Article 1U.K.

Regulation (EC) No 795/2004 is amended as follows:

1.

In Article 28a, the terms ‘the Annex’ are replaced by ‘Annex I’.

2.

In Article 32(4) the following third subparagraph is added:

Where areas were newly allocated in the framework of a national reparcelling scheme between the date for the aid application for 2003 and the date of application for the single payment scheme in the first year of implementation, the Member State concerned shall determine which areas are to be considered as permanent pasture for the purpose of articles 54(2) and 61 of Regulation (EC) No 1782/2003. In these cases Member States shall take into account the situation existing at farmer's level before the reparcelling by minimising, to the maximum extent, any effect on the farmer's possibilities to use the payments entitlements. In doing so Member States shall take action to prevent, in the area affected by the reparcelling scheme, any significant increase of the total area eligible to set aside entitlements as well as any significant decrease of permanent pasture.

3.

In Article 41 the following paragraph 5 is added:

5.The average number of hectares at national and regional level, referred to in Article 60(2) of Regulation (EC) No 1782/2003, is fixed in Annex II to this Regulation.

4.

In the first subparagraph of Article 50(2), the date of 1 August is replaced by the date of 15 September.

5.

The Annex is replaced by the text in Annex I to this Regulation.

6.

The text in Annex II to this Regulation is added as Annex II.