3.5 97 Official Journal of the European Communities No L 115/13 COMMISSION REGULATION (EC) No 805/97 of 2 May 1997 laying down detailed rules for compensation relating to appreciable revaluations THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EC) No 724/97 of 22 April 1997 determining measures and compensation relating to appreciable revaluations that affect farm incomes (*), and in particular Article 7 thereof, Whereas Regulation (EC) No 724/97 allows Member States to grant compensation to farmers who have suffered the effects of an appreciable revaluation; whereas part of that compensation relates specifically to certain actual reductions in the aid referred to in Article 7 of Council Regulation (EEC) No 3813/92 of 28 December 1992 on the unit of account and the conversion rates to be applied for the purposes of the common agricultural policy (?), as last amended by Regulation (EC) No 150/95 (*); whereas Regulation (EC) No 724/97 lays down certain conditions for granting compensatory aid and its staging over time, and indicates the method for determining the maximum amount that may be allocated by a Member State; whereas the compensation concerned is financed, entirely or in part, by the Community budget; Whereas it is necessary to define the operative event which determines the agricultural conversion rate used to convert amounts expressed in ecus into the national currencies of the Member States; whereas, to facilitate financial management, the payment of more than one annual compensation tranche in the same budget year should be avoided; whereas, to take account of the Euro- pean Community’s international commitments, and in the interests of administrative transparency, the proced- ures to be followed by Member States wishing to grant compensation should be laid down; Whereas, in order to fulfil its purpose, the compensation must be granted directly to the beneficiaries, in principle farmers, within a fixed period and for amounts not ex- ceeding the income losses concerned; whereas, in par- ticular, the part of the compensation granted to offset reductions in the aids referred to in Article 7 of Regula- tion (EEC) No 3813/92 should supplement the amounts allocated for those aids; whereas, however, to avoid admin- istrative complications arising from the grant of small amounts to beneficiaries, simplified procedures may be used in certain cases; ) No L 108, 25. 4. 1997, p. 9. () O] No L 387, 31. 12. 1992, p. 1. (’) OJ No L 22, 31. 1. 1995, p. 1. Whereas the measures provided for in this Regulation are in accordance with the opinions of the Management Committees concerned, HAS ADOPTED THIS REGULATION: Article 1 1. This Regulation lays down the detailed rules for granting compensatory aid under Regulation (EC) No 724/97 without prejudice to the methodology and criteria to be used for examination under Article 8 of that Regula- tion of the effects on agricultural income of reductions in the agricultural conversion rates. 2. Each tranche of compensatory aid shall consist of a principal amount and, where the conversion rate referred to in the first subparagraph of Article 3 (1) of Regulation (EC) No 724/97 or in Article 3 of Regulation (EC) No 1527/95 () or (EC) No 2990/95 (%) is reduced during the period 1 January 1997 to 30 April 1998, one or more supplementary amounts. The maximum levels of the abovementioned amounts shall be determined in accordance with Article 4 of Regu- lation (EC) No 724/97 and, in particular, with the first subparagraph as far as the principal amount is concerned or, with the second subparagraph as far as supplementary amounts are concerned, of its paragraph 2. Article 2 1.  Without prejudice to Article 4: (a) Member States may grant compensatory aid only by means of payments to beneficiaries and without conditions relating to its use, and (b) compensatory aid may be granted only to agricultural holdings, the definition of an agricultural holding being established by the Member State concerned on the basis of objective criteria. The supplementary amounts of compensatory aid shall be granted on the basis of the aid concerned, as referred to in Article 7 of Regulation (EEC) No 3813/92 and allocated for the twelve-month period preceding the respective application of the reduced agricultural conversion rate. () OJ No L 148, 30. 6. 1995, p. 1. () OJ No L 312, 23. 12. 1995, p. 7.