CHAPTER IPRODUCER ORGANISATIONS

SECTION 1Introductory provision

Article 1Subject matter and scope1.

This Regulation lays down rules for the application of Regulation (EU) No 1308/2013 as regards the fruit and vegetables and processed fruit and vegetables sectors, with the exception of marketing standards.

Chapters I to V shall only apply to products of the fruit and vegetables sector as referred to in Article 1(2)(i) of Regulation (EU) No 1308/2013 and to such products intended solely for processing.

Article 1A Definitions

For the purposes of this Regulation, the following definitions apply:

(a)

‘constituent nation’ means England, Wales, Scotland or Northern Ireland, as the case may be;

(b)

‘public funds’ means moneys provided by Parliament, Senedd Cymru, the Scottish Parliament, the Northern Ireland Assembly or a body exercising public functions within the United Kingdom. References to ‘public funding’ are to be construed accordingly;

(c)

‘relevant authority’ means:

(i)

in relation to England, the Secretary of State;

(ii)

in relation to Wales, the Welsh Ministers;

(iii)

in relation to Scotland, the Scottish Ministers;

(iv)

in relation to Northern Ireland, the Department of Agriculture, Environment and Rural Affairs;

(d)

‘third country’ means any country or territory other than:

(i)

the United Kingdom;

(ii)

the Bailiwick of Jersey;

(iii)

the Bailiwick of Guernsey;

(iv)

the Isle of Man;

(e)

‘existing non-UK member’ means an ex-transnational producer organisation member:

(i)

who was, immediately before IP completion day, a producer member of a transnational producer organisation within the meaning of Articles 2(b) and 2(d) of Regulation (EU) 2017/891 (as they had effect immediately before IP completion day); and

(ii)

at least one of whose holdings is situated in a European Union Member State;

(f)

‘ex-transnational producer organisation’ means a producer organisation that was, immediately before IP completion day, recognised in the United Kingdom as a transnational producer organisation within the meaning of Article 2(d) of Regulation (EU) 2017/891 (as it had effect immediately before IP completion day).

Article 1B Definition of appropriate authority (1.

For the purposes of this Regulation, ‘appropriate authority’ means:

(a)

in relation to England, the Secretary of State;

(b)

in relation to Wales, the Welsh Ministers;

(c)

in relation to Scotland, the Scottish Ministers;

(d)

in relation to Northern Ireland, the Department of Agriculture, Environment and Rural Affairs.

(2.

But the appropriate authority is the Secretary of State:

(a)

in relation to Scotland, at any time that the Secretary of State and the Scottish Ministers so agree;

(b)

in relation to Northern Ireland, at any time that the Secretary of State and the Department of Agriculture, Environment and Rural Affairs so agree.

(3.

The relevant authorities for Scotland and Northern Ireland must ensure that a statement identifying the appropriate authority for their constituent nation is published on websites maintained by them or on their behalf.

SECTION 2Operational programmes

Article 2Strategy for sustainable operational programmes

The structure and content of the ... strategy referred to in Article 36(2) of Regulation (EU) No 1308/2013 shall be as set out in Annex I to this Regulation.

Article 3Framework for environmental actions and the eligible investments1.

A separate section of the ... framework referred to in Article 36(1) of Regulation (EU) No 1308/2013, shall indicate the requirements laid down in Article 28 of Regulation (EU) No 1305/2013 of the European Parliament and of the Council

Regulation (EU) No 1305/2013 of the European Parliament and of the Council of 17 December 2013 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) and repealing Council Regulation (EC) No 1698/2005 (OJ L 347, 20.12.2013, p. 487).

to be fulfilled by the environmental actions selected under an operational programme.

The ... framework shall set out a non-exhaustive list of environmental actions and the conditions thereof applicable in the constituent nation or the United Kingdom (as the case may be) for the purposes of Article 33(5) of Regulation (EU) No 1308/2013.

The list referred to in the second subparagraph may include the following types of environmental actions:

(a)

actions that are identical to agri-environment-climate or organic farming commitments as referred to in Articles 28 and 29 of Regulation (EU) No 1305/2013, respectively, and which are provided for under the rural development programme of the constituent nation concerned or the rural development programmes of the constituent nations concerned (as the case may be);

(b)

investments beneficial for the environment;

(c)

other actions beneficial for the environment, including those which do not relate directly or indirectly to a particular parcel but that are linked to the fruit and vegetables sector, provided they contribute to soil protection, water or energy saving, improvement or maintenance of water quality, habitats or biodiversity protection, climate change mitigation and reduction or improved management of waste.

For each environmental action referred to in points (b) and (c) of the third subparagraph, the ... framework shall indicate:

(a)

the justification of the action, on the basis of its environmental impact; and

(b)

the specific commitment(s) entailed.

The ... framework shall include at least one action on the application of integrated pest management practices.

Environmental actions which are identical to agri-environmental-climate or organic farming commitments supported under a rural development programme shall have the same duration as those commitments. Where the duration of the action exceeds the duration of the initial operational programme, the action shall be continued in a subsequent operational programme.

The appropriate authority may authorise shorter durations for environmental actions or even their discontinuance in duly justified cases, and in particular taking into account the results of the evaluation in the last but one year of the implementation of the operational programme referred to in Article 57(3) of Delegated Regulation (EU) 2017/891.

Investments beneficial for environment made at the premises of producer organisations, associations of producer organisations or subsidiaries complying with the 90 % requirement referred to in Article 22(8) of Delegated Regulation (EU) 2017/891, or at the premises of their producer members shall be eligible for support if they:

(a)

could achieve a reduction in the current use of production inputs, emission of pollutants or waste from the production process; or

(b)

could achieve replacement of the use of fossil energy sources with renewable energy sources; or

(c)

could achieve a reduction in the environmental risks linked to the use of certain production inputs, including plant protection products or fertilisers; or

(d)

lead to improvement of the environment; or

(e)

are linked to non-productive investments needed to achieve the objectives of an agri-environmental-climate or organic farming commitment, in particular where those objectives relate to the protection of habitats and biodiversity.

Investments referred to in point (a) of paragraph 3 shall be eligible for support if they provide for a reduction of at least 15 %, calculated over the fiscal depreciation period of the investment compared to the pre-existing situation, of:

(a)

the use of production inputs that are non-renewable natural resources, such as water or fossil fuel, or possible source of environmental pollution, such as fertilisers, plant protection products or certain types of energy sources;

(b)

the emission of air, soil or water pollutants from the production process; or

(c)

the production of waste, including waste water, from the production process.

By way of derogation from the first subparagraph, the appropriate authority may accept investments that allow for a reduction of at least 7 %, calculated over the fiscal depreciation period of the investment compared to the pre-existing situation, provided that those investments allow for at least one additional environmental benefit.

The expected reduction and, where applicable, the expected additional environmental benefit, shall be demonstrated ex ante through project specifications or other technical documents to be presented by the producer organisation or association of producer organisations at the moment of the submission of the proposed operational programme or of the amendment of such a programme for approval, showing the results that could be obtained through the implementation of the investment, as attested by the technical documents or by an independent qualified body or expert agreed by the appropriate authority.

Investments aimed to achieve a reduction in water use shall:

(a)

provide for a reduction of at least 5 % in water use in drip irrigation or similar systems compared to the consumption prior to the investment; and

(b)

not result in a net increase of the area under irrigation, unless the total water consumption for irrigation of the whole farm, including the increased area, does not exceed the average of water consumption of the previous 5 years prior to the investment.

Investments referred to in point (b) of paragraph 3 consisting of systems which generate energy shall be eligible for support if the amount of energy generated does not exceed the amount that can be used ex ante on a yearly basis for the actions related to fruit and vegetables by the producer organisation, association of producer organisations, subsidiary or the producer organisation's members that benefit from the investment.

Investments referred to in points (c) and (d) of paragraph 3 shall be eligible for support where they contribute to soil protection, water or energy saving, improvement or maintenance of water quality, habitats or biodiversity protection, climate change mitigation, and reduction or improved management of waste, although their contribution is not quantifiable.

The producer organisation or association of producer organisations shall provide evidence of the expected positive contribution to one or more environmental objectives at the moment of the submission for approval of the proposed operational programme or amendment of such a programme. The appropriate authority may require that evidence to be provided in the form of project specifications attested by an independent qualified body or expert in the environmental fields concerned.

The following rules shall apply to environmental actions:

(a)

various environmental actions may be combined provided that they are complementary and compatible. Where environmental actions other than investments in physical assets are combined, the level of support shall take account of the specific income foregone and additional costs resulting from the combination;

(b)

commitments to limit the use of fertilisers, plant protection products or other inputs shall be accepted only if such limitations can be assessed in a way that provides assurance about compliance with those commitments;

(c)

investments beneficial for the environment referred to in paragraph 3 shall be fully eligible for support.

Article 4Content of operational programmes1.

Operational programmes shall include the following:

(a)

a description of the initial situation, based, where relevant, on the indicators listed in Table 4.1 of Annex II;

(b)

the objectives of the programme, taking into account the outlook for production and outlets, with an explanation of how the programme intends to contribute to and is consistent with the objectives of the strategy referred to in Article 36(2) of Regulation (EU) No 1308/2013 of the constituent nation in which the producer organisation has its head office, including the balance between activities. The description of the objectives shall indicate measurable targets, so as to facilitate the monitoring of progress gradually made in implementing the programme;

(c)

the proposed measures, including the actions for crisis prevention and management;

(d)

the duration of the programme; and

(e)

the financial aspects, in particular:

(i)

the method of calculation and the level of financial contributions;

(ii)

the procedure for financing the operational fund;

(iii)

information necessary to justify different levels of contribution; and

(iv)

the budget and timetable for operations for each implementation year of the programme.

Operational programmes shall indicate:

(a)

the extent to which the different measures complement and are consistent with other measures, including measures financed or eligible for support by other public funds, and in particular under Regulation (EU) No 1305/2013 and promotion programmes approved under Regulation (EU) No 1144/2014 of the European Parliament and of the Council

Regulation (EU) No 1144/2014 of the European Parliament and of the Council of 22 October 2014 on information provision and promotion measures concerning agricultural products implemented in the internal market and in third countries and repealing Council Regulation (EC) No 3/2008 (OJ L 317, 4.11.2014, p. 56).

. If applicable, specific reference shall also be made to measures carried out under previous operational programmes; and

(b)

that they do not entail any risk of double financing by public funds.

Article 5Documents to be submitted with the operational programme

Operational programmes shall be accompanied by:

(a)

evidence of the creation of an operational fund;

(b)

a written commitment from the producer organisation to comply with Regulation (EU) No 1308/2013, Delegated Regulation (EU) 2017/891 and this Regulation; and

(c)

a written commitment from the producer organisation that it has not received and will not receive, directly or indirectly, any other European Union or public funding in respect of actions qualifying for aid under Regulation (EU) No 1308/2013 in the fruit and vegetables sector.

Article 6Time limit for submission1.

~~An operational~~ ~~programme~~ ~~shall be submitted for approval by a producer organisation to the~~ ~~appropriate authority of the constituent nation~~ ~~in which the producer organisation has its~~ ~~head office, by 15 September of the year preceding that in which the programme is to be implemented. However,~~ ~~nothing in this Regulation prevents the appropriate authority from setting~~ ~~a date later than 15 September.~~

(1.

An operational programme is to be submitted for approval by a producer organisation which has its head office in Scotland to the appropriate authority by 15 September in any applicable year.

When a legal entity or clearly defined part of a legal entity, including ... a producer group referred to in Article 27 of Regulation (EU) No 1305/2013, submits an application for recognition as a producer organisation it may, at the same time, submit for approval the operational programme referred to in paragraph 1. Approval of the operational programme shall be subject to recognition being granted no later than on the final date laid down in Article 33(2) of Delegated Regulation (EU) 2017/891.

(3.

An appropriate authority may only approve an operational programme if the producer organisation submitting it has notified the appropriate authority by 1 March, or such later date as may be set by the appropriate authority in accordance with Article 26(1) of Delegated Regulation (EU) 2017/891, in the year preceding the applicable year of the estimated amount of financial assistance of its members and of the producer organisation or association itself, to the operational funds for the period for which the programme is to be implemented.

(4.

For the purposes of this Article, the “applicable year” means 2025 and every third year thereafter (so 2028, 2031, 2034 and so on).

Article 7Implementation periods of operational programmes1.

Operational programmes shall be implemented in annual periods running from 1 January to 31 December.

Operational programmes approved by 15 December shall be implemented from 1 January of the following year.

The implementation of programmes approved after 15 December shall be postponed for one year.

By way of derogation from paragraph 2, where the third subparagraph of Article 33(2) or the second subparagraph of Article 34(1) of Delegated Regulation (EU) 2017/891 applies, the implementation of operational programmes approved in accordance with those provisions shall start not later than 31 January following their approval.

SECTION 3Aid

Article 8Approved amount of aid

The appropriate authority shall notify producer organisations and associations of producer organisations of the approved amount of aid by 15 December of the year preceding the year for which aid is requested.

By way of derogation from the first paragraph, where the third subparagraph of Article 33(2) or the second subparagraph of Article 34(1) of Delegated Regulation (EU) 2017/891 applies, the appropriate authority shall notify those organisations and associations of the approved amount of aid by 20 January of the year for which aid is requested.

Article 8a Implementation of increase of the limit of the Union financial assistance from 50 % to 60 %

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Article 9Aid applications1.

Producer organisations shall submit an application for aid, or the balance thereof, to the appropriate authority for each operational programme for which aid is requested by 15 February of the year following the year for which the aid is requested.

The aid applications shall be accompanied by supporting documents showing:

(a)

the aid requested;

(b)

the value of marketed production;

(c)

the financial contributions levied on its members and those of the producer organisation itself;

(d)

the expenditure incurred in respect of the operational programme;

(e)

the expenditure concerning crisis prevention and management broken down by actions;

(f)

the proportion of the operational fund spent on crisis prevention and management broken down by actions;

(g)

compliance with Article 33(3), the first subparagraph of Article 33(5) and Article 34 of Regulation (EU) No 1308/2013;

(h)

a written commitment that it has not received any duplicate European Union or public funding in respect of measures or operations qualifying for aid under Regulation (EU) No 1308/2013 in the fruit and vegetables sector; and

(i)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(j)

an annual report on the execution of the operational programme.

The aid applications may cover expenditure programmed but not incurred if the following elements are proved:

(a)

the operations concerned could not be carried out by 31 December of the year of implementation of the operational programme, for reasons beyond the control of the producer organisation concerned;

(b)

those operations can be carried out by 30 April of the year following the year for which the aid is requested; and

(c)

an equivalent contribution from the producer organisation remains in the operational fund.

The aid shall be paid and the security lodged in accordance with Article 11(2) shall be released only on condition that proof of implementation of the programmed expenditure referred to in point (b) of the first subparagraph of this paragraph is provided by 30 April of the year following that for which the expenditure in question was programmed, and on the basis that the entitlement to the aid is established.

In exceptional and duly justified cases, the appropriate authority may accept applications after the date provided for in paragraph 1, if the necessary checks have been carried out and the time limit for payment provided for in Article 10 is complied with. Where applications are submitted after the date provided for in paragraph 1, the aid shall be reduced by 1 % for each day the application is late.

Associations of producer organisations may submit an application for aid as referred to in paragraph 1 in the name and on behalf of only those members that are producer organisations recognised in the United Kingdom and provided that the supporting documents referred to in paragraph 2 are submitted for each member. The producer organisations shall be the final beneficiaries of the aid.

5A.

An application for aid by an association of producer organisations must relate to actions implemented at the level of the association and must be submitted to the appropriate authority for the constituent nation where that association has its head office. The appropriate authorities must ensure that there is no double funding risk.

Producer organisations shall submit an application for aid regarding actions that are implemented at the level of the producer organisations to the appropriate authority for the constituent nation in which the producer organisation’s head office is located....

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 10Payment of the aid

The appropriate authority shall pay the aid by 15 October of the year following the year of implementation of the programme.

Article 11Advance payments1.

Applications for advance payments may be submitted ... on a three-monthly basis in January, April, July and October ....

Total advance payments made for a given year shall not exceed 80 % of the initially approved amount of aid for the operational programme.

Advance payments shall be paid subject to the lodging of a security equivalent to 110 % thereof in accordance with Commission Delegated Regulation (EU) No 907/2014

Commission Delegated Regulation (EU) No 907/2014 of 11 March 2014 supplementing Regulation (EU) No 1306/2013 of the European Parliament and of the Council with regard to paying agencies and other bodies, financial management, clearance of accounts, securities and use of euro (OJ L 255, 28.8.2014, p. 18).

Nothing in this Regulation prevents the appropriate authority from setting a minimum amount and the deadlines for advance payments.

Article 12Partial payments1.

A producer organisation may apply to the appropriate authority for the constituent nation in which the producer organisation has its head office for the payment of the part of the aid corresponding to the amounts already spent under the operational programme.

Applications may be submitted at any time, but no more than three times each year. They shall be accompanied by supporting documents, such as invoices and documents proving that the payment has been made.

Payments in respect of applications for parts of the aid shall not exceed 80 % of the part of the aid corresponding to the amounts already spent under the operational programme for the period concerned. Nothing in this Regulation prevents the appropriate authority from setting a minimum amount for partial payments and deadlines for applications.