the payment entitlements in relation to cotton, tobacco, olive oil, hops, sugar beet, cane and chicory, the first year of application of the single payment scheme referred to in Articles 7(1), 12 to 17 and 20 shall be 2006.

Where the inclusion of the sugar reference amounts calculated in accordance with point K of Annex VII to Regulation (EC) No 1782/2003 into the single payment scheme risks to make it impossible to respect the time-limits set out in Article 34 of Regulation (EC) No 1782/2003 and Article 12 of this Regulation, the Member States shall extend those time-limits by one month.

F2If the farmer has not been allocated or has not bought payment entitlements by the last date for applying for the establishment of payment entitlements for 2006, he shall receive payment entitlements calculated in accordance with Articles 37 and 43 of Regulation (EC) No 1782/2003 for tobacco, olive oil and cotton payments as well as sugar beet, cane and chicory support.

The first subparagraph shall apply also when the farmer has leased in payment entitlements for 2005 and/or 2006.

By way of derogation from Article 27, the contractual clause referred to in that Article may be inserted or modified in a lease contract by the date for lodging an application under the single payment scheme in 2006 at the latest.

Payment entitlements leased out before the date for lodging an application under the single payment scheme in 2006 shall be taken into account in the calculation referred to in paragraph 2. However, payment entitlements leased out via a contractual clause as referred to in Article 27 before 15 May 2004 shall be taken into account in the calculation referred to in paragraph 2 of this Article only if the lease conditions may be adjusted.

Where a Member State has made use of the option provided for in Article 59(1) of Regulation (EC) No 1782/2003, all payment entitlements shall be increased by a supplementary amount corresponding to the increase of the regional ceiling in the corresponding year, divided by the total number of payment entitlements established in the region at the date for lodging an application for the single payment scheme at the latest.