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TITLE IIIU.K.RURAL DEVELOPMENT SUPPORT

CHAPTER IIU.K.Common provisions for several measures

Article 45E+S+N.I.Investments

1.In order to be eligible for [F1support for rural development], investment operations shall be preceded by an assessment of the expected environmental impact in accordance with law specific to that kind of investment where the investment is likely to have negative effects on the environment.

2.Expenditure that is eligible for [F1support for rural development] shall be limited to:

(a)the construction, acquisition, including leasing, or improvement of immovable property;

(b)the purchase or lease purchase of new machinery and equipment up to the market value of the asset;

(c)general costs linked to expenditure referred to in points (a) and (b), such as architect, engineer and consultation fees, fees relating to advice on environmental and economic sustainability, including feasibility studies. Feasibility studies shall remain eligible expenditure even where, based on their results, no expenditure under points (a) and (b) is made;

(d)the following intangible investments: acquisition or development of computer software and acquisitions of patents, licenses, copyrights, trademarks;

(e)the costs of establishing forest management plans and their equivalent.

3.In the case of agricultural investments, the purchase of agricultural production rights, payment entitlements, animals, annual plants and their planting shall not be eligible for investment support. However, in case of the restoration of agricultural production potential damaged by natural disasters or catastrophic events, in accordance with point (b) of Article 18(1), expenditure for the purchase of animals may be eligible expenditure.

4.Beneficiaries of investment related support may request the payment of an advance of up to 50 % of the public aid related to the investment from the competent paying agencies if that option is included in the rural development programme.

[F25.Where support is provided through a financial instrument established in accordance with Article 37 of Regulation (EU) No 1303/2013, working capital may be eligible expenditure. Such eligible expenditure shall not exceed [F3EUR 200 000][F3GBP 166,667] or 30 % of the total amount of the eligible expenditure for the investment, whichever is the higher.]

6.In order to take account of the special characteristics of particular types of investments, the [F4appropriate authority may make regulations], laying down the conditions under which other costs connected with leasing contracts, second hand equipment may be considered to be eligible expenditure and specifying the types of renewable energy infrastructure that are to be eligible for support.

[F57.Paragraphs 1, 2 and 3 shall not apply where support is provided in the form of financial instruments.]

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 45WInvestments

1.In order to be eligible for [F20support for rural development], investment operations shall be preceded by an assessment of the expected environmental impact in accordance with law specific to that kind of investment where the investment is likely to have negative effects on the environment.

2.Expenditure that is eligible for [F20support for rural development] shall be limited to:

(a)the construction, acquisition, including leasing, or improvement of immovable property;

(b)the purchase or lease purchase of new machinery and equipment up to the market value of the asset;

(c)general costs linked to expenditure referred to in points (a) and (b), such as architect, engineer and consultation fees, fees relating to advice on environmental and economic sustainability, including feasibility studies. Feasibility studies shall remain eligible expenditure even where, based on their results, no expenditure under points (a) and (b) is made;

(d)the following intangible investments: acquisition or development of computer software and acquisitions of patents, licenses, copyrights, trademarks;

(e)the costs of establishing forest management plans and their equivalent.

3.In the case of agricultural investments, the purchase of agricultural production rights, payment entitlements, animals, annual plants and their planting shall not be eligible for investment support. However, in case of the restoration of agricultural production potential damaged by natural disasters or catastrophic events, in accordance with point (b) of Article 18(1), expenditure for the purchase of animals may be eligible expenditure.

4.Beneficiaries of investment related support may request the payment of an advance of up to 50 % of the public aid related to the investment from the competent paying agencies if that option is included in the rural development programme.

[F215.Where support is provided through a financial instrument established in accordance with Article 37 of Regulation (EU) No 1303/2013, working capital may be eligible expenditure. Such eligible expenditure shall not exceed [F22£200 000] or 30 % of the total amount of the eligible expenditure for the investment, whichever is the higher.]

6.In order to take account of the special characteristics of particular types of investments, the [F23appropriate authority may make regulations], laying down the conditions under which other costs connected with leasing contracts, second hand equipment may be considered to be eligible expenditure and specifying the types of renewable energy infrastructure that are to be eligible for support.

[F247.Paragraphs 1, 2 and 3 shall not apply where support is provided in the form of financial instruments.]

Extent Information

E3This version of this provision applies to Wales only; a separate version has been created for England, Scotland and Northern Ireland only

Textual Amendments

F22Sum in Art. 45(5) 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(39)

Article 46U.K.Investments in irrigation

1.Without prejudice to Article 45 of this Regulation, in the case of irrigation in new and existing irrigated areas, only investments that fulfil the conditions in this Article shall be considered as eligible expenditure.

[F62.A river basin management plan, as required under the terms of the Water Framework Directive and as defined by legislation implementing the Water Framework Directive [F7in each of the constituent nations], shall have been notified to the appropriate authority[F8, or, before IP completion day, to the Commission,] for the entire area in which the investment is to take place, as well as in any other areas whose environment may be affected by the investment. The requirements which apply under the river basin management plan by virtue of Article 11 of the Water Framework Directive and of relevance to the agricultural sector shall have been specified.]

3.Water metering enabling measurement of water use at the level of the supported investment shall be in place or shall be put in place as part of the investment.

4.An investment in an improvement to an existing irrigation installation or element of irrigation infrastructure shall be eligible only if it is assessed ex ante as offering potential water savings of a minimum of between 5 % and 25 % according to the technical parameters of the existing installation or infrastructure.

If the investment affects bodies of ground- or surface water whose status has been identified as less than good in the relevant river basin management plan for reasons related to water quantity:

(a)the investment shall ensure an effective reduction in water use, at the level of the investment, amounting to at least 50 % of the potential water saving made possible by the investment;

(b)in the case of an investment on a single agricultural holding, it shall also result in a reduction to the holding's total water use amounting to at least 50 % of the potential water saving made possible at the level of the investment. The total water use of the holding shall include water sold by the holding.

None of the conditions in paragraph 4 shall apply to an investment in an existing installation which affects only energy efficiency or to an investment in the creation of a reservoir or to an investment in the use of recycled water which does not affect a body of ground or surface water.

5.An investment resulting in a net increase of the irrigated area affecting a given body of ground or surface water shall be eligible only if:

(a)the status of the water body has not been identified as less than good in the relevant river basin management plan for reasons related to water quantity; and

(b)an environmental analysis shows that there will be no significant negative environmental impact from the investment; such an environmental impact analysis shall be either carried out by or approved by the competent authority and may also refer to groups of holdings.

Areas which are not irrigated but in which an irrigation installation was active in the recent past, to be established and justified in the programme, may be considered as irrigated areas for the purpose of determining the net increase of the irrigated area.

6.By way of derogation from point (a) of paragraph 5 investments resulting in a net increase of the irrigated area may still be eligible if:

(a)the investment is combined with an investment in an existing irrigation installation or element of irrigation infrastructure assessed ex ante as offering potential water savings of a minimum of between 5 % and 25 % according to the technical parameters of the existing installation or infrastructure and

(b)the investment ensures an effective reduction in water use, at the level of the investment as a whole, amounting to at least 50 % of the potential water saving made possible by the investment in the existing irrigation installation or element of infrastructure.

Furthermore, by way of derogation, the condition in point (a) of paragraph 5 shall not apply to investments in the establishment of a new irrigation installation supplied with water from an existing reservoir approved by the competent authorities before 31 October 2013 if the following conditions are met:

Textual Amendments

F7Words in Art. 46(2) 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(40)(a)

F8Words in Art. 46(2) 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(40)(b)

Article 47U.K.Rules for area related payments

1.The number of hectares to which a commitment pursuant to Articles 28, 29 and 34 applies may vary from year to year where:

(a)this possibility is provided for in the rural development programme;

(b)the commitment in question does not apply to fixed parcels; and

(c)the achievement of the commitment's objective is not jeopardised.

2.Where all or part of the land under commitment or the entire holding is transferred to another person during the period of that commitment, the commitment, or part thereof corresponding to the land transferred, may be taken over for the remainder of the period by that other person or may expire and reimbursement shall not be required in respect of the period during which the commitment was effective.

3.Where a beneficiary is unable to continue to comply with commitments given because the holding or part of the holding is re-parcelled or is the subject of public land consolidation measures or land consolidation measures approved by the competent public authorities, [F9the relevant authority] shall take the measures necessary to allow the commitments to be adapted to the new situation of the holding. If such adaptation proves impossible, the commitment shall expire and reimbursement shall not be required in respect of the period during which the commitment was effective.

4.Reimbursement of the aid received shall not be required in cases of force majeure and exceptional circumstances as referred to in Article 2 of Regulation (EU) No 1306/2013.

5.Paragraph 2, as regards cases of transfer of the entire holding, and paragraph 4 shall also apply to commitments under Article 33.

6.In order to ensure the efficient implementation of area related measures and [F10proper management of public money], [F11the] the [F12appropriate authority may make regulations] laying down conditions applicable to conversion or adjustment of commitments under the measures referred to in Articles 28, 29, 33 and 34 and, specifying other situations in which reimbursement of the aid shall not be required.

Textual Amendments

F11Word in Art. 47(6) inserted (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(41)

Article 48U.K.Revision clause

A revision clause shall be provided for operations undertaken pursuant to Articles 28, 29, 33 and 34 in order to ensure their adjustment in the case of amendments to the relevant mandatory standards, requirements or obligations referred to in those Articles beyond which the commitments have to go. [F13The revision clause shall also cover adjustments needed to avoid double funding of the practices referred to in Article 43 of Regulation (EU) No 1307/2013 in the case of amendments to those practices.]

[F14Operations undertaken pursuant to Articles 28, 29, 33 and 34 which extend beyond the current programming period shall contain a revision clause in order to allow for their adjustment to the legal framework [F15in force after the current programming period].]

If such adjustment is not accepted by the beneficiary, the commitment shall expire and reimbursement shall not be required in respect of the period during which the commitment was effective.

Textual Amendments

F14Words in Art. 48 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(42)(b)

Article 49E+S+N.I.Selection of operations

1.Without prejudice to point (d) of Article 34(3) of Regulation (EU) No 1303/2013, the Managing Authority of the rural development programme shall define selection criteria for operations following consultation with the Monitoring Committee. Selection criteria shall aim to ensure equal treatment of applicants, better use of financial resources and targeting of measures in accordance with the F16... priorities for rural development. In defining and applying selection criteria the principle of proportionality shall be taken into account in relation to the size of the operation.

[F5By way of derogation from the first subparagraph, in exceptional and duly justified cases where it is not possible to establish selection criteria due to the nature of the type of operations concerned, the Managing Authority may define another selection method to be described in the rural development programme following consultation with the Monitoring Committee.]

[F2[F172.The [F18relevant authority] responsible for the selection of operations shall ensure that operations, with the exception of operations under point (b) of Article 18(1), point (d) of Article 24(1) and Articles 28 to 31, 33, 34 and 36 to 39b, are selected in accordance with the selection criteria referred to in paragraph 1 of this Article and according to a transparent and well-documented procedure.]

3.Beneficiaries may be selected on the basis of calls for proposals, applying economic, social and environmental efficiency criteria.]

[F54.Paragraphs 1 and 2 shall not apply where support is provided in the form of financial instruments.]

Extent Information

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

Textual Amendments

Article 49WSelection of operations

1.Without prejudice to point (d) of Article 34(3) of Regulation (EU) No 1303/2013, the Managing Authority of the rural development programme shall define selection criteria for operations F25.... Selection criteria shall aim to ensure equal treatment of applicants, better use of financial resources and targeting of measures in accordance with the F26... priorities for rural development. In defining and applying selection criteria the principle of proportionality shall be taken into account in relation to the size of the operation.

[F27By way of derogation from the first subparagraph, in exceptional and duly justified cases where it is not possible to establish selection criteria due to the nature of the type of operations concerned, the Managing Authority may define another selection method to be described in the rural development programme F25....]

[F28[F292.The [F30relevant authority] responsible for the selection of operations shall ensure that operations, with the exception of operations under point (b) of Article 18(1), point (d) of Article 24(1) and Articles 28 to 31, 33, 34 and 36 to [F3139a], are selected in accordance with the selection criteria referred to in paragraph 1 of this Article and according to a transparent and well-documented procedure.]

3.Beneficiaries may be selected on the basis of calls for proposals, applying economic, social and environmental efficiency criteria.]

[F274.Paragraphs 1 and 2 shall not apply where support is provided in the form of financial instruments.]

Extent Information

E4This version of this provision applies to Wales only; a separate version has been created for England, Scotland and Northern Ireland only

Textual Amendments

F25Words in Art. 49(1) 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(43)(a)

F31Word in Art. 49(2) 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(43)(b)

Article 50U.K.Rural area definition

For the purposes of this Regulation the Managing Authority shall define "rural area" at programme level. [F19The relevant authority] may establish such a definition for a measure or type of operation if duly justified.

Textual Amendments