No L 305/60 Official Journal of the European Communities 19. 12. 95 COMMISSION REGULATION (EC) No 2921/95 of 18 December 1995 laying down detailed rules for compensation for reductions in certain agricultural conversion rates THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EC) No 1527/95 of 29 June 1995 regulating compensation for reductions in the agricultural conversion rates of certain national currencies (*), and in particular Article 2 (4) thereof, Whereas Regulation (EC) No 1527/95 allows Member States to make payments to farmers to compensate for reductions in agricultural conversion rates of certain national currencies; whereas that Regulation also lays down certain conditions concerning the grant of aid, upper limits on such payments by Member States, their development over time and provided for them to be financed either in total or in part by the Community budget ; Whereas to take account of the Communities interna- tional commitments and for reasons of sound manage- ment it is necessary to lay down certain, in particular, procedural arrangements to be followed by Member States intending to apply compensation payments ; Whereas to fulfil the compensation objective it is neces- sary for Member States to grant aid within set time limits, as a general rule directly to beneficiaries, in principle farmers, at rates which do not exceed their imputed income loss and without conditions relating to its use; whereas, however, to avoid the burdens of systems invol- ving the grant of small amounts to beneficiaries, simpli- fied implementing provisions may be used when the average level of aid is below a given threshold ; Whereas during the period when compensatory aid can be granted an increase may occur in the agricultural conversion rate of the national currency of the Member State concerned; whereas in such a case it would be necessary to examine whether any unpaid annual aid amounts should be granted; Whereas it is necessary to define the operating event which determines the agricultural conversion rate to convert amounts fixed in ecu in Article 2 (2) of Regula- tion (EC) No 1527/95 into national currencies ; Whereas the relevant management committees have not delivered opinions within the time limits set by their chairmen, () OJ No L 148, 30. 6. 1995, p. 1. HAS ADOPTED THIS REGULATION : Article 1 This Regulation defines the implementing rules for applying compensatory aid pursuant to Regulation (EC) No 1527/95 without prejudice to the methodology and criteria to be used for the examination under Article 4 of that Regulation of the effects on incomes in agriculture of the reductions in agricultural conversion rates. Article 2 1. Without prejudice to the provisions of Article 4: (a) Member States may grant aid only through annual payments to beneficiaries without conditions relating to its use; and (b) aid may be granted only to agricultural holdings, the definition of such holdings being established by the Member State concerned on the basis of objective criteria. 2. The amounts in ecu set in Article 2 (2) of Regulation (EC) No 1527/95 shall be converted into national currency with the agricultural conversion rate valid imme- diately preceding the first reduction in this rate covered by that Regulation. Article 3 1.  The amount of aid granted to each beneficiary must be linked for farm size for a period prior to 1 July 1995. 2. For the purpose of assessing farm size account shall be taken only of production for which the reduction in agricultural conversion rate has had a significant impact. The distribution of the total aid amount which may be granted shall reflect at a macro economic level the proportional share of the loss of all sectors where this significant impact has occurred. 3. Member States may set minimum farm sizes only to the extent necessary to facilitate administration of the aid. 4. In all cases aid must be in conformity with the international commitments of the Community.