
Article 1 
Regulation (EC) No 795/2004 is hereby amended as follows:

1.. Article 2 shall be amended as follows:

((a)) in points (b) and (e), the reference to Regulation (EC) No 795/2004 shall be replaced by the reference to Regulation (EC) No 796/2004;
((b)) in point (I) the following subparagraph shall be added:
'The case of transfer of payment entitlements without land referred to in Article 46(2), second subparagraph, of Regulation (EC) No 1782/2003 shall be considered as a case of sale of payment entitlements without land';
2.. Article 3(2) shall be replaced by the following paragraphs:
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2. Where a farmer, after having declared in accordance with Article 44(3) of Regulation (EC) No 1782/2003 all possible entire payment entitlements, needs to declare a payment entitlement accompanying a parcel which amounts to a fraction of a hectare, this last payment entitlement shall give right to a payment calculated pro rata to the size of the parcel and it shall be deemed as fully used for the purpose of Article 45 of that Regulation.
3. Where the size of a parcel which is transferred with an entitlement in accordance with Article 46(2) of that Regulation amounts to a fraction of a hectare, the farmer may transfer the part of the entitlement concerned with the land at a value calculated to the extent of the same fraction. The remaining part of the entitlement shall remain at the disposal of the farmer at a value calculated correspondingly.
4. Paragraphs 2 and 3 shall apply only if the farmer still needs to declare or transfer a payment entitlement or a fraction of a payment entitlement with a fraction of a hectare after having declared or transferred existing payment entitlements or fractions of payment entitlements';
3.. the following Article 3a shall be added:
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Article 3a 
Without prejudice to the application of Annex VII of Regulation (EC) No 1782/2003, the number of hectares or animals for which a direct payment has been or should have been granted in the reference period to be taken into consideration for the purpose of establishing the reference amount referred to in Article 37(1) of that Regulation shall be the number of hectares or animals determined within the meaning of Article 2 points (r) and (s) of Regulation (EC) No 2419/2001 for each of the direct payments referred to in Annex VI of Regulation (EC) No 1782/2003';
4.. Article 7 shall be modified as follows:

((a)) in paragraph 1 the following subparagraph shall be added:
'For the purpose of this Article, “payment entitlements” shall mean only the payment entitlements allocated by the Member State in the first year of application of the single payment scheme';
((b)) paragraph 6 shall be replaced by the following:
'For the purpose of paragraphs 1, 2, 3 and 4, hectares transferred by sale or lease shall be included in the number of hectares which the farmer declares';
5.. in Article 8(1), second subparagraph, the reference to Regulation (EC) No 795/2004 shall be replaced by a reference to Regulation (EC) No 796/2004;
6.. Article 10 shall be amended as follows:

((a)) in paragraph 1(a), (b) and (c), the following words are added at the end of each indent:
'or premium rights transferred;'
((b)) in paragraph 2, the word ‘hectares’ shall be replaced by the following words:
'hectares of the reference period corresponding to that remaining reference amount.'
((c)) in paragraph 3, the date of 30 April 2004 shall be replaced by the date of 15 May 2004.
((d)) the following paragraph shall be added:
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5. Without prejudice to the application of paragraph 4, paragraph 1 shall not apply in cases where the contractual clause referred to in Article 17 and, where the case may be, Article 27 has been introduced in a contract before 15 May 2004.'
7.. Article 12 shall be amended as follows:

((a)) in paragraph 4 the second subparagraph shall be replaced by the following:
'No definitive transfer of payment entitlements shall be possible before the definitive establishment of payment entitlements.In any case, definitive payment entitlements shall be established by at the latest 15 August of the first year of application of the single payment scheme. Where specific administrative conditions so warrant, a Member State may decide that date for the definitive establishment may be at the same time as the date for the notification of the payment for the first year of application of the single payment scheme but in any case not later than 31 December of the first year of application.Farmers may introduce, under reserve of the definitive establishment, applications under the single payment on the basis of provisional payment entitlements established by the Member States or acquired via the contractual clause referred to in Articles 17 or 27';
((b)) in paragraph 6, after ‘per holding’, the following words shall be added:
'in terms of agricultural area';
((c)) the following paragraph 8 shall be added:
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8. Except for the purpose of establishing payment entitlements from the national reserve referred to in Articles 6, 7 and 18 to 23a, and without prejudice to paragraph 5 and 6 of this Article, no parcel needs to be declared for the purpose of the establishment of the payment entitlements. The declaration of parcels referred to in Article 44(3) of Regulation (EC) No 1782/2003 shall apply for the purpose of the application for payment of the payment entitlements under the single payment scheme';
8.. in Article 16, the following paragraph shall be added:
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3. Article 40 of Regulation (EC) No 1782/2003 shall apply on the basis of each direct payment referred to in Annex VI of that Regulation';
9.. in Article 18(1) and (2), ‘23’ shall be replaced by ‘23a’;
10.. Article 20 shall be amended as follows:

((a)) in paragraph 1, the words ‘by transfer free of charge or by lease for six or more years’ shall be replaced by the following:
'by transfer, either by sale or by lease for six or more years, free of charge or at a symbolic price';
((b)) in Article 20(1), after ‘retired’ the following words shall be added:
'from agricultural activity';
11.. in Articles 21, 22 and 23, the date of 29 September 2003 shall be replaced by the date of 15 May 2004;
12.. The following Article 23a shall be added:
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Article 23a 
Where a farmer should be entitled to receive payment entitlements or increase the value of the existing ones by virtue of a definitive court's ruling or by virtue of a definitive administrative act of the competent authority of a Member State, the farmer shall receive the number and value of payment entitlements established in that ruling or act at a date to be fixed by the Member State but not later than the latest date for lodging an application under the single payment scheme following the date of the ruling or the act and taking into account the application of Article 44(3) of Regulation (EC) No 1782/2003';
13.. Article 28 shall be replaced by the following:
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1. For the purposes of Article 34(1)(b) of Regulation (EC) No 1782/2003, a Member State may decide, where the case may be, to use:
(a) the forage area declared by the farmer in the area aid application for 2004 or in the year preceding the first year of application of the single payment scheme, or
(b) the forage area declared in application of Article 12(1) or (2) of this Regulation.
2. For the purpose of the establishment of the definitive payment entitlements the farmer may prove, at the satisfaction of the competent authority, that his forage area in the reference period was lower or, in case the area used by Member States is lower, he shall, in accordance with Article 43(2)(b) of Regulation (EC) No 1782/2003, declare all the forage area he held in the reference period';
14.. in Article 29, the reference to Regulation (EC) No 795/2004 shall be replaced by the reference to Regulation (EC) No 796/2004;
15.. Article 30 shall be modified as follows:

((a)) paragraph 1 shall be replaced by the following:
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1. For the purposes of calculating the agricultural activity expressed in livestock units (LU) referred to in Article 49(2) of Regulation (EC) No 1782/2003, the conversion table provided for in Article 131(2)(a) of that Regulation shall apply to the three-year average number of animals for which a direct payment referred to in Article 47 of that Regulation was granted in the reference period';
((b)) in paragraph 2, the following subparagraph shall be added:
'In case of dairy premium and additional payments, the LU shall be calculated by dividing the reference quantity used for the calculation of the amount of dairy premium and additional payment when included in the single payment scheme by the average milk yield provided for in Annex XVI of Regulation (EC) No 1973/2004 applicable at that time or by the individual milk yield, in case the individual yield was higher than the average. Where a Member State makes use of the option provided for in Article 62 of Regulation (EC) No 1782/2003, the number of LU shall be modified accordingly.In case of slaughter premium, where the necessary data regarding the age of the animals are not available, a Member State may convert bulls, steers, cows and heifers in LU by using the coefficient 0,7 and calves by using the coefficient 0,25.Where the same animal benefitted from several premiums, the coefficient applicable shall be the average of the coefficient applicable to the different premiums';
((c)) the following paragraph 3a shall be added:
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3a. The number of LU shall be calculated pro rata to the payment entitlements for which he did not have hectares in the reference period and for which the farmer requests the application of the special conditions. It shall apply starting from the payment entitlements at the lowest value.The request shall be made only in the first year of application of the single payment scheme. Member States shall fix the date for the request. It may be renewed in the following years for the same number of payment entitlements subject to special conditions in the previous year or, in case of transfer of some of those payment entitlements, or in case of declaration of some of those payment entitlements with a corresponding number of hectares, for the remaining of those payment entitlements.In these cases, the number of LU shall be recalculated pro rata to the remaining payment entitlements for which the farmer requests the application of the special conditions.No request to re-establish the special condition may be introduced for those payment entitlements once they have been declared with an equivalent number of hectares or they have been transferred, without prejudice to Article 49(2) second subparagraph of Regulation (EC) No 1782/2003';
16.. the following Article 31a shall be added:
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Article 31a 

1. In order to calculate the reference amount relating to extensification payments and additional payments in the beef and veal and sheep and goat sectors referred to in Annex VI of Regulation (EC) No 1782/2003, Member States shall take into account, according to objective criteria and in such a way as to ensure equal treatment between farmers and to avoid market and competition distortion, the eligibility conditions and amounts set up by the Member State concerned when granting such payments in the reference period provided that the component of such payments in the ceiling referred to in Annex VIII of that Regulation is not exceeded.
2. In order to calculate the reference amount relating to the slaughter premium in the beef and veal sector referred to in Annex VI of Regulation (EC) No 1782/2003, Member State shall take into account the application of Article 11(4) of Regulation (EC) No 1254/1999';
17.. in Article 32, the following paragraph shall be added:
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4. For the purposes of Articles 54(2) and 61 of Regulation (EC) No 1782/2003, land under permanent pasture in 2003 shall be:
(a) land declared by a farmer in his aid application for 2003 as being under permanent pasture, and
(b) land not declared by a farmer in his aid application for 2003, unless it can be shown that that land was not under permanent pasture in 2003.However, Member States may provide that land under permanent pasture in 2003 shall be land declared in the aid application for 2003 and in the aid applications for at least the five consecutive years prior to 2003 as land used to grow grasses or other herbaceous forage';
18.. Article 38 shall be modified as follows:

((a)) in paragraph 3, the reference to Regulation (EC) No 795/2004 shall be replaced by the reference to Regulation (EC) No 796/2004.
((b)) the following paragraphs shall be added:
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4. Article 40 of Regulation (EC) No 1782/2003 and Article 16 of this Regulation shall apply mutatis mutandis.
5. For the purpose of this Article, the reference to “agricultural area” in Article 12(6) shall be construed as a reference to “eligible area within the meaning of Article 44(2) of Regulation (EC) No 1782/2003”';
19.. the following paragraph 4 shall be added in Article 41:
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4. For the purpose of Article 60(3)(b) of Regulation (EC) No 1782/2003, Article 20 to 23a of this Regulation shall apply mutatis mutandis to the farmers producing the products referred to in Article 60(1) of Regulation (EC) No 1782/2003';
20.. The following Chapter is inserted after Chapter 6:
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CHAPTER 6a
Article 48a 

1.. Save as otherwise provided for in this Chapter, the provisions of this Regulation shall apply to the new Member States.
2.. Any reference to Article 42 of Regulation (EC) No 1782/2003 in this Regulation shall be construed as a reference to Article 71d of Regulation (EC) No 1782/2003.
3.. Any reference to the regional average in Articles 6(3) and (4) of this Regulation shall be construed as a reference to the limit of EUR 5 000 referred to in Article 71d(4) of Regulation (EC) No 1782/2003.
4.. Any reference to Articles 58 and 59 or 58(1) and 59(1) of Regulation (EC) No 1782/2003 in Chapters 6 and 7 of this Regulation shall be construed as a reference to Article 71e of Regulation (EC) No 1782/2003.
5.. Any reference to Article 59(2) and (3) of Regulation (EC) No 1782/2003 in Article 38 of this Regulation shall be construed as a reference to Article 71f of Regulation (EC) No 1782/2003.
6.. Any reference to Article 60 of Regulation (EC) No 1782/2003 in Article 8(2), Article 9(1) (e), Article 41 and Article 50a of this Regulation shall be construed as a reference to Article 71g of Regulation (EC) No 1782/2003.
7.. Any reference to Article 63(2), third subparagraph, of Regulation (EC) No 1782/2003 in Articles 39, 43 and 48b of this Regulation shall be construed as a reference to Article 71j(2) of Regulation (EC) No 1782/2003.
8.. Articles 3a, 7, 10, 12 to 17, 27, 28, 30, 31, 31a, 40, 42, 45 to 46 and 49 shall not apply.
9.. Article 5, 19, 23, 31 and 42 shall not apply in case of application of the single area payment scheme referred to in Article 143b of Regulation (EC) No 1782/2003';
21.. the following Article 48b shall be added:
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Article 48b 
Where the Member State decides to make use of the option provided for in Article 71(1) of Regulation (EC) No 1782/2003, it shall notify by 1 August of the year preceding the first year of application of the single payment scheme the decisions it has taken in accordance with Articles 58, 59, 61 to 64 and 70 of Regulation (EC) No 1782/2003';
22.. the following Article 50a shall be added:
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Article 50a 
For the purpose of Article 60(2), Annex VII (B) and (D) last subparagraph of Regulation (EC) No 1782/2003, Member States shall communicate to the Commission by at the latest 31 October of the year preceding the first year of application of the single payment scheme the number of hectares referred to in those provisions'.
Article 2 
This Regulation shall enter into force on the seventh day following that of its publication in the Official Journal of the European Union.
It shall apply from 1 January 2005 except Article 1(21) which shall apply from 31 October 2004.
This Regulation shall be binding in its entirety and directly applicable in all Member States.Done at Brussels, 29 October 2004.
For the Commission
Franz FISCHLER
Member of the Commission