Council Regulation (EC) No 1259/1999 of 17 May 1999 establishing common rules for direct support schemes under the common agricultural policy
26. 6. 1999 EN Official Journal of the European Communities L 160/113 COUNCIL REGULATION (EC) No 1259/1999 of 17 May 1999 establishing common rules for direct support schemes under the common agricultural policy THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 37 thereof, Having regard Commission (1), to the proposal from the Having regard to the opinion of Parliament (2), the European Having regard to the opinion of the Economic and Social Committee (3), Having regard to the opinion of the Committee of the Regions (4), Having regard to the opinion of Auditors (5), the Court of (1) Whereas for direct payments under the various income common schemes agricultural policy some common conditions should be established; support the in (2) Whereas provided payments under Community support schemes should be made by the competent national authorities in full to beneficiaries subject to any reductions explicitly provided for in this Regulation; for the into (3) Whereas, with a view to better integrating the common market environment organisations, Member should apply appropriate environmental measures in relation to agricultural land and agricultural production subject to direct payments; whereas Member States should decide on the consequences in the case of environmental requirements not being States (1) OJ C 170, 4. 6. 1998, p. 93. (2) Opinion delivered on 6 May 1999 (not yet published in the Official Journal). (3) OJ C 407, 28. 12. 1998, p. 208. (4) OJ C 93, 6. 4. 1999, p. 1. (5) OJ C 401, 22. 12. 1998, p. 3. should be observed; whereas Member States even cancel benefits enabled to reduce or accruing from support schemes where such environmental requirements are not respected; should be taken by whereas Member States notwithstanding the possibility of granting agri- environmental commitments; aid in return for optional such measures (4) Whereas, of overall holdings prosperity in order to stabilise the employment situation in agriculture and to take into account and the Community support to those holdings and thus to contribute to a fair standard of living for the agricultural community, including all persons engaged in agriculture, Member States should be authorised to reduce direct payments to farmers in cases where the labour force used on their holding falls short of limits to be determined and/or where the overall prosperity of holdings and/or the total amounts of payments rise above limits to be decided by Member States; whereas in order to maintain in particular agricultural productivity, such reductions should, however, not total amount of payments; exceed 20 % of the rules reductions detailed of for (5) Whereas should be determined by Member payments States on the basis of objective criteria; whereas enabled to use should be Member States amounts made from payment available reductions for certain additional measures in the support framework provided for under Council Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations (6); development rural of (6) Whereas common support schemes have to be adapted to market developments, if necessary within short time limits; whereas beneficiaries cannot, therefore, rely on support conditions remaining unchanged and should be prepared for a possible review of schemes in the light of market developments; (6) See page 80 of this Official Journal. L 160/114 EN Official Journal of the European Communities 26. 6. 1999 (7) Whereas the support schemes under the common agricultural policy provide for direct income support in particular with a view to ensuring a fair the agricultural living for standard of this objective is closely community; whereas related to the maintenance of rural areas; whereas, in order to avoid misallocations of Community funds, no support payments should be made to those farmers is established that they have artificially created the conditions required for obtaining such payments with a view to obtaining an advantage contrary to the objectives of support schemes; for whom it land used or the production concerned and which reflect the potential environmental effects. These measures may include: — support in commitments, return for agri-environmental — general mandatory environmental requirements, — specific environmental requirements constituting a condition for direct payments. (8) Whereas, in view of the significant budgetary implications of direct payment support and in impact, order to a Community schemes proper evaluation, appraise should be subject better their to 2. Member States shall decide on the penalties that are appropriate and proportionate to the seriousness of the ecological consequences of not observing the environmental requirements referred to in paragraph 1. They may provide for a reduction or, where appropriate, a cancellation of the benefits accruing from the such schemes environmental requirements are not respected. concerned support if HAS ADOPTED THIS REGULATION: Article 1 Scope Article 4 Modulation This Regulation shall apply to payments granted directly to farmers under support schemes in the framework of the common agricultural policy which are financed in full or in part by the Guarantee’ those provided for section of under Regulation (EC) No 1257/1999. the EAGGF, except These support schemes are listed in the Annex. the 1. Member States may decide amounts of payments which would, but this paragraph, be granted to farmers in respect of a given calendar year in cases where: to reduce for — the labour force used on their holdings during that calendar year, expressed in annual work units, falls short of limits to be determined by the Member States, and/or Article 2 Full payment — the overall prosperity of their holdings during that calendar year, expressed in the form of standard average gross margin situation of either a given region or a smaller geographic entity, rises above limits to be decided by Member States, and/or corresponding the to Payments under support schemes shall be made in full to the beneficiaries. Article 3 Environmental protection requirements — the total amounts of payments granted under support schemes in respect of a calendar year exceed limits to be decided by Member States. Annual work unit’ shall mean the national or regional average annual working time of adult full-time farm workers employed throughout a calendar year. 1. Where agricultural activity within the scope of this Regulation is concerned, Member States shall take the environmental measures to be appropriate in view of the situation of the agricultural they consider Standard gross margin’ shall mean the difference between standard production value and the standard amount for certain specific costs. 26. 6. 1999 EN Official Journal of the European Communities L 160/115 2. The reduction of support to a farmer in respect of a given calendar year, resulting from the application of the measures referred to in paragraph 1, shall not exceed 20 % of the total amount of payments which would, but for paragraph 1, be granted to the farmer in respect of the calendar year concerned. Article 5 Common provision 1. Member States shall apply the measures referred to in Articles 3 and 4 in such a way as to ensure equal treatment between farmers and to avoid market and competition distortions. 2. The difference between the amounts which would, but for Articles 3 and 4, be paid to farmers in a Member State in respect of a calendar year and the amounts calculated after application of those Articles , shall be available to the Member State concerned within time limits to be fixed under the procedure referred to in Article 11 as additional Community support for measures under Articles 10 to 12 (early retirement), 13 to 21 (less-favoured areas and areas with environmental restrictions), 22 to 24 (agri- environment) and 31 (afforestation) of Regulation (EC) No 1257/1999. designed to appraise their impact with respect of their objectives and to analyse their effects on the relevant markets. Article 9 Transmission of information to the Commission Member States shall inform the Commission in detail on the measures taken to implement this Regulation. Article 10 Definitions For the purposes of this Regulation: (a) farmer’ shall mean an individual agricultural producer, whether a natural or legal person or a group of natural or legal persons, whatever legal status is granted the group and its members by national law, whose holding is within Community territory, Article 6 Review (b) holding’ shall mean all the production units managed by a farmer situated within the same Member State's territory, Support schemes shall be applied without prejudice to possible review at any moment in the light of market developments. (c) payments to be granted in respect of a calendar year shall include payments to be granted in respect of other periods starting in that calendar year. Article 7 Restriction of payments Nothwithstanding any specific provisions in individual support schemes, no payment shall be made in favour of beneficiaries for whom it is established that they artificially for obtaining such payments with a view to obtaining an advantage contrary to the objectives of that support scheme. conditions required created the Article 8 Evaluation In order to gauge their effectiveness, payments under to evaluation support shall be schemes subject Article 11 Detailed rules In accordance with the procedure referred to in Article 9 of Council Regulation (EC) No 1251/1999 of 17 May 1999 establishing a support system for producers of certain arable crops (1), the procedure referred to in Article 43 of Council Regulation (EC) No 1254/1999 of 17 May 1999 on the common organisation of the market in beef and veal (2) or, as appropriate, the corresponding Articles in the other Regulations on the common organisation of agricultural markets, the Commission shall adopt: (1) See page 1 of this Official Journal. (2) See page 21 of this Official Journal. L 160/116 EN Official Journal of the European Communities 26. 6. 1999 — where detailed appropriate, the application of in particular, the measures necessary to avoid Articles 3 and 4 being circumvented, as well as those concerning Article 7 and this Regulation including, rules for — amendments to the Annex as may become necessary taking into account the criteria set out in Article 1. Article 12 Entry into force This Regulation shall enter into force on the day of its publication in the Official Journal of the European Communities. It shall apply as from 1 January 2000. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, 17 May 1999. For the Council The President K. -H. FUNKE 26. 6. 1999 EN Official Journal of the European Communities L 160/117 LIST OF SUPPORT SCHEMES FULFILLING THE CRITERIA SET OUT IN ARTICLE 1 ANNEX Sector Legal base Notes Arable crops Articles 2 and 5 Regulation (EC) No 1251/1999 set-aside Area payments payments and including durum wheat supplement and special aid including Potato starch Cereals Olive oil Grain legumes Flax Hemp Silkworms Bananas Dried grapes Tobacco Seeds Hops Rice Article 8(2) Regulation (EEC) No 1766/92 Payment Article 3 Regulation (EEC) No 3653/90 (as read together with Regulation (EEC) No 738/93) Transitional governing measures common organisation of the market for cereals in Portugal Article 5(1) Regulation 136/66/EEC Article 1 Regulation (EC) No 1577/96 Article 4 Regulation (EEC) No 1308/70 Article 4 Regulation (EEC) No 1308/70 Article 2 Regulation (EEC) No 845/72 Article 12 Regulation (EEC) No 404/93 Article 7(1) Regulation (EC) No 2201/96 Article 3 Regulation (EEC) No 2075/92 Article 3 Regulation (EEC) No 2358/71 Article 12 Regulation (EEC) No 1696/71 Production aid Area aid Area aid (the portion paid to farmers) Area aid Aid to encourage rearing Production aid Area aid Production aid Production aid Area aid Regulation (EC) No 1098/98 Payments for temporary resting only Article 6 Regulation (EC) No 3072/95 Area aid Beef and veal Articles 4, 5, 6 and 10, 11, 13 Regulation (EC) No 1254/1999 premium, suckler deseasonalisation Special premium, cow premium (including when paid for heifers and national including suckler co- premium, financed), extensification additional payments cow premium when additional payment, slaughter the Milk and dairy products Sheep and goats Agri-money Articles 16 and 17 Regulation (EC) No 1256/1999 Dairy payments premium and additional Article 5 Regulation (EC) No 2467/98 Ewe and she-goat premium and LFA supplements Articles 4 and 5 of Regulation (EC) No 2799/98 Articles 2 and 3 of Regulation (EC) No 2800/98 Payments those Regulation) to producers under the (including transitional L 160/118 EN Official Journal of the European Communities 26. 6. 1999 Sector Legal base Notes Poseidom Poseima Poseican Articles 5, 13(1), 17 Regulation (EEC) No 3763/91 Sectors: beef and veal; development of fruit, vegetables, plants and flowers; sugar Articles 11, 14 & 24, 16 & 27, 17 & 25(1), 22 & 29, 30 Regulation (EEC) No 1600/92 Articles 10, 13, 15, 19, 20, 24 Regulation (EEC) No 1601/92 of development Sectors: fruit, vegetables, plants and flowers; beef and veal and milk; potatoes and endives; sugar; wine; pineapples Sectors: beef and veal; development of fruit, vegetables, plants and flowers; sheep and goats; wine; potatoes; honey Aegean Islands Articles 6, 7, 8, 9, 11, 12 Regulation (EEC) No 2019/93 Sectors: beef and veal; development of fruit, vegetables, plants and flowers; potatoes; wine; olives; honey