
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 
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 42 and Article 43(2) thereof,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national parliaments,
Having regard to the opinion of the Court of Auditors,
Having regard to the opinion of the European Economic and Social Committee,
Having regard to the opinion of the Committee of the Regions,
Acting in accordance with the ordinary legislative procedure,
Whereas:

(1) The Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions entitled "The CAP towards 2020: Meeting the food, natural resources and territorial challenges of the future" set out the potential challenges, objectives and orientations for the common agricultural policy ("the CAP") after 2013. In the light of the debate on that Communication, the CAP should be reformed with effect from 1 January 2014. That reform should cover all the main instruments of the CAP, including Council Regulation (EC) No 1698/2005. In view of the scope of the reform, it is appropriate to repeal Regulation (EC) No 1698/2005 and to replace it with a new text.

(2) A rural development policy should be established to accompany and complement direct payments and market measures of the CAP and thereby to contribute to that policy's objectives as laid down in the Treaty on the Functioning of the European Union ("TFEU"). Such rural development policy should also integrate the major policy objectives set out in the Communication from the Commission of 3 March 2010 entitled "Europe 2020 - A strategy for smart, sustainable and inclusive growth" ("the Europe 2020 Strategy") and should be coherent with the general objectives for the economic and social cohesion policy, as set out in the TFEU.

(3) Since the objective of this Regulation, namely rural development, cannot be sufficiently achieved by the Member States, given the links between rural development and the other instruments of the CAP, the extent of the disparities that exist between the various rural areas and the limits on the financial resources of the Member States in an enlarged Union but can rather, by reason of the multi-annual guarantee of Union finance and by concentrating on its priorities, be better achieved at Union level. the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union ("TEU"). In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective.

(4) To ensure the sustainable development of rural areas, it is necessary to focus on a limited number of core priorities relating to knowledge transfer and innovation in agriculture, forestry and rural areas, to farm viability, to the competitiveness of all types of agriculture in all regions and promoting innovative farm technologies and the sustainable management of forests, to the organisation of the food chain, including the processing and marketing of agricultural products, to animal welfare, to risk management in agriculture, restoring, preserving and enhancing ecosystems that are related to agriculture and forestry, to the promotion of resource efficiency and the shift towards a low carbon economy in the agricultural, food and forestry sectors, and to promoting social inclusion, poverty reduction in and the economic development of rural areas. In doing so, account should be taken of the diversity of the situations that affect rural areas with different characteristics or different categories of potential beneficiaries and of the cross-cutting objectives of innovation, environment and climate change mitigation and adaptation. Mitigation action should relate both to limiting emissions in agriculture and forestry from key activities such as livestock production, fertilizer use and to preserving carbon sinks and enhancing carbon sequestration with regard to land use, land use change and the forestry sector. The Union priority for rural development relating to knowledge transfer and innovation in agriculture, forestry and rural areas should apply horizontally in relation to the other Union priorities for rural development.

(5) The Union's priorities for rural development should be pursued in the framework of sustainable development and the Union's promotion of the aim of protecting and improving the environment, as set out in Article 11 TFEU, taking into account the polluter pays principle. The Member States should, provide information on the support for climate change objectives in line with the ambition to devote at least 20 % of the Union budget to this end using a methodology adopted by the Commission.

(6) The activities of the European Agricultural Fund for Rural Development ("the EAFRD") and the operations to which it contributes should be consistent and compatible with support from other instruments of the CAP.

(7) In order to ensure the immediate start and efficient implementation of rural development programmes, support from the EAFRD should be based on the existence of administrative framework conditions that are sound. Member States should therefore assess the applicability and fulfilment of certain ex ante conditionalities. Each Member State should prepare either a national rural development programme for its entire territory or a set of regional programmes or both a national programme and a set of regional programmes. Each programme should identify a strategy for meeting targets in relation to the Union priorities for rural development and a selection of measures. Programming should comply with Union priorities for rural development, whilst at the same time adapting to national contexts and complementing the other Union policies, in particular the agricultural market policy, the cohesion policy and the common fisheries policy. Member States which opt for preparing a set of regional programmes should also be able to prepare a national framework, without a separate budgetary allocation, in order to facilitate co-ordination among the regions in addressing nation-wide challenges.

(8) Member States should be able to include in their rural development programmes thematic sub-programmes to address specific needs in areas of particular importance to them. Thematic sub-programmes should concern, among others, young farmers, small farms, mountain areas, the creation of short supply chains, women in rural areas and climate change mitigation and adaptation and biodiversity. Thematic sub-programmes should also be used to provide for the possibility to contribute to the restructuring of agricultural sectors which have a strong impact on the development of rural areas. As a means of increasing the efficient intervention of certain thematic sub-programmes Member States should be allowed to provide for higher support rates for certain operations covered by those thematic sub-programmes.

(9) Rural development programmes should identify the needs of the area covered and describe a coherent strategy to meet them in the light of the Union priorities for rural development. That strategy should be based on the setting of targets. The links between the needs identified, the targets set and the choice of measures selected to meet them should be established. Rural development programmes should also contain all the information required to assess their conformity with the requirements of this Regulation.

(10) Targets are to be established in rural development programmes against a common set of target indicators for all Member States and where necessary, against programme specific indicators. In order to facilitate this exercise the areas covered by these indicators should be defined, in line with the Union priorities for rural development. Given the horizontal application of the Union priority for rural development relating to knowledge transfer in agriculture and forestry, interventions under this priority are to be considered as instrumental to the target indicators defined for the remaining Union priorities.

(11) It is necessary to establish certain rules for programming and revising rural development programmes. A simplified procedure should be provided for revisions that do not affect the strategy of the programmes or the respective Union financial contributions.

(12) The evolution and specialisation of agriculture and forestry and the particular challenges faced by micro and small and medium-sized enterprises ("SMEs") in rural areas require an appropriate level of technical and economic training as well as an increased capacity to access and exchange knowledge and information including through the diffusion of best agricultural and forestry production practices. Knowledge transfer and information actions should not only take the form of traditional training courses but should also be adapted to the needs of rural actors. Workshops, coaching, demonstration activities, information actions and also short-term farm and forest-exchange schemes and visits should therefore also be supported. The knowledge and information acquired should enable farmers, forest holders, persons engaged in the food sector and rural SMEs to, in particular, enhance their competitiveness and resource efficiency and improve their environmental performance while at the same time contributing to the sustainability of the rural economy. When providing support to SMEs, Member States have the possibility to give priority to SMEs linked to the agriculture and forestry sectors. In order to ensure that knowledge transfer and information actions are effective in delivering these results it should be required that the providers of knowledge transfer services have all the appropriate capabilities.

(13) Farm advisory services help farmers, young farmers, forest holders, other land managers and SMEs in rural areas to improve the sustainable management and overall performance of their holding or business. Therefore both the setting up of such services and the use of advice by farmers, young farmers, forest holders, other land managers and SMEs should be encouraged. In order to enhance the quality and effectiveness of the advice offered, provision should be made for the minimum qualifications and regular training of advisors. As provided for in Regulation (EU) No 1306/2013 of the European Parliament and of the Council farm advisory services should help farmers to assess the performance of their agricultural holding and to identify the necessary improvements as regards the statutory management requirements, good agricultural and environmental conditions, agricultural practices beneficial to the climate and the environment set out in Regulation (EU) No 1307/2013 of the European Parliament and of the Council and measures at farm level provided for in the rural development programmes aiming at farm modernisation, 

competitiveness building, sectoral integration, innovation, market orientation as well as the promotion of entrepreneurship. Farm advisory services should also help farmers to identify the necessary improvements as regards requirements laid down for the implementation of Article 11(3) of Directive 2000/60/EC of the European Parliament and of the Council ("the Water Framework Directive"), as well as requirements for the implementation of Article 55 of Regulation (EC) No 1107/2009 of the European Parliament and of the Council and Article 14 of Directive 2009/128/EC of the European Parliament and of the Council, in particular in relation to the compliance with the general principles of integrated pest management. Where relevant, advice should also cover occupational or safety standards linked to the farm as well as specific advice for farmers setting up for the first time. It should also be possible for advice to cover the setting up by young farmers, the sustainable development of the economic activities of the holding and local processing and marketing issues, linked to the economic, agricultural and environmental performance of the holding or enterprise. Specific advice may also be provided on climate change mitigation and adaptation, biodiversity, the protection of water, the development of short supply chains, organic farming and health aspects of animal husbandry. When providing support to SMEs, Member States have the possibility to give priority to SMEs linked to the agriculture and forestry sectors. Farm management and farm relief services should help farmers improve and facilitate management of their holding.

(14) Union or national quality schemes, including farm certification schemes for agricultural products and food, provide consumers with assurances on the quality and characteristics of the product or the production process used as a result of the participation of farmers in such schemes, achieve added value for the products concerned and enhance their market opportunities. Farmers and groups of farmers should therefore be encouraged to participate in those schemes. In order to ensure the effective use of EAFRD resources, support should be limited to active farmers within the meaning of Article 9 of Regulation (EU) No 1307/2013. As it is at the moment of entering into such schemes and in the early years of participation that additional costs and obligations imposed on farmers as a result of their participation are not fully remunerated by the market, support should be provided for new participation and should cover a period of no more than five years. Given the special characteristics of cotton as a farm product, quality schemes for cotton should also be covered. Support should also be made available for information and promotion activities concerning products covered by the quality and certification schemes receiving support pursuant to this Regulation.

(15) In order to improve the economic and environmental performance of agricultural holdings and rural enterprises, to improve the efficiency of the agricultural products marketing and processing sector, including the setting up of small scale processing and marketing facilities in the context of short supply chains and local markets, to provide infrastructure needed for the development of agriculture and forestry and to support non-remunerative investments necessary to achieve environmental aims, support should be provided for physical investments contributing to these aims. During the 2007-2013 programming period a variety of measures covered different areas of intervention. In the interest of simplification, but also of allowing beneficiaries to design and realise integrated projects with increased added value, a single measure should cover most types of physical investments. Member States should direct the support to farms eligible for aid for investments related to supporting farm viability based on the results of the strengths, weaknesses, opportunities and threats ("SWOT") analysis as a means of better targeting that aid. In order to facilitate the setting up by young farmers for the first time an additional period of eligibility for investments to comply with Union standards can be granted. In order to foster the implementation of new Union standards, investments related to compliance with those standards should be eligible for an additional period after they have become mandatory for the agricultural holding.

(16) The agricultural sector, more than other sectors, is subject to damage to its productive potential caused by natural disasters, adverse climatic events and catastrophic events. In order to help farm viability and competitiveness in the face of such disasters or events, support should be provided to help farmers restore agricultural potential which has been damaged. Member States should also ensure that no overcompensation of damages occurs as a result of the combination of Union (in particular the risk management measure under this Regulation), national and private compensation schemes.

(17) For the development of rural areas, the creation and development of new economic activity in the form of new farms, the diversification into non-agricultural activities including the provision of services to agriculture and forestry, activities related to health care, social integration and tourist activities are essential. It is also possible for diversification into non-agricultural activities to address the sustainable management of cynegetic resources. A farm and business development measure should facilitate the initial establishment of young farmers and the structural adjustment of their agricultural holding after the initial setting up. Furthermore, diversification of farmers into non-agricultural activities and the setting up and development of non-agricultural SMEs in rural areas should be promoted. That measure should also encourage entrepreneurship of women in rural areas. The development of small farms, which are potentially economically viable should also be encouraged. In order to ensure the viability of new economic activities supported under that measure, support should be made conditional on the submission of a business plan. Support for a business start up should cover only the initial period of the life of such a business and should not become an operating aid. Therefore, where Member States opt to grant aid in instalments, such instalments should be made over a period of no more than five years. In addition, in order to encourage the restructuring of the agricultural sector, support, in the form of annual or one-off payments, should be provided for farmers eligible for the small farmers scheme established by Title V of Regulation (EU) No 1307/2013 ("the small farmer's scheme") who commit to transfer their entire holding and the corresponding payment entitlements to another farmer. 

In order to address problems of young farmers related to access to land Member States are also able to offer this support in combination with other forms of support, for example, through the use of financial instruments.

(18) SMEs are the backbone of the rural economy of the Union. Farm and non-agricultural business development should be aimed at employment promotion and the setting up of quality jobs in rural areas, the maintenance of existing jobs, the reduction of seasonality fluctuations in employment, the development of non-agricultural sectors outside agriculture and agricultural and food processing. At the same time it should foster business integration and local inter-sectoral links. Projects that bring together agriculture and, rural tourism through the promotion of sustainable and responsible tourism in rural areas, and natural and cultural heritage should be encouraged as well as renewable energy investments.

(19) The development of local infrastructure and local basic services in rural areas, including leisure and culture services, the renewal of villages and activities aimed at the restoration and upgrading of the cultural and natural heritage of villages and rural landscapes is an essential element of any effort to realise the growth potential and to promote the sustainability of rural areas. Support should therefore be granted to operations with that aim, including access to Information and Communication Technologies and the development of fast and ultra-fast broadband. In line with those objectives, the development of services and infrastructure leading to social inclusion and reversing trends of social and economic decline and depopulation of rural areas should be encouraged. In order to achieve the maximum effectiveness of such support, covered operations should be implemented in accordance with plans for the development of municipalities and their basic services, where such plans exist, elaborated by one or more rural communes. In order to create synergies and to improve co-operation, operations should also, where relevant, promote rural-urban links. Member States have the possibility to give priority to investments by community-led local development partnerships, and to projects managed by local community organisations.

(20) Forestry is an integral part of rural development and support for sustainable and climate friendly land use should include forest area development and sustainable management of forests. During the 2007-2013 programming period, a variety of measures covered different types of support for forestry investments and management. In the interests of simplification and of allowing beneficiaries to design and realise integrated projects with increased added value, a single measure should cover all types of support for forestry investments and management. That measure should cover the extension and improvement of forest resources through the afforestation of land and the creation of agroforestry systems combining extensive agriculture with forestry systems. It should also cover the restoration of forests damaged by fire or other natural disasters and catastrophic events and relevant prevention measures; investments in forestry technologies and in the processing; the mobilising and marketing of forest products aimed at improving the economic and environmental performance of forest holdings; and non- remunerative investments which improve ecosystem and climate resilience and environmental value of forest ecosystems. Support should not distort competition and should be market neutral. As a result, limitations relating to the size and legal status of beneficiaries should be imposed. Preventive actions against fires should be undertaken in areas classified by Member States as medium or high fire risk. All preventive actions should be part of a forest protection plan. In the case of an action undertaken for the restoration of damaged forest potential, the occurrence of a natural disaster should be subject to formal recognition by a scientific public organisation. 

The forestry measure should be adopted in the light of undertakings given by the Union and Member States at international level, and should be based on Member States' national or sub-national forest plans or equivalent instruments which should take into account the commitments made in the Ministerial Conferences on the Protection of Forests in Europe. It should contribute to the implementation of the Union Forest Strategy in line with the Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions entitled "A new EU Forest Strategy: for forests and the forest-based sector".

(21) Producer groups and organisations help farmers to face together the challenges posed by increased competition and consolidation of downstream markets in relation to the marketing of their products including in local markets. The setting up of producer groups and organisations should therefore be encouraged. In order to ensure the best use of limited financial resources only producer groups and organisations that qualify as SMEs should benefit from support. Member States have the possibility to give priority to producer groups and organisations of quality products covered by the measure on quality schemes for agricultural products and foodstuffs in this Regulation. In order to ensure that the producer group or organisation becomes a viable entity, a business plan should be submitted to the Member States, as a condition for granting support to a producer group or organisation. In order to avoid providing operating aid and in order to maintain the incentive role of the support, the maximum duration of the support should be limited to five years from the date of recognition of the producer group or organisation on the basis of its business plan.

(22) Agri-environment-climate payments should continue to play a prominent role in supporting the sustainable development of rural areas and in responding to society's increasing demands for environmental services. They should further encourage farmers and other land managers to serve society as a whole by introducing or continuing to apply agricultural practices that contribute to climate change mitigation and adaptation and that are compatible with the protection and improvement of the environment, the landscape and its features, natural resources, and the soil and genetic diversity. In that context the conservation of genetic resources in agriculture and the additional needs of farming systems that are of high nature value should be given specific attention. Payments should contribute to covering additional costs and income foregone resulting from the commitments undertaken and should only cover commitments going beyond relevant mandatory standards and requirements, in accordance with the "polluter pays principle". Member States should also ensure that payments to farmers do not lead to double funding under this Regulation and Regulation (EU) No 1307/2013. In many situations the synergies resulting from commitments undertaken jointly by a group of farmers multiply the environmental and climate benefit. However, joint actions involve additional transaction costs which should be compensated adequately. In addition, in order to ensure that farmers and other land managers are in a position to correctly implement the commitments they have undertaken, Member States should endeavour to provide them with the required skills and knowledge. 

Member States should maintain the level of efforts made during the 2007-2013 programming period and should be required to spend a minimum of 30 % of the total contribution from the EAFRD to each rural development programme on climate change mitigation and adaptation as well as environmental issues. Such spending should be made through agri-environment-climate and organic farming payments and payments to areas facing natural or other specific constraints, through payments for forestry, payments for Natura 2000 areas and climate and environment-related investment support.

(23) Payments to farmers for the converting to, or maintaining, organic farming should encourage them to participate in such schemes thereby responding to the increasing demand of society for the use of environmentally friendly farm practices and for high standards of animal welfare. In order to increase synergy in biodiversity, benefits delivered by the organic farming measure, collective contracts or co-operation between farmers should be encouraged to cover larger, adjacent areas. In order to avoid a large-scale return by farmers to conventional farming support should be given to both conversion and maintenance measures. Payments should contribute to covering additional costs incurred and income foregone as a result of the commitment and should cover only commitments that go beyond relevant mandatory standards and requirements. Member States should also ensure that payments to farmers do not lead to double funding under this Regulation and Regulation (EU) No 1307/2013. In order to ensure the effective use of EAFRD resources, support should be limited to active farmers within the meaning of Article 9 of Regulation (EU) No 1307/2013.

(24) Support should continue to be granted to farmers and forest holders to help address specific disadvantages in the areas concerned resulting from the implementation of Directive 2009/147/EC of the European Parliament and of the Council and Council Directive 92/43/EEC and in order to contribute to the effective management of Natura 2000 sites. Support should also be made available to farmers to help address disadvantages in river basin areas resulting from the implementation of the Water Framework Directive. Support should be linked to specific requirements described in the rural development programme that go beyond relevant mandatory standards and requirements. Member States should also ensure that payments to farmers do not lead to double funding under this Regulation and Regulation (EU) No 1307/2013. Furthermore, the specific needs of Natura 2000 areas should be taken into account by Member States in the overall design of their rural development programmes.

(25) Payments to farmers in mountain areas or in other areas facing natural or other specific constraints should, by encouraging continued use of agricultural land, contribute to maintaining the countryside as well as to maintaining and promoting sustainable farming systems. In order to ensure the efficiency of such support, payments should compensate farmers for income foregone and additional costs linked to the disadvantage of the area concerned. In order to ensure the effective use of EAFRD resources, support should be limited to active farmers within the meaning of Article 9 of Regulation (EU) No 1307/2013.

(26) In order to ensure the efficient use of Union funds and equal treatment for farmers across the Union, mountain areas and areas facing natural or other specific constraints should be defined in accordance with objective criteria. In the case of areas facing natural constraints, those criteria should be bio-physical and underpinned by robust scientific evidence. Transitional arrangements should be adopted in order to facilitate the phasing-out of payments in areas that, as a result of the application of these criteria, will no longer be considered to be areas facing natural constraints.

(27) Farmers should continue to be encouraged to adopt high standards of animal welfare by providing support for farmers who undertake to adopt standards of animal husbandry, which go beyond the relevant mandatory standards. In order to ensure the effective use of EAFRD resources, support should be limited to active farmers within the meaning of Article 9 of Regulation (EU) 1307/2013.

(28) Payments should continue to be granted to forest holders who provide environment-friendly or climate-friendly forest conservation services by undertaking commitments to enhance biodiversity, preserve high-value forest ecosystems, improve their climate change mitigation and adaptation potential, and reinforce the protective value of forests with respect to soil erosion, maintenance of water resources and natural hazards. In that context, specific attention should be paid to the conservation and promotion of forest genetic resources. Payments should be granted for forest environmental commitments going beyond relevant mandatory standards established by national law.

(29) During the 2007-2013 programming period the only type of co-operation which was explicitly supported under rural development policy was co-operation for the development of new products, processes and technologies in the agriculture and food sector and the forestry sector. Support for that type of co-operation is still necessary but should be adapted in order to better meet the requirements of the knowledge economy. In that context, there should be the possibility for projects by a single operator to be financed under that measure, on condition that the results obtained are disseminated, thus achieving the aim of diffusing new practices, processes or products. In addition, it has become clear that supporting a much broader range of types of co-operation, with a wider range of beneficiaries, from smaller operators to larger ones, can contribute to achieving the objectives of rural development policy by helping operators in rural areas overcome the economic, environmental and other disadvantages of fragmentation. Therefore, that measure should be widened. Support to small operators for organising joint work processes and sharing facilities and resources should help them to be economically viable despite their small scale. Support for horizontal and vertical co-operation among actors in the supply chain, as well as for promotion activities in a local context, should catalyse the economically rational development of short supply chains, local markets and local food chains. Support for joint approaches to environmental projects and practices should help to produce greater and more consistent environmental and climate benefits than those which can be delivered by individual operators acting without reference to others (for example, through practices applied on larger, unbroken areas of land). 

Support should be provided in various forms. Clusters and networks are particularly relevant to the sharing of expertise as well as the development of new and specialised expertise, services and products. Pilot projects are important tools for testing the commercial applicability of technologies, techniques and practices in different contexts, and adapting them where necessary. Operational groups are a pivotal element of the European Innovation Partnership ("EIP") for agricultural productivity and sustainability. Another important tool lies in local development strategies operating outside the framework of LEADER local development – between public and private actors from rural and urban areas. Unlike under the LEADER approach, it is possible for such partnerships and strategies to be limited to one sector or to relatively specific development aims, including those mentioned above. Member States have the possibility to give priority to co-operation among entities involving primary producers. Inter-branch organisations should also be eligible for support under this measure. Such support should be limited to a period of seven years except for collective environmental and climate action in duly justified cases.

(30) Nowadays, farmers are exposed to increasing economic and environmental risks as a consequence of climate change and increased price volatility. In this context, the effective management of risks has an increased importance for farmers. Consequently, a risk management measure should be set up to assist farmers in addressing the most common risks faced by them. That measure should therefore help farmers to cover the premiums they pay for crop, animal and plant insurance as well as help with the setting up of mutual funds and the compensation paid by such funds to farmers for losses suffered as a result of adverse climatic events, the outbreak of animal or plant diseases, pest infestation or environmental incidents. It should also include an income stabilisation tool in the form of a mutual fund to support farmers facing a severe drop in their incomes. In order to ensure that farmers receive equal treatment across the Union, that competition is not distorted and that the international obligations of the Union are respected, specific conditions should be provided for the granting of support under these measures. In order to ensure the effective use of EAFRD resources, support should be limited to active farmers within the meaning of Article 9 of Regulation (EU) No 1307/2013.

(31) The LEADER approach for local development has, over a number of years, proven its effectiveness in promoting the development of rural areas by fully taking into account the multi-sectoral needs for endogenous rural development through its bottom-up approach. LEADER should therefore be continued in the future and its application should remain compulsory for rural development programmes at national and/or regional level.

(32) Support for LEADER local development from the EAFRD should also cover inter-territorial co-operation projects between groups within a Member State or transnational co-operation projects between groups in several Member States or co-operation projects between groups in Member States and in third countries.

(33) In order to enable partners in rural areas who do not yet apply LEADER to test and prepare for the design and implementation of a local development strategy, a "LEADER start-up kit" should also be financed. Support should not be conditional on the submission of a local development strategy.

(34) Investments are common to many of the rural development measures under this Regulation and may relate to operations of a very diverse nature. In order to ensure clarity in the implementation of those operations certain common rules for all investments should be laid down. Those common rules should define the types of expenditure that may be considered to be investment expenditure and should ensure that only such investments that create new value in agriculture receive support. In order to facilitate the implementation of investment projects Member States should have the possibility to pay advances. To ensure the effectiveness, fairness and sustainable impact of EAFRD assistance, rules should be laid down to ensure that investments related to operations are durable and that EAFRD support is not used to distort competition.

(35) It should be possible for the EAFRD to support investments in irrigation to provide economic and environmental benefits, provided that the sustainability of the irrigation concerned is ensured. Consequently, in every case, support should be granted only if a river basin management plan is in place in the area concerned as required by the Water Framework Directive, and if there is already water metering in place at the level of the investment or it is put in place as part of the investment. Investments in improvements to existing irrigation infrastructure or equipment should lead to a minimum gain in terms of water efficiency, expressed as a potential water saving. If the water body affected by the investment is under stress for reasons related to water quantity as set out in the analytical framework established by the Water Framework Directive, half of the gain in terms of water efficiency should be translated into a real reduction in water use at the level of the supported investment, in order to reduce the stress on the water body concerned. Certain cases should be set out in which it is not possible or necessary for the requirements of potential or effective water savings to apply, including those concerning investments in recycling or re-using water. In addition to supporting investments in improvements to existing equipment provision should be made for the EAFRD to support investments in new irrigation subject to the findings of an environmental analysis. With certain exceptions, support should, however, not be granted for new irrigation where the affected water body is already under stress, in view of the very high risk that granting support in such circumstances would worsen existing environmental problems.

(36) Certain area-related measures under this Regulation require beneficiaries to undertake commitments for at least five years. During that period, it is possible that changes occur to the situation of either the holding or of the beneficiary. Rules should therefore be laid down in order to determine what should happen in such cases.

(37) Certain measures under this Regulation make support conditional upon beneficiaries undertake commitments that go beyond a relevant baseline defined in terms of mandatory standards or requirements. In view of possible changes to the law during the period of the commitments resulting in the modification of the baseline, provision should be made the contracts concerned to be revised in order to ensure continued compliance with that condition.

(38) In order to ensure that financial resources for rural development are used in the best possible way and to target measures under rural development programmes in accordance with the Union priorities for rural development and in order to guarantee equal treatment of applicants, Member States should establish selection criteria for the selection of projects. Exception to this rule should be made only for payments under agri-environmental-climate, organic farming, Natura 2000 and the Water Framework Directive, areas facing natural or other specific constraints, animal welfare, forest-environmental and climate services and risk management related measures. When applying the selection criteria the size of the operation should be taken into account in accordance with the principle of proportionality.

(39) The EAFRD should support, through technical assistance, actions relating to the implementation of rural development programmes, including the costs related to the protection of symbols and abbreviations relating to Union quality schemes for participation in which support may be granted under this Regulation and costs of the Member States for the delimitation of areas facing natural constraints.

(40) The networking of national networks, organisations and administrations involved in the various stages of programme implementation, organised in the context of the European network for rural development, has proven that it can play a very important role in improving the quality of rural development programmes by increasing the involvement of stakeholders in the governance of rural development as well as in informing the broader public of its benefits. It should, therefore, be financed as part of technical assistance at Union level. To take account of the specific needs of evaluation, a European evaluation capacity for rural development should be set up as part of the European network for rural development in order to bring together all actors involved and thereby to facilitate the exchange of expertise in the field.

(41) The EIP for agricultural productivity and sustainability should contribute to the achievement of the Europe 2020 objectives of smart, sustainable and inclusive growth. It is important that it brings together all relevant actors at Union, national and regional levels, presenting new ideas to Member States on how to streamline, simplify and better coordinate existing instruments and initiatives and complement them with new actions where necessary.

(42) In order to contribute to the achievement of the aims of the EIP for agricultural productivity and sustainability a EIP network should be set up in order to network operational groups, advisory services and researchers involved in the implementation of actions targeting innovation in agriculture. It should be financed as part of technical assistance at Union level.

(43) Member States should reserve a portion of the total amount of each rural development programme devoted to technical assistance in order to finance the setting up and operation of a national rural network that brings together organisations and administrations involved in rural development, including the EIP, with the aim of increasing their involvement in the implementation of the programme and improving the quality of rural development programmes. To this end, national rural networks should prepare and implement an action plan.

(44) Rural development programmes should provide for innovative actions promoting a resource-efficient, productive and low-emission agricultural sector, with the support of the EIP for agricultural productivity and sustainability. The EIP should aim to promote a faster and wider transposition of innovative solutions into practice. The EIP should create added value by enhancing the uptake and effectiveness of innovation-related instruments and enhancing synergies between them. The EIP should fill gaps by better linking research and practical farming.

(45) The implementation of innovative projects in the context of the EIP for agricultural productivity and sustainability should be undertaken by operational groups that bring together farmers, forest managers, rural communities, researchers, NGOs, advisors, businesses and other actors concerned by innovation in the agricultural sector. In order to ensure that the results of such projects benefit the sector as a whole, those results in the field of innovation and knowledge exchanges within the Union and with third countries should be disseminated.

(46) Provision should be made for the determination of the total amount of Union support for rural development under this Regulation for the period from 1 January 2014 to 31 December 2020, in accordance with the Multi-annual Financial Framework for the period 2014 to 2020. The appropriations available should be indexed on a flat-rate basis for programming.

(47) In order to facilitate the management of EAFRD funds, a single contribution rate for support from the EAFRD to rural development programming should be set in relation to public expenditure in the Member States. In order to take account of their particular importance or nature, specific contribution rates should be set in relation to certain types of operations. In order to mitigate the specific constraints resulting from the level of development the remoteness and insularity, an appropriate EAFRD contribution rate should be set for less developed regions, the outermost regions referred to in the TFEU and the smaller Aegean islands, as well as transition regions.

(48) Member States should take all steps necessary to ensure that their rural development measures are verifiable and controllable, including putting in place adequate provisions. To that end, the Managing Authority and Paying Agency should provide an ex ante assessment and undertake to assess measures throughout the implementation of the programme. Measures that do not comply with that condition should be adjusted.

(49) The Commission and Member States should take all steps necessary to ensure the sound management of rural development programmes. In this context the Commission should carry out adequate measures and controls and the Member States should take measures to guarantee the sound functioning of their management systems.

(50) A single Managing Authority should be responsible for the management and implementation of each rural development programme. Its duties should be specified in this Regulation. The Managing Authority should be able to delegate part of its duties whilst retaining responsibility for the efficiency and correctness of management. Where a rural development programme contains thematic sub-programmes the Managing Authority should be able to designate another body to carry out the management and implementation of that sub-programme in relation to the financial allocations that have been identified for it in the programme whilst ensuring sound financial management of those sub-programmes. Where a Member State has more than one programme to manage, a coordination body can be set up to ensure consistency.

(51) Each rural development programme should be subject to regular monitoring of the implementation of the programme and of progress towards the established targets of the programme. Since demonstrating and improving the impact and effectiveness of actions under the EAFRD also depends on appropriate evaluation during the preparation and implementation of a programme and its completion, a monitoring and evaluation system should be set up jointly by the Commission and the Member States with the purpose of demonstrating the progress and assessing the impact and efficiency of rural development policy implementation.

(52) In order to ensure that information can be aggregated at Union level, a set of common indicators should form part of that monitoring and evaluation system. Key information on the implementation of rural development programmes should be recorded and maintained electronically as a means to facilitate data aggregation. Beneficiaries should therefore be required to provide the minimum necessary information that is needed for monitoring and evaluation.

(53) The responsibility for monitoring the programme should be shared between the Managing Authority and a Monitoring Committee set up for that purpose. The Monitoring Committee should be responsible for the monitoring of the effectiveness of the implementation of the programme. To that end, its responsibilities should be specified.

(54) The monitoring of the programme should involve the drawing up of an annual implementation report to be sent to the Commission.

(55) In order to improve its quality and demonstrate its achievements, each rural development programme should be subject to evaluation.

(56) Articles 107, 108 and 109 TFEU should apply to the support for the rural development measures under this Regulation. Nevertheless, given the specific characteristics of the agricultural sector, those TFEU provisions should not apply to rural development measures concerning operations falling within the scope of Article 42 TFEU, that are carried out under and in conformity with this Regulation or to payments made by Member States, intended to provide additional national financing for rural development operations for which Union support is granted and which fall within the scope of Article 42 TFEU.

(57) Moreover, with a view to ensuring consistency with the rural development measures eligible for Union support and in order to simplify procedures, payments made by the Member States, intended to provide additional national financing for rural development operations for which Union support is granted and which fall within the scope of Article 42 TFEU, should be included in the rural development programme for assessment and approval in accordance with the provisions of this Regulation. In order to ensure that additional national financing is not implemented unless it has been authorised by the Commission, the Member State concerned should be precluded from putting its proposed additional financing for rural development into effect until it has been approved. Payments made by Member States intended to provide additional national financing for rural development operations for which Union support is granted and which fall outside the scope of Article 42 TFEU should be notified to the Commission pursuant to Article 108(3) TFEU, unless they fall under a regulation, adopted pursuant to Council Regulation 994/98, and Member States should be precluded from putting them into effect until that notification procedure has resulted in a final approval by the Commission.

(58) In order to provide an efficient and secure exchange of data of common interest as well as to record, maintain and manage key information and report on monitoring and evaluation, an electronic information system should be established.

(59) Union law on the protection of individuals with regard to the processing of personal data and on the free movement of such data, in particular Directive 95/46/EC of the European Parliament and of the Council and Regulation (EC) No 45/2001 of the European Parliament and of the Council should apply.

(60) In order to supplement or amend certain non-essential elements of this Regulation, the power to adopt delegated acts in accordance with Article 290 TFEU should be delegated to the Commission. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level. The Commission, when preparing and drawing up delegated acts, should ensure a simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and to the Council.

(61) That empowerment should cover: the conditions under which a legal person is considered to be a young farmer and the setting of a period of grace for the acquisition of skills; the duration and content of farm and forest exchange schemes and farm and forest visits. It should also cover: the specific Union schemes under Article 16(1)(a) and the characteristics of groups of producers and types of actions that may receive support under paragraph 2 of Article 16, as well as the setting of conditions to prevent distortion of competition to prevent discrimination against products and to exclude commercial brands from support.

(62) In addition, that empowerment should cover: the minimum content of business plans and the criteria to be used by Member states for setting the thresholds referred to in Article 19(4); the definition and the minimum environmental requirements for afforestation and the creation of woodland; the conditions applicable to agri-environment-climate commitments to extensify livestock farming, rear local breeds in danger of being lost to farming or preserve plant genetic resources under threat of genetic erosion, as well as the definition of eligible operations for the conservation and for the sustainable use and development of genetic resources. It should also cover: the calculation method to be used in order to avoid double funding of the practices referred to in Article 43 of Regulation (EU) No 1307/2013 for the agri-environment-climate, organic farming, measures under Natura 2000 and measures under the Water Framework Directive; the definition of the areas in which animal welfare commitments shall provide upgraded standards of production methods; the type of operations eligible for support under the conservation and promotion of forest genetic resources; the specification of the characteristics of pilot projects, clusters, networks, short supply chains and local markets that will be eligible for support under the co-operation measure, as well as the conditions for granting aid to the types of operation listed under that measure.

(63) Furthermore, that empowerment should cover: the minimum and maximum duration of commercial loans to mutual funds under the risk management measure under this Regulation; the conditions under which costs related to leasing contracts or second hand equipment may be considered as eligible investment expenditure, as well as the definition of types of renewable energy infrastructure eligible for investment; the conditions applicable to conversion or adjustment of commitments under the measures referred to in Articles 28, 29, 33 and 34, as well as the definition of other situations in which reimbursement of the aid shall not be required. It should also cover: the review of the ceilings set out in Annex I; the conditions under which support approved by the Commission under Regulation (EC) No 1698/2005 may be integrated into support provided for under this Regulation, including for technical assistance and for the ex-post evaluations, in order to facilitate a smooth transition from the system established by Regulation (EC) No 1698/2005 to the system established by this Regulation. In order to take account of the Treaty of Accession of the Republic of Croatia those delegated acts should also cover, for Croatia, the transition from support for rural development under Council Regulation (EC) No 1085/2006, where necessary.

(64) In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission, in relation to the content of rural development programmes and national frameworks, the approval of programmes and of modifications thereto, the procedures and timetables for approval of programmes, the procedures and timetables for the approval of modifications to programmes and to national frameworks, including their entry in to force and frequency of submission, the rules on payment methods for participants' costs for knowledge transfer and information actions, specific conditions for the implementation of rural development measures, the structure and operation of networks set up by this Regulation, the information and publicity requirements, the adoption of the monitoring and evaluation system and the rules for the operation of the information system, and the rules concerning the presentation of the annual implementation reports. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and the Council.

(65) The European Data Protection Supervisor was consulted and adopted an opinion on 14 December 2011.

(66) Due to the urgency of preparing the smooth implementation of the measures envisaged, this Regulation should enter into force on the day of its publication in the Official Journal of the European Union.

(67) The new support scheme provided for by this Regulation replaces the support scheme set up by Regulation (EC) No 1698/2005. Regulation (EC) No 1698/2005 should therefore be repealed,
HAVE ADOPTED THIS REGULATION:

TITLE I
OBJECTIVES AND STRATEGY
CHAPTER I
Subject matter and Definitions
Subject matter
Article 1 

1. This Regulation lays down general rules governing support for rural development. It sets out the objectives to which rural development policy is to contribute and the relevant priorities for rural development. It outlines the strategic context for rural development policy and defines the measures to be adopted in order to implement rural development policy. In addition, it lays down rules on programming, networking, management, monitoring and evaluation.
2. This Regulation complements the provisions of Part Two of Regulation (EU) No 1303/2013 of the European Parliament and the Council.
Definitions
Article 2 

1. For the purposes of this Regulation, the definitions of "programme", "operation", "beneficiary", "community-led local development strategy", "public expenditure", "SMEs", "completed operation" and "financial instruments" as laid down or referred to in Article 2 and of "less developed regions" and "transition regions" as laid down in points (a) and (b)point (b) in Article 90(2) of Regulation (EU) No 1303/2013 as it had effect immediately before IP completion day apply.In addition, the following definitions shall apply:
(a) "programming": means the process of organisation, decision making and allocation of financial resources in several stages, with the involvement of partners, intended to implement, on a multi-annual basis, action to achieve the priorities for rural development.
(b) "region" means a territorial unit corresponding to level 1 or 2 of the Nomenclature of territorial units for statistics (NUTS level 1 and 2) within the meaning of Regulation (EC) No 1059/2003 of the European Parliament and of the Councilas it had effect immediately before  IP completion day;
(c) "measure" means a set of operations contributing to one or more of the ... priorities for rural development;
(d) "support rate" means the rate of public contribution to an operation;
(e) "transaction cost" means an additional cost linked to fulfilling a commitment, but not directly attributable to its implementation or not included in the costs or income foregone that are compensated directly; and which can be calculated on a standard cost basis;
(f) "agricultural area" means any area taken up by arable land, permanent grassland and permanent pasture or permanent crops as defined in Article 4 of Regulation (EU) No 1307/2013Article 2(1) of Regulation (EU) No 1306/2013;
(g) "economic losses" means any additional cost incurred by a farmer as a result of exceptional measures taken by the farmer with the objective of reducing supply on the market concerned or any substantial loss of production;
(h) "adverse climatic event" means weather conditions, such as frost, storms and hail, ice, heavy rain or severe drought, which can be assimilated to a natural disaster;
(i) "animal diseases" means diseases mentioned in the list of animal diseases established by the World Organisation for Animal Health or in Annex II of Regulation (EU) No 652/2014;
(j) "environmental incident" means a specific occurrence of pollution, contamination or degradation in the quality of the environment which is related to a specific event and is of limited geographical scope; but does not cover general environmental risks not connected with a specific event, such as climate change or atmospheric pollution;
(k) "natural disaster": means a naturally occurring event of a biotic or abiotic nature that leads to important disturbances in agricultural production systems or forest structures, eventually causing important economic damage to the farming or forestry sectors;
(l) "catastrophic event": means an unforeseen event of a biotic or abiotic nature caused by human action that leads to important disturbances in agricultural production systems or forest structures, eventually causing important economic damage to the farming or forestry sectors;
(m) "short supply chain": means a supply chain involving a limited number of economic operators, committed to co-operation, local economic development, and close geographical and social relations between producers, processors and consumers;
(n) "young farmer" means a person who is no more than 40 years of age at the moment of submitting the application, possesses adequate occupational skills and competence and is setting up for the first time in an agricultural holding as head of that holding; the setting up may be done solely or jointly with other farmers, irrespective of its legal form;
(o) "thematic objectives": means the thematic objectives defined in Article 9 of Regulation (EU) No 1303/2013;
(p) "Common Strategic Framework" ("CSF")": means the Common Strategic Framework referred to in Article 10 of Regulation (EU) No 1303/2013;
(q) "cluster" means a grouping of independent undertakings, including start-ups, small, medium and large undertakings as well as advisory bodies and/or research organisations - designed to stimulate economic/ innovative activity by promoting intensive interactions, the sharing of facilities and the exchange of knowledge and expertise, as well as contributing effectively to knowledge transfer, networking and information dissemination among the undertakings in the cluster;
(r) "forest" means an area of land spanning more than 0,5 hectares with trees higher than 5 meters and a canopy cover of more than 10 percent, or trees able to reach these thresholds in situ; and does not include land that is predominantly under agricultural or urban land use, subject to paragraph 2;
(s) "date of setting up" means the date when the applicant performs or completes (an) action(s) related to the setting up referred to in point (n);
(t)) “Directive 2000/29” means Directive 2000/29/EC of 8 May 2000 on protective measures against the introduction into the Community of organisms harmful to plants or plant products and against their spread within the Community;
(u)) “Directive 2009/147” means Directive 2009/147/EC of the European Parliament and of the Council on the conservation of wild birds;
(v)) ‘appropriate authority’ means—
(i)) the relevant authority for the constituent nation in which the regulations apply, or
(ii)) the Secretary of State:(aa)) in relation to regulations applying in Scotland, if consent is given by the Scottish Ministers;(bb)) in relation to regulations applying in Northern Ireland, if consent is given by the Department of Agriculture, Environment and Rural Affairs.“appropriate authority” means the relevant authority for the constituent nation in which the regulations apply.
2. The relevant authority or region may choose to apply a forest definition, other than the one in point (r) of paragraph 1, based on existing national law or inventory system. The relevant authorities or regions shall provide such definition in the rural development programme;
3. In order to ensure a coherent approach in the treatment of beneficiaries and to take into account the need for an adaptation period, as regards the definition of young farmer laid down in paragraph 1(n), the appropriate authority may make regulations concerning the conditions under which a legal person may be considered to be a 'young farmer', and the setting of a grace period for the acquisition of occupational skills .
(4. In these Regulations, references to Regulation (EU) No 1303/2013 are references to Regulation (EU) No 1303/2013, as amended by the European Structural and Investment Funds Common Provisions (Amendment) (EU Exit) Regulations 2019.
CHAPTER II
Mission, objectives and priorities
Mission
Article 3 
Support provided through rural development programmes shall contribute to promoting sustainable rural development in a manner that complements other support provided to the agriculture and fisheries sectors and to less developed regions. It shall contribute to the development of an agricultural sector that is more territorially and environmentally balanced, climate-friendly and resilient and competitive and innovative. It shall also contribute to the development of rural territories.
Objectives
Article 4 
Within the overall framework of agricultural support, support for rural development, including for activities in the food and non-food sector and in forestry, shall contribute to achieving the following objectives:

((a)) fostering the competitiveness of agriculture;
((b)) ensuring the sustainable management of natural resources, and climate action;
((c)) achieving a balanced territorial development of rural economies and communities including the creation and maintenance of employment.
Union priorities for rural development
Article 5 
The achievement of the objectives of rural development shall be pursued through the following six priorities for rural development, which reflect the relevant Thematic Objectives of the CSF:

((1)) fostering knowledge transfer and innovation in agriculture, forestry, and rural areas with a focus on the following areas:

((a)) fostering innovation, cooperation, and the development of the knowledge base in rural areas;
((b)) strengthening the links between agriculture, food production and forestry and research and innovation, including for the purpose of improved environmental management and performance;
((c)) fostering lifelong learning and vocational training in the agricultural and forestry sectors.
((2)) enhancing farm viability and competitiveness of all types of agriculture in all regions and promoting innovative farm technologies and the sustainable management of forests, with a focus on the following areas:

((a)) improving the economic performance of all farms and facilitating farm restructuring and modernisation, notably with a view to increasing market participation and orientation as well as agricultural diversification;
((b)) facilitating the entry of adequately skilled farmers into the agricultural sector and, in particular, generational renewal.
((3)) promoting food chain organisation, including processing and marketing of agricultural products, animal welfare and risk management in agriculture, with a focus on the following areas:

((a)) improving competitiveness of primary producers by better integrating them into the agri-food chain through quality schemes, adding value to agricultural products, promotion in local markets and short supply circuits, producer groups and organisations and inter-branch organisations;
((b)) supporting farm risk prevention and management.
((4)) restoring, preserving and enhancing ecosystems related to agriculture and forestry, with a focus on the following areas:

((a)) restoring, preserving and enhancing biodiversity, including in Natura 2000 areas, and in areas facing natural or other specific constraints, and high nature value farming, as well as the state of European landscapes;
((b)) improving water management, including fertiliser and pesticide management;
((c)) preventing soil erosion and improving soil management.
((5)) promoting resource efficiency and supporting the shift towards a low carbon and climate resilient economy in agriculture, food and forestry sectors, with a focus on the following areas:

((a)) increasing efficiency in water use by agriculture;
((b)) increasing efficiency in energy use in agriculture and food processing;
((c)) facilitating the supply and use of renewable sources of energy, of by-products, wastes and residues and of other non food raw material, for the purposes of the bio-economy;
((d)) reducing green house gas and ammonia emissions from agriculture;
((e)) fostering carbon conservation and sequestration in agriculture and forestry;
((6)) promoting social inclusion, poverty reduction and economic development in rural areas, with a focus on the following areas:

((a)) facilitating diversification, creation and development of small enterprises, as well as job creation;
((b)) fostering local development in rural areas;
((c)) enhancing the accessibility, use and quality of information and communication technologies (ICT) in rural areas.
All those priorities shall contribute to the cross-cutting objectives of innovation, environment and climate change mitigation and adaptation. Programmes may address fewer than six priorities if justified on the basis of the analysis of the situation in terms of strengths, weaknesses, opportunities and threats ("the SWOT") and the ex ante evaluation. At least four priorities shall be addressed by each programme. ....
Other focus areas may be included in programmes in order to pursue one of the priorities if justified and measurable.
TITLE II
PROGRAMMING
CHAPTER I
Programming content
Rural development programmes
Article 6 
Support for rural development shall be provided in accordance with rural development programmes. These programmes shall implement a strategy to meet the priorities for rural development through a set of measures as defined in Title III. Support for rural development must be provided to further the objectives and the priorities of rural development.
Thematic sub-programmes
Article 7 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Content of rural development programmes
Article 8 

1. In addition to the elements referred to in Article 27 of Regulation (EU) No 1303/2013, each rural development programme shall include:
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) a SWOT analysis of the situation and an identification of the needs that have to be addressed in the geographical area covered by the programme.The analysis shall be structured around the ... priorities for rural development. Specific needs concerning the environment, climate change mitigation and adaptation and innovation shall be assessed across ... priorities for rural development, in order to identify relevant responses in these three areas at the level of each priority;
(c) a description of the strategy which demonstrates that:
((i)) appropriate targets are set for each of the focus areas of the ... priorities for rural development included in the programme, based on the common indicators referred to in Article 69 and, where necessary, on programme specific indicators;
((ii)) relevant combinations of measures are selected in relation to each of the focus areas of the ... priorities for rural development included in the programme, based on a sound intervention logic ... the analysis referred to in point (b);
((iii)) the allocation of financial resources to the measures of the programme is justified and adequate to achieve the targets set;
((iv)) specific needs linked with specific conditions at regional or sub-regional level are taken into account and concretely addressed through adequately designed combinations of measures ...;
((v)) an appropriate approach towards innovation with a view to achieving the ... priorities for rural development, including the EIP for agricultural productivity and sustainability, towards the environment, including the specific needs of Natura 2000 areas, and towards climate change mitigation and adaptation is integrated into the programme;
((vi)) measures have been taken to ensure the availability of sufficient advisory capacity on the regulatory requirements and on actions related to innovation;
(d) for each ex ante conditionality, established in accordance with Article 19, and part II of Annex XI to Regulation (EU) No 1303/2013 for the general ex ante conditionalities, and in accordance with Annex V to this Regulation, an assessment of which of the ex ante conditionalities are applicable to the programme and which of them are fulfilled at the date of submission of ... the programme. Where the applicable ex ante conditionalities are not fulfilled, the programme shall contain a description of the actions to be taken, the bodies responsible and a timetable for such actions ....
(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(f) a description of each of the measures selected;
(g) the evaluation plan referred to in Article 56 of Regulation (EU) No 1303/2013. The relevant authority shall provide sufficient resources to address the needs which have been identified and to ensure proper monitoring and evaluation;
(h) a financing plan comprising:
((i)) a table setting out, in accordance with Article 58(4) and Article 58a(2) of this Regulation, the total core contribution planned for each year. That table shall indicate separately the additional resources as referred to in Article 58a(2) of this Regulation. When applicable, that table shall also indicate separately, within the total core contribution, the appropriations provided for the less developed regions and the funds transferred to the support for rural development pursuant to Article 7(2) of Regulation (EU) No 1307/2013. ...;
((ii)) a table setting out, for each measure, for each type of operation with a specific core contribution rate, for the type of operation referred to in Article 37(1) and Article 39a ... and for technical assistance, the total ...  contribution planned and the applicable core contribution rate. Where applicable, that table shall indicate separately the core contribution rate for less developed regions and for other regions;
(i) an indicator plan, broken down into focus areas, comprising the targets referred to in point (i) of Article 8(1)(c) and the planned outputs and planned expenditure of each rural development measure selected in relation to a corresponding focus area;
(j) where applicable, a table on additional national financing per measure in accordance with Article 82;
(k) where applicable, the list of aid schemes falling under Article 81(1) to be used for the implementation of the programmes;
(l) information on the complementarity with other support provided to the agricultural and fisheries sectors;
(m) programme implementing arrangements including:
((i)) the designation ... of all authorities referred to in Article 65(2) and, for information, a summary description of the management and control structure;
((ii)) a description of the monitoring and evaluation procedures, as well as the composition of the Monitoring Committee;
((iii)) the provisions to ensure that the programme is publicised, including through the national rural network referred to in Article 54;
((iv)) a description of the approach laying down principles with regard to the establishment of selection criteria for operations and local development strategies that takes into account relevant targets; in this context the relevant authority may provide for priority to be given to SMEs linked to the agriculture and forestry sector.
((v)) in relation to local development, where applicable, a description of the mechanisms to ensure coherence between activities envisaged under the local development strategies, the "Cooperation" measure referred to in Article 35, and the "Basic services and village renewal in rural areas" measure referred to in Article 20 including urban-rural links;
(n) the actions taken to involve the partners referred to in Article 5 of Regulation (EU) No 1303/2013 and a summary of the results of the consultation of the partners;
(o) where applicable, the structure of the national rural network as referred to in Article 54(3), and provisions for its management, which would constitute the basis for its annual actions plans.
2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. The appropriate authority may make regulations laying down rules for the presentation of the elements described in paragraph 1 in rural development programmes.
CHAPTER II
Preparation, approval and modification of rural development programmes
Ex ante conditionalities
Article 9 
In addition to the general ex ante conditionalities, referred to in part II of Annex XI to Regulation (EU) No 1303/2013, the ex ante conditionalities referred to in Annex V to this Regulation shall apply to the ... programming, if relevant and applicable to the specific objectives pursued within the priorities of the programme.
Approval of rural development programmes
Article 10 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendment of rural development programmes
Article 11 
The appropriate authority may make regulations to supplement or amend Commission Implementing Decision C(2015) 855, Commission Implementing Decision C(2015) 3488, Commission Implementing Decision C(2015) 3489 or Commission Implementing Decision C(2015) 6018 as applicable for the purpose of amending programmes concerning one or more of the following:
(a) a change in the:
(i) programme strategy through a change of more than 50% in the quantified target linked to a focus area;
(ii) contribution rate of one or more measures;
(iii) annual distribution of the contribution at programme level;
(b) the introduction or withdrawal of measures or other types of operations;
(c) transfer of funds between measures.
Rules on amendments
Article 12 
The appropriate authority may make regulations setting the frequency of amendments that may be made during the programming period.
TITLE III
RURAL DEVELOPMENT SUPPORT
CHAPTER I
Measures
Measures
Article 13 
Each rural development measure shall be programmed to contribute specifically to the achievement of one or more ... priorities for rural development. An indicative list of measures of particular relevance to the ... priorities is set out in Annex VI.
Knowledge transfer and information actions
Article 14 

1. Support under this measure shall cover vocational training and skills acquisition actions, demonstration activities and information actions. Vocational training and skills acquisition actions may include training courses, workshops and coaching.Support may also cover short-term farm and forest management exchanges as well as farm and forest visits.
2. Support under this measure shall be for the benefit of persons engaged in the agricultural, food and forestry sector, land managers and other economic actors which are SMEs operating in rural areas.The training or other knowledge transfer and information action provider shall be the beneficiary of the support.
3. Support under this measure shall not include courses of instruction or training, which form part of normal education programmes or systems at secondary or higher levels.Bodies providing knowledge transfer and information services shall have the appropriate capacities in the form of staff qualifications and regular training to carry out this task.
4. Eligible costs under this measure shall be the costs of organising and delivering the knowledge transfer or information action. Infrastructure installed as a result of demonstration may be used after the operation is completed. In the case of demonstration projects, support may also cover relevant investment costs. Costs for travel, accommodation and per diem expenses of participants as well as the cost of the replacement of farmers shall also be eligible for support. All costs identified under this paragraph shall be paid to the beneficiary.
5. In order to ensure that farm and forest exchange schemes and visits are clearly demarcated in relation to similar actions under other ... schemes, the appropriate authority may make regulations concerning the duration and content of farm and forest exchange schemes and farm and forest visits.
6. The appropriate authority may make regulations laying down the rules on payment modalities for participants' costs, including through the use of vouchers or other similar forms....
Advisory services, farm management and farm relief services
Article 15 

1. Support under this measure shall be granted in order to:
(a) help farmers, young farmers as defined in this Regulation, forest holders, other land managers and SMEs in rural areas benefit from the use of advisory services for the improvement of the economic and environmental performance as well as the climate friendliness and resilience of their holding, enterprise and/or investment;
(b) promote the setting up of farm management, farm relief and farm advisory services, as well as forestry advisory services, including the Farm Advisory System referred to in Articles 12 to 14 of Regulation (EU) No 1306/2013;
(c) promote the training of advisors.
2. The beneficiary of support provided in accordance with points (a) and (c) of paragraph 1 shall be either the provider of advice or training or the Managing Authority. Where the Managing Authority is the beneficiary, the provider of advice or training shall be selected by a body that is functionally independent from the Managing Authority. Support under point (b) of paragraph 1 shall be granted to the authority or body selected to set up the farm management, farm relief, farm advisory or forestry advisory service.
3. The authorities or bodies selected to provide advice shall have appropriate resources in the form of regularly trained and qualified staff and advisory experience and reliability with respect to the fields in which they advise. The providers under this measure shall be chosen through a selection procedure open to both public and private bodies. That selection procedure shall be objective and shall exclude candidates with conflicts of interest.When providing advice, advisory services shall respect the non-disclosure obligations referred to in Article 13(2) of Regulation (EU) No 1306/2013.
3a. For the purpose of this Article, the relevant authority shall, in accordance with Article 65(1), carry out all checks at the level of the provider of advice or training.
4. Advice to the individual farmers, young farmers as defined in this Regulation and other land managers shall be linked to at least one ... priority for rural development and shall cover as a minimum one of the following elements:
(a) obligations at farm level deriving from the statutory management requirements and/or standards for good agricultural and environmental conditions provided for in Chapter I of Title VI of Regulation (EU) No 1306/2013;
(b) where applicable, the agricultural practices beneficial for the climate and the environment as laid down in Chapter 3 of Title III of Regulation (EU) No 1307/2013 and the maintenance of the agricultural area as referred to in point (c) of Article 4(1) of Regulation (EU) No 1307/2013;
(c) measures at farm level provided for in rural development programmes aiming at farm modernisation, competitiveness building, sectoral integration, innovation and market orientation, as well as the promotion of entrepreneurship;
(d) requirements arising from any programme of measures for river basin districts which has been implemented in consequence of Article 11(3) of Directive 2000/60/EC establishing a framework for Community action in the field of water policy (‘the Water Framework Directive’), which is to be construed as if references to  “Community legislation” were references to  “the law as it applies in the constituent nation” and references to  “Member States” were references to  “The competent authority”;
(e) requirements which apply by virtue of Article 55 of Regulation (EC) No 1107/2009, in particular any requirement which applies as a consequence of the implementation of Articles 14(1), (2), (4) and (5) of Directive 2009/128/EC of the European Parliament and of the Council establishing a framework for Community action to achieve the sustainable use of pesticides, which are to be construed as if references to  “Member States” were references to  “the competent authority”; or
(f) where relevant, occupational safety standards or safety standards linked to the farm;
(g) specific advice for farmers setting up for the first time.Advice may also cover other issues and in particular the information related to climate change mitigation and adaptation, biodiversity and the protection of water as laid down in Annex I to Regulation (EU) No 1306/2013 or issues linked to the economic and environmental performance of the agricultural holding, including competitiveness aspects. This may include advice for the development of short supply chains, organic farming and health aspects of animal husbandry.
5. Advice to forest holders shall cover, as a minimum, the relevant requirements which have been implemented as a consequence of Directives 92/43, 2009/147 and 2000/60. It may also cover issues linked to the economic and environmental performance of the forest holding.
6. Advice to SMEs may cover issues linked to the economic and environmental performance of the enterprise.
7. Where duly justified and appropriate, advice may be provided partly in a group, while taking into account the situations of the individual user of advisory services.
8. Support under points (a) and (c) of paragraph 1 shall be limited to the maximum amounts laid down in Annex II. Support under point (b) of paragraph 1 shall be degressive over a maximum period of five years from setting up.
Quality schemes for agricultural products, and foodstuffs
Article 16 

1. Support under this measure shall cover new participation, or participation in the five preceding years, by farmers and groups of farmers, in:
(a) quality schemes established under the following Regulations and provisions:
((i)) Regulation (EU) 1151/2012 of the European Parliament and of the Council;
((ii)) Council Regulation (EC) No 834/2007;
((iii)) Regulation (EC) No 110/2008 of the European Parliament and of the Council;
((iv)) Council Regulation (EEC) No 1601/91;
((v)) Part II, Title II, Chapter I, Section 2 of Council Regulation (EU) No 1308/2013 as concerns wine.
(b) quality schemes, including farm certification schemes, for agricultural products, cotton or foodstuffs, recognised by the relevant authority as complying with the following criteria:
((i)) the specificity of the final product under such schemes is derived from clear obligations to guarantee any of the following:

— specific product characteristics,
— specific farming or production methods, or
— a quality of the final product that goes significantly beyond the commercial commodity standards as regards public, animal or plant health, animal welfare or environmental protection;
((ii)) the scheme is open to all producers;
((iii)) the scheme involves binding product specifications and compliance with those specifications is verified by public authorities or by an independent inspection body;
((iv)) the scheme is transparent and assures complete traceability of products; or
(c) voluntary agricultural product certification schemes recognised by the relevant authority as meeting the ... best practice guidelines for the operation of voluntary certification schemes relating to agricultural products and foodstuffs.
2. Support under this measure may also cover costs arising from information and promotion activities implemented by groups of producers, concerning products covered by a quality scheme receiving support in accordance with paragraph 1 of this Article. ...
3. Support under paragraph 1 shall be granted as an annual incentive payment, the level of which shall be determined in accordance with the level of the fixed costs arising from participation in supported schemes, for a maximum duration of five years.In the case of initial participation prior to the application for support under paragraph 1, the maximum duration of five years shall be reduced by the number of years which have elapsed between the initial participation in a quality scheme and the time of the application for the support.For the purposes of this paragraph, ‘fixed costs’ means the costs incurred for entering a supported quality scheme and the annual contribution for participating in that scheme, including, where necessary, expenditure on checks required to verify compliance with the specifications of the scheme.For the purposes of this Article, ‘farmer’ means active farmer within the meaning of Article 9 of Regulation (EU) No 1307/2013 ....
4. Support shall be limited to the maximum support rate and amount laid down in Annex II.
5. In order to take into account new statutory requirements that may affect support under this measure and in order to ensure consistency with other EU-derived domestic legislation or  assimilated direct  legislation on promotion of agricultural measures and prevent distortion of competition, the appropriate authority may make regulations concerning, the specific ... schemes to be covered by point (a) of paragraph 1 and the characteristics of groups of producers and the types of actions that may receive support under paragraph 2, the setting of conditions to prevent discrimination against certain products; and the setting of conditions on the basis of which commercial brands are to be excluded from support.
Investments in physical assets
Article 17 

1. Support under this measure shall cover tangible and/or intangible investments which:
(a) improve the overall performance and sustainability of the agricultural holding;
(b) concern the processing, marketing and/or development of agricultural products covered by Annex I to the TFEU or cotton, except fishery products; the output of the production process may be a product not covered by that Annex; where support is provided in the form of financial instruments, the input may also be a product not covered by that Annex on condition that the investment contributes to one or more of the ... priorities for rural development;
(c) concern infrastructure related to the development, modernisation or adaptation of agriculture and forestry, including access to farm and forest land, land consolidation and improvement, and the supply and saving of energy and water; or
(d) are non -productive investments linked to the achievement of agri- environment -climate objectives as pursued under this regulation, including biodiversity conservation status of species and habitat as well as enhancing the public amenity value of a Natura 2000 area or other high nature value systems to be defined in the programme.
2. Support under point (a) of paragraph 1 shall be granted to farmers or groups of farmers.In the case of investments to support farm restructuring, the relevant authority shall target the support to farms in accordance with the SWOT analysis carried out in relation to the ... priority for rural development "enhancing farm viability and competitiveness of all types of agriculture in all regions and promoting innovative farm technologies and sustainable management of forests".
3. Support under points (a) and (b) of paragraph 1 shall be limited to the maximum support rates laid down in Annex II. Those maximum rates may be increased for young farmers, for collective investments, including those linked to a merger of Producer Organisations, and for integrated projects involving support under more than one measure, for investments in areas facing natural and other specific constraints as referred to in Article 32, for investments linked to operations under Articles 28 and 29 and for operations supported in the framework of the EIP for agricultural productivity and sustainability in accordance with the support rates laid down in Annex II. However, the maximum combined support rate may not exceed 90 %.
4. Support under points (c) and (d) of paragraph 1 shall be subject to the support rates laid down in Annex II.
5. Support may be granted to young farmers setting up for the first time in an agricultural holding as head of the holding in respect of investments to comply with ... standards applying to agricultural production, including occupational safety. Such support may be provided for a maximum of 24 months from the date of setting up as set out in the rural development programme, or until the actions defined in the business plan referred to in Article 19(4) are completed.
6. Where  the law as it applies in the constituent nation  imposes new requirements on farmers support may be granted for investments to comply with those requirements for a maximum of 12 months from the date on which they become mandatory for the agricultural holding.
Restoring agricultural production potential damaged by natural disasters and catastrophic events and introduction of appropriate prevention actions
Article 18 

1. Support under this measure shall cover:
(a) investments in preventive actions aimed at reducing the consequences of probable natural disasters, adverse climatic events and catastrophic events;
(b) investments for the restoration of agricultural land and production potential damaged by natural disasters, adverse climatic events and catastrophic events.
2. Support shall be granted to farmers or groups of farmers. Support may also be granted to public entities where a link between the investment undertaken by such entities and agricultural production potential is established.
3. Support under point (b) of paragraph 1 shall be subject to the formal recognition by the competent public authorities ... that a natural disaster has occurred and that this disaster or requirements which apply by virtue of Council Directive 2000/29/EC to eradicate or contain a plant disease or pest have caused the destruction of at least 30 % of the relevant agricultural potential.
4. No support under this measure shall be granted for loss of income resulting from the natural disaster or catastrophic event.The relevant authority shall ensure that overcompensation as a result of the combination of this measure and support under Regulation 508/2014 or direct payment support or private insurance schemes is avoided.
5. Support under point (a) of paragraph 1 shall be limited to the maximum support rates laid down in Annex II.
Farm and business development
Article 19 

1. Support under this measure shall cover:
(a) business start-up aid for:
((i)) young farmers;
((ii)) non-agricultural activities in rural areas;
((iii)) the development of small farms;
(b) investments in creation and development of non-agricultural activities;
(c) annual payments or one-off payments for farmers eligible for the small farmers scheme established by Title V of Regulation (EU) No 1307/2013 ("the small farmers scheme") who permanently transfer their holding to another farmer;
2. Support under point (a)(i) of paragraph 1 shall be granted to young farmers.Support under point (a)(ii) of paragraph 1 shall be granted to farmers or members of a farm household who diversify into non-agricultural activities and to micro- and small- enterprises and natural persons in rural areas.Support under point (a)(iii) of paragraph 1 shall be granted to small farms as defined by the relevant authority.Support under point (b) of paragraph 1 shall be granted to micro- and small enterprises and natural persons in rural areas, as well as to farmers or members of a farm household.Support under point (c) of paragraph 1 shall be granted to farmers eligible to participate in the small farmers scheme who, at the time of submitting their application for support, have been so eligible for at least one year and who undertake to permanently transfer their entire holding and the corresponding payment entitlements to another farmer. Support shall be paid from the date of the transfer until 31 December 2020 or calculated in respect of that period and paid in the form of a one-off payment.
3. Any natural or legal person or a group of natural or legal persons, whatever legal status is granted to the group and its members by national law, may be considered to be a member of a farm household, with the exception of farm workers. Where a legal person or a group of legal persons is considered to be a member of the farm household, that member must exercise an agricultural activity on the farm at the time of the support application.
4. The application for support under point (a)(i) of paragraph 1 shall be submitted at the latest 24 months after the date of setting up.Support under point (a) of paragraph 1 shall be conditional on the submission of a business plan. Implementation of the business plan shall start at the latest within nine months from the date of the decision granting the aid. The business plan shall have a maximum duration of five years.The business plan shall provide that the young farmer is to comply with Article 9 of Regulation (EU) No 1307/2013, as applicable in the relevant authority concerned, within 18 months from the date of the decision granting the aid.The relevant authority shall define the action(s) referred to in point (s) of Article 2(1) in the rural development programmes.The relevant authority shall define upper and lower thresholds per beneficiary or holding for allowing access to support under points (a)(i) and (a)(iii) of paragraph 1. The lower threshold for support under point (a)(i) of paragraph 1 shall be higher than the upper threshold for support under point (a)(iii) of paragraph 1. Support shall be limited to holdings falling within the definition of micro and small enterprises.
4a. By way of derogation from Article 37(1) of Regulation (EU) No 1303/2013, support under point (a)(i) of paragraph 1 of this Article may also be provided in the form of financial instruments, or as a combination of grants and financial instruments.
5. Support under point (a) of paragraph 1 shall be paid in at least two instalments. Instalments may be degressive. The payment of the last instalment under points (a)(i) and (a)(ii) of paragraph 1 shall be conditional upon the correct implementation of the business plan.
6. The maximum amount of support under point (a) of paragraph 1 is laid down in Annex II. The relevant authority shall define the amount of support under points (a)(i) and (a)(ii) of paragraph 1 also taking into account the socio-economic situation of the programme area.
7. Support under point (c) of paragraph 1 shall be equal to 120 % of the annual payment that the beneficiary is eligible to receive under the small farmers scheme.
8. In order to ensure the efficient and effective use of support for rural development, the appropriate authority may make regulations laying down the minimum content of business plans and the criteria to be used ... for setting the thresholds referred to in paragraph 4 of this Article.
Basic services and village renewal in rural areas
Article 20 

1. Support under this measure shall cover, in particular:
(a) the drawing up and updating of plans for the development of municipalities and villages in rural areas and their basic services and of protection and management plans relating to Natura 2000 sites and other areas of high nature value;
(b) investments in the creation, improvement or expansion of all types of small scale infrastructure, including investments in renewable energy and energy saving;
(c) broadband infrastructure, including its creation, improvement and expansion, passive broadband infrastructure and provision of access to broadband and public e-government solutions;
(d) investments in the setting up, improvement or expansion of local basic services for the rural population, including leisure and culture, and the related infrastructure;
(e) investments for public use in recreational infrastructure, tourist information and small scale tourism infrastructure;
(f) studies and investments associated with the maintenance, restoration and upgrading of the cultural and natural heritage of villages, rural landscapes and high nature value sites, including related socio-economic aspects, as well as environmental awareness actions;
(g) investments targeting the relocation of activities and conversion of buildings or other facilities located within or close to rural settlements, with a view to improving the quality of life or increasing the environmental performance of the settlement.
2. Support under this measure shall only concern small-scale infrastructure, as defined by each relevant authority in the programme. However, rural development programmes may provide for specific derogations from this rule for investments in broadband and renewable energy. In this case, clear criteria ensuring complementarity with support under other support under Regulation 508/2014 or direct payment support shall be provided.
3. Investments under paragraph 1 shall be eligible for support where the relevant operations are implemented in accordance with plans for the development of municipalities and villages in rural areas and their basic services, where such plans exist and shall be consistent with any relevant local development strategy.
4. Paragraphs 2 and 3 shall not apply where support is provided in the form of financial instruments.
Investments in forest area development and improvement of the viability of forests
Article 21 

1. Support under this measure shall concern:
(a) afforestation and creation of woodland;
(b) establishment of agroforestry systems;
(c) prevention and restoration of damage to forests from forest fires, natural disasters and catastrophic events, including pest and disease outbreaks, and climate related threats;
(d) investments improving the resilience and environmental value as well as the mitigation potential of forest ecosystems;
(e) investments in forestry technologies and in the processing, the mobilising and the marketing of forest products.
2. ...For holdings above a certain size, to be determined by the relevant authority in the programme, support shall be conditional on the presentation of the relevant information from a forest management plan or equivalent instrument in line with sustainable forest management as defined by the Ministerial Conference on the Protection of Forests in Europe of 1993.
Afforestation and creation of woodland
Article 22 

1. Support under point (a) of Article 21(1) shall be granted to public and private land-holders-and their associations and shall cover the costs of establishment and an annual premium per hectare to cover the costs of agricultural income foregone and maintenance, including early and late cleanings, for a maximum period of twelve years. In the case of state-owned land, support may only be granted if the body managing such land is a private body or a municipality.Support for afforestation of land owned by public authorities or for fast growing trees shall cover only the costs of establishment.
2. Both agricultural and non-agricultural land shall be eligible. Species planted shall be adapted to the environmental and climatic conditions of the area and shall comply with minimum environmental requirements. No support shall be granted for the planting of trees for short rotation coppicing, Christmas trees or fast growing trees for energy production. In areas where afforestation is made difficult by severe pedo-climatic conditions support may be provided for planting other perennial woody species such as shrubs or bushes suitable to the local conditions.
3. In order to ensure that afforestation of agricultural land is in line with the aims of environmental policy, the appropriate authority may make regulations concerning the definition of the minimum environmental requirements referred to in paragraph 2 of this Article.
Establishment, regeneration or renovation of agroforestry systems
                  
Article 23 

1. Support under point (b) of Article 21(1) shall be granted to private land-holders, municipalities and their associations and shall cover the costs of establishment, regeneration and/or renovation and an annual premium per hectare to cover the costs of maintenance for a maximum period of five years.
2. For the purposes of this Article, agroforestry systems means land use systems in which trees are grown in combination with agriculture on the same land. The minimum and maximum number of trees per hectare shall be determined by the relevant authority taking account of local pedo-climatic and environmental conditions, forestry species and the need to ensure sustainable agricultural use of the land.
3. Support shall be limited to the maximum support rate laid down in Annex II.
Prevention and restoration of damage to forests from forest fires and natural disasters and catastrophic events
Article 24 

1. Support under point (c) Article 21(1) shall be granted to private and public forest- holders and other private law and public bodies and their associations and shall cover the costs for:
(a) the establishment of protective infrastructure. In the case of firebreaks, support may also cover aid contributing to maintenance costs. No support shall be granted to agricultural related activities in areas covered by agri-environment commitments;
(b) local, small scale prevention activities against fire or other natural hazards; including the use of grazing animals;
(c) establishing and improving forest fire, pest and diseases monitoring facilities and communication equipment; and
(d) restoring forest potential damaged from fires and other natural disasters including pests, diseases as well as catastrophic events and climate change related events.
2. In the case of preventive actions concerning pests and diseases, the risk of a relevant disaster occurrence must be supported by scientific evidence and acknowledged by scientific public organisations. Where relevant, the list of species of organisms harmful to plants which may cause a disaster must be provided in the programme.Eligible operations shall be consistent with the forest protection plan established by the relevant authority. For holdings above a certain size, to be determined by the relevant authority in the programme, support shall be conditional on the presentation of the relevant information from a forest management plan or equivalent instrument in line with sustainable forest management as defined by the Ministerial Conference on the Protection of Forests in Europe of 1993 detailing the preventive objectives.Forest areas classified as medium to high forest fire risk according to the forest protection plan established by the relevant authority shall be eligible for support relating to forest fire prevention.
3. Support under point (d) of paragraph 1 shall be subject to the formal recognition by the competent public authorities of the relevant authority that a natural disaster has occurred and that that disaster, or requirements which apply as a consequence of the implementation of Council Directive 2000/29/EC to eradicate or contain a plant disease or pest has caused the destruction of at least 20 % of the relevant forest potential.
4. No support under this measure shall be granted for loss of income resulting from the natural disaster.The relevant authority shall ensure that overcompensation as a result of the combination of this measure and other ... support instruments or private insurance schemes is avoided.
Investments improving the resilience and environmental value of forest ecosystems
Article 25 

1. Support under point (d) of Article 21(1) shall be granted to natural persons, private and public forest-holders, and other private law and public bodies and their associations.
2. Investments shall be aimed at the achievement of commitments for environmental aims, for the provision of ecosystem services and/or for the enhancement of the public amenity value of forest and wooded land in the area concerned or the improvement of the climate change mitigation potential of ecosystems, without excluding economic benefits in the long term.
Investments in forestry technologies and in processing, in mobilising and in the marketing of forest products
Article 26 

1. Support under point (e) of Article 21(1) shall be granted to private forest- holders, municipalities and their associations and to SMEs for investments enhancing forestry potential or relating to processing, mobilising and marketing adding value to forest products. ...
2. Investments related to the improvement of the economic value of forests shall be justified in relation to expected improvements to forests on one or more holdings and may include investments for soil-friendly and resource -friendly harvesting machinery and practices.
3. Investments related to the use of wood as a raw material or energy source shall be limited to all working operations prior to industrial processing.
4. Support shall be limited to the maximum support rates laid down in Annex II.
Setting -up of producer groups and organisations
Article 27 

1. Support under this measure shall be granted in order to facilitate the setting up of producer groups and organisations in the agriculture and forestry sectors for the purpose of:
(a) adapting the production and output of producers who are members of such groups or organisations to market requirements;
(b) jointly placing goods on the market, including preparation for sale, centralisation of sales and supply to bulk buyers;
(c) establishing common rules on production information, with particular regard to harvesting and availability; and
(d) other activities that may be carried out by producer groups and organisations, such as the development of business and marketing skills and the organisation and facilitation of the innovation processes.
2. Support shall be granted to producer groups and organisations which are officially recognised by the competent authority on the basis of a business plan. It shall be limited to producer groups and organisations that are SMEs.The relevant authority shall verify that the objectives of the business plan have been reached within five years after recognition of the producer group or organisation.
3. The support shall be paid on the basis of a business plan as a flat rate aid in annual instalments for no more than five years following the date on which the producer group or organisation was recognised, and shall be degressive. It shall be calculated on the basis of the annual marketed production of the group or organisation. The relevant authority shall pay the last instalment only after having verified the correct implementation of the business plan.In the first year  the relevant authority  may pay support to the producer group or organisation calculated on the basis of the average annual value of the marketed production of its members over the three years before they entered the group or organisation. In the case of producer groups and organisations in the forestry sector, support shall be calculated on the basis of the average marketed production of the members of the group or organisation over the last five years before the recognition, excluding the highest and the lowest value.
4. Support shall be limited to the maximum rates and amounts laid down in Annex II.
5. The relevant authority may continue support for setting up of producer groups even after they have been recognised as producer organisations under the conditions of Regulation (EU) No 1308/2013.
Agri-environment-climate
Article 28 

1. The relevant authority  shall make support under this measure available throughout their territories, in accordance with their national, regional or local specific needs and priorities. This measure shall aim to preserve and promote the necessary changes to agricultural practices that make a positive contribution to the environment and climate. Its inclusion in rural development programmes shall be compulsory at national and/or regional level.
2. Agri-environment-climate payments shall be granted to farmers, groups of farmers or groups of farmers and other land-managers who undertake, on a voluntary basis, to carry out operations consisting of one or more agri-environment-climate commitments on agricultural land to be defined by the relevant authority, including but not limited to the agricultural area defined under Article 2 of this Regulation. Where duly justified to achieve environmental objectives, agri-environment-climate payments may be granted to other land-managers or groups of other land-managers.
3. Agri-environment-climate payments cover only those commitments going beyond ... the relevant criteria and minimum activities as established pursuant to points (b)(ii) and (b)(iii) of Article 2(1) of Regulation (EU) 1306/2013, and relevant minimum requirements for fertiliser and plant protection products use as well as other relevant mandatory requirements established by national law. All such mandatory requirements shall be identified in the programme.
4. The relevant authority  shall endeavour to ensure that persons undertaking to carry out operations under this measure are provided with the knowledge and information required to implement such operations. They may do so through, inter alia, commitment-related expert advice and/or by making support under this measure conditional on obtaining relevant training.
5. Commitments under this measure shall be ordinarily undertaken for at least three years. However, a commitment for a shorter period may be permitted where this is necessary and justified, and commitments may be extended after the termination of the period.
6. Payments shall be granted annually and shall compensate beneficiaries for all or part of the additional costs and income foregone resulting from the commitments made. Where necessary, they may also cover transaction costs up to a value of 20 % of the premium paid for the agri-environment-climate commitments. Where commitments are undertaken by groups of farmers or groups of farmers and other land managers, the maximum level shall be 30 %....In duly justified cases for operations concerning environmental conservation, support may be granted at a flat-rate or as a one-off payment per unit for commitments to renounce commercial use of areas, calculated on the basis of additional costs incurred and income foregone.
7. Where required in order to ensure the efficient application of the measure, the relevant authority may use the procedure referred to in Article 49(3) for the selection of beneficiaries.
8. Support shall be limited to the maximum amounts laid down in Annex II.No support under this measure may be granted for commitments that are covered under the organic farming measure.
9. Support may be provided for the conservation and for the sustainable use and development of genetic resources in agriculture, including non-indigenous resources, for operations not covered by the provisions under paragraphs 1 to 8. Such commitments may be carried out by beneficiaries other than those referred to in paragraph 2.
10. In order to ensure that agri-environment-climate commitments are defined in accordance with the ... priorities for rural development, the appropriate authority may make regulations concerning the following:
(a) the conditions applicable to commitments to extensify livestock farming;
(b) the conditions applicable to commitments to rear local breeds that are in danger of being lost to farming or to preserve plant genetic resources that are under threat of genetic erosion, and
(c) the definition of eligible operations under paragraph 9.
11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Organic farming
Article 29 

1. Support under this measure shall be granted, per hectare of agricultural area, to farmers or groups of farmers who undertake, on a voluntary basis, to convert to or maintain organic farming practices and methods as defined in Regulation (EC) No 834/2007 and who are active farmers within the meaning of Article 9 of Regulation (EU) No 1307/2013, as applicable in the relevant authority concerned.
2. Support shall only be granted for commitments going beyond the relevant mandatory standards established pursuant to Chapter I of Title VI of Regulation (EU) No 1306/2013, the relevant criteria and minimum activities as established pursuant to points (c)(ii) and (c)(iii) of Article 4(1) of Regulation (EU) No 1307/2013, relevant minimum requirements for fertiliser and plant protection products use as well as other relevant mandatory requirements established by national law. All such requirements shall be identified in the programme.
3. Commitments under this measure shall be made for a period of fiveone to seven years. Where support is granted for conversion to organic farming the relevant authority may determine a shorter initial period corresponding to the period of conversion. Where support is granted for the maintenance of organic farming, the relevant authority may provide in their rural development programmes for annual extension after the termination of the initial period. For new commitments concerning maintenance that directly follow the commitment performed in the initial period, the relevant authority may determine a shorter period in their rural development programmes....
4. Payments shall be granted annually and shall compensate beneficiaries for all or part of the additional costs and income foregone resulting from the commitments made. Where necessary they may also cover transaction costs to a value of up to 20 % of the premium paid for the commitments. Where commitments are undertaken by groups of farmers, the maximum level shall be 30 %.When calculating the payments referred to in the first subparagraph of this paragraph, the relevant authority shall deduct the amount necessary in order to exclude double funding of the practices referred to in Article 43 of Regulation (EU) No 1307/2013. The relevant authority may calculate the deduction as a fixed, average amount applied to all beneficiaries concerned carrying out the sub-measures concerned.
5. Support shall be limited to the maximum amounts laid down in Annex II.
6. In order to ensure that double funding, as referred to in the second subparagraph of paragraph 4 is excluded, the appropriate authority may make regulations laying down the calculation method to be used.
Natura 2000 and Water Framework Directive payments
Article 30 

1. Support under this measure shall be granted annually per hectare of agricultural area or per hectare of forest in order to compensate beneficiaries for additional costs and income foregone resulting from disadvantages in the areas concerned, related to requirements on beneficiaries which apply as a consequence of the implementation of Directives 92/43/EEC and 2009/147/EC and the Water Framework Directive.When calculating the payments related to the support referred to in the first subparagraph, the relevant authority shall deduct the amount necessary in order to exclude double funding of the practices referred to in Article 43 of Regulation (EU) No 1307/2013. The relevant authority may calculate the deduction as a fixed, average amount applied to all beneficiaries concerned carrying out the sub-measures concerned.
2. Support shall be granted to farmers and to private forest holders and associations of private forest holders. In duly justified cases it may also be granted to other land managers.
3. Support to farmers, linked to Directives 92/43/EEC and 2009/147/EC shall only be granted in relation to disadvantages resulting from requirements that go beyond the good agricultural and environmental condition provided for in Article 94 and Annex II of Council Regulation (EU) No 1306/2013 and the relevant criteria and minimum activities established pursuant to points (c)(ii) and (c)(iii) of Article 4(1) of Regulation (EU) No 1307/2013.
4. Support to farmers, linked to the Water Framework Directive shall only be granted in relation to specific requirements that:
(a) were introduced by the Water Framework Directive, are in accordance with the programmes of measures of the river basin management plans for the purpose of achieving the environmental objectives of that Directive and go beyond the measures required to implement other law as it applies in the constituent nation for the protection of water;
(b) go beyond the statutory management requirements and the good agricultural and environmental condition provided for in Chapter I of Title VI of Regulation (EU) No 1306/2013 and the relevant criteria and minimum activities as established pursuant to points (c)(ii) and (c)(iii) of Article 4(1) of Regulation (EU) No 1307/2013;
(c) go beyond the level of protection of the law as it applied in the constituent nation existing at the time the Water Framework Directive was adopted ... ; and
(d) impose major changes in type of land use, and/or major restrictions in farming practice resulting in a significant loss of income.
5. The requirements referred to in paragraphs 3 and 4 shall be identified in the programme.
6. The following areas shall be eligible for payments:
(a) Natura 2000 agricultural and forest areas designated pursuant to Directives 92/43/EEC and 2009/147/EC;
(b) other delimited nature protection areas with environmental restrictions applicable to farming or forests which contribute to the implementation of Article 10 of Directive 92/43/EEC, provided that, per rural development programme, those areas do not exceed 5 % of the designated Natura 2000 areas covered by its territorial scope;
(c) agricultural areas included in river basin management plans according to the Water Framework Directive.
7. Support shall be limited to the maximum amounts laid down in Annex II.
8. In order to ensure that double funding, as referred to in the second subparagraph of paragraph 1 is excluded, the appropriate authority may make regulations laying down the calculation method to be used.
Payments to areas facing natural or other specific constraints
Article 31 

1. Payments to farmers in mountain areas and other areas facing natural or other specific constraints shall be granted annually per hectare of agricultural area in order to compensate farmers for all or part of the additional costs and income foregone related to the constraints for agricultural production in the area concerned.Additional costs and income foregone shall be calculated in comparison to areas which are not affected by natural or other specific constraints....When calculating additional costs and income foregone, the relevant authority may, where duly justified, differentiate the level of payment taking into account:
— the severity of the identified permanent constraint affecting farming activities;
— the farming system.
2. Payments shall be granted to farmers who undertake to pursue their farming activity in the areas designated pursuant to Article 32 ...  .
3. Payments shall be fixed between the minimum and maximum amount laid down in Annex II. These payments may be increased in duly substantiated cases taking into account specific circumstances to be justified in the rural development programmes.
4. The relevant authority shall provide for degressivity of payments above a threshold level of area per holding, to be defined in the programme, except if the grant covers only the minimum payment per hectare per year as laid down in Annex II.In the case of a legal person, or a group of natural or legal persons, the relevant authority may apply the degressivity of payments at the level of the members of these legal persons or groups on condition that:
(a) the law as it applies in the constituent nation provides for the individual members to assume rights and obligations comparable to those of individual farmers who have the status of head of holding, in particular as regards their economic, social and tax status; and
(b) those individual members have contributed to strengthening the agricultural structures of the legal persons or groups concerned.
5. In addition to the payments provided for in paragraph 2,  the relevant authority  may grant payments under this measure between 2014 and 2020 to beneficiaries in areas which were eligible under Article 36(a)(ii) of Regulation (EC) No 1698/2005 during the 2007-2013 programming period. For beneficiaries in areas that are no longer eligible following the new delimitation referred to in Article 32(3), those payments shall be degressive over a maximum period of four years. That period shall start on the date that the delimitation in accordance with Article 32(3) is completed and at the latest in 2019. Those payments shall start at no more than 80 % of the average payment fixed in the programme for the programming period 2007-2013 in accordance with Article 36(a)(ii) of Regulation (EC) No 1698/2005, and shall end in 2020 at the latest at no more than 20 %. When the application of degressivity results in the level of the payment reaching EUR 25, the relevant authority can continue payments at this level until the phasing out period is completed.By way of derogation from the first subparagraph, where degressive payments start only in the year 2019, those payments shall start at no more than 80% of the average payment fixed in the 2014-2020 programming period. The payment level shall be established in such a way that the end-level in 2020 is half the starting level.Following completion of the delimitation, beneficiaries in the areas that remain eligible shall receive full payment under this measure.
6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Designation of areas facing natural and other specific constraints
Article 32 

1. The relevant authority shall, on the basis of paragraphs 2, 3 and 4, designate areas eligible for payments provided for in Article 31 under the following categories:
(a) mountain areas;
(b) areas, other than mountain areas, facing significant natural constraints; and
(c) other areas affected by specific constraints.
2. In order to be eligible for payments under Article 31, mountain areas shall be characterized by a considerable limitation of the possibilities for using the land and by an appreciable increase in production costs due to:
(a) the existence, because of altitude, of very difficult climatic conditions, the effect of which is to substantially shorten the growing season;
(b) at a lower altitude, the presence over the greater part of the area in question of slopes too steep for the use of machinery or requiring the use of very expensive special equipment, or a combination of these two factors, where the constraints resulting from each taken separately are less acute but the combination of the two gives rise to an equivalent constraints....
3. In order to be eligible for payments under Article 31, areas, other than mountain areas, shall be considered to be facing significant natural constraints if, at least 60 % of the agricultural area meets at least one of the criteria listed in Annex III at the threshold value indicated.Compliance with those conditions shall be ensured at the level of local administrative units ("LAU 2" level) or at the level of a clearly delineated local unit which covers a single clear contiguous geographical area with a definable economic and administrative identity.When delimiting the areas concerned by this paragraph, the relevant authority shall carry out a fine-tuning exercise, based on objective criteria, with the purpose of excluding areas in which significant natural constraints, referred to in the first subparagraph have been documented but have been overcome by investments or by, economic activity, or by evidence of normal land productivity, or in which production methods or farming systems have offset the income loss or added costs referred to in Article 31(1).
4. Areas other than those referred to in paragraphs 2 and 3 shall be eligible for payments under Article 31 if they are affected by specific constraints and if it is necessary for land management to be continued in order to conserve or improve the environment, to maintain the countryside, to preserve the tourist potential of the area or to protect the coastline.Areas affected by specific constraints shall comprise farming areas within which the natural production conditions are similar and the total extent of which does not exceed 10 % of the area of the constituent nation concerned.In addition, areas may also be eligible for payments under this paragraph, where:
— at least 60 % of the agricultural area meets at least two of the criteria listed in Annex III each within a margin of not more than 20 % of the threshold value indicated, or
— at least 60 % of the agricultural area is composed of areas meeting at least one of the criteria listed in Annex III at the threshold value indicated, and areas meeting at least two of the criteria listed in Annex III each within a margin of not more than 20 % of the threshold value indicated.Compliance with those conditions shall be ensured at LAU2 level or at the level of a clearly delineated local unit which covers a single clear contiguous geographical area with a definable economic and administrative identity. When delimiting areas concerned by this subparagraph, the relevant authority shall undertake a fine-tuning exercise as described in Article 32(3). Areas considered eligible pursuant to this subparagraph, shall be taken into account for calculating the 10 % limit referred to in the second subparagraph.By way of derogation, the second subparagraph shall not apply to  constituent nations  the entire territory of which was considered as an area facing specific handicaps under Regulations (EC) No 1698/2005 and (EC) No 1257/1999.
5. The relevant authorities shall attach to their rural development programmes:
(a) the existing or amended delimitation pursuant to paragraphs 2 and 4;
(b) the new delimitation of the areas referred to in paragraph 3.
Animal welfare
Article 33 

1. Animal welfare payments under this measure shall be granted to farmers who undertake, on a voluntary basis, to carry out operations consisting of one or more animal welfare commitments and who are active farmers within the meaning of Article 9 of Regulation (EU) No 1307/2013 ....
2. Animal welfare payments cover only those commitments going beyond the relevant mandatory standards established pursuant to Chapter I of Title VI of Regulation (EU) No 1306/2013 and other relevant mandatory requirements. These relevant requirements shall be identified in the programme.Those commitments shall be undertaken for a renewable period of one to seven years....
3. The payments shall be granted annually and shall compensate farmers for all or part of the additional costs and income foregone resulting from the commitment made. Where necessary, they may also cover transaction costs to the value of up to 20 % of the premium paid for the animal welfare commitments.Support shall be limited to the maximum amount laid down in Annex II.
4. In order to ensure that animal welfare commitments are in accordance with the overall ... policy in this field, the appropriate authority may make regulations concerning the definition of the areas in which animal welfare commitments are to provide upgraded standards of production methods.
Forest-environmental and climate services and forest conservation
Article 34 

1. Support under this measure shall be granted per hectare of forest to public and private forest-holders and other private law and public bodies and their associations who undertake, on a voluntary basis, to carry out operations consisting of one or more forest-environment and climate commitments. In the case of state owned forests, support may only be granted if the body managing such a forest is a private body or a municipality.For forest holdings above a certain threshold to be determined by the relevant authority in their rural development programmes, support under paragraph 1 shall be conditional on the presentation of the relevant information from a forest management plan or equivalent instrument in line with sustainable forest management as defined by the Ministerial Conference on the Protection of Forests in Europe of 1993.
2. Payments shall cover only those commitments going beyond the relevant mandatory requirements established by ... relevant national law. All such requirements shall be identified in the programme.Commitments shall be undertaken for a period of between five and seven years. However, where necessary and duly justified, the relevant authority may determine a longer period in their rural development programmes for particular types of commitments.
3. Payments shall compensate beneficiaries for all or part of the additional costs and income foregone resulting from the commitments made. Where it is necessary they may also cover transaction costs to a value of up to 20 % of the premium paid for the forest-environment commitments. Support shall be limited to the maximum amount laid down in Annex II.In duly justified cases for operations concerning environmental conservation, support may be granted as a flat-rate or one-off payment per unit for commitments to renounce commercial use of trees and forests, calculated on basis of additional costs incurred and income foregone.
4. Support may be provided to public and private entities for the conservation and promotion of forest genetic resources for operations not covered under paragraphs 1, 2 and 3.
5. In order to ensure the efficient use of support for rural development, the appropriate authority may make regulations concerning the types of operations eligible for support under paragraph 4 of this Article.
Co-operation
Article 35 

1. Support under this measure shall be granted in order to promote forms of co-operation involving at least two entities and in particular:
(a) co-operation approaches among different actors in the ... agriculture sector, forestry sector and food chain and other actors that contribute to achieving the objectives and priorities of rural development policy, including producer groups, cooperatives and inter-branch organisations;
(b) the creation of clusters and networks;
(c) the establishment and operation of operational groups of the EIP for agricultural productivity and sustainability as referred to in Article 56.
2. Co-operation under paragraph 1 shall relate, in particular, to the following:
(a) pilot projects;
(b) the development of new products, practices, processes and technologies in the agriculture, food and forestry sectors;
(c) co-operation among small operators in organising joint work processes and sharing facilities and resources and for the development and/or marketing of tourism services relating to rural tourism;
(d) horizontal and vertical co-operation among supply chain actors for the establishment and the development of short supply chains and local markets;
(e) promotion activities in a local context relating to the development of short supply chains and local markets;
(f) joint action undertaken with a view to mitigating or adapting to climate change;
(g) joint approaches to environmental projects and ongoing environmental practices, including efficient water management, the use of renewable energy and the preservation of agricultural landscapes;
(h) horizontal and vertical co-operation among supply chain actors in the sustainable provision of biomass for use in food and energy production and industrial processes;
(i) implementation, in particular by groups of public and private partners other than those defined in point (b) of Article 32(2) of Regulation (EU) No 1303/2013, of local development strategies other than those defined in Article 2(19) of Regulation (EU) 1303/2013 addressing one or more of the ... priorities for rural development;
(j) drawing up of forest management plans or equivalent instruments;
(k) diversification of farming activities into activities concerning health care, social integration, community-supported agriculture and education about the environment and food.
3. Support under point (b) of paragraph 1 shall be granted only to newly formed clusters and networks and those commencing an activity that is new to them.Support for operations under points (a) and (b) of paragraph 2 may be granted also to individual actors where this possibility is provided for in the rural development programme.
4. The results of pilot projects under point (a) of paragraph 2 and operations under point (b) of paragraph 2 carried out by individual actors as provided for in paragraph 3 shall be disseminated.
5. The following costs, linked to the forms of co-operation referred to in paragraph 1 shall be eligible for support under this measure:
(a) the cost of studies of the area concerned, of feasibility studies, and of drawing up a business plan or a forest management plan or equivalent or a local development strategy other than the one referred to in Article 33 of Regulation (EU) No 1303/2013;
(b) the cost of animation of the area concerned in order to make feasible a collective territorial project or a project to be carried out by an operational group of the EIP for Agricultural Productivity and Sustainability as referred to in Article 56. In the case of clusters, animation may also concern the organisation of training, networking between members and the recruitment of new members;
(c) the running costs of the co-operation;
(d) the direct costs of specific projects linked to the implementation of a business plan an environmental plan, a forest management plan or equivalent, a local development strategy other than the one referred to in Article 33 of Regulation (EU) No 1303/2013 or direct costs of other actions targeted towards innovation, including testing;
(e) the cost of promotion activities.
6. Where a business plan or an environmental plan or a forest management plan or equivalent or a development strategy is implemented, the relevant authority may grant the aid either as a global amount covering the costs of co-operation and the costs of the projects implemented or cover only the costs of the co- operation and use funds from other measures or  support under Regulation 508/2014, CMO support or direct payment support  for project implementation.Where support is paid as a global amount and the project implemented is of a type covered under another measure of this Regulation, the relevant maximum amount or rate of support shall apply.
7. Co-operation among actors located in different regions ... shall also be eligible for support.
8. Support shall be limited to a maximum period of seven years except for collective environmental action in duly justified cases.
(8. Support shall be for a minimum period of one year determined by the appropriate authority.
9. Co-operation under this measure may be combined with projects supported by support under Regulation 508/2014 or CMO support or direct payment support. The relevant authority shall ensure that overcompensation as a result of the combination of this measure with other sources of support is avoided.
10. In order to ensure the efficient use of support for rural development, the appropriate authority may make regulations, concerning the further specification of the characteristics of pilot projects, clusters, networks, short supply chains and local markets that will be eligible for support, as well as concerning the conditions for granting aid to the types of operation listed in paragraph 2 of this Article.
(10. The appropriate authority may make regulations to—
(a) promote forms of co-operation in accordance with paragraph 1;
(b) ensure the efficient use of support for rural development concerning the further specification of the characteristics of pilot projects, clusters, networks, short supply chains and local markets that will be eligible for support;
(c) make conditions for granting aid to the types of operation listed in paragraph 2.
Risk management
Article 36 

1. Support under this measure shall cover:
(a) financial contributions to premiums for crop, animal and plant insurance against economic losses to farmers caused by adverse climatic events, animal or plant diseases, pest infestation, or an environmental incident;
(b) financial contributions to mutual funds to pay financial compensations to farmers, for economic losses caused by adverse climatic events or by the outbreak of an animal or plant disease or pest infestation or an environmental incident;
(c) an income stabilisation tool, in the form of financial contributions to mutual funds, providing compensation to farmers of all sectors for a severe drop in their income;
(d) a sector-specific income stabilisation tool, in the form of financial contributions to mutual funds, providing compensation to farmers of a specific sector for a severe drop in their income.
2. For the purposes of this Article, ‘farmer’ means active farmer within the meaning of Article 9 of Regulation (EU) No 1307/2013, as applicable in the relevant authority concerned.
3. For the purpose of points (b), (c) and (d) of paragraph 1, ‘mutual fund’ means a scheme accredited by the relevant authority in accordance with its national law for affiliated farmers to insure themselves, whereby compensation payments are made to affiliated farmers for economic losses caused by the outbreak of adverse climatic events or an animal or plant disease or pest infestation or an environmental incident, or for a severe drop in their income.
4. The relevant authority shall ensure that overcompensation as a result of the combination of this measure with other ... support instruments or private insurance schemes is avoided.
5. In order to ensure the efficient use of support for rural development, the appropriate authority may make regulations concerning the minimum and maximum duration of the commercial loans to mutual funds referred to in point (b) of Article 38(3) and Article 39(4)....
Crop, animal, and plant insurance
Article 37 

1. Support under point (a) of Article 36(1) shall only be granted for insurance contracts which cover for loss caused by an adverse climatic event, or by an animal or plant disease, or a pest infestation, or an environmental incident or a measure adopted in accordance with Directive 2000/29/EC to eradicate or contain a plant disease, or pest which destroys more than 20 % of the average annual production of the farmer in the preceding three-year period or a three-year average based on the preceding five-year period, excluding the highest and lowest entry. Indexes may be used in order to calculate the annual production of the farmer. The calculation method used shall permit the determination of the actual loss of an individual farmer in a given year.The measurement of the extent of the loss caused may be tailored to the specific characteristics of each type of product using:
(a) biological indexes (quantity of biomass loss) or equivalent yield loss indexes established at farm, local, regional or national level, or
(b) weather indexes (including quantity of rainfall and temperature) established at local, regional or national level.
2. The occurrence of an adverse climatic event or the outbreak of an animal or plant disease or pest infestation or an environmental incident has to be formally recognised as such by the competent authority of the relevant authority concerned.The relevant authority may, where appropriate, establish in advance criteria on the basis of which such formal recognition shall be deemed to be granted.
3. As regards animal diseases, financial compensation under point (a) of Article 36(1) may only be granted in respect of diseases mentioned in the list of animal diseases established by the World Organisation for Animal Health or in Annex II of Regulation (EU) No 652/2014.
4. Insurance payments shall compensate for not more than the total of the cost of replacing the losses referred to in point (a) of Article 36(1) and shall not require or specify the type or quantity of future production.The relevant authority may limit the amount of the premium that is eligible for support by applying appropriate ceilings.
5. Support shall be limited to the maximum rate laid down in Annex II.
Mutual funds for adverse climatic events, animal and plant diseases, pest infestations and environmental incidents
Article 38 

1. In order to be eligible for support the mutual fund concerned shall:
(a) be accredited by the competent authority in accordance with national law;
(b) have a transparent policy towards payments into and withdrawals from the fund;
(c) have clear rules attributing responsibilities for any debts incurred.
2. The relevant authority shall define in the programme the rules for the constitution and management of the mutual funds, in particular for the granting of compensation payments and the eligibility of farmers in the event of crisis, as well as for the administration and monitoring of compliance with these rules. The relevant authority shall ensure that the fund arrangements as set out in the programme provide for penalties in case of negligence on the part of the farmer.The occurrence of incidents mentioned in point (b) of Article 36(1) must be formally recognised as such by the competent authority of the relevant authority concerned.
3. The financial contributions referred to in point (b) of Article 36(1) may only relate to:
(a) the administrative costs of setting up the mutual fund, spread over a maximum of three years in a degressive manner;
(b) the amounts paid by the mutual fund as financial compensation to farmers. In addition, the financial contribution may relate to interest on commercial loans taken out by the mutual fund for the purpose of paying the financial compensation to farmers in case of crisis;
(c) supplementing the annual payments into the fund;
(d) the initial capital stock of the mutual fund.Support under point (b) of Article 36(1) shall only be granted to cover for loss caused by the outbreak of adverse climatic events, animal or plant disease, pest infestation, or measures adopted in accordance with Directive 2000/29/EC to eradicate or contain a plant disease or pest or environmental incident, which destroy more than 30 % of the average annual production of the farmer in the preceding three-year period or a three-year average based on the preceding five-year period, excluding the highest and lowest entry. Indexes may be used in order to calculate the annual production of the farmer. The calculation method used shall permit the determination of the actual loss of an individual farmer in a given year. ......
4. As regards animal diseases, financial compensation under point (b) of Article 36(1) may be granted in respect of diseases mentioned in the list of animal diseases established by the World Organisation for Animal Health or in Annex II of Regulation (EU) No 652/2014.
5. Support shall be limited to the maximum support rate laid down in Annex II. Support under point (b) of paragraph 3 shall take into account any support already provided under points (c) and (d) of paragraph 3.The relevant authority may limit the costs that are eligible for support by applying:
(a) ceilings per fund;
(b) appropriate per unit ceilings.
Income stabilisation tool for farmers of all sectors
                  
Article 39 

1. Support under point (c) of Article 36(1) shall only be granted where the drop in income exceeds 30 % of the average annual income of the individual farmer in the preceding three-year period or a three-year average based on the preceding five-year period excluding the highest and lowest entry. Income for the purposes of point (c) of Article 36(1) shall refer to the sum of revenues the farmer receives from the market, including any form of public support, deducting input costs. Payments by the mutual fund to farmers shall compensate for less than 70 % of the income lost in the year the producer becomes eligible to receive this assistance. Indexes may be used to calculate the annual loss of income of the farmer. ...
2. In order to be eligible for support the mutual fund concerned shall:
(a) be accredited by the competent authority in accordance with national law;
(b) have a transparent policy towards payments into and withdrawals from the fund;
(c) have clear rules attributing responsibilities for any debts incurred.
3. The relevant authority shall define in the programme the rules for the constitution and management of the mutual funds, in particular for the granting of compensation payments to farmers in the event of crisis and for the administration and monitoring of compliance with these rules. The relevant authority shall ensure that the fund arrangements as set out in the programme provide for penalties in case of negligence on the part of the farmer.
4. The financial contributions referred to in point (c) of Article 36(1) may only relate to:
(a) the administrative costs of setting up the mutual fund, spread over a maximum of three years in a degressive manner;
(b) the amounts paid by the mutual fund as financial compensation to farmers. In addition, the financial contribution may relate to interest on commercial loans taken out by the mutual fund for the purpose of paying the financial compensation to farmers in case of crisis;
(c) supplementing the annual payments into the fund;
(d) the initial capital stock of the mutual fund.
5. Support shall be limited to the maximum rate laid down in Annex II. Support under point (b) of paragraph 4 shall take into account any support already provided under points (c) and (d) of paragraph 4.
Income stabilisation tool for farmers of a specific sector
                  
Article 39a 

1. Support under point (d) of Article 36(1) shall only be granted in duly justified cases and where the drop in income exceeds a threshold of at least 20 % of the average annual income of the individual farmer in the preceding three-year period or a three-year average based on the preceding five-year period excluding the highest and lowest entry. Indexes may be used in order to calculate the annual loss of income of the farmer. Income for the purposes of point (d) of Article 36(1) shall refer to the sum of revenues the farmer receives from the market, including any form of public support, deducting input costs. Payments by the mutual fund to farmers shall compensate for less than 70 % of the income lost in the year the producer becomes eligible to receive this assistance.
2. Article 39(2) to (5) shall apply for the purpose of support under point (d) of Article 36(1).
Exceptional temporary support to farmers and SMEs particularly affected by the COVID-19 crisis
                  
Article 39b 

1. Support under this measure shall provide emergency assistance to farmers and SMEs particularly affected by the COVID-19 crisis, aiming at ensuring continuity of their business activity, subject to the conditions set out in this Article.
2. Support shall be granted to farmers, as well as to SMEs active in processing, marketing or development of agricultural products covered by Annex I to the TFEU or cotton, except fishery products. The output of the production process may be a product not covered by that Annex.
3. The relevant authority shall target the support to beneficiaries who are most affected by the COVID-19 crisis, by determining, on the basis of available evidence, eligibility conditions and, where considered appropriate by the relevant authority concerned, selection criteria, which shall be objective and non-discriminatory.
4. The support shall take the form of a lump sum payment to be paid by 31 December 2021, based on applications for support approved by the competent authority by 30 June 2021. ... The level of payment may be differentiated by categories of beneficiaries, in accordance with objective and non-discriminatory criteria.
5. The maximum amount of support shall not exceed EUR 7 000 per farmer and EUR 50 000 per SME.
6. When granting support under this Article, the relevant authority shall take into account the support granted under Regulation 508/2014 or direct payment support or private schemes to respond to the impact of the COVID-19 crisis.
Financing of complementary national direct payments for Croatia
Article 40 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rules on the implementation of the measures
Article 41 
The the appropriate authority may make regulations, laying down rules on the implementation of the measures in this section concerning:

((a)) procedures for selection of authorities or bodies offering farm and forestry advisory services, farm management or farm relief services and the degressivity of the aid under the advisory services measure referred to in Article 15;
((b)) the assessment by the  Managing Authority  of the progress of the business plan, payment options as well as modalities for access to other measures for young farmers under the farm and business development measure referred to in Article 19;
((c)) conversion to units other than those used in Annex II, and conversion rates of animals to livestock units (LU) under the measures referred to in Articles 28, 29, 33 and 34;
((d)) the possibility of using standard assumptions of additional costs and income foregone under the measures of Articles 28 to 31, 33 and 34 and criteria for its calculation;
((e)) calculation of the amount of support where an operation is eligible for support under more than one measures.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
LEADER
LEADER local action groups
Article 42 

1. In addition to the tasks referred to in Article 34 of Regulation (EU) No 1303/2013 ... local action groups may also perform additional tasks delegated to them by the Managing Authority and/or the paying agency.In addition to the tasks referred to in Article 34 of Regulation (EU) No 1303/2013 local action groups may also perform additional tasks delegated to them by the Managing Authority and/or the paying agency.
2. Local action groups may request the payment of an advance from the competent paying agency if such possibility is provided for in the rural development programme. The amount of the advances shall not exceed 50 % of the public support related to the running and animation costs.
LEADER start-up kit
Article 43 
Support for LEADER local development may also include a "LEADER start-up kit" for local communities who did not implement LEADER in the 2007-2013 programming period. The "LEADER start-up kit" shall consist of support for capacity building and small pilot projects. Support under the "LEADER start-up kit" shall not be conditional on the submission of a LEADER local development strategy.
LEADER co-operation activities
Article 44 

1. The support referred to in point (c) of Article 35(1) of Regulation (EU) No 1303/2013 shall be granted to
(a) co-operation projects within or between constituent nations (inter-territorial co-operation) or co-operation projects with territories in third countries (transnational co-operation);
(b) preparatory technical support for inter-territorial and transnational co-operation projects, on condition that local action groups are able to demonstrate that they are envisaging the implementation of a concrete project.
2. Apart from other local action groups, the partners of a local action group funded by support for rural development may be:
(a) a group of local public and private partners in a rural territory that is implementing a local development strategy ...;
(b) a group of local public and private partners in a non- rural territory that is implementing a local development strategy.
3. In cases where co-operation projects are not selected by the local action groups, the relevant authority shall establish a system of ongoing application.They shall make public the national or regional administrative procedures concerning the selection of transnational co-operation projects and a list of eligible costs at the latest two years after the date of approval of their rural development programmes.Approval of co-operation projects by the competent authority shall take place no later than four months after the date of submission of the project application.
4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CHAPTER II
Common provisions for several measures
Investments
Article 45 

1. In order to be eligible for support for rural development, investment operations shall be preceded by an assessment of the expected environmental impact in accordance with law specific to that kind of investment where the investment is likely to have negative effects on the environment.
2. Expenditure that is eligible for support for rural development shall be limited to:
(a) the construction, acquisition, including leasing, or improvement of immovable property;
(b) the purchase or lease purchase of new machinery and equipment up to the market value of the asset;
(c) general costs linked to expenditure referred to in points (a) and (b), such as architect, engineer and consultation fees, fees relating to advice on environmental and economic sustainability, including feasibility studies. Feasibility studies shall remain eligible expenditure even where, based on their results, no expenditure under points (a) and (b) is made;
(d) the following intangible investments: acquisition or development of computer software and acquisitions of patents, licenses, copyrights, trademarks;
(e) the costs of establishing forest management plans and their equivalent.
3. In the case of agricultural investments, the purchase of agricultural production rights, payment entitlements, animals, annual plants and their planting shall not be eligible for investment support. However, in case of the restoration of agricultural production potential damaged by natural disasters or catastrophic events, in accordance with point (b) of Article 18(1), expenditure for the purchase of animals may be eligible expenditure.
4. Beneficiaries of investment related support may request the payment of an advance of up to 50 % of the public aid related to the investment from the competent paying agencies if that option is included in the rural development programme.
5. Where support is provided through a financial instrument established in accordance with Article 37 of Regulation (EU) No 1303/2013, working capital may be eligible expenditure. Such eligible expenditure shall not exceed EUR 200 000GBP 166,667 or 30 % of the total amount of the eligible expenditure for the investment, whichever is the higher.
6. In order to take account of the special characteristics of particular types of investments, the appropriate authority may make regulations, laying down the conditions under which other costs connected with leasing contracts, second hand equipment may be considered to be eligible expenditure and specifying the types of renewable energy infrastructure that are to be eligible for support.
7. Paragraphs 1, 2 and 3 shall not apply where support is provided in the form of financial instruments.
Investments in irrigation
Article 46 

1. Without prejudice to Article 45 of this Regulation, in the case of irrigation in new and existing irrigated areas, only investments that fulfil the conditions in this Article shall be considered as eligible expenditure.
2. A river basin management plan, as required under the terms of the Water Framework Directive and as defined by legislation implementing the Water Framework Directive in each of the constituent nations, shall have been notified to the appropriate authority, or, before  IP completion day, to the Commission, for the entire area in which the investment is to take place, as well as in any other areas whose environment may be affected by the investment. The requirements which apply under the river basin management plan by virtue of Article 11 of the Water Framework Directive and of relevance to the agricultural sector shall have been specified.
3. Water metering enabling measurement of water use at the level of the supported investment shall be in place or shall be put in place as part of the investment.
4. An investment in an improvement to an existing irrigation installation or element of irrigation infrastructure shall be eligible only if it is assessed ex ante as offering potential water savings of a minimum of between 5 % and 25 % according to the technical parameters of the existing installation or infrastructure.If the investment affects bodies of ground- or surface water whose status has been identified as less than good in the relevant river basin management plan for reasons related to water quantity:
(a) the investment shall ensure an effective reduction in water use, at the level of the investment, amounting to at least 50 % of the potential water saving made possible by the investment;
(b) in the case of an investment on a single agricultural holding, it shall also result in a reduction to the holding's total water use amounting to at least 50 % of the potential water saving made possible at the level of the investment. The total water use of the holding shall include water sold by the holding.None of the conditions in paragraph 4 shall apply to an investment in an existing installation which affects only energy efficiency or to an investment in the creation of a reservoir or to an investment in the use of recycled water which does not affect a body of ground or surface water.
5. An investment resulting in a net increase of the irrigated area affecting a given body of ground or surface water shall be eligible only if:
(a) the status of the water body has not been identified as less than good in the relevant river basin management plan for reasons related to water quantity; and
(b) an environmental analysis shows that there will be no significant negative environmental impact from the investment; such an environmental impact analysis shall be either carried out by or approved by the competent authority and may also refer to groups of holdings.Areas which are not irrigated but in which an irrigation installation was active in the recent past, to be established and justified in the programme, may be considered as irrigated areas for the purpose of determining the net increase of the irrigated area.
6. By way of derogation from point (a) of paragraph 5 investments resulting in a net increase of the irrigated area may still be eligible if:
(a) the investment is combined with an investment in an existing irrigation installation or element of irrigation infrastructure assessed ex ante as offering potential water savings of a minimum of between 5 % and 25 % according to the technical parameters of the existing installation or infrastructure and
(b) the investment ensures an effective reduction in water use, at the level of the investment as a whole, amounting to at least 50 % of the potential water saving made possible by the investment in the existing irrigation installation or element of infrastructure.Furthermore, by way of derogation, the condition in point (a) of paragraph 5 shall not apply to investments in the establishment of a new irrigation installation supplied with water from an existing reservoir approved by the competent authorities before 31 October 2013 if the following conditions are met:
— the reservoir in question is identified in the relevant river basin management plan and is subject to the control requirements set out in article 11(3)(e) of the Water Framework Directive;
— on 31 October 2013, there was in force either a maximum limit on total abstractions from the reservoir or a minimum required level of flow in water bodies affected by the reservoir;
— that maximum limit or minimum required level of flow complies with the conditions set out in Article 4 of the Water Framework Directive; and
— the investment in question does not result in abstractions beyond the maximum limit in force on 31 October 2013 or result in a reduction of the level of flow in affected water bodies below the minimum required level in force on 31 October 2013.
Rules for area related payments
Article 47 

1. The number of hectares to which a commitment pursuant to Articles 28, 29 and 34 applies may vary from year to year where:
(a) this possibility is provided for in the rural development programme;
(b) the commitment in question does not apply to fixed parcels; and
(c) the achievement of the commitment's objective is not jeopardised.
2. Where all or part of the land under commitment or the entire holding is transferred to another person during the period of that commitment, the commitment, or part thereof corresponding to the land transferred, may be taken over for the remainder of the period by that other person or may expire and reimbursement shall not be required in respect of the period during which the commitment was effective.
3. Where a beneficiary is unable to continue to comply with commitments given because the holding or part of the holding is re-parcelled or is the subject of public land consolidation measures or land consolidation measures approved by the competent public authorities, the relevant authority shall take the measures necessary to allow the commitments to be adapted to the new situation of the holding. If such adaptation proves impossible, the commitment shall expire and reimbursement shall not be required in respect of the period during which the commitment was effective.
4. Reimbursement of the aid received shall not be required in cases of force majeure and exceptional circumstances as referred to in Article 2 of Regulation (EU) No 1306/2013.
5. Paragraph 2, as regards cases of transfer of the entire holding, and paragraph 4 shall also apply to commitments under Article 33.
6. In order to ensure the efficient implementation of area related measures and proper management of public money, the the appropriate authority may make regulations laying down conditions applicable to conversion or adjustment of commitments under the measures referred to in Articles 28, 29, 33 and 34 and, specifying other situations in which reimbursement of the aid shall not be required.
Revision clause
Article 48 
A revision clause shall be provided for operations undertaken pursuant to Articles 28, 29, 33 and 34 in order to ensure their adjustment in the case of amendments to the relevant mandatory standards, requirements or obligations referred to in those Articles beyond which the commitments have to go. The revision clause shall also cover adjustments needed to avoid double funding of the practices referred to in Article 43 of Regulation (EU) No 1307/2013 in the case of amendments to those practices.
Operations undertaken pursuant to Articles 28, 29, 33 and 34 which extend beyond the current programming period shall contain a revision clause in order to allow for their adjustment to the legal framework in force after the current programming period.
If such adjustment is not accepted by the beneficiary, the commitment shall expire and reimbursement shall not be required in respect of the period during which the commitment was effective.
Selection of operations
Article 49 

1. Without prejudice to point (d) of Article 34(3) of Regulation (EU) No 1303/2013, the Managing Authority of the rural development programme shall define selection criteria for operations following consultation with the Monitoring Committee. Selection criteria shall aim to ensure equal treatment of applicants, better use of financial resources and targeting of measures in accordance with the ... priorities for rural development. In defining and applying selection criteria the principle of proportionality shall be taken into account in relation to the size of the operation.By way of derogation from the first subparagraph, in exceptional and duly justified cases where it is not possible to establish selection criteria due to the nature of the type of operations concerned, the Managing Authority may define another selection method to be described in the rural development programme following consultation with the Monitoring Committee.
2. The relevant authority responsible for the selection of operations shall ensure that operations, with the exception of operations under point (b) of Article 18(1), point (d) of Article 24(1) and Articles 28 to 31, 33, 34 and 36 to 39b, are selected in accordance with the selection criteria referred to in paragraph 1 of this Article and according to a transparent and well-documented procedure.
3. Beneficiaries may be selected on the basis of calls for proposals, applying economic, social and environmental efficiency criteria.
4. Paragraphs 1 and 2 shall not apply where support is provided in the form of financial instruments.
Rural area definition
Article 50 
For the purposes of this Regulation the Managing Authority shall define "rural area" at programme level. The relevant authority may establish such a definition for a measure or type of operation if duly justified.
CHAPTER III
Technical assistance and networking
Funding technical assistance
Article 51 

1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. At the initiative of the relevant authority up to 4 % of the total amount of each rural development programme may be devoted to the tasks referred to in Article 59 of Regulation (EC) No 1303/2013 and costs related to preparatory work for the delimitation of areas facing natural or other specific constraints referred to in Article 32.Costs relating to the certification body referred to in Article 9 of Regulation (EU) No 1306/2013 shall not be eligible under this paragraph.Within that 4 % limit an amount shall be reserved for establishing and operating the national rural network referred to in Article 54.By way of derogation from the first subparagraph, Member States for which the total amount of Union support for rural development for the years 2014-2020 as laid down in Annex I to this Regulation is less than EUR 1 800 million may, after the extension of their programmes in accordance with Article 1 of Regulation (EU) 2020/2220, decide to devote 5 % of the total amount of each rural development programme to tasks referred to in Article 59 of Regulation (EU) No 1303/2013.
3. In case of rural development programmes covering both less-developed regions and other regions, the core contribution rate for technical assistance referred to in Article 59(3) may be determined by taking into account the predominant type of regions, by their number, in the programme.
European network for rural development
Article 52 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
European Innovation Partnership network
Article 53 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
National rural network
Article 54 

1. The relevant authority shall establish a national rural network, which groups the organisations and administrations involved in rural development. The partnership referred to in Article 5 of Regulation (EU) No 1303/2013 shall also be part of the national rural network....
2. Networking by the national rural network shall aim to:
(a) increase the involvement of stakeholders in the implementation of rural development;
(b) improve the quality of implementation of rural development programmes;
(c) inform the broader public and potential beneficiaries on rural development policy and funding opportunities;
(d) foster innovation in agriculture, food production, forestry and rural areas.
3. Support for rural development under Article 51(2) shall be used:
(a) for the structures needed to run the network;
(b) for the preparation and implementation of an action plan covering at least the following:
((i)) activities regarding the collection of examples of projects covering all priorities of the rural development programmes;
((ii)) activities regarding the facilitation of thematic and analytical exchanges between rural development stakeholders, sharing and dissemination of findings;
((iii)) activities regarding the provision of training and networking for local action groups and in particular technical assistance for inter-territorial and transnational co-operation, facilitation of co-operation among local action groups and the search of partners for the measure referred to in Article 35;
((iv)) activities regarding the provision of networking for advisors and innovation support services;
((v)) activities regarding the sharing and dissemination of monitoring and evaluation findings;
((vi)) a communication plan including publicity and information concerning the rural development programme in agreement with the Managing Authorities and information and communication activities aimed at a broader public;
((vii)) ...
4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TITLE IV
EIP FOR AGRICULTURAL PRODUCTIVITY AND SUSTAINABILITY
Aims
Article 55 

1. The EIP for agricultural productivity and sustainability shall:
(a) promote a resource efficient, economically viable, productive, competitive, low emission, climate friendly and resilient agricultural and forestry sector, working towards agro-ecological production systems and working in harmony with the essential natural resources on which farming and forestry depend;
(b) help deliver a steady and sustainable supply of food, feed and biomaterials, including existing and new types;
(c) improve processes to preserve the environment, adapt to climate change and mitigate it;
(d) build bridges between cutting-edge research knowledge and technology and farmers, forest managers, rural communities, businesses, NGOs and advisory services.
2. The EIP for agricultural productivity and sustainability shall seek to achieve its aims by:
(a) creating added value by better linking research and farming practice and encouraging the wider use of available innovation measures;
(b) promoting the faster and wider transposition of innovative solutions into practice; and
(c) informing the scientific community about the research needs of farming practice.
3. Support for rural development shall contribute to the aims of the EIP for agricultural productivity and sustainability through support, in accordance with Article 35, of the EIP operational groups referred to in Article 56 ....
Operational groups
Article 56 

1. EIP operational groups shall form part of the EIP for agricultural productivity and sustainability. They shall be set up by interested actors such as farmers, researchers, advisors and businesses involved in the agriculture and food sector, who are relevant for achieving the objectives of the EIP.
2. EIP operational groups shall establish internal procedures that ensure, that their operation and decision-making is transparent and that situations of conflict of interest are avoided.
3. The relevant authority shall decide within the framework of their programmes to what extent they will support the operational groups.
Tasks of operational groups
Article 57 

1. EIP operational groups shall draw up a plan that contains the following:
(a) a description of the innovative project to be developed, tested, adapted or implemented;
(b) a description of the expected results and the contribution to the EIP objective of enhancing productivity and sustainable resource management.
2. When implementing their innovative projects operational groups shall:
(a) make decisions on the elaboration and implementation of innovative actions; and
(b) implement innovative actions through measures financed through the rural development programmes.
3. Operational groups shall disseminate the results of their project ....
TITLE V
FINANCIAL PROVISIONS
Resources and their distribution
Article 58 

1. Without prejudice to paragraphs 5, 6 and 7 of this Article, the core contribution to rural development under this Regulation (‘the core contribution’) for the period from 1 January 2014 to 31 December 2020 shall be EUR 5,195,417,491, in 2011 prices.
2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. The annual breakdown of the core contribution is set out in Annex I.
5. Funds transferred under Article 14(2) of Regulation (EU) No 1307/2013 shall be subtracted from the core contribution.
6. The funds transferred to the core contribution in application of Article 136a(1) of Regulation (EC) No 73/2009 and Article 7(2) of Regulation (EU) No 1307/2013 and the funds transferred to the core contribution in application of Articles 10b, 136 and 136b of Regulation (EC) No 73/2009 in respect of calendar years 2013 and 2014 shall also be included in the annual breakdown referred to in paragraph 4 of this Article.
7. In order to take account of the developments relating to the annual breakdown referred to in paragraph 4 of this Article, including the transfers referred to in paragraphs 5 and 6 of this Article ..., to make technical adjustments without changing the overall allocations, or to take account of any other change provided for by a legislative act after the adoption of this Regulation, the Secretary of State may make regulations, to review the ceilings set out in Annex I to this Regulation.
(7A. The Secretary of State may not make regulations under paragraph 7 without the consent of each of the relevant authorities for Wales, Scotland and Northern Ireland.Where the relevant authority for Wales, Scotland or Northern Ireland requests that the Secretary of State makes regulations under paragraph 7, the Secretary of State must have regard to that request.
8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Resources for the recovery of the Union agricultural sector and rural areas
Article 58a 

1. Point (g) of Article 1(2) of Council Regulation (EU) 2020/2094 (‘EURI Regulation’) shall be implemented in accordance with this Article through measures that are eligible under the EAFRD and that are directed at addressing the impact of the COVID-19 crisis, with an amount of EUR 8 070 486 840 in current prices of the amount referred to in point (vi) of Article 2(2)(a) of that Regulation, subject to Article 3(3), (4) and (8) thereof.That amount of EUR 8 070 486 840 in current prices shall constitute external assigned revenues in accordance with Article 21(5) of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council.It shall be made available as additional resources for budgetary commitment under the EAFRD for the years 2021 and 2022, in addition to the total resources set out in Article 58 of this Regulation as follows:
— 2021: EUR 2 387 718 000;
— 2022: EUR 5 682 768 840.For the purpose of this Regulation and Regulations (EU) No 1306/2013 and (EU) No 1307/2013, those additional resources shall be considered as amounts financing measures under the EAFRD. They shall be considered as being part of the total amount of Union support for rural development, as referred to in Article 58(1) of this Regulation, to which they shall be added when reference is made to the total amount of Union support for rural development. Article 14 of Regulation (EU) No 1307/2013 shall not apply to the additional resources referred to in this paragraph and in paragraph 2 of this Article.
2. The breakdown for each Member State of the additional resources referred to in paragraph 1 of this Article, after deduction of the amount referred to in paragraph 7 of this Article, is set out in Annex Ia.
3. The percentage thresholds of the total EAFRD contribution to the rural development programme referred to in Article 59(5) and (6) of this Regulation shall not apply to the additional resources referred to in paragraph 1 of this Article. However, Member States shall ensure that at least the same overall share of the EAFRD contribution, including the additional resources referred to in paragraph 2 of this Article, is reserved in each rural development programme for the measures referred to in Article 59(6) of this Regulation, in line with Article 1(2) of Regulation (EU) 2020/2220.
4. At least 37 % of the additional resources referred to in paragraph 2 of this Article shall be reserved in each rural development programme for measures referred to in Article 33 and Article 59(5) and (6), and in particular for:
(a) organic farming;
(b) mitigation of, and adaptation to, climate change, including reduction of greenhouse gas emissions from agriculture;
(c) soil conservation, including the enhancement of soil fertility through carbon sequestration;
(d) improvement of the use and management of water, including water saving;
(e) creation, conservation and restoration of habitats favourable to biodiversity;
(f) reduction of the risks and impacts of pesticide and antimicrobial use;
(g) animal welfare;
(h) LEADER cooperation activities.
5. At least 55 % of the additional resources referred to in paragraph 2 of this Article shall be reserved in each rural development programme for measures referred to in Articles 17, 19, 20 and 35, provided that the designated use of such measures in the rural development programmes promotes economic and social development in rural areas, and contributes to a resilient, sustainable and digital economic recovery in line, inter alia, with the agri-environment-climate objectives pursued under this Regulation, and in particular:
(a) short supply chains and local markets;
(b) resource efficiency, including precision and smart farming, innovation, digitalisation and modernisation of production machinery and equipment;
(c) safety conditions at work;
(d) renewable energy, circular and bio-economy;
(e) access to high-quality ICT in rural areas.When allocating the additional resources referred to in paragraph 2 of this Article, Member States may decide to derogate from the percentage threshold set out in the first subparagraph of this paragraph to the extent necessary to comply with the non-regression principle set out in Article 1(2) of Regulation (EU) 2020/2220. However, Member States may instead decide to derogate from that non-regression principle to the extent necessary to comply with the percentage threshold set out in the first subparagraph of this paragraph.
6. Up to 4 % of the total additional resources referred to in paragraph 2 of this Article may be allocated to technical assistance, at the initiative of the Member States, to the rural development programmes in accordance with Article 51(2). That percentage threshold may be 5 % for those Member States to which the fourth subparagraph of Article 51(2) applies.
7. Up to 0,25 % of the total additional resources referred to in paragraph 1 of this Article may be allocated to technical assistance in accordance with Article 51(1).
8. The budget commitments relating to the additional resources referred to in paragraphs 1 and 2 of this Article shall in each rural development programme be made separately from the allocation referred to in Article 58(4).
9. Articles 20, 21 and 22 of Regulation (EU) No 1303/2013 shall not apply to the total additional resources referred to in paragraphs 1 and 2 of this Article.
Fund contribution
Article 59 

1. The decision approving a rural development programme shall set the core contribution to the programme. The decision shall clearly identify, where necessary, the appropriations allocated to the less developed regions.
2. The core contribution shall be calculated on the basis of the amount of eligible public expenditure.
3.  The rural development programmes shall establish a single core contribution rate applicable to all measures. Where applicable, a separate core contribution rate shall be established for less-developed regions, as well as for transition regions. The maximum core contribution rate shall be:
(a) 85 % of the eligible public expenditure in the less developed regions ...;
(b) 75 % of the eligible public expenditure for all regions whose GDP per capita for the 2007-2013 period was less than 75 % of the average of the EU-25 for the reference period but whose GDP per capita is above 75 % of the GDP average of the EU-27;
(c) 63 % of the eligible public expenditure for the transition regions other than those referred to in point (b) of this paragraph;
(d) 53 % of the eligible public expenditure in the other regions.The minimum core contribution rate shall be 20 %.
4. By way of derogation from paragraph 3, the maximum core contribution shall be:
(a) 80 % for the measures referred to in Articles 14, 27 and 35, for the LEADER local development referred to in Article 32 of Regulation (EU) No 1303/2013 and for operations under point (a)(i) of Article 19(1). That rate may be increased to a maximum of 90 % for the programmes of less developed regions ... and of transition regions referred to in points (b) and (c) of paragraph 3;
(b) 75 % for operations contributing to the objectives of environment and climate change mitigation and adaptation under Article 17, points (a) and (b) of Article 21(1), Articles 28 29, 30 31 and 34;
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d) the contribution rate applicable to the measure concerned increased by an additional 10 percentage points for contributions to financial instruments referred to in point (b) of Article 38(1) of Regulation 1303/2013;
(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(ea) 100 % for operations receiving funding from additional resources referred to in Article 58a(1). Member States may establish a single, specific EAFRD contribution rate applicable to all those operations;
(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5. At least 5% of the total core contribution to the rural development programme shall be reserved for LEADER.
6. At least 30 % of the total core contribution to the rural development programme shall be reserved for measures under the following Articles: Article 17 for environment and climate related investments; Articles 21, 28, 29 and 30, with the exception of Water Framework Directive related payments; and Articles 31, 32 and 34....
6a. The ...  support provided under Article 39b shall not exceed 2 % of the total core contribution to the rural development programme ....
7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8. An expenditure receiving support for rural development shall not be co-financed by way of a contribution from under Regulation 508/2014 or CMO support ....
9. Public expenditure on aid to enterprises shall comply with the aid limits laid down in respect of State aid, unless this Regulation provides otherwise.
Eligibility of expenditure
Article 60 

1. By way of derogation from Article 65(9) of Regulation (EU) No 1303/2013, in cases of emergency measures due to natural disasters, catastrophic events or adverse climatic events or a significant and sudden change in the socioeconomic conditions of the constituent nation or region, the rural development programmes may provide that eligibility of expenditure relating to programme changes may start from the date when the event occurred.
2. Expenditure shall be eligible for rural development support only where incurred for operations decided upon by the Managing Authority of the programme in question or under its responsibility, in accordance with selection criteria referred to in Article 49.With the exception of general costs as defined in point (c) of Article 45(2), in respect of investment operations under measures in relation to the production of, and trade in, agricultural products, only expenditure which has been incurred after an application has been submitted to the competent authority shall be considered eligible. However, relevant authorities may provide in their programme that expenditure which is related to emergency measures due to natural disasters, catastrophic events or adverse climatic events or a significant and sudden change in the socioeconomic conditions of the constituent nation or region, and which has been incurred by the beneficiary after the event occurs, is also eligible.Relevant authorities may provide in their programmes that only expenditure which has been incurred after the application for support has been approved by the competent authority shall be eligible.
3. Paragraphs 1 and 2 shall not apply to Article 51(1) and (2).
4. Payments by beneficiaries shall be supported by invoices and documents proving payment. Where this cannot be done, payments shall be supported by documents of equivalent probative value, except for the forms of support referred to in Article 67(1) of Regulation (EU) No 1303/2013 other than under point (a) thereof.
Eligible expenditure
Article 61 

1. Where running costs are covered by support under this Regulation the following types of costs shall be eligible:
(a) operating costs;
(b) personnel costs;
(c) training costs;
(d) costs linked to public relations;
(e) financial costs;
(f) networking costs.
2. Studies shall only be eligible expenditure where they are linked to a specific operation under the programme or the specific objectives and targets of the programme.
3. Contributions in kind in the form of provision of works, goods, services, land and real estate for which no cash payment supported by invoices or documents of equivalent probative value has been made, may be eligible for support provided that the conditions of Article 69 of Regulation (EU) No 1303/2013 are fulfilled.
Verifiability and controllability of measures
Article 62 

1. The relevant authority must ensure that all the rural development measures that they intend to implement are verifiable and controllable. The Managing Authority and paying agency must also undertake the assessment of the verifiability and controllability of measures during the implementation of the rural development programme. Assessment during the implementation period must take into account the results of controls in the previous and current programming period. Where the assessment reveals that the requirements of verifiability and controllability are not met, the measures concerned must be adjusted accordingly.
2. Where aid is granted on the basis of standard costs or additional costs and income foregone in accordance with points (a) and (b) of Article 21(1),as regards income foregone and maintenance costs, and with Articles 28 to 31, 33, and 34, the relevant authority shall ensure that the relevant calculations are adequate and accurate and established in advance on the basis of a fair, equitable and verifiable calculation method. To this end, a body that is functionally independent from the authorities responsible for the programme implementation and possesses the appropriate expertise shall perform the calculations or confirm the adequacy and accuracy of the calculations. A statement confirming the adequacy and accuracy of the calculations shall be included in the rural development programme.
Advances
Article 63 

1. Payment of advances shallmay be subject to the establishment of a bank guarantee or an equivalent guarantee corresponding to 100 % of the amount of the advance. As regards public beneficiaries, advances shall be paid to municipalities, regional authorities and associations thereof, as well as to public law bodies.A facility provided as a guarantee by a public authority shall be considered equivalent to the guarantee referred to in the first subparagraph, provided that the authority undertakes to pay the amount covered by that guarantee if entitlement to the advance paid is not established.
2. The guarantee may be released when the competent paying agency establishes that the amount of actual expenditure corresponding to the public contribution related to the operation exceeds the amount of the advance.
TITLE VI
MANAGEMENT, CONTROL AND PUBLICITY
Responsibilities of the Commission
Article 64 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Responsibilities of the Member States
Article 65 

1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. The relevant authority shall ensure each rural development programme is administered by the following bodies:
(a) the Managing Authority, which may be either a public or private body acting at national or regional level, or the relevant authority itself when it carries out that task, to be in charge of the management of the programme concerned;
(b) the  designated  paying agency within the meaning of Article 7 of Regulation (EU) No 1306/2013;
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. The relevant authority shall ensure, for each rural development programme, that the relevant management and control system has been set up in such a way that ensures a clear allocation and separation of functions between the Managing Authority and other bodies. The relevant authority shall be responsible for ensuring that the systems function effectively throughout the programme period.
4. The relevant authority shall clearly define the tasks of the Managing Authority, the Paying Agency and the local action groups under LEADER as regards to the application of eligibility and selection criteria and the project selection procedure.
Managing Authority
Article 66 

1. The Managing Authority shall be responsible for managing and implementing the programme in an efficient, effective and correct way and in particular for:
(a) ensuring that there is an appropriate secure electronic system to record, maintain, manage and report statistical information on the programme and its implementation required for the purposes of monitoring and evaluation and, in particular, information required to monitor progress towards the defined objectives and priorities;
((b)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) ensuring that beneficiaries and other bodies involved in the implementation of operations:
((i)) are informed of their obligations resulting from the aid granted, and maintain either a separate accounting system or an adequate accounting code for all transactions relating to the operation;
((ii)) are aware of the requirements concerning the provision of data to the Managing Authority and the recording of outputs and results;
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(e) ensuring that the evaluation plan referred to in Article 56 of Regulation (EU) No 1303/2013 is in place, that the ex post programme evaluation referred to in Article 57 of Regulation (EU) No 1303/2013 is conducted within the time limits laid down in that Regulation, ensuring that such evaluations conform to the monitoring and evaluation system and submitting them to the Monitoring Committee ... ;
(f) providing the Monitoring Committee with the information and documents needed to monitor implementation of the programme in the light of its specific objectives and priorities;
(g) drawing up the annual progress report, including aggregate monitoring tables and submitting it to the Monitoring Committee for approval;
(h) ensuring that the paying agency receives all necessary information, in particular on the procedures operated and any controls carried out in relation to operations selected for funding, before payments are authorised;
(i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. The ... Managing Authority may designate one or more intermediate bodies including local authorities, regional development bodies or non-governmental organisations, to carry out the management and implementation of rural development operations.When a part of its tasks is delegated to another body, the Managing Authority shall retain full responsibility for the efficiency and correctness of management and implementation of those tasks. The Managing Authority shall ensure that appropriate provisions are in place to allow the other body to obtain all necessary data and information for execution of these tasks.
3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. Subject to the role of the paying agencies and other bodies as set out in Regulation (EU) No 1306/2013, a co-ordinating body may be designated with the purpose of ensuring consistency in the management of the programmes between constituent nations.
5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TITLE VII
MONITORING AND EVALUATION
CHAPTER I
General provisions
Section 1
Establishment and objectives of a monitoring and evaluation system
Monitoring and evaluation system
Article 67 
The appropriate authority may make regulations setting out a monitoring and evaluation system.
Objectives
Article 68 
The monitoring and evaluation system shall aim to:

((a)) demonstrate the progress and achievements of rural development policy and assess the impact, effectiveness, efficiency and relevance of rural development policy interventions;
((b)) contribute to better targeted support for rural development;
((c)) support a common learning process related to monitoring and evaluation.
Section 2
Technical provisions
Common indicators
Article 69 

1. A list of common indicators relating to the initial situation as well as to the financial execution, outputs, results and impact of the programme and applicable to each programme shall be specified in the monitoring and evaluation system provided for in Article 67 to allow for aggregation of data ....
2. The common indicators shall be based on available data and linked to the structure and objectives of the rural development policy framework and shall allow assessment of the progress, efficiency and effectiveness of policy implementation against objectives and targets at ... national and programme level. The common impact indicators shall be based on available data.
3. The evaluator shall quantify the impact of the programme measured by the impact indicators. ...
Electronic Information System
Article 70 
Key information on the implementation of the programme, on each operation selected for funding, as well as on completed operations, needed for monitoring and evaluation, including key information on each beneficiary and project, shall be recorded and maintained electronically.
Provision of information
Article 71 
Beneficiaries of support under rural development measures and local action groups shall undertake to provide to the Managing Authority and/or to appointed evaluators or other bodies delegated to perform functions on its behalf, all the information necessary to permit monitoring and evaluation of the programme, in particular in relation to meeting specified objectives and priorities.
CHAPTER II
Monitoring
Monitoring procedures
Article 72 

1. The Managing Authority and the Monitoring Committee referred to in Article 47 of Regulation (EU) No 1303/2013 shall monitor the quality of the implementation of the programme.
2. The Managing Authority and the Monitoring Committee shall carry out monitoring of each rural development programme by means of financial, output and target indicators.
Monitoring Committee
Article 73 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Responsibilities of the Monitoring Committee
Article 74 
The Monitoring Committee shall satisfy itself as to the performance of the rural development programme and the effectiveness of its implementation. To that end, in addition to the functions referred to in Article 49 of Regulation (EU) No 1303/2013 the Monitoring Committee shall:

((a)) be consulted and shall issue an opinion, before publication of the relevant call for proposals, on the selection criteria for financed operations, which shall be revised according to programming needs;
((b)) examine the activities and outputs related to the progress in the implementation of the evaluation plan of the programme;
((c)) examine, in particular, actions in the programme relating to the fulfilment of ex ante conditionalities, which fall within the responsibilities of the Managing Authority, and be informed of actions relating to the fulfilment of other ex ante conditionalities;
((d)) participate in the national rural network to exchange information on programme implementation; and
((e)) consider and approve the annual implementation reports ....
Annual implementation report
Article 75 

1. By 30 June 2016 and by 30 June of each subsequent year until and including  20262024, the Managing Authority shall submit to the Monitoring Committee the annual implementation report on implementation of the rural development programme in the previous calendar year. The report submitted in 2016 shall cover the calendar years 2014 and 2015.
2. In addition to complying with the requirements of Article 50 of Regulation (EU) No 1303/2013 annual implementation reports shall include information inter alia on financial commitments and expenditure by measure, and a summary of the activities undertaken in relation to the evaluation plan.
3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. In addition to complying with the requirements of Article 50 of Regulation (EU) No 1303/2013, the annual implementation report submitted in 2019 shall also cover... an assessment of progress made in ensuring an integrated approach to use of ... financial instruments to support the territorial development of rural areas, including through local development strategies.
5. The appropriate authority may make regulations, laying down rules concerning the presentation of the annual implementation reports. ...
CHAPTER III
Evaluation
General provisions
Article 76 

1. The appropriate authority may make regulations establishing the minimum requirements for the evaluation plan referred to in Article 56 of Regulation (EU) No. 1303/2013.
2. The relevant authority shall ensure that the evaluations are in accordance with the common evaluation approach agreed in accordance with Article 67, shall organise the production and gathering of the requisite data, and shall supply the various pieces of information provided by the monitoring system to the evaluators.
3. The evaluation reports shall be made available by the relevant authority on its website.
Ex ante evaluation
Article 77 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ex post evaluation
Article 78 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Syntheses of evaluations
Article 79 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TITLE VIII
COMPETITION PROVISIONS
Rules applying to undertakings
Article 80 
Where support under this Regulation is granted to forms of co-operation between undertakings, it may be granted only to such forms of co-operation which comply with the competition rules as they apply by virtue of Articles 206 to 210 of the Regulation of the European Parliament and the Council (EU) No 1308/2013.
State aid
Article 81 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additional financing
Article 82 
Payments in relation to operations for the production of, and trade in, agricultural products, and intended to provide additional financing for rural development for which support is granted at any time during the programming period, shall be included by relevant authorities in the rural development programme as provided for in paragraph 1(j) of Article 8 and, where they comply with the criteria under this Regulation, shall be approved by the relevant authority.
TITLE IX
... COMMON PROVISIONS AND TRANSITIONAL AND FINAL PROVISIONS
CHAPTER I
Commission powersPowers

                Regulations
              
Article 83 

(1. Regulations made by the Secretary of State or the Welsh Ministers under this Regulation are to be made by statutory instrument.
(2. For regulations made under this Regulation by the Scottish Ministers, see section 27 of the Interpretation and Legislative Reform (Scotland) Act 2010.
(3. Any power of the Department of Agriculture, Environment and Rural Affairs to make regulations under this Regulation is exercisable by statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979.
(4. Regulations under this Regulation may:
(a) contain consequential, incidental, supplementary, transitional or saving provision (including provision amending, repealing or revoking enactments);
(b) make different provision for different purposes.
(5. Before making any regulations under this Regulation, the person or Department making the regulations must consult:
(a) such bodies or persons as appear to the person or Department to be representative of the interests likely to be substantially affected by the regulations, and
(b) such other bodies or persons as the person or Department may consider appropriate.

                Regulations: parliamentary procedure
              
Article 84 

(1. A statutory instrument containing regulations made by the Secretary of State under this Regulation is subject to annulment in pursuance of a resolution of either House of Parliament.
(2. A statutory instrument containing regulations made by the Welsh Ministers under this Regulation is subject to annulment in pursuance of a resolution of the National Assembly for Wales.
(3. Regulations made by the Scottish Ministers under this Regulation are subject to the negative procedure (see section 28 of the Interpretation and Legislative Reform (Scotland) Act 2010).
(4. Regulations made by the Department of Agriculture, Environment and Rural Affairs under this Regulation are subject to negative resolution within the meaning of section 41(6) of the Interpretation Act (Northern Ireland) 1954 as if they were a statutory instrument within the meaning of that Act.
CHAPTER II
Common provisions
Exchange of information and documents
Article 85 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Processing and protection of personal data
Article 86 

1. The relevant authority... shall collect personal data for the purpose of carrying out their respective management control, monitoring and evaluation obligations under this Regulation, and in particular those laid down in Titles VI and VII, and shall not process this data in a way which is incompatible with this purpose.
2. Where personal data are processed for monitoring and evaluation purposes under Title VII using the secure electronic system referred to in Article 85, they shall be made anonymous, and processed in aggregated form only.
3. Personal data shall be processed in accordance with the rules of Directive 95/46/EC and Regulation (EC) No 45/2001Regulation (EU) No 2016/679 and the Data Protection Act 2018. In particular, such data shall not be stored in a form which permits identification of data subjects for longer than is necessary for the purposes for which they were collected or for which they are further processed, taking into account the minimum retention periods laid down in the law as it applies in the constituent nation.
4. The relevant authority shall inform the data subjects that their personal data may be processed by public bodies in accordance with paragraph 1 and that in this respect they enjoy the rights set out in the data protection rules of, respectively, Directive 95/46/EC and Regulation (EC) No 45/2001Regulation (EU) No 2016/679 and the Data Protection Act 2018.
5. Articles 111 to 114 in Regulation(EU) 1306/2013 shall apply to this Article.
General CAP provisions
Article 87 
Regulation (EU) No 1306/2013 and the provisions adopted pursuant to it shall apply in relation to the measures set out in this Regulation.
CHAPTER III
Transitional and final provisions
Regulation (EC) No 1698/2005
Article 88 
Regulation (EC) No 1698/2005 is repealed.
Regulation (EC) No 1698/2005 shall continue to apply to operations implemented pursuant to programmes approved by the Commission under that Regulation before 1 January 2014.
Transitional provisions
Article 89 
In order to facilitate the transition from the system established by Regulation (EC) No 1698/2005 to the system established by this Regulation, the Commission shall be empowered to adopt delegated acts in accordance with Article 83, laying down the conditions under which support approved by the Commission under Regulation (EC) No 1698/2005 may be integrated into support provided for under this Regulation, including for technical assistance and for the ex-post evaluations. Those delegated acts may also provide conditions for the transition from rural development support for Croatia under Regulation (EC) No 1085/2006 to support provided for under this Regulation.
Entry into force and application
Article 90 
This Regulation shall enter into force on the day of its publication in the Official Journal of the European Union.
It shall apply from 1 January 2014.
...
ANNEX I

                     Breakdown of Support for Rural Development (2014-2020) in EUR

Art. 58


2014 2015 2016 2017 2018 2019 2020 TOTAL 2014 -2020
475 531 544 848 443 195 850 859 320 754 569 938 754 399 511 755 442 113 756 171 870 5 195 417 491

ANNEX Ia
BREAKDOWN OF THE ADDITIONAL RESOURCES BY MEMBER STATE AS REFERRED TO IN ARTICLE 58A

(current prices, in EUR)

 2021 2022
Belgium 14 246 948 33 907 737
Bulgaria 59 744 633 142 192 228
Czechia 54 879 960 130 614 305
Denmark 16 078 147 38 265 991
Germany 209 940 765 499 659 020
Estonia 18 636 494 44 354 855
Ireland 56 130 739 133 591 159
Greece 108 072 886 257 213 470
Spain 212 332 550 505 351 469
France 256 456 603 610 366 714
Croatia 59 666 188 142 005 526
Italy 269 404 179 641 181 947
Cyprus 3 390 542 8 069 491
Latvia 24 878 226 59 210 178
Lithuania 41 393 810 98 517 267
Luxembourg 2 606 635 6 203 790
Hungary 88 267 157 210 075 834
Malta 2 588 898 6 161 577
Netherlands 15 513 719 36 922 650
Austria 101 896 221 242 513 006
Poland 279 494 858 665 197 761
Portugal 104 599 747 248 947 399
Romania 204 761 482 487 332 328
Slovenia 21 684 662 51 609 495
Slovakia 48 286 370 114 921 561
Finland 61 931 116 147 396 056
Sweden 44 865 170 106 779 104
Total EU-27 2 381 748 705 5 668 561 918
Technical Assistance (0,25 %) 5 969 295 14 206 922
Total 2 387 718 000 5 682 768 840
ANNEX II

AMOUNTS AND SUPPORT RATESArticle Subject Maximum amount in EURGBP or rate 
15(8) Advisory services, farm management and farm relief services 1 5001,250 Per advice
200 000 166,667 Per three years for the training of advisors
16(2) Information and promotion activities 70 % Of the eligible costs of the action
16(4) Quality schemes or agricultural products and foodstuffs 3 0002,500 Per holding per year
17(3) Investment in physical assets  Agricultural sector
50 % Of the amount of eligible investment in less developed regions and in all regions whose GDP per capita for the 2007 - 2013 period was less than 75 % of the average of the EU-25 for the reference period but whose GDP per capita is above 75 % of the GDP average of the EU-27.
. . . . . .
... . . .
... . . .
40 % Of the amount of eligible investment in other regionsThe above rates may be increased by an additional maximum 35 percentage points in case of financing operations from funds referred to in Article 58a(1) contributing to a resilient, sustainable and digital economic recovery, provided that such support does not exceed 75 %, and by an additional 20 percentage points, provided that maximum combined support does not exceed 90 %, for:
— Young farmers as defined in this Regulation, or who have already set up during the five years preceding the application for support;
— Collective investments and integrated projects, including those linked to a merger of producer organisations;
— Areas facing natural constraints and other specific constraints as referred to in Article 32;
— Operations supported in the framework of the EIP;
— Investments linked to operations under Articles 28 and 29
 Processing and marketing of products listed in Annex I to the TFEU
50 % Of the amount of eligible investment in less developed regions and in all regions whose GDP per capita for the 2007 - 2013 period was less than 75 % of the average of the EU-25 for the reference period but whose GDP per capita is above 75 % of the GDP average of the EU-27
... . . .
... . . .
40 % Of the amount of eligible investment in other regionsThe above rates may be increased by an additional maximum 35 percentage points in case of financing operations from funds referred to in Article 58a(1) contributing to a resilient, sustainable and digital economic recovery, provided that such support does not exceed 75 %, and by an additional 20 percentage points, provided that maximum combined support does not exceed 90 %, for operations supported in the framework of the EIP or those linked to a merger of producer organisations
17(4) Investment in physical assets 100 % Non-productive investments and agricultural and forestry infrastructure
18(5) Restoring agricultural production potential damaged by natural disasters and introduction of appropriate prevention actions 80 % Of the amount of eligible investment costs for prevention operations carried out by individual farmers.
100 % Of the amount of eligible investment costs for prevention operations carried out collectively by more than one beneficiary.
100 % Of the amount of eligible investment costs for operations to restore agricultural land and production potential damaged by natural disasters and catastrophic events.
19(6) Farm and business development 70 00058,333 Per young farmer under Article 19(1)(a)(i)That amount may be increased by an additional maximum of EUR 30 000 in the case of financing operations from funds referred to in Article 58a(1).
70 00058,333 Per beneficiary under Article 19(1)(a)(ii)
15 00012,500 Per small farm under Article 19(1)(a)(iii)
23(3) Establishment of agroforestry systems 80 % Of the amount of eligible investment for the establishment of agroforestry systems
26(4) Investments in forestry technologies and in processing, in mobilising and in the marketing of forestry products 65 % Of the amount of eligible investment in less developed regions
. . . . . .
. . . . . .
40 % Of the amount of eligible investment in other regions
27(4) Setting up of producer groups and organisations 10 % As a percentage of marketed production during the first five years following recognition The support shall be degressive.
100 00083,333 Maximum amount per year in all cases.
28(8) Agri-environment-climate 600500 Per ha per year for annual crops
900750 Per ha per year for specialised perennial crops
450375 Per ha per year for other land uses
200167 Per livestock unit ("LU") per year for local breeds in danger of being lost to farmers
29(5) Organic farming 600500 Per ha per year for annual crops
900750 Per ha per year for specialised perennial crops
450375 Per ha per year for other land uses
30(7) Natura 2000 and Water Framework Directive payments 500417 Per ha per year maximum in the initial period not exceeding five years
200167 Per ha per year maximum
5042 Per ha per year minimum for Water Framework Directive payments
31(3) Payments to areas facing natural or other specific constraints 2521 Minimum per ha per year on average of the area of the beneficiary receiving support
250208 Maximum per ha per year
450375 Maximum per ha per year in mountain areas as defined in Article 32(2)
33(3) Animal welfare 500417 Per LU
34(3) Forest-environmental and climate services and forest conservation 200167 Per ha per year
37(5)
                            
                              Crop, animal and plant insurance
                            
                              70 %
                            
                              Of the insurance premium due
                           

                              38(5)
                            
                              Mutual funds for adverse climatic events, animal and plant diseases, pest infestations and environmental incidents
                            
                              70 %
                            
                              Of the eligible costs
                           

                              39(5)
                            
                              Income stabilisation tool
                            
                              70 %
                            
                              Of the eligible costs



NB: The aid intensities are without prejudice to Union State aid rules.
ANNEX III

BIOPHYSICAL CRITERIA FOR THE DELIMITATION OF AREAS FACING NATURAL CONSTRAINTSCRITERION DEFINITION THRESHOLD
CLIMATE
Low Temperature Length of growing period (number of days) defined by number of days with daily average temperature > 5 °C (LGPt5) or ≤ 180 days
Thermal-time sum (degree-days) for Growing Period defined by accumulated daily average temperature > 5 °C ≤ 1 500 degree-days
Dryness Ratio of the annual precipitation (P) to the annual potential evapotranspiration (PET) P/PET ≤ 0.5
CLIMATE AND SOIL
Excess Soil Moisture Number of days at or above field capacity ≥ 230 days
SOIL
Limited Soil Drainage Areas which are water logged for significant duration of the year Wet within 80 cm from the surface for over 6 months, or wet within 40 cm for over 11 months orPoorly or very poorly drained soil orGleyic colour pattern within 40 cm from the surface
Unfavourable Texture and Stoniness Relative abundance of clay, silt, sand, organic matter (weight %) and coarse material (volumetric %) fractions ≥ 15 % of topsoil volume is coarse material, including rock outcrop, boulder or
texture class in half or more (cumulatively) of the 100 cm soil surface is sand, loamy sand defined as:Silt % + (2 × clay %) ≤ 30 % or
Topsoil texture class is heavy clay
                                 
                                    (≥ 60 % clay) or
Organic soil (organic matter ≥ 30 %) of at least 40 cm or
Topsoil contains 30 % or more clay, and there are vertic properties within 100 cm of the soil surface
Shallow Rooting Depth Depth (cm) from soil surface to coherent hard rock or hard pan ≤ 30 cm
Poor Chemical Properties Presence of salts, exchangeable sodium, excessive acidity Salinity: ≥ 4 deci-Siemens per meter (dS/m) in topsoil or
Sodicity: ≥ 6 Exchangeable Sodium Percentage (ESP) in half or more (cumulatively) of the 100 cm soil surface layer or
Soil Acidity: pH ≤ 5 (in water) in topsoil
TERRAIN
Steep Slope Change of elevation with respect to planimetric distance (%) ≥ 15 %

ANNEX IV
INDICATIVE LIST OF MEASURES AND OPERATIONS OF PARTICULAR RELEVANCE TO THEMATIC SUB-PROGRAMMES REFERRED TO IN ARTICLE 7

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

ANNEX V
EX ANTE CONDITIONALITIES FOR RURAL DEVELOPMENT



1.
PRIORITIES-LINKED CONDITIONALITIES... priority for RD / CPR Thematic Objective (TO) Ex ante conditionality Criteria for fulfilment
RD priority 3: promoting food chain organisation, including processing and marketing of agricultural products, animal welfare and risk management in agricultureTO 5: promoting climate change adaptation, risk prevention and management 
3.1. Risk prevention and risk management: the existence of national or regional risk assessments for disaster management. taking into account climate change adaptation
 
— A national or regional risk assessment with the following elements shall be in place:
— A description of the process, methodology, methods and non-sensitive data used for risk assessment as well as of the risk-based criteria for the prioritisation of investment;
— A description of single-risk and multi-risk scenarios;
— Taking into account, where appropriate, national climate change adaptation strategies.
RD priority 4: restoring, preserving and enhancing ecosystems related to agriculture and forestry 
4.1 Good Agricultural and Environmental Conditions (GAEC): standards for good agricultural and environmental condition of land referred to in Chapter I of Title VI of Regulation (EU) 1306/2013 are established at national level
 
— GAEC standards are defined in national law and specified in the programmes;
TO 5: promoting climate change adaptation, risk prevention and management 
4.2 Minimum requirements for fertilisers and plant protection products: minimum requirements for fertilisers and plant protection products referred to in Article 28 of Chapter I of Title III of this Regulation are defined at national level
 
— minimum requirements for fertilisers and plant protection products referred to in Chapter I of Title III of this Regulation are specified in the programmes;
TO 6: Preserving and protecting the environment and promoting resource efficiency 
4.3 other relevant national standards: relevant mandatory national standards are defined for the purpose of Article 28 of Chapter I of Title III of this Regulation
 
— relevant mandatory national standards are specified in the programmes;
RD priority 5: promoting resource efficiency and supporting the shift towards a low carbon and climate resilient economy in the agriculture and food sectors and the forestry sectorTO 4: supporting the shift towards a low-carbon economy in all sectorsTO 6: Preserving and protecting the environment and promoting resource efficiency 
5.1 Energy efficiency: Actions have been carried out to promote cost-effective improvements of energy end use efficiency and cost-effective investment in Energy efficiency when constructing or renovating buildings.
 
— The actions are:
— Measures to ensure minimum requirements are in place related to the energy performance of buildings consistent with Articles 3, 4 and 5 of Directive 2010/31/EU of the European Parliament and the Council.
— Measures necessary to establish a system of certification of the energy performance of buildings consistent with Article 11 of Directive 2010/31/EU
— Measures to ensure strategic planning on energy efficiency, consistent with Article 3 of Directive 2012/27 EU of the European Parliament and the Council.
— Measures consistent with Article 13 of Directive 2006/32/EC of the European Parliament and the Council on energy end-use efficiency and energy services to ensure the provision to final customers of individual meters in so far as it is technically possible, financially reasonable and proportionate in relation to the potential energy savings.

5.2 Water sector: The existence of a) a water pricing policy which provides adequate incentives for users to use water resources efficiently and b) an adequate contribution of the different water uses to the recovery of the costs of water services at a rate determined in the approved river basin management plan for investment supported by the programmes.
 
— In sectors funded by support for rural development, a relevant authority has ensured a contribution of the different water uses to the recovery of the costs of water services by sector consistent with Article 9, paragraph 1 first indent of the Water Framework Directive having regard where appropriate, to the social, environmental and economic effects of the recovery as well as the geographic and climatic conditions of the region or regions affected.

5.3 Renewable energy: Actions have been carried out to promote the production and distribution of renewable energy sources.
 
— Transparent support schemes, priority in grid access or guaranteed access and priority in dispatching, as well as standard rules relating to the bearing and sharing of costs of technical adaptations which have been made public are in place consistent with Article 14(1) and Article 16(2) and (3) of Directive 2009/28/EC
— A relevant authority has adopted a national renewable energy action plan consistent with Article 4 of Directive 2009/28/EC
RD priority 6: promoting social inclusion poverty reduction and economic development in rural areasTO 2: Enhancing access to, and use and quality of, information and communication technologies (Broadband target) 
6. Next Generation Network (NGN) Infrastructure: The existence of national or regional NGA Plans which take account of regional actions in order to reach the ... high-speed Internet access targets, focusing on areas where the market fails to provide an open infrastructure at an affordable cost and of a quality in line with the ... competition and State aid rules and to provide accessible services to vulnerable groups.
 
— A national or regional NGN Plan is in place that contains:
— a plan of infrastructure investments based on an economic analysis taking account of existing private and public infrastructures and planned investments;
— sustainable investment models that enhance competition and provide access to open, affordable, quality and future proof infrastructure and services;
— measures to stimulate private investment.





ANNEX VI
INDICATIVE LIST OF MEASURES WITH RELEVANCE TO ONE OR MORE ... PRIORITIES FOR RURAL DEVELOPMENT


 Measures of particular relevance to several ... priorities
Article 15Advisory services, farm management and farm relief servicesArticle 17Investments in physical assetsArticle 19Farm and business developmentArticle 35Co-operationArticle 42 - 44LEADER
 Measures of particular relevance to fostering knowledge transfer and innovation in agriculture, forestry, and rural areas
Article 14Knowledge transfer and information actionsArticle 26Investments in forestry technologies and in processing in mobilising and in the marketing of forestry products
 Measures of particular relevance for enhancing the competitiveness of all types of agriculture and enhancing farm viability
Article 16Quality schemes for agricultural products and foodstuffs
 Measures of particular relevance to promoting food chain organisation and risk management in agriculture
Article 18Restoring agricultural production potential damaged by natural disasters and catastrophic events and introduction of appropriate prevention actionsArticle 24Prevention and restoration of damage to forests from forest fires and natural disasters and catastrophic eventsArticle 27Setting up of producer groupsArticle 33Animal welfareArticle 36Risk managementArticle 37Crop, animal, and plant insuranceArticle 38Mutual funds for animal and plant diseases and environmental incidentsArticle 39Income stabilisation tool
 Measure of particular relevance to restoring, preserving and enhancing ecosystems related to agriculture and forestry
and
Promoting resource efficiency and supporting the shift towards a low carbon and climate resilient economy in agriculture, food and forestry sectors
Article 21(1)(a)Afforestation and creation of woodlandArticle 21(1)(b)Establishment of agroforestry systemsArticle 21(1)(d)Investments improving the resilience and environmental value as well as the mitigation of potential forest ecosystemsArticle 28Agri-environment-climateArticle 29Organic farmingArticle 30Natura 2000 and Water framework directive paymentsArticle 31 -32Payments to areas facing natural or other specific constraintsArticle 34Forest-environmental and climate services and forest conservation
 Measures of particular relevance to promoting social inclusion, poverty reduction and economic development in rural areas
Article 20Basic services and village renewal in rural areasArticle 42 – 44LEADER
