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Commission Delegated Regulation (EU) No 639/2014Show full title

Commission Delegated Regulation (EU) N o 639/2014 of 11 March 2014 supplementing Regulation (EU) No 1307/2013 of the European Parliament and of the Council establishing rules for direct payments to farmers under support schemes within the framework of the common agricultural policy and amending Annex X to that Regulation

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Changes over time for: Commission Delegated Regulation (EU) No 639/2014 (without Annexes)

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CHAPTER 1U.K. SCOPE AND GENERAL PROVISIONS

SECTION 1 U.K. Scope and general principles

Article 1U.K.Scope

This Regulation lays down provisions supplementing certain non-essential elements of Regulation (EU) No 1307/2013 in relation to:

(a)

general provisions on direct payments;

(b)

the basic payment scheme;

(c)

F1...

(d)

[F2the payment for farmers observing agricultural practices beneficial for the climate and the environment;]

(e)

the payment for young farmers commencing their agricultural activity;

(f)

voluntary coupled support;

(g)

F3...

(h)

F4...

Textual Amendments

Article 2U.K.General principles

1.[F5The relevant authority] shall implement this Regulation in accordance with objective criteria and in such a way as to ensure the equal treatment of farmers and to avoid distortions of the market and of competition, while promoting a sustainable management of natural resources and climate action.

2.[F5The relevant authority] shall ensure that all conditions for support implemented under this Regulation are verifiable and controllable.

3.[F5The relevant authority] shall implement this Regulation:

(a)

in respect of support other than coupled support, respecting the requirements set out in paragraphs 1, 5 and 6 of Annex 2 to the Agreement on Agriculture; and

(b)

in respect of coupled support, respecting the requirements of Article 6(5) of the Agreement on Agriculture.

Textual Amendments

F6Article 3U.K.Reductions due to financial discipline

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Textual Amendments

SECTION 2 U.K. Provisions related to definitions in Regulation (EU) No 1307/2013

Article 4U.K.Framework for criteria on maintaining the agricultural area in a state suitable for grazing or cultivation

1.For the purposes of the point (ii) of Article 4(1)(c) of Regulation (EU) No 1307/2013, the criteria that farmers are to meet in order to fulfil the obligation to maintain the agricultural area in a state suitable for grazing or cultivation without preparatory action going beyond usual agricultural methods and machineries shall be established by [F7the relevant authority] in either or both of the following ways:

(a)

[F8the relevant authority requires] at least one annual activity to be carried out by a farmer. Where justified for environmental reasons, [F9the relevant authority] may decide to recognise also activities that are carried out only every second year;

(b)

[F10the relevant authority sets] out the characteristics to be met by an agricultural area in order to be deemed maintained in a state suitable for grazing or cultivation.

2.When establishing criteria referred to in paragraph 1, [F11the relevant authority] may distinguish between different types of agricultural areas.

Textual Amendments

Article 5U.K.Framework for minimum activities on agricultural areas naturally kept in a state suitable for grazing or cultivation

For the purposes of the point (iii) of Article 4(1)(c) of Regulation (EU) No 1307/2013, the minimum activity to be established by the [F12relevant authority] that is to be carried out on agricultural areas naturally kept in a state suitable for grazing or cultivation shall be at least one annual activity to be carried out by a farmer. Where justified for environmental reasons, [F13the relevant authority] may decide to recognise also activities that are carried out only every second year.

Textual Amendments

Article 6U.K.Predominance of grasses and other herbaceous forage in case of permanent grassland

For the purposes of Article 4(1)(h) of Regulation (EU) No 1307/2013, grasses and other herbaceous forage shall be deemed to remain predominant where they cover more than 50 % of the eligible area at the level of the agricultural parcel within the meaning of Article 67(4)(a) of Regulation (EU) No 1306/2013.

[F14Article 7U.K.Established local practices in case of permanent grassland

For the purposes of Article 4(1)(h) of Regulation (EU) No 1307/2013, established local practices shall be practices for areas for livestock grazing which are traditional in character and are commonly applied on the areas concerned.]

Textual Amendments

[F15Article 8U.K.Reduction coefficient according to Article 32(5) of Regulation (EU) No 1307/2013

When applying Article 32(5) of Regulation (EU) No 1307/2013 for permanent grassland which can be grazed and which forms part of established local practices where grasses and other herbaceous forage are traditionally not predominant in grazing areas, [F16the relevant authority] may distinguish between different categories of areas in order to apply different reduction coefficients to such categories [F17, provided that such a decision was made and notified to the Commission no later than 31 January 2015].]

Textual Amendments

[F18Article 9U.K. Hemp

[F191.For the purposes of Article 32(6) of Regulation (EU) No 1307/2013, the eligibility of areas used for the production of hemp shall be subject to the use of seed of the varieties listed in [F20Annex IV].]

2.[F21The relevant authority] shall establish the system for determining the Δ9-tetrahydrocannabinol content (hereinafter referred to as ‘THC content’) in hemp varieties, which allows them to apply the method set out in Annex III.

3.The [F22relevant authority] shall keep the records related to findings on the THC content. Such records shall comprise for each variety at least the results in terms of THC content from each sample expressed in percentage to two decimal places, the procedure used, the number of tests carried out, an indication of the point at which the sample was taken and measures taken at national level.

4.If an average of all the samples of a given variety exceeds the THC content as laid down in Article 32(6) of Regulation (EU) No 1307/2013, [F23the relevant authority] shall use procedure B as described in Annex III to this Regulation for the variety concerned in the course of the following claim year. That procedure shall be used in the course of the next claim years unless all the analytical results for the given variety are below the THC content as laid down in Article 32(6) of Regulation (EU) No 1307/2013.

F245.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.For the purposes of this Regulation, ‘hemp cultivated as catch crop’ means crop of hemp sown after 30 June of a given year.

7.Crops of hemp shall continue to be cultivated under normal growing conditions in accordance with local practice for at least 10 days from the date of the end of flowering so that the checks necessary for the application of this Article can be made. Hemp cultivated as catch crop shall continue to be cultivated under normal growing conditions in accordance with local practice at least until the end of the vegetation period.

However, [F25the relevant authority] may authorise hemp to be harvested after flowering has begun but before the end of the 10-day period after the end of flowering, provided that the inspectors indicate which representative parts of each plot concerned must continue to be cultivated for at least 10 days following the end of flowering for inspection purposes, in accordance with the method set out in Annex III.]

Textual Amendments

SECTION 3U.K.Active farmer

Article 10U.K.Cases where agricultural areas are mainly areas naturally kept in a state suitable for grazing or cultivation

1.For the purposes of Article 9(1) of Regulation (EU) No 1307/2013, a natural or legal person, or a group of natural or legal persons, shall be considered as having agricultural areas which are mainly areas naturally kept in a state suitable for grazing or cultivation, where such areas represent more than 50 % of all agricultural area declared in accordance with Article 72(1)(a) of Regulation (EU) No 1306/2013.

2.Article 9(1) of Regulation (EU) No 1307/2013 shall not apply to a natural or legal person, or a group of natural or legal persons who carry out, on areas naturally kept in a state suitable for grazing or cultivation, an agricultural activity within the meaning of the point (i) of Article 4(1)(c) of Regulation (EU) No 1307/2013.

[F26Article 11U.K.Receipts obtained from non-agricultural activities

1.For the purposes of point (a) of the third subparagraph of Article 9(2) of Regulation (EU) No 1307/2013 and, where appropriate, Article 13 of this Regulation, receipts obtained from agricultural activities shall be those receipts that have been received by a farmer from his agricultural activity within the meaning of Article 4(1)(c) of that Regulation on his holding, including the Union support under the European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural Development (EAFRD), as well as any national aid granted for agricultural activities F27....

Receipts from processing of agricultural products within the meaning of Article 4(1)(d) of Regulation (EU) No 1307/2013 of the holding shall be deemed as receipts from agricultural activities provided that the products processed remain the ownership of the farmer and that such processing results in another agricultural product within the meaning of Article 4(1)(d) of Regulation (EU) No 1307/2013.

Any other receipts shall be considered to be receipts from non-agricultural activities.

2.For the purposes of paragraph 1, ‘receipts’ means gross receipts before deduction of related costs and taxes.

F283.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

[F26Article 12U.K.Amount of direct payments referred to in Article 9(2) and (4) of Regulation (EU) No 1307/2013 and in Article 13(2) of this Regulation

1.The annual amount of direct payments of a farmer referred to in point (a) of the third subparagraph of Article 9(2) of Regulation (EU) No 1307/2013 and, where appropriate, in Article 13(2) of this Regulation, shall be the total amount of direct payments to which the farmer was entitled in accordance with Regulation (EU) No 1307/2013 for the most recent fiscal year for which evidence on receipts from non-agricultural activities is available. That amount shall be calculated without taking into account the application of Articles 63 and 91(1) of Regulation (EU) No 1306/2013.

Where the most recent fiscal year referred to in the first subparagraph is 2014 or earlier, the annual amount of direct payments shall be the total amount of direct payments to which the farmer was entitled in accordance with Regulation (EC) No 73/2009 before the reductions and exclusions provided for in Articles 21 and 23 of that Regulation.

2.Where a farmer did not submit an aid application for direct payments in accordance with Regulation (EU) No 1307/2013 in the most recent fiscal year referred to in the first subparagraph of paragraph 1, [F29the relevant authority] shall establish the total amount of direct payments referred to in the first subparagraph of paragraph 1 by multiplying the number of eligible hectares declared by that farmer in the year of submitting the aid application in accordance with Article 72(1)(a) of Regulation (EU) No 1306/2013 by the national average direct support payment per hectare for the year referred to in the first subparagraph of paragraph 1.

The national average direct support payment per hectare referred to in the first subparagraph shall be established by dividing the [F30relevant authority’s share of the national ceiling] for that year by the total number of eligible hectares declared in [F31the constituent nation] for that year in accordance with Article 72(1)(a) of Regulation (EU) No 1306/2013.

Where the year referred to in the first subparagraph of paragraph 1 is 2014 or earlier, the national average direct support payment per hectare referred to in the first subparagraph of this paragraph shall be established by dividing the national ceiling set out in Annex VIII to Regulation (EC) No 73/2009 of that year by the total number of eligible hectares declared in that Member State for that year in accordance with Article 19(1)(a) of Regulation (EC) No 73/2009.

3.The amount of direct payments of a farmer referred to in Article 9(4) of Regulation (EU) No 1307/2013 shall be the total amount of direct payments to which the farmer was entitled in accordance with Regulation (EU) No 1307/2013 before the application of Articles 63 and 91(1) of Regulation (EU) No 1306/2013 for the previous year.

Where the year referred to in the first subparagraph is 2014, the amount of direct payments shall be the total amount of direct payments for the year 2014 to which the farmer was entitled pursuant to Regulation (EC) No 73/2009 before the reductions and exclusions provided for in Articles 21 and 23 of that Regulation.

4.Where a farmer did not submit an aid application for direct payments in accordance with Regulation (EU) No 1307/2013 for the previous year as referred to in the first subparagraph of paragraph 3, [F32the relevant authority] shall establish the total amount of direct payments referred to in the first subparagraph of paragraph 3 by multiplying the number of eligible hectares declared by that farmer in the year of submitting the aid application in accordance with Article 72(1)(a) of Regulation (EU) No 1306/2013 by the national average direct support payment per hectare for the previous year.

The national average direct support payment per hectare referred to in the first subparagraph shall be established by dividing the [F33relevant authority’s share of the national ceiling] for that year by the total number of eligible hectares declared in [F34the constituent nation] for that year in accordance with Article 72(1)(a) of Regulation (EU) No 1306/2013.

Where the previous year referred to in first subparagraph of paragraph 3 is 2014, Member States shall establish the annual amount of direct payments of that farmer by multiplying the number of eligible hectares declared by that farmer for the year 2015 in accordance with Article 72(1)(a) of Regulation (EU) No 1306/2013 by the national average direct support payment per hectare for the year 2014.

The national average direct support payment per hectare for the year 2014 shall be established by dividing the national ceiling for the year 2014 set out in Annex VIII to Regulation (EC) No 73/2009 by the total number of eligible hectares declared in that Member State for the year 2014 in accordance with Article 19(1)(a) of that Regulation.

F355.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

[F26Article 13U.K.Criteria for proving that agricultural activities are not insignificant and that the principal business or company objects consist of exercising an agricultural activity

1.For the purposes of point (b) of the third subparagraph of Article 9(2) of Regulation (EU) No 1307/2013, agricultural activities are not insignificant if the total receipts obtained from agricultural activities within the meaning of Article 11 of this Regulation in the most recent fiscal year for which such evidence is available represent at least one third of the total receipts obtained in the most recent fiscal year for which such evidence is available.

F36...

By way of derogation from the first [F37subparagraph], [F38the relevant authority may use] alternative criteria allowing an entity to demonstrate that its agricultural activities are not insignificant pursuant to point (b) of the third subparagraph of Article 9(2) of Regulation (EU) No 1307/2013 [F39, provided those criteria were established by the relevant authority prior to exit day].

2.For the purposes of point (a) of Article 9(3) of Regulation (EU) No 1307/2013, [F40the relevant authority] may decide that agricultural activities form only an insignificant part of the overall economic activities of a natural or legal person, or a group of natural or legal persons, by using the following [F41method]:

(a)

the annual amount of direct payments is less than 5 % of the total receipts obtained from non-agricultural activities within the meaning of Article 11 of this Regulation in the most recent fiscal year for which such evidence is available;

(b)

F42...

F43...

3.For the purposes of point (c) of the third subparagraph of Article 9(2) of Regulation (EU) No 1307/2013 and, where appropriate, point (b) of Article 9(3) of that Regulation, an agricultural activity shall be considered to be the principal business or company object of a legal person if recorded as a principal business or company object in the official business register or any equivalent official evidence of [F44the relevant authority]. In the case of a natural person, equivalent evidence shall be required.

Where no such registers exist, [F45the relevant authority] shall use equivalent evidence.

By way of derogation from the first and second subparagraphs, [F46the relevant authority may, applying such criteria as the authority established prior to exit day, determine whether] an agricultural activity is to be considered to be a principal business or company object of a natural or legal person pursuant point (c) of the third subparagraph of Article 9(2) and, where appropriate, to point (b) of Article 9(3) of that Regulation.]

Textual Amendments

CHAPTER 2U.K. BASIC PAYMENT SCHEME AND SINGLE AREA PAYMENT SCHEME

SECTION 1 U.K. Rules for the implementation of the basic payment scheme provided for in Sections 1, 2, 3 and 5 of Chapter 1 of Title III of Regulation (EU) No 1307/2013

Subsection 1U.K.First allocation of payment entitlements

F47Article 14U.K.Cases of inheritance, changes in legal status or denomination and mergers and scissions

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Textual Amendments

F48Article 15U.K.Establishment of eligible hectares for the purposes of Articles 24(2) and 39(2) of Regulation (EU) No 1307/2013

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Article 16U.K.Limitation under Article 24(6) of Regulation (EU) No 1307/2013

1.Any reduction pursuant to Article 24(6) of Regulation (EU) No 1307/2013 shall not exceed 85 % of the number of payment entitlements corresponding to the eligible hectares of permanent grassland located in areas with difficult climate conditions.

2.For the purpose of applying the reduction coefficient provided for in paragraph 1, Member States may, on the basis of the natural constraints referred to Article 24(6) of Regulation (EU) No 1307/2013, distinguish between categories of areas with difficult climate conditions in order to apply different reduction coefficients to such categories.

F49Article 17U.K.Determination of the value of payment entitlements under Articles 26 and 40 of Regulation (EU) No 1307/2013

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Textual Amendments

F49Article 18U.K.Definitive establishment of the value and number of payment entitlements

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Textual Amendments

F49Article 19U.K.Establishment of the value of payment entitlements in hardship cases

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Textual Amendments

F49Article 20U.K.Private contract clause in the case of sale

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Textual Amendments

F49Article 21U.K.Private contract clause in the case of lease

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Textual Amendments

Article 22U.K.Beneficiaries pursuant to Article 24(1) of Regulation (EU) No 1307/2013

For the purposes of the first indent of point (a)(i) of the third subparagraph of Article 24(1) of Regulation (EU) No 1307/2013, ‘ware potatoes’ and ‘seed potatoes’ shall mean potatoes of CN code 0701 other than those intended for the manufacture of potato starch.

Subsection 2 U.K. Activation and transfer of entitlements

Article 23U.K.Calculation of the value of payment entitlements

1.Payment entitlements shall in a first step be calculated up to three decimals and in a second step be rounded up or down to the nearest second decimal. If the calculation gives a result where the third decimal is a 5, the sum shall be rounded up to the second decimal.

2.If a farmer transfers a fraction of an entitlement, the value of that fraction shall be calculated proportionally for each remaining relevant year as referred to in Article 25 F50... of Regulation (EU) No 1307/2013.

3.[F51The relevant authority] may modify payment entitlements by merging fractions of entitlements owned by a farmer. The value of the merged entitlements shall be determined for each remaining relevant year as referred to in Article 25 F52... of Regulation (EU) No 1307/2013 by adding the value of the fractions.

Textual Amendments

Article 24U.K.Requirements for activation of payment entitlements

1.Payment entitlements may only be declared for payment once per year by the farmer who holds them (owned or leased-in) at the latest date for lodging the single application.

However, where a farmer uses the possibility to amend the single application in accordance with the rules established F53... on the basis of Article 78(b) of Regulation (EU) No 1306/2013, he may also declare for payment those payment entitlements which he holds (owned or leased-in) at the date of his notification of the amendments to the competent authority, provided that the payment entitlements concerned are not declared for payment by another farmer in respect of the same year.

Where the farmer acquires payment entitlements by way of a transfer from another farmer and where that other farmer had already declared those payment entitlements for payment, the additional declaration of those payment entitlements by the transferee shall only be admissible if the transferor has already informed the competent authority of the transfer in accordance with the rules established F54... on the basis of Article 34(5) of Regulation (EU) No 1307/2013 and withdraws those payment entitlements from his own single application, within the time-limits for amending the single application fixed F54... on the basis of Article 78 (b) of Regulation (EU) No 1306/2013.

[F182.Where a farmer declares a number of payment entitlements exceeding his total eligible area declared pursuant to Article 33(1) of Regulation (EU) No 1307/2013, the payment entitlement or the fraction of a payment entitlement which is partially exceeding that eligible area shall be deemed as fully activated for the purposes of Article 31(1)(b) of that Regulation. However, the payment shall be calculated on the basis of the corresponding fraction of an eligible hectare.]

Textual Amendments

Article 25U.K.Transfer of entitlements

1.Payment entitlements may be transferred at any time of the year.

2.Where [F55the relevant authority] uses the option provided for in Article 34(3) of Regulation (EU) No 1307/2013, it shall define the regions referred to in that provision in the first year of application of Article 34(3) of Regulation (EU) No 1307/2013 and at the latest one month before the date fixed by the [F56relevant authority] pursuant to Article 33(1) of that Regulation.

Textual Amendments

Subsection 3 U.K. National or regional reserves

[F57Article 26U.K.Reversion to the national or regional reserve due to retention on transfer of payment entitlements

Where [F58the relevant authority] uses the option provided for in Article 34(4) of Regulation (EU) No 1307/2013, it may decide, in accordance with objective criteria and in such a way as to ensure equal treatment between farmers and to avoid market and competition distortion, to revert to the national or regional reserve up to 30 % of the annual unit values of each payment entitlement transferred without the corresponding eligible hectares within the meaning of Article 32(2) of Regulation (EU) No 1307/2013, or the equivalent amount expressed in number of payment entitlements.

By way of derogation from the first subparagraph, [F59the relevant authority] may provide for a reversion up to 50 % of the annual unit value of each payment entitlement or the equivalent amount expressed in number of payment entitlements as referred to in the first subparagraph during the first three years of application of the basic payment scheme.

[F60In this subsection references to “national or regional reserve” are to be construed in accordance with the definitions contained in Article 4 of Regulation (EU) No 1307/2013.]]

Textual Amendments

F61Article 27U.K.Application of the windfall profit clause

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Article 28U.K.Establishment of payment entitlements from the national or regional reserve under Article 30(6) of Regulation (EU) No 1307/2013

1.For the purposes of Article 30(6) of Regulation (EU) No 1307/2013, where a young farmer or a farmer who commences his agricultural activity applies for payment entitlements from the national or regional reserve while he does not hold any payment entitlement (owned or leased-in), he shall receive a number of payment entitlements equal to the number of eligible hectares he holds (owned or leased-in) at the latest date for lodging his application for the allocation or increase of the value of payment entitlements fixed F62... on the basis of Article 78(b) of Regulation (EU) No 1306/2013.

2.Where a young farmer or a farmer who commences his agricultural activity applies for payment entitlements from the national or regional reserve while he already holds payment entitlements (owned or leased-in), he shall receive a number of payment entitlements equal to the number of eligible hectares he holds (owned or leased-in) at the latest date for lodging his application referred to in paragraph 1 for which he does not hold any payment entitlement (owned or leased-in).

Where the value of the entitlements that the farmer already holds (owned or leased-in) is below the national or regional average referred to in the second subparagraph of Article 30(8) of Regulation (EU) No 1307/2013, the annual unit values of those entitlements may be increased up to the national or regional average as provided for in Article 30(10) of that Regulation.

However, [F63if the relevant authority applies] the increase referred to in Article 30(10) of Regulation (EU) No 1307/2013 for the purposes of Article 30(7) of that Regulation, the increase referred to in the second subparagraph of this paragraph shall be mandatory F64.... Such increase should be at a level corresponding to the highest level of increase applied for the purposes of Article 30(7) of Regulation (EU) No 1307/2013.

3.[F65If the relevant authority applied] Article 24(6) F66... of Regulation (EU) No 1307/2013 [F67as it had effect immediately before exit day], the limitations of the allocation of payment entitlements laid down in those provisions may be applied mutatis mutandis for the allocation of payment entitlements pursuant to Article 30(6) of Regulation (EU) No 1307/2013.

However, [F68the relevant authority] may decide that where the application of one or several limitations referred to in the first subparagraph limits the total number of payment entitlements which the farmer already holds and which are to be newly allocated from the reserve to less than a fixed percentage of his eligible hectares in the year in which he applies for allocation of payment entitlements from the reserve, that farmer shall be allocated an additional number of payment entitlements corresponding to a share in the total number of his eligible hectares declared in his application for that year in accordance with Article 72(1) of Regulation (EU) No 1306/2013.

The fixed percentage referred to in the second subparagraph of this Article shall be calculated in accordance with the method referred in the second subparagraph of Article 31(2) of this Regulation [F69as it had effect immediately before exit day].

The share of the total number of eligible hectares of the farmer referred to in the second subparagraph of this paragraph shall be calculated as half of the difference in percentage points between the fixed percentage referred to in the third subparagraph of this paragraph and the share of ‘payment entitlements held by the farmer’ in his eligible hectares declared in accordance with Article 72(1) of Regulation (EU) No 1306/2013 in his application for the year referred to in the second subparagraph of this paragraph. For the purposes of this subparagraph, ‘payment entitlements held by the farmer’ means payments entitlement already held by the farmer and which are to be newly allocated from the reserve.

When calculating the number of eligible hectares referred to in the second, third and fourth subparagraphs of this paragraph, [F68the relevant authority] may decide not to include any areas taken up by permanent crops, by permanent grassland located in areas with difficult climatic conditions as referred to in Article 24(6) of Regulation (EU) No 1307/2013 [F70as it had effect immediately before exit day] or by areas recognised as permanent grassland in accordance with the second subparagraph of Article 4(2) of Regulation (EU) No 1307/2013.

[F71The relevant authority] using the possibility provided in Article 23 of Regulation (EU) No 1307/2013 to apply the basic payment scheme at regional level may base the calculation method referred to in the second subparagraph of this paragraph upon the total numbers allocated/declared in 2015 in the relevant region.

For the purpose of determining the threshold in the second subparagraph, the land acquired or leased-in by the farmer after 19 October 2011 shall not be taken into account.

4.For the purposes of this Article, only those farmers who commence their agricultural activity shall be considered who commenced their agricultural activity in calendar year 2013 or any later year and who submit an application for the basic payment not later than two years after the calendar year in which they commenced their agricultural activity.

Textual Amendments

Article 29U.K.Establishment of payment entitlements from the national or regional reserve under Article 30(7) of Regulation (EU) No 1307/2013

1.For the purposes of Article 30(7) of Regulation (EU) No 1307/2013, where new payment entitlements are allocated as provided for in Article 30(10) of that Regulation, they shall be allocated in accordance with the conditions laid down in this Article and in accordance with the objective criteria laid down by the [F72relevant authority] concerned.

2.Where a farmer who does not hold any payment entitlement (owned or leased-in) is entitled in accordance with Article 30(7) of Regulation (EU) No 1307/2013 to receive payment entitlements from the national or regional reserve and applies for it, he shall receive a number of payment entitlements up to the number of eligible hectares he holds (owned or leased-in) at the latest date for lodging his application as referred to in Article 28(1).

3.Where a farmer who holds payment entitlements (owned or leased-in) is entitled in accordance with Article 30(7) of Regulation (EU) No 1307/2013 to receive payment entitlements from the national or regional reserve and applies for it, he shall receive a number of payment entitlements up to the number of eligible hectares he holds (owned or leased-in) at the latest date for lodging his application as referred to in Article 28(1) for which he does not hold any payment entitlement (owned or leased-in).

Where the value of the entitlements that the farmer already holds (owned or leased-in) is below the national or regional average referred to in the second subparagraph of Article 30(8) of Regulation (EU) No 1307/2013, the annual unit values of those entitlements may be increased up to the national or regional average as provided for in Article 30(10) of that Regulation.

[F734.For the purposes of paragraph 1, [F74the relevant authority] shall not lay down criteria related to production or other sector-specific data for a period after the date fixed by the [F75relevant authority] in accordance with Article 11(2) of Regulation (EC) No 1122/2009 for claim year 2013.]

Textual Amendments

Article 30U.K.Further rules on the establishment of payment entitlements from the national or regional reserve

1.When increasing the annual unit values of payment entitlements as referred to in Article 30(10) of Regulation (EU) No 1307/2013, [F76the relevant authority] shall increase the unit value of entitlements the farmer already holds (owned or leased-in) at the date of application for the allocation of entitlements from the national or regional reserve in accordance with objective criteria and in such a way as to ensure equal treatment between farmers and to avoid market and competition distortion.

[F772.For the purposes of paragraph 1, [F78the relevant authority] shall not lay down criteria related to production or other sector-specific data for a period after the date fixed by the [F79relevant authority] in accordance with Article 11(2) of Regulation (EC) No 1122/2009 for claim year 2013.]

Textual Amendments

F80Article 31U.K.Hardship cases

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Textual Amendments

Subsection 4U.K.Member States applying Article 21(3) of Regulation (EU) No 1307/2013

Article 32U.K.Implementation in Member States applying Article 21(3) of Regulation (EU) No 1307/2013

Save as otherwise provided in this Subsection, the provisions of this Section shall apply to Member States applying Article 21(3) of Regulation (EU) No 1307/2013.

Article 33U.K.Application of Article 21(4) of Regulation (EU) No 1307/2013

For the purpose of establishing which payment entitlements shall expire in accordance with Article 21(4) of Regulation (EU) No 1307/2013, priority shall be given to those payment entitlements which have the lowest value.

Where payment entitlements have the same value, the number of owned payment entitlements and the number of leased-in payment entitlements shall be reduced in the same proportion.

Member States may decide to apply the first and the second paragraphs at regional level.

F81Article 34U.K.Determination of the value of payment entitlements under Article 26 of Regulation (EU) No 1307/2013 for Member States applying Article 21(3) of that Regulation

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Textual Amendments

SECTION 2U.K.Single area payment scheme

F81Article 35U.K.Eligible hectares in Member States applying the single area payment scheme

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Textual Amendments

F81Article 36U.K.Application of Article 36(3) of Regulation (EU) No 1307/2013

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Textual Amendments

F81Article 37U.K.Production of hemp under the single area payment scheme

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Textual Amendments

[F82CHAPTER 3U.K.GREENING

SECTION 1U.K.Equivalence

Article 38U.K.Requirements applicable to the national or regional certification schemes

1.[F83The relevant authority] deciding to implement equivalent practices referred to in Article 43(3)(b) of Regulation (EU) No 1307/2013 shall designate one or more public or private certification authorities certifying that the farmer observes practices on its holding which comply with Article 43(3) of that Regulation.

2.Public or private certification authorities shall fulfil the following conditions:

(a)

they shall have the expertise, equipment and infrastructure required to carry out the certification tasks;

(b)

they shall have a sufficient number of qualified and experienced staff;

(c)

they shall be impartial and free from any conflict of interest as regards the exercise of the certification tasks.

F84...

F853.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Article 39U.K.Calculation of the amount referred to in Article 28(6) of Regulation (EU) No 1305/2013

1.For farmers deciding to observe the practices referred to in points 3 and 4 of Section I and point 7 of Section III of Annex IX to Regulation (EU) No 1307/2013 and any further equivalent practices added to that Annex for which a specific calculation is needed in order to avoid double funding, as equivalent practices pursuant to Article 43(3)(a) of that Regulation, [F86the relevant authority] shall deduct from the amount of support per hectare calculated pursuant to Article 28(6) of Regulation (EU) No 1305/2013 an amount corresponding to one third of the average greening payment per hectare in the [F87constituent nation] or region concerned for each greening practice that the practice is equivalent with.

The average greening payment per hectare in the [F88constituent nation] or region concerned shall be calculated on the basis of the percentage referred to in Article 47(1) of Regulation (EU) No 1307/2013 of the average of the [F89relevant authority's share of the] national ceilings for the years 2015 to 2019 F90... and the number of eligible hectares declared in accordance with Article 33 F91... of Regulation (EU) No 1307/2013 in 2015. [F92Where the relevant authority has decided] to implement the practices referred to in the first subparagraph of this paragraph already in 2015, [F93the relevant authority] may estimate the number of eligible hectares declared in 2015 on the basis of the declarations made in 2014 pursuant to Article 34(2) of Regulation (EC) No 73/2009.

2.By way of derogation from paragraph 1, [F94the relevant authority] deciding to apply the third subparagraph of Article 43(9) of Regulation (EU) No 1307/2013 may decide to apply the deduction referred to in paragraph 1 of this Article on an individual basis by an amount corresponding to one third of the average greening payment per hectare of the farmer concerned.

The average greening payment for the farmer shall be calculated on the basis of the average of the individual payment calculated in accordance with the third and fourth subparagraphs of Article 43(9) of Regulation (EU) No 1307/2013 for the years 2015 to 2019 and the number of eligible hectares declared by the farmer in accordance with Article 33 of that Regulation in 2015.

Textual Amendments

SECTION 2U.K.Crop diversification

Article 40U.K.Calculation of shares of different crops for crop diversification

1.For the purpose of the calculation of the shares of different crops as provided for in Article 44(1) of Regulation (EU) No 1307/2013, the period to be taken into account shall be the most relevant part of the cultivation period taking account of the traditional cultivation practices in the national context. [F95That period may be fixed at national, regional or the appropriate sub-regional level.]

[F96The relevant authority] shall inform farmers of that period in due time. Within the total arable land of the holding, each hectare shall be taken into account only once in one claim year for the purpose of the calculation of the shares of different crops.

2.For the calculation of the shares of different crops, the area covered by a crop may include landscape features that form part of the eligible area in accordance with Article 9 of Delegated Regulation (EU) No 640/2014.

3.On an area where mixed cropping is applied by growing simultaneously two or more crops in distinct rows, each crop shall be counted as distinct crop when it covers at least 25 % of that area. The area covered by the distinct crops shall be calculated by dividing the area where the mixed cropping is applied by the number of crops covering at least 25 % of that area, irrespective of the actual share of a crop on that area.

On areas where mixed cropping is applied by growing a main crop which is under-sown with a second crop, the area shall be considered as covered with only the main crop.

Areas on which a seed mixture is sown shall, irrespective of the specific crops included in the mix, be considered as covered with one single crop. Without prejudice to Article 44(4)(d) of Regulation (EU) No 1307/2013, such single crop shall be referred to as ‘mixed crop’. Where it can be established that the species included in different seed mixtures differ from each other, [F97the relevant authority] may recognise those different seed mixtures as distinct single crops, provided that those different seed mixtures are not used for the crop referred to in Article 44(4)(d) of Regulation (EU) No 1307/2013.

[F95Areas on which different crops are grown next to each other, where each single crop covers an area that is smaller than the minimum size set by [F97the relevant authority] referred to in the second subparagraph of Article 72(1) of Regulation (EU) No 1306/2013, may be considered by [F97the relevant authority] as covered with one ‘mixed crop’ as referred to in the third subparagraph of this paragraph.]

Textual Amendments

SECTION 3U.K.Permanent grassland

Article 41U.K.Framework for the designation of further environmentally sensitive permanent grassland areas outside of Natura 2000 areas

Environmentally sensitive permanent grassland areas outside the areas covered by Directive 92/43/EEC or Directive 2009/147/EC as referred to in the second subparagraph of Article 45(1) of Regulation (EU) No 1307/2013 shall be designated on the basis of one or more of the following criteria:

(a)

covering organic soils with a high percentage of organic carbon, such as peat land or wetlands;

(b)

hosting habitats listed in Annex I to Directive 92/43/EEC or protected under national legislation;

(c)

hosting plant species listed in Annex II to Directive 92/43/EEC or protected under national legislation;

(d)

being of significant importance for wild bird species listed in Annex I to Directive 2009/147/EC;

(e)

being of significant importance for wild animal species protected under Directive 92/43/EEC or protected under national legislation;

(f)

F98...

(g)

covering soils with a high risk of erosion;

(h)

being located in a sensitive area designated within the river basin management plans pursuant to Directive 2000/60/EC.

F99. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F98Art. 41(f) omitted (31.1.2020) by virtue of The Rules for Direct Payments to Farmers (Amendment) Regulations 2020 (S.I. 2020/91), regs. 1(2), 12(3)(a)

F99Words in Art. 41 omitted (31.1.2020) by virtue of The Rules for Direct Payments to Farmers (Amendment) Regulations 2020 (S.I. 2020/91), regs. 1(2), 12(3)(b)

Article 42U.K.Reconversion in case of non-respect of the obligation on environmentally sensitive permanent grassland areas

Without prejudice to Directive 2004/35/CE of the European Parliament and of the Council(1), where a farmer has converted or ploughed permanent grassland that is subject to the obligation referred to in the third subparagraph of Article 45(1) of Regulation (EU) No 1307/2013, the [F100relevant authority] concerned shall provide for the obligation to reconvert the area into permanent grassland and may, on a case by case basis, issue precise instructions to be respected by the farmer concerned on how to reverse the environmental damage caused in order to restore the environmentally sensitive status.

The farmer shall be informed without delay after the non-compliance has been established of the obligation to reconvert and of the date before which that obligation is to be complied with. That date shall not be later than the date for the submission of the single application for the following yearF101....

By way of derogation from Article 4(1)(h) of Regulation (EU) No 1307/2013, the land reconverted shall be considered as permanent grassland as of the first day of reconversion and be subject to the obligation referred to in the third subparagraph of Article 45(1) of Regulation (EU) No 1307/2013.

Textual Amendments

Article 43U.K.Calculation of the ratio of permanent grassland

1.Areas declared by farmers F102... as the units of a holding used for organic production in accordance with Article 11 of Council Regulation (EC) No 834/2007(2) shall not be included in the ratio of the areas of permanent grassland to the total agricultural area and the reference ratio referred to in Article 45(2) of Regulation (EU) No 1307/2013.

2.Areas declared by farmers in 2012 as land under permanent pasture that have been converted into land for other uses may be deducted from the calculation of the areas of permanent grassland in accordance with point (a) of the second subparagraph of Article 45(2) of Regulation (EU) No 1307/2013, up to the number of hectares of permanent pasture or permanent grassland that farmers have established after 2012 and declared in 2015 on national, regional, sub-regional level or holding level, provided that the existing rules on maintenance of permanent pasture as laid down in Article 6(2) of Regulation (EC) No 73/2009 and in Article 93(3) of Regulation (EU) No 1306/2013 were met.

When calculating the number of hectares of permanent pasture or permanent grassland established after 2012 as referred to in the first subparagraph, only hectares of permanent pasture or permanent grassland on an agricultural area declared in 2012, 2013 or 2014 in accordance with Article 34(2) of Regulation (EC) No 73/2009 shall be taken into account.

[F1033.[F104The relevant authority] shall adapt the reference ratio if they assess that there is a significant impact on the evolution of the ratio due to, in particular, a change in the area under organic production, F105... or when [F106the relevant authority] takes a decision in accordance with point (a), (b) or (c) of the third subparagraph of Article 4(2) of Regulation (EU) No 1307/2013. F107...]

Textual Amendments

Article 44U.K.Maintenance of the ratio of permanent grassland

[F1031.[F108The relevant authority] may provide for the individual obligation of farmers not to convert, including, where they apply point (a) of the third subparagraph of Article 4(2) of Regulation (EU) No 1307/2013, not to plough, areas of permanent grassland without prior individual authorisation. The farmers shall be informed of that obligation without delay and in any case before 15 November of the year in which the [F109relevant authority] concerned so provides. That obligation shall only apply to farmers who are subject to the obligations under Chapter 3 of Title III of Regulation (EU) No 1307/2013 with respect to areas of permanent grassland that are not subject to Article 45(1) of Regulation (EU) No 1307/2013.

The issuing of an authorisation may depend on the application of objective and non-discriminatory criteria, including environmental criteria. If the authorisation referred to in the first subparagraph is subject to the condition that another area of a corresponding number of hectares is to be established as permanent grassland or, where the [F110relevant authority] applies point (a) of the third subparagraph of Article 4(2) of Regulation (EU) No 1307/2013, to the condition that another or the same area is established as permanent grassland, that area shall, by way of derogation from Article 4(1)(h) of Regulation (EU) No 1307/2013, be considered as permanent grassland as of the first day after the conversion, including the ploughing. Such areas shall be used to grow grasses or other herbaceous forage at least for the five consecutive years following the date of conversion including the ploughing. F111...]

2.Where it is established that the ratio referred to in the first subparagraph of Article 45(2) of Regulation (EU) No 1307/2013 has decreased beyond 5 % compared to the reference ratio referred to in that Article, the [F112relevant authority] concerned shall provide for the obligation to reconvert areas into areas of permanent grassland and for rules to avoid new conversion of areas of permanent grassland.

[F113The relevant authority] shall determine the range of farmers subject to the reconversion obligation from farmers who:

(a)

are subject to the obligations under Chapter 3 of Title III of Regulation (EU) No 1307/2013 with respect to areas of permanent grassland that are not subject to Article 45(1) of that Regulation; and

(b)

based on the applications submitted in accordance with Article 72 of Regulation (EU) No 1306/2013 or Article 19 of Regulation (EC) No 73/2009 during the preceding two calendar years F114... have agricultural areas at their disposal which were converted from areas of permanent grassland or land under permanent pasture into areas for other uses.

Where the periods referred to in point (b) of the second subparagraph include calendar years before 2015, the reconversion obligation shall also apply to areas that were converted into areas for other uses from land under permanent pasture that were subject to the obligation referred to in Article 6(2) of Regulation (EC) No 73/2009 or Article 93(3) of Regulation (EU) No 1306/2013.

When determining which farmers shall reconvert areas into areas of permanent grassland, [F115the relevant authority] shall impose the obligation first on farmers who have at their disposal an area that was converted from an area of permanent grassland or land under permanent pasture into an area for other uses in breach of the authorisation requirement, if applicable, referred to in paragraph 1 of this Article or Article 4(1) of Regulation (EC) No 1122/2009. Such farmers shall reconvert the whole converted area.

3.If the application of the fourth subparagraph of paragraph 2 does not lead to an increase of the ratio referred to in the first subparagraph of Article 45(2) of Regulation (EU) No 1307/2013 above the threshold of 5 %, [F116the relevant authority] shall provide that farmers who have at their disposal an area that was converted from an area of permanent grassland or land under permanent pasture into an area for other uses during the periods referred to in point (b) of the second subparagraph of paragraph 2 of this Article, are also to reconvert a percentage of that converted area into areas of permanent grassland or to establish another area corresponding to that percentage as area of permanent grassland. That percentage shall be calculated on the basis of the area converted by the farmer during the periods referred to in point (b) of the second subparagraph of paragraph 2 of this Article and the area needed to increase the ratio referred to in Article 45(2) of Regulation (EU) No 1307/2013 above the threshold of 5 %.

[F117The relevant authority] may for the calculation of the percentage referred to in the first subparagraph, exclude from the area converted by the farmer those areas which became permanent grassland after 31 December 2015, provided that they carry out administrative cross-checks of the permanent grassland annually declared in the geo-spatial aid application by means of a spatial intersection with the area declared as permanent pasture in 2015 registered in the identification system for agricultural parcels and that those areas of permanent grassland were not established as a result of an obligation to reconvert or to establish an area of permanent grassland pursuant to paragraph 2 or this paragraph. However, where such exclusion does not allow to increase the ratio referred to in the first subparagraph of Article 45(2) of Regulation (EU) No 1307/2013 above the threshold of 5 %, [F118the relevant authority] shall not exclude those areas.

Areas of permanent grassland or land under permanent pasture that farmers created in the framework of commitments in accordance with Council Regulation (EC) No 1698/2005(3) and Regulation (EU) No 1305/2013 shall not be taken into account in the area converted by the farmer for the calculation of the percentage referred to in the first subparagraph.

The farmers shall be informed of the individual reconversion obligation and of the rules to avoid new conversion of permanent grassland, without delay and in any case before 31 December of the year in which the decrease beyond 5 % is established. The obligation to reconvert shall be complied with before the date for the submission of the single application for the following yearF119....

By way of derogation from Article 4(1)(h) of Regulation (EU) No 1307/2013, areas reconverted into or established as areas of permanent grassland shall be considered as permanent grassland as of the first day of the reconversion or establishment. Those areas shall be used to grow grasses or other herbaceous forage at least for the five consecutive years following the date of their conversion, or, if the [F120relevant authority] so decides, where farmers convert areas which were already used to grow grasses and other herbaceous forage into areas of permanent grassland, the remaining number of years needed in order to reach the five consecutive years.

Textual Amendments

SECTION 4U.K.Ecological focus area

Article 45U.K.Further criteria for the types of ecological focus area

1.For the qualification of the types of areas listed in the first subparagraph of Article 46(2) of Regulation (EU) No 1307/2013 as ecological focus areas, paragraphs 2 to 11 of this Article shall apply.

[F1032.On land lying fallow and land lying fallow for melliferous plants (pollen- and nectar-rich species) there shall be no agricultural production [F121during the period fixed by the relevant authority]. F122... As regards areas under land lying fallow for melliferous plants, [F123the relevant authority must set] up a list of pollen- and nectar-rich species to be used. Invasive alien plant species within the meaning of Article 3(2) of Regulation (EU) No 1143/2014 of the European Parliament and of the Council(4) must not appear on the list. Such areas shall not include areas under crops normally sown for harvesting. [F124The relevant authority may] establish further requirements. Such areas may include herbaceous species, provided that melliferous crops remain predominant. Without prejudice to the ‘no production’ requirement established in paragraph 10a, hives may be put on areas of land lying fallow for melliferous plants (pollen- and nectar-rich species).

By way of derogation from Article 4(1)(h) of Regulation (EU) No 1307/2013, land lying fallow and land lying fallow for melliferous plants (pollen- and nectar-rich species) for the purpose of fulfilling the ecological focus area for more than five years shall remain arable land.]

F1253.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F184.Landscape features shall be at the disposal of the farmer and may be those that are protected under GAEC 7, SMR 2 or SMR 3 as referred to in Annex II to Regulation (EU) No 1306/2013 and/or one or more of the following features:

(a)

hedges, wooded strips or trees in line;

(b)

isolated trees;

(c)

field copses including trees, bushes or stones;

(d)

ponds. Reservoirs made of concrete or plastic shall not be considered ecological focus areas;

(e)

ditches, including open watercourses for the purpose of irrigation or drainage. Channels with walls of concrete shall not be considered ecological focus areas.

(f)

traditional stone walls.

[F126Where the legislation applying in the constituent nation so provides,] the selection of landscape features [F127shall be limited] to those under GAEC 7, SMR 2 or SMR 3 as referred to in Annex II to Regulation (EU) No 1306/2013 and/or to one or more of points (a) to (f) of the first subparagraph.

For the hedges, wooded strips and trees in line as well as ditches referred to in points (a) and (e) of the first subparagraph, respectively, the area to be qualified as ecological focus area shall be calculated up to a maximum width of 10 metres.

For the field copses and ponds referred to in points (c) and (d) of the first subparagraph, respectively, the area to be qualified as ecological focus area shall be calculated up to a maximum size of 0,3 hectare.

For the purposes of point (d) of the first subparagraph, [F128the] minimum size for ponds [F129is as set by the relevant authority prior to exit day]. Where there is a strip with riparian vegetation along the water the corresponding area shall be included for the purpose of calculating the ecological focus area. [F130The relevant authority] may establish criteria to ensure that ponds are of natural value, taking into account the role that natural ponds play for the conservation of habitats and species.

For the purposes of point (f) of the first subparagraph, [F131the] minimum criteria based on national or regional specificities, including limits to the dimensions of height and width [F132is as established by the relevant authority prior to exit day].

5.Buffer strips and field margins may be any buffer strips and field margins including those buffer strips along water courses required under GAEC 1, SMR 1 or SMR 10 as referred to in Annex II to Regulation (EU) No 1306/2013 or field margins protected under GAEC 7, SMR 2 or SMR 3 as referred to in that Annex.

[F133The relevant authority] shall not limit the selection of buffer strips and field margins to those required under the cross compliance rules referred to in the first subparagraph.

[F134Nothing in this Article shall prevent the relevant authority from establishing, using any power the relevant authority has, the minimum width of buffer strips and field margins.] Along water courses, riparian vegetation shall be included for the purpose of calculating the ecological focus area. There shall be no agricultural production on buffer strips and field margins.

For buffer strips and field margins other than those required or protected under GAEC 1, GAEC 7, SMR 1, SMR 2, SMR 3 or SMR 10 as referred to in Annex II to Regulation (EU) No 1306/2013, the area to be qualified as ecological focus area shall be calculated up to a maximum width of 20 metres.]

[F955a.For the purposes of the second sentence of the second subparagraph of Article 46(2) of Regulation (EU) No 1307/2013, areas referred to in paragraphs 4 and 5 of this Article shall be considered as adjacent areas or features where they are adjacent to an ecological focus area directly adjacent to the arable land of the holding.]

6.Hectares of agro-forestry shall be arable land eligible for the basic payment scheme F135... referred to in Chapter 1 of Title III of Regulation (EU) No 1307/2013 and fulfilling the conditions for which support under Article 44 of Regulation (EC) No 1698/2005 or Article 23 of Regulation (EU) No 1305/2013 was or is granted.

[F187.F136...

The area to be qualified as ecological focus area shall be calculated up to a maximum width of 10 metres where [F137the relevant authority decides] to allow agricultural production and 20 metres where [F137the relevant authority decides] not to allow agricultural production.

8.[F138The species that may be used for areas with short rotation coppice with no use of mineral fertiliser or plant protection products or both, are those species which have been selected by the relevant authority prior to exit day, from the list established pursuant to Article 4(2)(c) of Regulation (EU) No 1307/2013, as being the most suitable from an ecological perspective.][F139The relevant authority must also apply any requirements established by them prior to exit day] as regards the use of mineral fertilisers and/or plant protection products in case [F140the relevant authority authorises] their use, keeping in mind the objective of ecological focus areas in particular to safeguard and improve biodiversity.

[F1418a.On areas with Miscanthus and Silphium perfoliatum [F142the relevant authority] shall ban the use of plant protection products except in the first year in which the two species are established by a farmer. [F143The relevant authority] shall ban or establish requirements as regards the use of mineral fertilisers on these areas, taking into account the objective of the ecological focus areas in particular to safeguard and improve biodiversity.]

9.Areas under catch crops or green cover shall include such areas established pursuant to the requirements under SMR 1 as referred to in Annex II to Regulation (EU) No 1306/2013 as well as other areas under catch crops or green cover, on the condition that they were established by sowing a mixture of crop species or by under-sowing grass or leguminous crops in the main crop.

F144... the list of mixtures of crop species to be used and F145... the period at national, regional, sub-regional or farm level during which areas under catch crops or green cover when established by sowing a mixture of crop species have to be in place [F146is as fixed by the relevant authority prior to exit day]. This period shall not be less than 8 weeks. [F147Nothing in this Article prevents the relevant authority from establishing, using any power the relevant authority has,] additional conditions notably with regard to production methods.

Areas under catch crops or green cover shall not include areas under winter crops which are sown in autumn normally for harvesting or for grazing. They shall also not include the areas covered with equivalent practices mentioned in points I.3 and 4 of Annex IX to Regulation (EU) No 1307/2013.

10.On areas with nitrogen-fixing crops, farmers shall grow those nitrogen-fixing crops which are included in a list established by the [F148relevant authority prior to exit day]. That list shall contain the nitrogen-fixing crops that the [F149relevant authority] considers as contributing to the objective of improving biodiversity and may include mixtures of nitrogen-fixing crops with other crops provided that nitrogen-fixing crop species are predominant. Those crops shall be present during the growing season. [F150Nothing in this Article prevents the relevant authority from establishing, using any power the relevant authority has,] additional conditions notably with regard to production method, in particular with a view to taking into account the need to meet the objectives of Directive 91/676/EEC and Directive 2000/60/EC, given the potential of nitrogen-fixing crops to increase the risk of nitrogen leaching in the autumn.

Areas with nitrogen-fixing crops shall not include the areas covered with equivalent practices mentioned in points I.3 and 4 of Annex IX to Regulation (EU) No 1307/2013.]

[F9510a.For the purposes of paragraphs 2, 5 and 7, ‘no agricultural production’ means no agricultural activity as defined in Article 4(1)(c)(i) of Regulation (EU) No 1307/2013, without prejudice to the requirements defined under GAEC 4 as referred to in Annex II to Regulation (EU) No 1306/2013. Actions aiming at establishing a green soil cover for biodiversity purposes, including sowing mixtures of wild flower seeds, shall be allowed.

[F151Nothing in this Article prevents the relevant authority, using any power the relevant authority has, from allowing] cutting or grazing on buffer strips and field margins as well as on strips of eligible hectares along forest edges without production, provided that the strip remains distinguishable from adjacent agricultural land.

10b.The use of plant protection products shall be prohibited on all areas referred to in paragraphs 2, 9 and 10 as well as on areas with agricultural production referred to in paragraph 7.

10c.On areas referred to in paragraph 9 established by under-sowing grass or leguminous crops in the main crop, this prohibition shall apply from the moment of the harvesting of the main crop for at least 8 weeks or until the sowing of the next main crop.]

11.A farmer can declare the same area or landscape feature only once in one claim year for the purpose of complying with the ecological focus area requirement.

Textual Amendments

Article 46U.K.Rules for the regional implementation of ecological focus areas

1.[F152Where the relevant authority opts] for the regional implementation provided for in Article 46(5) of Regulation (EU) No 1307/2013 [F153the relevant authority] shall define regions for the purposes of that Article. The regions to be defined shall consist of single and homogenous geographical areas with similar agricultural and environmental conditions. For this purpose, homogeneity shall refer to soil type, elevation, as well as to the presence of natural and semi-natural areas.

2.Within the defined regions, [F154the relevant authority] shall designate the areas where up to half of the percentage points of the ecological focus area requirement has to be implemented.

3.In respect to the defined areas [F155the relevant authority] shall provide for specific obligations for the participating farmers or groups of farmers. Those obligations shall ensure contiguous structures of adjacent ecological focus areas. The obligations for the participating farmers or groups of farmers shall include a requirement that each participating farmer is to have at least 50 % of the area subject to the obligation laid down in Article 46(1) of Regulation (EU) No 1307/2013 located on the land of their holdings within the region and in accordance with the second subparagraph of Article 46(2) of that Regulation.

4.The obligations for the participating farmers or groups of farmers shall ensure that the contiguous ecological focus areas referred to in paragraph 3 consist of one or more of the areas referred to in points (a), (c), (d) and (h) of the first subparagraph of Article 46(2) of Regulation (EU) No 1307/2013.

5.When designating areas and providing for obligations as referred to in paragraphs 2 and 3 respectively, [F156the relevant authority] shall take account, if applicable, of existing national or regional biodiversity and/or climate change mitigation and adaptation strategies, river basin management plans or needs identified with a view to ensure the ecological coherence of the Natura 2000 network referred to in Article 10 of Directive 92/43/EEC or to contribute to the implementation of the Green Infrastructure Strategy.

6.Prior to providing for obligations for farmers, [F157the relevant authority] shall consult the farmers or groups of farmers concerned and other relevant stakeholders. Following such consultation, [F157the relevant authority] shall establish a finalised detailed plan for the regional implementation and shall inform the stakeholders who participated in the consultation and the farmers or groups of farmers concerned of that plan, including the designation of areas and the obligations for the participating farmers or groups of farmers and, in particular, the precise percentage that each individual farmer has to implement on his own holding. [F158The relevant authority] shall transmit that information to the farmer at the latest by 30 June of the year preceding the year in which the regional implementation will apply or for the first year of application of this Regulation in due time to allow the farmer to make his application accordingly.

Without prejudice to payments to farmers referred to in Article 43(9) of Regulation (EU) No 1307/2013, [F157the relevant authority] shall ensure that arrangements are laid down with regard to financial compensations between farmers and as regards the administrative penalties in case of non-compliance on the contiguous ecological focus areas.

Textual Amendments

Article 47U.K.Rules for the collective implementation and the criteria to be met by holdings to be considered to be in close proximity

1.[F159Where the relevant authority decides] to allow a collective implementation as provided for in Article 46(6) of Regulation (EU) No 1307/2013, [F160the relevant authority] shall define the criteria to be met by holdings considered to be in close proximity using any of the following:

(a)

farmers of whom 80 % of the holding are in the same municipality;

(b)

farmers of whom 80 % of the holding are in an area with a radius of a number of kilometres to be set by [F161the relevant authority] with a maximum of 15 kilometres.

2.[F162Where the relevant authority opts] for designating the areas on which collective implementation is possible and [F163opts] for imposing obligations upon participating farmers or groups of farmers, [F164the relevant authority] shall take account of existing national or regional biodiversity and/or climate change mitigation and adaptation strategies, river basin management plans or needs identified with a view to ensure the ecological coherence of the Natura 2000 network referred to in Article 10 of Directive 92/43/EEC or to contribute to the enhancement of green infrastructure.

3.The obligations for the participating farmers or groups of farmers referred to in paragraph 2 shall include the condition that the contiguous ecological focus areas will consist of one or more of the areas referred to in points (a), (c), (d) and (h) of the second subparagraph of Article 46(2) of Regulation (EU) No 1307/2013.

4.Farmers participating in the collective implementation shall conclude a written agreement that includes details on the internal arrangements of financial compensation and as regards the administrative penalties in case of non-compliance on the common ecological focus area.]

Textual Amendments

F165Article 48U.K.Determination of the ratio of forest to agricultural land

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Textual Amendments

Textual Amendments

CHAPTER 4U.K. PAYMENT FOR YOUNG FARMERS

Article 49U.K.Access of legal persons to the payment for young farmers

1.The annual payment for young farmers referred to in Article 50(1) of Regulation (EU) No 1307/2013 shall be granted to a legal person irrespective of its legal form if the following conditions are fulfilled:

(a)

the legal person is entitled to a payment under the basic payment scheme F166... referred to in Chapter 1 of Title III of Regulation (EU) No 1307/2013 and has activated payment entitlements or declared eligible hectares, as referred to in Article 50(4) of that Regulation;

(b)

[F167a young farmer within the meaning of Article 50(2) of Regulation (EU) No 1307/2013 exercises effective and long-term control over the legal person in terms of decisions related to management, benefits and financial risks in each year in respect of which the legal person applies for the payment under the young farmers scheme. Where several natural persons, including person(s) who are not young farmer(s), participate in the capital or management of the legal person, the young farmer(s) shall in each year in respect of which the legal person applies for the payment under the young farmers scheme be capable of exercising such effective and long-term control either solely or jointly together with other farmersF168...;]

(c)

at least one of the young farmers fulfilling the condition set out in point (b) meets the eligibility criteria established by [F169the relevant authority] pursuant to Article 50(3) of Regulation (EU) No 1307/2013, if any, unless [F170the relevant authority has] decided that those criteria shall apply to all such young farmers.

Where a legal person is solely or jointly controlled by another legal person, the conditions set out in point (b) of the first subparagraph shall apply to any natural person having control over that other legal person.

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2.The payment referred to in Article 50(1) of Regulation (EU) No 1307/2013 shall no longer be granted if all young farmers complying with the criteria set out in point (b) of the first subparagraph of paragraph 1 and, where appropriate, in point (c) of the first subparagraph of paragraph 1 have ceased control over the legal person.

3.For the purposes of this Article:

(a)

any reference in Article 50(4) [F172, (5), (6)[F173, (8)] and (9)] of Regulation (EU) No 1307/2013 to ‘farmer’ shall be construed as a reference to the legal person referred to in this Article;

(b)

the reference to the first submission of an application to the basic payment scheme F174... referred to in Article 50(2)(a) of Regulation (EU) No 1307/2013 shall be construed as a reference to the legal person’s first application for the payment under the young farmers scheme;

(c)

without prejudice to paragraph 4 of this Article, the reference in the second sentence of Article 50(5) of Regulation (EU) No 1307/2013 to ‘setting up’ shall be construed as a reference to the setting up by the young farmers having control over the legal person in accordance with point (b) of the first subparagraph of paragraph 1 of this Article.

[F95A young farmer who exercises effective and long-term control over the legal person within the meaning of point (b) of the first subparagraph of paragraph 1 of this Article shall, for the purposes of Article 50(2)(b) of Regulation (EU) No 1307/2013, be no more than 40 years of age in the year of the first submission of an application under the basic payment scheme or the single area payment scheme by that legal person with a young farmer in control.]

4.Where several young farmers as referred to in point (b) of the first subparagraph of paragraph 1 have acquired control over the legal person at different moments of time, the earliest acquisition of control shall be considered as the time of ‘setting up’ referred to in the second sentence of Article 50(5) of Regulation (EU) No 1307/2013.

Textual Amendments

Article 50U.K.Access of a group of natural persons to the payment for young farmers

Article 49 shall apply mutatis mutandis in respect of a group of natural persons as referred to in Article 4(1)(a) of Regulation (EU) No 1307/2013 for which the requirements laid down in Article 49(1)(a) of this Regulation are met at the level of the group.

CHAPTER 5U.K. COUPLED SUPPORT

SECTION 1 U.K. Voluntary coupled support

Article 51U.K.Definitions

For the purposes of this Section, ‘coupled support measures’ means measures implementing the voluntary coupled support referred to in Article 52(1) of Regulation (EU) No 1307/2013.

Article 52U.K.General principles

1.The regions referred to in Article 52(3) of Regulation (EU) No 1307/2013 [F175are the regions defined by the relevant authority prior to exit day,] in accordance with objective and non-discriminatory criteria such as the agronomic and socioeconomic characteristics and the regional agricultural potential, or the institutional or administrative structure. Such regions may differ from regions established under other support schemes provided for in Regulation (EU) No 1307/2013.

2.When defining the specific types of farming or specific agricultural sectors referred to in Article 52(3) of Regulation (EU) No 1307/2013, [F176the relevant authority] shall take into account in particular the relevant production structures and conditions of the region or sector concerned.

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Textual Amendments

Article 53U.K.Conditions for granting the support

1.[F178The eligibility criteria for coupled support measures means the criteria defined by the relevant authority] with the framework set out in Regulation (EU) No 1307/2013 and the conditions laid down in this Regulation.

2.Areas and yields and number of animals referred to in Article 52(6) of Regulation (EU) No 1307/2013 shall be [F179jointly agreed by the relevant authorities for each constituent nation] at regional or sector level. They shall reflect the maximum yields, area cultivated or number of animals reached in the targeted region or sector in at least one year in the period of five years preceding the year of the decision referred to in Article 53(1) of that Regulation.

[F18The annual payment shall be expressed as the per unit amount of support. It may be either one of the following amounts, or, when the area or the number of animals eligible for the support does not exceed the area or the number of animals fixed as referred to in the first subparagraph of this paragraph, an amount between them:

(a)

the ratio between the amount fixed for the financing of the measure as notified according to point (3)(i) of Annex I to this Regulation [F180as it had effect immediately before exit day] and the area or the number of animals eligible for the support in the year in question;

(b)

the ratio between the amount fixed for the financing of the measure as notified according to point (3)(i) of Annex I to this Regulation [F181as it had effect immediately before exit day] and the area or the number of animals fixed as referred to in the first subparagraph of this paragraph.]

[F19Without prejudice to Article 52(6) of Regulation (EU) No 1307/2013, for the per unit amount of support referred to in the second subparagraph of this paragraph, [F182the relevant authority may decide, prior to exit day,] to apply modulated per unit amounts in respect of certain categories of farmers or at farm level in order to take into account economies of scale resulting from the size of the production structures in the targeted specific type of farming or specific agricultural sector, or, if the measure targets a region or an entire sector, in the region or sector concerned. F183...]

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4.Where the coupled support measure concerns bovine animals and/or sheep and goats, F185... the requirements to identify and register animals provided for in Regulation (EC) No 1760/2000 of the European Parliament and of the Council(5) or Council Regulation (EC) No 21/2004(6) respectively [F186shall apply].

F187...

[F188By 15 September 2015, Member States shall notify the Commission of the dates referred to in the second subparagraph.]

5.[F189The relevant authority] may not grant area-related coupled support for areas that are not eligible areas within the meaning of Article 32(2), (3) and (4) of Regulation (EU) No 1307/2013. F190...

Textual Amendments

[F191Article 53aU.K. Transfer of funds between measures

1.Without prejudice to the requirements set out in Chapter I of Title IV of Regulation (EU) No 1307/2013, [F192the relevant authority may decide, if jointly agreed by the relevant authorities for each constituent nation, to use the amounts fixed in accordance with Article 53 of Regulation (EU) No 1307/2013] for the purpose of financing one or several other support measures under Chapter I of Title IV of [F193that Regulation] in respect of the same claim year.

A transfer of funds between support measures shall not result in a support measure notified to the Commission [F194before exit day] pursuant to Article 54 of Regulation (EU) No 1307/2013 [F195as it existed immediately before exit day] and Article 67(1) and (2) of this Regulation [F196as it existed immediately before exit day] becoming void.

[F192.Where the area or the number of animals eligible for support under a voluntary coupled support measure in the claim year concerned equals to or exceeds the area or the number of animals referred to in Article 52(6) of Regulation (EU) No 1307/2013 as notified in accordance with point (3)(j) of Annex I to this Regulation [F197as it had effect immediately before exit day], the support measure shall not benefit from a transfer of funds from any other support measure(s).

3.Where the area or the number of animals eligible for support under a voluntary coupled support measure in the claim year concerned is lower compared to the area or the number of animals referred to in Article 52(6) of Regulation (EU) No 1307/2013 as notified in accordance with point (3)(j) of Annex I to this Regulation [F198as it had effect immediately before exit day], a transfer of funds shall not result in the per unit amount becoming lower than the ratio between the amount fixed for the financing as notified in accordance with point (3)(i) of that Annex [F199as it had effect immediately before exit day] and the area or the number of animals referred to in Article 52(6) of Regulation (EU) No 1307/2013.]

[F2004.Where [F201the relevant authority grants] coupled support for protein crops while using the possibility provided for in Article 53(3) of Regulation (EU) No 1307/2013, a transfer of funds shall not result in the support available for protein crops to be less than 2 % of the annual national ceiling set out in Annex II to that Regulation.]

5.A decision to transfer funds between support measures shall be taken before the date of the first payment or payment of advances to farmers in respect of the voluntary coupled support. However, in respect of transfers from and to measures for which no payment has been made yet, such decision may be taken after that date, but no later than:

(a)

the last day of the month in which the first payment or payment of advances to farmers in respect of the voluntary coupled support is made;

(b)

30 November where such first payment or payment of advances is made in the period from 16 to 31 October.

6.The [F202relevant authority] intending to take a decision to transfer funds between support measures shall inform farmers of a possible transfer before the date of opening of the application period.]

Textual Amendments

Article 54U.K.Consistency and cumulation of support

1.For the purposes of Article 52(8) of Regulation (EU) No 1307/2013, measures provided for in Regulation (EU) No 1305/2013 and Regulation (EU) No 1308/2013 of the European Parliament and of the Council(7) shall be considered as ‘other F203... measures and policies’.

2.[F204The relevant authority] shall ensure consistency between:

(a)

coupled support measures and measures implemented under other F205... measures and policies;

(b)

different coupled support measures;

(c)

coupled support measures and measures funded by state aids.

[F204The relevant authority] shall ensure that coupled support measures do not interfere with the proper functioning of other measures mentioned in the first subparagraph.

[F1673.Where support under a certain coupled support measure may also be granted under another coupled support measure, or under a measure implemented under other F206... measures and policies, [F207the relevant authority] shall ensure that the farmer concerned may receive support aiming at the objective referred to in Article 52(5) of Regulation (EU) No 1307/2013 under only one such measure per sector, region, specific type of farming or specific agricultural sector that is targeted in accordance with Article 52(3) of that Regulation.]

Textual Amendments

F208Article 55U.K.Criteria for approval by the Commission

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Textual Amendments

SECTION 2U.K.Crop specific payment for cotton

F208Article 56U.K.Authorisation of agricultural land for cotton production

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Textual Amendments

F208Article 57U.K.Authorisation of varieties for sowing

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Textual Amendments

F208Article 58U.K.Eligibility requirements

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Textual Amendments

F208Article 59U.K.Agronomic practices

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Textual Amendments

F208Article 60U.K.Approval of inter-branch organisations

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Textual Amendments

F208Article 61U.K.Producers’ obligations

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Textual Amendments

CHAPTER 6U.K.NOTIFICATIONS

Article 62U.K.Notifications relating to definitions and related provisions

Member States shall notify the Commission of any decisions taken in accordance with Article 4(2) of Regulation (EU) No 1307/2013 by 31 January 2015. Such notification shall include the details of such decisions, their justification and the objective criteria on the basis of which those decisions have been made.

Article 63U.K.Notifications relating to the reduction coefficient according to Article 32(5) of Regulation (EU) No 1307/2013

Member States shall notify the Commission of any decisions pursuant to Article 8 by 31 January 2015. Such a notification shall include the details of such decisions, their justification and the objective criteria on the basis of which those decisions have been made.

F209Article 64U.K.Notifications relating to the basic payment

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Textual Amendments

F209Article 65U.K.Notifications relating to greening

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Textual Amendments

F209Article 66U.K.Notifications relating to the payment for young farmers

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Textual Amendments

F209Article 67U.K.Notifications relating to the voluntary coupled support

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Textual Amendments

F209Article 68U.K.Notifications concerning the minimum requirements for receiving direct payments

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Textual Amendments

F209Article 69U.K.Notifications concerning the redistributive payment

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Textual Amendments

Article 70U.K.Notifications concerning the payment for areas with natural constraints

Where a Member State decides to grant the payment for areas with natural constraints pursuant to Chapter 4 of Title III of Regulation (EU) No 1307/2013 it shall notify the Commission by 1 August 2014 of any decision taken in accordance with Article 48 of Regulation (EU) No 1307/2013. Such a notification shall comprise the details of such decision including, where appropriate, information on any restriction of the payments to certain areas pursuant to Article 48(2) of Regulation (EU) No 1307/2013, on any application of the maximum limits referred to in Article 48(4) of that Regulation and on any regional application pursuant to Article 48(5) of that Regulation.

F210Article 71U.K.Notifications concerning the small farmers scheme

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Textual Amendments

Article 72U.K.Application of Article 8(1), 41(4) or 52(6) of Regulation (EU) No 1307/2013 to members of legal persons or groups

Where a Member State decides to apply Article 8(4), 41(8) or 52(7) of Regulation (EU) No 1307/2013, it shall notify the Commission by 1 August 2014 of the details of those decisions.

F211Article 73U.K.Linear reductions of the payments

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Textual Amendments

F211Article 74U.K.Request for information on measures taken by the Member States

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Textual Amendments

F211Article 75U.K.Reports

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Textual Amendments

F211Article 76U.K.Notification of decision resulting from a review

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Textual Amendments

CHAPTER 7U.K.AMENDMENT, REPEAL AND ENTRY INTO FORCE

F211Article 77U.K.Amendment of Regulation (EU) No 1307/2013

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Textual Amendments

Article 78U.K.Repeal

Regulations (EC) No 1120/2009 and (EC) No 1121/2009 are repealed.

However, they shall continue to apply with respect to aid applications relating to calendar years before calendar year 2015.

F212Article 79U.K.Entry into force and application

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Textual Amendments

This Regulation shall be binding in its entirety and directly applicable in all Member States.

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