Article 23 of Regulation (EC) No 1257/1999 provides that the Community may fund farmers who enter into agri-environmental commitments, but that these are to involve more than the application of usual good farming practice. Some of the agri-environmental commitments, given for a five-year period, expire before 31 December 2006. With the introduction of the principle of cross-compliance provided for in Chapter 1 of Title II of Council Regulation (EC) No 1782/2003, establishing common rules for direct support schemes under the common agricultural policy2, the obligations which apply to farmers in the absence of agri-environmental commitments are different. New rules will apply to the agri-environmental measure for the next rural development programming period 2007 to 2013.

Instead of signing new five-year-contracts under rules applicable to the current programming period, Member States may wish to extend agri-environment contracts with farmers currently in force so that the last year of the commitment does not start later than 31 December 2006.

Greater flexibility should be provided in the framework of Commission Regulation (EC) No 817/20043 in cases where farmers have transferred significant parts of the area for which the initial agri-environment commitment was given, while ensuring that the environmental benefits of the commitment are continued.

Regulation (EC) No 817/2004 should therefore be amended accordingly. The amendments should apply as from 1 January 2005, when some of the initial contracts might have expired.

The measures provided for in this Regulation are in accordance with the opinion of the Committee on Agricultural Structures and Rural Development,