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TITLE IIIU.K.RURAL DEVELOPMENT SUPPORT

CHAPTER IU.K.Measures

Article 38E+S+N.I.Mutual funds for adverse climatic events, animal and plant diseases, pest infestations and environmental incidents

1.In order to be eligible for support the mutual fund concerned shall:

(a)be accredited by the competent authority in accordance with national law;

(b)have a transparent policy towards payments into and withdrawals from the fund;

(c)have clear rules attributing responsibilities for any debts incurred.

2.[F1The relevant authority] shall define [F2in the programme] the rules for the constitution and management of the mutual funds, in particular for the granting of compensation payments and the eligibility of farmers in the event of crisis, as well as for the administration and monitoring of compliance with these rules. [F1The relevant authority] shall ensure that the fund arrangements [F3as set out in the programme] provide for penalties in case of negligence on the part of the farmer.

The occurrence of incidents mentioned in point (b) of Article 36(1) must be formally recognised as such by the competent authority of the [F4relevant authority] concerned.

[F53.The financial contributions referred to in point (b) of Article 36(1) may only relate to:

(a)the administrative costs of setting up the mutual fund, spread over a maximum of three years in a degressive manner;

(b)the amounts paid by the mutual fund as financial compensation to farmers. In addition, the financial contribution may relate to interest on commercial loans taken out by the mutual fund for the purpose of paying the financial compensation to farmers in case of crisis;

(c)supplementing the annual payments into the fund;

(d)the initial capital stock of the mutual fund.]

[F6Support under point (b) of Article 36(1) shall only be granted to cover for loss caused by the outbreak of adverse climatic events, animal or plant disease, pest infestation, or measures adopted in accordance with Directive 2000/29/EC to eradicate or contain a plant disease or pest or environmental incident, which destroy more than 30 % of the average annual production of the farmer in the preceding three-year period or a three-year average based on the preceding five-year period, excluding the highest and lowest entry. Indexes may be used in order to calculate the annual production of the farmer. The calculation method used shall permit the determination of the actual loss of an individual farmer in a given year. F7...]

F8...

4.As regards animal diseases, financial compensation under point (b) of Article 36(1) may be granted in respect of diseases mentioned in the list of animal diseases established by the World Organisation for Animal Health or in [F9Annex II of Regulation (EU) No 652/2014].

[F55.Support shall be limited to the maximum support rate laid down in Annex II. Support under point (b) of paragraph 3 shall take into account any support already provided under points (c) and (d) of paragraph 3.]

[F10The relevant authority] may limit the costs that are eligible for support by applying:

(a)ceilings per fund;

(b)appropriate per unit ceilings.

Extent Information

E1This version of this provision applies to England, Scotland and Northern Ireland only; a separate version has been created for Wales only

Textual Amendments

Article 38WMutual funds for adverse climatic events, animal and plant diseases, pest infestations and environmental incidents

1.In order to be eligible for support the mutual fund concerned shall:

(a)be accredited by the competent authority in accordance with national law;

(b)have a transparent policy towards payments into and withdrawals from the fund;

(c)have clear rules attributing responsibilities for any debts incurred.

2.[F11The relevant authority] shall define [F12in the programme] the rules for the constitution and management of the mutual funds, in particular for the granting of compensation payments and the eligibility of farmers in the event of crisis, as well as for the administration and monitoring of compliance with these rules. [F11The relevant authority] shall ensure that the fund arrangements [F13as set out in the programme] provide for penalties in case of negligence on the part of the farmer.

The occurrence of incidents mentioned in point (b) of Article 36(1) must be formally recognised as such by the competent authority of the [F14relevant authority] concerned.

[F153.The financial contributions referred to in point (b) of Article 36(1) may only relate to:

(a)the administrative costs of setting up the mutual fund, spread over a maximum of three years in a degressive manner;

(b)the amounts paid by the mutual fund as financial compensation to farmers. In addition, the financial contribution may relate to interest on commercial loans taken out by the mutual fund for the purpose of paying the financial compensation to farmers in case of crisis;

(c)supplementing the annual payments into the fund;

(d)the initial capital stock of the mutual fund.]

[F16Support under point (b) of Article 36(1) shall only be granted to cover for loss caused by the outbreak of adverse climatic events, an animal or plant disease, a pest infestation, or a measure adopted in accordance with Directive 2000/29/EC to eradicate or contain a plant disease or pest or an environmental incident, which destroy more than 30% of the average annual production of the farmer in the preceding three-year period or a three-year average based on the preceding five-year period, excluding the highest and lowest entry. Indexes may be used in order to calculate the annual production of the farmer. The calculation method used shall permit the determination of the actual loss of an individual farmer in a given year.]

F17...

4.As regards animal diseases, financial compensation under point (b) of Article 36(1) may be granted in respect of diseases mentioned in the list of animal diseases established by the World Organisation for Animal Health or in [F18Annex II of Regulation (EU) No 652/2014].

F195.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Extent Information

E2This version of this provision applies to Wales only; a separate version has been created for England, Scotland and Northern Ireland only

Textual Amendments

F16Words in Art. 38(3) substituted (W.) (26.3.2021 in so far as it relates to domestic support for rural development) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 7(33)(a)

F19Art. 38(5) omitted (W.) (26.3.2021 in so far as it relates to domestic support for rural development) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 7(33)(b)