4.—(1) The Direct Payments Regulation is amended as follows.
(2) In Article 1, omit point (b)(iv).
(3) In Article 22, in paragraph 5, after “as a result of”, insert “the removal of the payment for agricultural practices beneficial for the climate and the environment or”.
(4) After Article 32, insert—
1. Farmers shall not convert or plough permanent grassland situated in areas which, prior to exit day, have been designated by the relevant authority as permanent grasslands which are environmentally sensitive.
2. Without prejudice to Directive 2004/35/CE of the European Parliament and of the Council where a farmer has converted or ploughed permanent grassland that is subject to the obligation referred to in paragraph 1 the relevant authority 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.
3. 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 year.
4. 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 paragraph 1.”
(5) In Title III, omit Chapter 3.
(6) In Annex I, in the table, omit the entry relating to “Title III, Chapter 3 of this Regulation” across all three columns.
(7) Omit Annex IX.
(8) Omit Annex X.