CHAPTER IIPROVISIONS SUPPLEMENTING RULES ON RURAL DEVELOPMENT MEASURES

Article 2Young farmer 1.

The conditions for access to support for a young farmer, within the meaning of Article 2(1)(n) of Regulation (EU) No 1305/2013, setting up in an agricultural holding as head of that holding jointly with other farmers shall be equivalent to the conditions required for a young farmer setting up as sole head of a holding. In all cases, young farmers shall hold control over the holding as defined by the provisions in force in the constituent nation.

Where the application for support concerns a holding owned by a legal person, a young farmer within the meaning of Article 2(1)(n) of Regulation (EU) No 1305/2013 shall exercise control over the legal person as defined by the provisions in force in the constituent nation. 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 shall be capable of exercising such control either solely or jointly together with other farmers.

Where a legal person is solely or jointly controlled by another legal person, requirements laid down in the first subparagraph shall apply to any natural person having control over that other legal person.

A grace period not exceeding 36 months from the date of the individual decision granting support, may be allowed to the beneficiary, in order to meet the conditions relating to the acquisition of the occupational skills specified in the rural development programme.

Article 3Farm and forest exchange schemes and visits

The relevant authority shall define the duration and the content of the short-term farm and forest management exchange schemes and farm and forest visits referred to in Article 14(1) of Regulation (EU) No 1305/2013 ~~in their rural development programmes~~ in the rural development programme. Such schemes and visits shall focus, in particular, on sustainable farming and forestry methods and/or technologies, farm diversification, farms participating in short supply chains, the development of new business opportunities and new technologies, and on the improvement of forest resilience.

Article 4Quality schemes — promotion1.

Groups of producers receiving support under Article 16(2) of Regulation (EU) No 1305/2013 shall be entities, irrespective of their legal form, which bring together operators participating in a quality scheme for agricultural products, cotton or foodstuffs as referred to in Article 16(1) of that Regulation, for a specific product covered by one of those schemes.

Types of actions eligible for support under Article 16(2) of Regulation (EU) No 1305/2013 shall have the following characteristics:

(a)

be designed to induce consumers to buy the products covered by a quality scheme for agricultural products, cotton or foodstuffs as referred to in Article 16(1) of Regulation (EU) No 1305/2013, participation in which receives support under the rural development programme; and

(b)

draw attention to the specific features or advantages of the products concerned, notably the quality, specific production methods, high animal welfare standards and respect for the environment linked to the quality scheme concerned.

Eligible actions shall not incite consumers to buy a product due to its particular origin, except for products covered by the quality schemes introduced by Title II of Regulation (EU) No 1151/2012 of the European Parliament and of the Council

Regulation (EU) No 1151/2012 of the European Parliament and of the Council of 21 November 2012 on quality schemes for agricultural products and foodstuffs (OJ L 343, 14.12.2012, p. 1).

, by Chapter III of Regulation (EC) No 110/2008 of the European Parliament and of the Council

Regulation (EC) No 110/2008 of the European Parliament and of the Council of 15 January 2008 on the definition, description, presentation, labelling and the protection of geographical indications of spirit drinks and repealing Council Regulation (EEC) No 1576/89 (OJ L 39, 13.2.2008, p. 16).

, by Chapter III of Regulation (EU) No 251/2014 of the European Parliament and of the Council

Regulation (EU) No 251/2014 of 26 February 2014 on the definition, description, presentation, labelling and the protection of geographical indications for aromatised wine products (OJ L 84, 20.3.2014, p. 14).

and by Section 2 of Chapter I of Title II of Part II of Regulation (EU) No 1308/2013 of the European Parliament and of the Council

Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007 (OJ L 347, 20.12.2013, p. 671).

with respect to wine. The origin of the product may be indicated, provided that the mention of the origin is subordinate to the main message.

No support under Article 16(2) of Regulation (EU) No 1305/2013 shall be granted for information and promotion actions concerning commercial brand names.

Article 5Farm and business development1.

The business plan referred to in Article 19(4) of Regulation (EU) No 1305/2013 shall describe at least:

(a)

in the case of start-up aid to young farmers:

(i)

the initial situation of the agricultural holding;

(ii)

milestones and targets for the development of the activities of the agricultural holding;

(iii)

details of the actions, including those related to environmental sustainability and resource efficiency, required for the development of the activities of the agricultural holding, such as investments, training, advice;

(b)

in the case of start-up aid for non-agricultural activities in rural areas:

(i)

the initial economic situation of the person or micro- or small enterprise applying for support,

(ii)

milestones and targets for the development of the new activities of the person or agricultural holding or of the micro- or small enterprise,

(iii)

details of the actions required for the development of the activities of the person or agricultural holding or micro- or small enterprise, such as details of investments, training, advice;

(c)

in the case of start-up aid for the development of small farms:

(i)

the initial situation of the agricultural holding; and

(ii)

details of the actions, including those related to environmental sustainability and resource efficiency, that could support the achievement of economic viability, such as investments, training, cooperation.

The relevant authority shall define the thresholds referred to in the third subparagraph of Article 19(4) of Regulation (EU) No 1305/2013 in terms of production potential of the agricultural holding, measured in standard output, calculated in accordance with Article 4 of Commission Delegated Regulation (EU) No 1198/2014 supplementing Council Regulation (EC) No 1217/2009 setting up a network for the collection of accountancy data on the incomes and business operation of agricultural holdings in the European Union.

Article 6Afforestation and creation of woodland

The following minimum environmental requirements shall apply in the context of the afforestation and creation of woodland measure referred to in Article 22 of Regulation (EU) No 1305/2013:

(a)

the selection of species to be planted, of areas and of methods to be used shall avoid the inappropriate afforestation of sensitive habitats such as peat lands and wetlands and negative effects on areas of high ecological value including areas under high natural value farming. On sites designated as Natura 2000 pursuant to Council Directive 92/43/EEC

Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora (OJ L 206, 22.7.1992, p. 7).

and Directive 2009/147/EC of the European Parliament and of the Council

Directive 2009/147/EC of the European Parliament and of the Council of 30 November 2009 on the conservation of wild birds (OJ L 20, 26.1.2010, p. 7).

only afforestation consistent with the management objectives of the sites concerned and agreed with the relevant authority shall be allowed;

(b)

the selection of species, varieties, ecotypes and provenances of trees shall take account of the need for resilience to climate change and to natural disasters and the biotic, pedologic and hydrologic condition of the area concerned, as well as of the potential invasive character of the species under local conditions as defined by the relevant authority. The beneficiary shall be required to protect and care for the forest at least during the period for which the premium for agricultural income foregone and maintenance is paid. This shall include tending, thinnings or grazing as appropriate, in the interest of the future development of the forest and regulating competition with herbaceous vegetation and avoiding the building up of fire-prone undergrowth material. As regards fast-growing species, the relevant authority shall define the minimum and maximum time before felling. The minimum time shall not be less than 8 years and the maximum shall not exceed 20 years;

(c)

in cases where, due to difficult environmental or climatic conditions, including environmental degradation, the planting of perennial woody species cannot be expected to lead to the establishment of forest cover as defined under the law as it applies in the constituent nation, the relevant authority may allow the beneficiary to establish and maintain other woody vegetation cover. The beneficiary shall provide the same level of care and protection as applicable to forests;

(d)

in the case of afforestation operations leading to the creation of forests of a size exceeding a certain threshold, to be defined by the relevant authority, the operation shall consist of either:

(i)

the exclusive planting of ecologically adapted species and/or species resilient to climate change in the bio-geographical area concerned, which have not been found, through an assessment of impacts, to threaten biodiversity and ecosystem services, or to have a negative impact on human health; or

(ii)

a mix of tree species which includes either:

at least 10 % of broadleaved trees by area, or

a minimum of three tree species or varieties, with the least abundant making up at least 10 % of the area.

Article 7Agri-environment-climate1.

Commitments under the agri-environment-climate measure referred to in Article 28 of Regulation (EU) No 1305/2013 to extensify livestock farming shall comply with at least the following conditions:

(a)

the whole grazed area of the holding is managed and maintained to avoid over- and under-grazing;

(b)

livestock density is defined taking account of all grazing livestock kept on the farm or, in the case of a commitment to limit nutrient leaching, all animals kept on the farm which are relevant to the commitment in question.

Commitments under the agri-environment-climate measure referred to in Article 28 of Regulation (EU) No 1305/2013 to rear local breeds in danger of being lost to farming or to preserve plant genetic resources under threat of genetic erosion shall require:

(a)

to rear farm animals of local breeds, genetically adapted to one or more traditional production systems or environments in the country, in danger of being lost to farming; or

(b)

to preserve plant genetic resources naturally adapted to the local and regional conditions and under threat of genetic erosion.

The following species of farm animals shall be eligible for support:

(a)

cattle;

(b)

sheep;

(c)

goats;

(d)

equidae;

(e)

pigs;

(f)

birds.

Local breeds shall be considered as being in danger of being lost to farming if the following conditions are fulfilled:

(a)

the number, at national level, of breeding females concerned is stated;

(b)

that number and the endangered status of the listed breeds is certified by a duly recognised relevant scientific body;

(c)

a duly recognised relevant technical body registers and keeps up-to-date the herd or flock book for the breed;

(d)

the bodies concerned possess the necessary skills and knowledge to identify animals of the breeds in danger.

The information on the fulfilment of those conditions shall be included in the rural development programme.

Plant genetic resources shall be considered as being under threat of genetic erosion on condition that sufficient evidence of genetic erosion, based upon scientific results or indicators for the reduction of landraces/primitive local varieties, their population diversity and, where relevant, for modifications in the prevailing agricultural practices at local level, is included in the rural development programme.

Activities covered by the type of agri-environment-climate commitments referred to in paragraphs 1 to 4 of this Article shall not be eligible for support under Article 28(9) of Regulation (EU) No 1305/2013.

Article 8Conservation of genetic resources in agriculture and in forestry1.

For the purposes of this Article, the following definitions shall apply:

(a)

‘in situ conservation’ in agriculture means the conservation of genetic material in ecosystems and natural habitats and the maintenance and recovery of viable population of species or feral breeds in their natural surroundings and, in the case of domesticated animal breeds or cultivated plant species, in the farmed environment where they have developed their distinctive properties;

(b)

‘in situ conservation’ in forestry means the conservation of genetic material in ecosystems and natural habitats and the maintenance and recovery of viable population of species in their natural surroundings;

(c)

‘on-farm or on-forest holding conservation’ means in situ conservation and development at farm or forest holding level;

(d)

‘ex situ conservation’ means the conservation of genetic material for agriculture or forestry outside their natural habitat;

(e)

‘ex situ collection’ means a collection of genetic material for agriculture or forestry maintained outside their natural habitat.

Operations for the conservation of genetic resources in agriculture and in forestry eligible for support under Articles 28(9) and 34(4) of Regulation (EU) No 1305/2013 shall include the following:

(a)

targeted actions: actions promoting the in situ and ex situ conservation, characterisation, collection and utilisation of genetic resources in agriculture and in forestry, including web-based inventories of genetic resources currently conserved in situ, including on-farm or on-forest holding conservation, and of ex situ collections and databases;

(b)

concerted actions: actions promoting the exchange of information for the conservation, characterisation, collection and utilisation of genetic resources in ... agriculture or forestry, among competent organisations in other countries;

(c)

accompanying actions: information, dissemination and advisory actions involving non-governmental organisations and other relevant stakeholders, training courses and preparation of technical reports.

~~Article 9~~~~Exclusion of double-funding of agricultural practices beneficial for the climate and the environment and of equivalent practices~~1.

For the purposes of the support under Articles 28(6), 29(4) and 30(1) of Regulation (EU) No 1305/2013, the calculation of such payments shall take into account only the additional costs and/or income foregone linked to the commitments which go beyond the relevant obligatory practices under Article 43 of Regulation (EU) No 1307/2013.

When an agri-environment-climate commitment under Article 28 of Regulation (EU) No 1305/2013 for 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 for any further practices added to that Annex is notified, in accordance with the rules of Article 43(8) of Regulation (EU) No 1307/2013, as equivalent to one or more of the practices established under Article 43(2) of Regulation (EU) No 1307/2013, the payment for the agri-environment-climate commitment under Article 28(6) of Regulation (EU) No 1305/2013 shall be reduced by a lump sum corresponding to a part of the greening payment ~~... for each greening practice as established in accordance with Article 43(12)(c) of Regulation (EU) No 1307/2013.~~

Article 10~~Animal welfare~~Animal health and welfare

~~Animal welfare~~ Animal health and welfare commitments eligible to receive support under Article 33 of Regulation (EU) No 1305/2013 shall provide upgraded standards of production methods in one of the following areas:

(a)

water, feed and animal care in accordance with the natural needs of animal husbandry;

(b)

housing conditions, such as increased space allowances, flooring surfaces, enrichment materials, natural light;

(c)

outdoor access;

(d)

practices which avoid mutilation and/or castration of animals, or in specific cases when mutilation or castration of animals is deemed necessary, provide for the use of anaesthetics, analgesia and anti-inflammatory medication or immunocastration.

Article 11Cooperation1.

Support for the establishment and development of short supply chains, as referred to in Article 35(2)(d) of Regulation (EU) No 1305/2013 shall cover only supply chains involving no more than one intermediary between farmer and consumer.

Support for the establishment and development of local markets, as referred to in Article 35(2)(d) of Regulation (EU) No 1305/2013 shall cover markets for which:

(a)

the rural development programme sets out a kilometric radius from the farm of origin of the product, within which the activities of processing and sale to the final consumer have to take place; or

(b)

the rural development programme sets out a convincing alternative definition.

For the purposes of operations supported under Article 35(2)(c) of Regulation (EU) No 1305/2013, ‘small operator’ shall mean a microenterprise as defined in Commission Recommendation 2003/361/EC

Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (OJ L 124, 20.5.2003, p. 36).

as it had effect immediately before IP completion day, or a natural person not engaged in economic activity at the moment of applying for support.

The promotion activities referred to in Article 35(2)(e) of Regulation (EU) No 1305/2013 shall be eligible for support only in respect of short supply chains and local markets meeting the specifications laid down in paragraphs 1 and 2 of this Article.

Article 12Commercial loans to mutual funds

Where the source of the funds for the financial compensation to be paid by the mutual funds referred to in Articles 38, 39 and 39a of Regulation (EU) No 1305/2013 is a commercial loan, the duration of the loan shall be of between one and five years.

Article 13Investments(1)

For the purposes of Article 45 of Regulation (EU) No 1305/2013, where the support is provided in the form of grants, the following rules shall apply:

(a)

in the case of leasing, other costs connected with the leasing contract, such as lessor’s margin, interest refinancing costs, overheads and insurance charges, shall not be eligible expenditure;

(b)

The relevant authority shall set out in their rural development programmes the conditions under which the purchase of second-hand equipment may be regarded as eligible expenditure;

(c)

The relevant authority shall require compliance with minimum standards for energy efficiency for supported investments in renewable energy infrastructure, that consume or produce energy ~~, where such standards exist at national level~~;

(d)

investments in installations, the primary purpose of which is electricity production from biomass, shall not be eligible for support unless a minimum percentage of heat energy is utilised, to be determined by the relevant authority;

(e)

The relevant authority shall establish thresholds for the maximum proportions of cereals and other starch rich crops, sugars and oil crops used for bioenergy production, including biofuels, for different types of installations. Support to bioenergy projects shall be limited to bioenergy meeting the applicable sustainability criteria laid down in assimilated direct legislation and in Article 17(2) to (6) of Directive 2009/28/EC of the European Parliament and of the Council

Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC (OJ L 140, 5.6.2009, p. 16).

. In that context, a general assessment shall be included in the strategic environmental assessment of the rural development programme.

For the purposes of Article 13(e), Article 17 of Directive 2009/28/EC is to be read as if—

(a)

Article 17(3)(b)(ii) is omitted;

(b)

“Community” includes the United Kingdom.

Article 14Conversion or adjustment of commitments1.

The relevant authority may authorise one commitment under Articles 28, 29, 33 or 34 of Regulation (EU) No 1305/2013 to be converted into another commitment during the period of its operation, provided that all the following conditions are fulfilled:

(a)

the conversion is of significant benefit to the environment or to ~~animal welfare~~ animal health and welfare;

(b)

the existing commitment is substantially reinforced;

(c)

the approved rural development programme includes the commitments concerned.

A new commitment shall be undertaken for the full period specified in the relevant measure irrespective of the period for which the original commitment has already been implemented.

The relevant authority may allow commitments under Articles 28, 29, 33 and 34 of Regulation (EU) No 1305/2013 to be adjusted during the period for which they apply, provided that ~~the approved rural development programme provides the possibility for such adjustment and that~~ the adjustment is duly justified having regard to the achievement of the objectives of the original commitment.

~~The beneficiary shall fulfil the adjusted commitment for the remainder of the duration of the original commitment.~~

Adjustments may also take the form of an extension of the duration of the commitment.

Article 15Situations where no reimbursement is required1.

When a beneficiary increases the area of the holding during the period for which a commitment, given as a condition for the grant of support, runs, the relevant authority may provide for the commitment to be extended so as to cover the additional area for the remainder of the period of the commitment, or for the original commitment to be replaced by a new one. The same shall apply in cases where the area covered by a commitment within a holding is increased.

A commitment may be extended to cover additional area as referred to in paragraph 1 only under the following conditions:

(a)

it serves the environmental objective pursued by the commitment;

(b)

it is justified in terms of the nature of the commitment, the length of the remaining period and the size of the additional area;

(c)

it does not impede the effectiveness of checks to ensure compliance with the conditions for the grant of support.

The original duration of the commitment shall be respected.

A new commitment may be undertaken to replace the existing one as referred to in paragraph 1 on condition that it covers the whole area concerned and that its terms are not less demanding than those of the original commitment.

When the original commitment is replaced by a new one, the new commitment shall be undertaken for the full period specified in the relevant measure irrespective of the period for which the original commitment has already been implemented.